NINETEENTH CONGRESS OF THE 
REPUBUC OF THE PHILIPPINES 
Second Regular Session
)
)
)
SENATE 
S. No. 257S
24 FEB 26 P4 :44
(In substitution of Senate Bill Nos. 1013, 2266, 2524, taking into consideration
House Bill No. 8841)
Prepared and submitted jointly by the Committees on Economic Affairs; Local 
Government; Ways and Means; and Finance with Senators Marcos, Zubiri, Villanueva, 
and Poe as authors thereof
AN ACT
ESTABLISHING THE BULACAN AIRPORT CITY SPECIAL ECONOMIC ZONE 
AND FREEPORT IN THE PROVINCE OF BULACAN, CREATING FOR THE 
PURPOSE THE BULACAN AIRPORT CITY SPECIAL ECONOMIC ZONE AND 
FREEPORT AUTHORITY, AND APPROPRIATING FUNDS THEREFOR
Be it enacted by We Senate and House of Representatives of the Philippines in 
Congress ass&nbied:
1 
CHAPTER I
2 
GENERAL PROVISIONS
3 
SECTION 1. Short Title. - This Act shall be known as the "Bulacan Airport
4 
City Speciai Economic Zone and Freeport Act".
5 
SEC. 2. Declaration of Policy. - It is declared the policy of the State to
6 
encourage, promote, and accelerate the sound and balanced industrial, economic and
7 
social development of the country. The establishment of a strategically-located,
8 
master-planned, and value-creation-oriented special economic zone shall attract
9 
legitimate and productive foreign investments that generate employment and increase
10 
productivity and individual, as well as family incomes, thereby enhancing the quaiity
11 
of life of the Filipino people.
12 
CHAPTER II. CREATION OF THE ECONOMIC ZONE AND FREEPORT
13 
SEC. 3. Creation of the Bulacan Airport City Special Economic Zone
14 
and Freeport. - In accordance with the foregoing declared State policy, there is


1 
hereby established a Special Economic Zone and Freeport, hereinafter referred to as
2 
the "Bulacan Ecozone."
3 
The Bulacan Ecozone shall cover:
4 
(a) the Airport Project and the Airport City Project, as defined under, and to be
5 
developed pursuant to Sections 1 and 6 of Republic Act (RA) No. 11506,
6 
otherwise known as "An Act Granting San Miguel Aerocity Inc. A Franchise to
7 
Construct, Develop, Establish, Operate and Maintain a Domestic and
8 
International Airport in the Municipality of Bulakan, Province of Bulacan, and to
9 
Construct, Develop, Establish, Operate, and Maintain an Adjacent Airport City,"
10 
respectively;
11 
(b) the remaining land territories of the cities of Malolos and Meycauayan, and of
12 
the municipalities of Bulakan, Paombong, Guiguinto, Balagtas, Bocaue, Marilao,
13 
Obando, and Sta. Maria, in the Province of Bulacan, that are not yet included
14 
as component parts of the Airport Project and the Airport City Project; and
15 
(c) all other expansion areas or municipalities, whose metes and bounds shall be
16 
clearly defined through a Presidential Proclamation, within the Province of
17 
Bulacan and surrounding areas which may be declared as part of the Bulacan
18 
Ecozone in compliance with Section 7(e) of this Act.
19 
SEC. 4. Creation of the Bulacan Airport City Special Economic Zone
20 
and Freeport Authority. - There is hereby created a body corporate to be known
21 
as the "Bulacan Airport City Special Economic Zone and Freeport Authority,"
22 
hereinafter referred to as the BACSEZFA, which shall manage and operate the Bulacan
23 
Ecozone, in accordance with the provisions of this Act: Provided, That the
24 
management and operations of any existing Philippine Economic Zone Authority
25 
(PEZA)-supervised economic zones in the Bulacan Ecozone shall remain with PEZA:
26 
Provided, further. That existing PEZA-registered locators within the Bulacan Ecozone
27 
shall have the option to register with PEZA or the BACSEZFA: Provided, finally. That
28 
the management and operations of the Airport Project and the Airport City Project
29 
shall be in accordance with RA 11506.
30 
It shall be organized within one hundred eighty (180) days upon the effectivity
31 
of this Act.


