SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATfi: 
) 
) 
) 
.§y~n'l'ltj;' 
~~)!fl;r trf HII' i}"nztsN! 
Tl JUL -1 
P 1\ :22 
:'~w:~(: 
" 
----------------------------------------------------
S.B. No. 
182 
Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
In line with the gevernment's cencerted effert to. promete ecenemic referms, it 
has beceme an undeclared pelicy ef the gevernment to. exhaust all pessible means to 
suppert the country's centinued search fer genuine sustainability, To achieve this end, 
there is a need, ameng others, to provide infrastructures for more efficient and cheaper 
transportation of inputs and outputs ef industrial geeds, 
One ef the majer prejects that is necessary is the previsien ef an internatienal 
centainer pert complex which will include an airpert and seaport, This facility can best 
be achieved threugh cenverting the US Naval Sangley Peint lecated in Cavite City into. 
such a cemplex. 
U,S, Naval Station Sangley Peint was a majer ship-repair and supply facility ef 
the United States Navy, which occupied the northern pertion ef the Cavite City 
peninsula and is surrounded by Manila Bay, approximately eight miles seuthwest of 
Manila, the Philippines, Up until World War II, the station was headquarters ef the U,S, 
Asiatic Fleet The naval statien was turned ever to. the Philippine gevernment in 1971, 
At present, Sangley Peint is being used by the Philippine Navy fer ship repair and dry 
decking purpeses. 
Sangley Peint has the fellewing comparative advantages and potentials for 
grewth: A bay lecatien that prevides petential fer sea transpert, existing air and pert 
facilities which ceuld be upgraded and impreved, it has a military airport which has a 
cencrete runway ef 229 x 22 meters, and read links, which previde access to Manila 
and CALABARZON grewth cerriders. 
It now becomes imperative that such netable advantages ef Sangley Peint be net 
taken for granted. The econemic epportunity that Sangley Point effers to the country 
must net be put to waste, especially new that the country is in continueus search of 
pessible springbeards for ecenomic take-eff. 
This bill seeks to. convert the almest idle but very premising facility of Sangley 
Point into. an internatienal logistics hub to facilitate further economic growth and social 
develepment ef the Province ef Cavite and the Philippines, in general. 
In this light, the passage ef this bill is earnestly sought. 
~G 
REVILLA. JR. 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
'13 
JUL -1 P4:22 
SENATE 
182 
S.B. No. _ ..... _-"'_"-'_ 
.... 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
DIRECTING THE CONVERSION OF SANG LEY POINT IN CAVITE CITY 
INTO AN INTERNATIONAL LOGISTICS HUB 
Be it enacted by the Senate and House of Representatives of the Congress 
assembled: 
SECTION 1. Short Title. - This Act shall be known as the "Sangley Point 
Conversion Act of 2013," 
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 economic and social development 
of Cavite City in particular and the country in general. 
SECTION 3. The Sangley Point International Logistics Hub - 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 
1 


Cavite City peninsula and is surrounded by Manila Bay, approximately eight miles away 
from Manila. 
SECTION 4. 
Governing Principles. -
The Sang ley Point International 
Logistics Hub shall be managed and operated under the following principles: 
(a) Under the framework and limitations of the Constitution and the 
applicable 
provIsions 
of 
the 
financial, 
investment, 
and 
tourism/recreational 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 
retirement/residential 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 
2 


the Sang ley Point 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; 
(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 
(US$150,OOO) 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 herel::>y 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 Sang ley 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. 
3 


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 forei9ner acquirin9 
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 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 
4 


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; 
(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; 
5 


(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; 
(g) 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; 
(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; 
U) 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. 
6 


(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 an~ exercised by a Board of Directors, hereinafter referred to as the 
Board, which shall be composed of nine (9) members, to wit: 
Chairman: 
Co-Chairman: 
Members: 
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 
Secretary: Department of Trade and Industry or 
his authorized representative 
Secretary : 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 
7 


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 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 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 sub~cribe and 
fully pay three hundred million (300,000,000) shares of such capital stock. The initial 
i 
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 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. 
8 


Section 10. 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 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. 
9 


· . 
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; 
10