13TH CONGRESS OF TE-IE REPUBLIC) 
OF THE PHILIpPlNES 
) 
First Regular Session 
) 
Introduced by Sen. Magsaysay, Jr. 
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EXPLANATORYNOTE 
Six years since the approval by Congress of the Armed Forces of the Philippines 
(AFP) Modernization Program (hereafter referred to as the “Program”) through Joint 
Resolution No. 28, the implementation of Republic Act No. 7898, otherwise known as 
the “AFP Modernization Act,” lags behind its self-imposed schedule and leaves much to 
be desired. While the gallant men and women of the AFP are exerting every effort to 
implement the Program, their heroic efforts are doomed to fail if the necessary finding is 
not forthcoming. Six years since the approval of the Program, only about Sixteen Billion 
Pesos has actually been allocated for its implementation, Five Billion Pesos of which is 
not even fimded. This amount falls dramatically short of the Fifty Billion Pesos ceiling 
that the law provides for the first five years of Program implementation. 
Creativity on the part of the AFP and Department of National Defense leaderships 
to try to bridge this finding gap can only do so much. Congress, and indeed, the entire 
government must provide equally creative solutions if the objective behind the Program - 
namely, to modernize the AFP to a level where it can effectively perform its 
constitutional duty as protector of the State and the people - is to be achieved within the 
time frame that Congress approved. It is in this context of trying to provide such creative 
solutions that this bill is being proposed. 
There are undeniably other equally important social needs that compete with 
national defense and security for finding from the national coffers. The solution that this 
proposed measureseeks to provide would not make the Program compete with other 
social S%ds for a share !?om revenues generated by the government. It would instead 
result in the more judicious utilization of military camps and reservations (hereafter 
referred to as “military real estate”) and at the same time help ensure funding for the 
Program. 
This proposed measure authorizes the President of the Philippines to identify 
military real estate or parts thereof that could be disposed of and/or commercially 
developed to raise knds for the Program. It would be noted that Congress has already 
included the proceeds of the disposal of such real estate among the sources of the Trust 
Fund when it passed the AFP Modernization Act. In identifying which real state to 
include in the list of disposable military real estate, the President would be guid d by the 
criteria for disposability that this bill contains. 
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To undertake the disposal and manage the development of military real es ate, this 
bill proposes the creation of a Military Real Estate Development Authority (hereafter 
referred to as “Development Authority”). 
The Development Authority will be 
corporation whose capital stock may be wholly subscribed by the Philippine government, 
which subscription will be paid up basically by the transfer of the disposable military real 
estate to said corporation. The Secretary‘ of National Defense will chair its Board of 
Directors in recognition of the Secretary’s role as administrator of the Trust Fund. The 
President of the Development Authority shall be Vice Chair of the Board, The seven 


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Members of the Board shall come from the private sector, including the academe. The 
President of the Philippines will appoint the Development Authority President and the 
members from the givate sector for a term of six years. The Development Authority will 
not be Gbsidized by the national'government but will be entitled to use seven and a half 
percent (7.5%) of the proceeds of every transaction involving military real estate for its 
operating budget. 
As a transitory provision and to ensure the immediate disposal and/or commercial 
development of military real estate, the bill allows the Development Authority to enter 
into asset management contracts (AMCs) with either government agencies or the private 
sector. The authority to enter into AMCs, however, would only be for the first five years 
of the Development Authority's existence. It is expected that duriTg such time, it will 
build up its core competency in the field of asset management and development. If after 
this period the Board of Directors determines that the Development Authority ill does 
not have sufficient capacity to undertake the management and/or developme t of its 
assets, an extension of another five years is allowed. But the bill centains an ,bsolute 
prohibition against entering into AMCs ten years after the Development J 
Au honty's 
establishment. This prohibition is obviously designed to provide 
~ the Development 
Authority an incentive to build up its expertise. 
