Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 7381
Introduced by: “KUYA” JOSE ANTONIO R. SY-ALVARADO
EXPLANATORY NOTE

The State is mandated by the 1987 Constitution to provide business opportunities and
create jobs for the promotion of economic development of the Philippines. The State, by building
infrastructure programs and maximizing the use of those already existing and operational will
help achieve economic growth.

The proper integration and utilization of the interconnecting infrastructures such as
railways in Luzon; seaports in Subic, Mariveles, Aurora, and Manila and airports and when use
productively by Special Economic Zones will definitely make a huge impact in the development
of agriculture, tourism, industry, transportation of goods and other proprietary activities. These
business activities will create different job and industrial opportunities that will alleviate the
poverty condition of our fellow countrymen.

The creation of Bulacan Economic zone will not only boost economic progress by
granting tax incentives and privileges to investors but also decongest population and heavy road
traffic and distribute the concentration of business activities from the Metro Manila Area to
Central Luzon.

‘The State must provide infrastructure programs and create Special Economic Zone in
Central Luzon in order to utilize effectively the infrastructures already existing and operational
in other areas. This measure will not only decongest the business activities in the metro but also
create job opportunities for the people.

In consideration of the foregoing premises, the passage of the bill is urgently sought.

'YA” JOSE ANTONIO R. SY-ALVARADO
Representative
First District of Bulacan


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

7381

HOUSE BILL NO.
Introduced by: “KUYA” JOSE ANTONIO R. SY-ALVARADO

AN ACT
CREATING THE REGIONAL INVESTMENT AND INFRASTRUCTURE
CORPORATION OF CENTRAL LUZON TO FACILITATE THE CREATION OF THE
CENTRAL LUZON INVESTMENT CORRIDOR, AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. - This Act shall be known as the “Regional Investment and
Infrastructure Corporation of Central Luzon.”

Sec. 2. Policy. - It is hereby declared the policy of the state to promote entrepreneurship,
investments, infrastructures, and encourage the creation of jobs and business opportunities
primarily in Central Luzon and the Special Economic Zones created thereby, through
strengthening and expanding the Bases Conversion Development Authority (BCDA), the Subic
Bay Metropolitan Authority (SBMA), the Clark Development Corporation (CDC), the Aurora
Pacific Economic Zone and Freeport Authority (APECO), the Authority of the Freeport Area of
Bataan (FAB), and other Special Economic Zones, thereafter established, in Central Luzon to
optimize the interconnecting highways, railway, seaports and airports in Central Luzon and the
creation of special economic zone in the province of Bulacan.

Sec. 3. Purposes. - This Act shall have the following purposes:

(a) To promote entrepreneurship by generating investments therefore creating
numerous jobs and business opportunities for the people,

(b) To optimize the connecting highways and railway in Central Luzon; seaports
in Subic, Mariveles, Aurora, and Manila; and airports in Subic, Clark, and Manila to
serve as an investment corridor for Central Luzon and eventually, the whole country;

(c) To establish special economic zone in the province of Bulacan and provide
incentives therefor by maximizing the creation of infrastructures resulting in numerous
employment opportunities for the people in the province of Bulacan;,

(d) To develop enterprise initiatives, encourage free trade, and foster national and
local pride in the Local Government Units (LGU) and private sectors as collective
stakeholders and pioneers for change in the development and integration of the Subic Bay
Freeport Zone (SBFZ), the Clark Freeport Zone (CFZ), the Freeport Area of Bataan
(FAB), the Aurora Pacific Economic Zone and Freeport (APECO) and other Special
Economic Zones by adhering to the principle of global competitiveness that encourage
business investments that are focused, fast, friendly, flexible, and forward-looking
through the provision of tax and fiscal incentives to private sectors who relocate to the
said areas. Furthermore, by providing additional benefits if the private sector involved
initiates to build schools and universities, hospitals, and local groceries within the area;

(e) To decongest Metro Manila by dispersing industries and populations to the
Subic Bay Freeport Zone (SBFZ), the Clark Freeport Zone (CFZ), the Freeport Area of
Bataan (FAB), the Aurora Pacific Economic Zone and Freeport (APECO) and other


