EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Third Regular Session
SENATE
'V
0;o^
RECEIVED
E-FILED
:-rn_cu
.Dec 21 202V m
UJ DA TC: 
cO
COMMITTEE REPORT No.
436
Submitted jointly by the Committees on Economic Affairs; Environment, Natural 
Resources and Climate Change; Ways and Means; and Finance on Dec 21 2021
RE: Senate Bill No.
2468
Recommending its approval in substitution of Senate Bill Nos. 2260 and Senate Bill 
No. 2030 taking into consideration House Bill No. 6489 
Sponsor: Senator Imee Marcos
MR. PRESIDENT:
The Committees on Economic Affairs; Environment, Natural Resources and 
Climate Change; Ways and Means; and Finance, to which was referred Senate Bill No. 
2260, introduced by Senator Imee Marcos, entitled:
"AN ACT
ESTABLISHING THE ECONOMIC ZONE AND FREEPORT IN THE 
PROVINCE OF SOUTHERN LEYTE CREATING FOR THIS 
PURPOSE THE SOUTHERN LEYTE ECONOMIC ZONE AND 
FREEPORT AUTHORITY APPROPRIATING FUNDS THEREFOR 
AND FOR OTHER PURPOSES"


and Senate Bill No. 2030, introduced by Senator Ramon Bong Revilla, Jr., entitled:
"AN ACT
CONVERTING AND EXPANDING THE LEYTE INDUSTRIAL 
DEVELOPMENT ESTATE INTO THE LEYTE ECOLOGICAL 
INDUSTRIAL ZONE, CREATING FOR THIS PURPOSE THE LEYTE 
ECOLOGICAL INDUSTRIAL ZONE AUTHORITY, AND 
APPROPRIATING FUNDS THEREFOR"
taking into consideration House Bill No. 6489, introduced by Representatives 
Romualdez (Y.M), Romualdez (F.M.), Garin (S.), Gatchalian, Yap (E.); Salceda and 
Olivarez, entitled:
"AN ACT
CONVERTING AND EXPANDING THE LEYTE INDUSTRIAL 
DEVELOPMENT ESTATE INTO THE LEYTE ECOLOGICAL 
INDUSTRIAL ZONE, CREATING FOR THIS PURPOSE THE LEYTE 
ECOLOGICAL INDUSTRIAL ZONE AUTHORITY, AND 
APPROPRIATING FUNDS THEREFOR"
have considered the same and have the honor to report it back to the Senate with the 
recommendation that 
Committees, entitled:
recommendation that the attached Senate Bill No. 2468 prepared by the
AN ACT
CONVERTING AND EXPANDING LEYTE INDUSTRIAL 
DEVELOPMENT ESTATE INTO THE ECOLOGICAL INDUSTRIAL 
ZONE, CREATING FOR THIS PURPOSE THE LEYTE ECOLOGICAL 
INDUSTRIAL ZONE AUTHORITY, AND APPROPRIATING FUNDS 
THEREFOR


be approved in substitution to Senate Bill No. 2260 and Senate Bill No. 2030 taking 
into consideration House Bill No. 6489, with Senators Revilla, Jr. and Marcos as 
authors thereof.
Respectfully submitted:
Chairpersons
/L<.
SENATOR CYNTHIA A. VILLAR
Committee on Environment, Natural 
Resources and Climate Change 
Vice-Chairperson, Committee on 
Finance
SENATOR SONNY ANGARA
Committee on Finance 
Vice-Chairperson, Committee on 
Economic Affairs 
Vice-Chairperson, Committee on 
Ways and Means
SENATOR IMEE MARCOS
Committee on Economic Affairs 
Vice-Chairperson, Committee on Finance 
Member, Committee on Environment, 
Natural Resources and Climate Change 
Member, Committee on Ways and Means
SENATOR PIA4. CAYETANO
Committee on Ways and Means 
Vice-Chairperson, Committee on 
Environment, Natural Resources and 
Climate Change
Vice-Chairperson, Committee on Finance 
Member, Committee on Economic Affairs
Vice-Chairpersons
SENATOR WIN 6ATCHALIAN
Committee on Economic Affairs 
Committee on Finance 
Member, Committee on Environment, 
Natural Resources and Climate 
Change
Member, Committee on Ways and 
Means
SENATOR FRANCIS "TOL" 
TOLENTINO
Committee on Environment, Natural 
Resources and Climate Change 
Member, Committee on Economic 
Affairs
Member, Committee on Finance


