NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
s. No___266
fill
of the &
*22 JUL11 P4 30
RLCEIViD BY;
Introduced by SENATOR RAMON BONG REVILLA, 3R.
AN ACT
DIRECTING THE CONVERSION OF SANGLEY POINT IN CAVITE CITY INTO 
AN INTERNATIONAL LOGISTICS HUB
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 infrastructure for more efficient and 
cheaper transportation of inputs and outputs of industrial goods.
One of the major projects being envisioned 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 II, 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.
His Excellency, then President Rodrigo Roa Duterte has already directed the 
utilization of Sangley Point. This proposed measure seeks to complement the policy 
directive of the President. 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.
RAMO^ONG RE VILLA, 3R.


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
s. No. 266
oC the
•22 JUL11 P4 30
RlICElVtD BY.
Introduced by SENATOR RAMON BONG REVILLA, JR.
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 Philippines in 
Congress assembled:
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Section 1. Short Title. 
Conversion Act."
This Act shall be known as the "Sangley Point
Sec. 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.
Sec. 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 International Logistics 
Hub, hereinafter known as the Hub, located at the northern portion of the Cavite City


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peninsula and is surrounded by Manila Bay, approximately eight miles away from 
Manila.
Sec. 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 retirement/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


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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 specialised skills 
which no Filipino possesses, as certified by the Department of 
Labor and Employment.


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


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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 ail 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:


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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 activities, 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;


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(j) 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
(l) 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.
Sec. 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:
Co-Chairman:
Members:
Chairman of the Philippine Reclamation 
Authority
Governor of the Province of Cavite or his
authorized representative
Secretary, Department of Transportation or his
authorized representative
Secretary, Department of National Defense or
his authorized representative
Director Generai, National Economic and
Development Authority or his authorized
representative
Secretary, Department of Trade and Industry 
or his authorized representative


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Secretary, Department of Environment and
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Natural Resources or his authorized
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representative
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Secretary, Department of Public Works and
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Highways or his authorized representative
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Director General, Philippine Economic Zone
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Authority or his Authorized representative
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Members of the Board shall receive a reasonable per diem which
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shall not be less than the amount equivalent to the representation
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and transportation allowances of the members of the Board
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and/or as may be determined by the Department of Budget and
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Management: Provided, however, That the total per diem
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collected each month shall not exceed the equivalent per diem for
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four (4) meetings. Unless and until the President of the Philippines
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has fixed a higher per diem for the members of the Board, such
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per diem shall not be more than Ten thousand pesos (P10,000.00)
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for every Board meeting.
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Sec. 8. Administrative and Chief Executive Officer. — The President of the
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Philippines shall appoint a full-time professional and competent administrator and chief
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executive officer for the SPA whose compensation shall be determined by its Board
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and shall be in accordance with the revised compensation and position classification
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system. The administrator as chief executive officer of SPA shall be responsible to the
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Board and the President of the Philippines for the efficient management and operation
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of the Hub.
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Sec. 9. Capitalization. — The SPA shall have an authorized capital stock of two
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billion pesos (P2,000,000,000) divided into 200,000,000 with a minimum issue value
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of Ten pesos (PIO.OO) per share. The national government shall initially subscribe and
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fully pay three hundred million (300,000,000) shares of such capital stock. The initial
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amount necessary to subscribe and pay for the shares of stock shall be included In the
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General Appropriations Act of the year following its enactment into law and


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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.
Sec. 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.
Sec. 11. Relationship with the Locai 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.
Sec. 12. Legai Counsei. — 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.
Sec. 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.


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Sec. 14. Mechanisms 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.
Sec. 15. Separabiiity Ciause. — 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.
Sec. 16. Repealing Clause. — All laws, executive orders or issuances, or any 
parts thereof which are inconsistent herewith are hereby repealed or amended 
accordingly.
Sec. 17. Effectivity Clause. — This Act shall take effect fifteen (15) days upon 
its publication In at least two (2) newspapers of general circulation.
Approved,
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