EIGHTEENTH CONGRESS OF THE 
]
REPUBLIC OF THE PHILIPPINES 
]
First R eg u la r Session 
]
SENATE 
S.B. No. 
876
c ttb r a>i-crrtnrp
•19 
AUG “7 A 8 •39
In tro d u c e d  by SEN. WIN GATCHALIAN
AN ACT TRANSFERRING THE PERMANENT SEAT OF THE NATIONAL 
GOVERNMENT TO NEW CLARK CITY, PAMPANGA, CREATING A 
TRANSITORY COMMISSION, APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Metro Manila, 
the declared perm anent seat of the 
Philippine 
governm ent,1 has a daytime population of around 15 million2 people in 2015. 
It is also the m ost densely populated region in the Philippines with a 
population density of 20,785 persons per square kilom eter,3 which is m uch 
higher than th at of M umbai, Paris and Tokyo.4
Official figures from the Philippine Statistics Authority (PSA) show th at 
the metropolis had 12.88 million5 residents in 2015, a figure th at has been 
growing 1.59 percent6 annually. This m eans th at Metro M anila’s population 
is projected to reach 13.93 million in 2020 and 14.94 million in 2025. 
Meanwhile, the population in the adjoining provinces of Bulacan, Cavite,
1 Presidential Decree No. 940, June 24, 1976.
2 http:/ /worldpopulationreview.com/world-cities/manila-population/
3 https://psa.gov.ph/content/philippine-population-density-based-2015-census-population
4 Ibid, at 2.
5 Id. at 3.
6 This is the average 5-year population growth rate for 2016 to 2020 using 2015 PSA data. 
Metro Manila’s population is projected to grow on the average at 1.41% annually from 2021 
to 2025.


Laguna and Rizal in 2015 had reached 12.89 million -  pegging Mega M anila’s 
population at 25.77 million in 2015, with projections of reaching 27.89 million 
in 2020 and 29.91 million in 2025. The PSA figures do not even include 
transients, workers from surrounding provinces and foreign and local 
tourists. We can th u s surm ise th at at least 2 million people have been 
travelling every day in and out of Metro Manila.
In a study conducted by the Ja p an  International Cooperation Agency 
(JICA) in 2014, traffic volume in Metro Manila has already exceeded road 
capacities, thereby reducing travel speed of road users and increasing 
uncertainty as to distinctions and punctuality in transport operation. It stated 
that traffic dem and is at 12.8 million trips in Metro Manila and 6 million in 
the adjoining provinces of Bulacan, Rizal, Laguna and Cavite. While 69% of 
the total trips are done using the public transport, private transport takes up 
78% of the road space. Accordingly, traffic congestion has been deterring the 
function and livability of Metro Manila. The sam e study also stated th at the 
traffic congestion in the National Capital Region resulted in losses of at least 
Php 2.4 billion a day and could reach Php 6 billion a day if not solved.7 In its 
Follow-up Survey in 2017, JICA estim ated th at the Philippines loses Php 3.5 
billion daily due to traffic congestion, and it is projected to lose Php 5.4 billion 
daily to traffic by 2035 if no interventions are m ade in Metro Manila.8
For several years, the governm ent has been trying to ease traffic 
congestion in Metro Manila by building more roads and bridges and 
im plem enting various traffic policies such as the num ber coding schem e, the 
restriction against provincial buses and the “driver-only” vehicles along EDSA. 
However, these efforts are not enough to m anage the daily traffic of around 
15 million people within Metro Manila.
With our economy growing at 6% on the average and the rise of middle- 
income families who have the capacity to buy new vehicles, we need to move 
the seat of governm ent to a new place to relieve Metro Manila of its traffic and 
population congestion problems.
7https://newsinfo.inquirer.net/970553/jica-traffic-congestion-now-costs-p3-5-billion-a- 
day-metro-manila-traffic-jica-cost-of-traffic#ixzz5tRp6Y5rj
8 https:/ /cnnphilippines.com/ new s/2018/09/19/JICA-study-traffic-5-billion.html


