Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Nineteenth Congress 
Second Regular Session 
HOUSE BILL NO. 10195
Introduced by Representative FERDINAND MARTIN G. ROMUALDEZ, 
MANUEL JOSE “MANNIX” M. DALIPE, FERDINAND ALEXANDER 
A. MARCOS, YEDDA MARIE K. ROMUALDEZ, JUDE A. ACIDRE
AN ACT 
PROVIDING FOR THE MODERNIZATION OF THE PHILIPPINE 
COAST GUARD AND APPROPRIATING FUNDS THEREFOR 
EXPLANATORY NOTE 
The Philippine Coast Guard (PCG) is an armed and uniformed service 
mandated and responsible to perform maritime search and rescue, maritime law 
enforcement, maritime safety, marine environmental protection, and maritime 
security. The PCG is tasked to implement and enforce all national and 
international maritime laws to ensure the maritime safety and security of the 
country. 
As an archipelagic state with vast coastlines and over 7,500 islands, the 
Philippines relies heavily on maritime trade and transport for the development 
of its economy. Additionally, the Philippines is rich in marine resources and 
potential energy reserves. Ensuring maritime security and protection is crucial 
in safeguarding the nation’s territorial integrity from external threats. The 
Philippine Coast Guard Law of 2009 was enacted to enhance the capabilities of 
the PCG in dealing with matters of maritime concern. However, over the recent 
years, the provisions of the PCG Law of 2009 have proven to be inadequate for 
the PCG to handle the complexities of maritime concerns it faces today.  
There is therefore a need to modernize the PCG to improve patrol capabilities, 
March 20, 2024
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strengthen border protection, and increase operational effectiveness. This 
measure proposes the modernization of the PCH which aims to address PCG’s 
inadequate capabilities and limited resources to secure our vast coastline and 
waterways by introducing technologically improved materials and integrating it 
into the PCG organization to meet the new challenges and increasing demands 
for marine resources, technological advancement, and climate change.  Further, 
the proposed program will allow the PCG to perform its different functional 
areas efficiently and effectively. 
The PCG is not merely a maritime law enforcement agency, its various 
functions cover maritime safety, security, environmental protection as well as 
search, rescue, and disaster response.  These functions are vital to the 
Philippines as a developing country. Being at the forefront in ensuring the 
safety and protection of the Philippine maritime waters against any illegal 
activity and with the advent of the wide array of maritime issues currently faced 
by the country, the PCG’s role in maintaining and protecting our maritime 
domain must be given priority and importance. Further, with all the calamities, 
natural disasters, the increasing demands for maritime resources, technological 
advancement, climate change and issues arising from the West Philippine Sea, 
the proposed modernization program will further strengthen PCG’s organization 
and administration for a strong, better, more responsive, and reliable guardian of 
the sea. 
In view of the foregoing, the immediate approval of the proposed Philippine 
Coast Guard Modernization Act is urgently sought. 


3 
FERDINAND MARTIN G. ROMUALDEZ 
Representative 
First District, Leyte 
MANUEL JOSE “MANNIX” M. DALIPE 
Representative 
Second District, Zamboanga City 
FERDINAND ALEXANDER A. MARCOS 
Representative 
First District, Ilocos Norte 
YEDDA MARIE K. ROMUALDEZ 
Representative 
Party-List, Tingog Sinirangan 
JUDE A. ACIDRE 
Representative 
Party-List, Tingog Sinirangan 


4 
Nineteenth Congress 
Second Regular Session 
HOUSE BILL NO. 10195 
Introduced by Representative FERDINAND MARTIN G. ROMUALDEZ, 
MANUEL JOSE “MANNIX” M. DALIPE, FERDINAND ALEXANDER 
A. MARCOS, YEDDA MARIE K. ROMUALDEZ, JUDE A. ACIDRE
AN ACT 
1 
PROVIDING FOR THE MODERNIZATION OF THE PHILIPPINE 
2 
COAST GUARD AND APPROPRIATING FUNDS THEREFOR 
3 
4 
Be it enacted by the Senate and the House of Representatives of the Philippines 
5 
in Congress assembled: 
6 
7 
SECTION 1.  Short Title. – This act shall be known as the “Philippine 
8 
Coast Guard (PCG) Modernization Act.” 
9 
SEC. 2.  Declaration of Policy. – In cognizance of the vital role of the 
10 
PCG in ensuring the maritime safety and security of the country, it is the 
11 
declared policy of the State to strengthen the capability of PCG in performing 
12 
its mandates and enforcing the maritime laws of the State.  Toward this end, the 
13 
State shall pursue the modernization of the PCG and aim to achieve the 
14 
following: 
15 
(a)
The development of more mobile and visible PCG force to attain
16 
its vision of being a world-class guardian of the sea committed to save lives, 
17 
ensure safe maritime transport, cleaner seas, and secure maritime jurisdiction by 
18 
2035; 
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(b) The acquisition and upgrading of appropriate technology and 
1 
equipment for PCG; and 
2 
(c) 
The strategic improvement and construction of bases, installations, 
3 
and other PCG facilities. 
4 
SEC. 3.  Objectives and Mandates. – Through the modernization 
5 
program, the PCG shall enhance its capabilities to perform the following 
6 
mandates: 
7 
(a) Uphold the sovereignty, territorial integrity, and sovereign rights of 
8 
the State and maintain the security and safety of the maritime territory from all 
9 
forms of maritime incidents and transnational crimes; 
10 
(b) Support other government agencies in the preservation of the 
11 
national patrimony, including the country’s living and non-living marine 
12 
resources, submarine, mineral, coastal forest, and other natural resources located 
13 
within the Philippine territory and its exclusive economic zone (EEZ); 
14 
(c) Fulfill its mandate to protect the Filipino people not only from 
15 
armed threats at sea but also from the ill effects of life threatening and 
16 
destructive consequences of disasters and calamities, including typhoons, 
17 
earthquake, tsunami, volcanic eruptions, oil spills, major accidents in the far-
18 
flung or inaccessible areas at sea, and from all forms of ecological damage; 
19 
(d) Enforce domestic and foreign policies as well as international 
20 
accords against smuggling, piracy, armed-robbery, poaching, illegal fishing, 
21 
smuggling, drug trafficking, hijacking of sea craft and vessels trade in human 
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beings and other serious international crimes, drug-trafficking, and the transport 
1 
of toxic and other ecologically-harmful substances taking place in or through 
2 
the Philippine territory; and 
3 
(e) Support the national development, fulfill international commitments, 
4 
and coordinate with other law enforcement agencies in enforcing maritime laws 
5 
and counter-terrorism. 
6 
 SEC. 4.  PCG Modernization Program. – The PCG Modernization 
7 
Program, hereinafter referred to as the “Program”, is established and consists 
8 
of the following components, divided into four (4) tiers: 
9 
(a) First Tier – Development of PCG Response Bases and Enhancement 
10 
of Maritime Domain Awareness Capabilities: 
11 
(1) Response Bases. – The Program entails the construction and 
12 
development of permanent response bases to house all PCG operational 
13 
units, including Marine Laboratories, Search and Rescue Vessels 
14 
(SARVs), Offshore Patrol Vessels (OPV), and Maritime Pollution 
15 
(MARPOL) Vessels, to allow the PCG to rapidly respond to maritime 
16 
emergency calls in the most efficient and effective manner. 
17 
(2) Maritime Domain Awareness (MDA) Capabilities. – The 
18 
Program entails the acquisition and upgrading of equipment and systems 
19 
such as Radar Stations, Lighthouses, Unmanned Aerial Vehicles, 
20 
Unmanned Underwater Vehicles, and SARVs to enhance MDA 
21 
capabilities. 
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(b) Second Tier – Development of Infrastructure and Interdiction 
1 
Capabilities: 
2 
(1) Interdiction Capabilities. – The Program entails the acquisition 
3 
of state-of-the-art vessels and equipment to enhance interdiction and law 
4 
enforcement capabilities. 
