EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
s.B.wrATi549
'y 
c( i.j..' !&i 1,1*tan*
20 HAY 27 P12 -23
RcCl,
Introduced by Senator Richard J. Gordon
AN ACT
CREATING THE REGIONAL INVESTMENT AND INFRASTRUCTURE 
COORDINATING HUB OF CENTRAL LUZON (RICH), AND FOR OTHER 
PURPOSES
EXPLANATORY NOTE
The coronavirus pandemic has forced governments all over the world 
to freeze economic activity in order to control the spread of the virus and to 
prevent public health institutions from being overwhelmed. According to the 
NEDA report dated 19 March 2020, the hit to global growth is imminent, while 
a global recession is possibly on the horizon. Reportedly, as of March 2020, 
an estimated 2.2 million Filipinos have lost their jo(D, while more than 33,000 
firms have closed.
The coronavirus pandemic also forced us to a stark realization that 
highly congested urbanized communities, especially in the National Capital 
Region (NCR), are extremely vulnerable to epidemics and other social 
problems. Now, more than ever, the Government urgently needs a clear and 
concrete strategy and roadmap for decongestion and decentralization of 
development away from NCR. Although the full extent of the societal and 
economic trauma the coronavirus pandemic may cause is still unknown, the 
Philippine government must be proactive in adopting measures to mitigate its 
impact to our economy, and more importantly to the Filipino people. It is 
essential for the State to adopt policies that will encourage and entice 
domestic and foreign direct investments (FDIs) outside of the country's 
capital and metro cities.
Central to the Government's economic agenda is economic dynamism 
and competitiveness with increased investments, business opportunities, and 
job generation. But with competition posed by neighboring countries with


lower production costs and better incentives, especially in the export industry, 
the journey toward this goal will travel at a slow pace.
For decades, China has been edging its Asian neighbors in enticing 
foreign investors, particuiariy for their export industry, due to its increasing 
number and magnitude of economic zones with low production costs. 
However, with the US-China trade war iast year, the world saw many 
companies relocating their operations. The main beneficiaries of this are small 
countries in Southeast Asia led by Vietnam. According to the Kearney China 
Diversification Index (CDI), of the $31 billion in U.S. imports that shifted away 
from China, some 46% was absorbed by Vietnam, sometimes by the same 
Chinese suppliers who ieft the mainland.1 Vietnam exported an additional $14 
billion worth of manufactured goods to the U.S. in 2019 as a result of that 
shift.2 It has also been reported that the Japanese government will allocate 
USD 2.2 Billion out of its USD 1.1-Trilllon stimulus package to encourage Its 
manufacturers to shift production out of China and back to Japan or towards 
countries within ASEAN.
The Philippine government shouid be aggressive in attracting FDIs 
leaving China. The Government must take advantage of the strategic 
infrastructures in Central Luzon as international transportation centers 
connecting the expansive areas in Luzon to attract FDIs. Infrastructure 
aiready existing in the country, such as the interconnecting highways; 
railways in Luzon; seaports in Subic, Mariveles, Aurora, and Manila; and 
airports in Subic, Clark and Manila, when integrated and optimized effectively 
and efficiently, with vast idie lands nearby, when utilized gainfully by the 
Special Economic Zones shaii accommodate the development of agriculture, 
industry, tourism, and other enterprises.
With its strategic iocation as the gateway to Asia, accessibiiity to three 
internationai airports, expanding infrastructure faciiities, and competitive 
industriai estates and economic zones, Centrai Luzon is ready to be the next 
hub for major trade and investments. The interconnecting infrastructures 
couid serve as an economic engine of growth for Central Luzon to promote 
and encourage entrepreneurship and to create various jobs and business 
opportunities to the Fiiipino peopie.
1Rapoza, K (2020), New Data Shows U.S. Companies Are Definitely Leaving China, Forbes 
online, retrieved at:https://www.forbes.com/sites/kenrapoza/2020/04/07/new-data-shows- 
us-companies-are-definitely-leaving-china/#5fe64e8540fe on 7 May 2020.
2 Id.


During the 17th Congress, the author filed a bill seeking to create a 
Regional Investment and Infrastructure Coordinating Hub (RICH) in Central 
Luzon to entice investors and create jobs in the region, which was approved 
by both houses, but which was unfortunately vetoed. The bill would have 
optimized the use of available infrastructures, natural resources such as idle 
land, and human resources to encourage foreign and local investments 
outside the NCR, thereby dispersing industries to the countryside and 
decongesting Metro Manila. The bill also provides mechanism for government 
to attract Foreign Direct Investments (FDIs) in Central Luzon where there is 
available land for a manufacturing hub.
