Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
FIRST REGULAR SESSION 
HOUSE BILL NO. _______ 
Introduced by Representative ERIC M. MARTINEZ 
EXPLANATORY NOTE 
The Philippine Archipelago, which composes of more than 7,100 islands and 
18,000 kilometers of shoreline, is considered a maritime nation. The Philippine coastal 
areas served as the lifeblood of different communities over the years. The Philippine 
economy can continue to benefit from these coastal areas if it will be managed and 
protected accordingly. 
Under Republic Act (RA) No. 9993, also known as the “Philippine Coast Guard 
Law of 2009,” the Philippine Coast Guard (PCG) has the primary task to enforce 
applicable laws within the Philippine waters, conducting maritime security operations, 
safeguarding life and property at sea, and protecting the marine environment and 
resources. 
The PCG is an attached agency to the Department of Transportation (DOTr) and 
the only one humanitarian armed service in the Philippines. In case of declaration of 
war, the PCG shall also serve as an attached service of the Department of National 
Defense (DND). Currently, it maintains a presence throughout the archipelago with 
fifteen (15) coast guard districts, ninety-two (92) coast guard stations, and over one 
hundred ninety (190) coast guard detachments from Basco, Batanes to Bongao, Tawi-
tawi.  
Despite its inadequate capabilities and limited resources, the PCG continues to 
discharge their functions and commitment to perform their duties. The capability of our 
PCG to secure our vast coastline and waterways could be further enhanced if 
technologically improved materials are introduced and integrated into the coast guard 
organization. 
In order to address PCG’s concerns, there is a need for the State to modernize 
the same. The modernization program, through the creation of the Philippine Coast 
Guard Modernization Trust Fund under this act, shall allow the PCG to perform its 
different functional areas efficiently and effectively. 
In view of the foregoing, immediate approval of this bill is earnestly sought. 
ERIC M. MARTINEZ 
February 6, 2023
3:34 pm
7079


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
FIRST REGULAR SESSION 
HOUSE BILL NO. _______ 
Introduced by Representative ERIC M. MARTINEZ 
AN ACT 
MODERNIZING THE PHILIPPINE COAST GUARD, CREATING FOR THE 
PURPOSE THE PHILIPPINE COAST GUARD MODERNIZATION TRUST 
FUND AND APPROPRIATING FUNDS THEREFOR. 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in the Congress assembled: 
SECTION 1.  Title- This Act shall be known as the “Philippine Coast Guard 
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Modernization Act.” 
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SECTION 2. Declaration of Policy- It is hereby declared the policy of the State 
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to develop the Philippine Costal Guard (PCG), and ensure the continued protection and 
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defense of our maritime border, economy, and environment. Toward this end, the 
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Modernization Program under this Act shall develop and enhance the capabilities of the 
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PCG to effectively perform under the following functional areas: 
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a. Maritime Safety;
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b. Maritime Search and Rescue;
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c. Maritime Security;
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d. Maritime Law Enforcement; and
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e. Maritime Environment Protection
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SECTION 3. Philippine Coast Guard Modernization Program- Within a period 
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not exceeding fifteen (15) years after the effectivity of this Act, the PCG shall 
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implement the Philippine Coast Guard Modernization Program, hereinafter referred to 
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as the Program. The PCG shall continue to perform its powers and discharge its 
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functions as provided in Section 3 of Republic Act No. (RA) 9993, also known as 
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“Philippine Coast Guard Law of 2009.” 
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Payments for the amortization of outstanding multi-year contract obligations 
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incurred under Section 7 of this Act may however extend beyond this period. 
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SECTION 4. Objectives of the Modernization Program- The PCG 
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Modernization Program shall be implemented in accordance with the following 
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objectives: 
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a. To minimize, if not totally eliminate accidents at sea; 
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b. To reduce the search efforts and hasten response time during search and 
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rescue operations; 
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c. To contribute substantially to securing maritime zones or territorial waters 
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from terrorism, lawlessness, and other threats to national security and 
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territory; 
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d. To effectively contribute to the enforcement of the Philippine criminal and 
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other special laws within the maritime zone or territorial waters; and 
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e. To minimize, if not totally eliminate, pollution in the maritime zones or areas 
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and hasten response time to recover split pollutants. 
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SECTION 5. Components of the Modernization Program- The PCG 
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Modernization Program shall have the following components: 
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a. Organization Development. The restructuring and streamlining of the PCG 
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units and offices to avoid the overlapping of functions, simplify procedures 
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and improve response time. 
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b. Human Resources. The professionalization of its human resource with 
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educated, motivated, and highly skilled personnel in their respective fields of 
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specialization. 
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c. Doctrine of Development. The rationalization system, standards, and 
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procedures in the administration of the PCG include the generation, 
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evaluation, consolidation, and formalization of doctrines; the conduct of the 
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periodic review and validation of doctrines through field application, testing, 
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and exercises; and the dissemination of approved doctrines at all levels of 
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command. 
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d. Infrastructure Development. The basic and support system required to ensure 
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that services are rendered efficiently includes the acquisition and upgrade of 
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basic and support facilities for administrative and operational services, and 
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the acquisition and upgrade of basic facilities such as aircraft command, 
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control, and communication platform which are range and endurance-capable 
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to continuously monitor edge of the exclusive economic zone (EEZ) with 
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night navigation capability, including remote-controlled drones. 
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e. Equipment and Facilities Acquisition and Modernization. The acquisition 
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and upgrade of contemporary, modern, and state-of-the-art equipment and 
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system to enhance the capabilities of the PCG in the performance of its 
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mandate which includes the following: 
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1. Upgrade the vessel to a mission-specific level with a high degree of 
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flexibility to perform other functional area operations. The vessel 
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must be well-maintained for full operational status at least three 
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hundred (300) days a year and must be interfaced with the latest 
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cutting-edge technology for ease of operation. 
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2. Remotely operated submersibles for deep-sea search, retrieval, and 
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monitoring operations. 
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3. Weapons that are marine-environment resistant and designed 
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primarily to disable hostile personnel and equipment. 
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4. K-9 units which are capable of detecting bombs, drugs, toxic 
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substances, and search and rescue (SAR) operations, among others; 
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5. Uninterruptible 
PCG 
internal 
communications 
seamlessly 
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interoperable with other agencies as well as communications with 
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commercial vessels operating within the Philippine maritime zones 
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or territorial waters; 
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6. Training equipment capable of simulating foreseeable emergencies 
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or hostile situations; 
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7. Aids to navigation that are consistent with International Association 
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of Lighthouse Authorities standards; 
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8. Accurate and real-time monitoring and detection systems; and 
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9. Laboratories with technologically current equipment. 
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SECTION 6. Submission of the Modernization Program- Within ninety (90) 
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days from the effectivity of this Act, the PCG Commandant shall, in accordance with 
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the Secretaries of The DOTr and Department of Budget and Management (DBM), 
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submit the PCG Modernization Program through the Congressional Oversight 
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Committee created under Section 14 hereof for its consideration and approval through 
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a joint resolution of the House of Representatives and the Senate. 
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The Program shall indicate the following: 
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a. The size and shape of the PCG in terms of personnel, equipment, and 
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facilities during the various phases of the Program. 
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b. The modernization project under each phase including the major weapon and 
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non-weapon 
equipment 
and 
technology 
acquisition, 
infrastructure 
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construction or improvement to be made, and the particular objectives and 
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components under Section 4 and 5 respectively, of this Act to which such 
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intended acquisition, constructions or improvements belongs; and 
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c. The priorities, schedules as well as the estimated average cost for each 
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modernization component project or upgrading to be undertaken. 
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In the event Congress approves the PCG Modernization Program, the joint 
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resolution shall be the basis for subsequent executive and legislative actions to 
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implement the program until its completion and full realization. 
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 SECTION 7. Multi-year Contracts- The Secretary of the DOTr may, pursuant 
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to the program, projects, and appropriations approved by Congress and subject to the 
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approval by the President, enter into multi-year contracts and other agreements or 
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arrangements in accordance with the provisions of existing laws and regulations 
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including those of the Commission on Audit and under such terms and conditions most 
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favorable to the government. 
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The Congress shall, upon certification by the President, make the corresponding 
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appropriation for the ensuing fiscal year in payment for multi-year contracts: Provided, 
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that Congress shall appropriate only such funds as may be necessary to pay any unpaid 
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amount when the appropriated funds mentioned in Section 13 of this Act are not 
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sufficient or available to meet the payment, in full or in part. 
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The Secretary of the DOTr, through the Congressional Oversight Committee, 
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shall submit copies of these multi-year contracts and other agreements or arrangements 
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to enable Congress to appropriate funds. 
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SECTION 8. Self-reliance Program- In implementing the Program, the PCG 
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shall, as far as practicable, give preference to Filipino contractors and suppliers and 
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secondly to foreign contractors or suppliers, willing and able to locate a substantial 
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portion of, if not the entire, production process of the terms involve within the 
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Philippines. 
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In order to generate local employment opportunities, and enhance technology 
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transfer to the Philippines, the Secretary of the DOTr shall, as far as feasible, incorporate 
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in each contract or agreement special foreign exchange reduction schemes such as 
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countertrade, in country manufacture, co-production, or other innovative arrangements 
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or combination thereof. 
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The PCG shall likewise ensure that in negotiating all applicable contracts or 
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agreements, provisions are incorporated respecting the transfer to the PCG of the 
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principal technology involved as well as the training of the PCG personnel to operate 
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and maintain such equipment and technology. 
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SECTION 9. Philippine Coast Guard Modernization Trust Fund- There is 
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hereby created a trust fund, to be known as the Philippine Coast Guard Modernization 
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Trust Fund to be administered by the Secretary of the DOTr in accordance with existing 
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rules and regulations. The trust fund shall be used exclusively for the PCG 
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Modernization Program excluding salaries and allowances. The trust fund shall be 
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funded out of the following: 
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a. Appropriation for the Philippine Coast Guard Modernization Program 
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b. The proceeds from the sale, lease, or joint development of coast guard 
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properties and lighthouse reservations, as may be authorized by the Congress, 
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including such immovable and other facilities as may be found therein, not 
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covered by the Bases Conversion Development Authority, as provided for in 
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Republic Act No. (RA) 7227, otherwise known as the Bases Conversion and 
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Development Act of 1992; 
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c. Shares of the PCG from the proceeds of the sale of the coast guard properties 
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provided for under the Bases Conversion and Development Act of 1992; 
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d. The proceeds from the disposal of excess or uneconomically repairable 
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equipment and other movable properties in the PCG arsenal; 
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e. Funds from budgetary surplus, if any, as may be authorized by Congress 
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subject to the provisions of Section 13 of this Act; 
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f. Dues, fines, and penalties collected by the PCG in the exercise of its 
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functions; and 
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g. All interest income of the trust fund. 
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SECTION 10. Equipment Acquisition Per Function Area- In order to further 
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specialize PCG capabilities, equipment acquisition shall be initiated within the 
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respective functional areas as mentioned in Section 2 of this Act but integrated into the 
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Program to allow inter-operability and ensure a greater degree of reliability. 
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SECTION 11. Contract Negotiation- The procurement process shall be governed in 
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accordance with Republic Act No. (RA) 9184, otherwise known as the “Government 
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Procurement Reform Act”, and its revised implementing rules and regulations. The 
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procurement process shall be exercised by the PCG General Headquarters unless 
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delegated to the next lower-level management by the PCG Commandant. 
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SECTION 12. Progress Report- The Secretary of the DOTr shall submit to the 
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President and Congress, through the Congressional Oversight Committee, an annual 
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report on the status of the Philippine Coast Guard Modernization Act Trust Fund, as 
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provided for in Section 9 of this Act, not later than the end of the first quarter of the 
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succeeding year. 
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The Commandant of the PCG shall also submit to the President and Congress, 
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through the Congressional Oversight Committee and the Secretary of the DOTr, an 
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annual status report containing the process of the implementation of the modernization 
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program under this Act including the PCG modernization activities implemented prior 
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to the approval of this Act not later than the end of the first quarter of the succeeding 
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year. 
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SECTION 13. Appropriations- The annual appropriation for the PCG 
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modernization program shall include the amounts necessary to support the funding 
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requirements for all modernization projects approved by Congress pursuant to this Act. 
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The funds to be appropriated by Congress shall be treated as a distinct and 
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separate budget item from the regular appropriation for the PCG and shall be 
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administered by the Secretary of the DOTr. The proposed program shall be based on a 
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ceiling of Fifty Billion Pesos (PhP50,000,000,000.00) for the first five (5) years. 
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Thereafter, this amount may be increased commensurate to the increase in the gross 
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national product (GNP). 
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SECTION 14. Joint Congressional Oversight Committee- A joint Congressional 
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Oversight Committee is hereby created to monitor and oversee the implementation of 
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the provisions of this Act. The Joint Congressional Oversight Committee shall be 
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composed of six (6) Senators and six (6) Representatives to be appointed by the Senate 
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President and the Speaker of the House of Representatives, respectively. It shall be co-
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chaired by the Chairperson of the Committee on Transportation of both Houses. The 
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minority parties of both houses shall have at least two (2) representatives in the Joint 
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Congressional Oversight Committee. 
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SECTION 15. Sunset Review- Five (5) years after the effectivity of this Act, 
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the Joint Congressional Oversight Committee shall conduct a systematic evaluation of 
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the accomplishments and impact of this Act as well as the performance and 
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organizational structures of the PCG. 
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SECTION 16. Separability Clause- If any provision of this Act is declared 
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unconstitutional or invalid, the remainder of this Act or any provisions not affected 
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thereby shall remain in full force and effect. 
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SECTION 17. Repealing Clause- All laws, executive orders, rules, and 
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regulations inconsistent with or contrary to this Act, are hereby repealed or amended 
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accordingly. 
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SECTION 18. Effectivity- This Act shall take effect fifteen (15) days after its 
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publication in the Official Gazette or a newspaper of general circulation. 
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Approved, 
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