tVM Senate
o( iljc £■'<'
NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
, Harp
*22 DEC-7 PI -03
SENATE
RKCEIVtDBY:
S.B. No. 1605
Introduced by SENATOR IMEE R. MARCOS
AN ACT
CONVERTING AND EXPANDING THE LEYTE INDUSTRIAL DEVELOPMENT 
ESTATE INTO THE LEYTE ECOLOGICAL INDUSTRIAL ZONE, CREATING FOR 
THIS PURPOSE THE LEYTE ECOLOGICAL INDUSTRIAL ZONE AUTHORITY, 
AND APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
Section 20, Article II of the 1987 Constitution states that, "The State recognizes 
the indispensable role of the private sector, encourages private enterprise, and 
provides incentives to needed investments."
The United Nations Conference on Trade and Development (UNCTAD) defines 
Special Economic Zones (SEZs) in its World Investment Report 2019 as geographically 
delimited areas within which governments facilitate industrial activity through fiscal 
and regulatory incentives and infrastructure support.
The Leyte Industrial Development Estate is a 425-hectare special economic zone 
established by then President Ferdinand E. Marcos in 1978 through Letter of 
Instruction No. 962, series of 1979. The said LOI established an "industrial estate" in 
Isabel, Leyte, and entrusted to the Leyte Sab-a Basin Development Authority the duty 
and function of implementing the project. With the abolition of the Leyte Sab-a Basin 
Development Authority, ownership of Leyte Industrial Development Estate (LIDE) was 
transferred to and is presently owned by the National Development Corporation (NDC) 
which is represented by the LIDE Management Corporation, the estate managers of 
LIDE.
In 2012, the Copper Industry Roadmap was crafted with the aim to promote the 
integrated development and competitiveness of copper and other related industries in 
the region. It was later on also made part of the government's continuous 
rehabilitation efforts in the region after the devastation of typhoon Yolanda.


Hence, this bill seeks the conversion of the Leyte Industrial Development Estate 
(LIDE) in the municipality of Isabel, Leyte and its expansion to include other 
municipalities in the province of Leyte adjacent to LIDE and the Eastern Visayas 
Regional Growth Center (EVRGC) in the City of Tacloban into the Leyte Ecological 
Industrial Zone (LEIZ).
Further, the establishment of an ecological industrial zone aims to attract more 
investors and businesses to locate in Leyte and the City of Tacloban, jumpstarting the 
revival of economic activities in the area and provide more employment opportunities. 
The establishment of the LEIZ and development of a copper industry cluster in Leyte 
will serve as our medium to long-term strategic economic objective consistent with 
the country's industry development goals.
The proposed zone is also expected to initially house potential locators in the 
field of copper wire rod casting facility, downstream copper industry such as but not 
limited to copper wire producers, major industrial concerns that need power, and port 
facilities such as steel, and copper-using industries. However, the long-term objective 
is to develop LEIZ into a self-sustaining and ecologically sustainable Industrial, 
commercial and investment zone that will put In place a wide-reaching employment 
and investment general mechanism as well as incentives to ensure the free flow and 
movement of goods and commodities within the freeport area and their exportation 
from therein.
In light of this, the approval of this bill is earnestly sought.
MEE R. MARCOS


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NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. 1605
Senate
c: 11).' €»ntPtarp
•22 DEC -7 PI :03
RECEIVED BV;
Introduced by SENATOR IMEE R. MARCOS
AN ACT
CONVERTING AND EXPANDING THE LEYTE INDUSTRIAL DEVELOPMENT 
ESTATE INTO THE LEYTE ECOLOGICAL INDUSTRIAL ZONE, CREATING FOR 
THIS PURPOSE THE LEYTE ECOLOGICAL INDUSTRIAL ZONE AUTHORITY, 
AND APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
CHAPTER I
GENERAL PROVISIONS
SECTION 1. Short Title. - This Act shall be known as the "Leyte Ecological 
Industrial Zone Act"
SEC. 2. Declaration of Policy. - It is declared the policy of the State to 
encourage, promote, and accelerate the sound and balanced industrial, economic, and 
social development of the country. The establishment of special economic zones shall 
attract legitimate and productive foreign investments in strategic locations in the 
country. It shall generate employment and increase productivity and individual, as 
well as family incomes, thereby enhancing the quality of life of the Filipino people.
CHAPTER II
CONVERSION AND EXPANSION OF THE ECONOMIC ZONE
SEC. 3. Conversion of the Leyte Industrial Development Estate. - The
Leyte Industrial Development Estate (LIDE) located in the municipality of Isabel, 
Province of Leyte is hereby converted into a special economic zone, consisting of an 
industrial estate (IE), export processing zone (EPZ) and free trade zone to be known