In view of the foregoing, the approval ot^ bill once again is urgently
sought.
Senator


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENAT 
S.B. No.
il49
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it--
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20 ^AY 27 P12 :23
REQ
Introduced by Senator Richard J, Gordon
AN ACT
CREATING THE REGIONAL INVESTMENT AND INFRASTRUCTURE 
COORDINATING HUB OF CENTRAL LUZON, AND FOR OTHER
PURPOSES
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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 'Regional 
Investment and Infrastructure Coordinating Hub of Central Luzon."
Sec. 2. Policy, - It is hereby deciared the policy of the State to 
promote enabling policies and programs that encourage entrepreneurship and 
investments in tourism, agriculture, and commercial enterprises that create 
jobs and business opportunities, increase capitai flow, release dormant 
capital, and create inclusive wealth.
The State recognizes the indispensable role of the private sector and 
the importance of establishing Special Economic or Freeport Zones in suitable 
and strategic locations and the further strengthening of the Bases Conversion 
Deveiopment Authority (BCDA), the Subic Bay Metropolitan Authority (SBMA), 
the Ciark Deveiopment Corporation (CDC), the Aurora Pacific Economic Zone 
and Freeport Authority (APECO), the Authority of the Freeport Area of Bataan 
(AFAB), the Philippine Economic Zone Authority (PEZA), and the Tourism 
Infrastructure and Enterprise Zone Authority (TIEZA) through measures that 
effectively attract foreign and domestic investments.
Pursuant to this policy, infrastructure development and optimization of 
the interconnecting highways, railways, seaports, and airports in Central 
Luzon must be maximized for the benefit of capital flow, to effectively address 
bottlenecks, and decongest Metro Manila, lay the foundation for long-term


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growth of Central Luzon, and increase the productivity of the people and their 
individual and family incomes, thereby improving the quality of life.
Sec. 3. Purposes. - This Act shall have the following purposes:
(a) 
To develop policies and programs that promote entrepreneurship 
and attract investments, thus creating more jobs and business 
opportunities for the people;
(b) 
To decongest Metro Manila by dispersing industries and 
population to Central Luzon;
(c) 
To improve the quality of life by developing sustainable 
communities where residents live near where they work, and 
where institutions such as schools and universities, hospitals, 
utilities, among others, are within close proximity;
(d) To optimize the use of the interconnecting highways and railways 
in Central Luzon; seaports in Subic, Mariveles, Aurora, and 
Manila; and airports in Subic, Clark, and Manila to serve as an 
investment corridor for Central Luzon and eventually, the whole 
country;
(e) 
To act as a catalyst for unleashing dormant capital into productive 
investments in infrastructure and industries within Central Luzon;
(f) 
To establish a platform that will encourage the local government 
units (LGUs) to partner with existing special economic or freeport 
zones in Central Luzon, that shall encourage the private and 
public sectors to establish other special economic or freeport 
zones and provide incentives to attract and maximize investments 
in infrastructure, from local and foreign business investors, 
resulting in numerous economic livelihood and employment 
opportunities for the people;
(g) To be pioneers of orderly change to strengthen the culture of 
cooperation and improve coordination among the National 
Government, LGUs, and private sectors;
(h) 
To promote, locally and internationally, and spearhead the 
integration of the BCDA, SBMA, CDC, AFAB, APECO, PEZA, TIEZA, 
and thereafter RICH, adhering to the principle of global


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competitiveness which encourages business investments that are 
focused, fast, friendly, flexible, and forward-looking, thus 
ensuring them to be self-sustaining, income-generating, and 
revenue-contributing entities;
(i) To create sustainable industrial cities and communities that 
balance economic growth and expansion, having regard to 
environmental protection and preservation, thereby balancing 
economic progress and future developments; and
G) To create 
updated, and thereby continue 
updating,
comprehensive land use plans, in coordination with the LGUs 
within Central Luzon, and incorporating the plans already created 
for the Subic - Clark and Tarlac Area for a more cohesive and 
harmonious Central Luzon Master Development Plan.
Sec. 4. Regional Investment and Infrastructure Coordinating 
Hub. - There is hereby created a Regional Investment and Infrastructure 
Coordinating Hub of Central Luzon, hereinafter referred to as the "RICH", 
which shall replace the Subic-Clark Alliance for Development Council (SCADC).
