REPUBLIC OF THE PHILIPPINES
)
First Regular Session
)
HOUSE OF REPRESENTATIVES
House Bill No. _______
Introduced by Hon. Antonio B. Legarda Jr.
AN ACT ESTABLISHING A SPECIAL ECONOMIC ZONE AND FREE
PORT IN THE PROVINCE OF ANTIQUE, PROVIDING FUNDS
THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Special economic zones are an important facet of our economy. They generate
employment,
increase
foreign
investments,
and
contribute
to
the
overall
development of a community.
The Province of Antique is situated at the heart of Panay Island. It is made up of 15
coastal towns, and 3 hinterland towns. It also serves as a vital transportation hub in
the Panay Region. Given its strategic location, Antique boasts a significant amount
of economic potential.
Thus, this bill seeks to create a special economic zone and freeport in the province
of Antique, to be known as the Antique Special Economic Zone, which shall be
managed by the Antique Economic Zone Authority. The establishment of a special
economic zone and freeport in the province of Antique would generate
employment for thousands of Antiqueños and those from nearby provinces, as well
as contribute to the economic development of the province.
In line with the policy adopted by its original proponent Senator Loren Legarda,
this bill therefore likewise serves as a counter-part House Bill. It is for the reasons
stated above that the passage of this measure is earnestly sought.
HON. ANTONIO B. LEGARDA JR.
May 8, 2023
4:19 pm
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NINETEENTH CONGRESS OF THE
)
REPUBLIC OF THE PHILIPPINES
)
First Regular Session
)
HOUSE OF REPRESENTATIVES
House Bill No. _______
Introduced by Hon. Antonio B. Legarda Jr.
AN ACT
ESTABLISHING A SPECIAL ECONOMIC ZONE AND FREE PORT IN
THE PROVINCE OF ANTIQUE, PROVIDING FUNDS THEREFOR, AND
FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines
Congress assembled:
CHAPTER I
GENERAL PROVISIONS
SECTION 1. Short Title. – This Act shall be known as the “Antique Special
Economic Zone Act of _____.”
SEC. 2. Declaration of Policy. – It is hereby declared the policy of the
government to actively encourage, promote, induce and accelerate a sound and
balanced industrial, economic and social development of the country in order to
provide jobs to the people especially those in the rural areas, increase their
productivity and their individual and family income, and thereby improve the level
and quality of their living condition through the establishment, among others, of
special economic zones and free ports in suitable and strategic locations in the
country and through measures that shall effectively attract legitimate and
productive foreign investments.
SEC. 3. The Antique Special Economic Zone and Free Port. – In accordance
with the foregoing declared policy, there is hereby established a special economic
zone and free port, to be known as the Antique Special Economic Zone, hereinafter
known as the Zone, which shall cover the entire Province of Antique.
SEC. 4. Governing Principles. – The Antique Special Economic Zone shall
be managed and operated under the following principles:
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(a) Under the framework and limitations of the Constitution and the
applicable provisions of the Local Government Code, the Zone shall be developed
into
and
operated
as
a
self-sustaining
industrial,
commercial,
financial,
acqua/agri-industrial, investment, and tourism/recreational center and free port
with suitable opportunities in and around the Zone, and to effectively encourage
and attract legitimate and productive foreign investments therein;
(b) Business establishments operating within the Zone shall be entitled to the
existing fiscal incentives as provided for under Presidential Decree No. 66, the law
creating the Export Processing Zone Authority (EPZA), or those provided under
Book VI of Executive Order No. 226, otherwise known as the Omnibus
Investments Code of 1987;
(c) Any provision of existing law, rules or regulations to the contrary
notwithstanding, no taxes, local and national, shall be imposed on business
establishments operating within the Zone. In lieu of paying taxes, said business
establishments shall pay and remit to the national government five per centum
(5%) of their gross income, to be divided as follows:
(1) Two per centum (2%) shall accrue to the general fund of the national
government;
(2) One per centum (½%) to the Province of Antique;
(3) One-half per centum (1%) to be shared by the municipalities affected by
the declaration of the Zone in the proportion to their income from business
activities within the Zone; and
(4) One and one-half per centum (1½%) to the Antique Economic Zone
Authority which shall be created under this Act;
(d) Existing banking laws and Bangko Sentral ng Pilipinas (BSP) rules and
regulations shall apply on foreign exchange and other current account transactions
(trade and non-trade), local and foreign borrowings, foreign investments,
establishment and operation of local and foreign banks, foreign currency deposit
units, offshore banking units and other financial institutions under the supervision
of the BSP;
(e) Any foreign investor who establishes a business enterprise within the
Zone and who maintains capital investment of not less than One hundred fifty
thousand United States dollars (US$150,000.00) shall be granted, along with his or
her spouse, dependents, and unmarried children below twenty-one (21) years of
age, a permanent resident status within the Zone. The responsibility and authority
to grant such permanent resident status is hereby delegated to the Antique
Economic Zone Authority referred to in Section 5 of this Act.