1 
SEC. 5. Land Use, Planning, and Development. - Any provision of existing
2 
laws, ordinances, executive orders, rules or regulations to the contrary
3 
notwithstanding, lands located in Barangay San Nicolas in the Municipality of Bulakan,
4 
in Barangay Ubihan and Barangay Liputan, in the City of Meycauayan, in Barangay
5 
Abangan Norte, Barangay Abangan Sur, and Barangay Nagbalon, in the Municipality
6 
of Marilao, and in Barangay Salambao, Barangay Binuangan, Barangay Tawiran,
7 
Barangay Paco, Barangay Lawa, Barangay San Pascual, Barangay Paliwas, Barangay
8 
Pag-Asa (Poblacion), Barangay Catanghalan, Barangay Panghulo, in the Municipality
9 
of Obando, are hereby declared as alienable and disposable, and may be used for
10 
industrial, commercial, or other lawful uses.
11 
To ensure the efficient and sustainable development of areas covered, and
12 
proper inter-local development and coordination, the BACSEZFA shall establish the
13 
general framework for land use, planning, and development for the area covered by
14 
the Bulacan Ecozone. The framework shall abide by the following principles:
15 
(a) The general framework shall maintain an optimal balance between economic
16 
maximization and ecological protection;
17 
(b) The framework shall provide for the development of necessary transport,
18 
sanitation, waste management, flood control, and support infrastructure; and
19 
(c) The framework shall include criteria for the designation or subdivision of the
20 
area covered into various zones for commercial, industrial, residential, or other
21 
uses;
22 
The BACSEZFA shall establish under it a land use, planning, and development
23 
office or unit to craft, revise, and implement the framework.
24 
Local, regional, and national plans for the uses and development of the areas
25 
covered by the Bulacan Ecozone shall be consistent with the framework established
26 
by the BACSEZFA. The BACSEZFA shall also be involved in the crafting of local,
27 
regional, and national land use, zoning, and development plans which partially or fully
28 
cover the area of the Bulacan Ecozone, or which cover means of access to the Bulacan
29 
Ecozone.
30 
SEC. 6. Registration with the BACSEZFA. - Prospective locators within the
31 
Bulacan Ecozone may register with the BACSEZFA and qualify for business incentives
32 
in accordance with RA 11534 or the CREATE law: Provided, That the Airport Project


1 
and the Airport City Project shall remain covered by RA 11506, including the incentives
2 
and regulatory regime provided therefor.
3 
SEC. 7. Governing Principles. - The BACSEZFA, created under Section 4 of
4 
this Act, shall manage and operate the Bulacan Ecozone under the following principles:
5 
(a) Within the framework and limitations of the Constitution and applicable
6 
provisions of RA 7160, or the "Local Government Code of 1991," as amended,
7 
the Bulacan Ecozone shall be developed into and operated as a decentralized,
8 
self-reliant and self-sustaining aviation hub, industrial, commercial, trading,
9 
agro-industrial, tourism, retirement, banking, financial and investment center,
10 
emerging and future technologies, with suitable residential areas;
11 
(b) Notwithstanding the autonomy provided in Section 7(a) of this Act, the Bulacan
12 
Ecozone may continue to be provided by the National Government (NG) and
13 
local government and shall be equipped with transportation,
14 
telecommunications, and other facilities needed to attract legitimate and
15 
productive investments, generate linkage industries and employment
16 
opportunities for the people of the Province of Bulacan, and its neighboring
17 
towns and cities: Provided, That the development of the Bulacan Ecozone shall
18 
be integrated and consistent with the plans of the National Government
19 
Agencies (NGAs), Regional Development Council (RDC), and LGUs with respect
20 
to transportation, telecommunications infrastructure and other facilities:
21 
Provided, further. That access to the Bulacan Ecozone shall be incorporated in
22 
the planning, construction, and operation of such infrastructure or expansions;
23 
(c) The Bulacan Ecozone may establish mutually beneficial economic relations with
24 
other entities or enterprises within the country or, subject to the administrative
25 
guidance of the Department of Foreign Affairs (DFA), the Philippine Economic
26 
Zone Authority (PEZA), and the Department of Trade and Industry (DTI), with
27 
foreign entities or enterprises;
28 
(d) Subject to existing laws, rules and regulations, foreign citizens and companies
29 
owned by non-Filipinos may set up enterprises in the Bulacan Ecozone, either
30 
by themselves or in a joint venture with Filipinos in any sector of industry,
31 
international trade and commerce within the Bulacan Ecozone;