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as the Leyte Ecological Industrial Zone, hereafter referred to as LEIZ.
SEC. 4. Expansion of the LEIZ. - Subject to the concurrence of the affected 
local government units of Leyte, the LEIZ shall be expanded to cover the following 
areas;
(a) The land area that comprises the former Leyte Industrial Development Estate, 
hereinafter referred to as the "LEIZ Core Area";
(b) The land areas located within municipalities adjacent to the Municipality of 
Isabel, Province of Leyte, hereinafter referred to as the "LEIZ Non-Core Areas"; 
and
(c) The land area covered by the Eastern Visayas Regional Growth Center, 
hereinafter referred to as the "LEIZ Tacloban North."
The areas comprising the LEIZ may be expanded or reduced when necessary. 
For this purpose, the LEIZA, with the concurrence of the appropriate and affected local 
government units (LGUs) and the agreement of appropriate national government 
agencies, government-owned and -controlled corporations and instrumentalities, and 
the approval of the LEIZA Board in accordance and in compliance with existing laws 
and local ordinances shall have the power to acquire, procure, or expand either by 
purchase, negotiation, condemnation proceedings, or any other arrangement, any 
private or alienable and disposable public lands and their respective water territories 
within the territorial jurisdiction of the Province of Leyte.
The metes and bounds of the LEIZ Core Area, the LEIZ Non-Core Areas and the 
LEIZ Tacloban North shall be based on the technical description and coordinates 
verified and approved by the Land Management Bureau, the National Mapping and 
Resource Information Authority, and other government agencies as may be provided 
by law.
SEC. 5. Governing Principles. -The LEIZ shall be managed and operated by 
the Leyte Ecological Industrial Zone Authority, hereafter referred to as the LEIZA, 
under the following principles:
(a) Within the framework and limitations of the Constitution and applicable 
provisions of the Local Government Code, the LEIZ shall be developed into and 
operated as a decentralized, self-reliant and self-sustaining industrial, 
commercial and trading, agro-industrial, tourist, banking, financial and 
investment center with suitable residential areas;
(b) The LEIZ shall be provided with transportation, telecommunications and other 
facilities needed to attract legitimate and productive investments, generate 
linkage industries and employment opportunities for the people of Leyte and 
its neighboring towns and cities;


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(c) The LEIZ may establish mutually beneficial economic relations with other 
entities or enterprises within the country or, subject to the administrative 
guidance of the Department of Foreign Affairs (DFA), and Philippine Economic 
Authority (PEZA), and the Department of Trade and Industry (DTI), with 
foreign entities or enterprises;
(d) Foreign citizens and companies owned by non-Filipinos in whatever proportion 
may set up enterprises in the LEIZ, either by themselves or in a joint venture 
with Filipinos in any sector of industry, international trade and commerce within 
the LEIZ;
(e) The LEIZ shall be managed and operated as a separate customs territory 
thereby ensuring the free flow or movement of goods and capital within, into, 
and out of its territory, and shall likewise provide incentives such as tax and 
duty-free importations of raw materials, capital and equipment to registered 
enterprises located therein, as provided under Republic Act No. 11534, 
otherwise known as the "Corporate Recovery and Tax Incentives for Enterprises 
Act;
(f) Goods manufactured by a LEIZ enterprise shall be made available for 
immediate retail sale in domestic market, subject to the payment of 
corresponding taxes on raw materials and other regulations that may be 
formulated by the LEIZA together with the PEZA, the Bureau of Customs (BOC) 
and the DTI. However, in order to protect domestic industries, a negative list 
of industries shall be drawn up and regularly updated by PEZA. Enterprises 
engaged in industries included in such negative list shall not be allowed to sell 
their products locally;
(g) The defense of the LEIZ and the security of its perimeter shall be the 
responsibility of the national government in coordination with the LEIZA and 
the LGUs.
CHAPTER III
GOVERNING STRUCTURES
SEC. 6. Creation of the Leyte Ecological Industrial Zone Authority 
(LEIZA). - There is hereby created a body corporate to be known as the "Leyte 
Ecological Industrial Zone Authority", hereinafter referred to as the LEIZA, which shall 
manage and operate the Leyte Ecological Industrial Zone, in accordance with the 
provisions of this Act. This corporate franchise shall expire in fifty (50) years counted 
from the first year after the effectivity of this Act, unless otherwise extended by 
Congress. It shall be organized within one hundred eighty (180) days after the 
effectivity of this Act.


