1 
Republic of the Philippines 
House of Representatives 
Constitution Hills, Batasan Complex, Quezon 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. _______ 
Introduced by Representative ROMEO S. MOMO, SR. 
Explanatory Note 
This measure seeks to establish a special economic zone and free port in Surigao Del 
Sur and create a Surigao Del Sur Economic Zone and Freeport Authority to manage and 
operate the zone and port once it is established. 
This initiative supports the goal of the government in persuading investors to spark 
economic activity leading to the creation of jobs and increased production in the area. 
This new platform is designed to prompt growth by boosting rural development and 
increased economic activity not only for the people of Surigao Del Sur but also for the 
hardworking residents of neighboring provinces and regions. The establishment of a special 
economic zone and freeport in Surigao Del Sur will further support development initiatives in 
the Mindanao region. 
As a province, Surigao Del Sur has a population of 642,255 based on its 2020 census. 
It is located in the northeastern coast of Mindanao facing the Pacific Ocean and has a total 
land area of 4,932.70 square kilometers or 1,904.53 square miles. Surigao del Sur is divided 
into three hundred nine (309) barangays, seventeen (17) municipalities, two (2) cities, two (2) 
congressional districts. 
Surigao del Sur is endowed with substantial quantities of metallic and non-metallic 
minerals.  Among the metallic minerals are copper, gold, chromite, cobalt, nickel and lead 
zinc. The non-metallic minerals include limestone, coal and feldspar, clay diatomite/bentonite 
and coarse/fine aggregates.  To date, almost 15,265.65 hectares is being explored for gold, 
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17,524.22 hectares for nickel and 2,320.09 hectares for Chromite. 
The agricultural products in the province of Surigao del Sur are rice, corn, coconut, 
abaca, and fish. According to Fertilizer and Pesticide Authority, Surigao del Sur has a total 
land area of 523,050 hectares wherein 214,032 is dedicated to agriculture where in its major 
crops are coconut as well as rice, corn, abaca as their primary crops and high-value 
commercial crops like as banana, coffee, and durian as their secondary produce. 
The geographical location of the province provides the abundance of aquamarine 
fisheries resources. The major marine commodities of the province include milkfish, 
seaweeds, mudcrabs, frigate tuna, yellowfin tuna and skipjack tuna. Surigao del Sur, is 
quickly becoming an important tourist destination because of its enigmatic and breathtaking 
tourist attractions and is considered as one of the Philippines’ top hidden gems. It has 
spectacular landscapes defined by its waterfalls, beaches, rivers, and islands. 
Surigao del Sur, as one of the most promising areas in the country is expected to 
become a magnet for foreign investments by offering a competitive advantage due of its 
strategic location. It allows the province to act as the hub for trade and commerce for the 
adjacent provinces of Surigao del Norte, Davao Oriental, and Agusan del Sur. 
Given the province’s multi-dimensional potential, this representation suggest the 
establishment of a special economic zone and free port in the Municipality of Cagwait, 
Surigao del Sur. The Surigao del Sur coastline provides the optimal capabilities to aid the 
success of the proposed special economic zone. 
With this legislative action, the province is expected to develop rapidly into a self-
sustaining industrial, commercial, financial, and investment center. The creation of the 
Special Economic Zone and Freeport is earnestly recommended to foster economic growth 
in the country’s southern region. 
In view of the foregoing, the passage of this bill is earnestly sought. 
ROMEO S. MOMO, SR. 
1st District of Surigao del Sur 