The proposed measure provides that the disposal of a piece of bilitary real estate 
will be done in accordance with pertinent rules and regulations to gkt its best possible 
value. As a contingency measure, the bill allows the Development Authority an option if 
the prevailing real estate market indicates that the best possible value for a piece of real 
estate will not be obtained through outright sale. Thus, the Development Authority is 
allowed to instead convert said real estate into commercial uses or enter into commercial 
arrangements over said real estate such as, but not limited to, leases, joint ventures and 
any of the build-operate-transfer (BOT) schemes. Cognizant of the urgent funding needs 
of the Program, the bill enjoins that the disposal and/or commercial development of 
military real estate should be undertaken with appropriate haste. 
The big shortfall in funding for the Program imbues this bill with a clanging note 
of urgency. 
To demonstrate once again the commitment of Congress to the 
modernization of the AFP, the immediate passage of this bill is earnestly and respectfully 
sought. 
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13” CONGRESS OF THE REPUBLIC) 
OF THE PHnlPPINES 
1 
Introduced by Sen. Magsaysay, Jr. 
AN ACT 
AUTHORIZING THE DISPOSAL AND/OR COMMERCIAL DEVELOPMENT OF 
CERTAIN MILITARY CAMPS AND RESERVATIONS, CREATING FO 
THE 
PURPOSE THE MILITARY REAL ESTATE DEVELOPMENT AUTH RITY, 
Be it enacted by the Senate and House of Representatives of the Philippines in ongress 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES i 
assem bled: 
ARTICLE I 
Title, Policy and General Provisions 
SECTION I. - Title. - This Act shall be known and cited as the “Military Real 
Estate Development Act.” 
SEC. 2. Declaration of Policies. - It is the policy of the State to modernize the 
Armed Forces of the Philippines (AFP) to a level where it could effectively perform its 
constitutional duty as protector of the State and of the people. It is also the policy of the 
State to ensure the judicious, economical and efficient utilization of its resources to meet 
the growing demands of national development. Towards these ends, the State shall 
authorize and promote the disposal and/or commercial development of idle and 
underutilized military camps and reservations, including the immovable properties found 
therein, hereinafter collectively referred to as “military real estate,” to raise revenues to 
fund the implementation of the AFP Modernization Program under Republic Act 
Numbered Seventy-Eight Hundred and Ninety-Eight @.A. No. 7898), otherwise known 
as the AFP Modernization Act. 
SEC. 3. Criteriafor Dzsposubility - To be declared alienable and disposable’and 
be included in the list of military real estate that shall be submitted to the President of the 
Philippines for appcoval in accordance with Section 22 of this Act, a piece of military real 
estate m-a part thereofmust meet the following criteria: 
(a) 
It is currently idle or underutilized and its disposal or commercial 
development would maximize its utilization; 
The revenues projected to be generated by its disposal or commercial 
development are considerably greater than the costs of relocating and/or 
replicating the military facilities and installations that currently occupy it, if 
there are any; 
(b) 


(c) 
Its disposal or commercial development would not adversely affect its 
strategic importance to national defense; and 
When necessary, an alternative location is available for the purpose it 
currently serves 
(d) 
SEC. 4. Authority of the President to Amend List of Disposable Military Real 
Estate. - The President of the Republic of the Philippines may, when national interest so 
requires and upon the recommendation of the Secretary of National Defense, amend the 
list of alienable and disposable military real estate covered by this Act: Provided, 
however, That in case the amendment pertains to the inclusion of additional military real 
estate to the list, such real estate must meet the criteria in the immediately preceding 
Section and its ownership shall be transferred by the President of the Philippines to the 
Development Authcrity 
.- . created under Section 6 hereunder. 
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SEC. 5. Manner of Disposal. - The sale or disposal of military real estate or a part 
thereof identified in accordance with Section 3 of this Act shall be done in accordance 
with existing laws, rules and regulations governing sales of government properties to get 
their best possible value. Such disposal shall be undertaken with the haste appropriate 
with the hnding needs of the AFP Modernization Program and in accordance with the 
schedule approved by the President. In the exercise of sound business judgment and 
taking into consideration prevailing real estate market conditions, the Development 
Authority created pursuant to Section 6 hereof may opt to instead convert a piece of 
military real estate or a part thereof into commercial uses or enter into co 
arrangements such as, but not limited to, leases, joint ventures and 
(BOT) and similar schemes under Republic Act Numbered 
Fifty-Seven (R.A. No. 6957), as amended, for the purpose of 
value of said real estate. 
ARTICLE TI 
Creation, Powers and Responsibilities of 
The Military Real Estate Development Authority 
SEC. 6. The Military Real Estate Development Authority. - There is hereby 
created a body corporate to be laown as the Military Real Estate Development Authority, 
hereinaRer referred to as the "Development Authority," which shall have the attribute of 
perpetual succession and shall be vested with the powers of a corporation. 
It shall be organized within thirty (30) days after approval of this Act. It shall 
have a term of fifiy (50) years from its organization: Provided, That Congress may 
dissolve the Development Authority whenever in its judgment the primary purpose for its 
creation has been accomplished. It shall establish its principal office in Metropolitan 
Manila unless otherwise provided by the Development Authority and may put up such 
branches as may be necessary. 
SEC. 7. Purposes of the Development Authority,. - The Development Authority 
shall have the following purposes: 
(a) To raise revenues for the AFP Modernization Program by owning, holding, 
managing, developing andor disposing of the military real estate identified in 
accordance with Section 3 of this Act and transferred to it by the President of 
the Philippines; 
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-. - (61 To adopt, prepare and implement a comprehensive development and/or 
disposal plan that shall include detailed relocation andlor replication plans for 
affected facilities and installations, if any, for each of the real estate identified 


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under Section 3 of this Act and those that may be subsequently added by the 
President of the Philippines pursuant to Section 4 hereof; 
(c) To encourage the active participation of the private sector in the development 
and/or disposal of military real estate; and 
(d) To serve as the holding company of the subsidiary company or companies 
that may be created pursuant to Section 13 of this Act. 
SEC. 8. Powers of the Development Authority. - To achieve its purposes under 
this Act, the Development ,Authority is hereby vested with the following powers: 
(a) To succeed in its corporate name, to sue and be sued in such corporate name 
and to adopt, alter and use a corporate seal which shall be judicially noticed; 
(b) To adopt, amend and repeal its bylaws; 
(c) To enter into, make, perform and carry out contracts of every class, kind and 
description which are necessary or incidental to the realization of its purposes 
-. . with anyperson, firm, or corporation, private or public, local or foreign, and 
with foreign government entities; 
(d) To contract for loans, indebtedness and credit, and issue commercial papers 
and bonds, in any local or convertible foreign currency from international 
financial institutions, foreign government entities, and local or foreign private 
commercial banks or similar institutions under tenns and conditions 
prescribed by law, rules and regulations; 
(e) To execute any deed of guarantee, mortgage, pledge, trust or assig ment of 
any of its properties for the purpose of financing the programs and projects 
deemed vital for the early attainment of its goals and objectives, subje t to the 
provisions of existing laws, rules and regulations; 
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(f) To construct, own, lease, operate and maintain public utilities as well as 
infrastructure facilities; 
(8) To reclaim or undertake reclamation projects as it may deem necessary in 
areas adjacent to the Development Authority’s real estate identified pursuant 
to Section 3 of this Act either by itself or in collaboration with the Public 
Estates Authority (PEA) established under Presidential Decree No. 1084, as 
amended; 
(h) To acquire, own, hold, administer, and lease real and personal properties, 
including agricultural lands, property rights and interests and encumber, lease, 
mortgage, sell, alienate or otherwise dispose of the same at fair market va1ue;:it 
may deem appropriate; 
(i) To accept donations, grants, bequests and assistance of all kinds from local 
and foreign governments and private sectors; 
(i) To invest its funds and other assets in such areas it may deem wise; 
(k) To maintain a provident hnd which consists of contributions made by both 
the Development Authority and its officials and employees or their heirs 
under such terms and conditions as it may prescribe; 
(1) To exercise the right of eminent domain; 


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(m)To promulgate all necessary rules and regulations; and 
(n) To perform such other powers as may be necessary and proper to cam out 
the purposes of this Act. 
