TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 1211
Senate
of il)r 'p 'tar^
25 AUG 19 A9 'A2
RECEIVED 8V-.
Introduced by Senator MARK A. VILLAR
AN ACT
STRENGTHENING THE BASES CONVERSION AND DEVELOPMENT 
AUTHORITY AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7227 OR 
THE "BASES CONVERSION AND DEVELOPMENT ACT OF 1992", AS AMENDED
EXPLANATORY NOTE
In 1992, Congress enacted Republic Act No. 7227 or the "Bases Conversion 
and Development Authority" (BCDA) with the objective of promoting economic 
development affected by the withdrawal of U.S. military forces and in response to the 
need for economic revitalization in these areas, former military bases were 
transformed into commercial and residential developments. The most notable being 
the conversion of the former US military base Fort McKinley (later Fort Bonifacio) into 
the bustling business district of Bonifacio Global City (BGC), in Taguig.
Some of their major accomplishments include the Bonifacio Global District, 
McKinley Hill, Clark International Airport, Newport City, Subic-Clark-Tarlac 
Expressway, and New Clark City. Currently, they are working on transforming the 
Bonifacio Capital District, New Clark City Road Network, Luzon Bypass Infrastructure, 
and the Clark National Food Hub. Likewise, BCDA has been an effective partner in the 
country's infrastructure development plans.
This proposal aims to further optimize BCDA's operational efficiency and to 
support its ambitious projects lined up, thereby expanding the reach of its services. 
Some of these plans include the Clark International Airport Expansion, Clark Central 
Business District, Renewable Energy Facilities, and the Poro Point Seapoint 
Modernization. In order to do so, there is a need to extend the agency's corporate


term, increase its capital and maximize revenue potential. These proposals will provide 
policy stability and increase investor confidence. Investors are more likely to commit 
to significant investments when they are assured that the regulatory and policy 
framework they operate under will remain stable and supportive for the long term.
In view of the foregoing, the passage of this bill is earnestly sought.
MARK A. VILLAR


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE 
S. No. 1211
Senate
of 11)1’ t’.'iv.'tcup
25 AUG 19 A9-42
RECEIVtD BY:
Introduced by Senator MARK A. VILLAR
AN ACT
STRENGTHENING THE BASES CONVERSION AND DEVELOPMENT 
AUTHORITY AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7227 OR 
THE "BASES CONVERSION AND DEVELOPMENT ACT OF 1992", AS AMENDED
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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Section 1. Section 3 of Republic Act No. 7227 otherwise known as the "Bases
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and Conversion and Development Act of 1992", as amended, is hereby further
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amended to read as follows:
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"SEC. 3. Creation of the Bases Conversion and Development Authority.
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- There is hereby created a body corporate to be known as the Bases
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Conversion and Development Authority, hereinafter referred to as the
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conversion authority, which shall have the attribute of perpetual
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succession and shall be vested with the powers of a corporation.
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It shall be organized within thirty (30) days after the approval of
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this Act. It shall have a term of fifty (50) years from its organization,
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WHICH SHALL BE EXTENDED FOR ANOTHER THIRTY (30)
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YEARS UPON THE EXPIRATION OF ITS ORIGINAL TERM:
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Provided, That Congress, [by joint resolution], may dissolve the
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Conversion Authority whenever in its judgment the primary purpose for
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its creation has been accomplished. It shall establish its principal office
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in Metropolitan Manila unless otherwise provided by the Conversion
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Authority and may put up such branches as may be necessary."
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Sec. 2. Section 6 of Republic Act No. 7227, as amended, is hereby amended to
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read as follows:
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"SEC. 6. Capitalization. - The Conversion Authority shall have an
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authorized capital of [One hundfcd-billion pesos (P100,000,000,000)]
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TWO HUNDRED BILLION PESOS (200,000,000,000.00) which
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may be fully subscribed by the Republic of the Philippines and shall
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either be paid up from the proceeds of the sales of its land assets as
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provided for in Section 8 of this Act or by transferring to the Conversion
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Authority properties valued in such amount.
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An initial operating capital in the amount of seventy million pesos
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(P70,000,000) is hereby authorized to be appropriated out of any funds
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in the National Treasury not otherwise appropriated which shall be
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covered by preferred shares of the Conversion Authority retireable
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within two (2) years."
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Sec. 3. A new section designated as Section 18 is hereby inserted after Section
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17 of RA 7227, as amended, and the succeeding sections are renumbered
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accordingly. The new Section 18 shall read as follows:
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"SEC. 18. DECLARA TION OF PORTIONS OF SPECIAL ECONOMIC AND
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FREEPORT ZONES AS ALIENABLE AND DISPOSABLE. - TEN PERCENT
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(10%) OF THE TOTAL LAND AREA OF EACH OF THE FOLLOWING
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SPECIAL ECONOMIC AND FREEPORT ZONES, AS IDENTIFIED IN
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THEIR RESPECTIVE MASTER DEVELOPMENT PLANS, ARE HEREBY
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DECLARED AS ALIENABLE AND DISPOSABLE UPON APPROVAL OF THE
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DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES (DENR):
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(A) CLARK SPECIAL ECONOMIC ZONE (CSEZ), INCLUDING NEW
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CLARK CITY, AND CLARK FREEPORT ZONE (CFZ) CREATED PURSUANT
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TO PROCLAMATION NO. 163, SERIES OF 1993, AS AMENDED, AND IN
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RELATION TO REPUBLIC ACT NO. 9400;
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(B) PORO POINT FREEPORT ZONE (PPFZ) CREATED PURSUANT
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TO PROCLAMATION NO. 216, SERIES OF 1993, AS AMENDED;
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(C) BATAAN TECHNOLOGY PARK (BTP), FORMERLY KNOWN AS
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THE PHILIPPINE REFUGEE PROCESSING CENTER COMPLEX (PRPCC)
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WITHIN THE MORONG SPECIAL ECONOMIC ZONE (MSEZ) CREATED
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PURSUANT TO PROCLAMATION NO. 984, SERIES OF 1997; AND