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SEC. 7. Capitalization. - The LEIZA shall have an authorized capital stock of 
Two billion pesos (Php2,000,000,000) no par shares with a minimum issue of Ten 
pesos (PhplO.OO) each, the majority shares of which shall be subscribed and paid for 
by the National Government and the LCDs embracing the LEIZ. The Board of Directors 
of the LEIZA may, with the written concurrence of the Secretary of Finance, sell 
shares, representing not more than forty per centum (40%) of the capital stock of the 
LEIZA to the general public under such policy as the Board and the Secretary of 
Finance may
determine. The National Government and the LGUs shall in no case own less than 
sixty per centum (60%) of the total issued and outstanding capital of the LEIZA.
The amount necessary to subscribe and pay for the shares of the National 
Government to the capital stock of the LEIZA shall be included in the annual General 
Appropriations Act. For LGUs, the funds shall be taken from their internal revenue 
allotment and other local funds.
SEC. 8. Principal Office of the LEIZA. - The LEIZA shall maintain its 
principal office in Tacloban City, but it may establish offices within the Philippines as 
may be necessary for the proper conduct of its business.
SEC. 9. Powers and Functions of the LEIZA. - The LEIZA shall have the 
following powers and functions:
a) To operate, administer, manage and develop the LEIZ according to the 
principles and provisions set forth in this Act;
b) To register, regulate and supervise the enterprises in the LEIZ in an efficient 
and decentralized manner, subject to the National Internal Revenue Code of 
1997, as amended;
c) To coordinate with LGUs and exercise general supervision over the 
development plans, activities and operations of the LEIZ;
d) To regulate and undertake the establishment, construction, operation and 
maintenance of public utilities, other services, and infrastructure in LEIZ such 
as light and power, shipping, barging, stevedoring, cargo handling, hauling, 
warehousing, storage of cargo, port services or concessions, piers, wharves, 
bulkheads, bulk terminals, mooring areas, storage areas, roads, 
telecommunications, transport, bridges, terminals, conveyors, water supply and 
storage, sewerage, drainage, airport operations in coordination with the Civil 
Aviation Authority of the Philippines (CAAP), and such other services or 
concessions or infrastructures necessary or incidental to the accomplishment 
of the objectives of this Act;
e) To construct, acquire, own, lease, operate and maintain on its own or through 
contracts, franchise, licenses, bulk purchase from the private or permits under 
any of the schemes allowed in Republic Act No. 6957, otherwise known as the