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Republic of the Philippines  
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 
Introduced by: HON. ROMEO S. MOMO, SR. 
AN ACT  
ESTABLISHING THE SURIGAO DEL SUR SPECIAL ECONOMIC ZONE AND  
FREEPORT IN THE MUNICIPALITY OF CAGWAIT, PROVINCE OF SURIGAO DEL 
SUR AND  
PROVIDING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
CHAPTER I  
GENERAL PROVISIONS 
SECTION 1. Short Title. — This Act shall be known as the "Surigao del Sur 
Special Economic Zone Act." 
SECTION 2. Declaration of Policy. — It is declared the policy of the State to 
encourage, promote and accelerate the sound and balanced industrial, economic 
and social development of the country. The establishment of special economic zones 
shall attract legitimate and productive foreign investments in strategic locations in the 
country. It shall generate employment and increase productivity and individual, as well 
as family incomes, thereby enhancing the quality of life of the Filipino people. 
CHAPTER II  
CREATION OF THE ECONOMIC ZONE AND FREEPORT 
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SECTION 3. Creation of the Surigao del Sur Special Economic Zone. — In 
accordance with the foregoing declared policy and subject to the concurrence of the 
affected Local Government Unit of Surigao del Sur, there is hereby established a 
Special Economic Zone, hereinafter referred to as the Surigao del Sur Ecozone. 
The Surigao del Sur Ecozone shall cover the Bituagan West Agro-Industrial Economic 
Zone that is located at Brgy. Bituagan West, Cagwait, Surigao del Sur with a total area 
of 104.16 hectares. The specific metes and bounds of the Surigao del Sur Ecozone shall be more 
particularly defined in a presidential proclamation that shall be issued for this purpose: Provided, 
That the lands embraced therein shall be public lands and contiguous to one another. 
SECTION 4. Creation of the Surigao del Sur Special Economic Zone and 
Freeport Authority, — There is hereby created a body corporate to be known as the "Surigao 
del Sur Special Economic Zone Authority" hereinafter referred to as the SDSEZA, which shall 
manage and operate the Surigao del Sur Ecozone, in accordance with the provisions of this Act. 
It shall be organized within one hundred eighty (180) days after the effectivity of this Act. 
SECTION 5. Governing Principles. — The Surigao del Sur Special Economic 
Zone shall be managed and operated by the Surigao del Sur Special Economic Zone and Authority 
hereinafter referred to as SDSEZA, created under Section 4 of this Act, under the following principles: 
a) Within the framework and limitations of the Constitution and applicable provisions of the Local 
Government Code, the Surigao del Sur Ecozone shall be developed into and operated as 
a decentralized, self-reliant and self-sustaining industrial, commercial/trading, agro-
industrial, tourist, banking, financial and investment center with suitable residential areas; 
b) The Surigao del Sur Ecozone shall be equipped with transportation, telecommunications and 
other facilities needed to attract legitimate and productive investments, generate linkage 
industries and employment opportunities for the people of the Cagwait and its neighboring 
towns and city. 
c) The Surigao del Sur Ecozone may establish mutually beneficial economic relations with other 
entities or enterprises within the country or, subject to the administrative guidance of the 
Department of Foreign Affairs (DFA), the Philippine Economic Zone Authority (PEZA), and/or 
the Department of Trade and Industry (DTI), with foreign entities or enterprises; 
d) Foreign citizens and companies owned by non-Filipinos in whatever proportion may set 
up enterprises in the Surigao del Sur Ecozone, either by themselves or in a joint venture with 
Filipinos in any sector of industry, international trade and commerce within the Surigao del Sur 
Ecozone; 
e) The Surigao del Sur Ecozone shall be managed and operated as a separate customs 
territory thereby ensuring the free flow or movement of goods and capital within, into, and out of 
its territory, and shall likewise provide incentives such as tax and duty-free importations of raw 
materials, capital and equipment to registered enterprises located therein. However, exportation 
or removal of goods from the territory shall be subject to customs duties and taxes under 
the Customs and Tariff Code and other relevant tax laws of the Philippines; 