Special Economic Zones which will improve the quality of life by developing sustainable
communities where residents live nearby where they work and where institutions such as
schools and universities, hospitals, utilities, among others are within close proximity:

(£) To lessen dependency on the national government and in the end, make the
Local Government Units (LGU), the Bases Conversion and Development Authority, the
Subic Bay Metropolitan Authority, the Clark Development Corporation, the Clark
International Airport Corporation (CIAC), the Aurora Province Economic Zone and
Freeport (APECO), the Freeport Area of Bataan (FAB), and other subsidiaries self-
sustaining, income-generating, and revenue-contributing entities provided the LGUs
concerned may actively join subject to their compliance with the Rules and Regulations
which will thereafter be established;

(g) To create sustainable industrial cities and communities that balances economic
growth and expansion having regard to environmental protection and preservation taking
into consideration the safe, orderly, convenient, and livable urban space for the people
living within their areas of employment, thereby decongesting Metro Manila; and

(h) To prompt the Local Government Unit (LGU) concerned to provide public
and private financing to the private sectors who wish to relocate within the specified
areas to stimulate pump-priming of investments with the end view of providing a better
quality of life to all Filipinos.

Sec. 4. Regional Investment and Infrastructure Corporation- There is hereby created a
Regional Investment and Infrastructure Corporation of Central Luzon, hereinafter referred to as
“RIIC”, to be composed of nineteen (19) members, to include:

(i) The Chairman of the Bases Conversion and Development Authority,

(ii) The Chairman of the Subic Bay Metropolitan Authority;

(iii) The Chairman of the Clark Development Corporation,

(iv) The Chairman of the Aurora Province Economic Zone and Freeport

(v) The Chairman of the Authority of the Freeport Area of Bataan,

(vi) The Provincial Governors of the Provinces of Aurora, Tarlac, Zambales,
Bataan, Pampanga, Nueva Ecija, and Bulacan,

(vii) The Chairman of the Metro Manila Development Authority,

(viii) The Director General of Philippine Economic Zone Authority,

(ix) Chief Operating Officer of the Tourism Infrastructure and Enterprise Zone
Authority and

(x) four (4) members from the private sector, appointed by the President of the
Philippines. The Chairman of the RIC shall be appointed by the President of the
Philippines, chosen among the nineteen (19) RIIC members

Sec. 5. Powers and Functions. - The RIIC shall be vested with the following powers and
functions:

(a) To encourage all cities and municipalities within the Central Luzon to each
prepare, adopt, and implement a comprehensive and detailed master plan, which includes
zoning and urban planning, in consultation and coordination with the appropriate national
agencies and the local government units, for the sound and balanced development of the
zones, to promote the economic and social development of the local communities in
particular and the country in general;

(b) To initiate and coordinate all development and infrastructure projects linking
the seaports and airports to the Special Economic Zones and Tourism Enterprise Zones
within the area; Provided, that when necessary, the RIIC shall likewise handle the
bidding of the projects under the unsolicited build-operate-transfer or build-operate-own
schemes, or through solicited bids under applicable government procurement laws and/or
the rules promulgated by the National Economic Development Authority (NEDA);

(c) To grant and administer all fiscal and non-fiscal incentives available under the
Foreign Investments Law, the Omnibus Investments Code, the Philippine Economic Zone
Act of 1995, and the Bases Conversion and Development Act of 1992;


(d) To coordinate and assist existing Special Economic Zones created and/or
licensed through the Philippine Economic Zone Authority (PEZA) and the Tourism
Infrastructure and Enterprise Zone Authority (TIEZA);

(©) To have the authority to approve submitted applications of private sectors, by
local and foreign investors for the establishment of investments and infrastructures within
the Special Economic Zones;

(£) To accept any local or foreign investment, business or enterprise. Provided, it
does not infringe the provisions of the 1987 Constitution;

(g) To prioritize the creation of jobs;

(h) To encourage earnest efforts and conciliation proceedings in case of labor
disputes where abuses of the management and/or labor will be discouraged and dealt with
expeditiously and fairly:

(i) To generate its own revenues and be self-sustaining;

(j) To invest its funds and other assets, as it may deem proper, to achieve its 38
purpose;

