Republic of the Philippines :,; _,~,;., , .

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OFFICE OF THE PRESIDENT
COMMISSION on HIGHER EDUCATION

CHED MEMORANDUM ORDER

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No. 71
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Series of 2017

SUBJECT: LIFTING OF MORATORIUM ON THE OPERATION OF NEW

BACHELOR OF SCIENCE IN MARINE TRANSPORTATION AND
BACHELOR OF SCIENCE IN MARINE ENGINEERING PROGRAMS
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In accordance with the pertinent provisions of Republic Act (RA) No. 7722,
othen/vise known as the “Higher Education Act of 1994” and by virtue of Commission

Commission effective Academic Year 2018-2019.

I. Background and Rationale

Per RA 7722, the Commission on Higher Education (CHED) is mandated to set
minimum standards for higher education programs without abridging the curricular
freedom of universities and colleges except for minimum unit requirements as may
be determined by the Commission and specific professional subjects as may be
stipulated by various licensing entities. CHED Administrative Order (CAO) No. 1,
series of 2014 provides the revised Guidelines in the formulation of CHED Policies,
Standards and Guidelines (PSGs) of baccalaureate level academic programs to hew
more closely to the Constitutional provision of academic freedom in all institutions of
higher learning and Section 13 of RA 7722. CHED Memorandum Order No. 46
Series of 2012 advocates the shift to learning competency-based policies, standards
and guidelines for higher education programs as well as outcomes-based quality
assurance, among others. Furthermore, the International Convention on the
Standards of Training, Certification and Watchkeeping for Seafarers (STCW), 1978,
as amended sets the global learning competency-based standards for maritime
education and training.

It can be noted that the Commission en banc Resolution No. 386-216 dated
6 June 2016 approved the conduct of a public hearing on the proposed policy on
conditions for the lifting of the moratorium on the operation of new BSMT and
BSMarE programs and Resolution No. 783-2016 dated 26 September 2016
approved the lifting of the moratorium under strict conditions in 2018 or two years
after the public hearing on the draft policy in response to the concerns of existing
-

higher education institutions.

in 1988, the Department of Education, Culture and Sports (DECS) Bureau of -

Higher Education, the precursor of the Commission on Higher Education, listed 57

Higher Education Institutions (HEls) operating maritime degree programs. From 1991
to 1994 the year CHED was created by law—the number of such institutions
-

ballooned to about 120 in light of the DECS “free enterprise” policy which underlay
the liberal grant of permits for programs of higher education institutions on the

Higher Education Development Center Building, C.P. Garcia Ave., UP Campus, Diliman, Quezon City, Philippines
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Web Site: www.ched.gov.phTel. Nos. 441-1 177, 385-4391, 441-1 169, 441-1 149, 441-1 170, 441-1216, 392-5296, 441-1220
441-1228, 988-0002, 441-0750, 441-1254, 441-1235, 441-1255, 41 1-8910, 441-1 171, 352-1871
premise that market demand will determine the sustainability or demise of programs
and HEls.

However, the political, economic and judicial context of Philippine higher

education severely undermined the presumed capacity of the market to enable
compliant programs to thrive and substandard higher education programs to close.
As a consequence, maritime higher education institutions and programs of highly
uneven quality proliferated.

Market failure, as reflected in the number of poor quality maritime higher

education programs confronted the newly created CHED. Thus, on 10 January 1995
the new Commission on Higher Education issued CHED Memorandum Order No. 2,
series of 1995 that set the implementing guidelines for the opening of new programs
exempting maritime education together with nursing, medicine and related programs,
thus effectively putting these programs under moratorium.

The Philippine ratification of the International Convention on the Standards of

Training, Certification and Watchkeeping for Seafarers of 1978 in 1984; the
amendments to STCW that entail compliance with stricter standards; and the results
of external audits of the country’s certification system to ascertain its continuing
eligibility to produce officers and officers—in-charge for the international merchant
marine fleet underscored the need to address the proliferation of MHEIS that have
consistently been non-compliant with STCW. Protracted reforms to reclassify MHEIS
along their compliance with STCW as amended in the face of concomitant responses
from noncompliant MHEls to these reforms (e.g. legal cases against CHED)
compelled the Commission to sustain the 1995 moratorium of maritime education
programs as further qualified by CHED’s issuances of new rules governing the
moratorium of the Bachelor of Science in Marine Transportation (BSMT) and
Bachelor of Science in Marine Engineering (BSMarE) programs in 2004 and 2009.