Such foreign investor and his or her spouse, dependents, and unmarried children
below the age of twenty-one (21) years, shall have the freedom of ingress and
egress to and from the Zone without need of any special authorization from the
Bureau of Immigration.


Likewise, the Antique Economic Zone Authority shall issue working visas
renewable every two (2) years to foreign executives and foreign technicians with
highly specialized skills which no Filipino possesses, as certified by the
Department of Labor and Employment.
The names of foreigners granted permanent resident status and working visas by
the Antique Economic Zone Authority shall be reported to the Bureau of
Immigration within thirty (30) days from such grant.
The foregoing is without prejudice to a foreigner acquiring permanent resident
status in the Philippines in accordance with applicable immigration, retirement, and
other related laws; and
(f) Except as otherwise provided herein, the local government units totally or
partially embraced within the Zone shall retain and maintain their basic autonomy
and identity. Province of Antique shall operate and function in accordance with
Republic Act No. 7160, otherwise known as the Local Government Code of 1991,
insofar as the areas within its respective jurisdiction covered in this Act are
concerned.
SEC. 5. Creation of the Antique Economic Zone Authority. – A body
corporate to be known as the Antique Economic Zone Authority, hereinafter
referred to as the AEZA, is hereby created to manage and operate, in accordance
with the provisions of this Act, the Antique Special Economic Zone and Free Port.
This corporate franchise shall expire in fifty (50) years counted from the first day
of the fifth (5th) calendar year after the effectivity of this Act, unless otherwise
extended by Congress.
SEC. 6. Powers and Functions of the Antique Economic Zone Authority. –
The Antique Economic Zone Authority shall have the following powers and
functions:
(a) To adopt, alter, use a corporate seal; to contract, lease, buy, sell, acquire,
own and dispose movable and immovable as well as personal and real property of
whatever nature (including but not limited to shares of stock or participation in
private corporations or in limited partnerships, or in joint ventures with limited
liability), bonds, precious metals bullions, ingots, and easily convertible foreign
exchange; to sue and be sued in order to carry out its duties, responsibilities,
privileges, powers and functions as granted and provided for in this Act; and to
exercise to power of eminent domain for public use and public purpose;
(b) Within the limitation provided by law, to raise or borrow adequate and
necessary funds from local or foreign sources to finance its projects and programs
under this Act, and for that purpose to issue bonds, promissory notes, and other
form 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;
(c) To approve, accept, accredit and allow any local or foreign business,
enterprise or investment in the Zone subject only to such rules and regulations as


AEZA may promulgate from time to time in conformity with the provisions of this
Act and the limitations provided in the Constitution;
(d) To authorize or undertake, on its own or through others, and regulate the
establishment, operation and maintenance of public utilities, services, and
infrastructure in the Zone such as shipping, barging, stevedoring, cargo handling,
hauling, warehousing, storage of cargo, port services or concessions, piers,
wharves, bulkheads, bulk terminals, mooring areas, storage areas, roads, bridges,
terminals, conveyors, water supply and storage, sewerage, drainage, airport
operations in coordination with the Civil Aeronautics Boards, and such other
services
or
concessions
or
infrastructure
necessary
or
incidental
to
the
accomplishment of the objectives of this Act: Provided, however, That the private
investors in the Zone shall be given priority in the awarding of contracts,
franchises, licenses, or permits for the establishment, operation and maintenance of
utilities, services and infrastructure in the Zone;
(e) To construct, acquire, own, lease, operate and maintain on its own or
through others by virtue of contracts, franchises, licenses, or permits under the
build-operate-transfer scheme or under a joint venture with the private sector any
or all of the public utilities and infrastructure required or needed in the Zone, in
coordination with appropriate national and local government authorities and in
conformity with applicable laws thereon;
(f) To operate on its own, either directly or through a subsidiary entity, or
license to others, tourism-related activities, including games, amusements,
recreational and sports facilities such as horse racing, dog racing, gambling
casinos, golf courses, and others, under priorities and standards set by the AEZA;
(g) Subject to existing applicable laws, rules and regulations, and such other
laws as may be required that are consistent with the objectives of AEZA, to act as
an offshore financial center and sandbox for financial technology innovations, that
engage in or allow any or all international financial and business services,
including offshore banking, offshore fund management, collective investment
schemes, cryptocurrency exchange and cryptocurrency mining.
(h) To protect, preserve, maintain and develop the virgin forests, beaches,
coral and coral reefs within the Zone. The virgin forest within the Zone will be
proclaimed as a national park and will be covered by a permanent total log ban. For
this purpose, the rules and regulations of the Department of Environment and
Natural Resources and other government agencies involved in the above functions
shall be implemented by the AEZA;
(i) To adopt, implement and enforce reasonable measures and standards to
control pollution within the Zone;


(j) To provide security for the Zone in coordination with the national and
local governments. For this purpose, AEZA may establish and maintain its own
security force and firefighting capability or hire others to provide the same;
(k) To form, establish, organize and maintain subsidiary corporations, as its
business and operations may require, whether under the laws of the Philippines or
not;
(l) To issue rules and regulations consistent with the provisions of this Act as
may be necessary to implement and accomplish the purposes, objectives and
policies herein provided; and
(m) 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, objective and policies of this Act.
