FlFfEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES) 
First Regular Session 
) 
SENATE 
Senate Bill No. 2030 
Introduced by SENATOR EDGARDO J. ANGARA 
EXPLANATORY NOTE 
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There is a need to expedite the rehabilitation and development of the Mindanao 
Region (the "Region") given the lack of development in certain areas on the Region as 
wen as the debilitating effects of the recent conflicts. 
Unfortunately, the public sector cannot provide enough funds for the total 
development and rehabilitation of Mindanao. The recent hostilities have also scared away 
numerous private investors fearful of the peace and order in the Region. There is, 
therefore, a cmcial need to attract private investors to invest in Mindanao. 
The approach to developing Mindanao should therefore be two pronged- by 
providing the Executive enough powers to expedite the development and rehabilitation of 
the Region, and by attracting private investors through a series of incentives over and 
above the existing incentives provided to other areas of the country and under existing 
laws. 
The proposed Mindanao Development Incentives Act will provide the following 
incentives and powers: 
1. Fiscal Incentives 
1. Duty-free importation of raw materials and capital equipment, as well as 
exemption from value added tax; 
2. 5% tax in lieu of all taxes except real property tax; 
3. Tax credit of 200% of value of labor training expenses, and 300% in the 
case of labor training expenses for Muslims and other ethnic minorities; 
4. Tax credit of200% of research and development expense; 
5. Allowance to carryover net operating loss for ten (10) years; 
6. Reimbursement of cost for feasibility studies in areas deemed in critical 
need of investments; 
7. Interest assistance by line departments for all loans availed of by 
registered investing enterprise. 
2. Non-Fiscal Incentives 
1. Nationality requirements shall not be required except those provided under 
the Constitution. 
2. Labor disputes must !:Ie referred to a labor center for amicable settlement; 
3. Infrastructure development and construction may be on build-operate-
transfer basis, or other contractual arrangement, with the registered 
investor allowed to charge tolls and other fees; 
4. Government financial assistance throngh Land Bank and DBP; 


5. Incentives to expatriates such as multiple entry visas, final tax of 15% of 
gross income, tax and duty free importation of personal and household 
effects, travel tax exemptions; 
6. Exemption of private agricultural lands used by registered enterprises 
from CARL coverage under certain conditions; 
7. Basic rights and guarantees on repatriation of investments, remittance of 
earnings and freedom from expropriation. 
3. Powers of the President 
1. Authority to set in place such policies which will ensure that Mindanao 
becomes competitive and investor-friendly; 
2. Authority to realign funds from dormant or non-moving infrastructure 
projects to projects of immediate necessity; 
3. Authority to revoke or terminate existing contracts whenever it appears 
that the contractor is unreasonably delayed; 
4. Authority to resort to simplified public bidding in contracts for 
infrastmcture development, constmction and repair; 
5. Authority to declare economic zones with appropriate incentives; 
6. Authority to declare specific areas in the Region as underdeveloped and 
thus entitled to additional incentives and support; 
7. Authority to declare tax holidays over and above those presently enjoyed 
by existing economic zones; 
8. Authority to contract with private firms and entities for the latter to 
construct, build or rehabilitate public rural infrastructure and to be 
reimbursed in such manner and under such terms and conditions as the 
President may determine. 
The foregoing incentives and powers are sufficient to encourage investment in 
Mindanao and ensure growth in the r1;)gion. 
For the above-mentioned reasons, approval of this bill is earnestly urged. 
f.--v/ ~ 
EDGARDO J. ANGARA 
Senator 


" , 
FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 2030 
Introduced by SENATOR EDGARDO J. ANGARA 
AN ACT 
PROVIDING FOR INVESTMENT INCENTIVES TO 
ACCELERATE DEVELOPMENT IN MINDANAO, CREATING THE 
MINDANAO INCENTIVES DEVELOPMENT AUTHORITY FOR THIS 
PURPOSE, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives in Congress 
assembled: 
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SECTION 1. Short Title. - This Act shall be known as the "Mindanao 
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Development Incentives Act." 