After an unusually long moratorium, CHED is finally impelled to lift the

moratorium starting AY 2018-2019 in light of the following considerations:

o The maritime industry as potential niche of the Philippine

economy. Since the education and training of officers and Officers-in-Charge
as well as of seafarers are critical components of the industry, it is in the
strategic national interest of the Philippines for CHED to ensure the country’s
ability to produce competent deck and engine Officers—in-Charge of the
international merchant marine fleet;

o The Philippines as provider of a significant number of officers to the

merchant marine fleet. In the European Union (EU) alone the European
Maritime Safety Agency’s (EMSA) Seafarer’s Statistics in the EU based on
2014 data reveal that 28% of officers in the European fleet are Filipinos;

o The 2015 Baltic International Maritime Council’s (BIMCO) Manpower Report

forecast of growth in the world merchant fleet over the next ten years that
discloses an overall shortage of 92,000 officers in 2020 and 147,500 officers
in 2025—BlMCO is the largest of international shipping associations with
members in 120 countries, of which ship owner members control 65% of the
world’s tonnage;

o The nearcompletion of the 2017 reclassification of MHEIS based on

compliance with both STCW as amended and CHED Memorandum Orders

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 pertaining to maritime education and, given the confinement of eligible
MHE|s only to the STCW and CHED compliant, the need to expand the
number of the country’s supply of competent Officers—in-Charge and the
providers of their education; and
o CHED’s due consideration of the position of MHE|s against the lifting of the
moratorium as reflected in the postponement of its lifting to 2018 so as to
give existing eligible MHE|s time to ensure their sustained eligibility as well
as enable phased out MHEls with a strong resolve to get back into the
league of eligible MHEls to do so along with eligible new applicants that will
be granted permits to operate based on the criteria enumerated in this CMO,
which are more stringent than those applied to previously established
MHEls.

ll. Qualifications and Procedural Requirements

1. The processing of applications for government authority shall commence this
year 2017 and the operation of BSMT or BSMarE program shall commence in
AY 2018-2019.

2. CMO No. 40, series of 2008 (Manual of Regulations for Private Higher
Education (MORPHE) shall govern the approval process of applications and
all applications shall be filed with the CHED—Office of Programs and
Standards Development (OPSD) through the concerned CHED Regional
Office (CHEDRO).

3. The Commission shall accept new applications only from duly established
higher education institutions that are able to demonstrate a strong partnership
or joint venture with the shipping/manning sector and other maritime
industries/associations, through a structured cadetship program, i.e., a
program that takes BSMT/BSMarE students from existing Maritime Higher
Education Institutions (MHEls) and prepares them and facilitates their
deployment for their 12-month shipboard training. The partner of the new
applicant higher education institution must have:
3.1 Operated a shipboard training program for at least 5 years (domestic and
international); and
3.2. Demonstrated a track record over the last 5 years of at least 80%
deployment of the BSMT and or BSMarE students admitted in their
shipboard training program.
The new applicant higher education institution must demonstrate the capacity
to deliver all the components of the curriculum in campus except the
shipboard training.
4. MHEls with Phased-out status of its BSMT and/or BSMarE program/s shall
continue to operate until its current students have graduated from the
program. They may re-apply based on CMO No. 67, series 2017 entitled
“Revised Policies, Standards and Guidelines for the Bachelor of Science in
Marine Transportation (BSMT) and Bachelor of Science in Marine
Engineering (BSMarE) programs.
5. MHEls with Closed Status of its BSMT and/or BSMarE program/s may re-
apply and shall follow CMO No. 67, Series 2017 and this CMO on lifting the
moratorium.

§ 0. Page3of4
Ill. Transitory Provision
The deadline of June 30, 2017 (one year prior) for filing of applications of
new HE|s or programs for operation of BSMT and BSMarE in AY 2018-2019 as
prescribed in CMO No. 40, series of 2008, Manual of Regulations for Private
Higher Education (MORPHE) is hereby moved to the effectivity date of issuance
of this CMO until December 31, 2017. Thereafter, the scheduled deadline
stipulated in MORPHE shall be followed in filing applications to operate the
BSMT and BSMarE in succeeding academic years.

IV. Repealing Clause

The CHED Memorandum Order No. 15, Series of 2004 entitled “Moratorium
on the Opening of New Maritime Programs” and CHED Memorandum Order No.
47, Series of 2009 entitled “Amendment to CHED Memorandum Order No. 15,
Series of 2004 Moratorium on the Opening of New Maritime Programs” are
hereby revoked.
This CMO shall take effect fifteen (15) days after the publication in the
Official Gazette or in a newspaper of general circulation and shall remain in force
and effect until otherwise revoked or superseded.

Issued this 6th day of September 2017, Quezon City.

‘Ag
For the ommission:

PATRICIA B. LICUANAN, Ph.D.

Chairperson

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