Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
CONGRESS OF THE PHILIPPINES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No.  __________ 
Introduced by Honorable ALFONSO V. UMALI, JR. 
EXPLANATORY NOTE 
The current but fast-changing nature of both global and 
local economies, not to mention the increasing trend towards 
globalization, highly encourages the establishment of Special 
Economic Zones in strategic geographic areas in the Philippines. 
This bill seeks to establish the Special Economic Zone and 
Freeport Zone in the Municipality of Mansalay in the Province of 
Oriental Mindoro. 
Be it known that Oriental Mindoro is not only an 
agricultural haven, but also an emerging choice of area for 
investment. Dubbed as the “Gateway to the South,” thousands of 
goods and people traverse the Province of Oriental Mindoro to 
and from the islands of Visayas and Mindanao. Further, the 
province is also gifted with diverse natural resources, progressive 
transportation infrastructure, power and abundant supply of 
highly technical and skilled human resources. Today, the 
Province of Oriental Mindoro continues to be one of the preferred 
alternative areas for investment. Given its strategic geographical 
location and profuse resources, the establishment of a Special 
Economic and Freeport Zone in the province is undeniably ideal 
and apposite.  
Anchoring on the main objective of promoting the 
countryside as alternative areas for investments which has been 
one of the mechanisms in order to empower and develop other 
July 28, 2022
5:16 pm
2728


provinces as early as in the 1990s when most of the Special 
Economic Zones in the country were established, this bill 
envisions to create an Ecozone that will also alleviate and 
improve the economic condition not only of the Province of 
Oriental Mindoro but the entire MIMAROPA Region as well as its 
nearby provinces. By establishment of this Ecozone, local 
economic activities will significantly increase. Industrialization 
will spur development even in the far-flung areas in the Region, 
thus uplifting the welfare of the rural folks while, at the same 
time, decongesting the cities and urbans like Metro Manila. 
 
The Special Economic and Freeport Zone is conceptualized 
as a self-sustaining industrial, commercial and investment center 
resulting to economic growth and employment generation. This 
bill also envisions an Economic and Freeport Zone to be operated 
as a separate customs territory to ensure free flow of movement 
of goods and commodities in the area and their exportation 
therefrom. Similar to other ecozones in the country, it will provide 
various incentives, both tax and non-tax, for businesses 
operating within the zone.  
 
Emphasis must be made on the fact that the establishment 
of Oriental Mindoro Special Economic and Freeport Zones is 
consistent with the government’s policy to encourage and 
promote investments, induce and accelerate sound and balanced 
industrial, economic and social development in the country. 
 
Given the foregoing, consideration and early approval of this 
bill is earnestly sought. 
 
 
 
 
 
 
ALFONSO V. UMALI, JR. 
 
 
 
 
 
        Representative 
 
 
 
