Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Nineteenth Congress
First Regular Session

House BILLNO._ 1174 |

Introduced by Honorable Bryan B. Revilla

AN ACT

DIRECTING THE CONVERSION OF SANGLEY POINT IN CAVITE CITY
INTO AN INTERNATIONAL LOGISTICS HUB

EXPLANATORY NOTE

In line with the government’s concerted effort to promote economic reforms, it has become
an undeclared policy of the government to exhaust all possible means to support the country’s
continued search for genuine sustainability. To achieve this end, there is a need among others, to
provide infrastructure for more efficient and cheaper transportation of inputs and outputs of
industrial goods.

One of the major projects that is necessary is the provision of an international container port
complex which will include an airport and seaport. ‘This facility can best be achieved through
converting the US Naval Sangley Point located in Cavite City into such complex.

US Naval Station Sangley Point was a major ship-repair and supply facility of the United
States Navy, which occupied the northern portion of the Cavite City peninsula and is surrounded
by the Manila Bay, approximately cight miles southwest of Manila. Up until World War Il, the
station was headquarters of the US Asiatic Fleet. The naval station was turned over to the
Philippine government in 1971. At present, the Sangley Point is being used by the Philippine Navy
for ship repair and dry docking purposes

Sangley Point has the following comparative advantage and potentials for growth: a bay
location that provides potential sea transport, existing air and port facilities which could be
upgraded and improved, it has a military airport which has a concrete runway of 229 x 22 meters,

and road links, which provide access to Manila and CALABARZON growth corridors.


It now becomes imperative that such notable advantages of Sangley Point be not taken for
granted, The economic opportunity that Sangley Point offers to the country must not be put to
waster, especially not that the country is in continuous search of possible springboards for

economic take-off.
This bill seeks to convert the almost idle but very promising facility of Sangley Point into an
international logistics hub to facilitate general economic growth and social development of the

Province of Cavite and the Philippines, in general

In view of the foregoing, the immediate passage of this bill is earnestly sought.

B. REVILLA
Representative
AGIMAT Partylist



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Nineteenth Congress
First Regular Session

1174

HOUSE BILL NO.

Introduced by Honorable Bryan B. Revilla

AN ACT

DIRECTING THE CONVERSION OF SANGLEY POINT IN CAVITE CITY INTO
AN INTERNATIONAL LOGISTICS HUB

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

SECTION 1. Short Title. — This Act shall be known as the "Sangley Point Conversion Act of 2016

SEC. 2. Declaration of Policy. ~ It is hereby declared the policy of the Government to accelerate
the sound and balanced conversion into alternative productive uses of the Sangley Point in Cavite City.

Itis likewise the declared policy of the Government to enhance the benefits to be derived from said
conversion in order to promote economic and social development of Cavity City in particular and the country in
general

SEC. 3. The Sangley Point International Logistics Hub. — In accordance with the foregoing
declared policy, there is hereby established an international logistics hub, comprising a Container Port
and Airport Complex and an Economic Processing Zone with Cyber or Technoparks, to be known as the
Sangley Point International Logistics Hub, hereinafter known as the Hub, located in the northern portion
of the Cavite peninsula and is surrounded by Manila Bay, approximately eight miles from Manila

SEC. 4, Governing Principles. — The Sangley Point International Logistics Hub shall be managed
and operated under the following principles

(a) Under the framework and limitation of the Constitution and the applicable provision of the
financial, investment, and tourism/recreational center and free port with Local Government
Code, the Hub shall be developed into and operated as a self-sustaining, commercial, industrial
and logistic hub and suitable for retirement/residential purposes, in order to create employment
‘opportunities in and around the Hub, and to effectively encourage and attract legitimate and
productive foreign and local investments therein;


(b) The Hub shall be operated and managed as a separate customs territory ensuring free flow or
movement of goods and capital within, into and exported out of the Hub, as well as provide
incentives such as tax and duty-free importation or removal of goods from the territory of the
Hub to the other parts of the Philippine territory shall be subject to customs duties and taxes
under the tariff and Customs Code of the Philippines, as amended, and other relevant tax laws
of the Philippines;

(c) The provision of existing laws, rules and regulation to the contrary notwithstanding, no national
and local taxes shall be imposed within the Hub. In lieu of said taxes, a five percent (5%) tax
‘on gross income earned shall be paid by all business enterprises with the Hub and shall be paid
by all business enterprises within the Hub and shall be remitted as follows: tow percent (2%) to
the National Government and two percent (2%) to the Sangley Point Authority referred in
Section 5 of this Act, and one percent (1%) to the Cavite City government;

(d) Existing banking laws and Bangko Sentral ng Pilipinas rules and regulations shall apply on
foreign exchange and other current account transaction (trade and non-trade), local and foreign
borrowings, foreign investments, establishment and operation of local and foreign banks,
foreign currency deposit units, offshore banking units and other financial institution under the
supervision of the BSP.

