NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Second Regular Session
S»enate
o{ ^u'u’ta!7’
23 JUL17 A10 *42
SENATE
S.B. No. 2^7
RECEIVED B\;
Introduced by SENATOR JOEL VILLANUEVA
AN ACT
MODERNIZING THE PHILIPPINE COAST GUARD, CREATING FOR 
THE PURPOSE THE PHILIPPINE COAST GUARD 
MODERNIZATION TRUST FUND, APPROPRIATING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Philippine Coast Guard (PCG) was established through Republic Act 
(R.A.) No. 5173 as a major unit under the Philippine Navy in 1967, and 
subsequently transferred to the Office of the President after more than two (2) 
decades. In 1998, by virtue of Executive Order No. 477, it became an attached 
agency of the then Department of Transportation and Communications (DOTC) for 
policy and program coordination.1
At present, it is governed by R.A. No. 9993, or the “Philippine Coast Guard 
Law of 2009.” Its core functions are as follows;2
a) Maritime safety, to help prevent or minimize unnecessary loss of lives 
and properties at sea;
b) Maritime security, to contribute to good order at sea through regular 
patrol and surveillance for the safety of navigation of ships, to safeguard 
ships from illegal acts, and to promote freedom of navigation;
1 Philippine Maritime Strategy. Available at https://marina.aov.ph/wp-content/uploads/2021/01/Philippine- 
Maritime-Strateqv-on-the-lmplementation-and-Enforcement-of-Relevant-IMO-lnstruments-2020-2024.pdf.
2 Philippine Coast Guard. Available at https://coastquard.qov.ph/.


c) Maritime search and rescue, to render aid to persons and vessels in 
distress, and conduct operations in marine accidents within the 
Philippine maritime jurisdiction;
d) Maritime law enforcement, to implement laws within the country’s 
maritime jurisdiction, including laws on fisheries, immigration, tariff and 
customs, forestry, firearms and explosives, human trafficking, and 
dangerous drugs, and to battle transnational crimes; and
e) Marine environmental protection, to implement and undertake measures 
as regards oil pollution, prevention, mitigation, and control through the 
conduct of monitoring and response operations.
With the Philippines having the fifth longest shoreline in the world with more 
than 36,000 kilometers of shoreline, the continuous claim to the country’s exclusive 
sovereign rights over the West Philippine Sea and other maritime territories, and 
the need for a more rigorous enforcement of the rules on seaworthiness, safety 
requirements, and manning compliance of vessels, among others, the role of the 
PCG as guardians of the Philippine archipelago is undeniable. Thus, the PCG 
requires the full support of the government in order to strengthen our maritime 
presence, including through the acquisition of top-of-the-line assets and equipment 
and capacity-building of personnel.
Thus, the bill mandates the implementation of the PCG Modernization 
Program (“Program”) over a period of fifteen (15) years covering the five (5) core 
mandates of the agency. The Program shall include components on organizational 
development of the PCG, human resources development, doctrine of development, 
infrastructure for operations and support, and equipment facilities acquisition.
In the implementation of the Program, preference shall be given to Filipino 
contractors and suppliers and secondarily, to foreign contractors or suppliers who 
will be willing and able to locate their production processes in the country, fully or 
partially. Likewise, technology transfer and capacity-building shall be key 
components in agreements or arrangements to be entered into under the Program.
Lastly, the PCG Modernization Trust Fund, to be administered by the 
Department of Transportation (DOTr), shall be established, to be used exclusively 
for the implementation of the Program, to supplement funds for all modernization 
projects to be undertaken by the PCG.
In view of the foregoing, the immediate passage of this bill is earnestly
sought.
JOELMLLANUEVA<


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23
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Second Regular Session
peltate
of til? i-Tfrrr n'j’
23 JUL17 AlO '42
SENATE
S.B. No. 2307
Introduced by SENATOR JOEL VILLANUEVA
AN ACT
MODERNIZING THE PHILIPPINE COAST GUARD, CREATING FOR 
THE PURPOSE THE PHILIPPINE COAST GUARD MODERNIZATION 
TRUST FUND, APPROPRIATING FUNDS THEREFOR, AND FOR 
OTHER PURPOSES
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 uPhilippine Coast 
Guard Modernization Act”
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State 
to develop the Philippine Coast Guard (PCG) and ensure the continued protection and 
defense of our maritime border, economy and environment. Toward this end, the 
Modernization Program under this Act shall develop and enhance the capabilities of 
the PCG to effectively perform under the following functional areas:
a) Maritime Safety:
b) Maritime Search and Rescue;
c) Maritime Security;
d) Maritime Law Enforcement; and
e) Maritime Environment Protection.
SEC. 3. Philippine Coast Guard Modernization Program. - The PCG shall 
implement the Philippine Coast Guard Modernization Program, hereinafter referred to 
as the Program, over a period of fifteen (15) years effective upon the date of approval 
of this Act: Provided, however, That the payments for the amortization of outstanding