 
  Second District, Oriental Mindoro 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
CONGRESS OF THE PHILIPPINES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ________ 
________________________________________________________________ 
Introduced by HON. ALFONSO V. UMALI, JR. 
________________________________________________________________ 
AN ACT ESTABLISHING A SPECIAL ECONOMIC ZONE IN THE 
MUNICIPALITY OF MANSALAY, PROVINCE OF ORIENTAL 
MINDORO, CREATING FOR THE PURPOSE THE ORIENTAL 
MINDORO SPECIAL ECONOMIC ZONE AUTHORITY, AND 
APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives 
of the Philippines in Congress assembled: 
CHAPTER I 
GENERAL PROVISIONS  
SECTION 1. Short Title. – This Act shall be known as the 
“Oriental Mindoro Special Economic Zone Act." 
SEC. 2. Declaration of Policy. – It is declared the policy of the 
State to encourage, promote, and accelerate the sound and 
balanced industrial, economic, and social development of the 
country. The establishment of special economic zones shall 
attract legitimate and productive foreign investments in strategic 
locations in the country. It shall generate employment, enhance 
productivity, and increase individual and family incomes, thereby 
enhancing the quality of life of the Filipino people.  
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CHAPTER II 
CREATION OF THE ECONOMIC ZONE  
SEC. 3. Creation of the Oriental Mindoro Special Economic Zone. 
– In accordance with the foregoing declared policy and subject to 
the concurrence of the concerned local government units (LGUs) 
of Oriental Mindoro, there is hereby established a special 
economic zone, hereinafter referred to as the Oriental Mindoro 
Ecozone. The Oriental Mindoro Ecozone shall cover a particular 
area located in the Municipality of Mansalay, Province of Oriental 
Mindoro, the specific metes and bounds of which shall be more 
particularly defined in a presidential proclamation that shall be 
issued for this purpose: Provided, That the lands embraced 
therein shall be contiguous to one another.  
SEC. 4. Creation of the Oriental Mindoro Special Economic Zone 
Authority. – There is hereby created a body corporate to be 
known as the Oriental Mindoro Special Economic Zone Authority, 
hereinafter referred to as the ORMINSEZA, which shall manage 
and operate the Oriental Mindoro Ecozone, in accordance with 
the provisions of this Act.  
The corporate life of the ORMINSEZA shall expire in fifty (50) 
years, counted from the first year after the effectivity of this Act, 
unless otherwise extended by Congress. It shall be organized 
within one hundred eighty (180) days after the effectivity of this 
Act.  
SEC. 5. Governing Principles. – The ORMINSEZA shall manage 
and operate the Oriental Mindoro Ecozone, under the following 
principles:  
a)
Within the framework and limitations of the Constitution and 
applicable provisions of Republic Act No. 7160, or the Local 
Government Code, as amended, the Oriental Mindoro Ecozone 
shall be developed into and operated as a decentralized, self 
reliant and self-sustaining industrial, commercial, trading, 
agro-industrial, tourist, banking, financial, and investment 
center with suitable residential areas;  
b)
The Oriental Mindoro Ecozone shall be equipped with 
transportation, telecommunications, and other facilities 
needed to attract legitimate and productive investments, 
generate linkage industries and employment opportunities for 


the people of the Municipality of Mansalay and those in 
neighboring towns and cities;  
c)
The Oriental Mindoro Ecozone may establish mutually 
beneficial economic relations with other entities or enterprises 
within the country or, subject to the administrative guidance 
of the Department of Foreign Affairs, the Philippine Economic 
Zone Authority (PEZA), and the Department of Trade and 
Industry (DTI), with foreign entities or enterprises;  
d)
Foreign citizens and companies owned by non-Filipinos in 
whatever proportion may set up enterprises in the Oriental 
Mindoro Ecozone, either by themselves or in a joint venture 
with Filipinos in any sector of industry, international trade 
and commerce within the Oriental Mindoro Ecozone;  
e)
The Oriental Mindoro Ecozone shall be managed and operated 
as a separate customs territory thereby ensuring the free flow 
or movement of goods and capital within, into and out of its 
territory, and shall likewise provide incentives subject to Title 
XIII of the National Internal Revenue Code, as amended. 
However, exportation or removal of goods from the territory of 
the Oriental Mindoro Ecozone to the other parts of the 
Philippine territory shall be subject to customs duties and 
taxes under Republic Act No. 10863, otherwise known as the 
“Customs Modernization and Tariff Act” and other relevant tax 
laws of the Philippines;  
f)
The areas comprising the Oriental Mindoro Ecozone may be 
expanded or reduced when necessary through a presidential 
proclamation issued for the said purpose. For this purpose, 
the ORMINSEZA, in consultation with the LGUs, shall have 
the power to acquire either by purchase, negotiation or 
condemnation proceedings, any private land within or 
adjacent to the Oriental Mindoro Ecozone for the following 
purposes:  
(1) consolidation of lands for zone development;  
(2) acquisition of right of way to the Oriental Mindoro 
Ecozone; and  
(3) the protection of watershed areas and natural 
assets valuable to the prosperity of the Oriental 
Mindoro Ecozone;  