The powers of the RICH, as mentioned in Section 5 of this Act, shall be 
vested in and exercised by the Board of Directors, hereinafter referred to as 
the Board, which shall be composed, as follows:
(i) 
The President of BCDA;
(ii) 
The Chairperson and Administrator of SBMA;
(iii) The President of CDC;
(iv) The President of APECO;
(v) 
The Chairperson and Administrator of AFAB;
(vi) The Chairperson of the Regional Development Council of Region 
III;
(vii) The Director General of PEZA;
(viii) The General Manager/Chief Operating Officer of TIEZA;
(ix) One (1) member from the private sector, appointed by the 
President of the Philippines
The members mentioned in subparagraphs (i) to (viii) are considered 
as ex officio members of RICH. The Chairperson of RICH shall be appointed 
by the President, chosen among the members.


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A majority of the Board shall constitute a quorum to conduct day-to- 
day business. A member of the Board may appoint a duly authorized 
representative to attend and vote on behalf of the member. Provided that, it 
shall be in writing, duly signed by the member, and filed before the scheduled 
meeting. Provided, further. That such authority may extend beyond one (1) 
meeting, but shall be valid and effective for a period not longer than one (1) 
year at any one time.
Regular meetings shall be conducted by the Board at least once a 
month. A written notice must be given three (3) days before the scheduled 
meeting.
Members of the Board are entitled to receive commensurate and 
reasonable per diems, as may be determined by the Governance Commission 
for GOCCs (GCG): Provided, That the per diems collected per month shall not 
exceed the equivalent of four (4) meetings, except in cases of extraordinary 
circumstances.
Sec. 5. Powers and Functions. - The RICH, through its Board, shall 
be vested with the following powers and functions:
(a) 
To develop, structure, and facilitate infrastructure projects, 
particularly those that enhance national competitiveness and 
create employment and business opportunities;
(b) 
To develop robust feasibility studies supported by necessary 
technical and engineering assessment and commercial viability 
assessment for regional infrastructure projects;
(c) 
To promote, locally and internationally. Central Luzon, the 
establishment of special economic or freeport zones, and other 
development programs and projects in Central Luzon;
(d) 
To mandate the submission by the LGUs of their respective recent 
or up to date Comprehensive Land Use Plans, as well as the Land 
Use Plans already existing for the Subic-Clark-Tarlac area, and in 
consultation with all stakeholders, to evaluate, formulate, 
coordinate, and communicate a Comprehensive and Integrated 
Master Plan for Central Luzon, in accordance with Section 8 of 
this Act;


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(e) 
To coordinate the grant and administer ali fiscal and non-fiscal 
incentives provided in this Act and, including, but not limited to, 
the Foreign Investments Act, the Omnibus Investments Code, the 
Philippine Economic Zone Act of 1995, and the Bases Conversion 
and Development Art of 1992;
(f) 
To formulate clear, consistent, and predictable regulations, for the 
grant of Registration Agreements, permits/licenses or clearances 
for infrastructure projects, investments, business enterprises, sole 
proprietorships, and other endeavors. In accordance with this Act;
(g) 
To identify areas outside the jurisdiction of any special economic 
or freeport zone, and which cannot be placed within the ambit of 
the jurisdiction of any special economic or freeport zone, as 
certified by the special economic or freeport zone nearest to the 
identified areas, to consolidate/merge, purchase, develop and 
create the same, on its own or in cooperation with the affected 
LGUs, into special economic or freeport zones, new industrial 
townships, commercial and retail developments, agro-industrial 
zones, and the like;
(h) 
To construct, acquire, own, lease, operate, and maintain on its 
own or through contract, franchise, license, permit, Public-Private 
partnership, Build-Operate-Transfer or Joint Venture the required 
utilities and infrastructure facilities, including additional roads, 
bridges, airports, seaport, railroads, subways, and to fix just and 
reasonable rates, fares, charges and other prices therefor;
(i) 
To encourage earnest efforts and conciliation proceedings in 
cases of labor disputes where abuses of the management and/or 
labor will be discouraged and dealt with expeditiously and fairly;
(j) 
To coordinate and assist existing Special Economic or Freeport 
Zones in the implementation of cross border projects along and 
within the Central Luzon economic corridor, pursuant to the 
objectives of RICH;
(k) 
To generate its own revenues from among, but not limited to, 
license fees and/or application, filing and registration and 
administrative/reguiatory fees, and invest its funds and other 
assets, as it may deem proper, to achieve its purpose;


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(l) 
To raise and borrow the necessary funds from local and 
international financial institutions and to issue bonds, promissory 
notes, and other securities for that purpose and to secure the 
same by guarantee, pledge, mortgage, deed of trust or 
assignment of properties;