SEC. 7. Board of Directors of AEZA. – The powers of the Antique Economic
Zone Authority shall be vested in and exercised by a Board of Directors hereinafter
referred to as the Board, which shall be composed of fifteen (15) members, to wit:
(a) four (4) representatives of the national government;
(b) Municipal Mayors of municipalities included in the area of the Antique
Special Economic Zone and Free Port, as ex officio voting members,
which, however, in no case shall exceed a total number of five (5)
members;
(c) two (2) representatives of labor from among the workers in the Antique
Special Economic Zone;
(d) two (2) representatives from the business and investment sectors in the
Zone, one (1) of whom must come from the local investors of the Province
of Antique, while the other one (1) must come from the non-resident
investors within the Zone; and
(e) one (1) representative of the private sector preferably a resident of the
Province of Antique.
The chairman 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 three (3)
years, unless sooner removed for cause or dies or resigns voluntarily. In case of
death, resignation or removal for cause, the replacement shall serve only the
unexpired portion of the term.
No person shall be appointed by the President of the Philippines as a member of
the Board unless he is a Filipino citizen, of good moral character and of recognized
competence in some relevant fields in business, banking, shipping, business or
labor management, port operations, engineering, or law.


Members of the Board shall receive a reasonable per diem which shall not be less
than the amount equivalent to the representation and transportation allowances of
the members of the Board and/or as may be determined by the Department of
Budget and Management; Provided, however, That the total per diem collected
each month shall not exceed the equivalent per diems of 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
(PhP 10,000.00) for every Board meeting.
SEC. 8. Chairman and Administrator - The President shall appoint a
professional manager as administrator of the Antique Economic Zone Authority
whose compensation shall be determined by its Board of Directors and shall be in
accordance with the revised compensation and position classification system, who
shall be the ex officio chairman of the Board and who shall serve as the chief
executive officer of the AEZA. The Chairman and Administrator of AEZA shall be
responsible to the Board and the President of the Philippines for the efficient
management and operation of the Antique Special Economic Zone.
SEC. 9. Capitalization. – The Antique Economic Zone Authority shall have
an authorized capital stock of two billion (2,000,000,000) number of par shares
with a minimum issue value of Ten pesos (PhP10.00) each. The national
government shall initially subscribe and fully pay three hundred million
(300,000,000) shares of such capital stock. The initial amount necessary to
subscribe and pay for the shares of stock shall be included in the General
Appropriations Act of the year following its enactment into law and thereafter. The
Board of Directors of AEZA may, from time to time and with the written
concurrence of the Secretary of Finance, increase the issue value of the shares
representing the capital stock of the Antique Economic Zone Authority. The Board
of Directors of AEZA, with the written concurrence of the Secretary of Finance,
may sell shares representing not more than forty per centum (40%) of the capital
stock of the AEZA to the general public with such annual dividend policy as the
Board and the Secretary of Finance may determine. The national government shall
in no case own less than sixty per centum (60%) of the total issued and outstanding
capital stock of the AEZA.
SEC. 10. Supervision. – The Antique Special Economic Zone shall be under
the direct control and supervision of the Office of the President of the Philippines
for purposes of policy direction and coordination, in the meantime that the agency
tasked with the coordination of special economic zones is not yet in place.
SEC. 11. Relationship with the provincial and municipal government units
of Antique. – In case of any conflict between the Antique Economic Zone
Authority and the local government units of Antique on matters affecting the
Antique Special Economic Zone other than in defense and security matters, the
decision of AEZA shall prevail.
SEC. 12. Legal Counsel. – The Antique Economic Zone Authority and the
corporations in which AEZA owns a majority of the issued capital stock 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
AEZA may engage the services of an outside counsel either on a case to case basis
or on a fixed retainer.
SEC. 13. Auditor. – The Commission on Audit shall appoint a representative
who shall be a full-time auditor of the Antique Economic Zone Authority and its
subsidiaries, and assign such number of personnel as may be necessary to assist
said representative in the performance of his or her duties. The salaries and
emoluments of the assigned auditor and personnel of the commission on Audit
shall be in accordance with the revised compensation and position classification
system. The Commission on Audit shall render an annual report to the President of
the Philippines and to Congress on the business activities, transactions and
operations of the Antique Economic Zone Authority.
SEC. 14. Separability Clause. – If any provision of this Act shall be held
unconstitutional or invalid, the other provisions not otherwise affected shall remain
in full force and effect.
SEC. 15. Repealing Clause. – All laws, executive orders or issuances, or any
parts thereof which are inconsistent herewith are hereby repealed or amended
accordingly.
SEC. 16. Effectivity Clause. – This Act Shall take effect upon its publication
in at least one (1) newspaper of general circulation.
Approved,