NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Second Regular Session
SENATE
s.B. No. 2282
$ ff'' ‘'i
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23 JUN 19 P6 m
RECEIVED BY:
Introduced by SENATOR JOEL VILLANUEVA
AN ACT
FURTHER STRENGTHENING THE POWERS AND FUNCTIONS OF 
THE AUTHORITY OF THE FREEPORT AREA OF BATAAN (AFAB), 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9728, AS 
AMENDED BY REPUBLIC ACT NO. 11453, OTHERWISE KNOWN AS 
THE “FREEPORT AREA OF BATAAN (FAB) ACT OF 2009”
EXPLANATORY NOTE
Republic Act No. 9728, otherwise known as the “Freeport Area of Bataan (FAB) 
Act of 2009” was enacted to promote local economic development, provide jobs, 
increase productivity and incomes, attract investments, and improve the level and 
quality of living in the province of Bataan. For this purpose, the Authority of the 
Freeport Area of Bataan (AFAB) was created to manage and operate the FAB.
Since then, the FAB has contributed significantly to national development. In a 
cost-benefit analysis conducted by the AFAB to measure the impact of the FAB on the 
national economy, it was revealed that AFAB’s net benefit in 2021 amounted to 
P316.75 billion. The FAB has also provided thousands of jobs since its first full year of 
operations in 2010. By the end of 2019, the total number of FAB workers has reached 
43,990, representing a 263.58% increase in the number of FAB workers since 2011.
In addition, FAB now has 95 Registered Enterprises (RE) by the end of 2022, 
from the original 33 enterprises inherited from the Philippine Economic Zone Authority. 
Of these enterprises, majority or almost half (44 enterprises) are engaged in 
manufacturing, 11 enterprises are engaged in estate development, while nine 
enterprises are engaged in wholesale, retail, and repair of motor vehicles, and eight 
enterprises are in the information and communication sector.1
1 FAB Data. Available at https://afab.gov.ph/fabdata/ (date last accessed; June 16, 2023).


With the enactment of Republic Act No. 11453 in 2019, the AFAB’s autonomy 
and self-reliance have been strengthened with a renewed vision “to be a development 
catalyst in the Philippines by creating meaningful employment and inclusive economic 
growth in Central Luzon through pioneering efforts in governance and multi-sectoral 
collaboration.”2 R.A. No. 11453 also paved the way for FAB to expand the list of 
investments to include future technologies such as blockchain, artificial technology, 
internet of things, virtual reality, among others.3
To further maximize the gains of FAB and its potential as a major contributor to 
the development of the country, this measure seeks to further amend Republic Act 
No. 9728 to strengthen the powers and functions of the AFAB.
In view of the foregoing, the passage of this bill is earnestly sought.
JOEL^LLANUEVAp
2 FAB. Vision, Mission, Core Values, Quality Policy. Available at https://afab.qov.ph/mission-and-vision/ (date last 
accessed: June 16, 2023).
3 Sec. 4(a).


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Second Regular Session
SENATE
s.B. No. 2282
of rl)f
23 JUN 19 P6 X)3
Introduced by SENATOR JOEL VILLANUEVA
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AN ACT
FURTHER STRENGTHENING THE POWERS AND FUNCTIONS OF 
THE AUTHORITY OF THE FREEPORT AREA OF BATAAN (AFAB), 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9728, AS 
AMENDED BY REPUBLIC ACT NO. 11453, OTHERWISE KNOWN AS 
THE “FREEPORT AREA OF BATAAN (FAB) ACT OF 2009”
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Section 2 of Republic Act No. 9728, as amended, is hereby 
amended to read as follows:
“Sec. 2. Declaration of Policy. -
XXX
TO THIS END, THE BATAAN ECONOMIC ZONE SHALL BE CONVERTED 
INTO A SPECIAL ECONOMIC ZONE, TO BE KNOWN AS THE FREEPORT 
AREA OF BATAAN (FAB). ALL NON-ECONOMIC AFFAIRS WITHIN THE 
FAB AND ITS EXPANSION AREAS SHALL BE UNDER THE SOLE AND 
EXCLUSIVE MANAGEMENT AND OPERATION OF THE AUTHORITY OF 
THE FREEPORT AREA OF BATAAN (AFAB), PURSUANT TO THE 
AUTONOMY AND SELF-RELIANCE OF FAB GRANTED UNDER THIS ACT 
WITHIN THE FRAMEWORK OF NATIONAL DEVELOPMENT PLANS AND 
POLICIES.”