This proposed m easure, to be known as K abisera 2030, seeks to 
transfer the perm anent seat of the governm ent from Metro Manila to New 
Clark City. Moving the perm anent seat of governm ent is not som ething new, 
and has been done in several countries including the United States, South 
Korea, Brazil, K azakhstan, and our neighbor Malaysia which moved its 
adm inistrative capital from Kuala Lum pur to the planned city of Putrajaya in 
1999.9
In the case of the Philippines, the solution lies outside Metro Manila: at 
the New Clark City located in a Clark Special Economic Zone in Capas, Tarlac. 
It is a carefully m aster planned com m unity that is strategically located in 
Central Luzon, patterned after the development of Putrajaya, and said to be 
the next big m etropolis th at can attract businessm en, workers and tourists 
away from Metro Manila. Beyond easing the congestion problem s in Metro 
Manila, the transfer of the seat of government to New Clark City is expected 
to spread development to other parts of the country, generate jobs for 
Filipinos, and help the economy achieve sustainable growth. The development 
of New Clark City is already part of President D uterte’s Build-Build-Build 
program, and is projected to contribute Php 1.57 trillion per year to the 
country’s gross dom estic product upon its com pletion.10 This 9,450-hectare 
development has already set aside 1,514 hectares for a National Government 
Administrative Center th at will house governm ent offices and its attached 
agencies. It will be the country’s first sm art, disaster-resilient and sustainable 
city th at will have a mixed use of residential, commercial, agro-industrial, 
educational institutions, and information technology developments.
New Clark City is very accessible from Metro Manila through the North 
Luzon Expressway (NLEX) and the railway projects th at are in the pipeline. It 
is near the new Clark International Airport. Its neighboring cities already have 
the infrastructure to support the massive m igration of people to Pam panga 
and Tarlac. The construction of access roads inside the city will also provide 
interconnectivity and better logistics throughout the region, which will be
9https: / / www.abc.net.au/news/2019-05-11 /jakarta-indonesia-planning-to-move-its- 
capital/11090516
10https: / / business.mb.com. ph / 2017/08/20/ re-launched-new-clark-city-set-to-complete- 
initial-phase-in-2022/


com plem ented by new toll roads in Metro Manila, such as the Skyway 
extension to Balintawak, the expansion of NLEX to the Port Area in Manila, 
the Metro Manila Subway, and other projects planned by the D epartm ent of 
Public Works and Highways and the private sector.11 In fact, there are several 
governm ent offices such as the D epartm ent of Transportation, D epartm ent of 
Science and Technology, and the D epartm ent of Public Works and Highways, 
th at are planning or have started transferring their offices to the Clark 
Freeport Zone. O ther governm ent agencies are expected to move their offices 
to Clark over the next two years to drum  up interest in the area and show the 
governm ent’s resolve to create a new center of economic activities.12
On one hand, with the transfer of the governm ent seat to New Clark 
City, we have to consider how it will affect the delivery of governm ent services, 
especially given the travel time and relocation of the employees of the affected 
governm ent offices. Based on the Inventory of Government Hum an Resources 
by the Civil Service Commission, the total num ber of governm ent personnel 
in the Executive branch in the National Capital Region as of December 31, 
2017 is 490,944 with the following composition: 331,806 career service 
professionals; 49,723 non-career personnel; and 109,415 personnel with job 
orders or contracts of service. This bill provides a framework to address the 
transition in the continuous delivery of governm ent services to the public, 
including the provision of benefits such as subsidized or low-cost housing for 
families of governm ent employees who will be relocated, free transportation 
coasters or buses, and such other benefits as may be determ ined by a 
Transitory Commission.
It is my fervent hope th at by establishing a new adm inistrative center 
at a new location like New Clark City, the opportunities to have a well-planned 
u rb an  center with m odern facilities and technology to enhance_governm ent 
efficiency and productivity will be boundless. The p assag p ^f this ^measure is 
earnestly sought.
11 https://bcda.gov.ph/clark-infrastructure-pushes-central-luzon-|Erow<jh-93
12 h ttp s://WWW.bworldonline.com/six-govt-agencies-set-to-move-to\i€w-clark-city/


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
F irs t R e g u la r Session
]
SENATE 
S.B. No. 878
of Ujf ^rcrrtn ip
•19 
AUG -7 A 8:39
"RECC7773T
In tro d u c e d  by SEN. WIN GATCHALIAN
AN ACT TRANSFERRING THE PERMANENT SEAT OF THE NATIONAL 
GOVERNMENT TO NEW CLARK CITY, PAMPANGA, CREATING A 
TRANSITORY COMMISSION, APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES
Be it enacted by the Senate and the H ouse of R epresentatives of the 
Philippines in Congress assem bled:
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Section 1. Short Title. -  This Act shall be known as “Kabisera 2030.”
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Sec. 2. Declaration of Policy. -  It is hereby declared the policy of the
4 
State to ensure efficient delivery of governm ent services through continuous
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development of its infrastructure and innovative im provem ents in the delivery
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of its services. Thus, it is imperative for the governm ent to m ake necessary
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m easures to provide and ensure sm ooth operation of governm ent processes
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and to ease congestion in its capital.
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Towards this goal, the perm anent seat of the national governm ent of
10 
the Republic of the Philippines shall be transferred so th at it can spur
11 
development in the countryside and deliver more efficient and effective
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governm ent services. Government offices in the National Capital Region shall
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function independently from the offices transferred to the new perm anent seat
14 
of the government.


