Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
Third Regular Session 
House Bill No.  10834
Introduced by HONORABLE MARCELINO C. LIBANAN 
EXPLANATORY NOTE 
Eastern Samar is one of the provinces in the Philippines with vast tracts of land devoted to 
coconut farming. The coconut industry plays a significant role in the livelihoods of many residents, 
with the majority of the province's agricultural sector being centered on coconut production. 
However, despite the province’s abundant coconut resources, much of the raw coconut produce is 
exported to other regions for processing. This limits the value-added benefits that could be retained 
within the local economy, thereby constraining the province's economic growth. 
However, by establishing a coconut oil mill and refinery, the province can transform raw 
coconuts into high-value products such as coconut oil, which can be sold domestically and 
internationally. This will increase the income of coconut farmers and create new opportunities for 
small and medium enterprises (SMEs) involved in the supply chain. 
Further, the establishment of a coconut oil mill and refinery will generate employment 
opportunities for local residents, not only in the operation of the facility but also in ancillary 
industries such as transportation, packaging, and distribution. This can significantly reduce poverty 
levels in the province by providing stable and well-paying jobs. 
Besides, the presence of a local processing facility will encourage more intensive and 
diversified coconut farming practices. Farmers will be incentivized to increase production and 
improve the quality of their produce, knowing that there is a readily accessible market for their 
coconuts within the province. 
With the ability to produce refined coconut oil, Eastern Samar can tap into the growing 
global demand for coconut-based products. This will enhance the province’s contribution to the 
national economy by increasing its export earnings and helping to stabilize the balance of trade. 
The establishment of a local processing facility will contribute to the country's food security by 
August 28, 2024
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ensuring a stable supply of coconut oil, a vital ingredient in the Filipino diet and an important 
export commodity. 
The proposed facility will also provide opportunities to utilize coconut by-products, such 
as coconut husks and shells, which can be processed into coir, charcoal, and other eco-friendly 
products. This will contribute to waste reduction and promote environmental sustainability in the 
province. 
The coconut oil mill and refinery can incorporate green technologies, such as using coconut 
husks and shells as biofuel, thereby reducing the facility's carbon footprint and promoting 
sustainable energy practices. 
Consequently, the establishment of a coconut oil mill and refinery in Eastern Samar 
represents a strategic investment in the province's future. This project will unlock the full potential 
of the local coconut industry, drive economic development, create jobs, and improve the standard 
of living for residents. It will also position Eastern Samar as a key player in the national and global 
coconut oil market. The proposed bill is, therefore, a critical step toward realizing these goals, and 
its passage is essential for the sustained progress and prosperity of Eastern Samar. 
MARCELINO C. LIBANAN 
Representative 
4Ps Partylist 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
Third Regular Session 
House Bill No.  10834 
Introduced by HONORABLE MARCELINO C. LIBANAN 
AN ACT 
ESTABLISHING A COCONUT OIL MILLING AND REFINERY PLANT IN THE 
MUNICIPALITY OF SULAT, PROVINCE OF EASTERN SAMAR, APPROPRIATING 
FUNDS THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. This Act shall be known as the “Eastern Samar Coconut Oil Milling and Refinery 
Plant Act.” 
SECTION 2. Declaration of Policy. It is hereby declared the policy of the State to promote the 
development and growth of the coconut industry as a vital component of the national economy. In 
line with this policy, the State shall establish a coconut oil milling and refinery plant in Eastern 
Samar to enhance the value-added processing of coconut products, create employment, and 
stimulate economic development in the province and in nearby provinces. 
SECTION 3. Establishment of the Coconut Oil Milling and Refinery Plant. There shall be 
established, under the supervision of the Philippine Coconut Authority (PCA), a state-of-the-art 
coconut oil milling and refinery plant in a strategic location within the Municipality of Sulat in the 
Province of Eastern Samar. The exact location shall be determined by the PCA, in consultation 
with the Local Government Unit of Sulat and the Provincial Government of Eastern Samar, based 
on the availability of land, proximity to coconut production areas, and accessibility to 
transportation infrastructure. 
SECTION 4. Objectives. The coconut oil milling and refinery plant shall have the following 
objectives: 


(a) To process raw coconuts into coconut oil and other high-value coconut-based products for 
domestic and international markets; 
(b) To provide a stable and profitable market for coconut farmers in Eastern Samar and nearby 
provinces, thereby increasing their income and improving their livelihood; 
(c) To generate employment opportunities in Eastern Samar and neighboring provinces; 
(d) To contribute to the national economy by enhancing the export potential of the country’s 
coconut products; and 
(e) To promote the sustainable and environmentally friendly use of coconut by-products. 
SECTION 5. Administration and Management. The Department of Agriculture, through the 
Philippine Coconut Authority (PCA) shall oversee the establishment, operation, and management 
of the coconut oil milling and refinery plant. The PCA is authorized to enter into public-private 
partnerships (PPP), joint ventures, or other cooperative arrangements with private entities, local 
government units (LGUs), and other relevant stakeholders to ensure the efficient and effective 
operation of the facility. 
SECTION 6. Appropriation of Funds. The initial funding for the establishment of the coconut 
oil milling and refinery plant shall be charged against the current appropriations of the Philippine 
Coconut Authority (PCA) and the Department of Agriculture (DA). Thereafter, the amount 
necessary for the continued operation and maintenance of the plant shall be included in the annual 
General Appropriations Act (GAA). 
SECTION 7. Incentives. The plant, along with its investors and operators, shall be entitled to tax 
incentives and other benefits as provided under existing laws, including, but not limited to, the 
following: 
(a) Income tax holidays for the first five (5) years of operation; 
(b) Exemption from customs duties and national taxes on importation of capital equipment, raw 
materials, and other inputs necessary for the plant’s operations; and 
(c) Priority access to financing programs and credit facilities offered by government financial 
institutions. 
SECTION 8. Support to Coconut Farmers. The PCA, in coordination with the Department of 
Agriculture (DA) and the Department of Trade and Industry (DTI), shall implement programs to 
support and capacitate coconut farmers in Eastern Samar and nearby provinces. These programs 
shall include technical assistance, training on sustainable farming practices, and access to 
affordable credit and inputs. 
SECTION 9. Monitoring and Evaluation. The PCA shall regularly monitor and evaluate the 
performance of the coconut oil milling and refinery plant to ensure that it meets its objectives. The 


PCA shall submit an annual report to Congress on the plant’s operations, including its economic 
impact on Eastern Samar and the surrounding areas. 
SECTION 10. Implementing Rules and Regulations. Within ninety (90) days from the 
effectivity of this Act, the Philippine Coconut Authority (PCA), in consultation with the 
Department of Agriculture (DA) and other relevant government agencies, shall promulgate the 
necessary rules and regulations to implement the provisions of this Act. 
SECTION 11. Separability Clause. If any provision of this Act is declared unconstitutional or 
invalid, the other provisions not affected thereby shall remain in full force and effect. 
SECTION 12. Repealing Clause. All laws, decrees, executive orders, rules, and regulations, or 
parts thereof that are inconsistent with the provisions of this Act are hereby repealed or modified 
accordingly. 
SECTION 13. Effectivity. This Act shall take effect fifteen (15) days after its publication in the 
Official Gazette or in a newspaper of general circulation. 
Approved,