1 
(e)The areas comprising the Bulacan Ecozone may be expanded or reduced when
2 
necessary through a presidential proclamation with the concurrence through
3 
local legislation by the concerned LGU; Provided, that the acquisition by the
4 
BACSEZFA of lands distributed under the Comprehensive Agrarian Reform
5 
Program shall be subject to existing laws, rules, and regulations;
6 
(f) Goods manufactured by a Bulacan Ecozone enterprise shall be made available
7 
for immediate retail sale in the domestic market, subject to the payment of
8 
corresponding taxes on raw materials and other regulations that may be
9 
formulated by the BACSEZFA, the Bureau of Customs (BOC) and the DTI.
10 
However, in order to protect domestic industries, a Negative List of industries
11 
shall be drawn up and regularly updated by the Interagency Investment
12 
Promotion Coordination Committee (IIPCC), pursuant to RA 7042, or the
13 
"Foreign Investments Act of 1991," as amended, and other relevant laws, rules,
14 
and regulations. Enterprises engaged in industries included in such Negative
15 
List shall not be allowed to sell their products locally; and
16 
(g)The defense of the Bulacan Ecozone and the security of its perimeter, peace
17 
and order, firefighting and disaster response, shall be the responsibility of the
18 
NG in cooperation with the BACSEZFA and the LGUs: Provided, That, for the
19 
costs of securing the Bulacan Ecozone, the Office of the President (OP) shall,
20 
upon the recommendation of the Department of Finance (DOF), establish a
21 
cost-sharing scheme between the BACSEZFA and the relevant NGAs.
22 
SEC. 8. Separate Customs Territory. - The Bulacan Ecozone shall be
23 
managed and operated as a separate customs territory thereby ensuring the free flow
24 
or movement of goods and capital within, into, and out of its territory, and shall
25 
likewise provide incentives such as tax and duty-free importations of raw materials
26 
and capital equipment to registered enterprises located therein, as provided under
27 
Republic Act No. 11534, otherwise known as the "Corporate Recovery and Tax
28 
Incentives for Enterprises Act". The exportation or removal of goods from the territory
29 
of the Bulacan Ecozone to the other parts of the Philippine territory shall be subject
30 
to customs duties and taxes under the Customs Modernization and Tariff Act and other
31 
relevant tax laws of the Philippines.


1 
The BOC shall continue to exercise border protection and customs control
2 
authority over the customs territory outside the Bulacan Ecozone: Provided, That the
3 
BACSEZFA shaii allow patrol or other law enforcement arrangements by the BOC and
4 
other government agencies within the municipal waters covered by the Bulacan
5 
Ecozone subject to coordination with the BACSEZFA to enhance its protection and
6 
control capacity and ensure compiiance with customs, fisheries, and other iaws and
7 
reguiations.
8 
SEC. 9. Development Goals of the Bulacan Ecozone. - The BACSEZFA
9 
shall include in its deveiopment goals for the Bulacan Ecozone the construction and
10 
operation of a domestic and internationai airport and allied businesses within the
11 
framework of national development plans, policies and goals. The Administrator shaii,
12 
upon approval by the Board of Directors of the BACSEZFA, submit the Buiacan Ecozone
13 
plans, programs and projects to the RDC for inclusion and inputs to the overaii regionai
14 
deveiopment plan.
15 
SEC. 10. Capitalization. - The BACSEZFA shall have an authorized capital
16 
stock of two billion (2,000,000,000.00) no par shares at a minimum issue of Ten Pesos
17 
(PIO.OO) each, the majority shares of which shaii be subscribed and paid for by the
18 
NG and the LCDs embracing the Bulacan Ecozone.
19 
The capital of BACSEZFA shall consist of:
20 
(a) its assets and such other properties as may be contributed to the Authority by
21 
the Government to form part of capitai;
22 
(b) all capitalized surpius;
23 
(c) any cash contribution by the Government; and
24 
(d) any budgetary outlay allocated and released in favor of BACSEZFA.
25 
Thereafter, any sum as may be necessary to augment its capital outlay shall be
26 
included in the General Appropriations Act to be treated as an equity of the NG.
27 
Additional funding shall come from the following:
28 
i. The annual subsidies, appropriations and/or other assets of the Buiacan
29 
Ecozone;
30 
ii. The proceeds from the rent of iands, buiidings, and other properties of the
31 
Bulacan Ecozone;


