Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. ___ 
Introduced by Representative Michael L. Romero 
    EXPLANATORY NOTE
In the Republic of the Philippines, the Department of National Defense (DND) is 
fully committed in continuing to push for the military's modernization and 
measures to improve its personnel management. The State shall foster the 
modernization of the AFP (Armed Forces of the Philippines), enact laws to 
improve the personnel management of the AFP and focus on the other priorities. 
Inspired by the overwhelming support from the President, the DND shall exert 
all efforts in fulfilling its mandate to secure the country and contribute to 
national development. 
The State shall further the improvement of the welfare and capabilities of the 
AFP, increasing their salaries. The President of the Republic has always 
prioritized strengthening the capability of the country's military and police 
forces. 
This House Bill seeks to create a comprehensive AFP Modernization program, 
proving appropriations therefor. 
Thus, the early passage of this bill is earnestly requested. 
MICHAEL L. ROMERO 
August 7, 2021
2:05 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. ___ 
Introduced by Representative Michael L. Romero 
    AN ACT 
ESTABLISHING A COMPREHENSIVE AFP MODERNIZATION 
PROGRAM, PROVIDING APPROPRIATIONS THEREFOR, AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 
1. 
DECLARATION OF POLICY - It shall hereby be a 
declared policy of the State to modernize the Armed Forces of the Philippines 
(AFP) to a degree where it can effectively and fully perform its constitutional 
mandate to uphold the sovereignty and preserve the patrimony of the Republic 
of the Philippines. 
SECTION 
2. 
MASTER PLAN - The principal aims of the 
modernization program under this Act shall be:  
•
The development of a self-reliant and credible strategic
armed force along the concept of a "Citizens Armed Force";
the reconfiguration of the Armed Forces of the Philippines
structure; and the professionalization of the AFP;
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• The undertaking of reforms in the recruitment, training, 
employment and management of AFP personnel;   
• The development, validation or modification of AFP 
doctrines;   
• The acquisition and upgrading of appropriate technology 
and equipment; and   
• The relocation, improvement, and construction of bases and 
other facilities. 
SECTION 
3. 
PURPOSES 
OF 
THE 
AFP 
MODERNIZATION 
PROGRAM. — The AFP modernization program shall be implemented in 
accordance with the following purposes:   
• To develop its capability to uphold the sovereignty and 
territorial integrity of the Republic and to secure the 
national territory from all forms of intrusion and 
encroachment;   
  
• To develop its capability to assist civilian agencies in the 
preservation of the national patrimony, including the 
country's living and nonliving marine, submarine, mineral, 
forest and other natural resources located within its 
territory and its exclusive economic zone (EEZ);   
• To enhance its capability to fulfill its mandate to protect the 
Filipino people not only from armed threats but from the ill 
effects of life-threatening and destructive consequences of 
natural and man-made disasters and calamities, including 
typhoons, earthquakes, volcanic eruptions, major accidents 
in far-flung or inaccessible terrain or at sea and from all 
forms of ecological damage;   
• To improve its capability to assist other agencies in the 
enforcement of domestic and foreign policies as well as 
international covenants against piracy, white slavery, 
smuggling, drug trafficking, hijacking of aircraft and 
seacraft and the transport of toxic and other ecologically-
harmful substances taking place in or through Philippine 
territory;   


• To enhance its capability to assist the Philippine National 
Police in law enforcement and internal security operations;   
• To 
enhance 
its 
capability 
to 
fulfill 
the 
country's 
international commitments; and   
• To develop its capability to support national development.  
 
SECTION 
4. 
PHASE OF IMPLEMENTATION. — The modernization 
program under this Act shall be implemented over a period of Ten (10) years:  
 
Provided, however, That the payments for amortization of outstanding 
multi-year contract obligations incurred under this Act may extend beyond this 
period.   
 