SEC. 2. Section 4 of Republic Act No. 9728, as amended, is hereby further 
amended to read as follows:
“Sec. 4. Governing Principles. - The FAB shall be managed and operated 
under the following principles:
(a) Within the framework and limitations of the Constitution and applicable 
provisions of the Local Government Code, the FAB shall be developed into and
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operated as a decentralized, self-reliant and self-sustaining industrial, 
commercial-trading, research and development, engineering, medical, 
education, information and communications technology including emerging and 
future technologies such as artificial technology, blockchain, business process 
outsourcing, cloud computing, cybersecurity, distributed ledger technology, 
financial technology solutions, SPACE TECHNOLOGY, internet of things, and 
virtual reality, retirement and healthcare services, agro-industrial, and 
investment center with provision for suitable residential areas;
XXX
(g) The areas comprising the FAB may be expanded or reduced when 
necessary. For this purpose, the AFAB, with the concurrence of the appropriate 
and affected local government units (LGUs) and/OR the agreement of 
appropriate national government agencies, government-owned and -controlled 
corporations and instrumentalities, and UPON approval of the Board in 
accordance and in compliance with existing laws [and local ordinances] shall 
have the power to acquire, procure, and/or expand either by purchase, 
negotiation, EXPROPRIATION OR condemnation proceedings, or any other 
arrangement, any private or alienable and disposable public lands and/or their 
respective water territories within the territorial jurisdiction of the Province of 
Bataan, if any, for the following purposes: (1) consolidation of lands for FAB 
development and establishment of new industrial estates and economic zones 
under FAB; (2) acquisition of right of way to the FAB; and (3) the protection, 
and safeguard of watershed areas and the maintenance and improvement of 
its water yield and natural assets valuable to the prosperity of the FAB, the LGU, 
and the National Government, the effective management of solid and water 
waste in compliance with existing national laws and local ordinances, and its 
impact to adjacent areas within the local government concerned: Provided, That 
any expansion shall be aligned with the comprehensive land use plan of the 
affected LGUs: Provided, further, That the expansion outside the Municipality 
of Mariveles may be revoked by the President of the Philippines: Provided, 
finally. That the AFAB and the relevant LGUs and National Government 
agencies shall provide for immediate and responsive mechanisms, best 
management practices and suitable environmental protection programs for land 
and coastal management to address any abuse and/or exploitation of the 
natural environment within the jurisdiction of the FAB as provided in Section 3 
of this Act. SUBJECT TO APPLICABLE LAWS, RULES, AND 
REGULATIONS, LGU CONCURRENCE, AND ALIGNMENT WITH THE 
COMPREHENSIVE LAND USE PLAN HEREIN MENTIONED, EXPANSION 
FOR PUBLIC USE, PUBLIC SERVICE AND/OR THE DEVELOPMENT OF 
NATIONAL WEALTH MAY INCLUDE PRIVATELY-OWNED LANDS WHICH 
SHALL BE REGULATED AND MANAGED BY THE AFAB UPON 
DECLARATION AS SUCH;
XXX
(i) The defense of the FAB and the security of its perimeter fence shall be the 
responsibility of the National Government in coordination with the AFAB and the 
LGUs. The AFAB shall provide its own internal security and firefighting forces.


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FOR THE PURPOSE OF PUBLIC SAFETY AND SECURITY, LAW AND 
ORDER, AND DISASTER RISK REDUCTION MANAGEMENT (DRRM) AND 
RESILIENCY, THE AFAB MAY HAVE ITS OWN INTERNAL POLICE FORCE, 
FIREFIGHTING FORCES, AND DRRM OFFICE.”