1 
iii. The proceeds from fees, charges and other revenue-generating instruments
2 
which the Bulacan Ecozone is authorized to impose and collect under this Act;
3 
iv. The proceeds from bonds which the Bulacan Ecozone is authorized to float both
4 
domestic and abroad; and
5 
V. The advance rentals, license fees, and other charges which the Bulacan
6 
Ecozone is authorized to impose under this Act and which an investor is willing
7 
to advance payment for.
8 
The Board of Directors of the BACSEZFA may, with the authorization of the
9 
President, and subject to the concurrence and prescribed manner of disposition by the
10 
Secretary of Finance, sell shares, representing not more than forty per centum (40%)
11 
of the capital stock of the BACSEZFA to the general public under such policy as the
12 
Board and the Secretary of Finance may determine. The NG and LGUs shall in no case
13 
own less than sixty per centum (60%) of the total issued and outstanding capital of
14 
the BACSEZFA: Provided, That the sale of shares to the public shali, in no manner,
15 
alter the composition of the BACSEZFA Board.
16 
SEC. 11. Revenue Sharing. - To ensure sufficient funds, BACSEZFA and the
17 
affected LGUs shall be entitled to a share in the special corporate income tax (SCIT)
18 
or corporate income tax under the Enhanced Deduction regime under Title XIII of the
19 
National Internal Revenue Code (NIRC) of 1997, as amended, from all registered
20 
business enterprises registered with the BACSEZFA. For this matter, the said corporate
21 
income tax collected shall be divided as follows:
22 
(a) Forty percent (40%) to the NG, and which shall be directly remitted to the NG:
23 
Provided, That the revenue sharing under this Section shall be considered
24 
compliance with Section 284 of the Locai Government Code of 1991, as
25 
amended, and shall no longer be further divided for purposes of the Nationai
26 
Tax Allotment;
27 
(b) Twenty percent (20%) to the BACSEZFA, earmarked for infrastructure
28 
deveiopment projects of the BACSEZFA as determined by its Board of Directors,
29 
consistent with the principles and purposes of this Act; and
30 
(c) Forty percent (40%) to the concerned local government: Provided, That the
31 
local government share from revenues derived from BACSEZFA-registered
32 
locators who availed of incentives under RA 11534, or the "Corporate Recovery


1 
and Tax Incentives for Enterprises Act", in component cities or municipalities
2 
shall be allocated among the LGUs of the Bulacan Ecozone using the formula
3 
prescribed under Section 285 of the Local Government Code of 1991, as
4 
amended.
5 
The share of the NG shall be paid by the locator directly to the Bureau of
6 
Internal Revenue (BIR). The share of the LGUs and the BACSEZFA shall be collected
7 
by the latter. The BACSEZFA shall remit the local government share on a quarterly
8 
basis.
9 
SEC. 12. Principal Office of the BACSEZFA. - The BACSEZFA shall maintain
10 
its principal office at the Airport City, but it may establish liaison offices within the
11 
Philippines as may be necessary for the proper conduct of its business.
12 
SEC. 13. Powers and Functions of the BACSEZFA. - The BACSEZFA shall
13 
have the following powers and functions:
14 
(a) Operate, administer, manage and develop the Bulacan Ecozone according to
15 
the principles and provisions set forth in this Act: Provided, That the
16 
management and operations of the Airport Project and the Airport City Project
17 
shall be in accordance with RA 11506;
18 
(b) Register, regulate and supervise the enterprises in the Bulacan Ecozone in an
19 
efficient and decentralized manner, subject to existing laws;
20 
(c) Coordinate with LGUs and exercise general supervision over the development
21 
plans, activities and operations of the Bulacan Ecozone; and adopt, prepare,
22 
and implement a comprehensive and detailed development plan with timelines
23 
and milestones that shall be consistent with the goals under Section 9 of this
24 
Act. The development plan shall include a list of projects for the sound and
25 
balanced operation of the Bulacan Ecozone consistent with ecological and
26 
environmental standards, proper waste management practices, effective flood
27 
control and management, mandatory water impoundment, and other
28 
productive uses to promote the economic and social development of the
29 
Municipality of Bulakan and its extensions in particular and the country in
30 
general;
31 
(d) Undertake the establishment, construction, operation and maintenance of
32 
public utilities, other services, and infrastructure in the Bulacan Ecozone such
8


1 
as light and power, shipping, barging, stevedoring, cargo handling, hauling,
2 
warehousing, storage of cargo, port services or concessions, piers, wharves,
3 
bulkheads, bulk terminals, mooring areas, storage areas, roads,
4 
telecommunications, transport, bridges, terminals, conveyors, water supply and
5 
storage, sewerage, and drainage: Provided, That such shaii be in compliance
6 
and coordination with the rules and regulations of the concerned departments
7 
and agencies;
8 
(e) Construct, acquire, own, lease, operate and maintain on its own or through
9 
contracts, franchise, licenses, bulk purchase from the private sector or permits
10 
under any of the schemes allowed in Republic Act No. 11966, otherwise known
11 
as the Public-Private Partnership (PPP) Code of the Philippines, adequate
12 
facilities and infrastructure required or needed for the operation and
13 
development of the Bulacan Ecozone, in coordination with appropriate national
14 
and local government authorities and in conformity with applicabie iaws
15 
thereon;
16 
(f) Approve plans, programs and projects of the Bulacan Ecozone, to be submitted
17 
to the RDC for inclusion and inputs to the overall regional development plan;
18 
(g) Operate on its own, either directiy or through licenses to others, tourism-related
19 
activities, including games, amusements, recreational and sports facilities;
20 
Provided, That any and all businesses that host games of chance and/or accept
21 
bets for monetary rewards, or any gambling or gaming-related activity that faiis
22 
under the mandate of the Phiiippine Amusement and Gaming Corporation
23 
(PAGCOR) or otherwise, including but not iimited to, animal fighting and racing,
24 
numbers games and small-town lotteries, casinos, slot machines or bingo
25 
parlors, and games that involve cards, roulette and dice, sports betting,
26 
offshore gaming operations, or any activities that support gaming or gambling,
27 
even if the same is regulated or licensed or allowed by Philippine laws cannot
28 
be registered with the BACSEZFA;
29 
(h) Raise or borrow, within the limitation provided by law, and subject to the
30 
approval of the Monetary Board of the Bangko Sentral ng Pilipinas (BSP), as
31 
the case may be, adequate and necessary funds from local or foreign sources,
32 
to finance its projects and programs under this Act and for this purpose, to