SENATOR CHRISTOPHER 
LAWRENCE T. GO
Committee on Finance 
Member, Committee on Environment, 
Natural Resources and Climate 
Change
Member, Committee on Ways and 
Means
SENATOR VILLANUEVA
Committee^n Finance
Member, committee on Environment,
Natural Resources and Climate Change
SENATOR RISA HONTIVEROS
Committee on Finance
Member, Committee on Economic
Affairs
Member, Committee on Environment, 
Natural Resources and Climate 
Change
Member, Committee on Ways and 
Means
SENATOR RICHARD 3. GORDON
Committee on Finance 
Member, Committee on Environment, 
Natural Resources and Climate Change 
Member, Committee on Ways and 
Means
SENATOR GRACE POE
Committee on Finance
Member, Committee on Ways and
Means
fr
SENATOR RONALD "BATO" DELA 
ROSA
Committee on Finance 
Member, Committee on Environment, 
Natural Resources and Climate Change 
Member, Committee on Ways and 
Means
Members
M.
SENATOR MANUEL "LITO'
LAPID
Committee on Economic Affairs 
Committee on Environment, Natural 
Resources and Climate Change 
Committee on Finance 
Committee on Ways and Means
SENATORyllAMON BONG REVILLA 
JR.
Committee on Economic Affairs 
Committee on Finance 
Committee on Ways and Means 
Committee on Environment, Natural 
Resources and Climate Change


SENATOR MAltiA LOURDES 
NANCY S. BINAY
Committee on Finance 
Committee on Environment, Natural 
Resources and Climate Change
SENAXOR>ANFILO m. lacson
Committee on Finance 
Committee on Ways and Means
SENATOR LEILA M. DE LIMA
Committee on Finance 
Committee on Environment, Natural 
Resources and Climate Change 
Committee on Ways and Means
SENATGRIcMMANOEL "MANNY" D. 
PACQUIAO
Committee on Finance 
Committee on Ways and Means 
Committee on Environment, Natural 
Resources and Climate Change
V
SENATOR AQUILINO "KOKO' 
PIMENTEL III
Committee on Finance
SENATOR FRifflCIS "KIKO"
pangilinaN \
Committee on Economic Affairs 
Committee on Finance 
Committee on Environment, Natural 
Resources and Climate Change 
Committee on Ways and Means


Ex-Officio Members
SENATOR RALPH G. RECTO
President Pro Tempore 
Member, Committee on Environment, 
Natural Resources and Climate Change
3UM^MIGUEL F. ZUBIRl
. - '
Senate Majority Leader
will
interpellale/amend"
SENATOR FRANKLIN M. DRILON
Mirpority Leader
SENATOR VICENTE SOTTO III
Senate President


EIGHTEENTH CONGRESS 
)
REPUBLIC OF THE PHIUPPINES ) 
Third Regular Session 
)
.g.-s>RECEIVED<fC^
,r, 
^ 
V?
SENATE 
S. No. 2468
N Dt
Prepared and submitted jointly by the Committees on Economic Affairs; Environment, 
Natural Resources and Climate Change; Ways and Means; and Finance with Senators 
Revilla, Jr. and Marcos as authors thereof
AN ACT
CONVERTING AND EXPANDING LEYTE INDUSTRIAL DEVELOPMENT ESTATE 
INTO THE LEYTE ECOLOGICAL INDUSTRIAL ZONE, CREATING FOR THIS 
PURPOSE THE LEYTE ECOLOGICAL INDUSTRIAL ZONE AUTHORITY, AND 
APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and the House of Representatives of the Philippines in the 
Congress assembled:
CHAPTER I
GENERAL PROVISIONS
1 
SECTION 1. Short Title. — This Act shall be known as the "Leyte Ecological
2 
Industrial Zone Act."
3 
SEC. 2. Declaration of Policy. — It is declared the policy of the State to
4 
actively encourage, promote, induce and accelerate the sound and balanced industrial,
5 
economic and social development of the country. The establishment of special
6 
economic zones shall attract legitimate and productive foreign investments in strategic
7 
locations in the country. It shall generate employment and increase productivity and
8 
individual, as well as family incomes, thereby enhancing the quality of life of the
9 
Filipino people.
10 
CHAPTER II
11 
CONVERSION AND EXPANSION OF THE ECONOMIC ZONE