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SECTION 2. Declaration of Policy. - The State recognizes the need to promote 
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and accelerate the growth and development of the Mindanao Region, hereinafter referred 
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to as the Region, in order to make it, at the least, at par with the other regions of the 
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country and promote the overall growth of the Region in particular and national economy 
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in general. The State takes note of the centuries-old conflict between the government and 
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Muslim Mindanao and of the need to find a lasting solution rooted in the social, 
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economic and cultural realities. The State further recognizes the vast potential of the 
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Region, including its immense natural resources, which remain largely untapped, and the 
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need for public and private investment in infrastructure and spending to ensure the 
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development of the Region. 
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Pursuant thereto, and in order to address effectively the conflict between 
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government and Muslim Mindanao, it is the declared policy of government to actively 
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encourage, promote, induce and accelerate a sound and balanced agricultural, industrial, 
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economic and social development in the Region in order to alleviate poverty therein, 
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provide jobs to the people, especially those in the rural areas, increase their productivity 
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and their individual and family income, and thereby improve the level and quality of their 
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living condition and hence secure peace and stability in the Region through the provision 
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of economic and fiscal incentives and through measures that shall effectively attract 
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legitimate and productive local and foreign investments. The government shall 
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furthermore undertake efforts to promote the development of the Region into the hub of 
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investment, trade and commerce in the East Asian region through private capital and 
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investment which shall serve as the engines of growth and development of the Region, 
creating jobs, providing increased income and productivity, and bringing new 
technology. 
SECTION 3. Creation of the Mindanao Incentives Development Authority.-
There is hereby created a body corporate to be known as the Mindanao Incentives 
Development Authority, hereinafter referred to as MIDA. The MIDA shall have a 
Director-General with the rank of a department undersecretary who shall be appointed by 
the President. The director-general shall be at least forty (40) years of age, of proven 
probity and integrity, and have a strong knowledge or background in agriculture, 
investments, economics, business, public administration, law or their 
equivalent. 
The Director General shall be assisted by three (3) deputy directors general each 
for policy and planning, administration and operations, who shall be appointed by the 
MlDA Board, upon the recommendation of the Director General. The deputy directors 
shall be at least thirty-five (35) years old, with proven probity and integrity and with a 
degree in agriculture, economics, business, public administration, law, management or 
their equivalent. 
The Board shall be composed of the Secretary of Agriculture who shall serve as 
ex officio chairman, the Director General who shall serve as Vice Chairman, with four 
(4) members as follows: the Secretaries of the Department of Environment and Natural 
Resources, Department of Finance, Department of Trade and Industry and one (1) 
representative from the investorslbusiness sector in Mindanao. 
Members of the Board shall receive a per diem of not more than Five Thousand 
Pesos (P5,000) for every board meeting: Provided, however, that the per diem collected 
per month does not exceed the equivalent of four (4) meetings. Provided, further, that the 
amount of per diem for every board meeting may be increased by the President but such 
amount shall not be increased within two (2) years after its last increase. fBeDA law] 
SECTION 4. Functions and Powers of the Board. - The Board shall have the 
following functions and powers: 
(a) Set the general policies' on the establishment of the enterprises that will 
register with MIDA; 
(b) Review proposals for the establishment of MlDA registered enterprises, and 
to facilitate and assist in the organization of said entities; 
(c) Provide assistance to registered enterprises to ensure that sufficient agro-
industrial activities within the Region are undertaken, including agro-
industrial processing, high-end technology production of high value crops, 
high-technology aquaculture farming, 
direct agriculture and biotech 
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industries, in coordination with the Department of Agriculture. The MIDA, in 
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coordination with the Department of Agriculture and the Department of Trade 
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and Industry, shall periodically furnish a list of agro-industrial activities which 
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may be undertaken within the Region. 
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(d) Approve the annual budget of MID A and its development plans; 
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(e) Issue rules and regulations to implement the provisions of this Act insofar as 
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its powers and functions are concerned; 
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(f) Exercise its powers and functions as provided for in this Act; and 
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(g) Render annual reports to the President and the Congress. 