(m) To enter into, make, perform and carry out contracts of every 
class, kind, and description which are necessary or incidental to 
the realization of this Act with any person, firm or corporation, 
private or public, or with foreign government entities, upon prior 
approval by the President of the Philippines;
(n) 
To coordinate, formulate plans, programs and policies and 
provide assistance, and in coordination with the concerned 
department or agency, if necessary, on any matter of policy and 
ensure compliance therewith;
(o) 
To promote RICH and Central Luzon Investment Corridor to local 
and International investors;
(p) To create a Coordinating Council in each province to oversee the 
operations of the businesses and investments established within 
their respective provinces and such other functions, as may be 
delegated by a majority vote of the Board. Provided that, the 
Council shall submit a monthly report, in writing, to the Board 
containing the progress of the province and such other matters, 
as may be directed by the Board. Provided further, that the 
Council shall be composed of the Provincial Governor and two (2) 
private sector members who shall be appointed and chosen by 
the President, from among five (5) recommended individuals, 
upon majority vote of the Board;
(q) To establish subsidiaries and serve as holding company of such 
subsidiaries, if necessary and as approved by the Board;
(r) 
To exercise the right of eminent domain;
(s) 
To adopt, implement, and enforce ecological and environmental 
standards and measures for environmental pollution control and 
management;


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(t) 
To strengthen and coordinate all existing security and firefighting 
forces already established within Central Luzon and are under 
existing special economic or freeport zones, and formulate and 
implement public safety measures to ensure the safety and 
preservation of law and order within Central Luzon;
(u) To establish a "One-Stop Shop" in every province of Central Luzon 
to promote focused, fast, friendly, flexible, and forward-looking 
registration and operation of businesses and investments;
(v) 
To encourage and assist in the use of Alternative Dispute 
Resolutions such as mediation, conciliation, arbitration, or any 
combination thereof as a means of achieving speedy and efficient 
means of resolving disputes in accordance with Republic Act No. 
9285, otherwise known as the "Alternative Dispute Resolution Act 
of 2004";
(w) To coordinate and regulate utilities within the existing special 
economic or freeport zones or those created under this Act, in 
accordance with existing laws; and
(x) 
To promulgate rules and regulations and perform such other 
powers and functions as may be necessary, appropriate, or 
incidental to this Act.
Sec. 6. Supervision. - RICH shall be under the general supervision of 
the Office of the President of the Philippines.
Sec. 7. Chairperson and Chief Executive Officer (CEO). - A 
chairperson and CEO shall be appointed by the President, which shall be 
chosen from among a list of three (3) independent individuals upon a majority 
vote by the Board. Provided, That, the incumbent Executive Director of SCAD 
shall hold over until the Chairperson and CEO shall have been chosen and 
qualified: Provided, further, That, the recommended individuals chosen by 
the Board shall have at least five (5) years of work experience in 
infrastructure development, finance, administration and/or management.
The chairperson and CEO shall have the following powers and functions:
(a) 
To administer and manage the business affairs of RICH;
(b) To lead in the development and improvement of RICH and the 
Central Luzon Investment and Infrastructure Corridor Master Plan, 
as approved by the Board;


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(c) 
To promote commercial, tourism, and agriculture enterprises 
within Central Luzon including existing Special Economic or 
Freeport Zones, to encourage more investments and production, 
for domestic and international markets;
(d) 
To ensure that regulations established by RICH are enforced and 
implemented;
(e) 
To coordinate primary dispute settlements and resolutions within 
the Special Economic or Freeport Zones, Including labor disputes, 
in order to address local disputes and prevent strikes or lockouts;
(f) 
To encourage LCDs to provide Incentives to private sectors and 
entities who decide to relocate from Metro Manila to the Special 
Economic or Freeport Zones under the RICH;
(g) 
To ensure that safety and security measures are properly 
maintained within Central Luzon; and
(h) To exercise and perform such other powers, and/or functions as 
delegated or assigned by a majority vote of the Board.
Sec. 8. Central Luzon Investment Corridor Master Plan. -
Immediately within one hundred eighty (180) days upon the effectivity of this 
Act, the Board shall develop the Central Luzon Investment Corridor Master 
Plan (Master Plan) through the active participation of all stakeholders in 
planning and implementing the creation and continuous operation of an 
aggregation of Special Economic or Freeport Zones within Central Luzon,
The Master Plan shall include the provision of adequate and affordable 
housing facilities within the Special Economic or Freeport Zones to provide 
comfortable and livable homes that are easily accessible by non-motorized 
means of transportation.