SEC. 3. Section 7 of Republic Act No. 9728, as amended, is hereby further 
amended to read as follows:
“Sec. 7. Incentive to Investors. - Any foreign national who invests an amount 
of Seventy-five thousand US dollars (US$75,000.00), either in cash and/or 
equipment, DIRECTLY TO THE AFAB OR in a registered enterprise shall be 
entitled to an investor’s visa: Provided, That he has the following qualifications:
(a) He is at least eighteen (18) years of age;
(b) He has not been convicted of a crime involving moral turpitude;
(c) He is not afflicted with any loathsome, dangerous or contagious disease; 
and
(d) He has not been institutionalized for any mental disorder or disability.
As a holder of AN investor's visa, an alien shall be entitled to reside in the 
Philippines while his investment subsists. For this purpose, he should submit an 
annual report, in the form duly prescribed for the purpose, to prove that he has 
maintained his investment in the country, should said alien withdraw his 
investments from the Philippines, then the investor's visa issued to him shall 
automatically expire.”
SEC. 4. Section 13 of Republic Act No. 9728, as amended, is hereby further 
amended to read as follows:
“Sec. 13. Powers and Functions of AFAB. - The AFAB shall have the following 
functions:
(a) To adopt, alter, use a corporate seal, to contract, lease, buy, sell, acquire, 
own and dispose properties of whatever nature. THE AFAB IS AUTHORIZED 
TO SELL LANDS THAT ARE DECLARED ALIENABLE AND DISPOSABLE 
PURSUANT TO THE PROVISIONS OF EXISTING LAWS AND 
REGULATIONS GOVERNING SALES OF GOVERNMENT PROPERTIES: 
PROVIDED, THAT, NO SALE OF SUCH LANDS WILL BE UNDERTAKEN 
UNTIL A DEVELOPMENT PLAN IS SUBMITTED AND DULY APPROVED BY 
THE AFAB BOARD OF DIRECTORS IN ACCORDANCE WITH THE FAB 
COMPREHENSIVE MASTER DEVELOPMENT PLAN;
(b) To sue and be sued in order to carry out its duties, responsibilities, privileges, 
powers and functions as granted and provided for in this Act and to exercise the 
power of eminent domain for public use and public purpose OVER ANY 
PRIVATELY-OWNED PROPERTY LOCATED WITHIN THE FAB MAIN ZONE 
AND SUCH OTHER AREAS WITHIN THE PROVINCE OF BATAAN, 
SUBJECT TO THE REQUIREMENTS OF THE CONSTITUTION AND 
PREVAILING LAWS;


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XXX
(f) To authorize or undertake, on its own or through others, and to regulate the 
establishment, construction, operation and maintenance of public utilities, 
services, and infrastructure in the FAB such as TRANSSHIPMENT HUBS, 
shipping, barging, stevedoring, cargo handling, hauling, warehousing, storage 
of cargo, PORTS, port services or concessions, piers, wharves, bulkheads, bulk 
terminals, mooring areas, storage areas, roads, bridges, reclamation projects, 
terminals, conveyors, water supply and storage, sewerage, drainage, airport 
operations in coordination with the Civil Aviation Authority of the Philippines and 
such other services or concessions or infrastructure necessary or incidental to 
the accomplishment of the objectives of this Act: Provided, however, That the 
private investors in the FAB shall be given priority in the awarding of contracts, 
franchises, licenses, or permits for the establishment, operation and 
maintenance of utilities, services and infrastructure in the FAB;
(G) TO RECLAIM AND DEVELOP, OR TO UNDERTAKE, ON ITS OWN OR 
THROUGH OTHERS, AND APPROVE RECLAMATION AND RELATED 
PROJECTS, IN ACCORDANCE WITH RELEVANT LAWS, AS WELL AS TO 
OWN, HOLD, PURCHASE OR LEASE FORESHORE AREAS WITHIN, 
ADJACENT, OR APPROXIMATE TO THE AREAS: PROVIDED, HOWEVER, 
THAT THE AFAB SHALL COORDINATE WITH THE LGUS FOR THE 
DEVELOPMENT PLANS, ACTIVITIES AND OPERATION OF THE 
RECLAIMED AREA IN THE FAB AND ITS EXPANSION AREAS. 