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(D) JOHN HAY SPECIAL ECONOMIC ZONE (JHSEZ) PURSUANT 
TO PROCLAMATION NO. 420, SERIES OF 1994, AS AMENDED:
PROVIDED, THAT THE IDENTIFIED PORTIONS OF THE 
ENUMERATED SPECIAL ECONOMIC AND FREEPORT ZONES SHALL BE 
ALLOCATED AS FOLLOWS:
(A) 
FIVE PERCENT (5%) FOR RESIDENTIAL AND 
RESIDENTIAL/MIXED-USE PURPOSES; AND
(B) 
FIVE PERCENT (5%) FOR INSTITUTIONAL AND 
INDUSTRIAL PURPOSES, CONSISTENT WITH THE PRIORITY 
PROJECTS AND PLANS OF THE GOVERNMENT:
PROVIDED, FURTHER, THAT THE PRESIDENT, CONSIDERING 
THE MARKET DEMAND AND ECONOMIC CONDITIONS, MAY DECLARE 
AN ADDITIONAL AREA NOT EXCEEDING FIVE PERCENT (5%) OF THE 
TOTAL LAND AREA OF EACH OF THE ENUMERATED SPECIAL 
ECONOMIC AND FREEPORT ZONES AS ALIENABLE AND DISPOSABLE 
TO BE ALLOCATED FOR RESIDENTIAL, RESIDENTIAL/MIXED-USE, 
INSTITUTIONAL, AND INDUSTRIAL PURPOSES.
THE CONVERSION AUTHORITY, AS ADMINISTRATOR OF THE 
HEREIN ENUMERATED SPECIAL ECONOMIC AND FREEPORT ZONES, 
IS AUTHORIZED TO SELL THE LANDS IN THE IMMEDIATELY 
PRECEDING PARAGRAPHS, SUBJECT TO THE APPROVAL OF THE 
PRESIDENT OF THE PHILIPPINES: PROVIDED, THAT NO SALE OF 
SUCH LANDS SHALL BE UNDERTAKEN UNTIL A MASTER 
DEVELOPMENT PLAN AND A STRATEGIC DISPOSITION PLAN ARE 
APPROVED BY THE BOARD OF DIRECTORS OF THE CONVERSION 
AUTHORITY. EXISTING LEASE CONTRACTS IN THE COVERED AREAS 
SHALL BE PROTECTED AND RESPECTED IN ACCORDANCE WITH 
EXISTING LAWS.
THE APPROVED MASTER DEVELOPMENT PLAN AND STRATEGIC 
DISPOSITION PLAN SHALL BE THE BASIS FOR ANY SALE OR 
DISPOSITION OF LANDS IN ACCORDANCE WITH THIS SECTION. THE 
CONVERSION AUTHORITY SHALL SUBMIT A COPY OF THE MASTER


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DEVELOPMENT PLAN TO THE PRESIDENT OF THE PHILIPPINES AND
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BOTH HOUSES OF CONGRESS WITHIN THIRTY (30) DAYS FROM
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APPROVAL THEREOF.
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THE PROCEEDS FROM THE SALE SHALL BE REMITTED BY THE
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AUTHORITY TO THE BUREAU OF TREASURY TO BE UTILIZED AS FAR
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AS POSSIBLE TO FINANCE THE DEVELOPMENT OF INFRASTRUCTURE
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PROJECTS IN THE ABOVE-MENTIONED SPECIAL ECONOMIC AND
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FREEPORT ZONES: PROVIDED, THAT EVERY THREE (3) YEARS, THE
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CONVERSION AUTHORITY SHALL SUBMIT TO THE OFFICE OF THE
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PRESIDENT PERIODIC UPDATES ON THE DISPOSITION OF
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RESIDENTIAL, RESIDENTIAL/MIXED-USE, INSTITUTIONAL, AND
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INDUSTRIAL LANDS, AND THE UTILIZATION OF THE PROCEEDS
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FROM THE SALE THEREOF."
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Sec. 4. Nothing in this Act shall be construed as transferring existing military
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bases under the jurisdiction of the Department of National Defense and/or Armed
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Forces of the Philippines to the Conversion Authority.
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Sec. 5. Implementing Rules and Regulations. - The Conversion Authority, in
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consultation with the appropriate agencies, shall promulgate the rules and regulations
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necessary for the effective implementation of this Act within ninety (90) days from
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its effectivity.
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Sec. 6. Separability Clause. If any provision of this Act is declared
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unconstitutional, the remainder thereof not otherwise affected shall remain in full
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force and effect.
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Sec. 7. Repealing Clause. All laws, presidential decrees, executive orders,
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letters of instruction, proclamations, and administrative regulations that are
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inconsistent with the provisions of this Act are hereby repealed, amended, or modified
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accordingly.
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Sec. 8. Effectivity Clause. This Act shall take effect after fifteen (15) days
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following the completion of its publication in the Official Gazette or any newspaper of
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general circulation.
Approved,