1 
issue bonds, promissory notes and other forms of securities, and to secure the
2 
same by a guarantee, pledge, mortgage, deed of trust or an assignment of all
3 
or part of its property or assets;
4 
(i) Protect, preserve, maintain, and develop the forests, beaches, coral and coral
5 
reefs, and maintain ecological balance within the Bulacan Ecozone. The rules
6 
and regulations of the Department of Environment and Natural Resources
7 
(DENR) and other government agencies involved in the above functions shall
8 
be implemented by the BACSEZFA; Provided, That the DENR shall continue to
9 
have primary authority and responsibility on environment protection; Provided
10 
further. That the monitoring and issuance of leases, permits, certificates,
11 
clearances, and all other environment related issuances by the DENR under its
12 
mandate shall remain under the jurisdiction of the Department;
13 
(j) Create, operate or contract to operate such functional units or offices of the
14 
BACSEZFA as it may deem necessary;
15 
(k) Adopt, alter and use a corporate seal; contract, lease, buy, acquire, own or
16 
otherwise dispose of personal and/or real property of whatever nature; sue and
17 
be sued; and otherwise carry out its functions and duties as provided for in this
18 
Act;
19 
(I) Issue certificates of origin for products manufactured or processed in the
20 
Bulacan Ecozone in accordance with prevailing rules of origin and the pertinent
21 
regulations of the PEZA, the DTI and the DOF;
22 
(m) Establish one-stop shops for the issuance of all necessary permits, clearances,
23 
licenses, and other similar certifications to conduct such activities intended to
24 
improve the ease of doing business within the Bulacan Ecozone, in coordination
25 
with government agencies having jurisdiction over activities therein: Provided,
26 
That all government agencies are directed to provide and extend utmost and
27 
full cooperation to the Bulacan Ecozone in the establishment of such one-stop
28 
shops;
29 
(n)To provide internal security to the Bulacan Ecozone, in coordination with the
30 
NG and affected LGU. For this purpose, the BACSEZFA shall provide and
31 
establish its own internal security and firefighting forces or hire others to
32 
provide the same;
10


1 
(o) Exercise such powers, subject to existing laws, rules, and regulations, as may
2 
be essential, necessary or incidental 
to the powers granted to It hereunder,
3 
including imposition of reasonable fees and penalties, that shall enable 
it to
4 
carry out, implement and accomplish the purposes, objectives and policies of
5 
this Act; and
6 
(p) Issue rules and regulations within the exercise of its powers under this Section,
7 
subject to existing laws, rules, and regulations.
8 
SEC. 14. Board of Directors of the BACSEZFA. - The powers of the
9 
BACSEZFA shall be vested in and exercised by a Board of Directors, composed of
10 
thirteen (13) members, hereinafter referred to as the Board, which shall be composed
11 
of the following:
12 
(a) The Chairperson of the BACSEZFA, who shall be elected from among the
13 
Members of the Board;
14 
(b)The Administrator of the BACSEZFA, who shall be appointed by the President
15 
of the Philippines and shall serve as the Vice-Chairperson;
16 
(c) Members consisting of:
17 
(1) A designated representative from the OP;
18 
(2) The Secretary or a designated representative of the DOF;
19 
(3) The Secretary or a designated representative of the DTI;
20 
(4) The Secretary or a designated representative of the National Economic and
21 
Development Authority (NEDA);
22 
(5) The Secretary or a designated representative of the DENR;
23 
(6) The Secretary or a designated representative of the Department of
24 
Transportation (DOTR);
25 
(7) The Governor, or a designated representative, of the Province of Bulacan;
26 
(8) The designated representative of the mayors of the cities and municipalities
27 
covering the Bulacan Ecozone, to be elected from among themselves;
28 
(9) The Chairperson or a designated representative of the Regional
29 
Development Council of Central Luzon;
30 
(10) One (1) independent director representing the private sector who has at
31 
least ten (10) years' experience in any of the following areas: business.
11


