Albano vs.

Reyes (175 SCRA 264)

Facts:

The Philippine Ports Authority (PPA) board directed the PPA

management to prepare for the public bidding of the development,
management and operation of the Manila International Container
Terminal (MICT) at the Port of Manila. A Bidding Committee was formed
by the DOTC for the public bidding. After evaluation of several bids, the
Bidding Committee recommended the award of the contract to
respondent International Container Terminal Services, Inc. (ICTSI).
Accordingly, Rainerio Reyes, then DOTC secretary, declared the ICTSI
consortium as the winning bidder.

On May 18, 1988, the President of the Philippines approved the same
with directives that PPA shall still have the responsibility for planning,
detailed engineering, construction, expansion, rehabilitation and capital
dredging of the port, as well as the determination of how the revenues of
the port system shall be allocated for future works; and the contractor
shall not collect taxes and duties except that in the case of wharfage or
tonnage dues.

Petitioner Albano, as taxpayer and Congressman, assailed the legality of

the award and claimed that since the MICT is a public utility, it needs a
legislative franchise before it can legally operate as a public utility.

ISSUE: Whether a franchise is needed for the operation of the MICT?

Held: No. While the PPA has been tasked under E.O. No. 30 with the
management and operation of the MICT and to undertake the provision of
cargo handling and port related services thereat, the law provides that
such shall be in accordance with P.D. 857 and other applicable laws and
regulations. P.D. 857 expressly empowers the PPA to provide services
within Port Districts whether on its own, by contract, or otherwise.

Even if the MICT is considered a public utility, its operation would not
necessarily need a franchise from the legislature because the law has
granted certain administrative agencies the power to grant licenses for or
to authorize the operation of public utilities. Reading E.O. 30 and P.D.
857 together, it is clear that the lawmaker has empowered the PPA to
undertake by itself the operation and management of the MICP or to
authorize its operation and management by another by contract or other
means, at its option.

Doctrine: The law granted certain administrative agencies the power to

grant licenses for the operation of public utilities. Theory that MICT is a
wharf or a dock, as contemplated under the Public Service Act, would
not necessarily call for a franchise from the Legislative Branch.
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