The Master Plan shall be approved upon a majority vote of the Board, 
which shail contain a long-term strategy and their concomitant commitment 
to impiement the Master Plan. The Master Plan shall not be subject to 
frequent policy changes unless for key changes essential to further improve 
the productivity within the area.
Sec. 9. Responsibilities of the Local Government Units and 
Other Stakeholders. - The Master Plan shall be Implemented by RICH, 
through its Board, and it shall be the overall coordinating body in the 
implementation of the Master Pian, specificaily for projects with cross border 
locations in established Special Economic or Freeport Zones. RICH shail 
coordinate and partner with LGUs in formulating, implementing, and 
promoting the Master Plan. THE LGUs shall be responsible in coordinating
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with the Department of Environment and Natural Resources (DENR) for 
providing the zoning and the Comprehensive Land Use Plan for the Region. 
The LGUs shall assist in the identification and conversion of lands in Central 
Luzon and shall be encouraged to provide incentives to entities such as local 
tax incentives and streamlining of business permits applications, processing, 
and approval.
LGUs, in coordination with the Department of Public Works and 
Highways (DPWH) and other concerned Departments, shall ensure all 
highways, railways, airports, and seaports are in good condition and properly 
maintained.
LGUs, in coordination with registered entities, and in partnership with 
the Home Development Mutual Fund, otherwise known as Pag-IBIG Fund, 
within Central Luzon to provide housing facilities with access to power, ciean 
water and sewerage systems to workers and their families, in order to afford 
them a comfortable and livable work-life balance, at the same time 
decongesting Metro Manila and improving the traffic condition.
Private entities shall be responsible for investing and building 
infrastructure within Central Luzon which shall observe international best 
practices in industrial operations while complying with existing laws, rules and 
regulations, inciuding those intended for environmental preservation and 
protection, and protection to labor legislations. Private entities may propose 
their own Plan, as long as it is in accordance with the Master Plan, as 
described in Section 8 of this Act. The entities shall construct adequate and 
affordable housing or condominium facilities with access to electric power, 
clean water and sewerage systems to provide housing facilities to the workers 
and their families, which may be in partnership with the Pag-IBIG Fund.
Sec. 10. Registration and Avaiiment of Incentives. - Upon the 
effectivity of this Act, any person, firm, association, partnership, corporation, 
or any other form of business organization, regardless of nationality, control 
and/or ownership of the working capital thereof, that wishes to be a 
registered entity under RICH may apply for registration, in accordance with 
Section 18 of this Act and such other rules and regulations as may be 
determined by the RICH, and in accordance with the Constitution.
All export activities and investments under the Investment Priorities 
Plan (IPP), whether located inside or outside Special Economic or Freeport 
Zones, including tourism-related activities, may only be granted incentives 
under this Act.


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Sec. 11. Income Tax Holiday, - An Income Tax Holiday (ITH) may 
be administered for RICH-Registered Entities. An UH of one hundred percent 
(100%) of corporate income tax for the first ten (10) years from its 
operations, may be granted to any registered entity if the entity constructs 
adequate and affordable housing with recreational facilities and either a 
school, which provides Basic Education, university, or hospital for employees 
and/or the immediate community: Provided, That "Basic Education" shall 
mean an education intended to meet basic learning needs which lay the 
foundation on which subsequent learning can be based. It encompasses early 
childhood, elementary, and high school education: Provided, further, That the 
adequate and affordable housing facilities must have a minimum floor area of 
twenty-two square meters (22 sqm.) with sufficient electrical power, clean 
water and sewerage systems in accordance with Batas Pambansa Big. 220, 
otherwise known as "An Act Authorizing the Ministry of Human Settiements to 
Establish and Promuigate Different Leveis of Standards and Technical 
Requirements for Economic and Socialized Housing Projects in Urban and 
Rural Areas from Those Provided Under Presidential Decrees Numbered Nine 
Hundred Fifty-Seven, Twelve Hundred Sixteen, Ten Hundred Ninety-Six and 
Eleven Hundred Eighty-Five", Republic Act No. 6541 or otherwise known as 
the "National Building Code of the Phiiippines", Housing and Land Use 
Regulatory Board (HLURB) Guidelines, and other existing laws.
