TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
S. No. 78
25 JlJL-3 P4 "01
Ri r-.. •
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
MODERNIZING THE PHILIPPINE COAST GUARD, CREATING FOR THE 
PURPOSE THE PHILIPPINE COAST GUARD MODERNIZATION TRUST FUND 
AND APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
The Philippines is one of the world's largest archipelagos composed of 7,641 
islands with 36,289 kilometers of shoreline. We are blessed with expansive waters 
containing diverse aquatic life and marine resources that are sources of bountiful 
harvest and livelihood for coastal communities. It hosts vital seaways for trade and 
commerce, possesses rich oil and gas deposits and energy sources, and is endowed 
with pristine beaches and picturesque seascapes suitable for tourism development. 
Also, the country's exclusive economic zone (EEZ) is a maritime area larger than our 
total land area. It is therefore imperative for the government to have an effective 
Coast Guard organization that can protect and preserve the diverse resources found 
in our maritime territory and defend the same against intruders, lawless elements 
and destructive activities.
As enshrined in Republic Act No. 9993 or the "Philippine Coast Guard Law of 
2009," the PCG was established as an armed and uniformed service attached to the 
Department of Transportation (DOTr). However, in times of war, as declared by 
Congress, it shall be attached to the Department of National Defense (DND). It is


also considered as the oldest and only humanitarian armed service of the 
Philippines.
It is vested with powers aimed to perform five major functions of maritime 
safety, maritime security, maritime search and rescue, maritime law enforcement, 
and marine environmental protection. The PCG is given the colossal task of enforcing 
regulations in accordance with maritime international conventions and treaties and 
national laws for the promotion of safety of life and property at sea, and providing 
assistance in the enforcement of laws towards the prevention or suppression of 
terrorism at sea, as well as pertinent regulations on fisheries, immigration, tariff and 
customs, forestry, firearms and explosives, human trafficking, dangerous drugs and 
controlled chemicals, transnational crimes, protection of marine environment and 
resources from offshore sources of pollution, and other applicable laws within the 
maritime jurisdiction of the country.
In light of the ongoing disputes and documented cases of harassment in the 
West Philippine Sea, PCG recently admitted that its assets are not enough to patrol 
the area and to protect Filipino fishermen against foreign aggressors.
Commodore Jay Tarriela, PCG spokesperson for the WPS, said "It is about 
time that we need to acquire more offshore patrol vessels that could constantly 
patrol the Philippine exclusive economic zone (EEZ)." He also relayed that the PCG 
only has three offshore patrol vessels — one was bought from France and two from 
Japan - and that these are certainly not enough to secure the vast area.1
This bill proposes a modernization program of the Philippine Coast Guard that 
will allow it to significantly upgrade its assets, further expand its capabilities, and 
ensure the fulfilment of its mandate as provided under our laws.
1 "PCG to lawmakers: It's time to modernize in wake of China harassment in WPS." Accessed on 04 March 2023 
through https://elobalnation.inauirer.net/211162/pce-to-lawmakers-its-time-to-modernize-in-wake-of-china-
harassment-in-wps


In view of the foregoing considerations, the immediate passage of this 
legislation is fervently sought.
INGGOY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
S. No. 78
25 JUL -3 P4 :01
Introduced by Senator Jinggoy Ejercito Estrada
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 House of Representatives of the Philippines in 
Congress assembled:
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Section 1. Short Title. - This Act shall be known as the "Philippine Coast
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Guard Modernization Act".
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Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to
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develop the Philippine Coast 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
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the 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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Sec. 3. Philippine Coast Guard Modernization Program. - Within a period not
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exceeding fifteen (15) years after the effectivity of this Act, the PCG shall implement
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the Philippine Coast Guard Modernization Program, hereinafter referred to as the
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Program. The PCG shall continue to perform its powers and discharge its functions


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as provided in Section 3 of Republic Act No. 9993, also known as the "Philippine
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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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Sec. 4. Objectives. - The PCG Modernization Program shall be implemented in
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accordance with the following objectives:
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a) Minimize, if not totally eliminate accidents at sea;
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b) Reduce the search efforts and hasten response time during search and
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rescue operations;
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c) Contribute substantially to securing maritime zones and 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) Effectively contribute to the enforcement of the Philippine criminal and
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other special laws within the maritime zones and territorial waters; and
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e) Minimize, if not totally eliminate, pollution in the maritime zones or areas
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and hasten response time in cases of emergencies.
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Sec. 5. Components of the Modernization Program. - The PCG Modernization
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Program shall have the following components:
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a) Organization Development - The restructuring and streamlining of the
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PCG units and offices to avoid the overlapping of functions, simplify
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procedures 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
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of 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
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the periodic review and validation of doctrines through field application,
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testing and exercises; and the dissemination of approved doctrines at all
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levels of command.
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d) Infrastructure Development - The basic and support system required to
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ensure that services are rendered efficiently includes the acquisition and


