Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session
1419

House Bill No.

Introduced by
HON. YEDDA MARIE K, ROMUALDEZ

and
HON. FERDINAND MARTIN G, ROMUALDEZ

This bill seeks the conversion of the Leyte Industrial Development Estate
(LIDE) in the municipality of Isabel, Leyte and its expansion to include other
municipalities in the province of Leyte adjacent to LIDE and the Eastern Visayas
Regional Growth Center (EVRGC) in the city of Tacloban into the Leyte
Ecological industrial Zone (LEIZ)

The Leyte industrial Development Estate is a 425-hectare special
economic zone established by then President Ferdinand E, Marcos in 1978
through Letter of Instruction No. 962, series of 1979. The said Letter decreed
the establishment of an “industrial estate" in Isabel, Leyte, and entrusted to the
Leyte Sab-a Basin Development Authority the duty and function of
implementing the project. With the abolition of the Leyte Sab-a Basin
Development Authority, ownership of LIDE was transferred to and is presently
is owned by the National Development Corporation (NDC) which is represented
by the LIDE Management Corporation, the estate managers of LIDE.

The Eastern Visayas Regional Growth Center Is an economic zone
approved by the Philippine Economic Zone Authority, by virtue of Presidential
Proclamation No. 1210 issued on April 23, 1998 by then President Fidel V.
Ramos, with the City Government of Tacloban as its developer and operator.
Its creation was pursuant to Section 5, paragraph (n) of Republic Act 7916, as
amended, which initially identifies Tacloban City as a viable location for the
establishment of an economic zone.

In 2012, the Copper Industry Roadmap was crafted with the aim to
promote the integrated development and competitiveness of copper and other
related industries in the region. It was later on also made part of the
government's continuous rehabilitation efforts in the region after the
devastation of typhoon Yolanda


The establishment of an ecological industrial zone aims to attract more
investors and businesses to locate in Leyte and the city of Tacloban,
jumpstarting the revival of economic activities in the area and provide more
employment opportunities. The establishment of the LEIZ and development of
a copper indusiry cluster in Leyte will serve as our medium to long-term
strategic economic objective consistent with the country’s industry development
goals.

The proposed zone is expected to initially house potential locators in the
field of copper wire rod casting facility, downstream copper industry such as but
not limited to copper wire producers, major industrial concerns that need power,
and port facilities such as steel, and copper-using industries, However, the
long-term objective is develop LEIZ into a self-sustaining and ecologically
sustainable industrial, commercial and investment zone that will put in place
and wide-reaching employment and investment generation mechanism as well
as incentives to ensure the free flow and movement of goods and commodities
within the freeport area and their exportation from therein,

In view of these considerations, approval of this bill is earnestly sought.

Rep. YEDDA MARIE K. ROMUALDEZ
Representative, Yyhgog Sinirangan



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 1419

Introduced by
HON, YEDDA MARIE K. ROMUALDEZ

and
HON. FERDINAND MARTIN G. ROMUALDEZ

AN ACT CONVERTING AND EXPANDING THE LEYTE INDUSTRIAL
DEVELOPMENT ESTATE INTO THE LEYTE ECOLOGICAL INDUSTRIAL
ZONE, CREATING FOR THIS PURPOSE THE LEYTE ECOLOGICAL
INDUSTRIAL ZONE AUTHORITY APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of the Representatives of the

Philippines in Congress assembled:

CHAPTER |
GENERAL PROVISIONS

Section 1. Short Title - This Act shall be known as the “Leyte Industrial
Development Estate Act of 2019”

Section 2. Declaration of Policy ~ It is hereby declared the policy of
the State to actively encourage, promote, induce and accelerate the sound and
balanced industrial, economic and social development of the country in order
to provide jobs to the people, especially those in rural areas, increase their

productivity and their individual and family income, and thereby improve the


level and quality of their living conditions though the establishment, among
others, of special economic zones in suitable and strategic locations in the
country and through measures that shall effectively attract legitimate and

productive foreign investments.