Upon expiry of the ITH, a five percent (5%) special tax on gross 
income earned in lieu of aii national and local taxes shall be applied and 
distributed, as follows:
(a) 
Three percent (3%) to the RICH;
(b) 
One percent (1%) shall be directly remitted by the entity to the 
treasurer's office of the municipality or city where such is located; 
and
(c) 
One-half percent (1%) shall be remitted to the National 
Government.
In addition, registered entities shall avail themselves of the following 
incentives: tax and duty free importation of raw materials, capital equipment, 
machineries, and spare parts; exemption from wharfage dues and export tax; 
impost or fees; VAT zero-rating of iocal purchases subject to BIR and RICH 
requirements; exemption from payment of local government imposts, fees, 
licenses, or taxes; and other incentives as provided under Presidential Decree 
No. 66 and Book VI of Executive Order No. 226, otherwise known as the 
"Omnibus Investment Code of 1987."
10


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The BIR shall require a registered entity availing of the ITH to secure a 
Certificate of Eligibility from the RICH and any other requirement, as 
mandated by the BIR and RICH, before submitting its Income Tax Return 
(ITR) for validation.
Failure to secure the Certification and/or to file the ITH availment for 
validation within thirty (30) days fropi the last day of each statutory filing date 
for the ITR shall cause the forfeiture of the ITH availment for the taxable 
period. 
/
Tax Credits for Eligible Infrastructure Projects. -
Subject t(VThe requirements under this section and additional guidelines 
prescribed by the Board, any person, partnership or corporation, whether for 
profit or non-profit, that incurs expenses associated with the construction of 
new, renovation or replacement of existing, infrastructure projects, as 
certified by the RICH to be eligible under this Section, is entitled to a credit 
against the tax imposed on such person or corporation, in an amount 
equivalent to thirty percent (30%) of the expenses incurred for the project, as 
approved by the Board. The tax credit is earned one (1) year upon completion 
of the construction of the infrastructure project. The tax credit may be applied 
to all national taxes including duties, value-added taxes, excise taxes, and 
income taxes, which may be due.
(a) 
Qualified Taxpayers. - The tax credit shall be given to persons, 
partnerships and corporations who: (1) are duly-registered with 
the RICH; and (2) incur expenses associated with the construction 
of infrastructure projects, as certified by the RICH.
(b) 
Eligible Infrastructure Projects. - Apart from the standards to be 
set by the RICH, infrastructure projects must meet the following 
qualifications in order to be eligible for tax credit: (1) there must 
be a public need for the infrastructure project; (2) at least fifty 
percent (50%) of the infrastructure project must be located and 
primarily dedicated for use within Central Luzon; (3) the 
infrastructure project has significant financiai, technical, 
economic, social and/or environmental merits and is valuable to 
the government from the perspective of service delivery, cost- 
effectiveness, and risk transfer, among others; (4) the 
infrastructure project will not compete or interfere with other 
existing or planned government projects, consistent with the 
achievement of the government's strategic priorities and the 
Master Pian, and can complement existing government assets or
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projects; and (5) must comply with the standards according to 
pertinent law, rules and regulations set by the DPWH and RICH, 
and as approved by the DPWH within a reasonable amount of 
time.
(c) 
Maximum Project Tax Credit - The tax credit allowed pursuant to 
this section shall not exceed Three Billion Pesos 
(PhP3,000,000,000.00) for any approved project. No project to be 
completed in phases or in multiple projects shall exceed this 
maximum amount for all phases of the project involved.
(d) 
Carry-over. - The amount of the tax credit may be carried 
forward and applied to the tax liability for ten (10) taxable years 
following the date the tax credit is awarded.
(e) 
Guarantee by the RICH. - Upon the availability of funds, the RICH 
may guarantee, on its own account, monetary obligations 
incurred in relation to the construction of infrastructure projects 
under this Section.
Sec. 13. Additional Deduction for Training and Research and 
Development Programs. - Subject to the requirements thereafter 
established by the RICH, and in coordination with the BIR, any person, 
partnership or corporation, whether for profit or non-profit, that incurs 
expenses associated with training programs and viable research and 
development programs certified by an appropriate authority that develops 
capabilities assessed to be industry critical and are approved by the Board, is 
entitled to a deduction against the five percent (5%) special tax due from 
such person or corporation, in an amount equal to fifty percent (50%) of the 
expenses incurred for said training and research and development program.
Sec. 14. Sovereign Guarantee, - In accordance with pertinent laws, 
rules and regulations, the Republic of the Philippines, through filing an 
application with RICH, shall answer for the payment of guarantee obligations 
by RICH-registered entities who place capital investments in the Region under 
the provisions of this Act: Provided, however, that the entity's assets shall 
have been first fully exhausted to satisfy its guarantee obligations. Provided 
that, at no time shall the Republic shall guarantee for an accumulated amount 
of Five Billion Pesos (PhP5,000,000,000.00) for investments contemplated 
under this Act.
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Sec. 15. General Principles on the Grant of Incentives. - The
incentive schemes set forth in this Act shall be in effect for a period of fifty 
(50) years from its effectivity. The incentives scheme shall be applicable only 
to the new areas identified and qualified, as may be approved by the RICH, 
that are not otherwise within the jurisdiction of an existing investment 
promotions agency: Provided, That, in cases where an entity is qualified to 
register with the RICH and either PEZA, TIEZA, CDC, SBMA, APECO, AFAB, or 
such other investment promotions agency, the entity may choose which 
scheme to apply: Provided further, That, the period of fifty (50) years may be 
extended for a non-extendible period of fifty (50) years or less, in cases 
where there is a need for further investment and infrastructure development 
in the region, as may be determined by the RICH, in coordination with the 
Department Of Trade and Industry (DU).
Sec. 16. Existing Registered Entities. - Entities registered with 
PEZA, TIEZA, CDC, SBMA, APECO, and AFAB under existing laws, rules and 
regulations shall continue to be entitled to the incentives under the similar 
terms and conditions provided therein. However, in cases where the 
registered entity constructs adequate and affordable housing facilities, in 
accordance with Section 11 of this Act, the entity may register with the RICH 
and shall be qualified to avail itself of the incentives provided herein, in 
accordance with existing laws, rules and regulations as may be approved by 
the RICH.
Sec. 17. Revocation of Registration Agreement. -The Board may 
automatically revoke the Registration Agreement of any entity which violates 
any of RICH rules and regulations, including, but not limited to, submitting 
false or fraudulent documents, declaring any false material information in 
connection with its application, or any other act as may be determined by the 
Board, and upon substantial proof. For purposes of this Act, "Registration 
Agreement" shall refer to the final agreement executed by RICH and the 
registered entity setting forth the terms and conditions for the latter's 
operation of business or engagement in economic activity.
Sec. 18. nOne-Stop Shop". - Upon the effectivity of this Act, a "One- 
Stop Shop" shall be established for entities that wish to be registered and/or 
are registered with PEZA, TIEZA, CDC, SBMA, APECO, AFAB, and RICH. The 
"One-Stop Shop" shall facilitate the registration, operation, and maintenance 
of entities in Central Luzon. The RICH, PEZA, TIEZA, CDC, SBMA, APECO, 
AFAB, and other appropriate government agencies which are involved in 
registering, licensing, or issuing Registration Agreements and other permits to 
investors shall coordinate and, if necessary, assign a representative in every
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"One-Stop Shop" to attend to investor's requirements and applications. The 
"One-Stop Shop", in coordination with the agencies, shall maintain database 
and fully interactive website for online transactions and shall act upon all 
applications within three (3) business days upon completion and submission 
of requirements.
For this purpose, a "One-Stop Shop" refers to a center established, in 
accordance with this Act, where a single common site or location is 
designated for all concerned agencies in the registration, licensure, and 
issuance of permits to entities that wish to register and operate within Central 
Luzon: Provided, That each province shall establish Its own "One-Stop Shop" 
to facilitate the ease of doing business in the Region.
Sec. 19. Eminent Domain. - The areas comprising the Special 
Economic or Freeport Zones may be expanded or reduced when necessary. 
For this purpose, RICH shall have the power to acquire, either by purchase, 
negotiation or condemnation proceedings, any private lands within or 
adjacent to the Zones for:
(a) 
Consolidation of lands for zone development purposes and 
infrastructure projects;
(b) 
Acquisition of right of way to the zones; and
(c) 
The protection of watershed areas and natural assets valuable to 
the prosperity of the zones.
In the establishment of a publicly-owned Special Economic or Freeport 
Zone, any person or group of persons who has been occupying a parcel of 
land within the Zone has to be evicted, RICH shall provide the person or 
group of persons concerned with just compensation: Provided that, in the 
case of displaced agrarian reform beneficiaries, they shall be entitled to the 
benefits under the Comprehensive Agrarian Reform Law, including but not 
limited to Section 3 of Republic Act No. 3844, in addition to a home lot in the 
relocation site and preferential employment in the project being undertaken.