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SECTION S. General Powers and Functions of the MLDA. - The MIDA shall 
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have the following powers and functions: 
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(a) To administer and supervise the incentive schemes of the Region according to 
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the principles set forth in this Act; 
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(b) To register the enterprises in the Region in an efficient and expeditious 
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manner; 
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(c) To coordinate with regional development councils and other development 
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bodies in the identification and preparation of development programs and 
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projects in the Region; 
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(d) To recommend to the President and Congress such other incentives, 
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concessions or preference' necessary to fully implement the letter and spirit of 
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this Act; 
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(e) To adopt, alter and use a corporate seal; make contracts, lease, own or 
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otherwise dispose of personal or real property; sue and be sued; and otherwise 
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carry out its duties and functions as provided for in this Act; 
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(f) To consult on a regular basis with the local government units, private sector 
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and civil society on plam! and policies to be formulated and promulgated; 
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(g) To monitor and evaluate the development and requirements of entities within 
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the Region and recommend to the local government units or other appropriate 
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authorities the location, incentives, basic services, utilities and infrastructure 
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required or to be made available for said entities; and 
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(h) To accept any local or foreign investment, business or enterprise, subject only 
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to such rules and regulations to be promulgated by the MIDA in conformity 
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with the policies of the MIDA without prejudice to the nationalization 
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requirements provided for in the Constitution. 
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Within thirty (30) days from its constitution, the MIDA shall promulgate a 
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priority investment plan over the Region in order to accomplish the intent of this Act. 
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SECTION 6. Powers and Functions of the Director General. - The Director 
General shall provide overall supervision over the operations of the MIDA. He shall 
recommend to the Board the structure and the staffing pattern and personnel complement 
of the MIDA and establish regional offices, when necessary, subject to the approval of 
the MIDA Board. 
In addition, he shall have the following specific powers and responsibilities: 
(a) To safeguard all the lands, buildings, records, monies, credits and other 
properties and rights ofthe,MIDA; 
(b) To ensure that all revenues of the MIDA are collected and applied in 
accordance with its budget; 
(c) To ensure that the emp'loyees of the MIDA are properly discharging their 
respective duties; 
(d) To give such information and recommend such measures to the Board, as he 
shall deem advantageous to the Region; 
(e) To submit to the Board, the ongoing and proposed projects, work and 
financial program, annual budget or receipts, and expenditures of MID A; 
(f) To represent the MIDA in all its business matters and sign on its behalf after 
approval of the Board, all its contracts, agreements and obligations made in 
accordance with this Act; 
(g) To perform such other duties and exercise such powers as may be prescribed 
by the Board, and to implement the policies, rules and regulations set by the 
MIDA. 
SECTION 7. Autonomy of Local Government Units. Except as herein provided, 
the local government units comprising the Region shall retain their basic autonomy and 
identity. The cities shall be governe9 by their respective charters and the municipalities 
shall operate and function in accordance with the Local Government Code. 
SECTION 8. Qualifications of a Registered Enterprise. - To be entitled to 
registration under this Act, an applicant must satisfy to the Board that: 
(a) He is a citizen of the Philippines, if an individual, or in case ofa corporation, 
partnership or association, it is organized under Philippine laws and that at 
least sixty percent (60%) of the capital stock outstanding and entitled to vote 
is owned and held. by Philippine nationals as defined in Republic Act No. 
7042. If it does not possess the required degree of ownership as mentioned 
above, It will engage in an activity that is not within the activities reserved by 
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the Constitution to Philippine citizens or corporation owned and controlled by 
Philippine citizens; 
(b) It shall make an initial investment in the Region in an amount not less than the 
equivalent of Two Hundred Fifty Thousand Dollars (US$250,000), United 
States currency, unless a higher amount of investment is required under 
existing laws; 
(c) The applicant will engage in an activity which will necessitate the 
employment of at least fifty (50) local employees; 
(d) The applicant is capable of operating on a sound and efficient basis and of 
contributing to the development of the Region in particular and of the national 
economy in general; and 
(e) If the applicant is engage,d in undertakings or activities outside the Region, it 
has installed or undertakes to install an accounting system adequate to identify 
the investments, revenues, costs, and profits or losses of the project to be 
undertaken in the Region from the aggregate investment, revenues, costs, and 
profits or losses of the whole enterprise or to establish a separate corporation 
for the proj ect to be undertaken in the Region if the Board so requires. 
