Mps Concession Agreement

The MPS Concession Agreement: A Comprehensive Guide

The MPS concession agreement is an important document that outlines the terms and conditions for the operation of the Manila Ports Terminal System (MPTS) in the Philippines. The agreement was signed between the Philippine Ports Authority (PPA) and International Container Terminal Services, Inc. (ICTSI) on June 12, 2019, and is set to expire in 2038.

This concession agreement is a significant milestone for the Philippines` maritime industry and serves as a model for other ports globally. The MPTS is one of the busiest container terminals in the country, with an annual throughput of over 2 million TEUs. This agreement is a testament to the government`s efforts to modernize and upgrade the country`s ports, which are critical to the country`s economic growth.

Here`s a comprehensive guide to the MPS concession agreement:

1. The Scope of the Agreement

The MPS concession agreement covers the design, construction, financing, operation, and maintenance of the MPTS. It also involves the development of additional container terminals in Manila South Harbor and Subic Bay Freeport.

2. The Duration of the Agreement

The agreement has a duration of 25 years, with an option to renew for another 25 years. The concessionaire, ICTSI, is responsible for investing in the development and improvement of the port infrastructure and equipment throughout the duration of the agreement.

3. The Concession Fees

ICTSI pays concession fees to the PPA for the operation of the MPTS. The fees are based on a percentage of the gross revenue generated by the port. The concessionaire is also required to pay other fees, such as rental fees for the use of government land and other taxes and duties.

4. The Performance Standards

The concessionaire is required to meet certain performance standards, such as improving the efficiency and productivity of the port, increasing the volume of cargo throughput, and reducing the turnaround time for ships. The concessionaire is also required to maintain proper safety and security measures at the port.

5. The Dispute Resolution Mechanism

The agreement provides for a dispute resolution mechanism in case of any disagreements between the PPA and ICTSI. The parties can either resort to mediation or arbitration to resolve any disputes.

Conclusion

The MPS concession agreement is a crucial document that outlines the terms and conditions for the operation of the Manila Ports Terminal System. It is a significant development for the country`s maritime industry and represents the government`s efforts to modernize and upgrade the country`s ports. The agreement provides for a fair and equitable partnership between the PPA and ICTSI, ensuring the efficient and safe operation of the port for the next 25 years.

Scroll to Top