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"Build-Operate-Transfer Law" as amended, or joint venture, adequate facilities 
and infrastructure required or needed for the operation and development of 
the LEIZ, in coordination with appropriate national and local government 
authorities and in conformity with applicable laws thereon;
f) To approve plans, programs and projects of the LEIZ to be submitted to the 
Regional Development Council (RDC) for inclusion and inputs to the overall 
regional development plan;
g) To raise or borrow, within the limitation provided by law, and subject to the 
approval or opinion of the Monetary Board of the Bangko Sentral ng Pilipinas 
(BSP), as the case may be, adequate and necessary funds from local or foreign 
sources, to finance its projects and programs under this Act and for this 
purpose, to issue bonds, promissory notes and other forms of securities, and 
to secure the same by a guarantee, pledge, mortgage, deed of trust or an 
assignment of ail or part of its property or assets;
h) To protect, preserve, maintain and develop the forests, beaches, coral and coral 
reefs, and maintain ecological balance within the LEIZ. Notwithstanding the 
power of the LEIZA to create rules for such purpose, the rules and regulations 
of the Department of Environment and Natural Resources (DENR) and other 
government agencies involved in the above functions shall be implemented by 
the LEIZA;
i) To create, operate or contract to operate such functional units or offices of the 
LEIZA as it may deem necessary;
j) To adopt, alter and use a corporate seal, contract, lease, buy, acquire, own or 
otherwise dispose of personal and real property of whatever nature, sue and 
be sued, and otherwise carry out its functions and duties as provided for in this 
Act;
k) To issue certificates of origin for products manufactured or processed in the 
LEIZ in accordance with prevailing rules of origin and the pertinent regulations 
of the PEZA, the DTI and the Department of Finance (DOF);
l) To establish one-stop shops for the issuance of all necessary permits, 
clearances, licenses, and other similar certifications to conduct such activities 
intended to improve the ease of doing business within the LEIZ, in coordination 
with government agencies having jurisdiction over activities therein: Provided, 
That all government agencies are directed to provide and extend utmost and 
full cooperation to the LEIZA in the establishment of such one-stop shops;
m) To provide internal security to the LEIZ in coordination with the National 
Government and affected LGU. For this purpose, the LEIZA shall provide and 
establish its own internal security and firefighting forces or hire others to 
provide the same. Military forces deployed to the LEIZ by the National 
Government for the purpose of defense in times of aggression, terrorism, 
insurgency, rebellion and similar acts shall not interfere in the internal affairs


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of the LEIZ and expenditures for these military forces shall be borne by the 
National Government;
n) 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; and
o) To issue rules and regulations consistent with the provisions of this as may be 
necessary to accomplish and implement the purposes, objectives and policies 
provided herein.
SEC. 10. Board of Directors of the LEIZA. - The powers of the LEIZA shall 
be vested in and exercised by a Board of Directors, hereinafter referred to as the 
Board, which shall be composed of the following:
a) The Chairperson, who shall at the same time be the administrator of the LEIZA;
b) Four members consisting of:
1) The Governor or a duly-authorized representative from the Provincial 
Government of Leyte;
2) The mayor of the municipality covered by the ecozone;
3) One (1) representative from the investor's group; and
4) One (1) representative from among the workers in the LEIZ.
The Vice-Chairperson shall be selected from among the members of the Board.
The Governor or his representative and the Mayor of the municipality covered by 
the ecozone shall serve as ex-officio Board members, and their respective terms of 
office in the Board shall correspond to their incumbency as elected officials.
The Chairperson-Administrator and the members of the Board, except the ex- 
officio members shall be appointed by the President of the Philippines to serve for a 
term of six (6) years, unless sooner separated from service due to death, voluntary 
resignation or removal for cause. In case of death, resignation or removal for cause, 
their replacements shall serve only the unexpired portion of the respective terms.
The Chairperson-Administrator must be a Filipino citizen, of good moral character 
of proven probity and integrity, and a degree holder in any of the following fields: 
economics, business, public administration, law, management or their equivalent, and 
with at least ten (10) years relevant working experience in the field of management 
or public administration.
The members of the Board, except the ex-officio members, shall each receive per 
diem at rates to be determined by the Department of Budget and Management (DBM)