g)
Goods manufactured by an Oriental Mindoro Ecozone 
enterprise shall be made available for immediate retail sale in 
the domestic market, subject to the payment of corresponding 
taxes on raw materials and other regulations that may be 
formulated by the ORMINSEZA together with the PEZA, the 
Bureau of Customs, the Bureau of Internal Revenue, and the 
DTI. However, in order to protect domestic industries, a 
Negative List of industries shall be drawn up and regularly 
updated by the PEZA. Enterprises engaged in industries 
included in such Negative List shall not be allowed to sell 
their products locally; and  
h)
The defense of the Oriental Mindoro Ecozone and the security 
of its perimeter fence shall be the responsibility of the 
national government in coordination with the ORMINSEZA 
and the concerned LGUs.  
SEC. 6. Development Goals of the Oriental Mindoro Ecozone. – 
The ORMINSEZA shall determine the development goals of the 
Oriental Mindoro Ecozone within the framework of national 
development plans, policies, and goals. The Chairperson 
Administrator shall, upon approval by the Board of the 
ORMINSEZA, submit the Oriental Mindoro Ecozone plans, 
programs, and projects to the Regional Development Council for 
inclusion in the overall regional development plan.  
SEC. 7. Capitalization. – The ORMINSEZA shall have an 
authorized capital stock of two billion (2,000,000,000) no par 
shares with a minimum issue of Ten pesos (Php10.00) each, the 
majority shares of which shall be subscribed and paid for by the 
national government and the LGUs embracing the Oriental 
Mindoro Ecozone. The Board of Directors of the ORMINSEZA 
may, with the written concurrence of the Secretary of Finance, 
sell shares representing not more than forty per centum (40%) of 
the capital stock of the ORMINSEZA to the general public under 
such policy as the Board and the Secretary of Finance may 
determine.  
The national government and the LGUs shall in no case own less 
than sixty per centum (60%) of the total issued and outstanding 
capital of the ORMINSEZA. The amount necessary to subscribe 
and pay for the shares of the national government to the capital 


stock of the ORMINSEZA shall be included in the General 
Appropriations Act.  
For the LGUs concerned, the funds shall be taken from their 
internal revenue allotment and other local funds.  
SEC. 8. Principal Office of the ORMINSEZA. – The ORMINSEZA 
shall maintain its principal office in the Municipality of Mansalay, 
Province of Oriental Mindoro, but it may establish liaison offices 
within the Philippines as may be necessary for the proper 
conduct of its business.  
SEC. 9. Powers and Functions of the ORMINSEZA. – The 
ORMINSEZA shall have the following powers and functions:  
a)
To operate, administer, manage, and develop the Oriental 
Mindoro Ecozone according to the principles and provisions 
set forth in this Act;  
b)
To register, regulate, and supervise the enterprises in the 
Oriental Mindoro Ecozone in an efficient and decentralized 
manner, subject to existing laws;  
c)
To coordinate with LGUs and exercise general supervision 
over the development plans, activities, and operations of the 
Oriental Mindoro Ecozone;  
d)
To regulate and undertake the establishment, construction, 
operation, and maintenance of public utilities, other services, 
and infrastructure in the Oriental Mindoro Ecozone such as 
light and power, shipping, barging, stevedoring, cargo 
handling, hauling, warehousing, storage of cargo, port 
services or concessions, piers, wharves, bulkheads, bulk 
terminals, mooring areas, storage areas, roads, 
telecommunications, transport, bridges, terminals, conveyors, 
water supply and storage, sewerage, drainage, airport 
operations in coordination with the Civil Aviation Authority of 
the Philippines, and such other services or concessions or 
infrastructure necessary or incidental to the accomplishment 
of the objectives of this Act;  
e)
To construct, acquire, own, lease, operate, and maintain on 
its own or through contracts, franchise, licenses, bulk 