5 
(2) Coast Guard Stations and Substations. – The Program entails 
6 
the improvement and development of infrastructures and facilities of PCG 
7 
stations and substations: Provided, That each shoreline municipality shall 
8 
have its own constant, uniform and fully-equipped stations: Provided, 
9 
further, That substations must serve as its smaller unit. 
10 
(3) MARPOL Vessels. – The Program entails acquisition of 
11 
MARPOL vessels to strengthen the marine environment protection 
12 
mandate of the PCG. 
13 
(c) Third Tier – Acquisition and Development of Patrol Vessels and Air 
14 
Capabilities: 
15 
(1) Offshore Patrol Vessels. – The Program entails the 
16 
development and acquisition of new OPVs to strengthen the coastal 
17 
defense and management of the Philippine EEZ.  The acquisition of 
18 
OPVs shall enable the PCG to: 
19 
(i) 
Patrol, detect, intercept, engage, and challenge, if necessary, 
20 
any vessel illegally intruding into or passing through the Philippine 
21 
territorial limits, up to the areas near or around the Philippine EEZ; 
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(ii) 
Provide transportation of personnel and resources in times 
1 
of natural disaster, calamities and rescue operations; 
2 
(iii) 
Conduct search and rescue operations during maritime 
3 
incidents; and 
4 
(iv) 
Support the Philippine naval armed forces. 
5 
(2) Aircrafts. – The Program entails the acquisition of aircrafts to 
6 
enable the PCG to: 
7 
(i) 
Strengthen maritime and airspace security in different areas 
8 
and stations; 
9 
(ii) 
Patrol, detect, and challenge, if necessary, any vessel and 
10 
aircraft illegally intruding into or passing through the Philippine 
11 
territorial limits, up to the areas near or around the Philippine EEZ; 
12 
(iii) 
Support its operations on law enforcement and nautical 
13 
services; and 
14 
(iv) 
Support the Philippine naval armed forces. 
15 
(d) Fourth Tier – Infrastructure and Facilities Development: 
16 
(1) Development and Improvement of Training Facilities. – The 
17 
Program entails the development and improvement of training facilities 
18 
for study, training, professional progress, and exercise to empower PCG 
19 
personnel. 
20 
(2) Construction and Development of Shipyards. – The Program 
21 
entails the construction and development of shipyards that may contribute 
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to regional industrial infrastructure and national security interests. 
1 
(3) Construction and Development of Hangars. – The Program 
2 
entails the construction and expansion of hangars for the maintenance, 
3 
repair, production, assembly, and storage of aircrafts. 
4 
SEC. 5.  Development of PCG Capabilities. – The Program is geared 
5 
towards the development of the following capabilities: 
6 
(a) Development of Floating Assets. – The enhanced fleet operations 
7 
shall enable the PCG to: 
8 
(1) Patrol the Philippine maritime jurisdiction, including the EEZ, 
9 
for the enforcement of all applicable laws; 
10 
(2) Protect and preserve all coastal, near coastal and riparian living 
11 
and non-living marine resources; 
12 
(3) Provide transportation of personnel and resources in times of 
13 
natural disaster, calamities and rescue operations; and 
14 
(4) Conduct search and rescue operations during maritime 
15 
incidents such as fire at sea, collisions, groundings, oil spills, and flash 
16 
floods. 
17 
(b) Development of Air Assets. – The enhanced air operations shall 
18 
enable the PCG to: 
19 
(1) Patrol, detect, and challenge, if necessary, any vessel and 
20 
aircraft illegally intruding into or passing through the Philippine territorial 
21 
limits, up to the areas near or around the Philippine EEZ; 
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10 
 
(2) Conduct maritime air operations in support of PCG missions; 
1 
(3) Provide airlift, search and rescue, rapid deployment and related 
2 
support in disaster and other civilian relief operations; and 
3 
(4) Support the Philippine naval armed forces. 