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multi-year contracts and obligations incurred under the Program may extend beyond 
this period.
The PCG shall continue to perform its powers and discharge its functions as 
provided in Section 3 of Republic Act No. 9993, also known as the "Philippine Coast 
Guard Law of 2009."
SEC. 4. Objectives. - The Program shall be implemented in accordance with 
the following objectives:
a) Minimize, if not totally eliminate, accidents at sea;
b) Reduce the search efforts and hasten response time during search and rescue 
operations:
c) Contribute substantially to securing maritime zones and territorial waters from 
terrorism, lawlessness and other threats to national security and territory;
d) Effectively contribute to the enforcement of Philippine criminal and other special 
laws within the maritime zones and territorial waters; and
e) Minimize, if not totally eliminate, pollution in the maritime zones or areas and 
hasten response time in cases of emergencies.
SEC. 5. Components of the Program. - The Program shall have the following 
components:
a) Organization Development - The restructuring and streamlining of the PCG 
units and offices to avoid the overlapping of functions, simplify procedures and 
improve response time.
b) Human Resources - The professionalization of its human resource with 
educated, motivated, and highly skilled personnel in their respective fields of 
specialization.
c) Doctrine of Development - The rationalization system, standards, and 
procedures in the administration of the PCG shall include the generation, 
evaluation, consolidation, and formalization of doctrines; the conduct of 
periodic review and validation of doctrines through field application, testing and 
exercises: and the dissemination of approved doctrines at all levels of 
command.
d) Infrastructure Development - The basic and support system required to ensure 
that services are rendered efficiently shall include the acquisition and upgrade 
of basic and support facilities for administrative and operational services, and 
the acquisition and upgrade of basic facilities, such as aircraft command, 
control, and communication platform which are range and endurance-capable 
to continuously monitor edge of the exclusive economic zone (EEZ) with night 
navigation capability, including remote-controlled drones.


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e) Equipment and Facilities Acquisition and Modernization - The acquisition and 
upgrade of contemporary, modern, and state-of-the-art equipment and system 
to enhance the capabilities of the PCG in the performance of its mandate which 
includes the following:
1) Upgrade the vessel to a mission-specific level with a high degree of 
flexibility to perform other functional area operations. The vessel must be 
well-maintained for full operational status at least three hundred (300) days 
a year and must be interfaced with the latest cutting-edge technology for 
ease of operation;
2) Remotely operated submersibles for deep-sea search, retrieval and 
operations:
3) Weapons that are marine environment resistant and designed primarily to 
disable hostile personnel and equipment;
4) K-9 units which are capable of detecting bombs, drugs, toxic substances, 
and assisting in search and rescue (SAR) operations, among others;
5) Uninterruptible PCG internal communications that is seamlessly 
interoperable with other agencies, as well as communications with 
commercial vessels operating within the Philippine maritime zones and 
territorial waters;
6) Training equipment capable of simulating foreseeable emergencies or 
hostile situations;
7) Aids to navigation that are consistent with the standards of the International 
Association of Lighthouse Authorities:
8) Accurate and real-time monitoring and detection systems; and
9) Laboratories with technologically current equipment.
SEC. 6. Submission of the Program. - Within one hundred eighty (180) days 
from the effectivity of this Act, the PCG Commandant shall, in coordination with the 
Secretaries of the Department of Transportation (DOTr), the Department of Budget 
and Management (DBM), and the Department of Finance (DOF), submit the Program 
to the Senate of the Philippines and to the House of Representatives for information. 
The Program shall indicate the following:
a) Personnel and inventory of equipment and facilities during the various phase 
of the Program:
b) Modernization projects and activities to be undertaken, with the corresponding 
functional area, component, and phase, to which such projects relate to, 
including the major weapon and non-weapon equipment and technology 
acquisition, infrastructure construction or improvements to be made, and the 
particular objectives and components under Sections 4 and 5 respectively, of


