Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HouseB£[,No.8LP28
Introduced by Representative
LEODY `ODIE" F. TARRIHLA
EXPLANATORY NOTE
Being  an  archipelagic  state  located  at  the  crossroads  of  Asia  and  the  Pacific,  the
Philippines plays a crucial  role in the global  maritime trade network, with  its sea lines
of communication  serving as  vital  routes for international  and domestic  shipping.  In
addition, the country's waters are abundant in  valuable  resources. including crude oil
and  natural  gas  sources,  as  well  as  diverse  marine  life.  The  Philippines'  maritime
responsibility covers 2,795,962 square kilometers, comprising the offshore  Exclusive
Economic  Zone  (EEZ) of 652.800 square  kilometers and  the  coastal  waters zone  of
153,650 sqilare  kilometers. This  vast area  is nine  times  larger than  the. country's  lftnd
area. spread across over 7500 islands.
Over   the    past   few    decades,   the    world's   economy    has    become    increasingly
interconnected and globalized, leading to increased maritime traffic  in many  regions
worldwide,   including   the   Philippines.  This   surge   in   activity   has   had   significant
economic   and   environmental   implications   for  the   country.   It   also   created   m{>re
opportunities for illegal activities such as piracy, smuggling, and human trafficking.
In addition, the rising demand for natural  resources, such as fishing stocks, crude oil.
and natural gas resources, and the strategic control of critical shipping lanes intensiried
maritime disputes between the Philippines and neighboring countries, including China.
This also led to an  increase in illegal, unreported, and unregulated fishing and further
exploitation  of  marine  resoilrces.  endangering  the  sustainability  of  the  Philippines'
fisheries and marine ecosystems.
All  these conditions created new  challenges for the  Philippine Coast Guard (PCG)  in
fulfilling its maritime responsibilities, including ensuring maritime security, enforcing
laws   and   regulations,   protecting   the   marine   environment,   and   promoting   safe
navigation and commerce. These challenges require the PCG to operate with the highest
level of ef.ficiency and effectiveness to safeguard the country's maritime  interests and
territorial  integrity.
The current capabilities of the PCG , however, are insufficient to execute its mandates.
This bill, therefore, proposes a modemization program that aims to enhance the PCG's
assets, bolster its capabilities, and guarantee the efficient and effective execution Of its


legal tasks. The proposed legislation is consistent with the Phili ppine Development Plan
2023-2028, which emphasizes the need to acquire state-of-the-art air and floating assets
and   implement   interoperable   communication   systems   to   safeguard   the   country's
interests and ensure a safe and secure maritime domain.
In  view  Of.  the  given  circumstances,  the  immediate  enactment  of  this  legislation  is
earnestly sought.


Republic of the Philippines
HOUSE 0F REPRESENTATIVHS
Quez;on City
NINETEENTH CONGRESS
First Regular Session
HouseBfliNo.8028
INTRODUCED BY REPRESENTATIVE
LEODY `ODIE" F. TARRIHLA
AN ACT
PROVIDING     FOR     THE     MODERNIZATION     0F     THE
PHILIPPINE COAST GUARD AND FOR OTHER PURPOSES
Be it enacted by the Serrate and House Of Representatives Of the Philippines in Congress
assembled:
Sectio" I.         Sfeorf ri.r/c-This Act shall be known as the "PCG Modernization Act."
Sccffo# 2.         Dcc/clrc}fl.o# a/ Po/I.cy-It is hereby declared the policy of the state to
modemize the Philippine Coast Guard (PCG) to a level where it can effectively and
fully perform its constitutional mandates to ensure the maritime safety, maritime envi-
ronmental protection, and maritime security of the Republic of the Philippines. Toward
this end, the principal thrusts of the modemization program under this Act shall be:
(a) The development of a more mobile and visible coast guard force that
will establish its vision of a "world-class guardian of the sea" by 2035;
(b) The  acquisition  and  upgrading  of appropriate  technology  and  equip-
ment; and
(c) The strategic improvement and construction of bases, installations, and
other PCG facilities.
Secfrom 3.         Ody.ccfi.veg-The roG modemization program shall be implemented in
accordance with the following objectives:
(a)  To develop its capability to uphold the sovereignty, territorial integrity,
and sovereign rights of the Republic and to maintain security and safety