CHAPTER Il
CONVERSION AND EXPANSION OF THE ECONOMIC ZONE

Section 3. Conversion of the Leyte Industrial Development Estate.
~The Leyte Industrial Development Estate (LIDE) located in the municipality of
Isabel, province of Leyte is hereby converted into a special economic zone,
consisting of an industrial estate (IE), export processing zone (EPZ) and free
trade zone to be known as the Leyte Ecological Industrial Zone, hereafter

referred to as LEIZ.

Section 4, Expansion of the LEIZ. Subject to the concurrence of the
affected local government units of Leyte, the LEIZ shall be expanded to cover

the following areas:

(a) the land area that comprises the former Leyte Industrial Development
Estate, hereafter referred to as the “LEIZ Core Area”;

(b) the land areas located within municipalities adjacent to the
municipality of Isabel, hereafter referred to as the "LEIZ Non-Core

Areas”;

(c) the land area covered by the Eastern Visayas Regional Growth
Center, hereafter referred to as the “LEIZ Tacloban North”, and

(d) all other expansion areas which may be declared as part of LEIZ in
the manner provided by this Act, hereafter referred to as the “LEIZ

Expansion Areas”.


The metes and bounds of the LEIZ Core Area, the LEIZ Non-Core Areas,
the LEIZ Tacloban North, and the LEIZ Expansion Areas shall be determined
based on the technical description and coordinates verified and approved by
the Land Management Bureau, the National Mapping and Resource
Information Authority, and other government agencies as may be provided by

law.

In the event that the LEIZ Non-Core Area or the LEIZ Expansion Areas
cover economic zones of other investment promotion agencies, registered
enterprises in such economic zones may select to register with the Leyte
Ecological industrial Zone Authority (LEIZA) or to remain with such other
investment promotion agency: Provided, that in no case shall a registered

enterprise enjoy incentives from both investment promotion agencies.

Section 5, Governing Principles. - The Leyte Industrial Ecological
Zone shall be managed and operated by the Leyte Ecological Industrial Zone
Authority, hereafter referred to as the LEIZA, under the following principles:

(1) Within the framework and limitations of the Constitution and
applicable provisions of the Local Government Code, the LEIZ 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;

(2) The LEIZ shall be provided with transportation, telecommunications
and other facilities needed to attract legitimate and productive
investments, generate linkage industries and employment
opportunities for the people of the province of Leyte and the city of

Tacloban as well as its neighboring provinces;


(3) The LEIZ may establish a 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 Export Zone Authority (PEZA), and/or the Department
of Trade and Industry (DTI), with foreign entities or enterprises;

(4) Foreign citizens and companies owned by non-Filipinos in whatever
proportion may set up enterprises in the LEIZ, either by themselves
or in a joint venture with Filipinos in any sector of industry,
international trade and commerce within the LEIZ;

(6) The LEIZ 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 of the
LEIZ to the other parts of the Philippine territory shall be subject to
customs duties and taxes under the Customs and Tariff Code and

other relevant tax laws of the Philippines;

(6) The areas comprising the LEIZ may be expanded or reduced when
necessary. For this purpose, the LEIZA, in consultation with the
appropriate and affected local government units and in compliance
with existing laws and local ordinances, shall have the power to
acquire either by purchase, reclamation negotiation or condemnation
proceedings, any private or public land, foreshore or submerged area
within or adjacent to the LEIZ Core Area, the LEIZ Non-Core Areas,
the LEIZ Tacloban North, and the LEIZ Expansion Areas for the
following purposes: (a) consolidation of lands for LEIZ development;
(b) acquisition of right of way to the LEIZ; and (c) the protection and
safeguard of watershed areas and natural assets valuable to the

prosperity of the LEIZ;


(7) Goods manufactured by a LEIZ 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 LEIZA 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;

(8) The defense of the LEIZ and the security of its perimeter fence shall
be the responsibility of the National Government in coordination with
the LEIZA and the concerned local government units.