1 
trade, port and logistics operations, and freeport or economic zone
2 
operations;
3 
(11) One (1) representative from the workers in the Bulacan Ecozone; and
4 
(12) One (1) independent director representing the Airport Project and
5 
Airport City Project.
6 
The Administrator and the members of the Board shall be appointed by the
7 
President of the Philippines to serve for a term of six (6) years, unless sooner
8 
separated from service due to death, voluntary resignation or removal for cause. In
9 
case of death, resignation or removal for cause, their replacements shall serve only
10 
the unexpired portion of the respective terms.
11 
No person shall be appointed by the President of the Philippines as a member
12 
of the Board unless one is a Filipino citizen, of good moral character, and of proven
13 
probity and integrity. The Administrator and the independent director representing the
14 
Airport Project and Airport City Project shall be a degree-holder in any of the following
15 
fields: economics, business, public administration, law, management or their
16 
equivalent, and with at least ten (10) years relevant working experience preferably in
17 
the field of management or public administration.
18 
All benefits and emoluments of the members of the Board shall be subject to
19 
existing laws, rules, and regulations, including those prescribed by the Government
20 
Commission for Government-Owned or-Controlled Corporations.
21 
SEC. 15. Organization and Personnel. - The Board shall provide for its
22 
organization and staff. The Board shall appoint and fix the remuneration and other
23 
emoluments of its officers and employees in accordance with existing laws on
24 
compensation and position classification. The Board shall have exclusive and final
25 
authority to promote, transfer, assign, reassign, or remove officers of the BACSEZFA,
26 
any provision of existing law to the contrary notwithstanding. The Administrator shall
27 
execute the decisions of the Board.
28 
The officers and employees of the BACSEZFA, including all members of the
29 
Board except those holding elective offices, shall not engage directly or indirectly in
30 
partisan political activities nor take part in any election, except to vote.
12


1 
No officer or employee of the BACSEZFA, subject to civil service laws and
2 
regulations, shall be removed or suspended except for cause, as provided by Civil
3 
Service Law and Regulations.
4 
SEC. 16. Powers and Duties of the Chairperson. - The Chairperson shall
5 
have the following powers and duties:
6 
(a) Preside at all meetings of the Board;
7 
(b) Ensure that all policies, directives, plans, and programs formulated by the Board
8 
are faithfully carried out by the Administrator as Chief Executive Officer of
9 
BACSEZFA; and
10 
(c) Exercise such powers and perform such functions and duties as the President
11 
may direct, or as may be assigned to him by the BACSEZFA.
12 
SEC. 17. Powers and Duties of the Administrator. - The Administrator
13 
shall have the following powers and duties:
14 
(a) As Chief Executive Officer of the BACSEZFA, direct and manage the affairs of
15 
the BACSEZFA in accordance with the policies of the Board;
16 
(b) Establish the internal organization of the BACSEZFA under such conditions that
17 
the Board may prescribe;
18 
(c) Submit an annual budget and necessary supplemental budget to the Board for
19 
its approval;
20 
(d) Submit within thirty (30) days after the close of each fiscal year an annual
21 
report to the Board and such other reports as may be required;
22 
(e) Submit to the Board for its approval, policies, systems, procedures, rules and
23 
regulations that are essential to the operation of the Bulacan Ecozone;
24 
(f) Execute, administer, and implement the policies and measures approved and
25 
adopted by the Board;
26 
(g) Directly administer and supervise the operations and day-to-day business
27 
activities of the BACSEZFA;
28 
(h) Represent the BACSEZFA in all dealings with offices, agencies, and
29 
instrumentalities of the government and with all persons and entities, public or
30 
private, domestic or foreign, unless otherwise directed by the President or by
31 
the Board;
13


1 
(i) Execute, on behalf of the BACSEZFA, all contracts, agreements, and other
2 
instruments affecting the interests of the BACSEZFA duly approved by the
3 
Board;
4 
(j) Direct and supervise the preparation of the agenda for the meetings of the
5 
Board;
6 
(k) Preside at the meetings of the Board in the absence of the Chairperson;
7 
(I) Recommend to the Board the remuneration and other emoluments of its
8 
officers and employees in accordance with existing laws on compensation and
9 
position classification;
10 
(m) Create a mechanism in coordination with relevant agencies for the
11 
promotion of industrial peace, the protection of the environment, and the
12 
advancement of the quality of life in the Bulacan Ecozone; and
13 
(n) Perform such other duties as may be assigned by the Board or which are
14 
necessary or incidental to the office.
15 
SEC. 18. Legal Counsel. - The BACSEZFA shall have its own internal legal
16 
counsel under the supervision of the government corporate counsel. When the
17 
exigencies of its businesses and operations demand it, the BACSEZFA may engage the
18 
services of an outside counsel either on a case to case or on a fixed retainer basis,
19 
subject to compliance with existing laws, rules, and regulations.
20 
CHAPTER 111. INCENTIVES TO ECOZONE ENTERPRISES/INVESTORS
21 
SEC. 19. Investors and other Special Visas. - Foreign nationals who either
22 
intend to invest in the Bulacan Ecozone or possess highly specialized skills can apply
23 
for a special resident visa in the Bulacan Ecozone, subject to relevant labor and
24 
immigration laws, rules and regulations. The special resident visa shall be of two types:
25 
(a) The investor's visa; and (b) the special skills visa.
26 
(a) Special skills visa. - The BACSEZFA shall identify the highly specialized skills
27 
deemed necessary or strategic for the development of the Bulacan Ecozone.
28 
Managers and highly technical personnel required for the operation of the
29 
enterprises registered with the BACSEZFA shall also qualify for the special skills
30 
visa. Applications for the special skills visa shall be sponsored by registered
31 
business enterprises that require the expertise of the applicants.
14


