"0.4 LilJ. -2 fit3 28 
THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
S E N A T E  
S. NO. - 
I282 
Introduced by Senator Biazon 
EXPLANATORY NOTE 
Republic Act No. 7227 created the Bases Conversion Development 
Authority (BCDA) in order to accelerate the sound and balanced conversion into 
alternative productive uses of the former US. Bases, Clark and Subic and their 
extensions, to raise funds by the sale of portions of Metro Manila military camps, 
! 
and to apply said funds as provided herein for the development and conversion to 
productive civilian use of the lands covered under the 1947 Military Bases 
Agreement between the Philippines and the United States of Americas, as 
amended. Thus, the law provided that the largest share from the net proceeds of 
the sale of former military bases should fund the AFP Modernization program 
As mandated in Republic Act No. 7898, the funds for the modernization of 
the Armed Forces of the Philippines may be generated through the sale, lease or 
joint ventures of portions of military reservations and lands. The share of the AFP 
in BCDA controlled areas under RA 7229 is limited only to the net proceeds of the 
actual sale and it is not proportionate to its stake, considering that it is the 
custodian and owner of these properties. 
In 1997, revenues generated by the BCDA from the sale of former military 
camps reached P6.617 billion, mostly from the Fort Bonifacio project. This brings 
to P25.869 billion the total amount of revenues from such sales remitted by BCDA 
to the National Treasury since 1993. 
The BCDA has the power to recommend to the President further alienation 
of other military installations, which it may find essential for further development. It 
is the intent of this bill, to authorize the President to sell certain portion of lands, 
which are exempted from sale, and the proceeds thereof, shall exclusively be used 
for the AFP modernization program. The area to be sold is the one hundred 
hectares (100 has.) which form part of the 148.80 in Fort Bonifacio reserved for 
the National Capital Region (NCR) Security Brigade, Philippine Army 
(PA) 
officers' housing area, and Philippine National Police (PNP) jails and support 
services (presently Camp Bagong Diwa). 
Furthermore, the share of the AFP should not be restricted to the sale of 
former military camps but shall include proceeds from lease, joint ventures and 
other arrangements for the productive use of these lands. 
In view of the foregoing, the approval of this bill is earnestly requested. 
Senator 


/
I
 
THJRTEENTH CONGRESS OF THE REPUBLIC 
) 
First Regular Session 
) 
OF THE PHILIPPINES 
) 
-@I 
EL -2 
I\C :iN 
Introduced by Senator Biazon 
AN ACT 
AMENDING SECTION 8 OF REPUBLIC ACT NO. 7227, OTHERWISE KNOWN AS 
THE BASES CONVERSJON AND DEVELOPMENT ACT OF 1992, AS AMENDED, 
AUTHORIZING THE PRESIDENT TO SELL CERTAIN PORTIONS OF LAND 
WHICH ARE HEREBY EXEMPTED FROM SALE AND THE PROCEEDS 
THEREOF SHALL EXCLUSIVELY BE USED FOR THE AFP MODERNIZATION 
PROGRAM. 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled. 
SECTION 1. Section 6 of Republic Act No. 7227 is hereby further amended 
to read as follows: 
“Sec. 6. Capitalization. - The Conversion Authority shall have 
an 
authorized 
capital 
of 
One 
hundred 
billion 
pesos 
(P100,000,000.00) which may be fully subscribed by the Republic of 
the Philippines and shall either be paid up from the proceeds of the 
sales, LEASE, JOINT-VENTURE AGREEMENTS AND OTHER 
TRANSACTIONS 
INVOLVING 
MILITARY 
BASES 
AND 
RESERVATIONS [of its land assets,] as provided for in Section 8 of 
this Act or by transferring to the Conversion Authority properties 
valued in such amount.” 
SEC. 2. Section 8 of the same Act is hereby amended to read as follows: 
“Sec. 8. Funding Scheme. - The capital of the Conversion 
Authority come from the [sales proceeds] PROCEEDS FROM THE 
SALE, LEASE, JOINT VENTURE AGREEMENTS AND OTHER 
TRANSACTIONS 
INVOLVING 
MILITARY 
BASES 
AND 