purchase from the private sector or permits under any of the 
schemes allowed in Republic Act No. 6957, otherwise known 
as the “Build Operate-Transfer Law”, as amended, or joint 
venture, adequate facilities and infrastructure required or 
needed for the operation and development of the Oriental 
Mindoro Ecozone, in coordination with appropriate national 
and local government authorities and in conformity with 
applicable laws thereon;  
f)
To approve plans, programs, and projects of the Oriental 
Mindoro Ecozone to be submitted to the Regional 
Development Council for inclusion in the regional 
development plan;  
g)
To operate on its own, either directly or through licenses to 
others, tourism-related activities, including games, 
amusements, recreational and sports facilities, subject to the 
approval and supervision of the Philippine Amusement and 
Gaming Corporation;  
h)
To raise or borrow, within the limitation provided by law, and 
subject to the approval of the Monetary Board of the Bangko 
Sentral ng Pilipinas (BSP), as the case may be, adequate and 
necessary funds from local or foreign sources, to finance its 
projects and programs under this Act and for this purpose, to 
issue bonds, promissory notes, and other forms 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;  
i)
To protect, preserve, maintain, and develop the forests, 
beaches, corals and coral reefs, and maintain ecological 
balance within the Oriental Mindoro Ecozone. 
Notwithstanding the power of the ORMINSEZA to create rules 
for such purpose, the rules and regulations of the Department 
of Environment and Natural Resources and other government 
agencies involved in the above functions shall be implemented 
by the ORMINSEZA;  
j)
To create, operate or contract to operate such functional units 
or offices of the ORMINSEZA as it may deem necessary;  


k)
To adopt, alter, and use a corporate seal; contract, lease, buy, 
acquire, own or otherwise dispose of personal or real property 
of whatever nature; sue and be sued; and otherwise carry out 
its functions and duties as provided for in this Act;  
l)
To issue certificates of origin for products manufactured or 
processed in the Oriental Mindoro Ecozone in accordance with 
prevailing rules of origin and the pertinent regulations of the 
PEZA, the DTI, and the Department of Finance (DOF);  
m) To establish one-stop shops for the issuance of all necessary 
permits, clearances, licenses, and other similar certifications 
to conduct such activities intended to improve the ease of 
doing business within the Oriental Mindoro Ecozone, in 
coordination with government agencies having jurisdiction 
over activities therein: Provided, That all government agencies 
are directed to provide and extend utmost and full 
cooperation to the ORMINSEZA in the establishment of such 
one-stop shops;  
n)
To ensure that the area covered by the Oriental Mindoro 
Ecozone is secure at all times: Provided, That the Armed 
Forces of the Philippines (AFP) or the Philippine National 
Police (PNP) shall not interfere in the internal affairs of the 
ORMINSEZA except to provide the necessary security and 
defense, or law enforcement assistance, as the case may be: 
Provided, finally, That expenses of the AFP or the PNP in the 
Oriental Mindoro Ecozone shall be borne by the national 
government;  
o)
To exercise such powers as may be essential, necessary or 
incidental to the powers granted to it by this Act, as well as 
those that shall enable it to carry out, implement and 
accomplish the purposes, objectives, and policies set forth in 
this Act; and  
p)
To issue rules and regulations consistent with the provisions 
of this Act as may be necessary to accomplish and implement 
the purposes, objectives, and policies provided herein.  
SEC. 10. Board of Directors of the ORMINSEZA. – The powers of 
the ORMINSEZA shall be vested in and exercised by a Board of 


Directors, hereinafter referred to as the Board, which shall be 
composed of the following:  
a)
A Chairperson, who shall at the same time be the 
administrator of the ORMINSEZA;  
b)
A Vice-Chairperson who shall be elected from among the 
members of the Board of Directors;  
c)
Members, consisting of:  
1)
The Governor of the Province of Oriental Mindoro or a 
duly-authorized representative from the Provincial 
Government of Oriental Mindoro;  
2)
One (1) of the mayors of the municipalities covered by the 
ecozone;  
3)
One (1) representative from the investors’ group; and  
4)
One (1) representative from among the workers in the 
Oriental Mindoro Ecozone.  
The Governor or the Governor’s duly authorized representative 
and the mayors of the municipalities within the ecozone shall 
serve as ex officio members of the Board, whose terms in the 
Board shall correspond to their terms as elected officials.  
The Chairperson-Administrator and the members of the Board, 
except for the representatives of the investors and workers 
groups and the ex officio members, shall be appointed by the 
President of the Philippines to serve for a term of six (6) years, 
unless sooner separated from service due to death, voluntary 
resignation or removal for cause. In case of death, resignation or 
removal for cause, their replacements shall serve only the 
unexpired portion of the respective terms.  
No person shall be appointed as a member of the Board unless 
the person is a Filipino citizen, of good moral character, of proven 
probity and integrity, and a degree holder in any of the following 
fields: economics, business, public administration, law, 
management or their equivalent, and with at least ten (10) years 
relevant working experience, preferably in the field of 
management or public administration.  
The members of the Board, except the ex officio members, shall 
each receive per diem allowance at rates to be determined by the 