CHAPTER III
GOVERNING STRUCTURES

Section 6. Creation of the Leyte Industrial Ecological Zone
Authority (LEIZA). - There is hereby created a body corporate to be known as
the ‘Leyte Industrial Ecological Zone Authority", hereinafter referred to as the
LEIZA, which shall manage and operate the Leyle Industrial Ecological Zone,
in accordance with the provisions of this Act. This corporate franchise shall
expire in fifty (50) years counted from the first year after the effectivity of this,
Act, unless otherwise extended by Congress. It shall be organized within one
hundred eighty (180) days after the effectivity of this Act

Section 7. Capitalization. - The authorized capital stock to be

contributed by the government, shall be:

(a) Two billion five hundred million pesos (P 2,500,000,000.00), with

option to increase capitalization upon discretion of the LEIZA Board;


(b) All lands embraced and covered by the LEIZA, as well as permanent
improvements and fixtures upon proper inventory not otherwise
alienated conveyed, or transferred to another government agency;

and

(0) All other assets which the President may transfer to LEIZA as part of
the equity contribution of the government.

Section 8, Principal Office of the LEIZA. - The LEIZA shall maintain
its principal office in Tacloban City, but it may establish branches within the
Philippines as may be necessary for the proper conduct of its business.

Section 9. Powers and Functions of the LEIZA - The LEIZA shall have
the following powers and functions:

(a) To operate, administer, manage and develop the Leyte Ecological
Industrial Zone, according to the principles and provisions set forth
in this Act,

(b) To register, regulate and supervise the enterprises in the LEIZ in an
efficient and decentralized manner, subject to existing laws;

(c) To coordinate with the local government units embracing the LEIZ
and exercise general supervision over the development plans,

activities and operations of the LEIZ;

(d) To regulate and undertake the establishment, construction, operation
and maintenance of public utilities, other services, and infrastructure
in the LEIZ such as, but not limited to, heat, 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
(CAAP), and such other services or concessions or infrastructure
necessary or incidental to the accomplishment of the objectives of
this Act;

(e) To construct, acquite, own, lease, operate and maintain on its own
or through contracts, franchise, licenses, bulk purchase from the
private sector or permits under any of the schemes allowed in
Republic Act No, 6957 (the Build-Operate- Transfer Law, as
amended), or joint venture, adequate facilities and infrastructure
required or needed for the operation and development of the LEIZ,
in coordination with appropriate national and local government
authorities and in conformity with applicable laws thereon;

(1) To approve plans, programs and projects of the LEIZ 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, subject to the approval and
supervision of the Philippine Amusement and Gaming Corporation
(PAGCOR);

(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
LEIZ. Notwithstanding the power of the LEIZA 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 LEIZA;

(j) To create, operate and/or contract to operate such functional units or
offices of the LEIZA 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;

() Toissue certificates of origin for products manufactured or processed
in the LEIZA in accordance with prevailing rules of origin and the
pertinent regulations of the PEZA, 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 LEIZ, 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 LEIZA in the establishment of such one-stop

shops;

(n) To provide internal security to the LEIZ in coordination with the
National Government and concerned LGUs. For this purpose, the
LEIZA shall provide and establish its own internal security and
firefighting forces or hire others to provide the same. Military forces


sent by the National Government for the purpose of defense shall not
interfere in the internal affairs of the Tacloban City Ecozone and
expenditures for these military forces shall be borne by the National

Government;

(0) 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 10, Board of Directors of the LEIZA - The powers of the LEIZA
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 Chief Executive
Officer of the LEIZA;

(b) The Chief Operating Officer, who shall serve as vice-chairman;

(c) The Board consists of the following as members:

(1) The chairperson of the Regional Development Council (RDC)
of Eastern Visayas;

(2) The representative of the Department of Trade and Industry;

(8) The mayor of the municipality of Isabel, alternating with the
mayors of the other municipalities and cities embracing the
LEIZ for a term of one year;

(4) One (1) representative from the domestic investors’ group;

(5) One (1) representative from the foreign investors’ group;


(6) One (1) representatives from the workers working in the LEIZ;
and
(7) Two (2) representatives from the private sector in the region.

The term of RDC chairperson and the municipal mayor representing the
municipalities comprising the LEIZ shall correspond to the elected term of

office.

The Chairperson and Chief Executive Officer 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, the replacement shall

serve only the unexpired portion of the term.

