Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Fifteenth Congress
Third Regular Session

COMMITTEE REPORT NO. 2659

Submitted by the Committees on Agriculture Food and Appropriations on

a 30 JAN 2013 6880
Re: House Bill No.

Recommending its approval in substitution of House Bill No. 6113
Sponsors: Representatives Mark Llandro L. Mendoza, Alfredo -Albee’ B. Benitez and
Jocelyn Sy-Limkaichong

Mr. Speaker:

The Committee on A;
which was referred House Bil
Benitez, entitled:

iculture & Food and the Committee on Appropriations to
No. 6113, introduced by Representative Alfredo ‘Albee’ B.

AN ACT STRENGTHENING THE DEVELOPMENT OF THE SUGAR
CANE INDUSTRY, ESTABLISHING THE SUGAR CANE INDUSTRY
DEVELOPMENT FUND, AMENDING FOR THE PURPOSE
PRESIDENTIAL DECREE NO. 1890, PROVIDING FUNDS
THEREFOR AND FOR OTHER PURPOSES

has considered the same and has the honor to recommend te the House that the attached
House Bill No. , entitled:

AN ACT STRENGTHENING THE DEVELOPM! OF THE SUGAR
CANE INDUSTRY BY ESTABLISHING THE SUGAR CANF
INDUSTRY DEVELOPMENT FUND, PROVIDING FUNDS
THEREFOR AND FOR OTHER PURPOS|

be approved in substitution of House Bill No. 6113, with Representatives Alfredo “Albee”
B, Benitez, Mark Llandro Mendoza, Jesus Crispin Remulla, Jocelyn Sy-Limkaichong,
us Crispin Remulla, Tomas Apacible, Robert Raymund Estrella, Daryl G Abayon,

‘nte Paez. Jun Omar Ebdane, and Alejandro Mirasol as authors thereof.



Republic of the Phil
HOUSE OF REPRE
Quezon City

ines
ATIVES

FIFTEENTH CONGRESS
Third Regular Session

6880

HOUSE BILL NO."

AN ACT
STRENGTHENING THE SUGAR CANE INDUSTRY BY ESTABLISHING
SUGAR CANE INDUSTRY DEVELOPMENT FUND, PROVIDING FUNDS TH
AND FOR OTHER PURPOSES

Introduced by Representatives Alfredo “Albee” B. Benitez, Mark Llandro L, Mendoza, Jesus
Crispin Remulla, Jocelyn Sy-Limkaichong, Tomas Apacible, Robert Raymund Estrella, Daryl
Grace Abayon, Cresente Paez, Jun Omar Ebdane, and Alejandro Mirasol

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Short Title — This Act shall be known as the “Sugar Cane Industry
Development Act of 2013”

SEC 2. Declaration of Policy. — It is hereby declared tae policy of the State to provide
policy directions and support programs/projects for the sustained development and
diversification of the sugarcane industry inasmuch as the industry provides employment and
livelihood to a sizeable number of Filipinos in the agricultural sector, contributes s!znificantly to
the national economy as well as local economies of host provinces, earns for the co: wy foreign
reserves from exports to other countries, and is vital for food sufficiency and energy security of
the country.

It is hereby further declared that the development and diversification of the sugarcane
industry shall be directed primarily to the increase in incomes of the farmers, the enhancement of
the productivity of sugar planters and sugar mills and the improvement in marketing and trading
practices.

. 3- Development of the Sugar Cane Industry—The main focus of the development
of the sugar industry shall be on the following measures, programs and projects:

A. Industry-wide development

1. The transformation of sugarcane industry from the limited “raw and refined sugar
production” into a diversified industry producing not mainly raw and “efined sugar,
but also power, waste disposition and other possible biochemical produ. .s primarily
through integration of by-products production with sugar processing:

a


v

The establishment of Special Economic Zones for Sugarcane Industry pursuant to
R.A. No. 7916 (Special Economic Zone Act of 1995), and/or the designation and
establishment of nuclear farms/Agro-Industrial Districts for Sugarcane Industry
entitled to the existing fiscal incentives under Book VI of Executive Order No. 226
otherwise known as the Omnibus Investments Code of 1987 as well as Sections 4.5, 6
and 7 of R.A. 10000 (The Agri-Agra Reform Credit Act of 2009). promoting, among
others, block/corporate farming to achieve economies of scale;

The development of programs that are environinent friendly and will attract
investment in the development, production, or manufacture of products derived from
sugareane, sugar. molasses, cane juice, crop waste, bagasse, filter mud and other by-
products and co-products of sugarcane milling:

The institution of marketing programs that will lead to expansion of markets for
sugarcane and by-products;

The building and/or improvement of existing trans-loading ports for export or coast
wide transport of sugar and its by products in key sugar producing areas through
various programs or projects of other government agencies such as National
Economic Development Authority (NEDA), Department of Transportation and
Communication (DOTC) and Philippine Ports Authority (PPA);

The development of a sugar cane industry that shall benefit sugar farmers, planters
and mill workers;

The encouragement and intensification of farm productivity improvement, including
but not limited to farm mechanization, organic farming, fertilization. irrigation,
intensified inter-cropping, and dispersal of plantirg materials and improved high
yielding varieties;

The sustained support/conduct/sponsorship of research and development on the sugar
cane industry including, among others, high yielding varieties, farm imprements, farm
methodologies. by-products profitability and marketing/promotion tech.tiques. new
manufacturing chemical and biotechnologies for bagasse, molasses and other by-
products, weather monitoring and soil fertility mapping:

B. Regulation of sugar industry

The effective monitoring of the withdrawal, transfer, transport and movement of
sugar and premixes: Provided, That, all sugar warehouses and storage facilities are
required to register with the Sugar Regulatory Administration (SRA):

The institution of electronic quedanning, expansion of quedanning to molasses and
the implementation of the quedan system under Reyublic Act No. 2137 (Warehouse
Receipts Law);


il 3. The classification of imported sugar and premixes as either ~ ‘

2 imported at a time when there is a sufficiency sugar stocks: Provided, That the
3 Bureau of Customs (BOC) shall not release imported sugar and premixes without
4 requisite SRA clearances and classification;

e

6 4. The export of refined sugar to the world market shall be subjected 10 VAT zero
7 percent rate from the time it is withdrawn or released from the sugar mill/refinery
8 including refined sugar withdrawn for constructive export to Customs Bonded
9 Warehouse (CBW) of food processors that are duly licensed and registered with SRA;
10

u 5. The wastewater discharge of mills that meet the standard of the Department of
2 Agriculture on safe re-use of waste water for irrigation and other agricultural
3 purposes shall not be imposed any discharge fee

14

15 C. Fund management

16

uv ‘The management and proper utilization and disposition of the Sugarcane Industry
18 Development Fund established under Sec. 4 of this Act, with special emphasis on the
19 industry’s contribution to the food security program of the national government

20

2 SEC. 4 -Establishment of Sugar Cane Industry Development Fund

22

23 a. There is hereby established a Sugar Cane Industry Development Fund
24 (“Sugar Fund”) to support the implementation of the development strategy
25 identified in Sec. 3 of this Act. The Sugar Fund shall be held in trust by
26 the Philippine Sugar Corporation created under P.D. 1890.