RECLAMATION PROJECTS AND ACTIVITIES HEREIN THAT EXTEND TO 
MUNICIPAL WATERS WHICH ARE CONNECTED, ADJACENT AND 
CONTIGUOUS TO THE FAB SHALL STILL BE UNDER ITS REGULATION 
AND ADMINISTRATION, SUBJECT TO APPLICABLE LAWS, RULES, AND 
REGULATIONS;
(H) TO TAKE WATER, SAND, AND OTHER MATERIALS FROM ANY 
PUBLIC STREAM, RIVER, CREEK, LAKE, SPRING, WATERFALL, OR 
UNDERGROUND AQUIFERS, AS MAY BE NECESSARY FOR THE 
ATTAINMENT OF THE ACT; TO ALTER, STRAIGHTEN, OBSTRUCT OR 
INCREASE THE FLOW OF WATER IN STREAMS OR IN WATER 
CHANNELS INTERCEPTING OR CONNECTING THEREWITH OR 
CONTIGUOUS TO ITS WORKS OR ANY PART THEREOF; AND TO ISSUE 
THE CORRESPONDING WATER PERMITS AND OTHER CLEARANCES IN 
RELATION TO THE FOREGOING, SUBJECT TO APPLICABLE LAWS, 
RULES, AND REGULATIONS;
(I) TO EXERCISE SOLE AND EXCLUSIVE PORT REGULATORY AND 
ADMINISTRATIVE AUTHORITY WITHIN ITS TERRITORIAL JURISDICTION, 
WHICH SHALL INCLUDE ALL SEAS, LAKES, RIVERS, AND ALL OTHER 
NAVIGABLE INLAND WATERWAYS WITHIN THE FAB MAIN ZONE AND ITS 
EXPANSION AREAS, INCLUDING WATERWAYS WITHIN THE FAB MAIN 
ZONE AND ALL ITS EXPANSION AREAS IN THE PROVINCE OF BATAAN, 
SUBJECT TO APPLICABLE LAWS, RULES, AND REGULATIONS;


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[§] (J) To license, set fees, regulate, MANAGE, and undertake the 
establishment, operation and maintenance of utilities, other services, 
educational and medical institutions and infrastructure in the FAB such as, but 
not limited to, heat, light and power, water supply, telecommunications, mobile, 
internet and other data facilities, MICROGRIDS, EMBEDDED POWER 
PLANTS, transport, toll roads and bridges, port services, etc. and to fix just, 
reasonable and competitive rates, fares, charges and prices thereof;
[h] (K) To construct, acquire, own, lease, operate and maintain on its own or 
through contracts, franchises, licenses, bulk purchase from the private sector 
and build-operate-transfer scheme, or under a joint venture with the private 
sectors, any or all of the public utilities and infrastructure required or needed for 
the operation and development of the FAB, including transportation, access, 
and connection to, and out of the FAB, in coordination with appropriate national 
and local government authorities and in conformity with applicable laws thereon. 
For this purpose, the AFAB shall exercise the power of eminent domain over 
private lands granted in paragraph (b) of this section insofar as it may be 
reasonably necessary, without prejudice to the execution of agreements with 
public agencies, and subject to the limitations prescribed therein and the 
observance of the prerequisites of taking of possession and the determination 
and payment of just compensation in accordance with Republic Act No. 10752, 
otherwise known as “The Right-of-Way- Act.” ALL ACCESS TO AND FROM 
THE FAB, WHETHER BY AIR, SEA OR LAND, SHALL BE UNDER THE 
JURISDICTION AND REGULATION OF THE AFAB, SUBJECT TO 
APPLICABLE LAWS, RULES, AND REGULATIONS;
[t] (L) To operate on its own, either directly or through a license to other tourism 
- related activities, including games, amusements, recreational and sports 
facilities [subject to the-appr-oval and supervision of the Philippine Amusement 
and Gaming Corporation (PAGGQR)];
[j] (M) XXX
[k] (N) To exclusively enforce and administer the provisions of the National 
Building Code of the Philippines and the Fire Code of the Philippines, as 
amended. IT MAY PRESCRIBE MEASURES AND GUIDELINES TO DEAL 
WITH NATURAL CALAMITIES, SUCH AS EARTHQUAKES, FOREST FIRES, 
TYPHOONS AND STORM SURGES, within the territorial jurisdiction of the 
FAB: Provided, That the AFAB shall be fully responsible and accountable for the 
enforcement and administration of the National Building Code of the Philippines 
and the Fire Code of the Philippines, as amended, AND RELEVANT LAWS 
THERETO within the FAB. FOR THIS PURPOSE, THE AFAB FIRE AND 
EMERGENCY DIVISION AND ITS DULY AUTHORIZED REPRESENTATIVES 
SHALL HAVE THE POWERS AND DUTIES TO INVESTIGATE ARSON AND 
OTHER FIRE INCIDENTS WITHIN THE FAB, INCLUDING THOSE IN FAB 
EXPANSION AREAS.