Except for the representatives of the business and labor sectors, no
person shall be appointed by the President of the Philippines as a member of
the Board unless he is 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 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
{or 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 11. Powers and Duties of the Chairperson and Chief
Executive Officer, - The Chairperson and CEO shall have the following

powers and duties:

{a)To submit to the Board for its approval, policies, systems,
procedures, rules and regulations that are essential to the operation
of the LEIZA;

(b) To direct and manage the affairs of the LEIZA in accordance with the
policies of the Board;

(c) To establish the internal organization of the LEIZA under such
conditions that the Board may prescribe;

(4) To submit an annual budget and necessary supplemental budget to
the Board for its approval;

(c) To submit within thirty (80) days after the close of each fiscal year an
annual report to the Board and such other reports as may be
required;

(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 LEIZA; and

(h) To perform such other duties as may be assigned to him by the Board

or which are necessary or incidental to his office.

Section 12. Organization and Personnel, — The Board of Directors of
the LEIZA 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. It
shall have exclusive and final authority to promote, transfer, assign, reassign,
or remove officers of the LEIZA, any provision of existing law to the contrary
notwithstanding. The Chairperson-CEO may carry out removal of such officers
and employees.

The officers and employees of the LEIZA, including all members of the
Board, shall not engage directly or indirectly in partisan activities nor take part
in any election, except to vote.

No officer or employee of the LEIZA, subject to civil service laws and
regulations, shall be removed or suspended except for cause, as provided by

law.

Section 13, Chief Operating Officer, - The Board of Directors of the
LEIZA shall appoint a full-time Chief Operating Officer, whose compensation
shall be determined by its Board of Directors and shall be in accordance with
the revised compensation and position classification system. The Chief
Operating Officer shall be responsible to the Board and the President of the
Philippines for the efficient management and operation of the LEIZA.

Section 14. Legal Counsel. - The LEIZA shall have its own internal
legal counsel under the supervision of the Government Corporate Counsel
When the exigencies of businesses and operations demand it, the LEIZA may
engage the services of an outside counsel either on a case to case or on a fixed

retainer basis.

CHAPTER IV
INCENTIVES TO ECOZONE ENTERPRISES AND INVESTORS

Section 15. Investors 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 of age;

(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 his financial

capability and capacity.

As a holder of investor’s visa, an alien shall be entitled to reside in the
Philippines while his investment subsists. For this purpose, the alien should
submit an annual report, in the form duly presoribed for the purpose, to prove
that he has maintained his investment in the country. Should said alien
withdraw his 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 (Bl) and the Department of Labor and Employment
(DOLE), respectively; Provided, That the BI and the DOLE shall implement
measures to expedite the processing of such visas and permits for workers in
the LEIZ and coordinate with the LEIZA for the purpose of improving ease of

doing business,

Section 16. Fiscal Incentives. - Registered enterprises operating within

the LEIZ 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 LEIZA may impose its own conditions not otherwise prohibited
by this Act: Provided, further, That the LEIZA shall not be limited to the
conditions provided under Republic Act No. 7816, Republic Act No. 8748 or any
other related issuance, rule or regulation

Section 17. 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 LEIZA, including income, withholding,
donor's, percentage, and documentary stamp taxes. In lieu thereof, and subject
to Section 16 of this Act, said business establishments shall pay a five percent
(5%) final tax on their gross income eamed; 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 local government unit
where the enterprise is located.

The LEIZA shall have the authority to grant income tax holiday and net
operating loss carry over subject to Section 19 of this Act and conditions as it
may have imposed pursuant to Section 15 of this Act.


Section 18. 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 LEIZA shall be responsible for the administration, management,
enforcement and implementation of the incentives granted to
registered enterprises; Provided, Thal the BOC shall set up and
establish a customs controlled area outside the gate of the LEIZ to
facilitate payment of taxes on goods entering the Philippine customs
territory; Provided further, That notwithstanding the limitations in this
Act, the LEIZA 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 LEIZ, the LEIZA 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 19. 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 industries deemed indispensable to
national development and interest. The industries exempted from this provision
shall be determined by the LEIZA, in consultation with other government

agencies.

Section 20. Sequential Availment of Incentives. - Registered
enterprises may enjoy the income tax holiday (ITH) granted by the LEIZA prior
to the availment of the five percent (5%) final tax on gross income earned
incentive: Provided, That in the event a registered enterprise elects to avail of


the final tax incentive, such registered enterprise shall be barred from availing

the ITH 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 LEIZ until the expiration of the incentives with such other

investment promotions agencies.

Section 21. Extension of Period of 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 LEIZA may
extend the period of validity of the incentives extended to such registered

enterprise.

Section 22, Banking Rules and Regulations. - Banks and financial
institutions to be established in the LEIZA shall be under the supervision of the
Bangko Sentral ng Pilipinas (BSP) and subject to existing banking laws, rules

and regulations.

Section 23. Remittances. - In the case of foreign investments, a duly
registered entity or enterprise within the LEIZA 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 V
NATIONAL GOVERNMENT AND OTHER ENTITIES

Section 24, Supervision and Control. - For purposes of policy direction
and coordination, the LEIZA shall be under the direct control and supervision
of the Office of the President of the Philippines.


Section 25. Regional Development Council. - The LEIZA shall
determine the development goals for the LEIZ within the framework of national
development plans, policies and goals. The Chairperson-CEO shall, upon
approval by the Board, submit the LEIZ plans, programs and projects to the
Regional Development Council for inclusion and inputs to the overall regional

development plan.

Section 26, Relationship with Local Government Units. — Except as
herein provided, the local government units comprising the Tacloban City
Ecozone shall retain their basic autonomy and identity. They shall operate and
function in accordance with the framework of the 1987 Constitution, Local
Government Code of 1991, Republic Act No. 7898, the AFP Modernization Act,
as amended by Republic Act No. 10349, applicable provisions of the Local
Government Code, and this Act.

In case of any conflict between the LEIZA and the LGUs and the National
Government on matters affecting the LEIZ, other than national defense and
security matters, the decision of the LEIZA shall prevail.

Section 27, Interpretation/Construction, - The powers, authorities and
functions that are vested in the LEIZA 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 promotion of an efficient and
effective working relationship among the LEIZA, 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 28. Audit. - The Commission on Audit (COA) shall appoint a full
- time auditor in the LEIZA or may assign such number of personnel as may be
necessary in the performance of their functions, The salaries and emoluments
of the assigned auditor and personnel shall be in accordance with pertinent

laws, rules and regulations,

CHAPTER VI
MISCELLANEOUS

Section 29. Transitory Provisions. - All properties, assets, funds,
rights, obligations, and liabilities of LIDE are hereby transferred to the LEIZA
except for the liabilities that are not properly accounted for as per the reports
coming from the Commission on Audit, which shall be retained by the NDC

The LEIZA shall carry out the transfer herein provided in a manner that
will ensure the least disruption of ongoing operations of the LIDE. The qualified
and necessary personnel of the LIDE shall be transferred to and absorbed by
the LEIZA: Provided, That the tenure, rank, salaries and privileges of such
personnel are not reduced or adversely affected. The personnel whose
services are not retained by the LEIZA shall be granted separation pay and
retirement and other benefits they are entitled to under existing laws but in no
case shall the separation pay be less than one (1) month for every year of

service.

In the period prior to the actual assumption of duties by the LEIZA, all
officers and employees of the LIDE shall continue to exercise their functions
and discharge their duties and responsibilities. The LIDE shall be deemed

abolished upon the organization of the LEIZA.

Section 30. 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 31. Applicability Clause. — Insofar as these are consistent with
the provisions of this Act, the provisions of Sections 30 to 41 of Republic Act
No. 7916, otherwise known as "The Special Economic Zone Act of 1995", as
amended, shall likewise apply to the LEIZ.

Section 32. Separability Clause. - If any provision of this Act is held
invalid or unconstitutional the other provisions not so declared shall remain in

force and effect.

Section 33. Repealing Clause. - All laws, decrees, orders and rules
and regulations contrary to or inconsistent with the provisions of this Act are

hereby repealed or amended accordingly.

Section 34, Effectivity. - This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in a newspaper of general circulation