1
2
3
4
5
9
10
n
12
13
14
15
SEC. 3. Conversion of the Leyte Industrial Development Estate. ~ The
Leyte Industrial Development Estate (LIDE) located in the municipality of Isabel, 
Province of Leyte is hereby converted into a special economic zone, consisting of an 
industrial estate (IE), export processing zone (EPZ) and free trade zone to be known 
as the Leyte Ecological industrial Zone, hereafter referred to as LEIZ.
6 
SEC. 4. Expansion of the LEIZ. — Subject to the concurrence of the affected
7 
local government units of Leyte, the LEIZ shall be expanded to cover the following
8 
areas:
(a) The land area that comprises the former Leyte Industrial Development
Estate, hereinafter referred to as the "LEIZ Core Area";
(b) The land areas located within municipalities adjacent to the Municipality of
Isabel, Province of Leyte, hereinafter referred to as the "LEIZ Non-Core 
Areas"; and
(c) The land area covered by the Eastern Visayas Regional Growth Center,
hereinafter referred to as the "LEIZ Tacloban North."
16 
The areas comprising the LEIZ may be expanded or reduced when necessary. For this
17 
purpose, the LEIZA, with the concurrence of the appropriate and affected local
18 
government units (LCDs) and the agreement of appropriate national government
19 
agencies, government-owned and -controlled corporations and instrumentalities, and
20 
the approval of the LEIZA Board in accordance and in compliance with existing laws
21 
and local ordinances shall have the power to acquire, procure, or expand either by
22 
purchase, negotiation, condemnation proceedings, or any other arrangement, any
23 
private or alienable and disposable public lands and their respective water territories
24 
Within the territorial jurisdiction of the Province of Leyte.
25 
The metes and bounds of the LEIZ Core Area, the LEIZ Non-Core Areas and the LEIZ
26 
Tacloban North shall be based on the technical description and coordinates verified
27 
and approved by the Land Management Bureau, the National Mapping and Resource
28 
Information Authority, and other government agencies as may be provided by law.


1 
In the event that the LEIZ Non-Core Area or the LEIZ Expansion Areas cover economic
2 
zones of other investment promotion agencies, registered enterprises in such
3 
economic zones may elect to register with the Leyte Ecological Industrial Zone
4 
Authority (LEIZA) or to remain with such other investment promotion agency;
5 
Provided, That in no case shall a registered enterprise enjoy incentives from both
6 
investment promotion agencies.
7 
SEC. 5. Governing Principles. — The LEIZ shall be managed and operated
8 
by the Leyte Ecological Industrial Zone Authority, hereafter referred to as the LEIZA, 
Q under the following principles:
in 
a) Within the framework and limitations of the Constitution and applicable provisions
11 
of the Local Government Code, the LEIZ shall be developed into and operated as
12 
a decentralized, self-reliant and self-sustaining industrial, commercial and trading,
13 
agro-industrial, tourist, banking, financial and investment center with suitable
14 
residential areas;
15 
b) The LEIZ shall be provided with transportation, telecommunications and other
16 
facilities needed to attract legitimate and productive investments, generate
17 
linkage industries and employment opportunities for the people of Leyte and its
18 
neighboring towns and cities;
19 
c) The LEIZ may establish mutually beneficial economic relations with other entities
20 
or enterprises within the country or, subject to the administrative guidance of the
21 
Department of Foreign Affairs (DFA), and Philippine Economic Authority (PEZA),
22 
and the Department of Trade and Industry (DTI), with foreign entities or
23 
enterprises;
24 
d) Foreign citizens and companies owned by non-Filipinos in whatever proportion
25 
may set up enterprises in the LEIZ, either by themselves or in a joint venture
26 
with Filipinos in any sector of industry, international trade and commerce within
27 
the LEIZ;
28 
e) The LEIZ shall be managed and operated as a separate customs territory thereby
29 
ensuring the free flow or movement of goods and capital within, into and out of
3


1 
its territory, and shall likewise provide incentives such as tax and duty-free
2 
importations of raw materials, capital and equipment to registered enterprises
3 
located therein. However, exportation or removal of goods from territory of the
4 
LEIZ to the other parts of the Philippine territory shall be subject to customs duties
5 
and taxes under Republic Act No. 10863, otherwise known as the "Customs
6 
Modernization and Tariff Act" and other relevant tax laws of the Philippines;
7 
f) The areas comprising the LEIZ may be expanded or reduced when necessary. For
« 
this purpose, the SLEZFA, in consultation with the LCDs, shall have the power to
«) 
acquire either by purchase, negotiation condemnation proceedings, any private
10 
land within or adjacent to the LEIZ for the following purposes: (1) consolidation
11 
of lands for LEIZ development; (2) acquisition of right-of-way to the LEIZ; and
12 
(3) the protection of watershed areas and natural assets valuable to the prosperity
13 
of the LEIZ;
14 
g) Goods manufactured by a LEIZ enterprise shall be made available for immediate
15 
retail sale in domestic market, subject to the payment of corresponding taxes on
ir. 
raw materials and other regulations that may be formulated by the LEIZA together
17 
With the PEZA, the Bureau of Customs (BOC) and the DTI. However, in order to
18 
protect domestic industries, a negative list of industries shall be drawn up and
10 
regularly updated by PEZA. Enterprises engaged in industries included in such
20 
negative list shall not be allowed to sell their products locally;
21 
h) The defense of the LEIZ and the security of its perimeter shall be the responsibility
22 
of the national government in coordination with the LEIZA and the LGUs.
23 
CHAPTER III
24 
GOVERNING STRUCTURES
25 
SEC. 6. Creation of the Leyte Ecological Industrial Zone Authority
26 
(LEIZA). — There is hereby created a body corporate to be known as the "Leyte
27 
Ecological Industrial Zone Authority", hereinafter referred to as the LEIZA, which shall
28 
manage and operate the Leyte Ecological Industrial Zone, in accordance with the
2i) 
provisions of this Act. This corporate franchise shall expire in fifty (50) years counted
30 
from the first year after the effectivity of this Act, unless otherwise extended by


1 
Congress. It shall be organized within one hundred eighty (180) days after the
2 
effectivity of this Act.
3 
SEC. 7. Capitalization. — The LEIZA shall have an authorized capital stock
4 
of Two billion (2,000,000,000) no par shares with a minimum issue of Ten pesos
5 
(PIO.OO) each, the majority shares of which shall be subscribed and paid for by the
6 
National Government and the LGUs embracing the LEIZ. The Board of Directors of the
7 
LEIZA may, with the written concurrence of the Secretary of Finance, sell shares,
8 
representing not more than forty per centum (40%) of the capital stock of the LEIZA
9 
to the general public under such policy as the Board and the Secretary of Finance may
10 
determine. The National Government and the LGUs shall in no case own less than 
1! sixty per centum (60%) of the total issued and outstanding capital of the LEIZA.
12 
The amount necessary to subscribe and pay for the shares of the National
13 
Government to the capital stock of the LEIZA shall be included in the annual General
14 
Appropriations Act. For LGUs, the funds shall be taken from their internal revenue
15 
allotment and other local funds.
16 
SEC. 8. Principal Office of the LEIZA. — The LEIZA shall maintain its
17 
principal office in Tacloban City, but it may establish offices within the Philippines as
18 
may be necessary for the proper conduct of its business.
]') 
SEC. 9. Powers and Functions of the LEIZA. — The LEIZA shall have the
20 
following powers and functions:
21 
a) To operate, administer, manage and develop the LEIZ according to the principles
22 
and provisions set forth in this Act;
23 
b) To recommend to the President of the Philippines or the Governor of the Province
24 
of Leyte the issuance of a proclamation to fix and delimit the site of LEIZ.
25 
c) To register, regulate and supervise the enterprises in the LEIZ in an efficient and
26 
decentralized manner, subject to the National Internal Revenue Code of 1997, as
27 
amended;


1 
d) To coordinate with LGUs and exercise general supervision over the development
2 
plans, activities and operations of the LEIZ;
3 
e) To regulate and undertake the establishment, construction, operation and
4 
maintenance of public utilities, other services, and infrastructure in LEIZ such as
5 
light and power, shipping, barging, stevedoring, cargo handling, hauling,
6 
warehousing, storage of cargo, port services or concessions, piers, wharves,
7 
bulkheads, bulk terminals, mooring areas, storage areas, roads,
K 
telecommunications, transport, bridges, terminals, conveyors, water supply and
« 
storage, sewerage, drainage, airport operations in coordination with the Civil
10 
Aviation Authority of the Philippines (CAAP), and such other services or concessions
11 
or Infrastructure necessary or incidental to the accomplishment of the objectives
12 
of this Act;
13 
0 To regulate and undertake the establishment, operation and maintenance of
14 
Utilities, other services and infrastructure in the LEIZ such as but not limited to
15 
heat, light and power, water supply, telecommunications, transport, toll, roads and
16 
bridges, port services, and to fix just, reasonable and competitive rates, charges
17 
and prices thereof;
18 
g) To construct, acquire, own, lease, operate and maintain on its own or through
19 
contracts, franchise, licenses, bulk purchase from the private or permits under any
20 
of the schemes allowed in Republic Act No. 6957, otherwise known as the "Build-
21 
Operate-Transfer Law’ as amended, or joint venture, adequate facilities and
22 
infrastructure required or needed for the operation and development of the LEIZ,
23 
in coordination with appropriate national and local government authorities and in
24 
conformity with applicable laws thereon;
25 
h) To approve plans, programs and projects of the LEIZ to be submitted to the
26 
Regional Development Council (RDC) for inclusion and inputs to the overall
27 
regional development plan;
28 
i) To operate on its own, either directly or through licenses to others, tourism-related
29 
activities, including games, amusements, recreational and sports facilities, subject


1 
to the approval and supervision of the Philippine Amusement and Gaming
2 
Corporation (PAGCOR);
3 
j) To raise or borrow, within the limitation provided by law, and subject to the
4 
approval or opinion of the Monetary Board of the Bangko Sentra! Ng Pilipinas
5 
(BSP), as the case may be, adequate and necessary funds from local or foreign
6 
sources, to finance its projects and programs under this Act and for this purpose,
7 
to issue bonds, promissory notes and other forms of securities, and to secure the
8 
same by a guarantee, pledge, mortgage, deed of trust or an assignment of all or 
0 part of its property or assets;
10 
k) To protect, preserve, maintain and develop the forests, beaches, coral and coral
11 
reefs, and maintain ecological balance within the LEIZ. Notwithstanding the power
12 
of the LEIZA to create rules for such purpose, the rules and regulations of the
13 
Department of Environment and Natural Resources (DENR) and other government
14 
agencies involved in the above functions shall be implemented by the LEIZA;
15 
I) To create, operate or contract to operate such functional units or offices of the
16 
LEIZA as it may deem necessary;
!7 m) To adopt, alter and use a corporate seal, contract, lease, buy, acquire, own or
18 
otherwise dispose of personal and real property of whatever nature, sue and be
19 
sued, and otherwise carry out Its functions and duties as provided for in this Act;
20 
n) To issue certificates of origin for products manufactured or processed in the LEIZ
21 
in accordance with prevailing rules of origin and the pertinent regulations of the
22 
PEZA, the DTI and the Department of Finance (DOF);
23 
o) To establish one-stop shops for the issuance of all necessary permits, clearances,
24 
licenses, and other similar certifications to conduct such activities intended to
25 
improve the ease of doing business within the LEIZ, in coordination with
26 
government agencies having jurisdiction over activities therein: Provided, That all
27 
government agencies are directed to provide and extend utmost and 
full
28 
cooperation to the LEIZA in the establishment of such one-stop shops;