(k) To construct, acquire, own, lease, operate, and maintain on its own or through
contract, franchise, license permit, public-private partnership, build-operate-transfer or
joint-venture the required utilities and infrastructure facilities, including additional roads,
bridges, airports, seaport, railroads, subways, and to fix just and reasonable rates, fares,
charges and other prices therefor;

(1) To create, develop, manage, promote, and operate Special Economic Zones
within Central Luzon and other development programs and projects connected therewith:

(m) In coordination with the Department of Agrarian Reform (DAR), to organize
farmers into cooperatives and to merge them into one contiguous area to partner with
local and foreign investors for the establishment of agro-industrial, agro-processing and
agro-tourism zones, and to grant incentives thereto;

(n) To raise and borrow the necessary funds from local and international financial
institutions and to issue bonds, promissory notes and other securities for that purpose and
to secure the same by guarantee, pledge, mortgage, deed of trust or assignment of
properties:

(0) To establish subsidiaries and serve as holding company of such subsidiaries

(p) To enter into, make, perform and carry out contracts of every class, kind, and
description which are necessary or incidental to the realization of this Act with any
person, firm or corporation, private or public, or with foreign government entities, upon
prior approval by higher government offices, when required and necessary ;

(q) To exercise the right of eminent domain;

(r) To adopt, implement and enforce ecological and environmental standards and
measures for environmental pollution control and management;

(s) To provide, establish and accredit security and firefighting forces, and
formulate and implement public safety measures to ensure the safety and preservation of
peace and order within the area;

(t) To establish by itself or in coordination with national and local government
agencies “One-stop Shops” for investors that promote focused, fast, friendly, flexible,
and forward-looking businesses and investments; and

(u) To promulgate Rules and Regulations and perform such other powers and
functions as may be necessary, appropriate, or incidental to this Act.

Sec. 6. Supervision. - The RIIC shall be under the general supervision of the Office of the
President of the Philippines; Provided, that the following agencies shall be mandated to
coordinate with the RIIC with minimum red tape to allow the latter to undertake and implement
its mandate by virtue of this Act, related laws, and its rules and regulations, to wit:

(i) The Department of Trade and Industry (DTI),

(ii) The Department of Foreign Affairs (DFA),

(iii) The Department of Finance (DOF),

(iv) The Department of Transportation (DOTr),

(v) The Department of Environment and Natural Resources (DENR),
(vi) The Department of Tourism (DOT),


(vii) The Department of Public Works and Highways (DPWH),
(viii) The Department of Labor and Employment (DOLE),

(ix) The Department of Energy (DOE),

(x) The Department of Information and Communications Technology (DICT),
(xi) The Bureau of Immigration (BI),

(xii) The Department of Health - Food and Drug Administration (DOH FDA),
(xiii) The Bureau of Internal Revenue (BIR),

(xiv) The Bureau of Customs (BOC),

(xv) The Securities and Exchange Commission (SEC),

(xvi) The Department of Energy (DOE); the

(xvii) Energy Regulatory Commission (ERC), the

(xviii) The Philippine Economic Zone Authority (PEZA), and

(xix) The Tourism Infrastructure and Enterprise Zone Authority (TIEZA).

Sec. 7. Executive Director. - An Executive Director shall be appointed by the President of
the Philippines, which shall be chosen from among three (3) recommended independent
individuals, through a majority vote of the RIC. Provided that, the recommended individuals
chosen by the RIIC shall have at least five (5) years of work experience in finance administration
or management. The Executive Director shall have the following powers and functions:

(a) To assist in the administration and management of the RIC;

(b)To assist in the development and improvement of the Central Luzon
Investment Corridor Master Plan;

(©) To promote trade, tourism, and agriculture enterprises within the Special
Economic Zones, so as to encourage more investments;

(d) To ensure that Rules and Regulations established by the RIIC are enforced and
implemented;

(@)To resolve primary dispute settlements and resolutions within the Special
Economic Zones, including labor disputes, in order to address local disputes and prevent
strikes or lockouts;

(f) To encourage the Local Government Units (LGU) to provide incentives to
private sectors and entities who decide to relocate from Metro Manila to the Special
Economic Zones under the RIC; and

(g) To guarantee that safety and security measures are properly maintained within
the Special Economic Zones.