of the maritime domain from all forms of maritime incidents and trans-
national crimes;
(b) To develop its capability to support other government agencies in the
preservation of the national  patrimony, including the  country's living
and non-living marine, submarine, mineral , coastal forest, and other nat-
ural  resources  located  within  its  territory  and  its  exclusive  economic
zone (EEZ);
(c) To  enhance  its capability to fulfill  its mandate to protect the  Filipino
people not only from armed threats at sea but from the ill effects of life-
threatening and destructive consequences of disasters and calamities, in-
eluding  typhoons,  earthquake,  tsunami,  volcanic  eruptions,  oil  spills,
major accidents in the far-flung or inaccessible areas at sea, and from all
forms of ecological damage;
(d) To improve capability and capacity in the enforcement of domestic and
foreign policies as well as international accords against smuggling, pi-
racy , armed-robbery , poaching, illegal fishing, smuggling, drug traffick-
ing, hijacking of seacraft and vessels trade in human beings and other
serious international crimes, drug-trafficking, and the transport of toxic
and  other ecologically-harmful  substances  taking  place  in  or through
Philippine territory ;
(e) To enhance its capability towards inter-agency coordination in terms of
maritime law enforcement and maritime counter-terrorism ;
(f)  To enhance its capability to fulfill the country's international commit-
ments; and
(g) To develop its capability to support national development.
Section 4.        Development  of PCG  capabilities-The pc:a  moderniz;ation proglan
shall be geared towards the development of the following capabilities:
(a) Development of floating assets-The enhanced fleet operations shall en-
able the PCG to:
I.    Patrol the Philippine maritime jurisdiction to include the Exclu-
sive Economic Zone (EEZ) for the enforcement of all applicable
laws;


11.   Protect and preserve all coastal, near coastal and riparian living
and nonliving marine resources;
Ill. Provide transportation of personnel and material in times of nat-
ural disaster and rescue operations; and
lv . Conduct search and rescue operations during maritime incidents
such as fire  at sea, collisions, groundings, oil  spills, and flash
floods, among others.
(b) Development of air assets-The enhanced air operations shall enable the
PCG to:
I.    Patrol , detect, and challenge, if necessary, any vessel and aircraft
illegally intruding into or passing through the Philippines' EEZ
management, up to areas near or around the Philippine territorial
limits;
11.   Conduct maritime air operations in support of PCG missions;
Ill. Provide airlift, search and rescue, rapid deployment and related
support in disaster and other civilian relief operations; and
IV. Support the Philippine naval armed forces.
(c)  Development of Maritime Domain Awareness (MDA) capabilities-The
PCG shall acquire and upgrade contemporary, modern, and state-of-the-
art equipment and systems to enhance its MDA capabilities in the per-
formance of its mandate.
(d) Development of fleet support and infrastructure -The PCG shall acquire ,
construct, develop, and upgrade its infrastructure and facilities for the
following:
I.    Response bases for all operational units of the PCG;
11.   Coast Guard stations and substations; and
Ill. Training, ship/aircraft repair and maintenance, and logistics for
PCG operating units;


(e)  Development of national  headquarters capabilities-The modemization
of the  PCG  requires  the  renovation  and  development of the  national
headquarters capabilities for command , control, communications, and
information systems network.
Section 5.         Components of the PCG Moderhiz;ation progran'I=The PCG M!oderhi-
zation program shall be divided into four tiers in line with the capabilities and include
the following:
(a)  First Tier-Development of PCG Response Bases and Enhancement of
Maritime Domain Awareness Capabilities
11.
Response Bases-The PCG modemization program shall entail
the construction and development of permanent response bases
to house all PCG operational  units, such as Marine Laborato-
ries , Search and Rescue Vessels (SARVs), Offshore Patrol Ves-
sels  (OPV),  Maritime  Pollution  Vessels  (MARPOL  vessels),
and  others  to  allow  the  PCG  to  rapidly  respond  to  maritime
emergency calls in the most efficient and effective manner.
Maritime  Domain Awareness  (MDA)  Capabilities-The  PCG
modemization program shall entail the acquisition and upgrade
of equipment and systems such as Radar Stations, Lighthouses,
Unmanned Aerial Vehicles, Unmanned Underwater Vehicles,
and SARVs to enhance MDA capabilities.
(b) Second Tier-Development of Infrastructure and Interdiction Capabili-
ties
I.    Interdiction Capabilities-The PCG modernization program en-
tails the acquisition of state-of-the-art vessels and equipment to
enhance interdiction and law enforcement capabilities.
11.  Coast Guard Stations and Substations-The PCG modemization
program entails the improvement and development of infrastruc-
tures and facilities of Coast Guard stations and substations. Pro-