The AFAB Administrator, or his official designate, shall function as the AFAB 
Building Official, who shall issue all building permits and other related permits 
subject to the collection by AFAB of the corresponding permit fees: Provided,


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That the AFAB Building Official shall also be authorized to require owners of 
houses, buildings, or other structures constructed without the necessary AFAB 
permit/s, or those that are condemned and/or abated by the AFAB in 
accordance with the conditions set forth in the National Building Code or Civil 
Code, as the case may be, whether constructed on public or private lands, to 
remove or demolish such houses, buildings, or structures within fifteen (15) 
days from receipt of notice. Upon failure of such owner to remove or demolish 
such house, building, or structure within such period, the AFAB may summarily 
cause its removal or demolition at the expense of the owner and the occupants.
The AFAB may evict any person who refuses to vacate such premises in 
accordance with Republic Act No. 7279, otherwise known as the Urban 
Development and Housing Act of 1992,” and other existing laws. A temporary 
or permanent relocation site shall be made available for qualified individuals or 
families.
[t] (O) To [provide] BE THE PRINCIPAL PROVIDER OF security IN the FAB in
coordination with the national and local governments. For this purpose, the 
AFAB may establish and maintain its security forces and firefighting capability 
or hire others to provide the same, SUCH AS THE INSTALLATION OF 
SECURITY GATES TO ENCLOSE, RESTRICT, AND REGULATE THE 
INGRESS TO AND EGRESS FROM LOCAL AND NATIONAL ROADS. In the 
event that an assistance of the military force is necessary, it shall not interfere 
in the internal affairs of the FAB except to provide the necessary security and 
defense, and their expenses shall be borne by the National Government. To 
ensure the maintenance of law and order within the boundaries of the FAB, 
including conducting police investigations, arrests, search and seizure for 
violation of penal laws inside the FAB, the AFAB MAY SEEK ASSISTANCE 
FROM the Philippine National Police (PNP) WHICH shall establish a police 
substation, [if necessary], THAT SHALL BE under the supervision of the PNP 
Provincial Director, to be manned by such number of personnel as will allow 
them to effectively and efficiently pursue its mandate.
The AFAB shall also be authorized to install control gates at strategic points of 
the national roads within the FAB, through which access into and departure from 
the FAB shall be fully controlled by the AFAB;
[m] (P) To protect, preserve, maintain and develop the forests, beaches, coral 
and coral reefs, and maintain ecological balance within the FAB. For this 
purpose, the rules and regulations of the Department of Environment and 
Natural Resources (DENR) and other government agencies involved in the 
above functions shall be implemented by the AFAB: Provided, That the 
issuance, enforcement and monitoring of environmental compliance certificates 
(ECCs), tree cutting permits, foreshore leases, MISCELLANEOUS LEASES, 
and all other related permits and clearances, AS WELL AS THE PERMIT TO 
OPERATE AIR POLLUTION SOURCE AND CONTROL INSTALLATION, AND 
IMPLEMENTATION PERTAINING TO THE ISSUANCE OF DISCHARGE 
PERMIT, WATER PERMIT AND DRILLING PERMITS, AND ALL OTHER 
RELATED PERMITS [issued by the DENR and-other--government agencies]


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shall be under the exclusive control and jurisdiction of the AFAB, SUBJECT TO 
APPLICABLE LAWS, RULES AND REGULATIONS;
[r] (Q) X X X
[e] (R) X X X 
M (S) X X X
[cf] (T) To recommend the issuance of working visas renewable every three (3) 
years to foreign executives and foreign technicians with highly specialized skill 