Sec, 8, Central Luzon Investment Corridor Master Plan- Immediately upon the creation
of the RIIC, coordination shall be made by all its members to arrive at a consensus to develop the
Central Luzon Investment Corridor Master Plan (Plan) through the active participation of all
stakeholders in planning and implementing the creation and continuous operation of an
aggregation of special economic zones within the area that utilizes the Central Luzon Investment
Corridor. The Plan shall include the provision of Housing Facilities within the Special Economic
Zones to provide a comfortable and livable home and community where the workers and their
families may live in houses easily accessible by non-motorized means of transportation. The Plan
shall be signed by the RIIC and all participating stakeholders, which shall contain a long-term
strategy and their concomitant commitment to implement the same. The Plan shall not be subject
to frequent policy changes unless for key changes essential to further improve the productivity
within the area.

Sec. 9. Responsibilities of Partners/Stakeholders.- The Plan shall be formulated and
implemented by the key stakeholders from the national government, local government and
private enterprise. Both the national and local governments concerned shall have the general
responsibility to provide ease of doing business by cutting the streamlining of bureaucratic
processes for investors and providing a “One-stop Shop” for the processing of licenses. They
shall also have the general responsibility to provide fiscal incentives to encourage investors to
maximize the Central Luzon Investment Corridor. In particular:

(a) The National Government


(i) The Department of Trade and Industry (DTI) shall streamline the
registration of businesses and promotion of the Central Luzon Investment
Corridor to local and foreign enterprises. It shall formulate measures that will
enable small and medium enterprises to avail themselves of the privileges
available to large enterprises;

(ii) The Department of Foreign Affairs (DFA), in coordination with the
Department of Trade and Industry (DTI), shall conduct international trade fairs
and such other international promotional events aiming at attracting foreign
investors to the Subic Bay Freeport Zone (SBFZ), the Clark Freeport Zone (CFZ),
the Freeport Area of Bataan (FAB), the Aurora Pacific Economic Zone and
Freeport (APECO) and other Special Economic Zones, thereafter established;

(iii) The Department of Finance (DOF), the Bureau of Internal Revenue
(BIR) and the Bureau of Customs (BOC) shall provide for fiscal incentives that
will induce and motivate the dispersal of industries to the specified economic
zones of the Central Luzon Investment Corridor,

(iv) The Department of Transportation (DOTr) shall ensure seamless and
integrated transportation networks that provide fast, efficient, and reliable
transportation for cargo and passengers throughout the stretch 38 of the Central
Luzon Investment Corridor;

(v) The Department of Environment and Natural Resources (DENR) shall
provide for the land and shall facilitate its conversion whenever necessary
pursuant to the Central Luzon Investment Corridor Master Plan. It shall monitor
and ensure compliance to rules and regulations on environmental protection;

(vi) The Department of Tourism (DOT), in coordination with the Tourism
Infrastructure and Enterprise Zone Authority (TIEZA), shall be responsible for
developing and promoting the potential of the area for tourism and shall ensure
the creation of numerous jobs by facilitating the establishment of a tourism
industry within the area. It shall also conduct local and international promotional
campaigns necessary to achieve the said goal;

(vii) The Department of Public Works and Highways (DPWH) shall, in
coordination with other Departments, ensure that adequate infrastructures for the
growth of the area are built and existing ones properly maintained;

(viii) The Department of Labor and Employment (DOLE) shall ensure that
full protection to labor and the promotion of full employment and equal
employment opportunities for all shall be safeguarded;

(ix) The Department of Energy (DOE) and the Energy Regulatory
Commission (ERC) shall ensure that adequate supply of electricity at all times
and in a reasonable price is always available for the use of the specified Special
Economic Zones and their established industrial cities and communities;

(x) The Department of Information and Communications Technology
(DICT) shall ensure that fast and reliable telecommunications and internet access
are easily available within the area at a reasonable rate;

(xi) The Department of Agrarian Reform (DAR) shall ensure and assist in
the formation of farmer's cooperatives and groups that can partner with local and
foreign investors for the establishment of productive agro industrial, agro-
processing and agro-tourism zones within the Central Luzon Investment Corridor,

