Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Manila

SIXTEENTH CONGRESS
First Regular Session

House Bill No._ 8844

Introduced by HONORABLE ROSE MARIE ‘BABY’ J. ARENAS

EXPLANATORY NOTE

The archipelagic nature of the Philippines has always proved to be a
challenge to our government. The more than 7,000 islands and the various
bodies of water surrounding these islands bogged down many government
development projects to the detriment of our people. However, with the advent
of information and communications technology, bringing programs and services
to even remote barangays has now become doable and feasible.

The deregulation of the telecommunications industry which began in
1987, brought tremendous changes to the way we relate with each other and
with the world. This enabled universal access to information and
communications technology thereby allowing the development of cyber services.
This allowed the country to participate in the Global Off-shoring and Outsourcing
(Global 0 & 0) Industry. Consequently, niche markets emerged in animation,
customer contact, back office, software development, medical and legal
transcription, game development, and other cyber services. In 2005, the ICT
sector niche markets brought US$2.4B in revenues, which provided 162,250 jobs.
In 2009, revenue grew by 200 per cent to US$7.2B, while increasing local jobs to
442,000.

IT-related industries, BPO/contact centers, and tourism are among the
priority investment areas in the Investment Priority Plan. With more investment
in these industries, especially in information and technology, we should be able
to create more Information and Communications Technology or ICT Hubs in
every legislative district of the country. This should allow the country to become
more competitive and to leapfrog to the future.

The Philippines has 234 legislative districts in 81 provinces. If this bill
becomes a law, at 234 nodes can be established to pump prime economic
activities and promote development in every province. This bill hopes to


minimize the so-called digital divide as well as speed up the setting up of a
wireless communications technology.

With an ICT Hub, each legislative district of the country will be able to
harness its potential to making it investor-friendly and accessible. It can also
electronically promote the province’ nerve centers to connect to the various
agencies of the national government thereby pushing the growth of e-
government locally and nationally. The ICT Hub can also link a province to the
national government during times of national calamities and disasters. More
importantly, with the ICT Hub, the archipelagic feature of the country can be
bridges, thereby creating One Philippines.

Immediate passage of this bill is requested.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Manila

SIXTEENTH CONGRESS
First Regular Session

House Bill No.__ 3344

Introduced by HONORABLE ROSE MARIE ‘BABY’ J. ARENAS

AN ACT
ESTABLISHING AN INFORMATION AND COMMUNICATIONS
‘TECHNOLOGY (ICT) HUB IN EVERY LEGISLATIVE DISTRICT OF THE
PHILIPPINES AND FOR OTHER PURPOSES

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

Section 1. Title. - This Act shall be known and cited as the “One Philippines
Act of 2013”.

Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State:

a. To recognize the vital role of communication and information in nation-
building. Toward this end, the State shall provide for the creation and
establishment of Information Communications Technology Hub,
hereinafter referred to as ICT Hub, in every legislative district of the
country;

b. To promote and encourage investment in the countryside by providing
the infrastructure necessary for the growth of information and
communications technology; and

c. To ensure the adequate supply of power and electricity in the
countryside in support of the development of information and
communications technology.

Sec. 3. Information Communications Technology Plan. - The provincial
or city board, consistent with the Medium Term Philippine Development Plan
(MTPDP) and in coordination with the Commission on Information and
Communications Technology (CICT), shall formulate and approve an Information
Communications Technology (ICT) Plan for the legislative districts of each


province or city, taking into consideration its comparative advantage, funding
mix, private sector involvement, incentives to locators, local tax incentives,
among others.

Sec. 4. Location of ICT Hub. - Pursuant to the provincial or city
development plan, the provincial or city board shall identify the area where the
ICT Hub shall be established: Provided, That, the area/s shall not be in the capital
or urban center of the province: Provided, further That, the area is owned by the
provincial or city government.

For purposes of this Act, Information Communications Technology (ICT) is
the totality of electronic means to collect, process and present information to
end-users in support of their activities. It consists among others, of computer
systems, office systems and consumer electronics, as well as networked
information infrastructure, the components of which include the telephone
system, the Internet, fax machines and computers.

An ICT Hub refers to a center or location where services may be provided
through the use of ICT. Such services may include telecommunication services,
data management, etc.

Sec. 5. Digital Infrastructure Fund. - A Digital Infrastructure Fund
hereinafter referred to as the Fund is hereby created and lodged in the CICT. The
amount of Ten Billion Pesos (Php10,000,000,000.00) or as much thereof as may
be necessary is hereby appropriated from the general fund for the purpose of
providing seed capital and as the counterpart of the national government in the
establishment of the ICT Hub in each legislative district of each province or city:
Provided, That, the Fund shall be disbursed in a pro-rata manner based on the
following criteria: telephone density, degree of digital divide, ICT penetration
ratio, presence of new alternative backbone networks, science and technology
parks and industrial estates with an ICT focus, among others.

Subsequent appropriations shall be annually provided for in the General
Appropriations Act with an annual increment of 25 percent per annum until the
amount of Php 50,000,000,000.00 shall have been reached.

Sec. 6. Tax and Fiscal Incentives. - Any locator in the ICT Hub shall be
entitled to the fiscal and non-fiscal incentives under the Omnibus Investments
Code (E.0. No. 226, series of 1987), as amended, and the Special Economic Zone
Act of 1995 (R.A. No. 7916), including a 5-year tax break from national taxes:
Provided, That, they are part of the Global O & O, such as, but not limited to:
animation, customer contact, back office, software development, medical and
legal transcription, and other cyberservices: Provided, Further That, sixty percent
(60%) of its labor force shall be recruited locally and that corporate income shall
be declared and taxes shall be paid locally on the sixth (6) year of its operations;


Provided, Finally, That locators in the top 30 poorest provinces of the country as
identified by the National Economic and Development Authority, shall be given a
pioneer status and shall be entitled to such additional incentives as may be
allowed by law.

ICT Hubs already receiving such incentives shall continue to be entitled to
them.

Sec. 7. Implementing Rules and Regulations. - The Commission on
Information and Communications Technology, in coordination with the
Department of Interior and Local Government, and other concerned entities,
shall formulate the necessary implementing rules and regulations of this Act.

Sec. 8. Separability Clause. - Any portion or provision of this Act that may
be declared unconstitutional shall not have the effect of nullifying other
provisions hereof, as along as such remaining provisions and still subsist and be
given effect in their entirety.

Sec. 9, Repealing Clause. - All laws, rules and regulations, other issuances
or parts thereof, which are inconsistent with this Act, are hereby repealed or
modified accordingly.

Sec. 10. Effectivity. - This Act shall take effect fifteen (15) days from its
publication in the Official Gazette or two national newspapers of general
circulation.

Approved,