Department of Budget and Management in accordance with 
existing rules and regulations: Provided, however, That the total 
per diem allowance collected each month shall not exceed the 
equivalent of four (4) meetings unless and until the President of 
the Philippines has fixed a higher rate for the per diem allowance 
for the members of the Board, such allowance shall not be more 
than Ten thousand pesos (Php10,000.00) for every Board 
meeting.  
SEC. 11. Organization and Personnel. – The Board of Directors of 
the ORMINSEZA shall provide for its organization and staff. The 
Board shall appoint and fix the remuneration and other 
emoluments of its officers and employees in accordance with 
existing laws on compensation and position classification. The 
Board shall have exclusive and final authority to promote, 
transfer, assign, reassign, or remove officers of the ORMINSEZA 
any provision of existing law to the contrary notwithstanding. The 
Chairperson-Administrator shall execute the decisions of the 
Board.  
The officers and employees of the ORMINSEZA, including all 
members of the Board, shall not engage directly or indirectly in 
partisan activities nor take part in any election, except to vote. No 
officer or employee of the ORMINSEZA, shall be removed or 
suspended except for cause, as provided by civil service rules and 
regulations.  
SEC. 12. Powers and Duties of the Chairperson-Administrator. – 
The Chairperson-Administrator shall have the following powers 
and duties:  
a)
To direct and manage the affairs of the ORMINSEZA in 
accordance with the policies of the Board;  
b)
To establish the internal organization of the ORMINSEZA 
under such conditions that the Board may prescribe; 
c)
To submit an annual budget and necessary supplemental 
budget to the Board for its approval;  
d)
To submit within thirty (30) days after the close of each 
fiscal year an annual report to the Board and such other 
reports as may be required;  


e)
To submit to the Board for its approval, policies, systems, 
procedures, rules, and regulations that are essential to the 
operation of the Oriental Mindoro Ecozone;  
f)
To recommend to the Board the remuneration and other 
emoluments of its officers and employees in accordance 
with existing laws on compensation and position 
classification;  
g)
To create a mechanism in coordination with relevant 
agencies for the promotion of industrial peace, the 
protection of the environment, and the advancement of the 
quality of life in the Oriental Mindoro Ecozone; and  
h)
To perform such other duties as may be assigned by the 
Board or which are necessary or incidental to the office.  
SEC. 13. Legal Counsel. – The ORMINSEZA shall have its own 
internal legal counsel who shall be under the supervision of the 
Government Corporate Counsel. When the exigencies of business 
and operations demand it, the ORMINSEZA may engage the 
services of an outside counsel either on a case to case or on a 
fixed retainer basis.  
CHAPTER III  
INCENTIVES TO ECOZONE ENTERPRISES AND INVESTORS  
SEC. 14. Investors Visa. – Any foreign national who invests an 
amount of Two hundred thousand US dollars (US$200,000.00) in 
a registered enterprise, either in cash or equipment, shall be 
entitled to an investor's visa: Provided, That the foreign national 
has the following qualifications:  
a)
Must be at least eighteen (18) years of age;  
b)
Must not have been convicted by final judgment of a crime 
involving moral turpitude;  
c)
Must not be afflicted with any dangerous or contagious 
disease;  


