Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitutional Hills, Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Brit no.2858

EXPLANATORY NOTE

The indispensability of greater private sector participation in development that
has given birth to Republic Act Number 6957, otherwise known as the Build-Operate-
Transfer (BOT) Law, has helped propel the economy to unprecedented levels.
Presumably, this Is the same rationale of the Aquino Administration in vigorously
pursuing the so-called Public-Private Partnership (PPP).

Nearly all capital intensive infrastructure developments, when built, have far-
reaching economic impact. These infrastructure developments are major sources of
viable returns on investment over the short, medium, and the long term, as they are the
product of well-studied project feasibility studies.

Bridges, just like roads, ports, harbors, airports, are vital links connecting one
province or region to another as in the case of the Mindoro-Batangas Nautical Bridge-
Highway Project.

This proposed measure seeks to provide for a way to link the Mindoro Island to
the Province of Batangas Province utilizing a 5-kilometer concrete roadway along Verde
Island as the ground route of a nautical bridge that spans about 3,000 linear meters
from Puerto Galera in Oriental Mindoro to Verde Island and 6,000 linear meters from
Verde Island to Ilijan II in Batangas. It is conceived to operate by way of exacting toll
charges/fees for land vehicles or other road users traversing Verde Island from Mindoro
to Batangas and vice versa.

The other strategy conceived is allowing basic industries or utilities like water,
power, oil, and telecommunication facilities to complement its operational framework to
serve both Mindoro Island and the Batangas Province. These utllities will be under
contract to pay leases, rentals or charges for the use of the nautical bridge-highway.

It is envisioned that if the project is realized, it will trigger a kind of chain reaction
consistent with a larger development plan to boost tourism, cause the mushrooming of
economic or export processing zones, industrial parks, and similar growth points around
MIMAROPA-Batangas growth corridor.

In the light, therefore, of the many plans of government today but hampered by
its limited resources, this proposed bill is timely and urgent as it seeks to tap vast
resources from the private sector to become a more aggressive partner in high-impact
infrastructure development programs.

In view of the foregoing, immediate passage of the*Bill is earnestly sought.

REYNALDO V. UMALI
2" District-Oriental Mindoro



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitutional Hills, Quezon City

SIXTEENTH CONGRESS
First Regular Session

House BILL No. 2808

INTRODUCED BY HON. REYNALDO V. UMALI

AN ACT PROVIDING FOR THE CONSTRUCTION, OPERATION AND MAINTENANCE
OF THE MINDORO-BATANGAS NAUTICAL BRIDGE-HIGHWAY, LINKING
MINDORO ISLAND TO BATANGAS CITY, AND PROVIDING FOR ITS
IMPLEMENTATION UNDER THE PROVISION OF REPUBLIC ACT NO. 6957,
OTHERWISE KNOWN AS THE BUILD-OPERATE-TRASNFER (BOT) LAW

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

SECTION 1. The Project - There is hereby created the “Mindoro-Batangas
Nautical Bridge-Highway” which shall be financed, constructed, operated and
maintained by grantee/offeror/consortium/proponent, under, and by virtue of, Republic
Act No, 6957, otherwise known as the Build-Operate-Transfer (BOT) Law. This nautical
bridge-highway shall link Puerto Galera, Oriental Mindoro to Ilijan II in Batangas City,
passing through the Verde Island.

SEC. 2 Implementing Agency. - The Department of Public Works and
Highways (DPWH) shall be the lead implementing agency of this project.

SEC. 3. Definition of Terms. ~

(a) “Grantee/offeror/consortium/proponent” - the private sector entity
composed
Of business enterprises, in association with a duly-registered banking
Institution, that makes public an offer to finance, construct, operate and
maintain the Mindoro-Batangas Nautical Bridge-Highway contained in the
project prospectus.

(b) “Duly registered banking institution” - any bank duly organized and
registered under and by virtue of Philippines laws.

(©) “Project Prospectus” - a document outlining in detail the project proposal,
its attendant financing scheme and the repayment system in either toll,
rental or any other method. It shall disclose in full the feasibility, viabililty
and bankability of said project and shall provide and disclose the methods,
technologies and construction systems including the full names of the
owners of stockholders of the participating, firms or corporations.



Sec. 4, Terms and Conditions. - The grantee/offeror/consortium/proponent shall
finance, construct, operate and maintain the Mindoro-Batangas nautical bridge-highway
under the following conditions:

a) The nautical bridge-highway shall be built in Puerto Galera, Oriental
Mindoro
to Verde Island on the one end; and from Verde Island to Ilijan II,
Batangas
‘on the other end, in accordance with the final engineering survey and
feasibility study on the project.

b) The nautical bridge-highway shall be designed in consideration of the
potential for agricultural, commercial and other structural uses, as well as
to accommodate such structures that would provide power, water, fuel
pipelines, telecommunication or similar utilities, as may be established
with the linking of the Mindoro Island and Batangas province.

©) Out of the toll fees to be imposed by the grantee/offeror consortium
/proponent, and leases, rentals or concessions from other utilities, ten
percent (10%) of the net proceeds before corporate income tax shall be
allocated to put up all-weather structures along the bridge-highway and to
reforest areas around the Verde Island concrete roadway interconnecting
the two long span bridges;

d) The grantee/offeror consortium/proponent shall be restricted from
securing loans from any Philippine government bank or financial institution
that may be used to financed the project;

e) The toll fees to be charged for use of the nautical bridge-highway shall be
determined by the grantee/offeror consortium/proponent and the toll
Regulatory Board (TRB), in accordance with tollway rules and regulations
under existing laws;

f) The grantee/offeror/consortium/proponent may allow water, power, fuel
pipelines, telecommunications or similar utilities, subject to terms and
conditions such as leases, rentals or concessions, to link their goods and
services commercially utilizing mixed use of the nautical bridge-highway;
and

a) Fifty (50) years after the operation of sald bridge-highway, the grantee
shall transfer the title, operation and maintenance of said nautical bridge-
highway to the national government.

SEC. 5. Inter-Agency Task Force. - An Inter-agency task force shall be
established to evaluate the project based on a criteria that primarily responds to
public benefit, public cost, overall impact to the economy, the environment and
ecological diversity, and rights and cultures of the indigenous peoples in the area.

This inter-agency task force shall be composed of the respective
Secretaries, or their duly-appointed representatives, of the Department of Public
Works and Highways (DPWH), as the lead agency, Department of Environment
and Natural Resources (DENR), National Economic and Development Authority
(NEDA), Department of Trade and Industry (DTI), Department of Energy (DOE),
Department of Interior and Local Government (DILG), and such other
government agencies that the DPWH, as leading agency, may utilize for the
purpose.

SEC. 6. Limitation. - Pursuant to Sec. 4 (d) hereof, no appropriations
shall be made to support the grantee/offeror/consortium/proponent for
undertaking the implementation of this project, except the defray reasonable
administrative expenses for personnel duly appointed to oversee the project.


SEC. 7. Appropriations. - The amount necessary to defray the cost of
undertaking and completing the feasibility study for this project shall be charged
against the current appropriations of the Department of Public Works and
ighways (DPWH).

Thereafter, such sums as may be necessary for the full implementation of
this project shall be included in the annual General Appropriations Act.

SEC. 8. Effectivity Clause. ~ This act shall take effect fifteen (15) days
after its publication in two (2) national newspapers of general circulation. Within
‘one (1) month after the effectivity of this Act, the DPWH is hereby directed to
implement the project.

Approved,