27

28 b. Initially, the Sugar Fund shall be utilized for the following specific
29 purposes:
30

31 1. Finance the establishment of Special Economic Zones, nuclear
32 farms/Agro-Industrial Districts as prcvided for in Sec 3 A.2 of this
33 Act;

34

35 2. Provide financial assistance in the form of loans, guarantee and other
36 suitable credit commodities or arrangements (e.g. Farmers Trust,
37 Special Purpose Vehicles) to the sugar farmers, plante-s and mills
38 covering purchase of seedlings, cane varieties, pesticides and fertilizer;
39 acquisition of farm machinery and equipment; construction of farm to
40 market roads; and construction or building of irrigation or water
4a impounding facilities and water distribution networks:

42

4B 3. Provide financial conduiting/resources for industries harnessing the
44 efficient use of the energy potential of the sugar cane (e.g. the Ethanol
45 program) and utilization of farm wastes (e.g. bagasse as raw material
46 for pulp and paper, boards and furfural and animal feeds) and other by-
47 products using chemical and biotechnologies:


1 4. Conduct researches or feasibility studies to improve efficiency and
2 productivity of farms and mills, identify areas for diversification,
3 identify and develop other markets for sugar and its by-products and
4 co-products particularly in the area of renewable energy and
5 biochemical industry;

6

7 Training of mill personnel on current technologies on efficiency,
8 productivity and diversification; and

9

10 6. Finance socio-economic programs for sugar farmers and mill workers
rt including but not limited to livelihood programs and trainings in
2 addition to the programs under Republic Act 6982 (Strengthening the
a Social Amelioration program in the sugar industry)

14
15 ¢. The Sugar Fund shall be constituted out of the existing funds and
16 appropriations for the agriculture and fisheries modernization such as:

17
18 1. The Agricultural Competitiveness Enhancement Fund (ACEF) ~ The
19 Department of Agriculture (DA), in consultation with the
20 Congressional Oversight Committee on Agriculture and Fisheries
2 Modernization (COCAFM), shall allocate annually from year 2013+
2 2015 or until all ACEF funds are exhausted, and shall continue with
23 any extension thereof, a portion of ACEF to fund the infrastructure
24 support projects of the sugarcane industry such as farm-to-mill roads

25 and irrigation, product development, and research & development

26 projects to include all its subsectors, namely, farm sector, sugar sector,

27 bioethanol sector, power generation sector and farm/mill support

28 industries sector such as recipients or beneficiaries of funding support;

29

30 2. The General Appropriations for the Agriculture Sector ~ The DA shall

31 provide allocation to the sugarcane industry and all its subsectors from

32 its annual General Appropriations Act (GAA) or from the Agriculture

33 and Fisheries Modernization Act (AFMA) funds and prioritize the
34 programs/projects of the sugarcane industry in its annual expenditure
35 prioritization plan for ten successive fiscal years (FY 2014-FY2023).
36
37 3. All sugar-producing local government units (LGUs) shall allocate a
38 portion of their Incremental Reformed-Value-Added Tax — Internal
39 Revenue Allotment (R-VAT -IRA) for the infrastructure and
40 Research, Development & Extension (RD&E) projets of the
41 sugareane industry to include all its subsectors stated in Section 4.c1.
42
43 SEC.5. Board of Directors of the Philippine Sugar Corporation. The powers and

44 functions of the Philippine Sugar Corporation (PHILSUCOR), created under Presidential Decree
45 No. 1890, shall be exercised by a Board of Directors referred to as the “Board” which shall be
46 composed of eleven (11) members, as follows:


(a) the Administrator of the Sugar Regulatory Administration (SRA), Chairperson;

(b) the President of the Philippine Sugar Corporation (PHILSUCOR), Vice-chairperson;
and

(c) the remaining nine (9) members nominated by SRA, of which five (5) shall come
from the sugar farmers sector and four (4) from the sugar millers sector.

Except for ex-officio members of the Board, the appointment and qualification of the
other members of the Board shall be in accordance with Republic Act No. 10149 or the “GOCC
Governance Act of 2011”

SEC. 6. Implememing Agency. ~ The Sugar Regulatory Administration (SRA) shall
formulate a Ten-year Sugarcane Industry Development Program (SIDP 2014-2023) which shall
be reviewed and updated annually. in consultation with the major stakeholders of the sugarcane
industry and its subsectors which shall serve as basis for the program / project proposals that
shall be submitted to the COCAFM, the DA and the LGUs for funding as provided for in
Sections 4.c1, 4.c2 and 4.c3.

SEC. 7. Transitory Provisions. ~ Upon the effectivity of this Act, the positions in the
Board of Directors of PHILSUCOR shall be deemed vacant, and the President shall appoint new
members based on the provision of this Act; Provided, however, That the members of the Board
shall hold over until the new members are appointed.

SEC.8. Separability Clause. — If any provision of this Act is declared unconstitutional,
the validity of the remaining provisions hereof shall remain in full force and effect.

SEC. 9. Repealing Clause. — Section 8 of Presidential Decree No. 18) 1s hereby
repealed. Other laws, decrees, executive orders and rules and regulations or part or parts thereof
inconsistent with any provision of this Act are hereby repealed, modified or amended
accordingly.