(xii) The Department of Agriculture (DA) shall also ensure and assist in
establishing a market for the high value crops that will be produced in agro-
industrial, agro-processing and agro-tourism zones;

(xiii) The Department of Health - Food and Drug Administration (DOH-
FDA) shall set the mandatory food safety standards to protect the consumers by
ensuring that the standard on food and medical products are properly regulated by
appropriate regulatory authorities and that precautionary measures are adopted;

(xiv) The Bureau of Immigration (BI) shall ensure that there is a fast,
efficient and speedy processing of visas, alien employment permits and such other



permits that will enable foreign investors and legitimate expatriates to work at the
Special Economic Zones;

(xv) The Securities and Exchange Commission (SEC) shall provide for the
expeditious registration and licensing of corporations within the area with
streamlined processes and requirements. Furthermore, the said Departments
and/or Agencies may provide their own Plan to bring in more investments and to
be able to promote it in foreign nations to increase investments within the Special
Economic Zones under the RIIC, so long as it is in accordance with the Central
Luzon Investment Corridor Master Plan, as described in Section 8 of this Act

(b) The Local Government Units (LGU) shall be responsible for providing the zoning and
the comprehensive land use plan for the area. It shall assist in the identification and conversion
of lands for the zone and shall provide investment incentives to the locators through local tax
incentives and streamlining of processing of business permits. It shall also ensure peace and
order within the area and shall coordinate with the National Housing Authority (NHA) for the
housing of workers. It shall coordinate with the Philippine Economic Zone Authority (PEZA),
the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), and other government
agencies to ensure the continuous growth and stability of the Special Economic Zones.
Moreover, the LGUs, within the Central Luzon Investment Corridor, shall ensure that all
highways, railways, airports, and seaports are in good condition and are properly maintained by
the respective LGUs concerned. The LGUs shall be encouraged to construct low-cost
condominium buildings within the Special Economic Zones to provide housing facilities to the
workers and their families to provide them with a comfortable and liable work-life balance, at the
same time decongesting Metro Manila and improving its traffic condition. Moreover, LGUs shall
be urged to enable the workers within the Special Economic Zones to be given accessible
personal loans with low interest rates, as may be determined by the Monetary Board.

(c) The Philippine Economic Zone Authority (PEZA) shall assist with the creation of
Special Economic Zones and shall provide such services and incentives to locators and investors
necessary to ensure the viability of the Special Economic Zones within its powers, as provided
by R.A. No. 7916 as amended by R.A. No. 8748. It shall further assist in the creation of new
Special Economic Zones within the area.

(d) The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) shall assist with
the creation of Tourism Enterprise Zones along the Central Luzon Investment Corridor and shall
provide such incentives which it can provide in accordance with its powers under R.A. No. 9593

(e) The Bases Conversion Development Authority (BCDA), the Subic Bay Metropolitan
Authority (SBMA), the Clark Development Corporation (CDC), the Authority of the Freeport
Area of Bataan (FAB), the Aurora Pacific Economic Zone and Freeport (APECO) and other
Special Economic Zones, thereafter established, shall coordinate with RIIC and the rest of the
stakeholders in the planning and implementation of the Central Luzon Investment Corridor
Master Plan. It shall promote the Central Luzon
Investment Corridor to local and international investors/locators, provide standards for doing
business within their respective Special Economic Zones, and become pro-active in improving
its facilities to attract more foreign investors by providing incentives and streamlined processing
of documents to its locators and foreign investors.

(£) Private Enterprises shall be responsible for providing investments and infrastructures
within the Central Luzon Investment Corridor which shall observe international best practices in
their industrial operations while at the same complying with all national and local Rules and
Regulations including those intended for environmental preservation and protection, and
protection to labor legislations. Moreover, private enterprises may also propose their own Plan,
so long as it is in accordance with the Central Luzon Investment Corridor Master Plan, as
described in Section 8 of this Act.