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f) The areas comprising the Surigao del Sur Ecozone may be expanded or reduced when 
necessary. For this purpose, the SDSEZA, in consultation with the LGUSs, shall have the 
power to acquire either by purchase, negotiation or condemnation proceedings, any 
private land within or adjacent to the Surigao del Sur Ecozone for the following purposes: (1) 
consolidation of lands for zone development; (2) acquisition of right of way to the Surigao del Sur 
Ecozone; and (3) the protection of watershed areas and natural assets valuable to the 
prosperity of the Surigao del Sur Ecozone; 
g) 
Goods manufactured by a Surigao del Sur Ecozone enterprise shall be made available for 
immediate retail sale in the domestic market, subject to the payment of corresponding 
taxes on raw materials and other regulations that may be formulated by the SDSEZA 
together with the PEZA, the Bureau of Customs (BOC) and the DTI. However, in order to 
protect domestic industries, a Negative List of Industries shall be drawn up and regularly 
updated by PEZA. Enterprises engaged in industries included in such Negative List shall 
not be allowed to sell their products locally; 
h) 
The defense of the Surigao del Sur Ecozone and the security of its perimeter fence 
shall be the responsibility of the national government in coordination with the SDSEZA and 
the LGUs. 
Section 6. Capitalization. — The SDSEZA shall have an authorized capital stock 
of Fifty Billion (50,000,000,000) no par shares at a minimum issue of Ten Pesos (P10.00) each the 
majority shares of which shall be subscribed and paid for by the National Government and the 
LGUs embracing the Surigao del Sur Special Economic Zone. The Board of Directors of the SDSEZA 
may, with the written concurrence of the Secretary of Finance, sell shares, representing not more 
than forty per centum (40%) of the capital stock of the SDSEZA to the general public under such 
policy as the Board and the Secretary of Finance may determine. The National Government and 
the LGUs shall in no case own less than sixty per centum (60%) of the total issued and outstanding 
capital of the SDSEZA. 
The amount necessary to subscribe and pay for the shares of the National Government to the 
capital stock of SDSEZA shall be included in the annual General Appropriations Act. For the 
LGUs concerned, the funds shall be taken from their internal revenue allotment and other local funds. 
SECTION 7. Principal Office of SDSEZA. — The SDSEZA shall maintain its principal 
office in the Municipality of Cagwait, but it may establish branches within the Philippines as may be 
necessary for the proper conduct of its business. 
 
SECTION 8. Powers and Functions of the SDSEZA. — The SDSEZA shall have the 
following powers and functions: 
a) To operate, administer, manage and develop the Surigao del Sur Ecozone according to the 
principles and provisions set forth in this Act; 
b) To register, regulate and supervise the enterprises in the Surigao del Sur Ecozone in an 
efficient and decentralized manner, subject to existing laws; 


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c) To coordinate with LGUs and exercise general supervision over the development 
plans, activities and operations of the Surigao del Sur Ecozone; 
d) To regulate and undertake the establishment, construction, operation and maintenance of 
public utilities, other services, and infrastructure in the Surigao del Sur Ecozone such as 
light and power, shipping, barging, stevedoring, cargo, handling, hauling, warehousing, 
storage of cargo, port services  or concessions,  piers, wharves, bulkheads,  bulk 
terminals, mooring areas, storage areas, roads, telecommunications, transport, bridges, 
terminals, conveyors, water supply and storage, sewerage, drainage, airport operations 
in coordination with the Civil Aviation Authority of the Philippines and such other services or 
concessions or infrastructure necessary or incidental to the accomplishment of the objectives 
of this Act; 
e) To construct, acquire, own, lease, operate and maintain on its own or through contracts, 
franchises, licenses, bulk purchase from the private sector or permits under any of the 
schemes allowed in Republic Act No. 6957, otherwise known as the Build-Operate-
Transfer Law, as amended, or joint venture, adequate facilities and infrastructure required 
or needed for the operation and development of the Surigao del Sur Ecozone, in 
coordination with the appropriate national and local government authorities and in conformity 
with applicable laws thereon; 
f) To approve plans, programs and projects of the Surigao del Sur Ecozone pursuant to 
Chapter II, Section 3 of this Act, to be submitted to the Regional Development Council 
for inclusion and inputs to the overall regional development plan; 
g) To operate on its own, either directly or through licenses to others, tourism-related 
activities, including games, amusements, recreational and sports facilities; 
h) To raise or borrow, within the limitation provided by law, and subject to the approval or opinion 
of the Monetary Board of the Bangko Sentral ng Pilipinas (BSP), as the case may be, 
adequate and necessary funds from local or foreign sources, to finance its projects and 
programs under this Act and for this purpose, to issue bonds, promissory notes and other 
forms of securities, and to secure the same by a guarantee, pledge, mortgage, deed of trust 
or an assignment of all or part of its property or assets; 
 
 
i) 
To protect, preserve, maintain and develop the forests, beaches, coral and coral reefs, and 
maintain ecological balance within the Surigao del Sur Ecozone. Notwithstanding the 
authority of the SDSEZA to create rules for such purpose, the rules and regulations of the 
Department of Environment and Natural Resources (DENR) and other government 
agencies involved in the above functions shall be implemented by the SDSEZA; 
j) 
To create, operate and/or contract to operate such functional units or offices of the 
SDSEZA as it may deem necessary. 
k) To adopt, alter and use a corporate seal; contract, lease, buy, acquire, own or otherwise 
dispose of personal and/or real property of whatever nature; sue and be sued; and otherwise 
carry out its functions and duties as provided for in this Act; 


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l) To issue certificates of origin for products manufactured or processed in the Surigao del Sur  
Ecozone in accordance with prevailing rules  of origin  and the pertinent regulations of the 
PEZA, the DTI and/or the Department of Finance (DOF); 
m) To establish one-stop shops for the issuance of all necessary permits, clearances, 
licenses, and other similar certifications to conduct such activities intended to improve 
the ease of doing business within the Surigao del Sur Ecozone, in coordination with 
government agencies having jurisdiction over activities therein: Provided, That all 
government agencies are directed to provide and extend utmost and full cooperation to the 
Surigao del Sur Ecozone in the establishment of such one-stop shops; 
n) To provide internal security to the Surigao del Sur Ecozone in coordination with the National 
government and affected LGU. For this purpose, the SDSEZA shall provide and 
establish its own internal security and firefighting forces or hire others to provide the same. 
Military forces to be assigned by the National Government for national defense purposes 
shall not interfere in the internal affairs of the Surigao del Sur Ecozone and expenditures 
for these military forces shall be borne by the National Government; 
o) To exercise such powers as may be essential, necessary or incidental to the powers 
granted to it hereunder, as well as those that shall enable it to carry out, implement and 
accomplish the purposes, objectives and policies of this Act; and 
p) To issue rules and regulations consistent with the provisions of this Act as may be necessary 
to accomplish and implement the purposes, objectives and policies provided herein. 
 
SECTION 9. Board of Directors of the SDSEZA. - The powers of the SDSEZA shall 
be vested in and exercised by a Board of Directors, hereinafter referred to as the Board, which shall 
be composed of the following: 
 
a) The Chairperson, who shall at the same time be the administrator of the SDSEZA; 
b) Four (4) members consisting of: 
1) The Governor or a representative from the provincial Government of Surigao del Sur; 
2) One of the mayors of the municipalities covered by the ecozone; 
3) One (1) representative from the investors' group; 
4) One (1) representative from among the workers stationed in the Surigao del Sur 
Ecozone. 
The Vice-Chairperson shall be selected from among the members of the Board. 
The representative from the Provincial Government and the mayors of the municipalities 
covered by the ecozone shall serve as ex-officio members of the Board, whose term in the Board 
corresponds to their term as elected officials. 


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The Chairperson and the members of the Board, except the ex-officio members, shall be 
appointed by the President of the Philippines to serve for a term of six (6) years, unless sooner 
separated from service due to death, voluntary resignation or removal for cause. In case of 
death, resignation or removal for cause, their replacement shall serve only the unexpired portion of the 
respective terms. 
The Chairperson of the Board must be a Filipino citizen, of good moral character, of proven 
probity and integrity, and a degree-holder in any of the following fields: economics, business, public 
administration, law, management or their equivalent, and with at least ten (10) years relevant working 
experience preferably in the field of management or public administration. 
The members of the Board, except the ex-officio members, shall each receive per diem 
at rates to be determined by the Department of Budget and Management (DBM) in accordance with 
existing rules and regulations: Provided, however, That the total per diem collected each month 
shall not exceed the equivalent per diem for four (4) meetings. Unless and until the President of the 
Philippines has fixed a higher per diem for the members of the Board, such per diem shall not be 
more than ten thousand pesos (P10,000.00) for every Board meeting. 
SECTION 10. Organization and Personnel. — The Board of Directors of the 
SDSEZA shall provide for its organization and staff. The Board shall appoint and fix the remuneration 
and other emoluments of its officers and employees in accordance with existing laws on 
compensation and position classification. The Board shall have exclusive and final authority to 
promote, transfer, assign, reassign, or remove officers of the SDSEZA, any provision of existing 
law to the contrary notwithstanding. The Chairperson-Administrator shall execute the decisions 
of the Board. 
The officers and employees of the SDSEZA, including all members of the Board, shall not 
engage directly or indirectly in partisan activities nor take part in any election. 
No officers and employees of the SDSEZA, subject to civil service laws and regulations, 
shall be removed or suspended except for cause, as provided by law. 
SECTION 11. Powers and Duties of the Chairperson-Administrator. — The 
Chairperson-Administrator shall have the following powers and duties: 
a) To direct and manage the affairs of the SDSEZA in accordance with the policies of the 
Board; 
b) To establish the internal organization of the SDSEZA under such conditions that 
the Board may prescribe; 
c) To submit an annual budget and necessary supplemental budget to the Board for its 
approval; 
d) To submit within thirty (30) days after the close of each fiscal year an annual report to the 
BOARD and such other reports as may be required; 


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e) To submit to the Board for its approval, policies, systems, procedures, rules and 
regulations that are essential to the operation of the Surigao del Sur Ecozone; 
f) To recommend to the Board the remuneration and other emoluments of its officers and 
employees in accordance with existing laws on compensation and position classification; 
g) To create a mechanism in coordination with relevant agencies for the promotion of 
industrial peace, the protection of the environment, and the advancement of the quality of life 
in the Surigao del Sur Ecozone; and 
h) To perform such other duties as may be assigned by the Board which are necessary or 
incidental to the office. 
SECTION 12. Legal Counsel. — The SDSEZA shall have its own internal legal counsel 
under the supervision of the government corporate counsel. When the exigencies of its businesses 
and operations demand it, the SDSEZA may engage the services of an outside counsel either on a 
case to case or on a fixed retainer basis. 
 
 
CHAPTER III  
INCENTIVES TO ECOZONE ENTERPRISES/INVESTORS 
SECTION 13. Investor's Visa. — Any foreign national who invests an 
amount of two hundred thousand US dollars (US$200,000.00) either in cash and/or 
equipment, in a registered enterprise shall be entitled to an investor's visa: Provided, That the 
foreign national has the following qualifications: 
a) Must be at least eighteen (18) years old; 
b) Must not have been convicted by final judgment of a crime involving moral turpitude; 
c) Must not be afflicted with any loathsome, dangerous or contagious disease; 
d) Must not have been institutionalized for any mental disorder or disability; and 
e) Must establish by verifiable and credible evidence one's financial capability and capacity. 
As a holder of an investor's visa, an alien shall be entitled to reside in the Philippines while the 
investment subsists. For this purpose, the alien should submit an annual report, in the form duly 
prescribed for the purpose, to prove that the investment in the country subsists. Should said 
alien withdraw the investments from the Philippines, then the investor's visa issued to said alien 
shall automatically expire and/or be withdrawn. 
The authority to issue visas and work permits shall remain with the Bureau of Immigration (BI) 
and the Department of Labor and Employment (DOLE), respectively; Provided, That the BI 
and the DOLE shall implement the measures to expedite the processing of such visas and permits 
for workers in the Surigao del Sur Ecozone and coordinate with the SDSEZA for the purpose of 
improving ease of doing business. 


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SECTION 14. Fiscal Incentives. — Registered enterprises operating within the 
Surigao del Sur Ecozone may be entitled to the existing pertinent fiscal incentives as provided for under 
Republic Act No. 7916, as amended by Republic Act No. 8748, also known as the Special Economic 
Zone Act of 1995, or those provided under Executive Order No. 226, as amended, otherwise known 
as the Omnibus Investment Code of 1987; and/or those that may be further granted as the need and 
necessity arises by the appropriate government department, agency or office: Provided, That 
in the administration, implementation and monitoring of incentives, the SDSEZA may impose 
its own conditions not otherwise prohibited by this Act: Provided further, That the SDSEZA shall 
not be limited to the conditions provided under Republic Act No. 7916, Republic Act No. 8748 or any 
other related issuance, rule, or regulation. 
 
 
SECTION 15. Imposition of a Tax Rate of Five Percent (5%) on Gross 
Income Earned. — No taxes, local and national, shall be imposed on business 
establishments operating within the Surigao del Sur Ecozone, including income, withholding, donor's, 
percentage, and documentary stamp taxes. In lieu thereof, and subject to Section 18 of this Act, 
said business establishments shall pay a five percent (5%) final tax on their gross income earned; 
Provided, That the proceeds from such final tax shall be shared by instrumentalities of the 
government in accordance with the following percentages: 
a) Three per centum (3%) to the National Government; 
b) Two per centum (2%) shall be directly remitted by the business establishments to the 
treasurer's office of the municipality or city where the enterprise is located. 
The SDSEZA shall have the authority to grant income tax holiday and net operating loss carry 
over subject to Section 17 of this Act and conditions as it may have imposed pursuant to Section 
14 of this Act. 
SECTION 16. Administration, Implementation and Monitoring of 
Incentives. — For the proper administration, implementation and monitoring of tax incentives provided 
under this law, the following are herein mandated: 
a) The SDSEZA shall be responsible for the administration, management, enforcement and 
implementation of the incentives granted to registered enterprises: Provided, That the BOC 
shall set up and establish a customs controlled area outside the gate of the Surigao del 
Sur Ecozone to facilitate payment of taxes on goods entering the Philippine customs 
territory: Provided further, That notwithstanding the limitations in this Act, the SDSEZA and 
BOC may coordinate and jointly implement measures on border protection; and 
b) In the interest of enhancing transparency in the management and accounting of tax 
incentives in the Surigao del Sur Ecozone, the SDSEZA shall comply with the provisions of 
Republic Act No. 10708, otherwise known as "The Tax Incentives Management and 
Transparency Act (TIMTA)" and its implementing rules and regulations. 
SECTION 17. Duration of Incentives. — Fiscal incentives under this Act shall be 
terminated after a cumulative period of twenty (20) years from date of registration or start of 
commercial operation, whichever is applicable, except that it could be extended with regard to 


