NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
of ri;?&vr.vHin-^
'22 AUG -3 P3 3«4
SENATE
S.B. No. 1013
RHCEIVLO BY;
Introduced by SENATOR IMEE R. MARCOS
AN ACT
ESTABLISHING THE BULACAN AIRPORT CITY SPECIAL ECONOMIC ZONE 
AND FREEPORT, PROVINCE OF BULACAN AND APPROPRIATING FUNDS
THEREFOR
EXPLANATORY NOTE
Article II, Section 20 of the 1987 Philippine Constitution provides that, "The State 
recognizes the indispensable roie of the private sector, encourages private enterprise, 
and provides incentives to needed investments."
The United Nations Conference on Trade and Development (UNCTAD) defines 
Special Economic Zones (SEZs) in its World Investment Report 2019 as geographically 
delimited areas within which governments facilitate industrial activity through fiscal and 
regulatory Incentives and Infrastructure support. Currently, there are over 5,300 SEZs 
In over 140 economies.
According to the United Nations (UN) Habitat, SEZs have been a popular policy 
instrument to stimulate economic growth. It has widely been present globally In both 
developed and developing countries. Moreover, economies benefit from the clustering 
of industries either as firms in the same sector (localization economies) or as diverse 
firms in the same location (urbanization economies). Studies also show that a strategic 
location close to key infrastructure hubs, large markets and labor pools is fundamental 
to attracting investors Into a zone. SEZs that are located in urban centers which are 
densely populated tend to be successful.
San Miguel Corporation Is currently building a new airport in Bulakan, Bulacan. 
The new airport will cover a total land area of 2,500 hectares and will accommodate
six runways, with a total capacity of 100 million passengers annually. The establishment
1


of an ecozone in the area will attract world-class semiconductor manufacturers, electric 
vehicle makers, and other emerging tech industries, which is projected to translate to 
$200 bill'on of additional exports.
For the foregoing reasons, the passage of this bill is earnestly sought.
‘ h-
i^eerTm^cos
'11. 
il
h :f


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Reg ular Session 
)
® S>ena!e
x\>rSl--.v>' (Bfficp of tijc n
*22 AUG -3 P3 ^6
SENATE
S.B. No. .ijQia
RECEIVED BY:
Introduced by SENATOR IMEE R. MARCOS
AN ACT
ESTABLISHING THE BULACAN AIRPORT CITY SPECIAL ECONOMIC ZONE 
AND FREEPORT, PROVINCE OF BULACAN AND APPROPRIATING FUNDS
THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
1 
CHAPTER 1
2 
GENERAL PROVISIONS
3
4 
SECTION 1. Short Title, - This Act shall be known as the "Bulacan Airport City
5 
Special Economic Zone and Freeport Act"
6 
SEC. 2. Declaration of Policy, - It is declared the policy of the State to
7 
encourage, promote, and accelerate the sound and balanced Industrial, economic and
8 
social development of the country. The establishment of special economic zones shall
9 
attract legitimate and productive foreign investments in strategic locations In the
10 
country. It shall generate employment and increase productivity and individual, as well
11 
as family incomes, thereby enhancing the quality of life of the Filipino people.
12 
CHAPTER II
13 
CREATION OF THE ECONOMIC ZONE AND FREEPORT
14
15 
SEC. 3. Creation of the Bulacan Airport City Special Economic Zone and
16 
Freeport - In accordance with the foregoing declared policy and subject to the
17 
concurrence of the affected local government units (LGUs) of Bulacan, there Is hereby


