MEMORANDOM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement entered into by and between:

The PHIVIDIC INDUSTRIAL AUTHORITY, a government-owned and controlled corporation created by virtue of PD 538, with office address at the Mindanao Container Terminal Complex, Tagoloan, Misamis Oriental, represented by its Administrator, NINFA U. ALONG-ALBANIA, duly authorized by Board Resolution No.VII-877 s. 2009, attaché as Annex “A”, and here in referred to as PIA, and

The PHILIPPINE COAST GUARD, a government agency created by virtue of Republic Act No. 5173, with principal office at 139 25th Street, Port Area, Manila, herein represented by her Commandant, ADM WILFREDO D. TAMAYO PCG, herein referred to as PCG.

WITNESSETH

WHEREAS, PIA has Vessel Tracking Management System (VTMS) installed at the Mindanao Container Terminal, Tagoloan, Misamis Oriental, that is designed to monitor the movement of watercraft within Macajalar Bay;

WHEREAS, the VTMS Control Center was establish with the following objectives:
1. Enhance vessel traffic in the waterways;
2. Ensure safety of navigation of vessels;
3. Safeguard the security of vessels, facilities, individuals, and properties;
4. Provide VTMS users timely information and necessary assistance within the coverage area.

WHEREAS, the establishment of the VTMS is in compliance with the International Convention on the Promotion of Safety of Life at Sea (SOLAS), 1974, as amended, which the Philippines has adopted and ratified;

WHEREAS, the PCG is mandated to enforce and assist, within its capabilities, in the enforcement in all applicable laws upon the high seas and within the territorial water of the Philippines;

WHEREAS, the PCG is the government entity entrusted with among others securing the coastal and inland waters of the country against lawless act and elements;

WHEREAS, PIA desires that PCG operate the VTMS and PCG agrees to operate and utilized the VTMS for vessel safety, law enforcement, and security purposes;

NOW THEREFORE, based on the foregoing basis, PIA and PCG agree to the following provisions:

1. OBLIGATIONS OF PIA

a. Permit PCG to occupy portion/s of the Control Tower and operate the VTMS installed therein. However, the terms of occupancy and usage of the utilities for the areas actually used by PCG shall be subjected to the pertinent applicable provisions of the Concession Contract between PIA and MICTSI for the areas covered by said Contract;
b. Provide the needed utilities (power, water, and communication) for the system to operate the corresponding costs for the area/s actually used by the PCG and a proportionate share in the cost for the use of the elevator shall be for the account of PIA;
c. Maintain the operational capability of the system;
d. Make available berthing space, water, and provision for electric shore power for the PCG patrol vessel deployed at the Mindanao Container Terminal subject to the conditions as stated in the Concession Contract for the Management and Operation of the Mindanao Container Terminal between PIA and International Container Terminal Services Incorporated (ICTSI), now MICTSI;
d.1. The corresponding costs for the provision of water and on-shore power for the patrol vessel shall be for the account of PCG payable to MICTSI.

2. OBLIGATIONS OF PCG

a. Provide the necessary PCG qualified personnel, at the cost of PCG, to man the VTMS Control Center for a 24-hours a day, 7-days a week operation;
b. Assign and deploy to the PCG Northern Mindanao District at least one 56 meter SAR vessel, or one 35 meter SAR vessel, and one appropriate watercraft for seaborne marshals, one of which shall be based at the Mindanao Container Terminal (MCT);
c. Repair and/or replace components damaged or destroyed due to PCG personnel action or negligence as well as maintain said equipments in good condition;
d. Augment the security forces of the Mindanao Container Terminal upon the request of PIA;
e. Subject to availability of funds, upgrade the buoyage system within the VTMS controlled areas in accordance with international standards;
f. Share pertinent information gather from the system with VTMS clients and law enforcements agencies;
g. Hold a coordinative meeting at least once every three months to improve the operations and the delivery or service of the system primarily to address issues as brought forth by MICTSI;
h. Find ways and means to maximize the use of the system;
i. Ingress and agrees of PCG personnel assigned to the VTMS and to the PCG vessel shall be in accordance with the access control measures as indicated in the Port Facility Security Plan, bearing in mind the role of these personnel in close coordination with MICTSI;
j. Conduct of PCG personnel as an augmentation security force in MCT, at the request of PIA, will be defined in the Port Facility Security Plan;
k. This agreement shall exist and be binding upon the successors of the signatories herein.
l. Any modification or changes to this Memorandum of Agreement shall be made upon the mutual agreement and written consent of both parties and that such document shall be deemed part of this Agreement.
m. This Memorandum of Agreement shall take effect upon the signing of this document.

3. TERM. The term of this MOA shall for a period of ten (10) years effective from signing of this MOA, renewable for another period of ten (10) years upon mutual agreement of parties.

4. DEFAULT. Any violation or default in the performance of the covenants and obligations set forth in this MOA by PCG shall constitute a ground for the revocation of this MOA without the need of judicial or extra-judicial demand or action, if no correction satisfactory to PIA are being instituted by PCG within thirty (30) days from written notice of such violation or default. Provided that PIA shall be entitled to all damages that it may have suffered by reason of such violation or default.

5. TERMINATION. PIA may cause the termination of this MOA for failure of PCG to comply any of its obligations under this MOA.

Done this 2nd day of July, 2009 at MCT Compound Tagoloan, Misamis Oriental

PHIVIDIC INDUSTRIAL AUTHORITY                                                                PHILIPPINE COAST GUARD
By:                                                                                                                           By: 

NINFA U. ALONG-ALBANIA                                                                                  ADM WILFREDO D. TAMAYO
Administrator                                                                                                            Commandant

Signed in the presence of: 

ENGR. MANUEL N. KIONISALA                                                                             USEC THOMPSON C. LANTION