which no Filipino possesses, SUBJECT TO THE PROVISIONS OF THE 
LABOR CODE OF THE PHILIPPINES AND [subject to] the issuance of the 
Certification and Alien Employment Permit by the Department of Labor and 
Employment (DOLE);
[f] (U) X X X
[s] (V) X X X
[t] (W) TO ISSUE ON ITS OWN, OR to endorse THE ISSUANCE OF, Special 
Resident Retirees’ Visas (SRRVS) for retirees that intend to reside in the FAB, 
in collaboration with the Philippine Retirement Authority (PRA): Provided, That 
the AFAB shall issue joint regulations WITH OTHER RELEVANT 
GOVERNMENT AGENCIES on the processing of SRRVs in accordance with 
existing laws;
[u] (X) To establish, operate and maintain utilities, facilities, infrastructure, 
services, businesses, activities, and concessions in the FAB, pertaining to 
shipping and maritime business and activities including stevedoring and port 
terminal services or concession: Provided, That the Maritime Industry Authority 
(MARINA) shall continue to exercise its power to regulate and supervise the 
shipbuilding and ship repair of any merchant marine vessel operated or to be 
operated in the domestic trade and the domestic shipping industry within the 
FAB;
(Y) TO UNDERTAKE, ON ITS OWN OR THROUGH OTHERS, REGULATE 
AND ADMINISTER YACHT CLUBS OR YACHT DEVELOPMENT FOR 
BERTHING FACILITIES TO BE ESTABLISHED IN THE FAB; TO REGISTER 
BOAT AND YACHTS OF INDIVIDUALS, JOINT OWNERS, CORPORATIONS, 
AND YACHTING ENTITIES FROM ANY COUNTRY, WHETHER FOR 
PERSONAL, BAREBOAT OR COMMERCIAL USE, DOCKING, BERTHING 
OR ENTERING THE FAB’S TERRITORIES AND IN RELATION THERETO, 
MAINTAIN THE CORRESPONDING OPEN VESSEL REGISTRY, SUBJECT 
TO APPLICABLE LAWS, RULES, AND REGULATIONS;
(Z) TO HOST, FACILITATE, GIVE INCENTIVES TO, AND REGULATE NEW, 
EMERGING AND FUTURE TECHNOLOGIES IN THE FAB, SUBJECT TO 
APPLICABLE LAWS, RULES, AND REGULATIONS;


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[v] (AA) XXX
[w] (BB) XXX
[x] (CC) X X X”
SEC. 5. Section 14 of Republic Act No. 9728, as amended, is hereby further 
amended to read as follows:
“Sec. 14. Board of Directors of the AFAB. - The powers of the AFAB shall be 
vested in and exercised by a Board of Directors, hereinafter referred to as the 
Board, which shall be composed of the following:
(a) XXX
(b) XXX
(c) Members consisting of:
(1) XXX
(2) XXX
(3) One (1) from the district covering the site of the FAB
MAIN ZONE;
(4) XXX
(5) One (1) representative from the [AFAB-Registered] 
domestic investors
(6) One (1) representative from the [AFAB-Registered] 
foreign investors
(7) One (1) representative from the [workers working-m the
FAB] LABOR SECTOR
Provided, That all members of the Board shall be Filipino citizens.
The administrator and the members of the Board, shall be appointed by the 
President of the Philippines to serve for a term of six (6) years, WITH THE 
RIGHT TO HOLD OVER UNTIL REPLACEMENT SHALL HAVE BEEN DULY 
APPOINTED AND QUALIFIED, unless sooner separated from service due to 
death, voluntary resignation or removal for cause. In case of death, resignation 
or removal for cause, the replacement shall serve only the unused portion of 
the term.
No person shall be appointed by the President of the Philippines as a member 
of the Board unless he is a Filipino citizen, of good moral character, of proven 
probity and integrity, and a degree holder in any of the following fields: 
economics, business, public administration, law, management or their 
equivalent, and with at least ten (10) years relevant working experience 
preferably in the field of management or public administration.
The members of the Board shall each receive per diem at rates to be determined 
by the Department of Budget and Management (DBM) in accordance with 
existing rules and regulations: Provided, however. That the total per diem 
collected each month shall not exceed the equivalent per diem for four (4) 
meetings.”