1 
Foreign nationals who may serve as faculty members of Bulacan State
2 
University campuses and other government and private higher educational
3 
institutions within the Bulacan Ecozone shall also be eligible for the special
4 
resident visa subject to the rule on reciprocity. The educational institution, with
5 
concurrence from the Commission on Higher Education (CHED), shall sponsor
6 
the application of the applicant. The CHED shall promulgate the guidelines and
7 
eligibility requirements for applicants for the special skills visa who shall be
8 
faculty members of educational institutions in the Bulacan Ecozone.
9 
The BACSEZFA, DOLE, and the Bureau of Immigration (BI) shall
10 
formulate the necessary guidelines for the submission and approval of
11 
applications, as well as the monitoring of visa grantees under this paragraph.
12 
(b) Investors Visa. - Any foreign national who invests an amount of one hundred
13 
fifty thousand US dollars (US$ 150,000.00), either in cash and/or equipment,
14 
in a BACSEZFA-registered enterprise shall be entitled to an investor's visa to be
15 
issued by the Bureau of Immigration subject to the recommendation of the
16 
BACSEZFA and the endorsement of the Board of Investments: Provided, That
17 
the foreign national:
18 
(a) Must be at least eighteen (18) years of age;
19 
(b) Must not have been convicted by final judgment of a crime involving moral
20 
turpitude;
21 
(c) Must not be afflicted with any loathsome, dangerous or contagious disease;
22 
(d) Must not have been confined in an institution for any mental disorder or
23 
disability; and
24 
(e) Must be financially capable as borne out by credible and verifiable evidence.
25 
A foreign national shall be granted permanent resident status within the
26 
territorial coverage of the Bulacan Ecozone while the investment subsists. To prove
27 
this, the foreign national should submit an annual report in the form duly prescribed
28 
for the purpose. Should said investments be withdrawn from the Philippines, the
29 
investor's visa issued to said foreign nationai shall automatically expire or be
30 
withdrawn. The BACSEZFA may also recommend to the BI the grant of visas providing
31 
more favorable terms of residency to a foreign national who meets the criteria under
32 
this Section, subject to existing laws. The authority to issue visas and work permits
15


1 
shall remain with the BI and the Department of Labor and Employment (DOLE),
2 
respectively: Provided, That the BI and the DOLE shall implement measures to
3 
expedite the processing of such visas and permits for workers in the Bulacan Ecozone
4 
and coordinate with the BACSEZFA for the purpose of improving ease of doing
5 
business.
6 
SEC. 20. Fiscal Incentives. - Registered enterprises operating within the
7 
Bulacan Ecozone may apply for pertinent fiscal incentives granted under Titie XIII of
8 
the NIRC of 1997, as amended, and for such other fiscal incentives as may be provided
9 
by law: Provided, That the grant of fiscai incentives shall be subject to Section 292 of
10 
the NIRC of 1997, as amended.
11 
SEC. 21. Administration, Implementation and Monitoring of
12 
Incentives. - In the interest of enhancing transparency in the management and
13 
accounting of tax incentives in the Bulacan Ecozone, and ensuring the proper
14 
administration, management, enforcement, implementation and monitoring of tax
15 
incentives, the BACSEZFA shall comply with the provisions of Republic Act No. 10708,
16 
otherwise known as the 'Tax Incentives Management and Transparency Act (TIMTA)
17 
and its impiementing ruies and reguiations; RA 11534, otherwise known as the
18 
"Corporate Recovery and Tax Incentives for Enterprises Act," and its implementing
19 
rules and regulations; and other ruies, regulations, and issuances made by the Fiscal
20 
Incentives Review Board, pursuant to Chapter III, Title XIII of the NIRC of 1997, as
21 
amended.
22 
The BOC shall set up and establish a customs-controlled area outside the
23 
premises of the Bulacan Ecozone to facilitate payment of duties and taxes on goods
24 
entering the Philippine customs territory: Provided, That notwithstanding the
25 
limitations on this Act, the BACSEZFA and BOC may coordinate and jointly implement
26 
measures on border protection.
27 
SEC. 22. Banking Rules and Regulations. - Banks and financial institutions
28 
to be established in the Bulacan Ecozone shall be under the supervision of the BSP
29 
and subject to existing banking laws, rules and regulations.
30 
SEC. 23. Remittances. - In the case of foreign investments, a duly registered
31 
entity or enterprise within the Bulacan Ecozone shall have the right to remit earnings
32 
from the investment in the currency in which the investment was originally made and
16