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upgrade of basic and support facilities for administrative and operational 
services, and the acquisition and upgrade of basic facilities such as aircraft 
command, control, and communication platform which are range and 
endurance-capable to continuously monitor edge of the exclusive 
economic zone (EEZ) with night navigation capability, including remote- 
controlled drones.
e) Equipment and Facilities Acquisition and Modernization - The acquisition 
and upgrade of contemporary, modern, and state-of-the-art equipment 
and system to enhance the capabilities of the PCG in the performance of 
its mandate which includes the following:
1) Upgrade the vessel to a mission-specific level with a high degree of 
flexibility to perform other functional area operations. The vessel must 
be well-maintained for full operational status at least three hundred 
(300) days a year and must be interfaced with the latest cutting-edge 
technology for ease of operation;
2) Remotely operated submersibles for deep-sea search, retrieval and 
monitoring operations;
3) Weapons that are marine environment resistant and designed primarily 
to disable hostile personnel and equipment;
4) K-9 units which are capable of detecting bombs, drugs, toxic 
substances, and assisting in search and rescue (SAR) operations, 
among others;
5) Uninterruptible PCG internal communications seamlessly interoperable 
with other agencies as well as communications with commercial vessels 
operating within the Phiiippine maritime zones and territorial waters;
6) Training equipment capabie of simuiating foreseeabie emergencies or 
hostile situations;
7) Aids to navigation that are consistent with International Association of 
Lighthouse Authorities standards;
8) Accurate and real-time monitoring and detection systems; and
9) Laboratories with technologicaliy current equipment.


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Sec. 6. Submission of the Modernization Program. - Within ninety (90) days
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from the effectivity of this Act, the PCG Commandant shall, in coordination with the
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Secretaries of the DOTr and the 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
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through 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 phase of the Program;
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b) The modernization project under each phase including the major weapon
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and non-weapon equipment and technology acquisition, infrastructure
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construction or improvements to be made, and the particular objectives
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and components under Section 4 and 5 respectively, of this Act to which
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such intended acquisition, constructions or improvements belong; 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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Sec. 7. Muiti-year Contracts. - The Secretary of the DOTr may, pursuant to
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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
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most favorable to the government.
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The Congress shall, upon certification by the President, make the
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corresponding appropriation for the ensuing fiscal year in payment for multi-year
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contracts: Provided, That Congress shall appropriate only such funds as may be
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necessary to pay any unpaid amount when the appropriated funds mentioned in
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Section 13 of this Act are not sufficient or available to meet the payment, in full or in
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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 agreement or
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arrangement to enable Congress to appropriate funds.
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Sec. 8. Self Reliance Program. - In implementing the Program, the PCG shall,
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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 on, if not the entire, production process of the terms involved 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,
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incorporate in each contract or agreement special foreign exchange reduction
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schemes such as countertrade, in-country manufacture, co-production, or other
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innovative arrangements 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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Sec. 9. Philippine Coast Guard Modernization Trust Fund. - There is hereby
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created a trust fund, to be known as the Philippine Coast Guard Modernization Trust
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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 ailowances. The trust fund shall be
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funded out of the following:
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a) Appropriations for the Philippine Coast Guard Modernization Program;
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b) The proceeds from the sale, ease, or joint development of coast guard
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properties and lighthouse reservations, as may be authorized by 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 and Development Authority, as provided
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for in Republic Act No. 7227, as amended, otherwise known as the Bases
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Conversion and Development Act of 1992;


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c) Shares of the PCG from the proceeds of the sale of the coast guard
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properties provided for under the Bases Conversion 
and Deveiopment Act
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of 1992;
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d) The proceeds from the disposai of excess or uneconomicaily repairabie
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equipment and other moveabie properties in the PCG arsenai;
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e) Funds from budgetary surpius, 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 penaities coiiected 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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Sec. 10. Equipment Acquisition Per Function Area. - In order to further
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specialize PCG capabilities, equipment acquisition shail be initiated within the
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respective functionai areas as mentioned in Section 2 of this Act but integrated into
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the Program to aiiow inter-operabiiity and ensure a greater degree of reiiabiiity.
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Sec. 11. Contract Negotiation. - The procurement process shaii be governed
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in accordance with Repubiic Act No. 9184, otherwise known as the "Government
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Procurement Reform Act", and its revised impiementing rules and regulations. The
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procurement process shaii be exercised by the PCG Generai Headquarters unless
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delegated to the next lower-level management by the PCG Commandant.
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Sec. 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 annuai
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report on the status of the Phiiippine 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 shaii also submit to the President and Congress,
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through the Congressionai Oversight Committee and the Secretary of the DOTr, an
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annual status report containing the process of the implementation of the
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modernization program under this Act, including the PCG modernization activities
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impiemented prior to the approvai of this Act not iater than the end of the first
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quarter of the succeeding year.
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Sec. 13. Appropriations. - The annuai appropriation for the PCG
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modernization program shaii include the amounts necessary to support the funding


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requirement for all modernization projects approved by Congress pursuant to this
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Act.
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The funds to be appropriated by Congress shall be treated as 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
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a ceiling of Fifty billion pesos (P50,000,000,000.00) for the first five (5) years.
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Thereafter, this amount may be increased commensurate to the increase in the
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gross national product (GNP).
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Sec. 14. Joint Congressional Oversight Committee. - A joint Congressional
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Oversight Committee is hereby created to monitor and oversee the implementation
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of 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
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Senate President and the Speaker of the House of Representatives, respectively. It
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shall be co-chaired by the Chairperson of the Committee on Transportation of both
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Houses. The minority parties of both houses shall have at least two (2)
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representatives in the Joint Congressional Oversight Committee.
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Sec. 15. Sunset Review. - Five (5) years after the effectivity of this Act, the
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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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Sec. 16. Separability Clause. - If any provision of this Act is declared invalid
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or unconstitutional, the remaining provision not affected thereby shall continue to be
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in full force and effect.
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Sec. 17. Repealing Clause. - All laws, decrees, orders or regulations or part
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thereof inconsistent with this Act are hereby repealed or modified accordingly.
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Sec. 18 . Effectivity. - This Act shall take effect fifteen (15) days following the
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completion of its publication in the Official Gazette or in a national newspaper of
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general circulation.
Approved,