(e) Any foreign investor who establishes a business enterprise within the Hub and who maintains
capital investment of not less than one hundred fifty thousand United States dollars
(US$150,000.00) shall be granted, along with his or her spouse, dependents, and unmarried
children below twenty-one (21) years of age a permanent resident status within the Hub. The
responsibility and authority grant such as permanent resident status is hereby delegated to the
Sangley Point Authority

Such foreign investor and his or her spouse, dependents, and unmarried children below the age
of twenty-one (21) years, shall have the freedom of ingress and egress to and from the Hub
without need of any special authorization of the Bureau of Immigration

Likewise, the Sanley Point Authority, referred herein Section 5, shall issue working visas
renewable every two (2) years to foreign executives and foreign technicians with highly
specialized skills which no Filipino possesses, as certified by the Department of Labor and
Employment

‘The names of foreigners granted permanent resident status and working visas by the Sangley
Point Authority shall be reported to the Bureau of Immigration within thirty (30) days from such
grant.

The foregoing is without prejudice to a foreigner acquiring permanent resident status in the
Philippines in accordance with applicable immigration, retirement, and other related laws; and


(f) Except otherwise provided herein, the local government units totally or partially embraced
within the Hub shall retain and maintain their basic autonomy and identity. Cavite City shall
operate and function in accordance with Republic Act No. 7160, otherwise known as the Local
Government Act of 1991, insofar as the areas within its jurisdiction covered in this Act are
concemed.

SEC. 5. Creation of the Sangley Point Authority. — A body corporate to be known as the Sangley
Point authority, hereinafter referred to as the SPA, is hereby created to manage and operate, in accordance
with the provision of this Act, the Sangley Point International Logistics Hub. This corporate franchise
shall expire in fifty (50) years counted from the first day of the fifth (5") calendar year after the effectivity
of this Act, unless otherwise extended by Congress.

SEC. 6. Powers and Functions of the Sangley Point Authority. ~ The Sangley Point Authority
shall have the following powers and functions

(a) To adopt, change, use a corporate seal; to contract, lease, buy, sell, acquire, own and dispose,
movable and immovable as well as personal and real property of whatever nature (including but
not limited to shares of stock or participation in private corporations or in limited partnerships, or
in joint ventures with limited liability), bonds, precious metals in bullions, ingots, and easily
convertible foreign exchange: to sue and be sued in order to carry out its duties, responsibilities,
privileges, powers and functions as granted and provided for in this Act; and to exercise the power
‘of eminent domain for public use and public purpose;

(b) Within the limitation provided by law, to raise and borrow adequate and necessary funds from
local or foreign sources (o finance its projects and programs under this Act, and for that purpose
to issue bonds, promissory notes, and other form of securities, and to secure the same by a
guarantee, pledge, mortgage, deed of trust, or an assignment of all or part of its property or assets:

(c) To approve, accept, accredit and allow any local or foreign business, enterprise or investment in
the Hub subject only to such rules and regulations as SPA may promulgate from time to time in
conformity with the provisions of this Act and the limitations provided din the Constitution;

(d) To authorize or undertake, on its own or through others, and regulate the establishment, operation
and maintenance of public utilities, services, and infrastructure in the Hub such as shipping,
barging, stevedoring, cargo handling, hauling, warehousing, storage, of cargo, port services, or
concessions, piers, wharves, bulkheads, bulk terminals, mooring areas, storage areas, roads,
bridges, terminals conveyors, water supply and storage, sewerage, drainage, airport and ports
operation in coordination with the Civil Aeronautics Board and Philippine Ports Authority, and
such other services or concessions or infrastructure necessary or incidental to the accomplishment
of the objectives of this Act: Provided, however, That the private investors in the Hub shall be
given priority in the awarding of contracts, franchises, licenses, or permit for the establishment,
operation and maintenance of utilities, services and infrastructure in the Hub;

(c) To construct, acquire, own, lease, operate and maintain on its own or through others by virtue of
contracts, franchises, licenses, or permits under the build-operate-transfer scheme or under a joint


venture with the private sector any orall of the public utilities and infrastructure required or needed
in the Hub, in coordination with appropriate national and local government authorities and in
conformity with applicable laws thereon;

(£) To operate on its own, either directly or through a subsidiary entity, or license to others, tourism-
related activities, including games, amusements, recreational and sports facilities such as horse
racing, dog racing, gambling casinos, golf courses, and others, under priorities and standards set
by the SPA;

(g) To from, establish, organize and maintain subsidiary corporations as its business and operations
may require, whether under the laws of the Philippines or not;

(h) To adopt implement and enforce reasonable measures and standards to control pollution within
with Hub;

(i) To provide security for the Hub in coordination with the national and local governments. For this
purpose, SOA may establish and maintain its own security force are firefighting capability or hire
others to provide the same;

(j) To plan, program and undertake the adjustment, relocation, or resettlement of population within
the Sangley Point military reservations and their extensions as may be deemed necessary and
beneficial by the SPA, in coordination with the appropriate agencies and local government units

(k) To issue rules and regulations consistent with the provision of this Act as may be necessary to
implement and accomplish the purposes, objectives and policies herein provided; and

(1) To exercise such powers as may be essential, necessary or incidental to the powers granted to it
hereunder as well as those that shall enable it to carry out, implement, and accomplish the
purposes, objectives and policies of this Act.