SEC. 9. Capitulizatioi~. - The Development Authority shall have an authorized 
capital of One Hundred Billion Pesos (Pl00,000,000,000) which may be fully subscribed 
by the Republic of the Philippines and shall be paid up by the transfer to the 
Development Authority of real estate valued in such amount, as provided for in Section 
23 of this Act. 
The amount of One Hundred Million Pesos (PlOO,OOO,OOO) is hereby appropriated 
out of any funds in the National Treasury not otherwise appropriated, as initial operating 
capital of the Development Authority, which shall be covered by preferred shares of the 
Development Authority retireable within two (2) years. In the event that no such 
unappropriated funds exist in the National Treasury, the initial operating capital of the 
Development Authority shall be taken &om the share of the AFP in the proceeds of 
transactions of the Bases Conversion Development Authority covering Metro Manila 
military camps and reservations pursuant to Republic Act Numbered Seventy-Two 
Hundred Twenty-Seven (R.A. No. 7227), as amended. 
SEC. 10. Board of Directors. - The poers and functions of the Development 
Authority shall be vested in and exercised by the Board of Directors to he composed of 
nine (9) members, as follows: 
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_c . 
(a) The Secretary of National Defense who shall be the ex oflcio Chair of the 
Board without compensation; 
(b) The President of the Development Authority who shall serve as Vice Chair of 
the Board and who shall be appointed by the President of the Philippines for a 
term of six (6) years; and 
(c) Seven (7) members from the private sector, three (3) of whom shall be 
nominated by the Armed Forces of the Philippines through the Dep ment of 
National Defense, to be appointed by the President of the Philippi es for a 
term of six (6) years: Provided, That the remaining four (4) shall co e from 
different sectors, including the academe: Provided, further, That oft ose first 
appointed, the three (3) nominees of the AFP shall serve for a peri d of six 
next two for two (2) years. In case of vacancy in the Board, the appointee 
shall serve only the unexpired portion of the predecessor’s tern. 
(6) years, the first two from the different sectors for four (4) years, \ 
and the 
No person shall be appointed unless he or she is a natural-born Filipino citizen, 
of good moral character, of recognized competence in relevant fields including, but not 
limited to, economics, management, law or engineering, and shall be at least thirty-five 
(35) years of age. Unless the context indicates otherwise, the use of the term “Member” 
or “Members” in this Act shall be construed as including the Chair and Vice Chair of the 
Board. 
All procedural matters in the conduct of board meetings shall be prescribed in its 
internal rules. 
Members of the Board shall receive a per diem of not more than Five Thousand 
Pesos (S,OOO) for every board meeting: Provided, however, That the per diem collected 
per month does not exceed the equivalent of four (4) board meetings regardless of the 
actual number of meetings attended: Provided &?her, That the amount ofper diem for 


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every board meeting may be increased by the President but such amount shall not 'be 
increased within two (2) years from the passage of this Act or from its last i crease. 
Members of the Board shall be reimbursed by the Development Authority fo actual 
expenses, including traveling and subsistence expenses, incurred by them in the 
performance of their duties. 