d)
Must not have been confined in an institution for any 
mental disorder or disability; and  
e)
Must be financially capable as borne out by credible and 
verifiable evidence.  
With an investor's visa, an alien shall be entitled to reside in the 
Philippines while the investment subsists. The alien investor 
shall submit an annual report, in the form duly prescribed for the 
purpose, to prove that the investment in the country subsists. 
Should said alien investor withdraw the investments from the 
Philippines, then the investor's visa issued to said alien shall 
automatically expire and be withdrawn.  
The authority to issue visas and work permits shall remain with 
the Bureau of Immigration (BI) and the Department of Labor and 
Employment (DOLE), respectively: Provided, That the BI and the 
DOLE shall implement measures to expedite the processing of 
such visas and permits for workers in the Oriental Mindoro 
Ecozone and coordinate closely with the ORMINSEZA to facilitate 
the conduct of business operations.  
SEC. 15. Fiscal Incentives. – Registered enterprises of the 
Oriental Mindoro Ecozone may be entitled to pertinent fiscal 
incentives granted under Title XIII (Tax Incentives) of the National 
Internal Revenue Code, as amended.  
SEC. 16. Banking Rules and Regulations. – Banks and financial 
institutions to be established in the Oriental Mindoro Ecozone 
shall be under the supervision of the BSP and subject to existing 
banking laws, rules and regulations.  
SEC. 17. Remittances. – In the case of foreign investments, a 
duly registered entity or enterprise within the Oriental Mindoro 
Ecozone shall have the right to remit earnings from the 
investment in the currency in which the investment was 
originally made and at the exchange rate prevailing at the time of 
remittance, subject to the provisions of Republic Act No. 7653, 
otherwise known as the “New Central Bank Act” as amended.  
CHAPTER IV  
NATIONAL GOVERNMENT AND OTHER ENTITIES  


SEC. 18. Supervision and Control. – For purposes of policy 
direction and coordination, the ORMINSEZA shall be under the 
direct control and supervision of the Office of the President of the 
Philippines.  
SEC. 19. Relationship with Local Government Units. – Except as 
herein provided, the LGUs comprising the Oriental Mindoro 
Ecozone shall retain their basic autonomy and identity. The 
Municipality of Mansalay, Province of Oriental Mindoro, shall 
operate and function in accordance with the framework of the 
Constitution, the Local Government Code of 1991, as amended, 
and this Act.  
In case of any conflict among the ORMINSEZA, the LGUs and the 
national government on matters affecting the Oriental Mindoro 
Ecozone, other than national defense and security matters, the 
decision of the ORMINSEZA shall prevail.  
SEC. 20. Audit. – The Commission on Audit shall appoint a full-
time auditor for the ORMINSEZA AND may assign such number 
of personnel as may be necessary to assist the auditor in the 
performance of the auditor’s functions.  
CHAPTER V  
MISCELLANEOUS  
SEC. 21. Interpretation and Construction. – The powers, 
authorities and functions that are vested in the ORMINSEZA are 
intended to establish national self sufficiency and self-reliance in 
the advancement of and protection of the national integrity, 
enhancement of national security, decentralization of 
governmental functions and authority, and promotion of an 
efficient and effective working relationship among the 
ORMINSEZA, the national government and the LGUs. Any 
interpretation of this Act shall consider such intentions. In the 
event of conflict of interpretation and provided the intentions 
cannot be harmonized, the provisions of this Act shall be 
construed in favor of an interpretation that shall protect national 
security.  
SEC. 22. Applicability Clause. – Insofar as they are consistent 
with the provisions of this Act, the provisions of Sections 30 to 41 
of Republic Act No. 7916, otherwise known as "The Special 


Economic Zone Act of 1995", as amended, shall likewise apply to 
the Oriental Mindoro Ecozone.  
SEC. 23. Implementing Rules and Regulations. – Within sixty (60) 
days from effectivity of this Act, the DTI shall, in coordination 
with the DOF and the National Economic and Development 
Authority, formulate rules and regulations for the effective 
implementation of the provisions of this Act.  
SEC. 24. 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.  
SEC. 25. Repealing Clause. – All laws, executive orders or 
issuances or any part thereof, which are inconsistent herewith, 
are hereby repealed or amended accordingly.  
SEC. 26. Effectivity. – This Act shall take effect fifteen (15) days 
after its publication in the Official Gazette or in a newspaper of 
general circulation.  
Approved,