vided that each shoreline municipality shall have its own substa-
tions, be fully equipped, and have constant or uniform stations.
Provided, further, that substations will serve as its smaller unit.
Ill. MARPOL (Maritime Pollution) Vessels-The reG modemiza~
tion program shall acquire MARPOL vessels to strengthen the
marine environment protection mandate of the PCG.
(c)  Third Tier-Acquisition and Development of Patrol Vessels and Air Ca-
pabilities
I.    Offshore Patrol Vessels-The PCG modernization program shall
develop and acquire new OPVs to strengthen coastal defense and
the management of the country's EEZ. The acquisition of OPVs
shall enable the PCG to:
1.   Patrol, detect, intercept, engage, and challenge, if neces-
sary,   any   vessel   illegally   intruding   into   or   passing
through the Philippines' EEZ, up to areas near or around
the Philippine territorial limits;
2.   Provide transportation of personnel and material in times
of natural disaster and rescue operations;
3.   Conduct search  and  rescue  operations  during  maritime
incidents; and
4.   Support the Philippine naval armed forces.
11.  Aircrafts-The PCG modernization shall acquire and develop air-
crafts to enable the PCG to:
1.   Strengthen maritime and airspace security in different ar-
eas and stations;
2.   Patrol , detect, and challenge, if necessary, any vessel and
aircraft  illegally  intruding  into  or  passing  through  the
Philippines' EEZ management, up to areas near or around
the Philippine territorial limits;
3.   Support its operations as a law  enforcement arm and  a
nautical services; and
4.   Support the Philippine naval armed forces.


(d) Fourth Tier-Infrastructure and Facilities Development
I.    Development and Improvement of Training Facilities-The PCG
modemization  program  shall  entail  the  development  and  im-
provement of training facilities for study, training, professional
progress, and exercise. This shall allow the PCG to obtain game-
changing equipment and facilities that will assist and empower
PCG personnel.
11.  Constmction and Development of Shipyards-The PCG modem-
ization program shall provide for the construction and develop-
ment of shipyards that can contribute to regional industrial infra-
structure and national security interests.
Ill. Construction and Development of Hangars~The PCG modemi-
zation  program  shall  entail  the  construction  and  expansion  of
hangars that serves  as  protection  from the  weather and  direct
sunlight, and for maintenance, repair, production , assembly , and
storage of aircraft.
SecfroH 6.         Perz.od a/ I.mp/emc#fcIfz.o#-The  modernization  program under this Act
shall be implemented every three (3) years, reflecting the four (4) tiers as stated under
Seection 5 of this Act, for a total period of twelve (12) years. Provz.did, however, that
payments for the amortization of outstanding multi-year contract obligations incurred
under this Act may extend beyond this period.
Section 7.         Submission of the PCG Moderniz;ation program
(a)  Within ninety (90) days from the effectivity of this Act, the President,
upon  the  recommendation  of the  Secretaries  of the  Departments  of
Transportation  and  Budget  and  Management,  shall  submit  the  PCG
modemization program as provided for in this Act to Congress for its
consideration and approval in a joint resolution of the House of Repre-
sentatives and the Senate. The program shall indicate or show inter alia:
I.    The PCG in terms of personnel, equipment, and facilities during
the various phases of the modemization program;


11.  The modemization projects under it, including the major weapon
and  non-weapon  equipment  and  technology  acquisitions,  any
major infrastructure construction or improvement to be  made,
and the particular objective(s) and component(s) under Sections
3 and 4, respectively, of this Act to which such intended acqui-
sition, construction or improvements belongs; and
Ill. The priorities, schedules as well  as the estimated average cost
for each modernization project or upgrading to be undertaken.
(b) In  the event Congress  approves the  IX=G  modernization  program, the
joint resolution shall  be the basis for subsequent executive and legisla-
tive actions to implement the PCG modernization program until its com-
plete and full realization.
Secft.o# 8.         Appropri.czfi.our-The annual appropriations for the PCG Modernization
Program shall include the amounts necessary to support the funding requirements for
all the modemization components approved by Congress under the preceding sections.
The appropriated funds under this Act shall be considered distinct and separate from
the regular appropriations for the Department of Transportation. Such funds shall be
shall be facilitated by the Secretary of the Depaltment of Transportation for its proper
implementation.
The  amount  of One  Hundred  Billion  Pesos  (Php  loo,000,000,000.00)  for the  first
implementation  period  shall  be  appropriated,  and  which  shall  be  renewed  every
implementation  period,  as  stated  in  this  Act.    Provided,  that  such  amount  may  be
i ncreased thereafter.
Secfrom 9.         PCG  A4odcmj.zczf!.o#  Ac/  Trwsf  Fwnd-There  is  hereby  created  a  trust
fund, to be known as the PCG Modernization Act Trust Fund, which shall be used ex-
clusively for the PCG Modernization Act, shall be funded out through the following:
(a) Appropriations for the PCG Modernization Program pursuant to the pro-
visions of this Act;