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In addition to the prohibitions contained in Republic Act No. Sixt -Seven 
Hundred and Thirteen (R.A. 6713), Members of the Board shall be disqualified from 
holding any office, position or employment in any corporation or entity engaged in the 
same line of business as the Development Authority, unless such office, position or 
employment is required by Section 13 of this Act or otherwise connected with their 
membership in the Board. Moreover, no Member of the Board shall have financial or 
pecuniary interest, directly or indirectly, in any business contract or transaction entered 
into by the Development Authority or in any privilege granted by it. Neither shall a 
Member have any interest, financial or otherwise, in any undertaking or business with an 
inherent conflict of interest with the Development Authority. Any Member of the Board 
with an existing personal or pecuniary interest in any matter in the agenda of the Board 
shall disclose such interest to the Board and shall retire from the meeting when the 
matter is taken up, The decision taken on the matter shall be made public. The minutes 
shall reflect the disclosure made and the retirement of the Member concerned from the 
meeting. 
SEC. 11. Fu?icfions of the Board. - The Board of Directors shall be the policy- 
making body of the Development Authority and shall perform the following functions: 
(a) Carry out the purposes of the Development Authority as embodied in this Act; 
(b) Adopt an annual budget for and authorize such expenditures by the 
Development Authority as are in the interest of the effective administration 
and operations of the Development Authority in accordance with applicable 
-- 
- rules andregulations; 
(c) Establish a human resource management system in accordance with Section 
19 of this Act, reorganize the personnel of the Development Authority, and 
issue such rules and regulations as it may deem necessary or convenient for 
these purposes; and 
(d) On the recommendation of the President, appoint, fix the remuneration and 
other emoluments, and remove personnel of the Development Authority, 
subject to pertinent civil service rules: Provided, That the Board shall have 
exclusive and final authority to promote, transfer, assign, or reassign 
personnel of the Development Authority and these personnel ac ions are , 
deemed made in the interest of the service and not disciplinary: rovided, 
further, That the Board may delegate such authority to the Preside t under 
such guidelines as it'may determine. 
i. 
SEC. 12. Operating Budget and Business Development Fund. - The Development 
Authority shall be entitled to retain and utilize seven and one-half percent (7.5%) of the 
gross proceeds of every transaction involving military real estate as its operating budget. 
The Development Authority may utiIize the amount equivalent to not more than twelve 
and one-half percent (2.5%) of the net proceeds of all transactions involving military real 
estate for business development purposes: Provided, however, That any unutilized 
portion of said amount shall be deposited with the AFP Modernization Act Tmst Fund 
(MATF) created under R.A. No. 7898. 
SEC. 13. Subsidiaries. - The Development Authority shall have the power to 
form, establish, organize and maintain a subsidiary corporation or corporations: 


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Provided, however, That such power shall be exercised only in the pursuit of its mandate 
of raising revenues for the AFP Modernization Program: Provided, further, That fifty 
percent (50%) of the net income of a subsidiary shall accrue to and be deposited with the 
AFP MATF within thirty (30) days from the end of said subsidiary's fiscal year. Such 
subsidiary or subsidiaries shall be formed in accordance with the Philippine Corporation 
Law and existing rules and regulations promulgated by the Securities and Exchange 
Commission, unless otherwise provided in this Act. In all cases, the Development 
Authority shall own initially at least fifty-one percent (51%) of the capital sto k of a 
subsidiary. The Development Authority shall also initially have the power to vot for the 
majority of the Board of Directors of a subsidiary, of which at least one (1) direc or shall 
be the representative of the Chair of the Development Authority and a second irector 
shall be the President of the Conversion Authority or his or her designated represe 1 
tative. 
The subsidiary or subsidiaries to be formed by the Development Authority under 
this provision shall be exempt from the coverage of Civil Service Laws, rules and 
regulations. 
SEC. 14. Supervision. - The Development Authority shall be attached to the 
Office of the President for purposes of policy direction and coordination. 
ARTICLE III 
Proceeds of Disposal andor Development 
SEC. 15. Utilization of Proceeds. - The proceeds of the disposal and/or 
commercial development of military real estate, determined pursuant to the succeeding 
Section, shall become part of the AFP MATF: Provided, That said proceeds may be used 
to pay obligations incurred under the AFP Modernization Program and whose 
amortization or repayment extends beyond the fifteen (15)- year modernization, period: 
Provided firther, That said proceeds may be used for other defense modernization and 
military development projects once the AFP Modernization Program under R.A. No. 