SEC. 7. Board of Directors of SPA. ~ The powers of the Sangley Point Authority shall be vested
in and exercised by a Board of Directors, hereinafter referred to as the Board, which shall be composed
of nine (9) members, to wit:

Chairman: Chairman of the Philippine Reclamation Authority
Co-Chairman: Mayor of Cavite City or his authorized representative
Members: Secretary: Department of Transportation and Communication or his,

authorized representative

Director General: National Economic and Development Authority or
his authorized representative

Secretary: Department of Trade and Industry or his authorized
representative



Secretary: Department of Environment and Natural Resources or his
authorized representative

Secretary: Department of Public Works and Highways or his authorized
representative

Director General: Philippine Economic Zone Authority or his authorized
representative

Members of the Board shall receive a reasonable per diem which shall not be less than the amount
equivalent to the representation and transportation allowances of the members of the Board and/or
as may be determined by the Department of Budget and Management: Provided, however, That
the total per diem collected each month shall not exceed the equivalent per diem for four (4)
meetings, Unless and until the President of the Philippines has fixed a higher per diem for the
members of the Board, such as per diem shall not be more than ten thousand pesos (P10,000.00)
for every Board Meeting

SEC. 8. Administrative and Chief Executive Officer. — the President of the Philippines shall
appoint a full-time professional and competent administrator and chief executive officer for the SPA
whose compensation shall be determined by its Board and shall be in accordance with the revised
compensation and position classification system. The administrator as chief executive officer of SPA shall
be responsible to the Board and the President of the Philippines for the efficient management and
operation of the Hub.

SEC. 9. Capitalization, — The SPA shall have an authorized capital stock of two billion pesos
(P2,000,000,000.00) divided into 200,000,000 with a minimum issue value of ten pesos (P10.00) per
share. The national government shall initially subscribe and pay for the shares of stocks shall be included
in the General Appropriation Act of the year following its enactment into law and thereafter. The Board
of Directors of SPA may, from time to time and with the written concurrence of the Secretary of finance,
increase the issue value of the shares representing the capital stock of the SPA. The Board of Directors
of SPA, with the written concurrence of the Secretary of Finance, may sell shares representing not more
than forty per centum (40%) of the capital stock of the SPA to the general public with such annual
dividend policy as the Board and the Secretary of Finance may determine. The national government shall
in no case own less than sixty per centum (60%) of the total issued and outstanding capital stock of the

SPA.

SEC. 10. Supervision. ~ The Hub shall be under the direct control and supervision of the Office
of the President of the Philippines for purposes of policy direction and coordination.

SEC. 11, Relationship with Local Government Units. — In case of any conflict between the Hub
and the local government unit totally or partially embraced within the Hub, on matters affecting the Hub,
the other than in defense and security matters, the decision of SPA shall prevail


SEC. 12. Legal Counsel. ~ The SPA and the corporation in which the SPA owns a majority of the
issued capital stock shall have its own internal legal counsel under the supervision of the government
counsel. When the exigencies of its businesses and operations demand it, the SPA may engage the
services of an outside counsel either on a case to case basis or on a fixed retainer.

SEC. 13. Auditor. - The Commission on Audit shall appoint a representative who shall be a full-
time editor of the SPA and the subsidiaries, and assign such number of personnel as may be necessary to
assist said representative in the performance of his or her duties. The salaries and emoluments of the
assigned auditor and personnel of the Commission on Audit shall be in accordance with the revised
compensation and position classification system. The Commission on Audit shall render an annual report
to the President of the Philippines and to Congress on the business activities, transactions and operation
of the SPA.

SEC. 14, Mechanism for those affected by the Conversion. - There shall be designated a
relocation for affected military camps and other facilities, either within the Sangley Point Area or outside,
consistent to existing laws, and regulations. Provided further that an appropriation to support the
relocation cost of the combined facilities of the Philippine Navy and the Philippine Ari Force which shall
come from the proceeds of the lease, joint venture and transactions entered into by the Authority,

SEC. 14. Separability Clause. — If any provision of this Act is declared unconstitutional or invalid,
the provisions hereof which are not affected shall continue to be in force and effect.

SEC. 15. Repealing Clause. ~ All laws, decrees, proclamations, issuances, or ordinances that are
contrary to or inconsistent with the provisions of this Act are hereby amended, repealed, or modified
accordingly.

SEC. 16. Effectivity. ~ This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation

Approved,