(b) Percentage (40%) of the annual proceeds of the Oil Pollution Manage-
ment Fund provided for under RA 9483;
(c)  Sale of proceeds from the sale, lease orjoint development of assets, and
disposal  of  excess  and/or  uneconomically  repairable  equipment  and
other movable assets of the PCG;
(d) Dues, fines, and  penalties collected  by the PCG in the exercise of its
functions;
(e)  Grants, donations and endowments from various domestic and foreign
sources;
(f)  Unused or undisbursed funds, other than unused appropriations for sal-
aries and benefits of the  PCG  personnel, remaining from all  previous
appropriations;
(g) Savings from austerity measures by the PCG, generated in the previous
fiscal year; and
(h) All interest income of the Trust Fund.
The  trust  fund  shall  be  administered  by  the  Secretary  of Transportation,  in
accordance with existing government auditing rules and regulations.
Section 10.            Multi-year cortracts and other cortractual Arrangemertts
(a) The  Secretary  of Transportation, pursuant to the  I{G  modemization
program, projects and appropriations approved by Congress, may, sub-
ject to the  approval  by the  President, provisions of existing  laws  and
regulations including those of the Commission on Audit and under such
terms and conditions most favorable to the government, enter into multi-
year contracts, lease and lease-purchase agreements.
(b) For multi-year contracts, Congress shall , upon certiflcation by the Pres-
ident, make the corresponding appropriation for the ensuing fiscal year:
Provided, that Congress  shall  appropriate  only  such funds  as may  be
necessary  to  pay  any  unpaid  amount where  such  funds  mentioned  in
Section 8 and 9 of this Act are not sufficient or available to meet such
payment in full or in part.


(c)  The Secretary of Transportation shall  submit to Congress, through the
Congressional  Oversight  Committee,  copies  of these  multi-year  con-
tracts and other agreements/arrangements to enable Congress to appro-
priate funds.
Secffo" JJ.      PCG proc#reme#f sysJem-The Department of Transportation and the
PCG shall strengthen its systems and procedures for equipment acquisition, taking into
account new requirements under the PCG Modernization Program. Contract negotia-
tions, and equipment, vessel and facilities acquisition shall be treated as two sequential
but separate steps, each requiring the separate decision of the Secretary of Transporta-
tion. Both the decision~making and contract negotiation processes for its acquisition
shall  start at the PCG  level  and be  submitted to the  Secretary of the Department of
Transportation.
In its systems and procedures for equipment acquisition, the provisions of RA 9184, as
amended, and other applicable laws shall apply.
Section 12.       Guidancef or the president-To meet unforeseen nzrdional seour±ty emer-
gencies, the President, upon the recommendation of the Secretary of Transportation,
may  modify  the  program  through  substitution  or  revision  of a  component  project
therein:  Provided, however, that he shall report such action to Congress within thirty
(30) days.
Sectiom J3.      A##wcl/ Reports-Not later than the end of the first quarter of the succeed-
ing year:
(a) The Secretary of Transportation shall submit to the President and Con-
gress an annual report on the status of the PCG Modernization Act Trust
Fund, as provided for in Section 9 of this Act;
(b) The Commandant of the PCG  shall  submit to the President and Con-
gress, through the Secretary of Transportation , an annual report contain-
ing the progress of the  implementation  of the modemization program
under this Act to include the PCG modemization activities implemented
prior to the approval of this Act.


Section 14.      Joint   Congressional   Oversight   Committee-AL   ]oiTit  Congress.Lena,1
Oversight Committee is hereby created to monitor and oversee the implementation of
the provisions of this Act. The Joint Congressional Oversight Committee shall be com-
posed of six (6)  Senators and six (6) Representatives to be appointed by the  Senate
President and the Speaker of the House of Representatives, respectively. It shall be co-
chaired by the Chairperson of the Committee on Transportation of both Houses. The
minority parties of both houses shall have at least two (2) representatives in the Joint
Congressional Oversight Committee.
Secfr.o# J5.       Scpczrczbl./I.ty c/¢wse-If any of the  sections or provisions of this Act is
held invalid, all the other provisions not affected thereby shall remain in full force and
effect.
Secft.o# J6.       Rcpecz/j."g c/czwse-All laws, executive orders, rules and regulations in-
consistent with or contrary to this Act, are hereby deemed repealed or amended accord-
ingly.
Secfl.o" J7.       Ejrecfz.vz.ty c/czwsc-This Act shall take effect after fifteen (15) days from
its publication in at least two (2) newspapers of general circulation in the Philippines.
APPROVED,