1 
established a Special Economic Zone and Freeport, hereinafter referred to as the
2 
Buiacan Ecozone. The Bulacan Ecozone shall cover the domestic and international
3 
airport, the Airport City to be developed adjacent to the airport, and lands adjacent to
4 
the Airport City as may be determined hereinafter. The specific metes and bounds of
5 
the Bulacan Ecozone shall be more particularly defined in a presidential proclamation
6 
that shall be issued for this purpose: Provided, That the lands embraced therein shall
7 
be contiguous to one another.
8 
SEC. 4. Creation of the Bulacan Airport City Special Economic Zone and
9 
Freeport Authority. - There is hereby created a body corporate to be known as the
10 
"Bulacan Airport City Special Economic Zone and Freeport Authority" hereinafter
11 
referred to as the BACSEZFA, which shall manage and operate the Bulacan Ecozone, in
12 
accordance with the provisions of this Act. The corporate life of the Authority shall
13 
expire in fifty (50) years counted from the first year after the effectivity of this Act,
14 
unless otherwise extended by Congress. It shall be organized within one hundred eighty
15 
(180) days after the effectivity of this Act.
16 
SEC. 5. Governing Principles. - The BACSEZFA, created under Section 4 of
17 
this Act, shall manage and operate the Bulacan Ecozone under the following principles:
18 
a) Within the framework and limitations of the Constitution and applicable
19 
provisions of the Local Government Code, the Bulacan Ecozone shall have a domestic
20 
and international airport and be developed into and operated as a decentralized, self-
21 
reliant and self-sustaining industrial, commercial/trading, agro-industrial, tourist,
22 
banking, financial and investment center with suitable residential areas under the
23 
Airport City;
24 
b) 
The Bulacan Ecozone shall be equipped with transportation,
25 
telecommunications and other facilities needed to attract legitimate and productive
26 
investments, generate linkage Industries and employment opportunities for the people
27 
of the Municipality of Bulakan and its neighboring towns and cities;
28 
c) The Bulacan Ecozone may establish mutually beneficial economic relations
29 
with other entities or enterprises within the country or, subject to the administrative
'30 
guidance of the Department of Foreign Affairs (DFA), the Philippine Economic Zone
31 
Authority (PEZA), and/or the Department of Trade and Industry (DTI), with foreign
32 
entities or enterprises;
33 
d) 
Foreign citizens and companies owned by non-Filipinos in whatever
34 
proportion may set up enterprises In the Bulacan Ecozone, either by themselves or in


1 
a joint venture with Filipinos in any sector of industry, international trade and
2 
commerce within the Bulacan Ecozone;
3 
e) The Bulacan Ecozone shall be managed and operated as a separate customs
4 
territory thereby ensuring the free flow or movement of goods and capital within, into,
5 
and out of its territory, and shall likewise provide incentives such as tax and duty-free
6 
importations of raw materials, capital and equipment to registered enterprises located
7 
therein, as provided under Republic Act No. 11534, otherwise known as the ""Corporate
8 
Recovery And Tax Incentives For Enterprises Act';
9 
f) The areas comprising the Bulacan Ecozone may be expanded or reduced
10 
when necessary through a Presidential Proclamation issued for the purpose.
11 
g) Goods manufactured by a Bulacan Ecozone enterprise shall be made available
12 
for immediate retail sale in the domestic market, subject to the payment of
13 
corresponding taxes on raw materials and other regulations that may be formulated by
14 
the BACSEZFA together with the PEZA, the Bureau of Customs (BOC), and the DTI.
15 
However, in order to protect domestic industries, a Negative List of industries shall be
16 
drawn up and regularly updated by PEZA. Enterprises engaged In industries included
17 
in such Negative List shall not be allowed to sell their products locally; and
18 
h) The defense of the Bulacan Ecozone and the security of Its perimeter fence
19 
shall be the responsibility of the National Government, in coordination with the
20 
BACSEZFA and the LGUs.
21 
SEC. 6. Development Goals of the Bulacan Ecozone. - The BACSEZFA
22 
shall Include in Its development goals for the Bulacan Ecozone the construction and
23 
operation of a domestic and international airport and allied businesses within the
24 
framework of national development plans, policies and goals. The Chairperson-
25 
Administrator shall, upon approval by the Board, submit the Bulacan Ecozone plans,
26 
programs and projects to the Regional Development Council for inclusion and Inputs to
27 
the overall regional development plan.
28 
SEC. 7. Capitalization. - The BACSEZFA shall have an authorized capital stock
29 
of two billion (2,000,000,000) no-par shares at a minimum issue of Ten pesos (PIO.OO)
30 
each, the majority shares of which shall be subscribed and paid for by the National
31 
Government and the LGUs embracing the BACSEZFA. The Board of Directors of the
32 
BACSEZFA may, with the written concurrence of the Secretary of Finance, sell shares,
33 
representing not more than forty per centum (40%) of the capital stock of the
34 
BACSEZFA to the general public under such policy as the Board and the Secretary of