SECTION 9. Basic Rights and Guarantee. - All investors and registered 
enterprises are entitled to the basic rights and guarantees provided in the Constitution. 
Among the other rights recognized by the Govermnent of the Philippines are the 
following: 
(a) Repatriation of lnvestme,nts. In the case of foreign investments, the right to 
repatriate the entire proceeds of the liquidation of the investment in the 
currency in which the investment was originally made and at the exchange 
rate prevailing at the time of repatriation. 
(b) Remittance of Earnings. In the case of foreign Investments, the right to remit 
earnings from the investment in the currency in which the investment was 
originally made and at the exchange rate prevailing at the time of remittance. 
(c) Foreign Loans and Contracts. The right to remit at the exchange rate 
prevailing at the time of remittance such sums as may be necessary to meet 
the payments of interest and principal on foreign loans and foreign obligations 
arising from technological assistance contracts. 
(d) Freedom from Expropriation. Except as provided in Section 9 (e) below, 
there shall be no expropriation by the government of the property represented 
by investments or of the property of the registered enterprise. 
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(e) Requisition oj Investment. There shall be no requisition of the property 
represented by the investment or of the property of the registered enterprise, 
except in the event of war. 
SECTION 10. Policies. - The Region shall be subject to the following policies: 
(a) Within the framework and subject to the mandate and limitations of the 
Constitution and the pertinent provisions of the Local Government Code, the 
Region shall be developed into a self-sustaining agricultural, agro-industrial, 
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industrial, commercial, financial and investment center to generate 
employment opportunities in and around the Region and to attract and 
promote productive investments; 
(b) Merchandise, raw materials, supplies, equipment, machinery, spare parts and 
wares of every description, agricultural and fisheries inputs brought into the 
Region by a registered enterprise to be sold within the Region, stored, broken 
up, repacked, assembled, installed, sorted, cleaned, graded or otherwise 
processed, manipulated,. manufactured, mixed with foreign or domestic 
merchandise whether directly or indirectly related in such activity and brought 
out of the Philippines, shall not be subject to customs and internal revenue 
laws and regulations of the Philippines" including value added tax, nor to 
local tax ordinances; 
(c) The provision of existing laws, rules and regulations to the contrary 
notwithstanding, no taxes, national and local except real property tax, shall be 
imposed upon registered enterprises located within the Region. In lieu of 
paying taxes, three percent (3 %) of the gross income earned by all registered 
enterprises within the Region shall be remitted to the National Government, 
one percent (1 %) each to the local government unit having jurisdiction over 
the particular registered enterprise. In addition, there is hereby established a 
development fund of one' percent (1%) of the gross income earned by all 
registered enterprises within the Region to be utilized for the development of 
the Region. 
In case of conflict between national and local laws with respect to tax 
exemption privileges in the Region, the same shall be resolved in favor of the 
latter; 
(d) Registered 
enterprises 
establishing 
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production, 
processing 
or 
manufacturing plants in an area within the Region which the Board designates 
as necessary for the proper dispersal of the industry or in an area which the 
Board funds deficient in infrastructure, public utilities, and other facilities, 
such as irrigation, drainage and other similar waterworks infrastructure may 
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apply in payment of taxes due from it to the government an amount equivalent 
to 100% of the necessary and major infrastructure works it may have 
undertaken with the prior approval of the Board under such terms and 
conditions as the Board may determine and in consultation with other 
government agencies concerned, provided that: 
(i) the title to all such infrastructure works shall, upon completion, be 
transferred to the Philippine Government; and 
(ii) should the registered enterprise undertake necessary and major 
maintenance work on 'such infrastructure works with the prior approval of 
the Board, a similar incentive shall be given to it in an amount equivalent 
to the cost of such necessary maintenance. 
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Provided, that in cases where the Board may certify that infrastructure or the 
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rehabilitation thereof is urgently needed in specific areas, the registered enterprise 
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undertaking the construction of infrastructure or rehabilitation thereof may apply in 
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payment of taxes due from it to the government an amount equivalent to 200% of the 
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necessary and major infrastructure works it may have undertaken with the prior approval 
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of the Board. 