4 
(c) Development of Maritime Domain Awareness (MDA) Capabilities. – 
5 
The PCG shall acquire and upgrade contemporary, modern, and state-of-the-art 
6 
equipment and systems to enhance its MDA capabilities. 
7 
(d) Development of Fleet Support and Infrastructure. – The PCG shall 
8 
acquire, construct, develop, and upgrade its infrastructure and facilities for the 
9 
following: 
10 
(1) Response bases for all operational units of the PCG; 
11 
(2) PCG stations and substations; and 
12 
(3) Training, ship or aircraft repair and maintenance, and logistics 
13 
for PCG operating units; 
14 
(e) Development of National Headquarters’ Capabilities. – The PCG 
15 
shall renovate and develop the national headquarters’ capabilities for command, 
16 
control, communications, and information systems network. 
17 
SEC. 6.  Period of implementation. – Each of the four (4) tiers of the 
18 
Program provided under Section 4 of this Act shall be implemented every three 
19 
(3) years for a total period of twelve (12) years: Provided, however, That the 
20 
payments for the outstanding multi-year contract obligations previously 
21 
incurred may extend beyond the period of implementation. 
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11 
 
SEC. 7.  Submission of the Program. –  
1 
(a) 
Within ninety (90) days from the effectivity of this Act, the 
2 
President of the Philippines shall, upon the recommendation of the Secretaries 
3 
of Transportation and Budget and Management, submit the Program to 
4 
Congress for its consideration and approval in a joint resolution of the House of 
5 
Representatives and the Senate. The Program includes the following: 
6 
(1) The personnel, equipment, and facilities of the PCG during the 
7 
phases of the Program;  
8 
(2) The modernization projects, including the major weapon and 
9 
non-weapon equipment and technology acquisitions, and any major 
10 
infrastructure construction or improvement that particularly address the 
11 
objectives of this Act and the capabilities the projects intend to develop; 
12 
and 
13 
(3) The priorities, schedule and the estimated average cost for each 
14 
modernization project or upgrading to be undertaken. 
15 
(b) 
In the event Congress approves the Program, the joint resolution 
16 
shall be the basis for subsequent executive and legislative actions to implement 
17 
the Program until its completion. 
18 
SEC. 8.  PCG Modernization Act Trust Fund. – There is hereby created 
19 
a trust fund to be known as the “PCG Modernization Act Trust Fund,” 
20 
hereinafter referred to as the “Fund”, which shall be used exclusively for the 
21 
implementation of this Act and shall be funded through the following: 
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12 
 
(a) Appropriations in the annual General Appropriations Act for the 
1 
Program; 
2 
(b) Forty percent (40%) of the annual collections from the contributions 
3 
of owners and tankers and fines constituting the Oil Pollution Management 
4 
Fund created under Republic Act (RA) No. 9483, otherwise known as the “Oil 
5 
Pollution Compensation Act of 2007”; 
6 
(c) Proceeds from the sale, lease or joint development of assets, and 
7 
disposal of excess or uneconomically repairable equipment and other movable 
8 
assets of the PCG; 
9 
(d) Dues, fines, and penalties collected by the PCG in the exercise of its 
10 
functions; 
11 
(e) Grants, donations and endowments from various domestic and 
12 
foreign sources; 
13 
(f) Unused or undisbursed funds, other than unused appropriations for 
14 
salaries and benefits of the PCG personnel, including the savings from the 
15 
austerity measures by the PCG generated in the previous fiscal year; and 
16 
(g) All interest income of the Fund. 
17 
The Secretary of Transportation shall administer the Fund in accordance 
18 
with the existing accounting and auditing rules and regulations. Likewise, the 
19 
Secretary of Transportation shall facilitate the closure and reversion of the 
20 
balance of the Fund to the general fund of the government after the completion 
21 
of the Program. 