1 
Finance may determine. The National Government and the LGUs shall in no case own
2 
less than sixty per centum (60%) of the total issued and outstanding capital of the
3 
BACSEZFA.
4 
The amount necessary to subscribe and pay for the shares of the National
5 
Government to the capital stock of the BACSEZFA shall be included in the annual
6 
General Appropriations Act. For the LGUs concerned, the funds shall be taken from their
7 
internal revenue allotment and other local funds.
8 
SEC. 8. Principal Office of the BACSEZFA. - The BACSEZFA shall maintain
9 
Its principal office at the Airport City, but It may establish liaison offices within the
10 
Philippines, as may be necessary, for the proper conduct of its business.
11 
SEC. 9. Powers and Functions of the BACSEZFA. - The BACSEZFA shall
12 
have the following powers and functions:
13 
a) To operate, administer, manage and develop the Bulacan Ecozone according
14 
to the principles and provisions set forth in this Act,
15 
b) To register, regulate and supervise the enterprises in the Bulacan Ecozone
16 
in an efficient and decentralized manner, subject to existing laws;
17 
c) To coordinate with LGUs and exercise general supervision over the
18 
development plans, activities and operations of the Bulacan Ecozone;
19 
d) To undertake the establishment, construction, operation and maintenance
20 
of public utilities, other services, and infrastructure In the Bulacan Ecozone such as light
21 
and power, shipping, barging, stevedoring, cargo handling, hauling, warehousing,
22 
storage of cargo, port services or concessions, piers, wharves, bulkheads, bulk
23 
terminals, mooring areas, storage areas, roads, telecommunications, transport,
24 
bridges, terminals, conveyors, water supply and storage, sewerage, and drainage,
25 
Providea, That such shall be in compliance and coordination with the rules and
26 
regulations of the concerned departments and agencies;
27 
e) To construct, acquire, own, lease, operate and maintain on its own or
28 
through contracts, franchise, licenses, bulk purchase from the private sector or permits
29 
under any of the schemes allowed in Republic Act No. 6957, otherwise known as the
30 
"BuHd-Operate-Transfer LaW'f as amended, or joint venture, adequate facilities and
31 
infrastructure required or needed for the operation and development of the Bulacan


1 
Ecozone, in coordination with appropriate national and local government authorities
2 
and in conformity with applicable laws thereof;
3 
f) To approve plans, programs and projects of the Bulacan Ecozone, to be
4 
submitted to the Regional Development Council for Inclusion and inputs to the overall
5 
Regional Development Plan;
6 
g) To raise or borrow, within the limitation provided by law, and subject to the
7 
approval of the Monetary Board of the Bangko Sentral Ng Pilipinas (BSP), as the case
8 
may be, adequate and necessary funds from local or foreign sources, to finance Its
9 
projects and programs under this Act and for this purpose, to issue bonds, promissory
10 
notes and other forms of securities, and to secure the same by a guarantee, pledge,
11 
mortgage, deed of trust or an assignment of all or part of its property or assets;
12 
i) To create, operate or contract to operate such functional units or offices of
13 
the BACSEZFA, as it may deem necessary;
14 
j) To adopt, alter and use a corporate seal; contract, lease, buy, acquire, own
15 
or otherwise dispose of personal and/or real property of whatever nature; sue and be
16 
sued; and otherwise carry out its functions and duties, as provided for in this Act;
17 
k) To issue certificates of origin for products manufactured or processed In the
18 
Bulacan Ecozone, in accordance with prevailing rules of origin and the pertinent
19 
regulations of the PEZA, the DTI and/or, the Department of Finance (DOF);
20 
I) To establish one-stop shops for the issuance of all necessary permits,
21 
clearances, licenses, and other similar certifications to conduct such activities intended
22 
to improve the ease of doing business within the Bulacan Ecozone, in coordination with
23 
government agencies having jurisdiction over activities therein: Provided, That all
24 
government agencies are directed to provide and extend utmost and full cooperation
25 
to the Bulacan Ecozone in the establishment of such one-stop shops;
26 
m) To provide internal security to the Bulacan Ecozone, in coordination with the
27 
National government and affected LGU. For this purpose, the BACSEZFA shall provide
28 
and establish its own internal security and firefighting forces or hire others to provide
29 
the same;
30 
n) To exercise such powers as may be essential, necessary or Incidental to the
31 
powers granted to it hereunder, as well as those that shall enable It to carry out,
32 
implement and accomplish the purposes, objectives and policies of this Act; and