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Provided, further, that a registered enterprise shall be encouraged to undertake 
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infrastructure and development projects, including but not limited to, power plants, 
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highways, ports, airports, canals, dams, hydropower projects, water supply, irrigation, 
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telecommunications, railroads and railways, transport systems, land reclamation projects, 
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markets, slaughterhouses, warehouses, solid waste management, information technology 
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networks and database infrastructure, education and development projects as may be 
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authorized by the appropriate agency pursuant to this Act. Such projects shall be 
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undertaken through contractual arrangements as defined hereunder and under Republic 
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Act No. 6957, as amended, and such other variations as may be approved by the 
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President ofthe Philippines. 
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For the construction stage of these infrastructure projects, the project proponents 
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may obtain financing from foreign and/or domestic sources and/or engage the services of 
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a foreign and/or Filipino contractor: Provided, That in case an infrastructure or a 
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development facility's operation requires a public utility franchise, the facility operator 
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must be Filipino or if a corporation, it must be duly registered with the Securities and 
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Exchange Commission and owned up to at least sixty percent (60%) by Filipinos: 
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Provided, further, That in the case of foreign contractors, Filipino labor shall be 
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employed or hired in the different phases of the construction where Filipino skills are 
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available: Provided, finally, That subjects which would have difficulty in sourcing funds 
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may be financed partly from direct government appropriations and/or from Official 
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Development Assistance (ODA) of foreign govermnents or institutions not exceeding 
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fifty percent (50%) of the project cost, and the balance to be provided by the project 
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proponent. 
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All government infrastructure agencies, including government-owned and -
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controlled corporations and local government units are hereby authorized to enter into 
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contracts with any duly prequalified proj ect proponent for the financing, construction, 
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operation and maintenance of any financially viable infrastructure or development facility 
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through any of the projects authorized in this Act and other laws. Said agencies, when 
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entering into such contracts, are enjoined to solicit the expertise of individuals, groups, or 
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corporations in the private sector who have extensive experience in undertaking 
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infrastructure or development projects. 
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(e) For the first ten (10) years from registration, a registered enterprise shall be 
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allowed to deduct from its gross income earned two hundred percent (200%) 
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of the value of the labor training expenses incurred for upgrading the 
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productivity and efficiency of unskilled labor and of apprentices, provided 
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that: 
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1. the training program is duly approved by the Board; 
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2. the deduction shall not exceed twenty percent (20%) of direct labor wage; 
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and 
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3. the apprentices shall lie paid the minimum wage. 
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Provided, that in case at least ten percent (10%) of the trainees or apprentices 
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shall be Muslim or belong to other ethnic minorities, a registered enterprise shall be 
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allowed to deduct from its gross income earned three hundred percent (300%) of the 
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value of the labor training expenses incurred for upgrading the productivity and 
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efficiency of the unskilled labor and apprentices belonging to the Muslim or other ethnic 
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minorities. 
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(t) For the first ten (10) years from registration, a registered enterprise shall be 
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allowed to deduct from its gross income earned two hundred percent (200%) 
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of the value of the research and development expenses incurred relating to the 
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business undertaken by the registered enterprise, provided that: 
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1. the research and development program is duly approved by the Board; and 
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2. the deduction shall not exceed ten percent (10%) of gross income of the 
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registered enterprise. 
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(g) For the first ten (IO) years from registration, a registered enterprise shall be 
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entitled to reimbursement for expenses incurred in undertaking feasibility 
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studies of projects deemed by the Board to be critical to development 
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objectives. Such reimbursement shall be gIVen by the Department with 
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authority over the specific project. 
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(h) For the first ten (10) years from registration, a registered enterprise may carry 
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over its net operating loss as a deduction from its gross income earned for the 
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next three (3) consecutive years immediately following the year of such loss. 
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(i) Private agricultural lands that have not been distributed and upon which no 
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Certificates of Land Ownership Award have been issued shall be exempt from 
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the coverage of Republic Act No. 6657, known as the Comprehensive 
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Agrarian Reform Law ("CARL"); Provided, that such lands shall be directly 
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and exclusively used by registered enterprises within the Region. 