1 
at the exchange rate prevailing at the time of remittance, subject to the provisions of
2 
RA 7653, or "The New Central Bank Act" as amended, and other relevant laws, rules,
3 
and regulations.
4 
CHAPTER IV. NATIONAL GOVERNMENT AND OTHER ENTITIES
5 
SEC. 24. Supervision and Control. - For purposes of policy direction and
6 
coordination, the BACSEZFA shall be under the direct supervision and control of the
7 
OP of the Philippines: Provided, That the grant of fiscal incentives shall be subject to
8 
the provisions of Title XIII of the NIRC of 1997, as amended.
9 
SEC. 25. Relationship with Local Government Units and the National
10 
Government. - Except as herein provided, the LCDs comprising the Bulacan Ecozone
11 
shall retain their basic autonomy and identity. The concerned LGUs shall operate and
12 
function in accordance with the framework of the Constitution, the Local Government
13 
Code of 1991, and this Act.
14 
Subject to existing laws, rules, and regulations, in case of conflict among the
15 
BACSEZFA and the LGUs on matters directly and inextricably affecting the Bulacan
16 
Ecozone, other than taxation, national defense, and security matters, the decision of
17 
the BACSEZFA shall prevail. In case of any conflict between an NGA within the
18 
Executive Branch and the BACSEZFA on matters directly and inextricably affecting the
19 
Bulacan Ecozone, other than taxation, national defense, or security, the decision of
20 
the OP shall prevail.
21 
SEC. 26. Audit. - The Commission on Audit (COA) shall appoint a full-time
22 
auditor in the BACSEZFA or may assign such number of personnel as may be necessary
23 
in the performance of their functions. The BACSEZFA shall be subject to the audit
24 
mechanisms under Sections 24, 25, and 26 of RA 10149 or the "GOCC Governance
25 
Act of 2011." All transactions of the BACSEZFA shall be subject to relevant accounting
26 
and auditing rules and regulations of the COA.
27 
CHAPTER V. MISCELLANEOUS PROVISIONS
28 
SEC. 27. Interpretation and Construction. - The powers, authorities and
29 
functions that are vested in the BACSEZFA are intended to establish national self-
30 
sufficiency and self-reliance in the advancement of and protection of national integrity,
31 
enhancement of national security, decentralization of governmental functions and
32 
authority, and promote an efficient and effective working relationship among the
17


1 
BACSEZFA, the NG and the LGUs. Any interpretation of this Act shall consider such
2 
intentions. In the event of conflict of interpretation and provided the intentions cannot
3 
be harmonized, the provisions of this Act shall be construed in favor of an
4 
interpretation that would tend to protect national interest and security.
5 
SEC. 28. Applicability Clause. - Insofar as these are consistent with the
6 
provisions of this Act, the provisions of Sections 30 to 41 of Republic Act No. 7916 or
7 
"The Special Economic Zone Act of 1995" shall likewise apply to the Bulacan Ecozone.
8 
SEC. 29. Implementing Rules and Regulations. - Within ninety (90) days
9 
from the effectivity of this Act, the DTI, in consultation with DOF, NEDA, the Province
10 
of Bulacan, and a representative from the Airport Project and the Airport City Project,
11 
shall formulate the implementing rules and regulations of this Act. Such rules and
12 
regulations shall take effect fifteen (15) days following the completion of its publication
13 
in a newspaper of general circulation in the Philippines.
14 
SEC. 30. Separability Clause. - If any provision of this Act is declared
15 
unconstitutional, the remainder thereof not otherwise affected shall remain in full force
16 
and effect.
17 
SEC. 31. Repealing Clause. - All laws, presidential decrees, executive
18 
orders, letters of instruction, proclamations or administrative regulations that are
19 
inconsistent with the provisions of this Act are hereby repealed, amended, or modified
20 
accordingly.
21 
SEC. 32. Effectivity Clause. - This Act shall take effect fifteen (15) days
22 
following the completion of its publication in the Official Gazette, or in a newspaper of
23 
general circulation.
Approved,
18