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MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement, entered into by and between:

The PHILIPPINE PORTS AUTHORITY, a government agency created by virtue of presidential Degree No. 857, as amended, with principal office at PPA Building, Bonifacio Drive, South Harbor, Port Area, Manila herein represented by its General Manager, ATTY. OSCAR M. SEVILLA herein after referred to as PPA;

-and-

The PHILIPPINES COAST GUARD, a government agency created by virtue of Republic Act No. 5172, with principal office at #139 25th Street, Port Area, Manila herein represented by the Commandant VADM WILFREDO D. TAMAYO hereinafter referred to as PCG.

WITNESSETH:

WHEREAS, the PPA is mandated by law to establish, maintain and operate port infrastructure design to enhance the safety of ships entering and leaving port environs and adjacent sealance;

WHEREAS, the PPA establish the Vessel Traffic Management Systems (VTMS) at the Port District of Manila and Port of Batangas with the following objectives:

1. To enhance vessel traffic service of waterways;
2. To ensure safety of navigation of vessels;
3. To safeguard the security of vessels, facilities, individuals, and their properties;
4. To protect the marine environment of surrounding waters; and
5. To provide users of the VTMS timely information and necessary assistance within the VTMS covered area.

WHEREAS, the establishment of the VTMS is in the accordance with the International Conviction on the 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 of all applicable laws upon the high seas and waters within the jurisdiction of the Philippines;

WHEREAS, in order to minimize the risk of collision, the PCG has establish the Traffic Separation Schemes (TSS) for vessels navigating through Corregidor
Island passages and Verde Island passageways located in the provinces of Cavite and Batangas, respectively;

WHEREAS, said TSS lanes established by the PCG have been made an integral part of the VTMS covered areas;

NOW, THEREFORE, in consideration of the foregoing premises, and in order to further promote safety of life at sea and protection of the marine environment, the PPA and the PCG hereby agree that they will jointly implement the VTMS, subject to the following guidelines:

A. The PPA shall:

1. Direct and supervise the operation of the VTMS Control Centers
2. Designate VTMS Manager/Supervisor who shall be responsible for the over all operation of the VTMS Control Centers
3. Main workstations covering part of the Manila Bay, Batangas Bay and Balayan Bay including the harbor limits located within the bay
4. Operate and maintain the VTMS Control Centers and radar stations
5. Assign and least nine (9) personnel to man the Control Centers and sustain a 24/7 day operation
6. Provide security in each VTMS Control Center and its respective Radar Stations
7. Provide training for personnel assigned as VTMS operators and those in charge of the servicing and maintenance of VTMS relay stations
8. Authorize PCG use the VTMS facility and equipment in broadcasting Notice to Mariners (NOTAM), weather bulletins and other maritime safety information, as well as, for other purposes related in the enforcement of the PCG mandate
9. Be responsible for the establishment and enforcement of house rules covering the command and control arrangement, access control, security arrangements and other related matters
10. Designate the Port District Manager- Manila/Northern Luzon and Port Manager – Batangas as coordinators for VTMS Control Center Manila and Batangas respectively

B. The PCG shall:

1. Assign at least nine (9) PCG personnel in its Control Center to augment their PPA counterparts in manning VTMS Control Centers on a 24/7- day operation.
2. In coordination to the training and skills that assigned PCG personnel shall acquire, the PCG shall ensure that their assignment with the VTMS Control Centers will not be less than two (2) years unless, others, terminated for cause.
3. Designated the Station Commanders of CGS Manila and CGS Batangas as PCG coordinators for VTMS Control Center Manila and Batangas, respectively:
4. Upon request by the PPA, assist in security augmentation in the VTMS operation.
5. Man workstation per Control Center covering
a. Corregidor’s surrounding water and approaches and part of the Manila Bay; and
b. Verde Island’s north and south passageways
6. Make available one (1) appropriate watercraft within VTMS Manila and Batangas controlled areas for rapid deployment during calls for search and rescue, oil pollution, piracy, sea jacking, an other emergencies and VTMS related missions

The parties further agree that:

1. There shall be a regular coordinative meeting at least once a month among the PPA, PCG, and the VTMS Staff to be called by PPA
2. They shall, within the framework of this Agreement explore the areas of cooperation including but not limited to logistical support, personnel, security and other related matters
3. Any modifications or changes in this Memorandum of Agreement shall be made only with the mutual and written consent of both parties and that changes shall be deemed part of the Agreement

This Memorandum of Agreement shall take effect signing of the same by herein contracting parties

IN WITHNESS WHEREOF, the parties have hereunto set their hands on this 26th day of February 2009, at Manila, Philippines.

Philippine Ports Authority                                                      Philippine Coast Guard
By:                                                                                                 By:

ATTY. OSCAR M. SEVILLA                                                        VADM WILFREDO D. TAMAYO
General Manager                                                                          Commandant

SIGNED IN THE PRESENCE OF:

MR. LEOPOLDO F. BUNGUBUNG                                               RADM RAMON C. LIWAG
AGM for Operations                                                                      Deputy for Operations