Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

9
HOUSE BILL NO. 3183

Introduced by HONORABLE STRIKE B. REVILLA

EXPLANATORY NOTE

In line with the government's concerted effort to promote economic reforms, it has
become an undeclared policy of the government to exhaust all possible means to support the
country's continued search for genuine sustainability. To achieve this end, there is a need,
among others, to provide infrastructures for more efficient and cheaper transportation of inputs
and outputs of industrial goods.

‘One of the major projects that is necessary is the provision of an international container
port complex which will include an airport and seaport. This facility can best be achieved
through converting the US Naval Sangley Point located in Cavite City into such a complex.

U.S. Naval Station Sangley Point was a major ship-repair and supply facility of the
United States Navy, which occupied the northern portion of the Cavite City peninsula and is
surrounded by Manila Bay, approximately eight miles southwest of Manila, the Philippines. Up
until World War Il, the station was headquarters of the U.S. Asiatic Fleet. The naval station was
turned over to the Philippine government in 1971. At present, Sangley Point is being used by
the Philippine Navy for ship repair and dry docking purposes.

Sangley Point has the following comparative advantages and potentials for growth: A
bay location that provides potential for sea transport, existing air and port facilities which could
be upgraded and improved, it has a military airport which has a concrete runway of 229 x 22
meters, and road links, which provide access to Manila and CALABARZON growth corridors.

It now becomes imperative that such notable advantages of Sangley Point be not taken
for granted. The economic opportunity that Sangley Point offers to the country must not be put
to waste, especially now that the country is in continuous search of possible springboards for
economic take-off.

This bill seeks to convert the almost idle but very promising facility of Sangley Point into
an international logistics hub to facilitate further economic growth and social development of the
Province of Cavite and the Philippines, in general.

In this light, the passage of this bill is earnestly sought.

REP. STRIKE B. REVILLA
2” District, Cavite


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House Bit_no, 3133

Introduced by HONORABLE STRIKE B. REVILLA

AN ACT
DIRECTING THE CONVERSION OF SANGLEY POINT IN CAVITE CITY
INTO AN INTERNATIONAL LOGISTICS HUB

Be it enacted by the Senate and House of Representatives of the Congress
assembled:

SECTION 1. Short Title. — This Act shall be known as the “Sangley Point
Conversion Act of 2016.”

SECTION 2. Declaration of Policy — It is hereby declared the policy of the
Government to accelerate the sound and balanced conversion into alternative
productive uses of the Sangley Point in Cavite City.

It is likewise the declared policy of the Government to enhance the benefits to be
derived from said conversion in order to promote the economic and social development
of Cavite City in particular and the country in general

SECTION 3. The Sangley Point International Logistics Hub - In accordance
with the foregoing declared policy, there is hereby established an international logistics
hub, comprising a Container Port and Airport Complex and an Economic Processing
Zone with Cyber or Technoparks, to be known as the Sangley Point Intemational
Logistics Hub, hereinafter known as the Hub, located at the northern portion of the
Cavite City peninsula and is surrounded by Manila Bay, approximately eight miles away

from Manila.


SECTION 4. Governing Principles. — The Sangley Point International
Logistics Hub shall be managed and operated under the following principles:

(a) Under the framework and limitations of the Constitution and the
applicable provisions of the financial, investment, and
tourism/recreational center and free port with Local Government
Code, the Hub shall be developed into and operated as a self-
‘sustaining, commercial, industrial and logistic hub and suitable for
tetirement/residential purposes, in order to create employment
opportunities in and around the Hub, and to effectively encourage
and attract legitimate and productive foreign and local investments
therein;

(b) The Hub shall be operated and managed as a separate
customs territory ensuring free flow or movement of goods and
capital within, into and exported out of the Hub, as well as provide
incentives such as tax and duty-free importations of raw materials,
capital and equipment. However, exportation or removal of goods
from the territory of the Hub to the other parts of the Philippine
territory shall be subject to customs duties and taxes under the
Tariff and Customs Code of the Philippines, as amended, the
National Internal Revenue Code of 1997, as amended, and other
relevant tax laws of the Philippines;

(c) The provision of existing laws, rules and regulations to the
contrary notwithstanding, no national and local taxes shall be
imposed within the Hub. In lieu of said taxes, a five percent (5%)
tax on gross income earned shall be paid by all business
enterprises within the Hub and shall be remitted as follows: two
percent (2%) to the National Government, and two percent (2%) to
the Sangley Point Authority referred in Section 5 of this Act, and
one percent (1%) to the Cavite City government;


(d) Existing banking laws and Bangko Sentral ng Pilipinas (BSP)
rules and regulations shall apply on foreign exchange and other
current account transactions (trade and non-trade), local and
foreign borrowings, foreign investments, establishment and
operation of local and foreign banks, foreign currency deposit units,
offshore banking units and other financial institutions under the
supervision of the BSP;

(e) Any foreign investor who establishes a business enterprise
within the Hub and who maintains capital investment of not less
than One hundred fifty thousand United States dollars
(US$150,000) shall be granted, along with his or her spouse,
dependents, and unmarried children below twenty-one (21) years
of age, a permanent resident status within the Hub. The
responsibility and authority to grant such permanent resident status
is hereby delegated to the Sangley Point Authority.