SEC. 10. Effectivity Clause. — This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved,


6880

FACT SHEET
House Bill No. 6113

AN ACT STRENGTHENING THE DEVELOPMENT OF THE SUGAR CANE
INDUSTRY, ESTABLISHING THE SUGAR CANE ‘NOUSTRY
DEVELOPMENT FUND, AND AMENDING SECTION 8 OF PRESIDENTIAL
DECREE NO. 1890, PROVIDING FUNDS THEREFOR AND FOR OTHER
PURPOSES

Introduced by Rep. ALFREDO “ALBEE” B. BENITEZ
Committee Referral: COMMITTEE ON AGRICULTURE AND FOOD
Committee Chairperson: | REPRESENTATIVE MARK LLANDRO L. MENDOZA

OBJECTIVE:

+ To revitalize and strengthen the sugar cane incustry through diversification,
development, and financing program promoting the interests of sugar cane
farmersiplanters, mills workers and consumers as well as contributing to the food
security objectives of the national government

KEY PROVISIONS:

* _ Establishes the Sugar Cane Industry Development Fund (Sugar Fund), to be
held in trust by the Philippine Sugar Corporation (PhilSuCor) created under P.D.
1890. The Sugar Fund shall be constituted out of the existing funds and
appropriations for the agriculture and fisheries modernization such as:

a. Agricultural Competitiveness Enhancement Fund; and
b. General Appropriations for the Agriculture Sector;
c. Incremental R-VAT (RA 9337) which forms part of the LGU-IRA.

* Establishes Special Economic Zones for the Sugar Cane Industry, and/or the
designation and establishment of nucleus farms / agri-industrial districts for the
sugar industry.

* Develops programs that are environment friendly and will attract ° ivestment in
the development, production, or manufacture of products, by-products and co-
products of sugar cane milling

* Provides financial assistance to the sugar farmers, planters and mills covering
purchase of seedlings, cane varieties, pesticides and fertilizer, acquisition of
farm machinery and equipment; construction of farm to market roads; and
construction or building of irrigation or water impounding facilities and water
distribution networks


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

ro)
HOUSE BILL NO.

AN ACT STRENGTHENING THE DEVELOPMENT OF THE SUGAR CANE
INDUSTRY, ESTABLISHING THE SUGAR CANE INDUSTRY
DEVELOPMENT FUND, AMENDING FOR THE PURPOSE PRESIDENTIAL
DECREE NO. 1890, PROVIDING FUNDS THEREFOR AND FOR OTHER
PURPOSES

Introduced by Honorable Alfredo “Albee” B. Benitez
Srd District, Negros Occidental

EXPLANATORY NOTE

‘Traditionally, the Sugar Industry has been given extraordinary support by
the government through various legislations and financial accommodations,
primarily because of tne critical contribution of the Sugar export industry in the
country’s economic development. Hence, in 1937, the Philippine Sugar
Administration was created, renamed it as the Sugar Quota Administration in
1957, followed by the various Presidential Decrees during the Marcos
Administration and finally the Sugar Regulatory Administration (SRA) Executive
Order 18 in 1986 was established.

The volatility and fluctuations of the price of sugar (raw and refined) in the
world market had resulted in the various phase of government's interference over
the years. The apparent neglect of the development of the Sugar by-products
further aggravated uncertainty in the future of the sugarcane industry

By 2015, the tariff on sugar shall be finally lifted. This scenario has spawned
numerous reactions of uncertainty from the sugar planters, millers and consumers
alike.

It is therefore, incumbent upon our policy-makers to institute measures,
both by legislation and executive implementation of specific programs and projects
that will cushion if not counter the possible destabilization effects of the 2015 “no-
tariff” provision of the sugar cane industry as a whole.


‘This bill therefore aims to revitalize and strengthen the Sugar cane Industry
through a diversification, development, and financing program promoting the
interests of sugarcane farmers/planters, mills workers and consumers as well as
contributing to the food security objectives of the national government.

Specifically, programs and projects to diversify sugar cane production
involving not only raw and refined sugar but also its by-products namely bagasse,
molasses and filter mud, among others shall be identified, developed, promoted and
implemented starting 2013. Additionally, funding for these programs and projects
shall be assured through the establishment of a Sugar Development Fund.

In view of the foregoing, approval of this bill

earnestly sought.

ALFREDO “ALBEE” B. BENITEZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

HOUSE BILL No.__ 5413

AN ACT STRENGTHENING THE DEVELOPMENT OF THE SUGAR CANE
INDUSTRY, ESTABLISHING THE SUGAR CANE INDUSTRY DEVELOPMENT
FUND, AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 1890,

PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES

Introduced by Honorable Alfredo “Albee” B. Benitez
3rd District, Negros Occidental

SECTION 1. Short Title - This Act shall be known as the “Sugar Cane
Industry Development Act of 2012”.

SEC 2. Declaration of Policy. - It is hereby declared the policy of the State
to provide policy directions and support programs/projects for the sustained
development and diversification of the sugarcane industry inasmuch as the
industry provides employment and livelihood to a sizeable number of Filipinos
in the agricultural sector, contributes significantly to the national economy as
well as local economies of host provinces, earns for the country foreign reserves
from exports to other countries, and is vital for food sufficies and energy
security of the country.

For the reasons stated, it is hereby further declared that the development
and diversification of the sugarcane industry shall be directed primarily to the
increase in incomes of the farmers, the enhancement of the productivity of
sugar planters and sugar mills and the improvement in marketing and trading
practices in terms of administrative, policy directives and financial assistance
to the sugarcane industry in support of the food security objectives and
environmental concerns of the national government.


