SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S.B. 2435 
Introduced by Senator Poe 
AN ACT 
'14 
OCT 20 P5 :26 
ESTABLISHING AN INFORMATION AND COMMUNICATIONS TECHNOLOGY 
(ICT) HUB IN EVERY LEGISLATIVE DISTRICT OF THE PHILIPPINES AND FOR 
OTHER PURPOSES 
Explanatorv Note 
The archipelagic nature of the Philippines has always proved to be a challenge to our 
government. The more than 7,000 islands and various bodies of water surrounding these islands 
bogged down many government development projects to the detriment of our people. However, 
with the advent of information and communications technology, bringing programs and services 
to even remote barangays has now become doable and feasible. 
The deregulation of the telecommunications industry which began in 1987, brought 
tremendous changes the way we relate with each other and with the world. This enabled universal 
access to information and communications technology thereby allowing the development of cyber 
services. This allowed the country to participate in the Global Off-shoring and Outsourcing 
(Global 0 & 0) Industry. Consequently, niche markets emerged in animation, customer contact, 
back office, software development and other cyber services. In 2010, the ICT sector generated $ 
5.7 billion in revenues and is employing around half a million jobs and opportunities for the 
Philippines. 
IT-related industries, BPO/contact centers, and tourism are among the priority investment 
areas in the Investment Priority Plan. With more investment in these industries, especially in 
information and technology, we should be able to create more information and Communications 
Technology or ICT Hubs in every legislative district ofthe country, This should allow the country 
to become more competitive and to leapfrog to the future. 
The Philippines has 234 legislative districts in 81 provinces. If this bill becomes a law, at 
234 nodes can be established to pump prime economic activities and promote development in 
every province, this bill hopes to minimize the so-called digital divide as well as speed up the 
setting up of a wireless communications technology. 
With an ICT Hub, each legislative district of the country will be able to harness its potential 
to making it investor-friendly and accessible. It can also electronically promote the province' nerve 
centers to connect to the various agencies of the national government thereby pushing the growth 
of e-government locally and nationally. The leT Hub can also link a province to the national 
government during times of national calamities and disasters. More importantly, with the leT Hub, 
the archipelagic feature of the country can be bridges, thereby creating One Philippines. 
The immense contribution ofthe leT sector should be harnessed and hence, the immediate 
passage of this bill is earnestly requested. 
~~ JuO-
trCEPOE 


" 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
.s~mrtr 
u~If';( of ll!i: ~t'rt .. hu'" 
Second Regular Session 
'14 
OCT 20 P5 :26 
SENATE 
S.B. 
2435 
Introduced by Senator Poe 
AN ACT 
ESTABLISHING AN INFORMATION AND COMMUNICATIONS TECHNOLOGY 
(ICT) HUB IN EVERY LEGISLATIVE DISTRICT OF THE PHILIPPINES AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
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SECTION 1. Title. - This Act shall be known as the "ICT Hub Act of2014". 
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SECTION 2. Declaration of Policy. - It is hereby declared the policy of the State: 
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a. To recognize the vital role of communication and information in nation-building. 
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Toward this end, the State shall provide for the creation and establishment of 
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information Communications Technology Hub, hereinafter referred to as ICT Hub, in 
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every legislative district ofthe country; 
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b. To promote and encourage investment in the countryside by providing the 
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infrastructure necessary for the growth of information and communications 
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technology; and 
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c. To ensure the adequate supply of power and electricity in the countryside in support of 
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the development of information and communications technology. 
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SECTION 3. Information Communications Technology Plan. - The provincial or city 
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board, consistent with the medium Term Philippine Development Plan (MTPDP) and in 
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coordination with the Commission ou Information and Communications Technology (CICT), shall 
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formulate and approve an information Communications Technology (ICT) Plan for the legislative 
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districts of each province or city, taking into consideration its comparative advantage, funding mix; 
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private sector involvement, incentives to locators, local tax incentives, among others. 
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SECTION 4. Location oflCT Hub. -Pursuant to the provincial or city development plan, 
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the provincial or city board shall identify the area where the ICT Hub shall be established: 
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Provided, That, the area/s shall not be in the capital or urban center of the province: Provided, 
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further that, the area is owned by the provincial or city government. 
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For the purpose of this Cat, Information Communication Technology (lCT) is the totality 
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of electronic means to collect, process and present information to end-users in support of their 
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activities. It consists among others, of computer systems, office systems and consumer electronics, 
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as well as networked information infrastructure, the components of which include the telephone 
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system, the internet, fax machines and computers. 
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An rCT Hub refers to a center or location where services may be provided through the use 
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ofICT. Such services may include telecommunication services, data management, etc. 
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· . 
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SECTION 5. Digital Infrastructure Fund. - A Digital Infrastructure Fund hereinafter 
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referred to as the Fund is hereby created and lodged in the CICT. The amount ofTen Billion Pesos 
3 
(PhplO,OOO,OOO,OOO.OO) or as much thereof as may be necessary is hereby appropriated from the 
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general fund for the purpose of providing seed capital and as the counterpart of the national 
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government in the establishment of the ICT Hub in each legislative district of each province or 
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city: Provided, That, the Fund shall be disbursed in a pro-rata manner based on the following 
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criteria: Telephone density, degree of digital divide, ICT penetration ratio, presence of new 
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alternative backbone networks, science and technology parks and industrial estates with an ICT 
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focus, among others. 
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Subsequent appropriations shall be annually provided for the General Appropriations Act 
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with an annual increment of25 percent per annum until the amount ofPhp 50,000,000,000.00 shall 
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have been reached. 
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SECTION 6. Tax and Fiscal Incentives. - Ay locator in the ICT Hub shall be entitled to 
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the fiscal and non-fiscal incentives under the Omnibus Investments Code (E.O. 226, series of 
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1987), as amended, and the Special Economic Zone Act of 1995 (R.A. No. 7916), including a 5-
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year tax break from national taxes: Provided, That, they are part ofthe Global 0 & 0, such as, but 
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not limited to: animation, customer contact, back office, software development, medical and legal 
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transcription, and other cyber services: Provided, further That, sixty percent (60%) of its labor 
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force shall be recruited locally and that corporate income shall be declared and taxes shall be paid 
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locally on the sixth (6th) year of its operations; Provided, Finally, That locators in the top 30 poorest 
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provinces of the country as identified by the National Economic and Development Authority, shall 
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be give a pioneer status and shall be entitled to such additional incentives as may be allowed by 
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law. 
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ICT Hubs already receiving such incentives shall continue to be entitled to them. 
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SECTION 7. Implementing Rules and Regulations. - The Commission on Information 
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and Communications Technology, in coordination with the Departments of Science and 
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Technology and Interior and Local Government and other concerned entities, shall formulate the 
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necessary implementing rules and regulations of this Act. 
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SECTION 8. Separability Clause. - Any portion or provision of this Act that may be 
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declared unconstitutional shall not have the effect of nullifying other provisions hereof, as long as 
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such remaining provisions and still subsist and be given effect in their entirety. 
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SECTION 9. Repealing Clause. - All laws, rules and regulations, other issuances or parts 
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thereof, which are inconsistent with the Act, are hereby repealed or modified accordingly. 
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SECTION 10. Effectivity. - This Act shall take effect fifteen (15) days from its 
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publication in the Official Gazette or two national newspapers of general circulation. 
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Approved, 
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