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this Act to which such intended acquisition, construction or improvements
pertain to; and
c) Priorities, schedules, and phases of implementation of modernization projects
and activities: and
d) Estimated average cost for each modernization project to be undertaken.
SEC. 7. Multi-year Contracts. - The Secretary of the DOTr may enter into 
multi-year contracts and other agreements or arrangements subject to the approval of 
the President, and in accordance with laws, rules and regulations, under such terms 
and conditions most favorable to the government.
The Congress shall, upon issuance of a multi-year obligational authority or 
contractual authority by the DBM, make the corresponding appropriation for the 
ensuing fiscal year in payment for multi-year contracts: Provided, That the PCG and 
the DBM shall issue the implementing guidelines to ensure consistency with the 
Program and guidelines on the contracting of multi-year projects.
The Secretary of the DOTr shall submit to Congress copies of the multi-year 
contracts and other agreements or arrangements.
SEC. 8. Self-Reliance Program. - In implementing the Program, the PCG 
shall, as far as practicable, give preference to Filipino contractors and suppliers, and 
secondly to foreign contractors or suppliers willing and able to locate a substantial 
portion of, if not the entire, production process of the terms involved within the 
Philippines.
In order to generate local employment opportunities and facilitate technology 
transfer to the Philippines, the Secretary of the DOTr shall, as far as feasible, 
incorporate in each contract or agreement special foreign exchange reduction 
schemes such as countertrade, in-country manufacture, co-production, or other 
innovative arrangements or combination thereof.
The PCG shall likewise ensure that in negotiating all applicable contracts or 
agreements, provisions regarding the transfer to the PCG of the principal technology 
involved as well as the training of the PCG personnel to operate and maintain such 
equipment and technology are incorporated therein.
SEC. 9. Philippine Coast Guard Modernization Trust Fund. - There is 
hereby created a trust fund, to be known as the “Philippine Coast Guard Modernization 
Trust Fund,” to be administered by the Secretary of the DOTr in accordance with laws, 
rules and regulations. The trust fund shall be used exclusively for the Program, 
including all expenses necessary for the procurement of facilities, machineries, 
equipment, and services, and excluding salaries and allowances. The trust fund shall 
be funded out of the following;
a) Appropriations for the Program:
b) The proceeds from the sale, ease, or joint development of coast guard


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properties and lighthouse reservations, as may be authorized by Congress, 
including such immovable and other facilities as may be found therein, not 
covered by the Bases Conversion and Development Authority (BCDA), as 
provided under Republic Act No. 7227, as amended, otherwise known as the 
Bases Conversion and Development Act of 1992;
c) Shares of the PCG from the proceeds of the sale of the coast guard properties 
provided for under the Bases Conversion and Development Act of 1992;
d) The proceeds from the disposal of excess or uneconomically repairable 
equipment and other moveable properties in the PCG arsenal;
e) Funds from budgetary surplus, if any, as may be authorized by Congress 
subject to the provisions of Section 13 of this Act;
f) 
Loans, grants, bequests, or donations from local and foreign sources, 
specifically earmarked to be used for the Program;
g) Dues, fines, and penalties collected by the PCG in the exercise of its functions; 
and
h) All interest income that accrues to the trust fund.
SEC. 10. Equipment Acquisition Per Functional Area. - In order to further 
specialize PCG capabilities, equipment acquisition shall be initiated within the 
respective functional areas as mentioned in Section 2 of this Act but integrated into 
the Program to allow inter-operability and ensure a greater degree of reliability.
SEC. 11. Contract Negotiation. - The procurement process shall be governed 
by Republic Act No. 9184, otherwise known as the Government Procurement Reform 
Act, and its revised implementing rules and regulations. The procurement process 
shall be exercised by the PCG General Headquarters, unless delegated to the next 
lower-level management by the PCG Commandant.
SEC. 12. Progress Report. - The Secretary of the DOTr shall submit to the 
Office of the President and to Congress an annual report on the status of the Philippine 
Coast Guard Modernization Act Trust Fund as provided for in Section 9 of this Act, as 
well as the status of the implementation of the Program, not later than the end of the 
first quarter of the succeeding year.
SEC. 13. Appropriations. - The amount necessary to implement the 
provisions of this Act shall be sourced from the PCG Modernization Trust Fund as 
provided under Section 9 of this Act.
In addition, the annual appropriations for the Program shall include the amounts 
necessary to support the funding requirement for all modernization projects submitted 
to Congress. The funds to be appropriated shall be included in the General 
Appropriations Act under the DOTr.
SEC. 14. Implementing Rules and Regulations. - Within ninety (90) days


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from the effectivity of this Act, the PCG and the DOTr shall, in coordination with 
appropriate government agencies and other stakeholders, promulgate the rules and 
regulations to effectively implement the provisions of this Act.
SEC. 15. Separability Clause. - If any portion or provision of this Act is 
subsequently declared invalid or unconstitutional, other provisions hereof which are 
not affected thereby shall remain to be in full force and effect.
SEC. 16. Repealing Clause. - All other laws, acts, presidential decrees, 
executive orders, circulars, administrative orders, rules and regulations, and other 
issuances which are contrary to or inconsistent with any of the provisions of this Act 
are hereby repealed, amended, or modified accordingly.
SEC. 17. Effectivity. - This Act shall take effect fifteen (15) days following its 
publication in the Official Gazette or in a national newspaper of general circulation.