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in accordance with existing rules and regulations: 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 amount 
of per diem, the members of the Board shall receive per diem of not be more than 
Ten thousand pesos (Phpl0,000.00) for every Board meeting.
SEC. 11. Organization and Personnel. -The Board of Directors of the LEIZA 
shall provide for its organization and staff. The Board shall appoint and fix the 
remuneration and other emoluments of its officers and employees in accordance with 
existing laws on compensation and position classification. The Board shall have 
exclusive and final authority to promote, transfer, assign, reassign, or remove officers 
of the LEIZA, any provision of existing law to the contrary notwithstanding. The 
Chairperson-Administrator shall carry out the decisions of the Board.
The officers and employees of the LEIZA, including all members of the Board, 
shall not engage directly or indirectly in partisan activities nor take part in any election, 
except to vote.
No officer or employee of the LEIZA, subject to civil service laws and regulations, 
shall be removed or suspended except for cause, as provided by law.
SEC. 12. Powers and Duties of the Chairperson-Administrator. - The
Chairperson-Administrator shall have the following powers and duties:
a) To direct and manage the affairs of the LEIZA in accordance with the policies 
of the Board;
b) To establish the internal organization of the LEIZA under such conditions that 
the Board may prescribe;
c) To submit an annual budget and necessary supplemental budget to
the Board for its approval;
d) To submit within thirty (30) days after the close of each fiscal year an annual 
report to the Board and such other reports as may be required;
e) To submit to the Board for its approval, policies, systems, procedures, rules 
and regulations that are essential to the operation of the LEIZ;
f) To recommend to the Board the remuneration and other emoluments of its 
officers and employees in accordance with existing laws on compensation and position 
classification;
g) To create a mechanism in coordination with relevant agencies for the 
promotion of industrial peace, the protection of the environment, and the 
advancement of the quality of life in the LEIZ; and
h) To perform such other duties as may be assigned by the Board or which are
necessary or incidental to the office.


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SEC. 13. Legal Counsel. - The LEIZA shall have its own internal legal counsel 
under the supervision of the Government Corporate Counsel. When the exigencies of 
businesses and operations demand it, the LEIZA may engage the services of an 
outside counsel either on a case to case or fixed retainer basis.
CHAPTER IV
INCENTIVES TO ECOZONE ENTERPRISES INVESTORS
SEC. 14. Investors Visa. - Any foreign national who invests an amount of 
Two hundred thousand US dollars (US$200,000.00), either in cash and/or equipment, 
in a registered enterprise shall be entitled to an investor's visa: Provided, That the 
foreign national:
a) 
Must be at least eighteen (18) years of age;
b) 
Must not have been convicted by final judgment of a crime involving moral 
turpitude;
c) 
Must not be afflicted with any loathsome, dangerous or contagious 
disease;
d) 
Must not have been confined in an institution for any mental disorder or 
disability; and
e) 
Must be financially capable as borne out by credible and verifiable 
evidence.
A foreign national may reside in the Philippines while the investment subsists. 
To prove this, the foreign national shall submit an annual report in the form duly 
prescribed for the purpose. Should said investments be withdrawn from the 
Philippines, the investor's visa issued to said foreign national shall automatically expire 
and/or be withdrawn.
The authority to issue visas and work permits shall remain with the Bureau of 
Immigration (BI) and the Department of Labor and Employment (DOLE), respectively: 
Provided, That the BI and the DOLE shall implement measures to expedite the 
processing of such visas and permits for workers in the LEIZ and coordinate with the 
LEIZA for purpose of improving ease of doing business.
SEC.15. Fiscal Incentives. - Registered enterprises operating within the 
LEIZ may be entitled to the existing fiscal incentives provided and granted under Title 
XIII (Tax Incentives) of the National Internal Revenue Code of 1997, as amended by 
Republic Act No. 11534, otherwise known as the "Corporate Recovery And Tax 
Incentives For Enterprises Act".


