HOUSE QF REPRESENTATIVES

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Republic of the Philippin
HOUSE OF REPRESENTAT
CONGRESS OF THE PHILIP!

Quezon City, Metro Manil

SEVENTEENTH CONG!
First Regular Session

2767

RESET ATION UNIT
BILLS 2sd NUL SURVICE

House Bill No.

Introduced by Honorable REYNALDO V. UMALI

EXPLANATORY NOTE

The indispensability of greater private sector participation in
development that has given birth to Republic Act Number 6957, otherwise
known as the Build-Operate-Transfer (BOT) Law, has helped propel the
economy to unprecedented levels. Presumably, this is the same rationale of
the Aquino Administration in vigorously pursuing the so-called Public-
Private Partnership (PPP).

Nearly all capital intensive infrastructure developments, when built,
have far-reaching economic impact. These infrastructure developments are
major sources of viable returns on investment over the short, medium, and
the long term, as they are the product of well-studied project feasibility
studie

Bridges, just like roads, ports, harbors, airports, are vital links
connecting one province or region to another as in the case of the Mindoro-
Batangas Nautical Bridge-Highway Project.

This proposed measure seeks to provide for a way to link the Mindoro
Island to the Province of Batangas utilizing a 5-Kilometer concrete roadway
along Verde Island as the ground route of a nautical bridge that spans about
3,000 linear meters from Verde Island to Hlijan Il in Batangas. It is conceived
to operate by way of exacting toll charges/fees for land vehicles or oth:
road users traversing Verde Island from Mindoro to Batangas and vice vers

a.

The other strategy conceived is allowing basic industries or utilities
like water, power oil, and telecommunication facilities to complement its
operational framework to serve both Mindoro Island and the Batangas


Province. These utilities will be under contract to pay leases, rentals, or
charges for the use of the nautical bridge-highway.

It is envisioned that if the project is realized, it will trigger a kind of
chain reaction consistent with a larger development plan to boost tourism,
cause the mushrooming of economic or export processing zones, industrial
parks, and similar growth points around MIMAROPA-Batangas growth
corridor.

In the light, therefore, of the many plans of government today but
hampered by its limited resources, this proposed bill is timely and urgent as.
it secks to tap vast resources from the private sector to become a more
jive partner in high-impact infrastructure development programs.

aggres

In view of thereof, carly consideration and approval of this bill is
ly sought.

|ALDO V. U:
Representative
cond District, Province of Oriental Mindoro



Republic of the Philippines

HOUSE OF REPRESENTATIVES

CONGRESS OF THE PHILIPPINES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Se:

2767

House Bill No.

Introduced by Honorable REYNALDO V. UMALI

AN ACT PROVIDING FOR THE CONSTRUCTION, OPERATION, AND
MAINTENANCE OF THE MINDORO-BATANGAS NAUTICAL BRIDGE-
HIGHWAY, LINKING MINDORO ISLAND TO BATANGAS CITY, AND
PROVIDING FOR ITS IMPLEMENTATION UNDER THE PROVISION OF
REPUBLIC ACT NO. 6957, OTHERWISE KNOWN AS THE BUILD-
OPERATE-TRANSFER (BOT) LAW

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

SECTION 1. The Project - There is hereby created the “Mindoro-Batangas
Nautical Bridge-Highway” which shall be financed, constructed, operated
and maintained by grantee/offeror/consortium/ proponent, under, and by
virtue of Republic Act No. 6957, otherwise known as the Build-Operate
nsfer (BOT) Law. This nautical bridge-highway shall link Puerto Galera,
Oriental Mindoro to Ilijan II in Batangas City, passing through the Verde
Island.

SECTION 2. Implementing Agency. ~The Department of Public Works and
Highways (DPWH) shall be the lead implementing agency of this project.

SECTION 3. Definition of Terms. ~

(a) “Grantee/Offeror/Consortium/Proponent” ~ the private sector entity
composed of business enterprises, in association with duly-registered
banking institution, that makes public an offer to finance, construct,
operate and maintain the Mindoro-Batangas Nautical Bridge-Highway
contained in the project prospectus.

(b) “Duly registered banking institution” ~ any bank duly organized and
registered under and by virtue of Philippines laws.


(c) “Project Prospectus” ~ a document outlining in detail the project
proposal, its attendant financing scheme and the repayment system in
cither toll, rental or any other method. It shall disclose in full the
feasibility, viability and bankability of said project and shall provide
and disclose the methods, technologies and construction systems
including the full names of the owners of stockholders of the
participating, firms or corporations.

SECTION 4. Terms and Conditions. - ‘The
grantee/offeror/consortium/ proponent shall finance, construct, operate and
maintain the Mindoro-Batangas Nautical Bridge-Highway under the
following conditions:

a) The nautical bridge-highway shall be built in Puerto Galera, Oriental
Mindoro to Verde Island on the one end; and from Verde Island to
llijan II, Batangas on the other end, in accordance with the final
engineering survey and feasibility study on the project;

b) The nautical bridge-highway shall be designed in consideration of the
potential for agricultural, commercial and other structural uses, as
well as to accommodate such structures that would provide power,
water, fuel, pipelines, telecommunication or similar utilities, as may
be established with the linking of the Mindoro Island and Batangas
province;

c) Out of the toll fees to be imposed by the
grantee/offeror/consortium/proponent, and leases, rentals, or
concessions from other utilities, ten percent (10%) of the net proceeds
before corporate income tax shall be allocated to put up all-weather
structures along the bridge-highway and to reforest areas around the
Verde Island concrete roadway interconnecting the two long span
bridges;

) The grantee/offeror/consortium/ proponent shall be restricted from
securing loans from any Philippine government bank or financial
institution that may be used to finance the project;

©) The toll fees to be charged for use of the nautical bridge-highway shall
be determined by the grantee/offeror/consortium/proponent and the
Toll Regulatory Board (TRB), in accordance with tollway rules and
regulations under existing laws;

f) The grantee/offeror/consortium/ proponent may allow water, power,
fuel pipelines, telecommunications or similar utilities, subject to terms
and conditions such as leases, rentals or concessions, to link their
goods and services commercially utilizing mixed use of the nautical
bridge-highway; and

g) Fifty (50) years after the operation of said bridge-highway, the grantee
shall transfer the title, operation and maintenance of said nautical
bridge-highway to the national government.



SECTION 5. Inter-Agency Task Force. — An inter-agency task force shall be
established to evaluate the project based on criteria that primarily responds
to public benefit, public cost, overall impact to the economy, the
environment and ecological diversity, and rights and cultures of the
indigenous peoples in the area.

This inter-agency task force shall be composed of the respective
Secretaries, or their duly-appointed representatives, of the Department of
Public Works and Highways (DPWH), as the lead agency, Department of
Environment and Natural Resources (DENR), National Economic and
Development Authority (NEDA), Department of Trade and Industry (DTI),
Department of Energy (DOE), Department of Interior and Local Government
(DILG), and such other government agencies that the DPWH, as leading
agency, may utilize for the purpose.

SECTION 6. Limitation - Pursuant to Sec. 4 (d) hereof, no appropriations
shall be made to support the grantee/offeror/consortium/ proponent for
undertaking the implementation of this project, except, the defray
reasonable administrative expenses for personnel duly appointed to over
the project.

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SECTION 7. Appropriations. - The amount necessary to defray the cost of
undertaking and completing the feasibility study for this project shall be
charged against the current appropriations of the Department of Public
Works and Highways (DPWH).

SECTION 8. Repealing Clause. — All laws, decrees, orders, rules and
regulations or parts thereof inconsistent with this Act are hereby repealed or
amended accordingly.

SECTION 9. Effectivity Clause. - This Act shall take ct fifteen (15) days
after its publication in the Official Gazette or in two (2) national newspapers
of general circulation. Within one (1) month after the effectivity of this Act,
the DPWH is hereby directed to implement the project.

Approved.