Such foreign investor and his or her spouse, dependents, and
unmarried children below the age of twenty-one (21) years, shall
have the freedom of ingress and egress to and from the Hub
without need of any special authorization from the Bureau of
Immigration.

Likewise, the Sangley Point Authority, referred herein Section 5,
shall issue working visas renewable every two (2) years to foreign
executives and foreign technicians with highly specialized skills
which no Filipino possesses, as certified by the Department of
Labor and Employment.

The names of foreigners granted permanent resident status and
working visas by the Sangley Point Authority shall be reported to
the Bureau of Immigration within thirty (30) days from such grant.


The foregoing is without prejudice to a foreigner acquiring
permanent resident status in the Philippines in accordance with
applicable immigration, retirement, and other related laws; and

(f) Except as otherwise provided herein, the local government units
totally or partially embraced within the Hub shall retain and
maintain their basic autonomy and identity. Cavite City shall
operate and function in accordance with Republic Act No. 7160,
otherwise known as the Local Government Act of 1991, insofar as
the areas within its jurisdiction covered in this Act are concerned.

Section 5. Creation of the Sangley Point Authority. — A body corporate to be known
as the Sangley Point Authority, hereinafter referred to as the SPA, is hereby created to
manage and operate, in accordance with the provisions of this Act, the Sangley Point
International Logistics Hub. This corporate franchise shall expire in fifty (50) years
counted from the first day of the fifth (5th) calendar year after the effectivity of this Act,
unless otherwise extended by Congress.

Section. 6. Powers and Functions of the Sangley Point Authority. — The Sangley
Point Authority shall have the following powers and functions:

(a) To adopt, change, use a corporate seal; to contract, lease, buy,
sell, acquire, own and dispose, movable and immovable as well as
personal and real property of whatever nature (including but not
limited to shares of stock or participation in private corporations or
in limited partnerships, or in joint ventures with limited liability),
bonds, precious metals in bullions, ingots, and easily convertible
foreign exchange; to sue and be sued in order to carry out its
duties, responsibilities, privileges, powers and functions as granted
and provided for in this Act; and to exercise the power of eminent
domain for public use and public purpose;

(b) Within the limitation provided by law, to raise or borrow
adequate and necessary funds from local or foreign sources to


finance its projects and programs under this Act, and for that
purpose to issue bonds, promissory notes, and other form of
securities, and to secure the same by a guarantee, pledge,
mortgage, deed of trust, or an assignment of all or part of its
property or assets;

(c) To approve, accept, accredit and allow any local or foreign
business, enterprise or investment in the Hub subject only to such
rules and regulations as SPA may promulgate from time to time in
conformity with the provisions of this Act and the limitations
provided in the Constitution;

(d) To authorize or undertake, on its own or through others, and
regulate the establishment, operation and maintenance of public
utilities, services, and infrastructure in the Hub such as shipping,
barging, stevedoring, cargo handling, hauling, warehousing,
storage of cargo, port services or concessions, piers, wharves,
bulkheads, bulk terminals, mooring areas, storage areas, roads,
bridges, terminals, conveyors, water supply and storage, sewerage,
drainage, airport and ports operations in coordination with the Civil
Aeronautics Board and Philippine Ports Authority, and such other
services or concessions or infrastructure necessary or incidental to
the accomplishment of the objectives of this Act: Provided,
however, That the private investors in the Hub shall be given priority
in the awarding of contracts, franchises, licenses, or permits for the
establishment, operation and maintenance of utilities, services and
infrastructure in the Hub;

(e) To construct, acquire, own, lease, operate and maintain on its
own or through others by virtue of contracts, franchises, licenses, or
permits under the build-operate-transfer scheme or under a joint
venture with the private sector any or all of the public utilities and
infrastructure required or needed in the Hub, in coordination with


appropriate national and local government authorities and in
conformity with applicable laws thereon;

(f) To operate on its own, either directly or through a subsidiary
entity, or license to others, tourism-related acti

s, including
games, amusements, recreational and sports facilities such as
horse racing, dog racing, gambling casinos, golf courses, and
others, under priorities and standards set by the SPA;

(g)To form, establish, organize and maintain subsidiary
corporations, as its business and operations may require, whether
under the laws of the Philippines or not;

(h) To adopt, implement and enforce reasonable measures and

standards to control pollution within the Hub;

(i) To provide security for the Hub in coordination with the national
and local governments. For this purpose, SPA may establish and
maintain its own security force and firefighting capability or hire
others to provide the same;

@) To plan, program and undertake the adjustment, relocation, or
resettlement of population within the Sangley Point military
reservations and their extensions as may be deemed necessary
and beneficial by the SPA, in coordination with the appropriate
agencies and local government units.