7898 shall have been finished. 
SEC. 16. Determination and Deposit of Proceeds. - For purposes of determining 
the amount to be deposited with the AFP MATF, or the National Treasury'once the 
obligations under the AFP Modernization Program are fully settled, the proceeds of every 
transaction involving military real estate shall be calculated by deducting all expenses 
related-to the transa-ction; the relocation and/or replication costs, if any; and the operating 
budget of the Development Authority computed in accordance with Section 12 of this 
Act. M e r  deducting the percentage share of the Development Authority for business 
development purposes pursuant to Section 12 hereof, the proceeds shall be deposited with 
the AFP MATF or with the National Treasury, as the case may be, not later than thirty 
(30) days from the time the amount of the proceeds is determined as herein provided but 
in no case shall such deposit be made later than sixty (60) days from the time the funds 
were received by the Development Authority. 
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SEC. 17. Funding for Relocation/Replication. - Funding for the relocati 
replication of facilities and installations, if there are any, occupying military 
disposed of or developed in accordance with this Act shall come from the 
disposal or commercial development, as the case may be. 
Development Authority and the AFP shall jointly determine the 
to be earmarked for relocation andor replication prior to the 
piece of military real estate or a part thereof. 


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ARTICLE IV 
Management and Personnel 
SEC. 18. Duties and Responsibilities of 
the President of 
the Development 
Authority. - The President of the Development Authority shall have the following duties 
and responsibilities: 
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(a) To act as Chief Executive Officer of the Development Authority; 
(b) To execute, administer and implement the policies and measures approved by 
the Board; 
(c) To direct and supervise the operations and administration of the Deve opment 
Authority: Provided, That the President may delegate certain admin strative 
responsibilities to other officers of the Development Authority, subje t to the 
rules and regulations to be issued by the Board; 
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, 
(d) To represent the Development Authority in all dealings with offlces, agencies, 
and instrumentalities of the Government and with all persons and entities, 
public or private, domestic or foreign; 
(e) To direct and supervise the preparation of the agenda for the meeting of the 
Board, and to submit for the consideration of the Board such policies and 
measures as he or she believes necessary to carry out the purposes of this Act; 
and 
(9 To exercise such other powers and functions the bylaws may provide and the 
Board may vest in him or her. 
The President shall be assisted by a Vice-president or such number of Vice- 
Presidents and other officials as may be deemed necessary by the Board of Directors. 
During the absence or temporary incapacity of the President, or in case of vacancy or 
permanent incapacity and pending the appointment of a new President of the 
Development Authority, the Vice-president or the most senior Vice-president, as the case 
may be, shall act as President and discharge the duties and responsibilities thereof. 
SEC. 19. Human Resources. - The Development Authority shall establish a 
human resource management system which shall govern the selection, hiring, 
appointment, transfer, promotion, or dismissal of all personnel. Such system shall aim to 
attract and retain professionally competent, well-trained, honest, courteous and efficient 
personnel and to- establish professionalism and excellence at all levels of the 
Develo$pCment Authoyity in accordance with sound principles of management. 
All positions in the Development Authority shall be governed by a compensation 
and position classification system and qualification standards approved by the Board 
based on a comprehensive job analysis and audit of actual duties and responsibilities. 
The compensation plan shall be comparable with the prevailing compensation plan in 
government financial institutions and shall be subject to periodic review by the Board no 
more than once every two (2) years without prejudice to ycarly mcrit reviews or increases 
based on productivity and efficiency. The Development Authority shall, therefore, be 
exempt from laws, rules and regulations on compensal.ion, position classific 
qualification standards. The Development Authority shall, however, 
its system conform as closely as possible to the principles under the 
Position Classification Act of 1989(Republic Act Numbered 
FiAy-Eight, as amended). 


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SEC. 20. Ex Oficio Legal Coumel. 