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13 
 
SEC. 9.  Multi-year Program Contracts and other Contractual 
1 
Arrangements. – Subject to the approval by the President of the Philippines, 
2 
and under such terms and conditions most favorable to the government, the 
3 
Secretary of Transportation may enter into multi-year contracts, lease and lease-
4 
purchase agreements to implement the Program. 
5 
The Secretary of Transportation shall, through the Congressional 
6 
Oversight Committee, submit to Congress copies of the multi-year contracts and 
7 
other agreements or arrangements entered into to enable Congress to 
8 
appropriate funds. 
9 
Prior to entering into contracts for multi-year programs, activities or 
10 
projects, the Secretary of Transportation shall request the Department of Budget 
11 
and Management for the issuance of a Multi-Year Contractual Authority.  
12 
SEC. 10.  PCG Procurement System. – The Department of 
13 
Transportation and PCG shall strengthen its systems and procedures for 
14 
equipment acquisition, taking into account the new requirements under the 
15 
Program.  Contract negotiations, and equipment, vessel and facilities acquisition 
16 
must be treated as two sequential but separate steps, each requiring the separate 
17 
decision of the Secretary of Transportation.  Both the decision-making and 
18 
contract negotiation processes shall start at the PCG level and shall be submitted 
19 
to the Secretary of Transportation for approval. 
20 
In its systems and procedures for equipment acquisition, the provisions of 
21 
RA 9184, otherwise known as the “Government Procurement Reform Act,” and 
22 


14 
 
other applicable laws shall apply. 
1 
SEC. 11.  Guidance for the President. – To meet the unforeseen national 
2 
security 
emergencies, 
the 
President 
of 
the 
Philippines, 
upon 
the 
3 
recommendation of the Secretary of Transportation, may modify the program 
4 
through substitution or revision of a component project: Provided, however, 
5 
That the President shall report such action to Congress within thirty (30) days 
6 
from the finality of revision. 
7 
SEC. 12.  Annual Reports. – Not later than the end of the first quarter of 
8 
every year: 
9 
(a) The Secretary of Transportation shall submit to the President of the 
10 
Philippines and Congress an annual report on the status of the Fund; and 
11 
(b) The Commandant of the PCG shall submit to the President of the 
12 
Philippines and Congress, through the Secretary of Transportation, an annual 
13 
report containing the progress of the implementation of the Program, including 
14 
the PCG modernization activities implemented prior to the approval of this Act. 
15 
SEC. 13.  Appropriations. – The amount of One hundred billion pesos 
16 
(P100,000,000,000.00) for the initial implementation of the Program shall be 
17 
charged against the current appropriations of the Contingency Fund.  Thereafter, 
18 
such amounts as may be necessary to fully implement the Program shall be 
19 
included in the General Appropriations Act, taking into consideration the 
20 
balance of the Fund. 
21 
SEC. 14.  Joint Congressional Oversight Committee. – A Joint 
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15 
Congressional Oversight Committee is hereby created to monitor and oversee 
1 
the implementation of the provisions of this Act.  The Joint Congressional 
2 
Oversight Committee shall be composed of six (6) Senators and six (6) 
3 
Representatives to be appointed by the Senate President and the Speaker of the 
4 
House of Representatives, respectively.  It shall be co-chaired by the 
5 
Chairperson of the Committee on Transportation of both Houses.  The minority 
6 
parties of both houses shall have at least two (2) representatives in the Joint 
7 
Congressional Oversight Committee. 
8 
SEC. 15.  Separability Clause. – If any part or provisions of this Act is 
9 
declared unconstitutional or invalid, the parts or provisions not affected shall 
10 
remain in full force and effect. 
11 
SEC. 16.  Repealing Clause. – All laws, decrees, orders, ordinances, 
12 
executive orders, and rules and regulations or parts thereof inconsistent with the 
13 
provisions of this Act are repealed or amended accordingly. 
14 
SEC. 17.  Effectivity. – This Act shall take effect fifteen (15) days after 
15 
its publication in the Official Gazette or in a newspaper of general circulation. 
16 
Approved, 
17