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SEC. 6. Section 15 of Republic Act No. 9728, as amended, is hereby further 
amended to read as follows:
“Sec. 15. Powers and Duties of the Administrator. - The administrator shall 
have the following powers and duties:
(a) xxx;
(b) xxx;
(c) xxx;
(d) xxx;
(e) xxx;
(f) xxx; bb4
(G) TO SIGN AND EXECUTE ALL CONTRACTS CONCLUDED BY THE 
AFAB AND ENTER INTO ALL NECESSARY OBLIGATIONS REQUIRED OR 
PERMITTED BY THE CHARTER UPON PROPER AUTHORIZATION BY THE 
BOARD, UNLESS OTHERWISE PROVIDED; AND
[§] (H) To perform such other duties as may be assigned to him by the Board 
or which are necessary or incidental to his office.”
SEC. 7. Section 21 of Republic Act No. 9728, as amended, is hereby further 
amended to read as follows:
“Sec. 21. Capitalization. - The capital stock to be contributed by the 
Government shall be (a) [Twe] FIVE billion pesos (Php [2] 5,000,000,000.00), 
with option to increase capitalization upon the discretion of the AFAB, (b) All 
lands embraced and covered by the FAB, including those properties conveyed 
to the Government Service Insurance System (GSIS) and/or the Social Security 
System (SSS) under Proclamation No. 740, as amended by Proclamation No. 
900, as well as permanent improvements and fixtures upon proper inventory 
not otherwise alienated, conveyed, or transferred to another government 
agency; and (c) All other assets which the President may transfer to the AFAB 
as part of the equity contribution of the government.”
SEC. 8. Section 24 of Republic Act No. 9728, as amended, is hereby amended 
to read as follows:
“Sec. 24. Relationship with Local Government Units. - Except as herein 
provided, the [Municipality of Mariveles] MUNICIPALITIES in the Province of 
Bataan WHERE THE FAB MAIN ZONE AND ITS EXPANSION AREAS ARE 
LOCATED shall operate and function SEPARATELY AND INDEPENDENTLY 
FROM THE AFAB, in accordance with the Local Government Code of 1991. 
ALL ECONOMIC AND NON-ECONOMIC ACTIVITIES WITHIN THE FAB 
MAIN ZONE AND ITS EXPANSION AREAS SHALL BE UNDER THE DIRECT 
AND EXCLUSIVE CONTROL, ADMINISTRATION AND JURISDICTION OF 
THE AFAB, EXCEPT FOR NECESSARY COORDINATION AND 
COOPERATION WITH LGUS TO MIRROR EFFORTS OF THE NATIONAL 
GOVERNMENT.”
SEC. 9. Section 26 of Republic Act No. 9728, as amended, is hereby amended 
to read as follows:


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“Sec. 26. Interpretation/Construction. - The powers, authorities and functions 
that are vested in the AFAB are intended to establish decentralization of 
governmental functions and authority and promote an efficient and effective 
working relationship between the AFAB, the National Government and the LGU.
IN CASE OF ANY CONFLICT BETWEEN THE AFAB AND THE LOCAL 
GOVERNMENT UNITS (LGUS) ON MATTERS AFFECTING THE FAB 
OTHER THAN DEFENSE AND SECURITY MATTERS, THE DECISION OF 
THE AFAB SHALL PREVAIL.”
SEC. 10. Section 29 of Republic Act No. 9728, as amended, is hereby amended 
to read as follows:
“Sec. 29. Implementing Rules and Regulations. - THE AFAB BOARD OF 
DIRECTORS, JOINTLY WITH THE DTI, the DOF, the LGU and the Department 
of the Interior and Local Government, shall formulate the implementing rules 
and regulations of this Act within ninety (90) days after its approval. Such rules 
and regulations shall take effect fifteen (15) days after their publication in a 
newspaper of general circulation in the Philippines.”
SEC. 11. Separability Clause. - If any provision of this Act is declared invalid 
or unconstitutional, the other provisions not affected thereby shall remain in full force 
and effect.
SEC. 12. Repealing Clause. - All laws, decrees, executive issuances, and 
rules and regulations inconsistent with the provisions of this Act are hereby repealed 
or modified accordingly.
SEC. 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,
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