SEC. 3- Development of the Sugar Cane Industry—

The main focus of the development of the sugar industry shall be on the
following measures, programs and projects:

A. Industry-wide development

1. In general, the transformation of sugarcane industry from the limited
“raw and refined sugar production” into a diversified industry
producing not mainly raw and refined sugar, but also power, waste
disposition and other possible biochemical products primarily through
integration of by-products production with sugar processing;

2. The establishment of Special Economic Zones for Sugarcane Industry
pursuant to R.A. No. 7916 (Special Economic Zone Act of 1995),
and/or the designation and establishment of nuclear farms/Agro-
Industrial Districts for Sugarcane Industry to be entitled to the
existing fiscal incentives under Book VI of Executive Order No. 226
otherwise known as the Omnibus Investments Code of 1987 as well
as Sections 4,5, 6 and 7 of R.A. 10000 (The Agri-Agra Reform Credit
Act of 2009), promoting, among others, block/corporate farming to
achieve economies of scale;

3. The development of programs that are environment friendly and will
attract investment in the development, production, or manufacture of
products derived from sugarcane, sugar, molasses, cane juice, crop
waste, bagasse, filter mud and other by-products and co-products of
sugarcane milling;

4, The institution of marketing programs that will lead to expansion of
markets for sugarcane and by-products;

5, The building and/or improvement of existing trans-loading ports for
export or coast-wide transport of sugar and its by products in key
sugar producing areas through various programs or projects of other
government agencies such as NEDA, DOTC and PPA;

6. The development of a sugar cane industry that shall benefit sugar
farmers, planters and mill workers;

7. ‘The encouragement and intensification of farm productivity
improvement, including but not limited to farm mechanization,
organic farming, fertilization, irrigation, intensified inter-cropping,
and dispersal of planting materials and improved high yielding
varieties;


8. The sustained — support/conduct/sponsorship of research and

development on the sugar cane industry including, among others,
high yielding varieties, farm implements, farm methodologies, by.
products profitability and marketing/promotion techniques, new
manufacturing chemical and biotechnologies for bagasse, molasses
and other by-products, weather monitoring and soil fertility mapping;

B. Regulation of sugar industry

1. The effective monitoring of the withdrawal, transfer, transport and
movement of sugar and premixes; provided, that, all sugar
warehouses and storage facilities are required to register with SRA.

2. The classification of imported sugar and premixes as either “C”, “D”, or
“E” when imported at a time when there is a sufficiency sugar stocks;
provided, that the Bureau of Customs (BOC) shall not release

imported sugar and premixes without requisite SRA clearances and
classification;

3. The export of refined sugar to the world market shall be subjected to
VAT zero percent rate from the time it is withdrawn or release from
the sugar mill/refinery including refined sugar withdrawn for
constructive export to CBW warehouse of food processors that are
duly licensed and registered with SRA;

4. The wastewater discharge of mills that meet the standard of the
Department of Agriculture on safe re-use of waste water for irrigation
and other agricultural purposes shall not be imposed any discharge
fee.

C. Fund management

1. The management and proper utilization and disposition of the
Sugarcane Industry Development Fund established under Sec. 4 of
this Act, with special emphasis on the industry’s contribution to the
food security program of the national government.

SEC. 4 -Establishment of Sugar Cane Industry Development Fund
1. There is hereby established a Sugar Cane Industry Development
Fund (“Sugar Fund”) to support the implementation of the
development strategy identified in Sec. 3 of this Act. The Sugar


a Sg
Fund shall be held in trust by the Philippine Sugar Corporation
created under P.D. 1890.
2. Initially, the Sugar Fund shall be utilized for the following
specific purposes:

a. Finance the establishment of Special Economic Zones,
nuclear farms/Agro-Industrial Districts as provided for in
Sec 4 (2. a) of this Act;

b. Provide financial assistance to the sugar farmers, planters
and mills covering purchase of seedlings, cane varieties,
pesticides and fertilizer; acquisition of farm machinery
and equipment; construction of farm to market roads;
and construction or building of irrigation or water
impounding facilities and water distribution networks;

c. Provide financial conduiting/resources for industries
harnessing the efficient use of the energy potential of the
sugar cane (e.g. the Ethanol program) and utilization of
farm wastes (e.g. bagasse as raw material for pulp and
paper, boards and furfural and animal feeds) and other
by-products using chemical and biotechnologies;

d. Conduct researches or feasibility studies to improve
efficiency and productivity of farms and mills, identify
areas for diversification, identify and develop other
markets for sugar and it by-products and co-products
particularly in the area of renewable energy and
biochemical industry;

e. Training of mill personnel on current technologies on
efficiency, productivity and diversification;

f. Finance socio-economic programs for sugar farmers and
mill workers including but not limited to livelihood
programs and trainings in addition to the programs under
Republic Act 6982 (Strengthening the Social Amelioration
program in the sugar industry);

g. Scholarships for deserving university/college studes
taking relevant degrees to the sugar cane industry; and

3. The Sugar Fund shall be constituted and collected from the
proceeds of fifteen percent (15%) of:

a. The Value Added Tax (VAT) on the sale and importation of
refined sugar, and sugar cane by-products; and

b. The total tariff collected on the importation of raw sugar
(AHTN 1701.11.00), refined sugar (AHTN 1701.99 and its
subheadings), and premix sugar (AHTN 1701.91.00 and
2106.90.52).

All the proceeds collected from the above sources shall be
remitted in full by the Department of Finance to a separate trust
fund maintained by the Philippine Sugar Corporation (PhilSuCor),
created under P.D 1890, on or before August 1 of every year;

4

ts



Lo eg

provided, that the PhilSuCor shall utilize and disburse such trust
fund in accordance with the purposes enumerated in Sec. 3 of this
Act and its Implementing Rules and Regulations; provided further,
that only the interest earnings of the trust fund shall be available
for the operational expenses of implementing the purposes of the
trust fund; provided moreover, that the year-end cumulative
financial balance of the trust fund shall constitute as the minimum
matching amount of credit available to the sugarcane industry
under Sec. 6 of R.A. 10000 (the Agri-Agra Reform Credit Act of
2009); and provided finally, that this trust fund shall be audited
by the Commission on Audit separately from the other
funds/accounts of PhilSuCor.

SEC. 5. Members of the Board of the Philippine Sugar Corporation--
Section 8 of P.D. 1890 is hereby amended as follows

“(a) THE ADMINISTRATOR OF THE SUGAR REGULATORY
COMMISSION SHALL BE THE CHAIRMAN OF THE BOARD”;

“(b) XXX

“(c) THE ADMINISTRATOR OF THE SUGAR REGULATORY
COMMISSION SHALL BE THE CHAIRMAN OF THE BOARD”;

ALL THE ELEVEN MEMBERS OF THE BOARD SHALL BE
NOMINATED BY SRA OF WHICH FIVE (5) SHALL COME FROM
THE SUGAR FARMERS SECTOR, FIVE (5) FROM THE SUGAR
MILLERS SECTOR AND ONE (1) FROM THE INTERNATIONAL
TRADER SECTOR;

SEC. 6. Transitory Provisions. - Upon the effectivity of this Act, the
positions in the Board of Directors of PHILSUCOR shall be deemed vacant, and
the President shall appoint new members based on the provision of this Act;
provided, however, the members of the Board shall hold over until the new
members are appointed.

SEC. 7. Implementing Agency. - The Sugar Regularoty Administration
(SRA) shall be the primary implementing agency of this Act. The SRA, together
with the PhilSuCor and representatives of sugar farmers, planters and mills,
shall formulate the implementing rules and regulations that shall, among
others, identify and establish the requirements and restrictions governing the
execution of the above purposes no later than three (3) months from the
effectivity of this Act.



tT £

SEC. 8. Repealing Clause. — All laws, decrees, executive orders and
rules and regulations or part or parts thereof inconsistent with any provision of
this Act are hereby repealed, modified or amended accordingly.

SEC. 9. Separability Clause. — If any provision of this Act is declared
unconstitutional, the validity of the remaining provisions hereof shall remain in
full force and effect.

SEC, 10. Effectivity. — This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in at least two (2) newspapers of
general circulation.

Approved,


Republic of the Philippines
House of Representatives
Quezon City, Aletro AManils

HON. JOCELYN S. LIMKAICHONG
Representative, 1st District, Negros Oriental
Chairperson, Committee on Appropriations

January 22, 2013

HON. MARK LLANDRO L. MENDOZA
Chairperson
Committee on Agriculture and Food

Dear Chairperson Mendoza’

Please be informed that the Committee on Appropriations in its meeting held today
at Conference Rooms 14 and 15, Ramon V. Mitra Building, approved to report out
Substitute Bill to House Bill No. 6113, titled, “AN ACT STRENGTHENING THE
DEVELOPMENT OF THE SUGAR CANE INDUSTRY, ESTABLISHING FOR THE
PURPOSE THE SUGAR CANE INDUSTRY DEVELOPMENT FUND AND
AMENDING SECTION 8 OF PRESIDENTIAL DECREE NO. 1890, PROVIDING
FUNDS THEREFOR AND FOR OTHER PURPOSES”, with the following
amendments:

1. On Section 4, Subsection 3, page 4, lines 35 - 46 and page 6, lines 1 - 21,
delete the whole subsection and in lieu there of substitute the following:

3. THE SUGAR FUND SHALL BE CONSTITUTED OUT OF THE EXISTING
FUNDS AND APPROPRIATIONS FOR THE AGRICULTURE AND.
FISHERIES MODERNIZATION SUCH AS:

A AGRICULTURAL COMPETITIVENESS & ENHANCEMENT FUND
(ACEF)— THE DEPARTMENT OF AGRICULTURE (DA), IN
CONSULTATION WITH THE CONGRESSIONAL OVERSIGHT
COMMITTEE ON AGRICULTURE AND FISHERIES MODERNIZATION
(COCAFM), SHALL ALLOCATE ANNUALLY FROM YEAR 2013 TO 2015
OR UNTIL ALL ACEF FUNDS ARE EXHAUSTED, AND SHALL
CONTINUE WITH ANY EXTENSION THEREOF, A PORTION OF ACEF
TO FUND THE INFRASTRUCTURE SUPPORT PROJECTS OF THE
SUGARCANE INDUSTRY SUCH AS FARM-TO-MILL ROADS AND
IRRIGATION, PRODUCT DEVELOPMENT, AND RESEARCH &
DEVELOPMENT PROJECTS TO INCLUDE ALL ITS SUBSECTORS,


Very truly yours,

ce:

NAMELY, FARM SECTOR, SUGAR SECTOR, BIOETHANOL SECTOR,
POWER GENERATION SECTOR AND FARM/MILL SUPPORT
INDUSTRIES SECTOR AS RECIPIENTS OR BENEFICIARIES OF
FUNDING SUPPORT.

B GENERAL APPROPRIATIONS FOR THE AGRICULTURE
SECTOR-— THE DA SHALL PROVIDE ALLOCATION TO THE
SUGARCANE INDUSTRY AND ALL ITS SUBSECTORS FROM ITS
ANNUAL GAA OR AFMA FUNDS AND PRIORITIZE THE PROGRAMS /
PROJECTS OF THE SUGARCANE INDUSTRY IN ITS ANNUAL
EXPENDITURE PRIORITIZATION PLAN FOR TEN SUCCESSIVE
FISCAL YEARS (FY 2014 - FY 2023).

ALL SUGAR-PRODUCING LOCAL GOVERNMENT UNITS (LGUS)
SHALL ALLOCATE A PORTION OF THEIR INCREMENTAL R-VAT-IRA FOR
THE INFRASTRUCTURE AND R, D & E PROJECTS OF THE SUGARCANE
INDUSTRY TO INCLUDE ALL ITS SUBSECTORS MENTIONED IN
SECTION 4.3.4.

On Section 5, subsection (d) page 6, lines 4 - 5, delete the sentence * The
members of the Board shall hold office for one year, or until their successors
have been appointed and qualified.*, and in lieu thereof, substitute the
following:

(@) EXCEPT FOR EX-OFFICIO MEMBERS OF THE BOARD, THE
APPOINTMENT AND QUALIFICATION OF THE OTHER MEMBERS OF THE
BOARD SHALL BE IN ACCORBANCE WITH R.A. NO. 10149 OR THE
*GOCC GOVERNANCE ACT-OF 2011”

Hon. Alfredo B. Benitez

Hon. Jesus Cnspin Remulia
Hon. Tomas Apacible

Hon. Robert Raymund Estrela
Hon. Cresente Paez

Hon. Jun Omar Ebdane

Hon. Alejandro Mirasot

Hon. Daryl Grace Abayon


Republic of the Philippines.
uuse of Representatives
Quezon City, Metea Alaris

14 August 2012

HON. MARK LLANDRO L. MENDOZA
Chairman

Committee on Agriculture and Food
House of Representatives

Dear Chairman Mendoza:

The Committee on Ways and Means in its meeting today, August 14, 2012, has
approved with amendment the tax provision on the Unnumbered Substitute Bill to
House Bill 6113, entitled, “AN ACT STRENGTHENING THE DEVELOPMENT
OF THE SUGAR CANE INDUSTRY, ESTABLISHING FOR THE PURPOSE
THE SUGAR ‘CANE INDUSTRY DEVELOPMENT FUND AND AMENDING
SECTION 8 OF PRESIDENTIAL DECREE NO. 1890, PROVIDING FUNDS
THEREFOR AND FOR OTHER PURPOSES”, to wit:

SEC. 3 — Development of the Sugar Cane Industry - x x x
A. industry-wide development
xxx

2. The establishment of Special Economic Zones for
Sugarcane Industry pursuant to R.A. No. 7916 (Special
Economic Zone Act of 1995), and/or the designation and
establishment of nuclear farms/Agro-Industrial Districts
for Sugarcane Industry to be entitled to the existing fiscal
incentives under Book Vi of Executive Order No. 226
otherwise known as the Omnibus Investments Code of
1987 as well as Sections 4,5,6 and 7 of R.A. 10000 (The
Agri-Agra Reform Credit Act of 2009), promoting, among
others, block/corporate farming to achieve economies of
scale.

Xxx

COMMITTEE ON WAYS & MEANS
‘Noth Basement
Batasan Complex, Quezon City
Tel. Nos. 931-4955 - 931-5001 loc. 7643/7633
Telefax 931-4955,


B.

Regulation of sugar industry

XXX

4

Thank you.

Very truly yours,

The export of refined sugar to the world market shall be
subjected to VAT zero percent rate from the time it is
withdrawn or released from the sugar mill/refinery
including refined sugar withdrawn for constructive export
to [CBW warehouse] CUSTOMS BONDED
WAREHOUSE (CBW) of food processors that are duly
licensed and registered with SRA

HON. SIDROW. UNGAB

Chairman


PRESIDENTIAL DECREE NO. 1890
PRESIDENTIAL DECREE NO. 1890 - CREATING THE PHILIPPINE SUGAR
CORPORATION

among the export products of the Philippines, sugar has proven 1o be one of the biggest and
most reliable sources of foreign exchange earnings, accounting for an industry average of US$450 million
annually for the last ten year

WHEREAS, many of the obligations of the sugar mills, refineries, and other sugar facilities acquired afi
the war at heavy financing cost to rehabilitate the damaged sugar industry remain unpaid and in arrears,
creating an onerous burden not only to their owners but to the local financing institutions

WHEREAS, in view of their vital role in our economy, it is hereby declared as a governmental policy 10
continue assisting the sugar industry through a government corporation especially charged and empowered
to design and implement a program for sugar mills, refineries and other sugar facilities.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers
vested in me by the Constitution, hereby order and decree:

Section 1. Philippine Sugar Corporation. — There is hereby created a body corporate to be known as the
Philippine Sugar Corporation.

Section 2. Primary Purposes. — The primary purposes of the Corporation shall be as follows

a) To provide financing in the acquisition, rehabilitation and/or expansion of sugar mills, refineries, and
ither related fucilities used in the manufacture, packing, storage, distribution, and shipment of sugar and its
»y-products and derivatives;

b) To see to the viability and stability in the operation of the aforesaid entities; and

3) To provide for the eventual redemption and/or reacquisition of the aforesaid entities by the private
ector.

ection 3. Functions. — The Corporation shall have the following functions:

1) To render assistance to sugar mills, refineries, and other related facilities either in the form of loans,
uarantees, investment in equity, outright purchase, lease, management, including other suitable credit
scommodations or arrangements;

1o issue bonds and debentures trom time to
-cordance with its corporate purposes und

}) To borrow and lend money for itself or for sugar account
ne as may be necessary and/or (0 guarantee obligations in a
netions;

) To assist in the repayment and/or restructuring of the accounts of sugar mills, refineries, and other
Jated fucilities used in the manufacture, packing, storage, distribution, and shipment of sugar and its by-
oducts and derivatives;


(d) To provide assistance in the preparation, financing and execution of sugar development or expansion
programs including the formulation of specific project proposals;

(e) To acquire during the duration of the indebtedness of each mill through importation and/or local
purchase of such equipment, machinery. spare parts as may be necessary for the development, expansion,
and/or rehabilitation of such sugar mills, refineries, transport systems, storage facilities and other activities
in the manufacture, packing, distribution and shipment of sugar and hauling or transportation of sugar cane
in which Philippine Sugar Corporation may have an interest, including agricultural machinery and road
construction and maintenance equipment to be used in the Mill District concerned;

() To acquire, operate, lease, or manage sugar mills, refineries, and other related facilities used in the
manufacture, packing, storage, distribution, and shipment of sugar and its by-products and derivatives,

Section 4. Corporate Powers. — The Corporation is hereby authorized to enter into contracts or own real
and personal property, and to pledge, encumber, transfer or otherwise dispose of the same; to borrow and
lend money and/or guarantee obligations in accordance with its corporate purposes and functions; (0 sue
and be sued; and otherwise to do and perform any and all things that may be necessary or proper to carry
ut its purposes and functions as specified in this Decree, or as essential to the proper conduct of its
operations.

ied elsewhere in

Section 5. Borrowing and other Miscellaneous Powers. — In addition to the powers spec
this Decree, the Corporation shall have the powe

Joan as debtor or guarantor of loans of sugar mills refineries and other
related facilities and subsidiaries of the Corporation, float bonds and debentures, and avail of other credit
‘accommodations and facilities; and in the case of foreign loans, to negotiate for itself or as Guarantor, in
accordance with Central Bank rules and regulations and upon the recommendation of the Minister of
Finance and finally subject to the approval of the President of the Philippines;

(a) To borrow funds locally throug

(b) To buy and sell securities that the Corporation has issued or guaranteed, or those issued by entiti
which the Corporation may have an interest;

(c) To underwrite or participate in the underwriting of securities issued by any domestic entity ot
enterprises for purposes consistent with the purposes of the Corporation;

(d) To invest funds not needed in its operations;

(e) To exercise such other powers and establish such rules and regulations as may be necessary and
appropriate in furtherance of its purposes and functions;

(1) To have subsidiaries either by investment in existing companies or by organizing new companies.

— The operations of the Corporation shall be conducted in accordance

Section 6. Operating Guideline:
with the following guidelines:

{a) The Corporation may borrow funds for re-lending, subject to a service charge, to sugar mills, relineries,
tc, or as an investment in equity.

(b) The Corporation may float bonds from time to time up to Six Billion Pesos (P6 Billion) under such


erms and conditions as may be approved under existing procedures.

¢) The Corporation may assist the sugar mills, refineries, and sugar facilities in obtaining loans from local
and foreign sources at advantageous terms, subject to the guarantee of the Corporation, if necessary.

d) Where the control of the sugar mills, refineries, or sugar facilities is wansferred to the Corporation, the
management or supervision may be undertaken through an affiliate or subsidiary of the Corporation
orgapized as a private corporation under the Corporation Law.

‘e) The Corporation shall at all times be guided by sound business procedures and principles in its
perations.

Section 7. Capital Stock. — The authorized capital stock of the Corporation shall be Five Billion Pesos
P5,000,000,000.00) of which P2 Billion shall be initially subscribed by the Philippine Sugar Commission
65%) and the Philippine National Bank (35%), with an initial paid-in capital of One Hundred Twenty Five
Million Pesos (P125 Million)

Section 8, Board of Directors, Composition. — The powers and functions of the Corporation shall be
exercised by a Board of Directors, hereinafter referred to as the "Board", which shall be composed of
Eleven (11) members, as follows:

eentfnn
(a) TR@hairman of the Philippine Sugar Commission who shall be the Chairman of the Board.

ist the

(b) The President of the Corporation, who shall be the Vice-Chairman of the Board, shall as
Chairman and act in his stead in case of absence or incapacity.

All the eleven members of the Board shall be appointed by the President of the Philippines, seven to be
nominated by the Philippine Sugar Commission and four by the Philippine National Bank.

all hold office for one year, or until their successors have been appointed

(d) The members of the Board s!
and qualitied

(c) Vacancies in the Board may be temporarily filled by the action of a majority of the other members of
the Board, if there is a quorum.

Section 9. Powers of the Board. — The Board shall have the authority:
(a) To formulate policies to carry out effectively the provisions of this Decree.;

(b) To prepare and issue rules and regulations necessary for the effective discharge of the responsibilities
and exercise of the powers assigned to the Corporation under this Decree;

(c) To direct the management. operations and administration of the Corporation;

(d) On the recommendation of the President of the Corporation, appoint, fix the remunerations and other
emoluments, and remove the personnel of the Corporation;

(c) To authorize such expenditures by the Corporation as are in the interest of the effective administration
and operations of the Corporation.


Meetings. — The Board shall convene as frequently as is necessary, but meet at least once a
ont

Stockholders meetings shall be held annually or as may be fixed by the Board of Directors.

Section 11. President. — The Chief Executive Officer of the Corporation shall be the President who shall
be appointed by the Board. He shall be assisted by such executive officials as may be necessary for the
efficient operations of the Corporation.

Section 12. Powers and Duties of the President. — The powers and duties of the President of the
Corporation shall be:

(a) To prepare the agenda for meetings of the Board and to submit for the consideration of the Board the
policies and measures which he believes to be necessary to carry out the purposes and provisions of this
Decree;

(b) To execute und administer the policies and measures approved by the Board;

(6) To direct and supervise the operations and internal administration of the Board. He may delegate
certain of his administrative responsibilities to other officers of the Corporation, subject to the rules and
regulations of the Board; and

(d) To exercise such other powers as may be vested in him by the Board,

Section 13, Remuneration of the President. — The salary of the President of the Corporation shalll be fixed
by the Board, The Board may authorize payment of allowances and other emoluments to the President of
the Corporation.

Section 14. Other Officials and Employees of the Corporation. — All officials and employees of the
corporation shall be appointed and removed by the Board, on recommendation of the President of the
Corporation.

Section 15, Auditor, — The Chairman of the Commission on Audit shall act as the ex-officio Auditor of
the corporation and, as such, he is empowered and authorized to appoint a representative who shall be the
‘Auditor of the Corporation and, in accordance with law, fix his salary, and to appoint und fix the salaries
and number of the personnel to assist said representative in his work, but in all cases subject to the

approval of the Board. The salaries and all other expenses of maintaining the Auditor's office shall be paid

by the Corporation.

ues and the
vice

The funds of the Corporation subject to audit shall be limited to the proceeds of the bond
portion of the accountee-Central/s remittances earmarked for the bond redemption, exclusive of the s
charve and other income of the Corporation, to the end that such funds are applied to the specific purposes
herein prescribed. The accountee-Central/s shall continue to function as purely private business
corporations and shall not be subject to government audit.

Section 16. Effectivity Clause. —This Decree shall take effect immediately.

Done in the City of Manila, this 14th day of November, in the year of our Lord, nineteen hundred and
eighty-three.


ee

MINUTES OF THE MEETING OF THE COMMITTEE ON AGRICULTURE AND FOOD, HELD ON 06
JUNE 2012, 9:00 AM, AT CONFERENCE ROOMS 7 & 8, RAMON V. MITRA BIDG., HOUSE OF
REPRESENTATIVES, QUEZON CITY.

AGENDA:

HB 3259 - AN ACT ENHANCING THE POWERS OF THE SUGAR REGULATORY ADMINISTRATION (SRA)
TO BAN THE SMUGGLING OF SUGAR AND ITS DERIVATIVES, AMENDING EXECUTIVE ORDER NO
18, PROVIDING FUNDS THEREFOR AND ESTABLISHING A POLICY FOR ITS IMPLEMENTATION AND FOR
OTHER PURPOSES, Introduced by: Rep. Jeffrey Padilla Ferrer

HB 3265 - AN ACT STRENGTHENING THE SUGAR REGULATORY ADMINISTRATION AND FOR OTHER
PURPOSES, Introduced by: Rep. Joseph Victor G. Bjercito

HB 6113 - AN ACT STRENGTHENING THE DEVELOPMENT OF THE SUGAR CANE INDUSTRY
ESTABLISHING THE SUGAR CANE INDUSTRY DEVELOPMENT FUND, AMENDING FOR THE PURPOSE
PD NO, 1890, Introduced by: Rep. Alfredo ‘Albee’ B. Benitez

I, CALL TO ORDER/ROLL CALL,

‘The meeting was called to order at 9:38 AM with Hon, Mark Llandro Mendoza presid’ g. On a motion
made and duly seconded, the calling of the roll was dispensed with.

Il. APPROVAL OF THE MINUTES OF THE PREVIOUS MEETING

On a motion made and duly seconde:
same was approved.

, the reading of the previous minutes was dispensed with and the

Il, DELIBERATION ON HB Nos. 3259 & 3265 - STRENGTHENING THE SUGAR REGULATORY
ADMINISTRATION

‘The Chair said that there is a need to look into the charter of the Sugar Regulatory Administration (SRA)
to further enhance and strengthen its powers to protect the sugar industry

Administrator Regina Martin of the SRA said that anti-smuggling can now be addressed by SRA since
the Tariff and Customs Code has been placed under the Bureau of Customs.

Rep. Alfredo Benitez stated that there is a need to curb smuggling in the sugar industry, and that
approval of the bills will further strengthen the efforts of the government to address stt2ggl'ng.

On motion duly made and seconded, HB Nos. 3259 and 3265 were approved. The Chair directed the
secretariat to prepare a substitute bill in consultation with the stakeholders.

IV. DELIBERATION ON HB No. 6113 ~ STRENGTHENING THE SUGAR CANE INDUSTRY BY
ESTABLISHING FOR THE PURPOSE THE SUGAR CANE INDUSTRY DEVELOPMENT FUND AND
AMENDING SECTION 8 OF PD 1890

Rep. Benitez informed the Committee that the lifting of tariff on sugar by 2015 brings forth varied
reaction and uncertainty from sugar planters, millers and consumers, hence, it is incumbent upon
policymakers to institute measures both by legislation and executive implementation of specific
programs and projects that will cushion or counter the possible effects of the 2015 no-tariff provision of
the sugarcane industry

He said that the bill aims to revitalize and strengthen the Sugar Cane Industry through a diversification,
development, and financing program promoting the interests of sugarcane farmers/planters, mill
workers and consumers as well as contributing to the food security objectives of the national
government, He added that the bill 1s a product of deliberations with the stakeholders including various


sugar federations and the SRA. Furthermore, he emphasized that SRA should give specific details on
the intent and objective of the sugarcane bill in order to come u> with an IRR that depicts the real
intent of the bill.

Administrator Martin explained that SRA is preparing for the 2015 eventuality and has prepared a
roadmap for the sugarcane industry which can be a venue for investment, as well as creating a

+ sugarcane agro-industrial economic zone. She said that SRA is working with the suger stakeholders to
come up with a good package and has joined with the Department of Agriculture ar. Lepartment of
Agrarian Reform in terms of funding.

Mr. Roberto Amores, President of the Philippine Food Processors and Exporters Organization, Inc
(PHILFOODEX), informed the committee on the situation of the sugar industry in the country, likewise,
he illustrated why the Philippines is lagging behind other ASEAN countries in terms of agro-food
exports. He said that our low agro-food export sales are caused by the following factors: (1) inadequate
supply of raw materials due to low productivity; (2) high cost of power; (3) poor infrastructure and
logistics; and (4) high cost of sugar and other materials. He stressed that the said factors should be
considered to strengthen and develop the sugarcane industry.

He suggested that the Committee should make an expansive evaluation to climinate the economic
causes of smuggling by developing new methods of combating it. Moreover, he said that in order to
achieve this goal, it is necessary to simplify regulations, to improve the quality of public services, to
abolish or reduce the number of business permits and to adopt consistent, clear-cut and transparent
legal regulations.

Further, he enumerated their comments and recommendations, to wit; (a) on HB Nos. 3259 and 3265,
he asked where will the budget of the proposed Anti-smuggling Task Force com: from and also
Suggested that the fine under Section 7 of the Penal Provision be increased from One Wy lion Pesos (Php
1,000,000.00) to Five Million Pesos (Php 5,000,000.00) or 100% of the value of the confiscated smuggled
goods whichever is higher (b) on HB No. 6113 he recommended that there should be at least (2)
members representing the private agro-food processors/manufacturers and consumers coming from
representatives of organized consumer/ business associations.

‘The Chair clarified that the Committee is coordinating with the Bureau of Customs and the Department
of Agriculture with regard to smuggling of agri-products,

Mr. Renato Salvatierra, President of the Philippine Sugar Corporation stated that he agrees with the
recommendation of Cong. Benitez in strengthening PhilSuCor, He stressed that Philsucor was created
mainly to help the sugar industry. But due to limited funds, it took them some time to accelerate their
assistance that is now being enjoyed by the sugar planters. He likewise emphasized that HB No. 6113
will practically resolve the problems in the sugar industry.

Atty. Marcelino Aganon, President of the Confederation of Sugar Producers Association, Inc. informed
the committee that they will submit their consolidated comments and recommendations after the
meeting of the Sugar Alliance composed of millers and association of sugar planters.

Atty. Augusto Araneta, President of the Barotac-Dumangas-Anilao Planters Associatio.t suggested that
the 15% fees to be collected for the sugar fund under Sec. 4(3b) be increased to 30%. He also
mentioned that they have problems on sugar roads especially in the sugar producing areas like
Batangas and Negros.

Mr. Cocoy Barrera, Representative of the Philippine Sugar Millers Association manifested their
appreciation to HB 6113 specifically on the strengthening of PhilSuCor by providing funds not only for
the development of sugar but of the sugarcane industry.

Dir. Victorio Mario Dimagiba of the Bureau of Trade Regulation anc Consumer Protection, Department
of Trade and Industry, proposed that there should be a provision that would empower SRA to exercise
its authority under the Price Act or Republic Act No. 7581. He said that there is no clarity on the
relationship of DA and SRA with regard to the implementation of the Suggested Retail Price (SRP) on


sugar under the Price Act. He added that they have encountered problems on who should monitor the
price of sugar at the retail level and who should issue show-cost orders for purposes of filing
administrative cases for violation of the Price Act. In addition, he also suggested to include traders and
consumers to be part of SRA because the role of the traders is very important in studying the flow of
prices in sugar.

At this point, Rep. Robert Raymund Estrella manifested that all iaembers present be included as co-
authors of the said bill and moved for its approval

On a motion duly made and seconded, the bill was approved, with all members present as co-authors.
Thereatter, the Chair directed the Secretariat to prepare a substitute bill in close coor'n¢ don with the
stakeholders and likewise reminded the stakeholders to submit their position papets as soon as
possible,

IV. ADJOURNMENT

‘There being no other matters to discuss, the meeting was adjourned at 10:23 am.

Prepared:

Noted by

Hon. MARK LLANDRO MENDOZA
Chairman