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Sec. 3. Objective. -  The objective of this Act is to transfer the perm anent 
seat of the national governm ent of the Republic of the Philippines to New 
Clark City in Capas, Tarlac and separate it from the commercial and financial 
centers in Metro Manila in order to create opportunities for progress and spur 
development in the countryside, while reducing m igration, congestion, and 
urban blight in Metro Manila.
Sec. 4. Transfer of the Perm anent Seat of Government. -  The perm anent 
seat of the national governm ent of the Republic of the Philippines shall be 
fully transferred by 2030 to New Clark City in Capas, Tarlac, where the 
National Government Administrative Center shall be built.
The National Government Administrative Center shall be the new 
location of the following offices:
a) 
Office of the President;
b) Office of the Vice-President;
c) 
National governm ent agencies; and
d) Government-owned and controlled corporations.
The Office of the President, the Office of the Vice President and all other 
offices under or attached thereto (Offices), and all central offices of national 
governm ent 
agencies 
(NGAs) 
and 
government-owned 
and 
controlled 
corporations (GOCCs) th at are located in the National Capital Region (NCR) 
shall immediately take m easures to transfer to the National Government 
Administrative Center in New Clark City in order to ensure that their 
respective offices will be fully-operational and functioning by 2030.
The non-critical functions of these Offices, NGAs and GOCCs, such as 
bu t not limited to personnel, transportation, accounting, payroll, and hum an 
resources, am ong others, shall be prioritized in the said transfer. These 
Offices, NGAs and GOCCs shall ensure th at only services catering to front­
line public needs shall rem ain within the NCR in various satellite offices.
Sec. 5. Preparations Prior to Transfer. -  The national government, 
through a Transitory Commission, shall immediately take action towards the 
development and im plem entation of m asterplans, strategies and tim etables


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th at will provide the framework towards the development of New Clark City
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as the new adm inistrative center of the Philippine government. It shall be
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developed as a green sm art city equipped with the highest standard of m odem
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technology and environm ent-friendly facilities using energy-efficient and
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green infrastructure 
solutions, 
fortified with digital information and
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com m unications technology infrastm cture, and designed with effective and
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efficient transportation system s.
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Sec. 6. Provision of Integrated E-Govemment Services. -  In anticipation
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of the transfer to New Clark City and to improve effectiveness and efficiency
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in delivering governm ent services, the Transitory Commission shall include in
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its m asterplan, strategies and tim etable the establishm ent, development and
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provision of integrated E-Government Services.
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All affected Offices, NGAs and GOCCs shall immediately take m easures
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to set-up electronic and online system s to facilitate the delivery of governm ent
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services th at are acceptable to the public and are using web-based software
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developed 
by 
the 
D epartm ent 
of Information 
and 
Com m unications
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Technology, and adopt innovative ways in improving governm ent services,
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with the aim of fully-providing integrated E-Governm ent services to the public
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by 2022. These affected Offices, NGAs and GOCCs shall develop their action
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plans aligned with the m asterplan and tim etable developed by the Transitory
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Commission.
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Sec. 7. Benefits Available to Government Employees upon Transfer. -
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Government employees who shall be affected by the transfer and who will
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continue their governm ent service with the m ain office in New Clark City shall
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be accorded the following benefits by their respective offices:
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a) Subsidized or low-cost a n d /o r long-term  paym ent options for
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housing of families of governm ent employees relocated in New Clark
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City and neighboring cities;
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b) Free transportation coasters or buses to New Clark City from a local
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pick-up point within the NCR; and


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c) Such other benefits as may be determ ined by the Transitory
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Commission.
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All regular or perm anent employees who shall be affected by this Act
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shall not suffer any loss of seniority or rank or decrease in em olum ents.
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Sec. 8. Options Available to Government Employees. -  Government
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employees who shall be affected and will not transfer to the m ain office in New
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Clark City shall be given the following options as may be applicable:
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a) Transfer to attached agencies and offices of their respective agencies
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within the NCR;
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b) Special voluntary severance package other than th at provided under
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Republic Act No. 6683, otherwise known as “An Act Providing
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Benefits for Early Retirem ent and Voluntary Separation from
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Government Service”;
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c) Exemption from certain pension requirem ents, am ending for this
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purpose Section 11 (1) of Presidential Decree No. 1146, otherwise
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known as the “Revised Government Service Insurance Act of 1977”,
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as am ended, for the early separation of governm ent employees
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because of the transfer as directed under this Act; and
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d) Free retraining and reskilling program s conducted and developed by
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the Technical Education and Skills Development Authority or the
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Development Academy of the Philippines while awaiting employment
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in the NCR office of other governm ent agencies.
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Sec. 9. Creation of a Transitory Commission. -  A Transitory Commission,
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chaired by the President of the Philippines and composed of six (6) m em bers
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representing the Civil Service Commission, D epartm ent of Budget and
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M anagement, D epartm ent of Transportation, D epartm ent of Information and
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Com m unications Technology, National Housing Authority, and the Bases
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Conversion and Development Authority shall be established upon effectivity
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of this Act.
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The Transitory Commission shall have the following powers and
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functions:


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a) Lead 
and 
organize 
the 
preparation, 
development 
and
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im plem entation of m asterplans, strategies, processes and tim etable
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th at will provide the framework towards the development of New
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Clark City as the new adm inistrative center of the Philippine
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government;
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b) Facilitate and oversee the establishm ent, development and provision
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of integrated E-Governm ent Services to the public aligned with the
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m asterplan, strategies and tim etable for the transfer to New Clark
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City;
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c) Serve as oversight committee for transferring and transitioning
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Offices, NGAs and GOCCs;
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d) Determine capabilities of Offices, NGAs and GOCCs to transfer to
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New Clark City and prescribe m easures to continue or dism iss such
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transfer;
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e) Develop and approve necessary transfer and transition requirem ents
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and conditions of Offices, NGAs and GOCCs, including possible
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m odes of transfer, safety m easures, and labor standards;
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f) Determine the am ount necessaiy to im plem ent the transfer to New
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Clark City and recom mend the sam e to the President for
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incorporation in the proposed budget of the proper governm ent
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agencies;
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g) Oversee the imm ediate im plem entation of the provisions of this Act;
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h) Perform functions m entioned under the other provisions of this Act;
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and
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i) Perform such other functions as may be necessary or implied from
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the provisions of this Act.
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The Transitory Commission shall immediately convene upon approval
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of this Act and shall cease to exist upon completion and full im plem entation
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of the objectives of this Act, which shall not exceed twelve (12) years unless
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further extended by Congress.
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Sec. 10. Appropriations. -  For its first year, the am ount of Fifty Million
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pesos (Php50,000,000.00) shall be initially appropriated for the use of the


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Transitory Commission to im plem ent the provisions of this Act. For the
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succeeding fiscal years until its cessation, the Transitory Commission shall
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include the am ounts necessary for its operations and the im plem entation of
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this Act in the annual General Appropriations Act (GAA).
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The Office of the President, the Office of the Vice President and the
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NGAs shall incorporate the am ount necessary in the im plem entation of this
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Act in the annual GAA. The GOCCs shall source the am ount necessary for
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the im plem entation of this Act from their respective corporate funds in the
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corporate operating budgets approved by the D epartm ent of Budget and
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M anagement.
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Sec. 11. Transitory Provisions. -  Upon the transfer of the perm anent
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seat of governm ent to New Clark City in Capas, Tarlac by 2030, the following
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shall be in effect:
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a) Manila shall rem ain to be the capital of the Philippines and the area
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prescribed as Metro Manila under Presidential Decree No. 824 shall
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continue to be the country's commercial and financial center;
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b) The offices previously occupied by the governm ent agencies in Metro
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Manila shall be converted into their NCR Regional Offices, as m uch
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as practicable;
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c) The official residence of the President shall rem ain in the
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M alacahang Palace;
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d) Buildings, offices, and infrastructures to be vacated as a result of
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the 
relocation 
which 
have 
historical 
significance 
shall 
be
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transferred, m anaged, and m aintained by the National Historical
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Commission; and
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e) All governm ent agencies and offices shall assist and support the
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immediate and orderly im plem entation of this Act.
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Sec. 12. Implementing Rules and Regulations. -  W ithin ninety (90) days
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from the effectivity of this Act, the Transitory Commission, in consultation
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with appropriate governm ent agencies and other stakeholders, shall


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prom ulgate the necessary rules and regulations and other issuances as may 
be necessary to ensure the effective im plem entation of this Act.
Sec. 13. Separability Clause. -  If any provision of this Act is declared 
invalid or unconstitutional, the rem aining parts or provisions not affected 
thereby shall rem ain valid.
Sec. 14. Repealing Clause. -  All laws, decrees, executive orders, 
adm inistrative orders, proclam ations, rules and regulations, and issuances, 
or parts thereof which are inconsistent with the provisions of this Act, are 
hereby repealed, am ended, or modified accordingly.
Sec. 15. Effectivity. -  This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in two (2) new spapers of general 
circulation.
Approved,