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SEC. 16. Administration, Implementation and Monitoring of 
Incentives. - In the interest of enhancing transparency in the management and 
accounting of tax incentives in the LEIZ, and ensuring the proper administration, 
management, enforcement, implementation and monitoring of tax incentives, the 
LEIZ shall comply with the provisions of Republic Act No. 11534, otherwise known as 
the "Corporate Recovery And Tax Incentives For Enterprises Act.
The BOC shall set up and establish a customs-controlled area outside the 
premises of the LEIZ to facilitate payment of duties and taxes on goods entering the 
Philippine customs territory: Provided, That notwithstanding the limitations on this Act, 
the LEIZ and BOC may coordinate and jointly implement measures on border 
protection.
SEC. 17. Banking Rules and Regulations. - Banks and financial institutions 
to be established in the LEIZ shall be under the supervision of the BSP and subject to 
existing banking laws, rules and regulations.
SEC. 18. Remittances. - In the case of foreign investments, a duly registered 
entity or enterprise within the LEIZ shall have 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, subject to the provisions of 
Republic Act No. 7653, otherwise known as "The /Vew Central Bank Act as amended.
CHAPTER V
NATIONAL GOVERNMENT AND OTHER ENTITIES
SEC. 19. Supervision and Control. - For purposes of policy direction and 
coordination, the LEIZA shall be under the direct control and supervision of the Office 
of the President.
SEC. 20. Development Goals of the LEIZ. - The LEIZA shall determine the 
development goals of the LEIZ within the framework of national development plans, 
policies and goals. The Chairperson-Administrator shall, upon approval by the Board, 
submit the LEIZ plans, programs and projects to the RDC for inclusion and inputs to 
the overall regional development plan.
SEC. 21. Relationship with Local Government Units. - Except as herein 
provided, the LGUs comprising the Tacloban City Ecozone shall retain their basic 
autonomy and identity. They shall operate and function in accordance with the 
framework of the Constitution, Local Government Code of 1991, and this Act.
In case of any conflict among the LEIZA, the LGUS and the National Government 
on matters affecting the LEIZ, other than national defense and security matters, the


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decision of the LEIZA shall prevail.
SEC. 22. Audit. - The Commission on Audit (COA) shall appoint a full-time 
auditor in the LEIZA or may assign such number of personnel as may be necessary in 
the performance of their functions.
CHAPTER VI 
MISCELLANEOUS
SEC. 23. Interpretation/Construction. - The powers, authorities and 
functions that are vested in the LEIZA are intended to establish national self- 
sufficiency and self-reliance in the advancement and protection of the national 
integrity, enhancement of national security, decentralization of governmental 
functions and authority, and promotion of an efficient and effective working 
relationship among the LEIZA, the National Government and the LGUs. Any 
interpretation of this Act shall consider such intentions. In the event of conflict of 
interpretation and provided the intentions cannot be harmonized, the provisions of 
this shall be construed in favor of an interpretation that would tend to protect national 
security.
SEC. 24. Applicability Clause. - Insofar as they are consistent with the 
provisions of this Act, the provisions of Section 30 to 41 of Republic Act No. 7916, 
otherwise known as "The Special Economic Zone Act of 1995", as amended, shall 
likewise apply to the LEIZ.
SEC. 25. Transitory Provisions. - All properties, assets, funds, rights, 
obligations, and liabilities of LIDE are hereby transferred to the LEIZA except for the 
liabilities that are not properly accounted for as per the reports coming from the 
Commission on Audit, which shall be retained by the National Development Company.
The LEIZA shall carry out the transfer herein provided in a manner that will 
ensure the least disruption of ongoing operations of the LIDE. The qualified and 
necessary personnel of the LIDE shall be transferred to and absorbed by the LEIZA: 
Provided, That the tenure, rank, salaries and privileges of such personnel are not 
reduced or adversely affected. The personnel whose services are not retained by the 
LEIZA shall be granted separation pay and retirement and other benefits they are 
entitled to under existing laws, rules and regulations.
In the period prior to the actual assumption of duties by the LEIZA, all officers 
and employees of the LIDE shall continue to exercise their functions and discharge 
their duties and responsibilities. The LIDE shall be deemed abolished upon the 
organization of LEU.
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SEC. 26. Implementing Rules and Regulations. - The National Economic 
and Development Authority (NEDA), in coordination with the DTI and DOF, shall 
formulate the implementing rules and regulations of this Act within ninety (90) days 
after its approval.
SEC. 27. Separability Clause. - If any provision of this Act shall be held 
unconstitutional or invalid, the other provisions not otherwise affected shall remain in 
full force and effects
SEC. 28. Repealing Clause. - All laws, executive orders or issuances or any 
part thereof, which are inconsistent herewith, are hereby repealed or amended 
accordingly.
SEC. 28. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,