RESERVATIONS andlor transfer of certain Metro Manila military 
camps, including all lands covered by Proclamation No. 423 series 
of 1957, commonly known as Fort Bonifacio and Villamor (Nichols) 
Air Base, namely: 
Camp 
Area in has. 
(more or less) 
Phase I (for immediate disposal) 
I. Camp Claudio 
2. Camp Bag0 Bantay 
3. Camp Bag0 Bantay 
4. Part of Fort Bonifacio 
Total 
2.0 
5.10 
135.10 
498.40 
640.50 
Phase II 
1. 
2. 
3. 
4. 
5. 
6. 
Camp Ver 
1.9 
Camp Melchor 
1 .o 
Camp Atienza 
4.9 
Part of Villamor Airbase 
37.9 
Part of Fort Bonifacio 
224.90 
Fort Abad 
Total 
.60 
271.20 
: Provided, That the following areas shall be exempt from sale: 
“a) Approximately 148.80 hectares in Fort Bonifacio for the 
National Capital Region (NCR) Security Brigade, Philippine Army 
(PA) officers’ housing area, and Philippine National Police (PNP) jails 
and support services (presently Camp Bagong Diwa):” THE 
PRESIDENT, HOWEVER, SHALL SELL ONE HUNDRED (100) 
HECTARES OUT OF THE ONE HUNDRED FORTY-EIGHT AND 
801100 (148.80) HECTARES AND THE ENTIRE PROCEEDS OF 
THE SALE, AFTER DEDUCTING ALL DISPOSITION EXPENSES 
RELATED TO THE SALE SHALL BE ADDED TO THE FUNDS 
ALLOTTED FOR THE AFP MODERNIZATION PROGRAM. THE 
FOLLOWING 
DISPOSITION 
EXPENSES 
SHALL 
BE 
CONSIDERED AS ACQUISITION AND TITLING OF REAL 
ESTATES AS WELL AS PREPARATION OF ALTERNATIVE 
RELOCATION SITES TO HOST RELOCATED MILITARY UNITS 


AND ITS FACILITIES AND RELATED TRANSFER EXPENSES; 
RELOCATION OF AFFECTED GOVERNMENTINON-MILITARY 
AGENCIES 
AND 
SQUATTERS. 
PROVIDED, 
THAT 
THE 
PROVISIONS OF LAW CONTRARY NOTWITHSTANDING, THE 
PROCEEDS 
OF 
THE 
SALE, 
LEASE, 
JOINT-VENTURE 
AGREEMENTS AND OTHER TRANSACTIONS AS HEREIN 
PROVIDED 
SHALL 
NOT 
BE 
DIMINISHED 
AND 
ARE, 
THEREFORE, EXEMPT FROM ALL FORMS OF NATIONAL AND 
LOCAL TAXES, ASSESSMENTS, LICENSES AND FEES. 
See. 3. Other provisions of Republic Act No. 7227, otherwise known as the 
Bases Conversion and Development Authority Act of 1992, as amended, which are 
not affected by the provisions of Section 8 hereof, shall remain in force and effect. 
Sec. 4. Rules and Regulations. - The President of the Philippines shall 
promulgate such rules and regulations as may be necessary for the proper 
implementation of this Act. 
SEC. 5. Separability Clause. - If any of the provisions of this Act is declared 
invalid, the remainder of this Act or any provision not affected thereby shall remain 
in force and effect. 
SEC. 6. 
Repealing Clause. - All laws, decrees, ordinances, rules and 
regulations, executive or administrative orders, and other presidential issuances 
inconsistent with this Act, are hereby repealed, amended or modified accordingly. 
SEC. 7. Effectivity. - This Act shall take effect after fifteen (15) days 
following its publication in at least two (2) newspapers of general circulation. 
Approved.