(k) To issue rules and regulations consistent with the provisions of
this Act as may be necessary to implement and accomplish the
purposes, objectives and policies herein provided; and

(I) To exercise such powers as may be essential, necessary or
incidental to the powers granted to it hereunder as well as those


that shall enable it to carry out, implement, and accomplish the
purposes, objectives and policies of this Act.

Section 7. Board of Directors of SPA. — The powers of the Sangley Point Authority
shall be vested in and exercised by a Board of Directors, hereinafter referred to as the
Board, which shall be composed of nine (9) members, to wit:

Chairman: Chairman of the Philippine Reclamation Authority

Co-Chairman: Mayor of Cavite City or his authorized
representative

Members: Secretary : Department of Transportation and

Communication or his authorized representative
Secretary : Department of National Defense or
his authorized representative

Director General : National Economic and
Development Authority or his authorized
representative

Secretary : Department of Trade and Industry or
his authorized representative

Secretary : Department of Environment and
Natural Resources or his authorized
representative

Secretary : Department of Public Works and
Highways or his authorized representative
Director General : Philippine Economic Zone
Authority or his Authorized representative

Members of the Board shall receive a reasonable per diem which
shall not be less than the amount equivalent to the representation
and transportation allowances of the members of the Board and/or
as may be determined by the Department of Budget and
Management: Provided, however, That the total per diem collected
each month shall not exceed the equivalent per diem for four (4)
meetings. Unless and until the President of the Philippines has fixed


a higher per diem for the members of the Board, such per diem
shall not be more than Ten thousand pesos (P10,000.00) for every
Board meeting

Section 8. Administrative and Chief Executive Officer. — The President of the
Philippines shall appoint a full-time professional and competent administrator and chief
executive officer for the SPA whose compensation shall be determined by its Board and
shall be in accordance with the revised compensation and position classification
system. The administrator as chief executive officer of SPA shall be responsible to the
Board and the President of the Philippines for the efficient management and operation
of the Hub

Section 9. Capitalization. — The SPA shall have an authorized capital stock of two
billion pesos (P2,000,000,000)divided into 200,000,000 with a minimum issue value of
Ten pesos (P10.00) per share. The national government shall initially subscribe and
fully pay three hundred million (300,000,000) shares of such capital stock. The initial
amount necessary to subscribe and pay for the shares of stock shall be included in the
General Appropriations Act of the year following its enactment into law and
thereafter. The Board of Directors of SPA may, from time to time and with the written
concurrence of the Secretary of Finance, increase the issue value of the shares
representing the capital stock of the SPA. The Board of Directors of SPA, with the
written concurrence of the Secretary of Finance, may sell shares representing not more
than forty per centum (40%) of the capital stock of the SPA to the general public with
such annual dividend policy as the Board and the Secretary of Finance may
determine. The national government shall in no case own less than sixty per centum
(60%) of the total issued and outstanding capital stock of the SPA.

Section 10. Supervision. — The Hub shall be under the direct control and supervision
of the Office of the President of the Philippines for purposes of policy direction and
coordination.

Section 11. Relationship with the Local Government Units — In case of any conflict
between the Hub and the local government unit totally or partially embraced within the


Hub, on matters affecting the Hub, other than in defense and security matters, the
decision of SPA shall prevail.

Section 12. Legal Counsel. — The SPA and the corporations in which SPA owns a
majority of the issued capital stock shall have its own internal legal counsel under the
supervision of the government corporate counsel. When the exigencies of its
businesses and operations demand it, the SPA may engage the services of an outside
counsel either on a case to case basis or on a fixed retainer.

Section 13. Auditor. — The Commission on Audit shall appoint a representative who
shall be a full-time auditor of the SPA and its subsidiaries, and assign such number of
personnel as may be necessary to assist said representative in the performance of his
or her duties. The salaries and emoluments of the assigned auditor and personnel of
the Commission on Audit shall be in accordance with the revised compensation and
position classification system. The Commission on Audit shall render an annual report
to the President of the Philippines and to Congress on the business activities,
transactions and operations of the SPA.

Section 14. Mechanism for those affected by the Conversion. — There shall be
designated a relocation for affected military camps and other facilities, either within the
Sangley Point Area or outside, consistent to existing laws, and regulations. Provided
further that an appropriation to support the relocation cost of the combined facilities of
the Philippine Navy and the Philippine Air Force which shall come from the proceeds of
the lease, joint venture and transactions entered into by the Authority,

Section 15. Separability Clause. — If any provision of this Act shall be held
unconstitutional or invalid, the other provisions not otherwise affected shall remain in full
force and effect.

Section 16. Repealing Clause. — All laws, executive orders or issuances, or any parts
thereof which are inconsistent herewith are hereby repealed or amended accordingly

Section 17. Effectivity Clause. — This Act shalll take effect fifteen (15) days upon its
publication in at least two (2) newspapers of general circulation.


Approved,