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Without prejudice to the hiring of an 
outside counsel, the Government Corporate Counsel shall be the ex offio legal counsel.'" 
of the Development Authority and the subsidiaries wherein the Development Authority 
owns the majority of the shares of stock. For this purpose, the Government Corporate 
Counsel may designate a full time representative in the Development Authority. 
SEC. 21. Auditor. - The Commission on Audit shall appoint a representative who 
At its discretion, the 
shall be the full time auditor of the Development Authority. 
Development Authority~ may also hire an external auditor. 
ARTICLE V 
Transitory and Sunset Provisions 
SEC. 22. Submission of List of Disposable Military Real Estate. - Within sixty 
(60) days from the passage of this Act, the Secretary of National Defense shall, upon the 
recommendation of the Chief of Staff of the Armed Forces of the Philippines, submit to 
the President of the Philippines for approval the list of alienable and disposable military 
real estate to be covered by this Act in accordance with Section 3 hereof. Such list shall 
clearly indicate the boundaries and technical description of each piece of milit ry real 
estate; the legal basis for the government's ownership; its existing condition an use, if 
any; and the proposed schedule of disposal. The list may indicate the military re 1 estate 
or parts thereof that are prioritized for disposal in view of the immediate funding eeds 
.
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of 
the AFP Modernization Program. 
a 
SEC. 23. Transfer ofproperlies. - Pursuant to paragraph (a), Section 7 of this 
Act, the President of the Philippines shall transfer forthwith to the Development 
Authority ownership over the alienable and disposable military real estate upon approval 
of the submitted list as required in the immediately preceding Section. 
SEC. 24. 'Auihorig to Enter Inio Asset Management Contiacts. - (a) Dunng the 
first five (5) years of its establishment, the Development Authority may enter into Asset 
Management Contracts (AMCs) or similar arrangements for the management of all or a 
part or some parts of military real estate covered by this Act. After said period and the 
provisions of Section 8 of this Act to the contrary notwithstanding, no AMCs or similar 
arrangements shall be entered into or renewed unless the Board of Directors, has 
determined that the Authority still does not possess sufficient capability to manage said 
military real estate. In no case shall AMCs or simillar arrangements be entered into after, 
or be effective beyond, ten (10) years after the establishment of the Authority. 
(b) In case the AMC or similar arrangement is to be entered into with the private 
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sector, the contract shall be awarded in accordance with laws, rules and regulations 
governing the award of similar contracts in the interest of transparency, economy, 
efficiency and equity: Provided, That to be entitled to the award of the contract, the 
private contractor must demonstrate its capability to manage or develop real estate by 
showing that it has successhlly run a similar business for at least five (5) years. 
SEC. 25. Sunset Provisions. - At the end of its corporate existence, the 
Development Authgity shall liquidate its assets and the remainder, if any, shall be used 
in accoiaance with the provisions of Section 15 of this Act. 
ARTICLE VI 
Miscellaneous and Final Provisions 
SEC. 26. Injunction and Restraining Order. - The disposal and/or commercial 
development of the military real estate covered by this Act are urgent and necessary and 
shall not be restrained or enjoined except by an order issued by he Supreme Court of the 
Philippines. 


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SEC. 27. Repovtorial Requivements. - The Board of Directors of the Development 
Authority shall submit an annual report of operations to the President of the Republic of 
the Philippines, the President of the Senate and the Speaker of the House of 
Representatives within the first quarter of the immediately succeeding year. Such report 
shall include an account of the revenues it generated as well as the remittances made t? 
the AFP MATF or the National Treasury, as the case may be. 
SEC. 28. Separability Clause. - If for any reason, any section or provision of this 
Act is declared invalid or unconstitutional, the other sections or provisions hereof, 
unaffected thereby, shall continue to be in full force and effect. 
SEC. 29. Repealing Clause. - All laws, executive issuances or parts thereof 
inconsistent with this Act are hereby repealed or amended accordingly. 
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SEC. 30. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved,