Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18" Congress
‘Second Regular Session

House it no: 8834

Introduced by Hon. Ma. Victoria V. Umali
Representative, A TEACHER Party-List

EXPLANATORY NOTE
This bill seeks to establish the Special Economic and Freeport Zone in the Municipalities of Sta.
Cruz and Mamburao, Occidental Mindoro. Situated at the center of the province of Occidental
Mindoro, Municipality of Sta. Cruz and its nearby Municipality of Mamburao is the perfect spot of an

accessible and profitable Special Economic and Free Port Zone in the island, Directly facing the island of

Coron, Palawan, the Municip. 2s of Sta. Cruz and Mamburao offers more than its awe-inspiring views
of paddy fields and mountain ranges. With the unspoiled beaches, underwater paradise, and other
captivating sights of tract of lands, the Municipality and its entire province is a promising hub for

sustainable Agro-Industrial, Manufacturing and Tourism Economic Zone.

Section 20, Article Il of the 1987 Constitution declares that, “the State recognizes the
indispensable role of the private sector, encourages, private enterprise, and provides incentives for
needed investments.” Bringing this Constitutional policy to life, Republic Act (RA) No. 7916, otherwise
known as the “The Special Economic Zone Act of 1995,” provides for the establishment of Special
Economic Zones in the Country, particularly in Rural Areas, in order to promote their development into

agro-industrial, commercial, tourist, banking, investment and financial centers.


This bill seeks the realization of the Province of Occidental Mindoro’s full economic, industrial,
and tourism potential through the establishment of West Mindoro Exclusive Economic Zone Authority
(WEMEEZA). This bill envisions creating an ECOZONE that will alleviate and improve the economic
condition of Occidental Mindoro and other nearby provinces. The residents will be assured of local
employment opportunities which will hasten the economic growth not only in the area but in the
neighbouring provinces as well. Further, through industrialization of the far flung areas in the provinces,
it would spur the development and uplift the welfare of the rural folks while positively effecting to

decongest and arrests the cramming of the people on highly urbanized cities.

The Economic and Freeport Zone is conceptualized as a self-sustaining industrial, commercial
and investment center that will encourage economic growth and accelerate employment generation in
the province. It envisions such Economic Zone to be operated as a separate customs territory that will
provide incentives to ensure free flow and movement of goods and commodities within the area and
their expression therefrom. As such, it shall provide tax-based incentives for business operating within
Its premises. In addition, it shall also provide for non-tax benefits like the exchange policies and grant of

permanent resident status to investors.

The establishment of a special economic zone and free port zone is in line with the

government's policy to encourage, promote, induce and accelerate a sound and balanced industrial,

economic and social development of the countryside, the establishment of West Mindoro Exclusive
Economic Zone Authority (WEMEEZA) is earnestly recommended. In view hereof, early consideration

and approval of this bill is earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18" Congress

Second Regular Session

HOUSE BILL Ni 8834

Introduced by Hon. Ma. Victoria V. Umali,
Representative, A TEACHER Party-List

AN ACT ESTABLISHING THE WEST MINDORO EXCLUSIVE ECONOMIC ZONE AUTHORITY (WEMEEZA)
AND FREE PORT IN THE MUNICIPALITIES OF STA. CRUZ AND MAMBURAO IN THE PROVINCE OF
OCCIDENTAL MINDORO
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES

SECTION 1. Short Title. ~ This Act shall he known as the “WEST MINDORO EXCLUSIVE

ECONOMIC ZONE AUTHORITY (WEMEEZA) ACT.”

‘SEC 2. Declaration of Policy. ~ It is hereby declared the policy of the government to actively

encourage, promote, induce and accelerate a sound and balanced industrial, economic and social

development of the country in order to provide jobs to the people especially those in the rural areas,
increase their productivity and their individual and family income, and thereby improving the level and
quality of their living condition through the establishment, among others, of exclusive economic zone
and free ports in suitable and strategic locations in the country and through measures that shall

effectively attract legitimate and productive foreign investments.


SEC 3. Creation of “WEST MINDORO EXCLUSIVE ECONOMIC ZONE and FREE PORT AREA” ~ In
accordance with the foregoing declared policy, here is hereby established a special and exclusive
economic zone and free port, to be known, as the "WEST MINDORO EXCLUSIVE ECONOMIC ZONE
AUTHORITY” hereinafter known as WEMEEZA, which shall cover certain parts of Barangay Mulawin,
Barangay San Vicente and Barangay Alacaak of the Municipality of Sta. Cruz and certain parts of
Barangay Talabaan and Barangay Fatima of the Municipality of Mamburae Oceidental Mindoro.

SEC 4. Governing Principles. - The “WEST MINDORO EXCLUSIVE ECONOMIC ZONE and FREE
PORT AREA” shall be managed and operated by WEST MINDORO EXCLUSIVE ECONOMIC ZONE
AUTHORITY, herein referred to as the WEMEEZA created under Section 5 of this Act, under the following

principles:

{a) Within the framework and limitations of the Constitution and the applicable provisions of the
Local Government Code, as amended, the WEST MINDORO EXCLUSIVE ECONOMIC ZONE AUTHORITY
rf

| and investment center with

(WEMEEZA) shall be developed into and operated as a decentralized, self-reliant and self-sust

industrial, commercial trading, agro-industrial, tourism banking, finan
suitable residential areas;

(b) The WEST MINDORO EXCLUSIVE ECONOMIC ZONE AUTHORITY (WEMEEZA) shall be
provided with transportation, telecommunications and other facilities needed to attract legitimate and
productive investments, generate linkage Industries and employment opportunities for the people of
the Province of Occidental Mindoro and its neighbouring towns, cities and other provinces;

(c) The WEST MINDORO EXCLUSIVE ECONOMIC ZONE AUTHORITY (WEMEEZA) may establish
mutually beneficial economic relations with other entities or enterprises within the country or. Subject
to the administrative guidance of the Department of Foreign affairs (DFA), the Philippine Economic Zone
Authority (PEZA); and or, the Department of Trade and Industry (DTI), with foreign entities or
enterprises;

(d) Foreign citizens and companies owned by non-filipinos in whatever proportion may set up
enterprises in WEST MINDORO EXCLUSIVE ECONOMIC ZONE and FREE PORT either by themselves or in
Joint venture with Filipinos in any sector of industry, international trade and commerce within the WEST

MINDORO EXCLUSIVE ECONOMIC ZONE and FREE PORT AREA;


{e) The WEST MINDORO EXCLUSIVE ECONOMIC ZONE and FREE PORT AREA shall be managed
and operated as a separate customs territory ensuring free flow or movement of goods and capital
within into and out of its territory;

(f) The "WEST MINDORO EXCLUSIVE ECONOMIC ZONE AUTHORITY (WEMEEZA)” may provide
Incentives such as tax and duty-free importations of raw materials, capital equipment to registered
enterprises located therein. However, exportation or removal of goods from the territory of the WEST
MINDORO EXCLUSIVE ECONOMIC ZONE and FREE PORT AREA to other parts of the Philippine territory
shall be subject to Customs Duties and Taxes under the Tariff and Customs Code of the Philippines, as
‘amended, and the National Internal Revenue Code (NRIC) of 1997, as amended;

(g) The areas comprising the WEST MINDORO EXCLUSIVE ECONOMIC ZONE and FREE PORT
AREA may be expanded or reduced when necessary. For this purpose, the WEMEEZA, in consultation
with the concerned LGU’s, shall have the power to acquire either by purchase, negotiation or
condemnation proceedings, any private land within or adjacent to the WEST MINDORO EXCLUSIVE
ECONOMIC ZONE and FREE PORT AREA for the following purpose:

(1) consolidation of lands for the WEST MINDORO EXCLUSIVE ECONOMIC ZONE and

FREE PORT AREA development
(2) acquisition of Right-Of-Way to the WEST MINDORO EXCLUSIVE ECONOMIC ZONE
ind

and FREE PORT AREA;

(3) the protection of watershed areas and natural assets valuable to the sustainable and
Inclusive growth and progress of the WEST MINDORO EXCLUSIVE ECONOMIC ZONE and FREE PORT
AREA.
(h) Goods manufactured by WEST MINDORO EXCLUSIVE ECONOMIC ZONE and FREE PORT
AREA enterprises shall be made available for immediate retail sale in the domestic market, subject to
the payment of corresponding taxes on raw materials and compliances to other regulations that may be
formulated by the WEMEEZA, together with the PEZA, the Bureau of Customs (BOC) and the DTI.
However, in order to protect domestic industries, a negative list of industries shall be drawn up and
regularly updated by the PEZA and the Board of Investments (BO!). Enterprises engaged in industries
included in such negative list shall not be allowed to sell their products locally; and
(i) The Security and Defense of the WEST MINDORO EXCLUSIVE ECONOMIC ZONE and FREE
PORT AREA and its perimeter fence shall be a joint responsibility of the National Government in
coordination with WEST MINDORO EXCLUSIVE ECONOMIC ZONE AUTHORITY (WEMEEZA) and the


LGU’s concerned. For this purpose, a special defense and security team shall be formed and organized to
de

power, duties and responsibilities.