SECTION 
5. 
APPROPRIATIONS. — The annual appropriations for 
the AFP modernization program shall include the amounts necessary to support 
the funding requirements for all modernization projects approved by both houses 
of Congress.   
  
The funds to be appropriated by Congress under this Act shall be treated 
as a distinct and separate budget item from the regular appropriation for the 
Department of National Defense (DND) and the AFP and shall be administered 
by the Secretary of National Defense. 
   
The proposed program shall be based on a maximum amount, for the first five 
(5) years of One Hundred billion pesos (Php 100,000,000,000.00):  
 
Provided, that hereafter, this amount may be increased commensurate to 
the increase in the Gross National Product (GNP).   
 
SECTION 
6. 
AFP MODERNIZATION TRUST FUND. — There shall 
hereby be created a trust fund, to be known as the AFP Modernization Trust 


Fund. Said trust fund, which shall be used exclusively for the AFP 
modernization program, but not to include salaries and allowances, shall be 
funded out of the following:   
• Appropriations for the AFP modernization program;   
• The proceeds from the sale, lease or joint development of 
military reservations, as may be authorized by Congress, 
including such immovable and other facilities as may be 
found therein, not covered by the Bases Conversion 
Development Authority, as provided for in Republic Act No. 
7227;   
• Shares of the AFP from the proceeds of the sale of military 
camps provided for under Republic Act No. 7227;   
• Proceeds from the sale of the products of the government 
arsenal;   
• The proceeds from the disposal of excess and/or 
uneconomically repairable equipment and other movable 
assets of the AFP and the government arsenal;   
• Funds from budgetary surplus, if any, as may be 
authorized by Congress subject to the provisions existing 
rules and regulations; and   
• All interest income of the trust fund.  
 
The AFP trust fund shall be administered by the Secretary of National Defense 
in accordance with existing government auditing rules and regulations.   
 
SECTION 
7. 
GUIDANCE FOR THE PRESIDENT. — To meet the 
unforeseen national security emergencies, the president of the Republic of the 
Philippines, upon the recommendation of the Secretary of National Defense, may 
modify the program through substitution or revision of a component project 
therein:  


Provided, however, that he shall report such action to Congress within 
thirty (30) days. 
 
SECTION 
8. 
PERIODIC REPORTS. — Not later than the end of 
the second quarter of the succeeding year:   
• 
The Secretary of national Defense shall submit to the 
President and Congress an annual report on the status of 
the AFP Modernization Trust Fund;   
• 
The Chief of Staff, AFP shall submit to the President 
and Congress, through the Secretary of national Defense, 
an annual report containing the progress of the 
implementation of the modernization program under this 
Act 
to 
include 
the 
AFP 
modernization 
activities 
implemented prior to the approval of this Act.  
SECTION 
9. 
TRANSITORY 
PROVISION – 
Existing 
industries, 
businesses and offices affected by the implementation of this Act shall be given 
six (6) months transitory period from the effectivity of the IRR or such other 
period as may be determined, to comply with the requirements of this Act. 
SECTION 
10. 
IMPLEMENTING RULES AND REGULATIONS. – The 
departments and agencies charged with carrying out the provisions of this Act 
shall, within sixty (60) days after the effectivity of this Act, formulate the 
necessary rules and regulations for its effective implementation. 
SECTION 
11. 
REPEALING CLAUSE. – All laws, decrees, executive 
orders, rules and regulations, or parts thereof inconsistent with the provisions 
of this Act are hereby repealed or modified accordingly. 
SECTION 
12. 
SEPARABILITY CLAUSE. – If, for any reason, any 
section or provision of this Act is held unconstitutional or invalid, the other 
sections or provisions hereof shall not be affected thereby. 


SECTION 
13. 
EFFECTIVITY CLAUSE. – This Act shall take effect 
after fifteen (15) days from its publication in the Official Gazette or in at least two 
(2) national newspapers of general circulation whichever comes earlier. 
 
Approved,