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FOURTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
1 
Ti& 
Regular Session 
1 
y 
,jljM 97 
1 - 2  
Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
In line with the government's concerted effort to promote economic 
reforms, it has become an undeclared policy of the government to'exhaust all 
possible means to support the country's continued search for genuine 
sustainability. To achieve this end, there is a need, among others, to provide 
infrastructures for more efficient and cheaper transportation of inputs and outputs 
of industrial goods. 
One of the major projects that is necessary is the provision of an 
international container port complex which will include an airport and seaport. 
This facility can best be achieved through converting the US Naval Sangley Point 
located in Cavite City into such a complex. 
U.S. Naval Station Sangley Point was a major ship-repair and supply 
facility of the United States Navy, which occupied the northern portion of the 
Cavite City peninsula and is surrounded by Manila Bay, approximately eight 
miles southwest of Manila, the Philippines. Up until World War II, the station was 
headquarters of the U.S. Asiatic Fleet. The naval station was turned over to the 
Philippine government in 1971. At present, Sangley Point is being used by the 
Philippine Navy for ship repair and dry docking purposes. 
Sangley Point has the following comparative advantages and potentials 
for growth: A bay location that provides potential for sea transport, existing air 
and port facilities which could be upgraded and improved, it has a military airport 
which has a concrete runway of 229 x 22 meters, and road links, which provide 
access to Manila and CALABARZON growth corridors. 
It now becomes imperative that such notable advantages of Sangley Point 
be not taken for granted. The economic opportunity that Sangley Point offers to 
the country must not be put to waste, especially now that the country is in 
continuous search of possible springboards for economic take-off. 
This bill seeks to convert the almost idle but very promising facility of 
Sangley Point into an international logistics hub to facilitate further economic 
growth and social development of the Province of Cavite and the Philippines, in 
general. 
In this light, the passage of this bill is earnestly sought 


1 
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FOURTEENTH CONGRESS OF THE REPUBLIC 
Third Regular Session 
) 
OF THE PHILIPPINES 
) 
1 
9 
17 p ,; 
;, 2 
SENATE 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
DIRECTING THE CONVERSION OF SANGLEY POINT IN CAVITE CITY 
INTO AN INTERNATIONAL LOGISTICS HUB 
Be it enacted by the Senate and House of Representatives of the 
Coiigress assembled: 
SECTION 1. Short Title. - This Act shall be known as the "Sangley Point 
Conversion Act of 2009." 
SECTION 2. Declaration of Policy - It is hereby declared the policy of 
the Government to accelerate the sound and balanced conversion into 
alternative productive uses of the Sangley Point in Cavite City. 
It is likewise the declared policy of the Government to enhance the 
benefits to be derived from said conversion in order to promote the econornic and 
social development of Cavite City in particular and the country in general. 
SECTION 3. The Sangley Point International Logistics I-lub - In 
accordance with the foregoing declared policy, there is hereby established an 
international logistics hub, comprising a Container Port and Airport Complex and 
an Economic Processing Zone with Cyber or Technoparks, to be known as the 
Sangley Point International Logistics Hub, hereinafter known as the Hub, located 
at the northern portion of the Cavite City peninsula and is surrounded by Manila 
Bay, approximately eight miles away from Manila. 
SECTION 4. Governing Principles. - 
The Sangley Point International 
Logistics Hub 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 financial, investment, 
and tourismlrecreational center and free port with Local 
Government Code, the Hub shall be developed into and 
operated as a self-sustaining, commercial, industrial and 
logistic hub and suitable for retirementlresidential purposes, 
in order to create employment opportunities in and around 
the Hub, and to effectively encourage and attract legitimate 
and productive foreign and local investments therein; 
(b) The Hub shall be operated and managed as a separate 
customs territory ensuring free flow or movement of goods 
and capital within, into and exported out of the Hub, as well 
as provide incentives such as tax and duty-free importations 
of raw materials, capital and equipment. However, 
exportation or removal of goods from the territory of the Hub 
to the other parts of the Philippine territory shall be subject 
to customs duties and taxes under the Tariff and Customs 
Code of the Philippines, as amended, the National Internal 
Revenue Code of 1997, as amended, and other relevant tax 
laws of the Philippines; 
(c) The provision of existing laws, rules and regulations to 
the contrary notwithstanding, no national and local taxes 
shall be imposed within the Hub. In lieu of said taxes, a five 
percent (5%) tax on gross income earned shall be paid by 
all business enterprises within the Hub and shall be remitted 
as follows: two percent (2%) to the National Government, 
and two percent (2%) to the Sangley Pojnt Authority referred 
in Section 5 of this Act, and one percent (1%) to the Cavite 
City government; 
(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; 


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(e) Any foreign investor who establishes a business 
enterprise within the Hub and who maintains capital 
investment of not less than One hundred fifty thousand 
United States dollars (USW 50,000) 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 Hub. The responsibility and authority to 
grant such permanent resident status is hereby delegated to 
the Sangley Point Authority. 
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 Hub without need of any special authorization from 
the Bureau of Immigration. 
Likewise, the Sangley Point Authority, referred herein 
Section 5, 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 Sangley Point 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 Hub 
shall retain and maintain their basic autonomy and identity. 
Cavite City shall operate and function in accordance with 
Republic Act No. 7160, otherwise known as the Local 


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Government Act of 1991, insofar as the areas within its 
jurisdiction covered in this Act are concerned. 
Section 5. Creation of the Sangley Point Authority. - 
A body corporate to be 
known as the Sangley Point Authority, hereinafter referred to as the SPA, is 
hereby created to manage and operate, in accordance with the provisions of this 
Act, the Sangley Point International Logistics Hub. 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. 
Section. 6. Powers and Functions of the Sangley Point Authority. - The 
Sangley Point Authority shall have the following powers and functions: 
(a) To adopt, change, 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 in 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 the 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 Hub subject 
only to such rules and regulations as SPA may promulgate 
from time to time in conformity with the provisions of this Act 
and the limitations provided in the Constitution; 


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(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 Hub 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 and ports 
operations in coordination with the Civil Aeronautics Board 
and Philippine Ports Authority, 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 Hub 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 Hub; 
(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 Hub, 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 SPA; 
(9) To form, establish, organize and maintain subsidiary 
corporations, as its business and operations may require, 
whether under the laws of the Philippines or not; 
(h) To adopt, implement and enforce reasonable measures 
and standards to control pollution within the Hub; 


6 
(i) To provide security for the Hub in coordination with the 
national and local governments. For this purpose, SPA may 
establish and maintain its own security force and firefighting 
capability or hire others to provide the same; 
(j) 
To plan, program and undertake the adjustment, 
relocation, or resettlement of population within the Sangley 
Point military reservations and their extensions as may be 
deemed necessary and beneficial by the SPA, in 
coordination with the appropriate agencies and local 
government units. 
(k) 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 
(I) 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. 
Section 7. Board of Directors of SPA. - The powers of the Sangley Point 
Authority shall be vested in and exercised by a Board of Directors, hereinafter 
referred to as the Board, which shall be composed of nine (9) members, to wit: 
Chairman: 
Chairman of the Philippine Reclamation 
Authority 
Mayor of Cavite City or his authorized 
representative 
Secretary : Department of Transportation 
and Communication or his authorized 
representative 
Secretary 
: Department of 
National 
Defense or his authorized representative 
Director General : National Economic and 
Development Authority or his authorized 
representative 
Co-Chairman: 
Members: 


Secretary : Department of Trade and 
'Industry or his authorized representative 
Secrefaly : Department of Environment 
and Natural Resources or his authorized 
representative 
Secretary : Department of Public Works 
and 
Highways 
or 
his 
authorized 
representative 
Director General : Philippine Economic 
Zone 
Authority 
or 
his 
Authorized 
representative 
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 andlor 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 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 (PlO,OOO.OO) for 
every Board meeting. 
Section 8. Administrative and Chief Executive Officer. - The President of 
the Philippines shall appoint a full-time professional and competent administrator 
and chief executive officer for the SPA whose compensation shall be determined 
by its Board and shall be in accordance with the revised compensation and 
position classification system. The administrator as chief executive officer of SPA 
shall be responsible to the Board and the President of the Philippines for the 
efficient management and operation of the Hub. 
Section 9. Capitalization. - 
The SPA shall have an authorized capital stock of 
two billion pesos (P2,000,000,000)divided into 200,000,000 with a minimum 
issue value of Ten pesos (P10.00) per share. 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 SPA 


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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 SPA. The Board of Directors of SPA, 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 SPA 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 SPA. 
Section I O .  Supervision. - The Hub shall be under the direct control and 
supervision of the Office of the President of the Philippines for purposes of policy 
direction and coordination. 
Section 11. Relationship with the Local Government Units - In case of any 
conflict between the Hub and the local government unit totally or partially 
embraced within the Hub, on matters affecting the Hub, other than in defense 
and security matters, the decision of SPA shall prevail. 
Section 12. Legal Counsel. - 
The SPA and the corporations in which SPA 
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 SPA may engage the 
services of an outside counsel either on a case to case basis or on a fixed 
retainer. 
Section 13. Auditor. -The Commission on Audit shall appoint a representative 
who shall be a full-time auditor of the SPA 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 SPA. 
Section 14. Mechanism for those affected by the Conversion. - There shall 
be designated a relocation for affected military camps and other facilities, either 
within the Sangley Point Area or outside, consistent to existing laws, and 
regulations. Provided further that an appropriation to support the relocation cost 
of the combined facilities of the Philippine Navy and the Philippine Air Force 


9 
which shall come from the proceeds of the lease, joint venture and transactions 
entered into by the Authority. 
Section 15. 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. 
Section 16. Repealing Clause. - 
All laws, executive orders or issuances, or 
any parts thereof which are inconsistent herewith are hereby repealed or 
amended accordingly. 
Section 17. Effectivity Clause. - 
This Act shall take effect fifteen (15) days 
upon its publication in at least two (2) newspapers of general circulation. 
Approved,