Sec. 10. Establishment of RIIC-Registered Agro-Industrial and Agro-Processing Ecozone
Export Enterprises and Agro-Industrial, Agro-Processing and Agro-Tourism Ecozone
Enterprises. - The RIIC, upon registration, may allow the establishment of Agro-Industrial and
Agro-Processing Ecozone Export Enterprises and Agro-Industrial, Agro-Processing and Agro-
Tourism Ecozone Enterprises within the Special Economic Zones that are located in areas
identified by the Department of Agriculture (DA), the Department of Agrarian Reform (DAR)
and/or the Bureau of Fisheries and Aquatic Resources (BFAR), which are suitable for the
processing of agricultural and aquatic products, consistent with the Agriculture and Fisheries
Modernization Act. The Agro-Industrial and Agro-Processing Ecozone Export Enterprises and
Agro-Industrial, Agro-Processing and Agro-Tourism Ecozone Enterprises shall be engaged in
the following types of activities:

(a) Import-substituting commercial production and processing of agricultural crops for
bio-fuel (such as but not limited to coconut, jathropa, sugarcane, cassava, cor, and sweet
sorghum):

(b) Processing/Manufacturing, including packing and canning, for export of agricultural
and marine products (livestock and poultry, fruits and vegetables, aqua-culture products):

(c) Integrated livestock, poultry and related projects involving primary production up to
processing and export of final product:

(d) Production of agricultural inputs such as feeds, veterinary drugs, and vaccines,
fertilizers, and agri-chemicals for export:

(e) Planting and operation of vineyards and winereies:

(f) Projects involving the processing of agricultural waste materials into a commercially
valuable product for export:

(g) Bio-technology products using agricultural products as inputs or to be used inputs for
agricultural production: and

(h) Agro-tourism zones such as fruit orchards, plantations, vineyards and wineries, man-
made lakes for fishing, without or without the establishment of hotels, resorts, entertainment,
sports and recreational facilities and similar leisure facilities. The RIIC-Registered Agro-
Industrial and Agro-Processing Ecozone Export Enterprises and Agro-Industrial, Agro-
Processing and Agro-Tourism Ecozone Enterprises shall be entitled to the following incentives.

(a) Four (4) years Income Tax Holiday (ITH):

(b) Special five percent (5%) tax on gross income in lieu of all national and local
taxes after the ITH period:

(c) Tax and duty free importation of production equipment and machineries,
breeding stocks, farm implements, including spare parts and supplies of the equipment
and machineries:

(d) Exemption from export taxes, wharfage dues, impost and fees:

(e) Exemption of payment of local government fees such as Mayor's Permit,
Business Permit, Permit on the Exercise of Profession/Occupation/Calling, Health
Certificate Fee, Sanitary Inspection Fee, and Garbage Fee:

(f) Zero Value Added Tax (VAT) rate on local purchases to include
telecommunication, power, and water bills:

(g) Special Investor’s Visa:

(h) Employment of foreign nationals: and

(i) Simplified import and export procedures.

Sec. 11. Income Tax Holiday. - An Income Tax Holiday (ITH) may be administered by
the RIIC to the Registered Entities operating within the Special Economic Zones in the Central
Luzon Investment Corridor, An ITH of one hundred percent (100%) from corporate income tax
for the first five (5) years from its operations, may be granted to any registered entity operating
within the Special Economic Zone if the said registered entity constructs housing and
recreational facilities within their respective Special Economic Zones so as to provide its
workers with a comfortable and livable life which is within their place of occupation. Moreover,
an ITH for the first ten (10) years from its operations, may be granted to a registered entity if it
constructs a housing and recreational facility within their Special Economic Zones and construct


either a school, hospital or clinic, and places of worship for employees and/or the immediate
community, and the like. Upon expiry of the ITH, a five percent (5%) final tax on gross income
earned in lieu of all national and local taxes shall be applied and distributed as follows;

(a) Three percent (3%) to the RIC;

(b) One percent (1%) shall be directly remitted by the business establishments to
the treasurer’s office of the municipality or city where the enterprise is located; and

(c) One percent (1%) shall be directly remitted by the business establishments to
‘the National Government through the Bureau of Internal Revenue (BIR). The BIR shall
require a registered enterprise availing of the ITH to secure a Certificate of Eligibility
from the RIIC before submitting its income tax return (ITR) with the BIR for validation.
Failure to secure the Certification and/or to file the ITH availment for validation within
thirty (30) days from the last day of each statutory filing date for the ITR shall cause the
forfeiture of the ITH availment for the taxable period. For this purpose, a “Registered
Entity” shall be defined as any person, natural or juridical, licensed to do business in the
Philippines and registered with the Regional Investment and Infrastructure Corporation
(RIIC) to transact business within the Subic Bay Freeport Zone (SBFZ), the Clark
Freeport Zone (CFZ), the Freeport Area of Bataan (FAB), the Aurora Pacific Economic
Zone and Freeport (APECO) and other Special Economic Zones which may thereafter be
established within the Central Luzon. Furthermore, “Gross Income Earned’ refers to
gross sales or gross revenues derived from the registered activity, net of sales discounts,
sales returns and allowances and minus cost of sales or direct costs but before any
deduction is made for administrative expenses or incidental losses during a given taxable
period. Existing entities or enterprises located in Metro Manila but relocate to the Special
Economic Zones within the Central Luzon Investment Corridor may avail of the tax and
fiscal incentives available herein upon the following conditions: (i) at least fifty percent
(50%) of products manufactured are exported to other countries, and (ii) they relocate
their employees to the new location and construct decent housing facilities with clean
water and sewerage systems for them; Provided, that, these businesses and industries that
relocate to the Central Luzon Investment Corridor pursuant to this Section may likewise
deduct from their gross revenues for tax purposes, the equivalent of one hundred percent
(100%) of their relocation costs which may include, but not be limited to, construction of
industrial and/or administrative buildings, purchase of equipment and machinery,
construction of private and public infrastructure, housing and recreational facilities,
schools, hospitals and clinics and places of worship for employees and/or the immediate
community, and the like. Provided that, the RIIC may automatically revoke the license of
any Registered Entity who violates any of the RIIC Rules and Regulations, submits false
documents, and declares any false material information inconnection with its application,
as determined by the RIC and upon substantial proof of such violation.

Sec, 12, One-Stop Shop Center. - The RIIC shall establish a “One-stop Shop” center for
the purpose of facilitating the registration of new enterprises in the Special Economic Zones.
Thus, all appropriate government agencies that are involved in registering, licensing, or issuing
permits to investors shall assign their representatives to the Zones to attend to Investor’s
requirements. For this purpose, a “One-Stop Shop" Center refers to a center established by the
RIIC where a single common site or location is designated for all concerned agencies in the
registration, licensure, and issuance of permits to investors who wish to be registered within the
Special Economic Zones.

Sec. 13. Eminent Domain. - The areas comprising the Special Economic Zones may be
expanded or reduced when necessary. For this purpose, the RIC shall have the power to acquire,
either by purchase, negotiation or condemnation proceedings, any private lands within or
adjacent to the Zones for:

(a) Consolidation of lands for zone development purposes;
(b) Acquisition of right of way to the Zones; and


(c) The protection of watershed areas and natural assets valuable to the prosperity
of the Zones. If in the establishment of a publicly-owned Special Economic Zone, any
person or group of persons who has been occupying a parcel of land within the Zone has
to be evicted, the RIIC shall provide the person or group of persons concerned with
proper disturbance compensation: Provided that, in the case of displaced agrarian reform
beneficiaries, they shall be entitled to the benefits under the Comprehensive Agrarian
Reform Law, including but not limited to Section 36 of Republic Act No. 3844, in
addition to a home lot in the relocation site and preferential employment in the project
being undertaken.

Sec. 14. Land Conversion. - Agricultural lands may be converted for residential,
commercial, industrial and other non-agricultural purposes, subjects to the conditions set forth
under R.A. No. 6657 and other existing laws.

Sec. 15. Presidential Land Grant. - The provisions of any existing law to the contrary
notwithstanding, the President may, upon the recommendation of the Department of
Environment and Natural Resources (DENR) Secretary, grant by donation, sale, lease or
otherwise, to the RIIC portions of the land of the public domain as may be necessary for the
utilization and expansion of the Bases Conversion Development Authority (BCDA), the Subic
Bay Metropolitan Authority (SBMA), the Clark Development Corporation (CDC), the Aurora
Pacific Economic Zone and Freeport Authority (APECO) and the Authority of the Freeport Area
of Bataan (FAB) and for the establishment and development of other Special Economic Zones in
Central Luzon for the increased efficiency of its performance and the accomplishment of its
purpose which is to become the “Engine of Growth for Central Luzon and the Philippines.”