SEC 5. Creation of WEST MINDORO EXCLUSIVE ECONOMIC ZONE and FREE PORT AREA ~ There
is hereby created a corporate body to be known as the WEST MINDORO EXCLUSIVE ECONOMIC ZONE
AUTHORITY herein referred to as the WEMEEZA, which shall manage and operate WEST MINDORO.

EXCLUSIVE ECONOMIC ZONE and FREE PORT AREA in accordance with the provisions of this Act. This
corporate franchise shall expire in Fifty (50) years counted from the first year after the effectivity of this
Act, unless otherwise extended by Congress. It shall be organized within One Hundred Eighty (180) Days

after the effectivity of this Act.

SEC 6. Capitalization - The WEST MINDORO EXCLUSIVE ECONOMIC ZONE AUTHORITY
(WEMEEZA) shall have an authorized capital stock of Two Billion (2,000,000,000) no-par value shares
with a minimum issue of Ten Pesos (P10.00) each, the majority shares of which shall be subscribed and
paid for by the National Government and the LGU’s embracing the WEST MINDORO EXCLUSIVE
ECONOMIC ZONE and FREE PORT AREA. The Board of Directors of the WEMEEZA may, with the written

concurrence of the Secretary of Finance, sell shares, representing not more than forty per centum (40%)

of the capital stock of the WEMEEZA to the general public under such policy as the Board and the
Secretary of Finance may determine. The National Government and the LGU’s shall, in no case, own less
than sixty per cent (60%) of the total issued and outstanding capital of the WEMEEZA.

‘The amount necessary to subscribe and pay for the shares of the National Government to the
capital stock of the WEMEEZA shall be included in the Annual General Appropriations Act. For LGU's the

funds shall be taken from their Internal Revenue Allotment and other local funds.

SEC 7. Principal Office of the WEST MINDORO EXCLUSIVE ECONOMIC ZONE AUTHORITY. - The
WEMEEZA shall maintain its principal offices at Sta. Cruz and Mamburao Occidental Mindoro, but it may
establish branches in any other parts the Philippines as may be necessary for the proper conduct of its

business.

Sec 8. Powers and Functions of the WEMEEZA. - The WEMEEZA shall have the following

functions;


{a) Recommend to the President of the Philippines the issuance of a proclamation to fix and
delimit the site of the WEST MINDORO EXCLUSIVE ECONOMIC ZONE and FREE PORT AREA;

(b) Operate, administer, manage and develop the WEST MINDORO EXCLUSIVE ECONOMIC
ZONE and FREE PORT AREA according to the principles and provisions set forth in this Act.

{c) Register, regulate and supervise the enterprises in the WEST MINDORO EXCLUSIVE
ECONOMIC ZONE and FREE PORT AREA in an efficient and decentralized manner, subject to existing
laws.

(d) To adopt, alter and use a corporate seal; to contract, lease, buy, sell, acquire, own and
dispose movable and immovable as well as personal and real property of whatever nature (including but
not limited to shares of stock or participation in private corporations or in limited partnerships, or in
joint ventures with limited liability), bonds, precious metals in bullions, ingots, and easily convertible
foreign exchange; to sue and be sued in order to carry out its duties, responsibilities, privileges, powers
and functions as granted and provided for in this Act; and to exercise the power of eminent domain for
Public use and public purpose;

{e) Within the limitation provided by law, to raise or borrow adequate and necessary funds from
local or foreign sources to finance its projects and programs under this Act, and for the purpose to issue
bonds, promissory notes, and other form of securities and to secure the same by a guarantee, pledge,
mortgage, deed of trust, or an assignment of all or part of its property or assets;

(f) To approve, accept, accredit and allow any local or foreign business, enterprise or investment.

In the Zone subject only to such rules and regulations as WEMEEZA may promulgate from time to time

conformity with the provisions of this Act and the limitations provided in the Constitution;

(g) To authorize or undertake, on its own through others and regulate the establishment,
‘operation and maintenance of public utilities, services, and infrastructure in the Zone such as shipping,
barging, stevedoring, cargo handling, hauling, warehousing, storage of cargo, or port services or
concessions, plers, wharves, bulkheads, bulk terminals, mooring areas, storage areas, roads, bridges,
terminals, conveyors, water supply and storage, sewerage, drainage, airport operation in coordination
with the Civil Aeronautics Board, and such other services and concessions or infrastructure necessary or
incidental to the accomplishment of the objectives of this Act; provided, however that the private
investors in the Zone shall be given priority in the awarding of contracts, franchises, licenses, or permits
for the establishment, operation, and maintenance of utilities, services and infrastructure in the Zone;
(h) To construct, acquire, own, lease, operate and maintain on its own or through others by

virtue of contracts, franchise, licenses, or permits under any of the schemes allowed in the Republic Act


6957 (the Build-Operate-Transfer Law, as amended), or joint venture, adequate facilities and
infrastructures required or needed for the operation and development of the WEST MINDORO
EXCLUSIVE ECONOMIC ZONE and FREE PORT AREA, in coordination with appropriate National and Local
Government Authorities and in conformity with applicable laws thereon;

{i) Operate on its own either directly or through a subsidiary entity, or concession or license to
other, tourism-related activities and sports facilities such as golf courses and others, under priorities and
standards set by WEMEEZA;

() Protect, preserve, maintain and develop the virgin forest, beaches, coral and coral reefs
within the Zone. The virgin forest within the Zone will be proclaimed as a National Park and will be
covered permanent total log banned. For this purpose, the rules and regulations of the Department of
Environment and Natural Resources and other government agencies in the above functions shall be
implemented by the WEMEEZA.

{k) To adopt, implement and enforce reasonable measures and standards to control pollution
within the Zone;

(I) To provide security for the Zone in coordination with the National and Local Governments
For this purpose, WEMEEZA may establish and maintain its own Security and Defense Force and Fire
fighting capability or hire others to provide the same;

(m) Coordinate with LGU's and exercise general supervisions over the development plans,
activities and operations of the WEST MINDORO EXCLUSIVE ECONOMIC ZONE AUTHORITY;

(n) To form, establish, organize and maintain subsidiary corporations as its business and
‘operation may require whether under the laws of the Philippines or not;

(0) Exercise such powers as may be essential, necessary or incidental to the powers granted to it
hereunder, as well as those that shall enable it to carry out, implement and accomplish the purposes,
objectives and policies of this Act; and

(p) To issue rules and regulations consistent with the provisions of this Act as may be necessary

to accomplish and implement the purposes, objectives and policies provided herein.

SEC 9. Board of Directors of WEMEEZA.
ECONOMIC ZONE AUTHORITY shall be vested in and exercised by a Board of Directors, herein after

‘The powers of the WEST MINDORO EXCLUSIVE

referred to as the Board, which shall be composed of Fifteen (15) Members, to wit;
(a) The Secretary of Trade and Industry who shall serve as an Ex Officio Chairman of the Board of

Directors and Four (4) other representatives of the National Government;


(b) The Mayors of the Municipalities of Sta. Cruz and Mamburao, in the Province of Occidental
Mindoro, as Ex-Officio Voting Members;

(c) Two (2) representatives of Labor from among the workers in the WEST MINDORO EXCLUSIVE
ECONOMIC ZONE and FREE PORT AREA;

(d) Four (4) representatives from the business and investment sectors in the Zone;

{e) Two (2) representatives of the private sector coming from the residents of the Municipalities

of Sta. Cruz and Mamburao.

The Chairman and the member of the Board, except the ex-officio members, shall be appointed

by the President of the Philippines to serve for a term of Three (3) years, unless sooner removed for

cause or dies or resigns voluntarily. In case of death, resignation or removal for cause, the replacement

shall serve only the unexpired portion of the term.

Except for the representatives of the business and investment sectors, no person shall be
appointed by the President of the Philippines as a member of the Board unless he is a Filipino citizen, of
ood moral character and of recognized competence in some relevant fields in business, banking and
finance, shipping, business or labor management, human resources, port operations, engineering, or

law.

Members of the Board shall receive a reasonable per diem which shall not be less than the
‘amount equivalent to the representation and transportation allowances of the members of the Board
and/or as may be determined by the Department of Budget and Management; provided, however that
the total per diem collected each month shall not exceed the equivalent per diems for four (4) meetings.
Unless and until the President of the Philippines has fixed a higher per diem for the members of the

Board, such per diem shall not be more than Ten Thousand Pesos (P10,000.00) for every Board meeting.

SEC 10. Administrative and Chief Executive Officer - The President of the Philippines shall
appoint a full-time professional and competent Administrator and Chief Executive Officer for the WEST
MINDORO EXCLUSIVE ECONOMIC ZONE AUTHORITY, whose compensation shall be determined by its
Board of Directors and shall be in accordance with the revised compensation and position classification
le to the Board and

system. The administrator as chief executive officer of WEMEEZA shall be respon: