Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
Third Regular Session 
House Bill No. 10849 
Introduced by HONORABLE MARCELINO C. LIBANAN 
EXPLANATORY NOTE 
The Philippines is a global leader in coconut production, with the coconut industry serving 
as a vital economic driver for many regions, including Eastern Visayas. Eastern Samar, known for 
its extensive coconut plantations, significantly contributes to this industry. Recently, a bill was 
proposed to establish a coconut oil milling and refinery plant in Sulat, Eastern Samar, which 
promises to bolster the local economy and create employment opportunities. However, to further 
enhance the impact of this initiative, it is crucial to establish another coconut oil milling and 
refinery plant in Quinapondan, Eastern Samar. This location offers strategic advantages that will 
benefit the southern towns of Eastern Samar and Samar provinces, as well as parts of Leyte 
province. 
Quinapondan is uniquely positioned with a port that provides significant logistical benefits, 
making it an ideal location for a coconut oil milling and refinery plant. The presence of this port 
enables efficient transportation of raw materials and finished products, not only within the region 
but also to national and international markets. This strategic location reduces transportation costs 
and time, making the production and distribution process more efficient and cost-effective. The 
port’s accessibility to the southern towns of Eastern Samar and Samar provinces, as well as Leyte, 
positions Quinapondan as a central hub for the coconut industry in the region. This will enhance 
the competitiveness of local producers and ensure smoother operations, ultimately benefiting the 
entire value chain. 
The establishment of a plant in Quinapondan will complement the one proposed in Sulat 
by providing services to a broader area. While Sulat caters to the central and northern parts of 
Eastern Samar, Quinapondan’s strategic location will specifically serve the southern towns, 
making it easier for coconut farmers in these areas to access processing facilities. This reduces the 
need for long-distance transportation, thereby lowering costs for farmers and increasing their 
profitability. The plant’s proximity to the port further ensures that products can be shipped out 
efficiently, improving market access and boosting overall production efficiency. 
September 3, 2024
2:38 pm


Further, the establishment of a coconut oil milling and refinery plant in Quinapondan will 
serve as a catalyst for economic development in the region. The plant will generate direct 
employment opportunities in manufacturing and processing, as well as in related sectors such as 
logistics, packaging, and services. The port’s strategic location is likely to attract additional 
investments, further driving economic growth in the area. The increased economic activity will 
contribute to poverty reduction and significantly improve the standard of living for residents in the 
surrounding communities. 
With the growing global demand for coconut-based products, the new facility in 
Quinapondan will be crucial in enhancing the value-added production capabilities of the region. 
The plant will allow for the efficient processing of raw materials close to the source, reducing 
waste and promoting sustainable practices. By leveraging the port’s accessibility, the facility can 
integrate into global value chains, facilitating the export of high-quality coconut products. This not 
only increases the value of local produce but also aligns with national efforts to promote 
sustainability and the efficient use of natural resources. 
Eastern Samar, like many parts of the Visayas, remains one of the less developed regions 
in the Philippines. The development of a new coconut oil milling and refinery plant in 
Quinapondan will directly contribute to the region’s development goals. By tapping into the 
strategic location of Quinapondan’s port, the region can become a more significant player in the 
coconut industry, attracting more investments and fostering broader economic growth. This 
initiative will help address regional economic disparities and support the government’s efforts to 
promote inclusive growth and poverty alleviation in the Visayas. 
In view of the foregoing, the establishment of a coconut oil milling and refinery plant in 
Quinapondan, Eastern Samar, is not only a strategic economic investment but also a necessary step 
toward ensuring the continued growth and resilience of the coconut industry in the region. The 
town’s port provides a crucial logistical advantage, making it an ideal location to serve the southern 
towns of Eastern Samar and Samar provinces, as well as Leyte province. This project will boost 
the local economy, create jobs, enhance the region’s role in the national coconut industry, and 
contribute to sustainable development practices. It is therefore imperative that this bill be given 
favorable consideration to fully harness the potential of our coconut industry and to contribute to 
the broader objectives of regional development and poverty alleviation in the Visayas. 
MARCELINO C. LIBANAN 
Representative 
4Ps Partylist 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
Third Regular Session 
House Bill No. 10849 
Introduced by HONORABLE MARCELINO C. LIBANAN 
AN 
ACT  ESTABLISHING A COCONUT OIL MILLING AND REFINERY PLANT IN THE 
MUNICIPALITY 
OF 
QUINAPONDAN, 
PROVINCE 
OF 
EASTERN 
SAMAR, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. This Act shall be known as the “South Eastern Samar Coconut Oil Milling and 
Refinery Plant Act.” 
SECTION 2. Declaration of Policy. It is hereby declared the policy of the State to promote the 
development and growth of the coconut industry as a vital component of the national economy. In 
line with this policy, the State shall establish a coconut oil milling and refinery plant in the 
Municipality of Quinapondan, Eastern Samar to enhance the value-added processing of coconut 
products, create employment, and stimulate economic development in the province and in nearby 
provinces. 
SECTION 3. Establishment of the Coconut Oil Milling and Refinery Plant. There shall be 
established, under the supervision of the Philippine Coconut Authority (PCA), a state-of-the-art 
coconut oil milling and refinery plant in a strategic location within the Municipality of 
Quinapondan in the Province of Eastern Samar. The exact location shall be determined by the 
PCA, in consultation with the Local Government Unit of Quinapondan and the Provincial 
Government of Eastern Samar, based on the availability of land, proximity to coconut production 
areas, and accessibility to transportation infrastructure. 
SECTION 4. Objectives. The coconut oil milling and refinery plant shall have the following 
objectives: 


(a) To process raw coconuts into coconut oil and other high-value coconut-based products for 
domestic and international markets; 
(b) To provide a stable and profitable market for coconut farmers in Eastern Samar and nearby 
provinces, thereby increasing their income and improving their livelihood; 
(c) To generate employment opportunities in Eastern Samar and neighboring provinces; 
(d) To contribute to the national economy by enhancing the export potential of the country’s 
coconut products; and 
(e) To promote the sustainable and environmentally friendly use of coconut by-products. 
SECTION 5. Administration and Management. The Department of Agriculture, through the 
Philippine Coconut Authority (PCA) shall oversee the establishment, operation, and management 
of the coconut oil milling and refinery plant. The PCA is authorized to enter into public-private 
partnerships (PPP), joint ventures, or other cooperative arrangements with private entities, local 
government units (LGUs), and other relevant stakeholders to ensure the efficient and effective 
operation of the facility. 
SECTION 6. Appropriation of Funds. The initial funding for the establishment of the coconut 
oil milling and refinery plant shall be charged against the current appropriations of the Philippine 
Coconut Authority (PCA) and the Department of Agriculture (DA). Thereafter, the amount 
necessary for the continued operation and maintenance of the plant shall be included in the annual 
General Appropriations Act (GAA). 
SECTION 7. Incentives. The plant, along with its investors and operators, shall be entitled to tax 
incentives and other benefits as provided under existing laws, including, but not limited to, the 
following: 
(a) Income tax holidays for the first five (5) years of operation; 
(b) Exemption from customs duties and national taxes on importation of capital equipment, raw 
materials, and other inputs necessary for the plant’s operations; and 
(c) Priority access to financing programs and credit facilities offered by government financial 
institutions. 
SECTION 8. Support to Coconut Farmers. The PCA, in coordination with the Department of 
Agriculture (DA) and the Department of Trade and Industry (DTI), shall implement programs to 
support and capacitate coconut farmers in Eastern Samar and nearby provinces. These programs 
shall include technical assistance, training on sustainable farming practices, and access to 
affordable credit and inputs. 
SECTION 9. Monitoring and Evaluation. The PCA shall regularly monitor and evaluate the 
performance of the coconut oil milling and refinery plant to ensure that it meets its objectives. The 


PCA shall submit an annual report to Congress on the plant’s operations, including its economic 
impact on Eastern Samar and the surrounding areas. 
SECTION 10. Implementing Rules and Regulations. Within ninety (90) days from the 
effectivity of this Act, the Philippine Coconut Authority (PCA), in consultation with the 
Department of Agriculture (DA) and other relevant government agencies, shall promulgate the 
necessary rules and regulations to implement the provisions of this Act. 
SECTION 11. Separability Clause. If any provision of this Act is declared unconstitutional or 
invalid, the other provisions not affected thereby shall remain in full force and effect. 
SECTION 12. Repealing Clause. All laws, decrees, executive orders, rules, and regulations, or 
parts thereof that are inconsistent with the provisions of this Act are hereby repealed or modified 
accordingly. 
SECTION 13. Effectivity. This Act shall take effect fifteen (15) days after its publication in the 
Official Gazette or in a newspaper of general circulation. 
Approved,