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In cases where the lands have been subjected to the CARL, by voluntary offer to 
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sell, or commercial farms deferment or notices of compUlsory acquisition, a simple and 
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absolute majority of the actual regular workers or tenants must consent to the exemption 
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within one (I) year from the effectivity of this Act. Should the workers or tenants not 
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agree to this 
exemption, the lands shall be distributed collectively to the worker 
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beneficiaries or tenants who shall f6rm a cooperative or association to manage the same. 
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The provisions of Republic Act No. 6657 to the contrary notwithstanding, land 
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SUbjected to CARL may be mortgaged, leased, sold or otherwise disposed of in favor of a 
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registered enterprise. 
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In cases where the lands have not been subjected to the CARL, the consent of the 
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farm workers shall no longer be necessary. However, the provision of Section 32-A of 
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Republic Act No. 7881 on incentives shall apply. 
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SECTION 11. Labor Relations. The Region shall uphold industrial peace, 
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harmony and productivity to establish a sound and peaceful investment climate and 
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simultaneously promotes and enhances the lives and dignity of all workers. 
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Unless otherwise provided by law, all Philippine law and social security laws 
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shall apply within the Region pursuant to the above-stated policy, all laws on strikes and 
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lockouts will be strictly enforced. 
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MIDA shall establish a Labor Center which center shall be responsible for 
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studying and amicably settling' professional and labor relations and disputes, 
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interpretation of employment contracts and monitoring work, hygiene and safety 
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standards within the Region. 
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Subject to existing labor laws, as may be specified in employment contracts or 
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collective bargaining agreements, all labor disputes must be brought before the Labor 
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Center which will attempt to amicably settle the case. In case the Labor Center cannot 
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settle the dispute amicably, it will certify the dispute for mediation or arbitration before 
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the proper office of the Departmenr of Labor and Employment or the Secretary of Labor 
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and Employment for compulsory arbitration or assumption of jurisdiction. 
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SECTION 12. Government Assistance. Upon the recommendation of the MIDA 
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Board and subject to the qualifications under its relevant charters, the Development Bank 
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of the Philippines, Land Bank of the Philippines and similar government financial 
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institutions are mandated to render financial assistance to registered enterprises in the 
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Region which may be secured by an undertaking from the Government, through the 
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Department of Finance, to issue a guarantee in favor of the aforementioned registered 
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enterprise whenever warranted by the circumstances. 
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Depending on the nature of the registered enterprise, line departments shall be 
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required to extend interest assistance to the extent determined by the appropriate 
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Secretary for loans availed of by the registered enterprise pursuant to this Act. 
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SECTION 13. Other Incentives. The expatriates employed by the registered 
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enterprises shall be entitled to the following incentives: 
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(a) Upon submission of all necessary documents, the Bureau ofImmigration shall 
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issue the multiple entry special visa to foreign personnel of registered 
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enterprises, their respective spouses and unmarried children under 21 years of 
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age, if accompanying them or if following to join them after their admission 
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into the Philippines as non-immigrant within seventy-two (72) hours upon 
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submission of all required documents. This is without prejudice to the 
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authority of the Department of Foreign Affairs to issue visas. 
The visa shall be valid for a period of five (5) years to enter the 
Philippines. The admission and stay shall be coterminous with the validity of 
the mUltiple entry visa. The stay, however, is extendible to five (5) years upon 
submission to the Burelm of Immigration of a sworn certification by a 
responsible officer of the registered enterprise that is licensed to operate or 
registration remains valid and subsisting and that the registered enterprise has 
withheld tax due on compensation and the same has been paid to the Bureau 
of Internal Revenue. 
Non-immigrants who have been admitted under the multiple entry special 
visa, as well as their respective spouses and dependents, shall be exempt from: 
the payment of all fees due under immigration and alien registration laws; 
securing alien certificates of registration; and obtaining emigration clearance 
certificates, except reasonable administrative cots. They are also exempt from 
all types of clearances required by any government department or agency, 
except that upon final departure from the Philippines the employer of the said 
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non-immigrants shall so fldvise in writing the Bureau of Immigration at least 
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five (5) working days prior to the immigrant's departure and the finally 
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departing non-immigrant employee shall be required to submit to the said 
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office a tax clearance from the Bureau of Internal Revenue. 
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(b) Alien executives occupying managerial and technical positions employed by 
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the registered enterprise shall be subject for each taxable year upon their 
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gross income received as salaries, wages, annuities, compensations, 
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remuneration and emoluments to a final tax equal to fifteen percent (15%) of 
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such gross income. The same tax treatment is applicable to Filipinos 
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employed and occupying the same positions as those aliens employed by 
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registered enterprises, regardless of whether or not there is an alien executive 
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occupying the same position. 
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Qualified Filipino employees shall have the option to be taxed at either 
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15% of gross income or at the regular tax rate on their taxable income in 
IS 
accordance with the National Internal Revenue Code of 1997. 
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(c) An alien executive of the registered enterprise shall enjoy tax and duty free 
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importation of personal and household effects as provided for under Section 
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105(h) of the Tariff and Customs Code as amended, and Section 109 (I) of 
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the National Internal Revenue Code, as amended; Provided, That the 
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personal and household effects shall arrive in the Philippines within ninety 
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(90) days before or after conversion of the alien executive's admission 
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category to multiple entry visa issued under this Act. 
23 
(d) Foreign personnel of registered enterprises and the dependents of such foreign 
24 
personnel if joining them during the period of their assignment in the 
25 
Philippines shall be exempted from the payment of travel tax imposed under 
26 
Section I of Presidential Decree No. 1183, as amended. 
27 
28 
SECTION 14. Simplified Public Bidding. As a general rule, contracts for 
29 
infrastructure development, construction, repair, rehabilitation, improvement or 
30 
maintenance should be conducted through public bidding pursuant to Republic Act No. 
31 
6957, as amended. However, in the exigency of public service and national interest as 
32 
may be determined by the President, and in order to achieve the objectives of this Act, 
33 
simplified bidding through sealed canvass of at least three (3) pre-qualified investors may 
34 
be resorted to. The process of selecting the prospective lessees and private investors shall 
35 
be transparent, where procedures and selection process adapted are made public through 
36 
newspaper advertisements and similar other means. 
37 
11 


1 
SECTION 15. Authority to Declare Economic Zones. The President is 
2 
authorized to declare certain areas within the Region as economic, free trade, agro-
3 
industrial, agricultural, agri -tourism, or industrial zones qualified and eligible for all 
4 
incentives provided for under this Act and other existing laws. The President is further 
5 
authorized to declare areas within the Region as underdeveloped and therefore entitled to 
6 
incentives and support over and above those provided in this Act. 
7 
8 
SECTION 16. Applicability to Existing Enterprises in the Region. The basic 
9 
rights incentives granted under this Act may be availed of existing business enterprises 
J 0 
within the Region provided that these enterprises possess the minimum qualification as 
11 
set forth in Section 8 and they register with the MIDA within six (6) months from the 
12 
effectivity of the rules implementing,this Act. 
13 
14 
SECTION 17. Coordination with Various Government Organizations. - The 
15 
Board shall consult and coordinate with existing government organizations including the 
16 
Autonomous Region of Muslim Mindanao, Mindanao Economic Development Council, 
17 
Southern Mindanao Development Authority, Special Zone of Peace and Development in 
18 
formulating policies and programs. 
19 
20 
SECTION 18. Implementing Rules and Regulations. -
To implement the 
21 
provisions of this Act, the Department of Agriculture, the Department of Trade and 
22 
Industry and the Department of Finance shall formulate the implementing rules and 
23 
regulations of this Act within thirty (30) days after its approval. Such rules and 
24 
regulations shall take effect fifteen (15) days after their publication in a newspaper of 
25 
general circulation in the Philippines. 
26 
27 
SECTION 19. Separability Clause. - If any part or section of this Act is declared 
28 
unconstitutional for any reason or whatsoever, such parts not so declared shall remain in 
29 
full force and effect. 
30 
31 
SECTION 20. Repealing ·Clause. - All laws, decrees, orders, rules and 
32 
regulations or issuances or parts thereof inconsistent with the provisions of this Act are 
33 
hereby repealed or modified accordingly. 
34 
35 
SECTION 21. Effectivity Clause. -This Act shall take effect after fifteen (15) 
36 
days following its full publication in at least two (2) newspapers of general circulation in 
37 
the Philippines. 
38 
12 


: 
1 
1 
Approved, 
2 
13