Sec. 20. Land Reciassification and Conversion. - Agricultural 
lands may be reclassified and converted for residential, commercial, industrial, 
and other non-agricultural purposes, subject to the comprehensive land use 
plans and the Master Plan, as approved by RICH.
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Sec. 21. Presidential Land Grant - The provisions of any existing 
iaw to the contrary notwithstanding, the President may, upon the 
recommendation of the DENR Secretary, grant by donation, sale, lease or 
otherwise, to RICH portions of land of the public domain as may be 
necessary for utilization or expansion of Special Economic or Freeport Zones 
in Central Luzon for the increased efficiency of its performance and the 
accomplishment of its purpose which is to become the "Engine of Growth 
for Central Luzon and the Philippines".
Sec. 22. Coordination. - The BCDA, SBMA, CDC, APECO, AFAB, 
PEZA, TIEZA, and the Board of Investments (BOI), as well as the special 
economic or freeport zones which may thereafter be established in Central 
Luzon, shall be in close coordination with RICH, for purposes of domestic and 
foreign promotion, policy direction, and ease of doing business.
Sec. 23. Utilities and Other Services. - RICH may undertake and 
regulate the establishment, operation, and maintenance of utilities, such as 
electric power supply and such other services within Central Luzon and fix just 
and reasonable fees, rates and charges, and other forms of pricing in 
connection thereof, in accordance with existing laws, rules and regulations.
Sec./^. Appropriation. - The amount equivalent to Six Hundred 
Million Pes(^(P600,000,000.00), for the first three (3) years of its operations, 
at Two 'Hundred Million (P200,000,000.00) per year, is appropriated for the 
organization, operation, and management of RICH which shall be included in 
the annual General Appropriation Act (GAA). Thereafter, RICH may, on its 
own, maintain its operation and management through its acquired earnings 
from the first three (3) years of its operations.
Sec. 26. Personnel. - The Board shall provide for an organizational 
chart of officers and employees, as may be deemed necessary, in 
coordination with the Department of Trade and Industry (DTI), and fix a 
compensation plan consisting of the salaries and benefits thereof. Provided, 
that the compensation plan shall be comparable with the prevailing 
compensation plans in CDC, SBMA, APECO, AFAB, TIEZA, and PEZA. Provided 
further, that the compensation plan shall be subject to review by the Board in 
no more than once every two (2) years.
RICH shall be exempt from existing laws, rules, and regulations on 
compensation, position classification, and qualification standards.
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Sec. 27. Legal Counsel. - Without prejudice to the hiring of an 
outside counsel, the Office of the Government Corporate Counsel (OGCC) 
shall be the ex officio legal counsel of RICH. In the event that highly 
specialized legal services cannot be provided for by OGCC, as may be 
required, the services of an outside counsel, whose compensation shall be 
approved by the Board, may be engaged and no further consent or approval 
of OGCC shall be required.
Sec. 28. Injunctions or Restraining Orders. - The implementation 
of the provisions of this Act is of national interest. Thus, no project, bidding, 
and undertaking in implementation of the provisions of this Act shall be 
restrained or enjoined by an injunction or restraining order except by the 
Supreme Court of the Philippines.
Sec. 29. Implementing Rules and Regulations. - The Secretaries 
of the Department of Finance (DOF) and the DTI, in coordination with the 
Secretaries of DPWH, DENR, National Economic and Development Authority 
(NEDA) Director-General, Commissioners of the BIR and Bureau of Customs 
(BOC), and heads of SBMA, CDC, BCDA, PEZA, APECO, AFAB, and TIEZA, 
shall, within one hundred twenty (120) days from the effectivity of this Act, 
promulgate rules and regulations to faithfully implement the intent and 
provisions of this Act: Provided, That the failure of the Secretaries of the DOF 
and DTI to promulgate the rules and regulations shall not prevent the 
implementation of this Act upon its effectivity.
Sec. 30. Repealing Clause. - All laws, decrees, executive orders, 
rules and regulations or other issuances or parts thereof inconsistent with the 
provisions of this Act are hereby repealed or modified accordingly.
Sec. 31. Separability Clause. - If any portion or provision of this Act 
is declared unconstitutional, the remainder of this Act or any provision not 
affected thereby shall remain in full force and effect.
Sec. 32. Effectivity. - This Act shall take effect fifteen (15) days after 
the completion of its publication either in the Official Gazette or in a 
newspaper of general circulation in the Philippines.
Approved,
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