Sec. 16. Control and Coordination - The Bases Conversion Development Authority
(BCDA), the Subic Bay Metropolitan Authority (SBMA), the Clark Development Corporation
(CDC), the Aurora Pacific Economic Zone and Freeport Authority (APECO), the Authority of
the Freeport Area of Bataan (FAB), and other Special Economic Zones in Central Luzon, which
may thereafter be established, shall be under the direct control and coordination of the RIIC, for
purposes of policy direction and coordination.

Sec, 17. Electric Power Supply. - Electric companies providing electric power supply to
RllC-registered entities and its established communities shall be given lower electricity charge
rates, as compared to areas outside the jurisdiction of the Special Economic Zones. Furthermore,
the Electric Companies operating within the Special Economic Zones shall be under the direct
supervision of the RIIC.

Sec. 18. Prisoner Reform. - Convicted prisoners who are willing and able to work, may
be given the opportunity to provide work and industry in secluded areas of the Special Economic
Zones, such as mountains, and shall be entitled to receive a minimum wage earning, as
determined by the Regional Tripartite Wages and Productivity Board (RTWPB). Provided that,
this shall only be applicable to convicted prisoners who have six (6) years or less of length of
imprisonment left in their sentence.

Sec. 19. Budget. - The amount of Five Hundred Million Pesos (Php 500,000,000.00), for
the first three (3) years of its operations, is hereby appropriated for the organization, operation,
and management of the RIC which shall be included in the annual General Appropriations Act
(GAA). Thereafter, the RIIC may, on its own. Maintain its operation and management through
its acquired earnings from the first three (3) years of its operations.

Sec. 20. Exemption from the Salary Standardization Law. - The salaries and benefits of
employees of the RIIC, as well as those of the Bases Conversion and Development Authority
(BCDA), the Subic Bay Metropolitan Authority (SBMA), the Clark Development Corporation
(CDC), the Aurora Pacific Economic Zone and Freeport Authority (APECO), and the Authority
of the Freeport Area of Bataan (FAB) shall be fixed by the RIIC and shall be exempt from R.A.
No. 6758, as amended, or the Salary Standardization Law, provided that the difference between


the salaries prescribed in the Salary Standardization Law and the salaries of employees in the
BCDA, the SBMA, the CDC, the APECO and the Authority of FAB as fixed by the RIIC shall
be taken from the earnings of RIIC and not from the National Treasury.

Sec. 21. Legal Counsel. - Without prejudice to the hiring of an outside counsel, the
Government Corporate Counsel shall be the ex officio legal counsel of RIIC, including the
BCDA, the SBMA, the CDC, the APECO, and the Authority of the FAB. In the event that highly
specialized legal services cannot be provided for by the Office of the Government Corporate
Counsel as may be required, the services of an outside counsel, whose compensation shall be
approved by the Board of Directors, may be engaged and no further consent or approval of the
Office of the Government Corporate Counsel shall be required.

Sec. 22. Injunctions or Restraining Orders. - The implementation of the provisions of this
Act is of national interest. Thus, no project, bidding, and undertaking in implementation of the
provisions of this Act shall be restrained or enjoined by an injunction or restraining order except
by the Supreme Court of the Philippines.

Sec. 23. Repealing Clause. - All laws, decrees, orders, rules and regulations or other
issuances or parts thereof inconsistent with the provisions of this Act, particularly Republic Acts
Nos. 7227, 7916, 9593, 9490, and 9728, as amended are hereby repealed or modified
accordingly.

Sec. 24. Separability Clause. - If any portion or provision of this Act is declared
unconstitutional, the remainder of this Act or any provision not affected thereby shall remain in
force and effect.

Sec. 25. Effectivity. - This A
completion of its publication eit
circulation in the Philippines.

shall take effect after fifteen (15) days following the
in the Official Gazette or in a newspaper of general

Approved,