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industries deemed indispensable to national development and interest. The industries exempted from 
this provision shall be determined by the SDSEZA, in consultation with other government agencies. 
SECTION 18. Sequential Availment of Incentives. — Registered 
enterprises may enjoy the income tax holiday (ITH) granted by the SDSEZA prior to the availment 
of the five percent (5%) final tax on gross income earned incentive, such registered enterprise 
shall be barred from availing the 1TH incentive. 
Registered enterprises, if eligible, may register for incentives with other investment promotion 
agencies: Provided, That registered enterprises electing to avail of the incentives of other promotion 
agencies shall not be able to avail of the incentives of the Surigao del Sur Ecozone until the 
expiration of the incentives with such other investment promotion agencies. 
SECTION 19. Extension of Period Availment. — In the event that a registered 
enterprise has suffered cessation or suspension of operations due to force majeure, which has 
impaired its viability or profitability, the SDSEZA may extend the period of validity of the incentives 
extended to such registered enterprise. 
SECTION 20. Banking Rules and Regulations. — Banks and financial institutions 
to be established in the Surigao del Sur Ecozone shall be under the supervision of the BSP and 
subject to existing banking laws, rules and regulations. 
SECTION 21. Remittances.  — In the case of foreign investments, a duly registered 
entity or enterprise within the Surigao del Sur Ecozone shall have the right to remit earnings from 
the investment in the currency in which the investment was originally made and at the exchange 
rate prevailing at the time of remittance, subject to the provisions of Republic Act No. 7653, otherwise 
known as "The New Central Bank Act." 
CHAPTER IV  
NATIONAL GOVERNMENT AND OTHER ENTITIES 
SECTION 22. Supervision and Control. — For purposes of policy direction 
and coordination, the SDSEZA shall be under the direct supervision and control of the Office of the 
President of the Philippines. 
SECTION 23. Development Goals for the Surigao del Sur Ecozone. — The 
SDSEZA shall determine the development goals for the Surigao del Sur Ecozone within the 
framework of national development plans, policies and goals. The Chairperson-Administrator shall, 
upon the approval by the Board submit the Surigao del Sur Ecozone plans, programs and 
projects to the Regional Development Council for inclusion and inputs to the overall regional 
development plan. 
SECTION 24. Relationship with Local Government Units. — Except as herein 
provided, the LGUs comprising the Surigao del Sur Ecozone shall retain their basic autonomy and 
identity. The Municipality of Cagwait, Province of Surigao del Sur, shall operate and function in 
accordance with the framework of the 1987 Constitution, Local Government Code of 1991, and 
this Act. 


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In case of any conflict between the SDSEZA and the LGUs and the National 
Government on matters affecting the Surigao del Sur Ecozone, other than national defense and 
security matters, the decision of the SDSEZA shall prevail. 
 
 
SECTION 25. Interpretation/Construction. — The powers, authorities and functions that 
are vested in the SDSEZA are intended to establish national self-sufficiency and self-reliance in the 
advancement of and protection of the national integrity, enhancement of national security, 
decentralization of governmental functions and authority, and promote an efficient and 
effective working relationship among the SDSEZA, the National Government and the LGUs. Any 
interpretation of this Act shall consider such intentions. In the event of conflict of interpretation and 
provided the intentions cannot be harmonized, the provisions of this Act shall be construed in favor 
of an interpretation that would tend to protect national security. 
SECTION 26. Audit. — The Commission on Audit shall appoint a full-time auditor in the 
SDSEZA or may assign such number of personnel as may be necessary in the performance of 
their functions. 
 
CHAPTER V 
MISCELLANEOUS 
SECTION 27. Applicability. - Insofar as these are consistent with the provisions of 
this Act, the provisions of Sections 30 to 41 of Republic Act No. 7916 shall likewise apply to the 
Surigao del Sur Ecozone. 
SECTION 28. Implementing Rules and Regulations. — The DTI, DOF and the 
National Economic Development Authority (NEDA) shall formulate the implementing rules and 
regulations of this Act within ninety (90) days after its approval. Such rules and regulations shall take 
effect fifteen (15) days after its publication in a newspaper of general circulation in the Philippines. 
SECTION 29. Separability Clause. — If any provision of this Act shall be held 
unconstitutional or invalid, the other provisions not otherwise effected shall remain in full force and 
effect. 
SECTION 30. Repealing Clause. — All laws, executive orders or issuances 
or any part thereof, which are inconsistent herewith, are hereby repealed or amended accordingly. 
SECTION 31. Effectivity. — This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
 
Approved.