1 
o) To issue rules and regulations consistent with the provisions of this Act, as
2 
may be necessary, to accomplish and implement the purposes, objectives, and policies
3 
provided herein.
4 
SEC. 10. Board of Directors of the BACSEZFA. - The powers of the
5 
BACSEZFA shall be vested in and exercised by a Board of Directors, hereinafter referred
6 
to as the Board', which shall be composed of the following:
7 
a) The Chairperson, who shall at the same time be the Administrator of the
8 
BACSEZFA;
9 
b) A Vice-Chairperson who shall be elected from among the Members of the 
10 Board of Directors;
11
12
13
14
15
16
17
18
19
20 
21
22
23
24
25
26
c) Members consisting of:
1) The Socioeconomic Planning Secretary or a designated representative 
of the National Economic and Development Authority (NEDA);
2) The Secretary or a designated representative of the DTI;
3) The Secretary or a designated representative of the DOF;
4) One (1) representative from the Province of Bulacan;
5) One (1) representative from the Municipality of Bulakan;
6) One (1) representative from business sector whose business is located 
within the legislative district covering the premises of the Bulacan Ecozone;
7) One (1) representative from the domestic investors in the 
Bulacan Ecozone;
8) One (1) representative from the foreign investors in the Bulacan 
Ecozone; and
9) One (1) representative from the workers working in the Bulacan 
Ecozone.
The Chairperson and the members of the Board shall be appointed by the
27 
President of the Philippines to serve for a term of six (6) years, unless sooner separated
28 
from service due to death, voluntary resignation, or removal for cause. In case of


1 
death, resignation or removal for cause, their replacements shall serve only the
2 
unexpired portion of the respective terms.
3 
Except for the representatives from the business and labor sectors, no person
4 
shall be appointed by the President of the Philippines as a member of the Board unless
5 
he is Filipino citizen, of gc^od moral character, of proven probity and integrity, and a
6 
degree-holder In any of the following fields: economics, business, public administration,
7 
law, management or their equivalent, and with at least ten (10) years relevant working
8 
experience preferably in the field of management or public administration.
9 
The members of the Board shall each receive per diem at rates to be determined
10 
by the Department of Budget and Management (DBM), in accordance with existing
11 
rules and regulations: Provided, however, That the total per diem collected each month
12 
shall not exceed the equivalent per diem for four (4) meetings. Unless and until the
13 
President 
of the Philippines has fixed a higher per diem for the members of the
14 
Board, such per diem shall not be more than Ten thousand pesos (P10,000.00)
15 
for every Board meeting.
16 
SEC. 11. Organization and Personnel. - The Board of Directors of the
17 
BACSEZFA shall provide for Its organization and staff. The Board shall appoint and fix
18 
the remuneration and other emoluments of its officers and employees in accordance
19 
with existing laws on compensation and position classification. The Board shall have
20 
exclusive and final authority to promote, transfer, assign, reassign, or remove officers
21 
of the BACSEZFA, any provision of existing law to the contrary notwithstanding. The
22 
Chairperson-Administrator shall execute the decisions of the Board.
23 
The officers and employees of the BACSEZFA, including all members of the
24 
Board, shall not engage directly or Indirectly In partisan activities nor take part in any
25 
election, except to vote.
26 
No officer or employee of the BACSEZFA, subject to civil service laws and
27 
regulations, shall be removed or suspended except for cause, as provided by Civil
28 
Service law and regulations.
29 
SEC. 12. Powers and Duties of the Chairperson-Administrator. - The
30 
Chairperson-Administrator shall have the following powers and duties:
31
32 
a) To direct and manage the affairs of the BACSEZFA, In accordance with the
33 
policies of the Board;


1 
b) To establish the internal organization of the BACSEZFA under such conditions
2 
that the Board may prescribe;
3 
c) To submit an annual budget and necessary supplemental budget to the
4 
Board for its approval;
5 
d) To submit within thirty (30) days after the close of each fiscal year an annual
6 
report to the Board and such other reports as may be required;
7 
e) To submit to the Board for its approval, policies, systems, procedures, rules
8 
and regulations that are essential to the operation of the Bulacan Ecozone;
9 
f) To recommend to the Board the remuneration and other emoluments of its
10 
officers and employees in accordance with existing laws on compensation and position
11 
classification;
12 
9) To create a mechanism In coordination with relevant agencies for the
13 
promotion of Industrial peace, the protection of the environment, and the advancement
14 
of the quality of life in the Bulacan Ecozone; and
15 
h) To perform such other duties as may be assigned by the Board or which are
16 
necessary or incidental to the office.
17 
SEC. 13. Legal Counsel. - The BACSEZFA shall have its own internal legal
18 
counsel under the supervision of the government corporate counsel. When the
19 
exigencies of Its businesses and operations demand it, the BACSEZFA may engage the
20 
services of an 
outside counsel either on a case to case or on a fixed retainer
21 
basis.
22 
CHAPTER III
23 
INCENTIVES TO ECOZONE ENTERPRISES/INVESTORS
24 
SEC. 14. Investors Visa. - Any foreign national who invests an amount of
25 
Two hundred thousand US dollars (US$200,000.00), either In cash and/or equipment,
26 
in a registered enterprise shall be entitled to an investor's visa: Provided, That the
27 
foreign national:
28 
a) Must be at least eighteen (18) years of age;


1 
b) Must not have been convicted by final judgment of a crime involving moral
2 
turpitude;
3 
c) 
Must not be afflicted with any loathsome, dangerous or contagious disease;
4 
d) 
Must not have been confined in an institution for any mental disorder or
5 
disability; and
6 
e) 
Must be financially capable as borne out by credible and verifiable evidence.
7 
A foreign national may reside in the Philippines while the investment subsists.
8 
To prove this, the foreign national shall submit an annual report In the form duly
9 
prescribed for the purpose. Should said investments be withdrawn from the Philippines,
10 
the investor's visa issued to said foreign national shall automatically expire and/or be
11 
withdrawn.
12 
The authority to Issue visas and work permits shall remain with the Bureau of
13 
Immigration (BI) and the Department of Labor and Employment (DOLE), respectively:
14 
Provided, That the BI and the DOLE shall implement measures to expedite the
15 
processing of such visas and permits for workers In the Bulacan Ecozone and coordinate
16 
with the BACSEZFA for the purpose of improving ease of doing business.
17 
SEC. 15. Fiscal Incentives. - Registered enterprises operating within the
18 
Bulacan Ecozone may be entitled to the existing fiscal Incentives provided and granted
19 
under Title XIII (Tax Incentives) of the National Internal Revenue Code of 1997, as
20 
amended by Republic Act No. 11534, otherwise known as the "Corporate Recovery And
21 
Tax Incentives For Enterprises Act"
22 
SEC. 16. Administration, Implementation and Monitoring of
23 
Incentives. - In the interest of enhancing transparency in the management and
24 
accounting of tax incentives in the Bulacan Ecozone, and ensuring the proper
25 
administration, management, enforcement, Implementation and monitoring of tax
26 
incentives, the BACSEZFA shall comply with the provisions of Republic Act No. 11534,
27 
otherwise known as the "Corporate Recovery And Tax Incentives For Enterprises Act'.
28 
The BOC shall set up and establish a customs-controlled area outside the
29 
premises of the Bulacan Ecozone to facilitate payment of duties and taxes on goods
30 
entering the Philippine customs territory: Provided, That notwithstanding the limitations
31 
on this Act, the BACSEZFA and BOC may coordinate and jointly Implement measures
32 
on border protection.


1 
SEC. 17. Banking Rules and Regulations. - Banks and financial institutions
2 
to be established in the Buiacan Ecozone shall be under the supervision of the BSP and
3 
subject to existing banking laws, rules and regulations.
4 
SEC. 18. Remittances. - In the case of foi eign investments, a duly registered
5 
entity or enterprise within the Buiacan Ecozone shall have the right to remit earnings
6 
from the investment in the currency in which the investment was originally made and
7 
at the exchange rate prevailing at the time of remittance, subject to the provisions of
8 
Republic Act No. 7653, otherwise known as "The New Central Bank Act" as amended.
9 
CHAPTER IV
10 
NATIONAL GOVERNMENT AND OTHER ENTITIES
11
12 
SEC. 19. Supervision and Control. - For purposes of policy direction and
13 
coordination, the BACSEZFA shall be under the direct supervision and control of the
14 
Office of the President of the Philippines.
15 
SEC. 20. Relationship with Local Government Units. - Except as herein
16 
provided, the LGUs comprising the Buiacan Ecozone shall retain their basic autonomy
17 
and identity. The Municipality of Bulakan, Province of Buiacan, shall operate and
18 
function in accordance with the framework of the Constitution, Local Government Code
19 
of 1991, and this Act.
20 
In case of any conflict among the BACSEZFA and the LGUs and the National
21 
Government on matters affecting the Buiacan Ecozone, other than national defense
22 
and security matters, the decision of the BACSEZFA shall prevail.
23 
SEC. 21. Audit - Given that the national government shall subscribe to the
24 
majority shares of the capital stock of BACSEZFA, the Commission on Audit shall appoint
25 
a full-time auditor in the BACSEZFA and assign such number of personnel, as may be
26 
necessary, to assist the full-time auditor in the performance of his/her duties. The
27 
salaries and emoluments of the assigned auditor and personnel shall be in accordance
28 
with pertinent laws, rules, and regulations.
29 
CHAPTER V
30 
MISCELLANEOUS
31
32 
SEC. 22. Interpretation and Construction. - The powers, authorities and
33 
functions that are vested in the BACSEZFA are intended to establish national self-
34 
sufficiency and self-reliance in the advancement of and protection of the national
10


1 
integrity, enhancement of national security, decentralization of governmental functions
2 
and authority, and promote an efficient and effective working relationship among the
3 
BACSEZFA, the National Government and the LGUs. Any interpretation of this Act shall
4 
consider such intentions. In the event of conflict of interpretation and provided the
5 
intentions cannot be harmonized, the provisions of this Act shall be construed in favor
6 
of an interpretation that would tend to protect national security.
7 
SEC. 23. Applicability Clause. - Insofar as these are consistent with the
8 
provisions of this Act, the provisions of Sections 30 to 41 of Republic Act No. 7916
9 
otherwise known as 'The Special Economic Zone Act of 1995" shall likewise apply to
10 
the Bulacan Ecozone.
11 
SEC. 24. Implementing Rules and Regulations. - The DTI, DOF and the
12 
NEDA shall formulate the Implementing rules and regulations of this Act.
13 
SEC. 25. Separability Clause. - If any provision of this Act shall be held
14 
unconstitutional or invalid, the other provisions not otherwise affected shall remain In
15 
full 
force and effect.
16 
SEC. 26. Repealing Clause. - All laws, executive orders or issuances or any
17 
part thereof, which are inconsistent herewith, are hereby repealed or amended
18 
accordingly.
19 
SEC. 27. Effectivity. - This Act shall take effect fifteen (15) days after its
20 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
11