1 
p) To provide internal security to the LEIZ in coordination with the National
2 
Government and affected LGU. For this purpose, the LEIZA shall provide and
3 
establish its own internal security and firefighting forces or hire others to provide
4 
the same. Military forces deployed to the LEIZ by the National Government for the
5 
purpose of defense in times of aggression, terrorism, insurgency, rebellion and
6 
similar acts shall not interfere in the internal affairs of the LEIZ and expenditures
7 
for these military forces shall be borne by the National Government;
8 
q) To exercise such powers as may be essential, necessary or incidental to the powers 
0 granted to it hereunder, as well as those that shall enable it to carry out, implement 
10 and accomplish the purposes, objectives and policies of this Act; and
n 
r) To issue rules and regulations consistent with the provisions of this as may be
12 
necessary to accomplish and implement the purposes, objectives and policies
13 
provided herein.
14 
SEC. 10. Board of Directors of the LEIZA. - The powers of the LEIZA shall
15 
be vested in and exercised by a Board of Directors, hereinafter referred to as the
16 
Board, which shall be composed of the following:
17 
a) The Chairperson, who shall at the same time be he administrator of the LEIZA;
18 
b) Four members consisting of:
iM 1) The Governor or a duly-authorized representative from the Provincial 
20 
Government of Leyte;
21
22
23
24
2) The mayor of the municipality covered by the ecozone;
3) One (1) representative from the investor's group; and
4) One (1) representative from among the workers in the LEIZ.
The Vice-Chairperson shall be selected from among the members of the Board.
8


1 
The Governor or his representative and the Mayor of the municipality covered
2 
by the ecozone shall serve as ex-officio Board members, and their respective terms
s 
of office in the Board shall correspond to their incumbency as elected officials.
4 
The Chairperson-Administrator and the members of the Board, except the ex-
5 
officio members shall be appointed by the President of the Philippines to serve for
6 
a term of six (6) years, unless sooner separated from service due to death, voluntary
7 
resignation or removal for cause. In case of death, resignation or removal for cause,
8 
their replacements shall serve only the unexpired portion of the respective terms.
g 
The Chairperson-Administrator must be a Filipino citizen, of good moral
10 
character of proven probity and Integrity, and a degree-holder in any of the following
11 
fields; economics, business, public administration, law, management or their
]2 
equivalent, and with at least ten (10) years relevant working experience in the field
13 
of management or public administration.
14 
The members of the Board, except the ex-officio members, shall each receive
15 
per diem at rates to be determined by the Department of Budget and Management
16 
(DBM) in accordance with existing rules and regulations: Provided, however. That the
17 
total per diem collected each month shall not exceed the equivalent per diem for four 
!R (4) meetings. Unless and until tie President of the Philippines has fixed a higher 
ly amount of per diem, the members of the Board shall receive per diem of not be more
20 
than Ten thousand pesos (P10,000.00) for every Board meeting.
21 
SEC. 11. Organization and Personnel. — The Board of Directors of the
22 
LEIZA shall provide for its organization and staff. The Board shall appoint and fix the
23 
remuneration and other emoluments of Its officers and employees in accordance with
24 
existing laws on compensation and position classification. The Board shall have
25 
exclusive and final authority to promote, transfer, assign, reassign, or remove officers
26 
of the LEIZA, any provision of existing law to the contrary notwithstanding. The
27 
Chairperson-Administrator shall carry out the decisions of the Board.


1 
The officers and employees of the LEIZA, including all members of the Board,
2 
shall not engage directly or indirectly in partisan activities nor take part in any election,
3 
except to vote.
4 
No officer or employee of the LEIZA, subject to civil service laws and
5 
regulations, shall be removed or suspended except for cause, as provided by law.
6 
SEC. 12. Powers and Duties of the Chairperson-Administrator. - The
7 
Chairperson-Administrator shall have the following powers and duties:
8 
a) To direct and manage the affairs of the LEIZA in accordance with the policies of
9 
the Board;
10 
b) To establish the internal organization of the LEIZA under such conditions that the
11 
Board may prescribe;
12 
c) To submit an annual budget and necessary supplemental budget to the Board for
13 
its approval;
14 
d) To submit within thirty (30) days after the close of each fiscal year an annual
15 
report to the Board and such other reports as may be required;
16 
e) To submit to the Board for its approval, policies, systems, procedures, rules and
17 
regulations that are essentia! to the operation of the LEIZ;
18 
f) To recommend to the Board the remuneration and other emoluments of its officers
19 
and employees in accordance with existing laws on compensation and position
20 
classification;
21 
g) To create a mechanism in coordination with relevant agencies for the promotion
22 
of industrial peace, the protection of the environment, and the advancement of
23 
the quality of life in the LEIZ; and
24 
h) To perform such other duties as may be assigned by the Board or which are
25 
necessary or incidental to the office.
10


1 
SEC. 13. Legal Counsel. — The LEIZA shall have its own internal legal
2 
counsel under the supervision of the Government Corporate Counsel. When the
3 
exigencies of businesses and operations demand it, the LEIZA may engage the
4 
services of an outside counsel either on a case to case or fixed retainer basis.
5 
CHAPTER IV
6 
INCENTIVES TO ECOZONE ENTERPRISES INVESTORS
7 
SEC. 14. Investors Visa. — Any foreign national who invests an amount of
8 
two hundred thousand US dollars (US$200,000.00), either in cash and/or equipment,
y 
in a registered enterprise shall be entitled to an investor's visa: Provided, That the
10 
foreign national has the following qualifications:
11 
a) Must be at least eighteen (18) years of age;
12 
b) Must not have been convicted by final judgment of a crime involving moral
13 
turpitude;
14 
c) Must not be afflicted with any loathsome, dangerous or contagious disease;
15 
d) Must not have been institutionalized for any mental disorder or disability; and
16 
e) Must establish his financial capability and capacity through verifiable and credible
17 
evidence.
IS 
A foreign national may reside in the Philippines while the investment subsists.
19 
To prove this, the foreign national shall submit an annual report, in the form duly
20 
prescribed for the purpose. Should said investments be withdrawn from the
21 
Philippines, the investors visa issued to said foreign national shall automatically expire
22 
and be withdrawn.
23 
The authority to issue visas and work permits shall remain with the Bureau of
24 
Immigration (BI) and he Department of Labor and Employment (DOLE), respectively:
25 
Provided, That the BI and the DOLE shall implement measures to expedite the
26 
processing of such visas and permits for workers in the LBZ and coordinate with the
27 
LEIZA for purpose of improving ease of doing business.
n


1 
SEC. 15. Fiscal Incentives. — Registered enterprises LEIZ may be entitled
2 
to existing pertinent fiscal incentives granted under Title XIII (Tax Incentives) of the
3 
National Internal Revenue Code of 1997, as amended.
4
5
6 
7
<)
10
1]
12
13
14
SEC. 16. Administration, Implementation and Monitoring of 
Incentives. — In the interest of enhancing transparency in the management and 
accounting of tax incentives in the LEIZ, and ensuring the proper administration, 
management, enforcement implementation and monitoring of tax incentives, the 
LEIZA shall comply with the provisions of the National Internal Revenue Code of 1997, 
as amended, and its implementing rules and regulations.
The BOC shall set up and establish a customs-controlled area outside he 
premises of the LEIZ to facilitate payment of taxes on goods entering the Philippine 
customs territory: Provided, That notwithstanding the limitations in this Act, the 
LEIZA and BOC may coordinate and jointly implement measures on border 
protection..
15 
SEC. 17. Banking Rules and Regulations. — Banks and financial
16 
institutions to be established in the LEIZ shall be under the supervision of the BSP
17 
and subject to existing banking laws, rules and regulations.
18 
SEC. 18. Remittances. — In the case of foreign investments, a duly
19 
registered entity or enterprise within the LBZ shall have the right to remit earnings
20 
from the investment in the currency in which the investment was originally made and
21 
at the exchange rate prevailing at the time of remittance, subject to the provisions
22 
of Republic Act No. 7653, otherwise known as "The New Central Bank Act", as
23 
amended.
24 
CHAPTER V
25 
NATIONAL GOVERNMENT AND OTHER ENTITIES
26 
SEC. 19. Supervision and Control. — For purposes of policy direction and
27 
coordination, the LEIZA shall be under the direct control and supervision of the Office
28 
of the President of the Philippines.
12


1 
SEC, 20. Development Goals of the LEIZ. — The LEIZA shall determine
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the development goals of the LEIZ within the framework of national development
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plans, policies and goals. The Chairperson-Administrator shall, upon approval by the
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Board, submit the LEIZ plans, programs and projects to the RDC for inclusion and
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inputs to the overall regional development plan.
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SEC. 21. Relationship with Locai Government Units. — Except as herein
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provided, the LGUs comprising the Tacloban City Ecozone shall retain their basic 
« autonomy and identity. They shall operate and function in accordance with the 
0 framework of the Constitution, Local Government Code of 1991, and this Act.
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In case of any conflict among the LEIZA, the LGUS and the National
11 
Government on matters affecting the LEIZ, other than national defense and security
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matters, the decision of the LEIZA shall prevail.
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SEC. 22. Audit —Ihe Commission on Audit (COA) shall appoint a full-time
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auditor in the LEIZA or may assign such number of personnel as may be necessary
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in the performance of their functions.
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CHAPTER VI 
MISCELLANEOUS
SEC. 23. Interpretation/Construction. — The powers, authorities and 
functions that are vested in the LEIZA are intended to establish national self- 
sufficiency and self-reliance in the advancement and protection of the national 
integrity, enhancement of national security, decentralization of governmental 
functions and authority, and promotion of an efficient and effective working 
relationship among the LEIZA, the National Government and the LGUs. Any 
interpretation of this Act shall consider such intentions. In the event of conflict of 
interpretation and provided the intentions cannot be harmonized, the provisions of 
this shall be construed in favor of an interpretation that would tend to protect national 
security.
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SEC. 24. AppUcabiiity Clause. — Insofar as they are consistent with the
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provisions of this Act, the provisions of Sections 30 to 40 of Republic Act No. 7916,
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1 
otherwise known as "The Special Economic Zone Act of 1995", as amended, shall
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likewise apply to the LEIZ.
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SEC. 25. Transitory Provisions. — All properties, assets, funds, rights,
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obligations, and liabilities of LIDE are hereby transferred to the LEIZA except for the
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liabilities that are not properly accounted for as per the reports coming from the 
{> Commission on Audit, which shall be retained by the National Development Company.
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The LEIZA shall carry out the transfer herein provided in a manner that will
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ensure the least disruption of ongoing operations of the LIDE. The qualified and 
necessary personnel of the LIDE shall be transferred to and absorbed by the LEIZA:
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Provided, That the tenure, rank, salaries and privileges of such personnel are not
11 reduced or adversely affected. The personnel whose services are not retained by the 
i> LEIZA shall be granted separation pay and retirement and other benefits they are
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entitled to under existing laws, rules and regulations.
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In the period prior to the actual assumption of duties by the LEIZA, all officers
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and employees of the LIDE shall continue to exercise their functions and discharge
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their duties and responsibilities. The LIDE shall be deemed abolished upon the
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organization of LEU.
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SEC. 26. Implementing Rules and Regulations. — The National
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Economic and Development Authority (NEDA), in coordination with the DTI and DOF,
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shall formulate the implementing rules and regulations of this Act within ninety (90)
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days after its approval.
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SEC. 27. Separability Clause. - If any provision of this Act shall be held
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unconstitutional or invalid, the other provisions not otherwise affected shall remain
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in full force and effect.
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SEC. 28. Repealing Clause. — All laws, executive orders or issuances or
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any part thereof, which are inconsistent herewith, are hereby repealed or amended
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accordingly.
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SEC. 29. 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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