Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
Camarines Sur (CamSur) is considered a first-class province. It is one of the 
top tourist destinations in Southern Tagalog. CamSur is the largest among the six 
provinces in the Bicol Region both by population and land area. 
CamSur is undeniably one of the best economic performing provinces at 
present. In fact, the Philippine Chamber of Commerce and Industry (PCCI) cited the 
Provincial Government of Camarines Sur as the Most Business Friendly province for 
three consecutive years. In 2007, the province moved from 39th poorest to 10th richest 
province in terms of income and equity1. Moreover 2009, CamSur earned a 
Presidential Citation for Best Practice for Creating a Business Enabling Environment. 
It is the only local government unit in the country to be given such recognition. In 2010, 
CamSur was the first local government unit to enact a Public-Private Partnership 
ordinance.    
In terms of agriculture, CamSur ranked first in terms of rice production growth. 
This achievement shows that there are numerous favorable factors pertaining to 
agriculture such as fertile land, good climate, abundant water supply, experienced 
labor force, and the application of key agriculture-related technologies.    
In the field of tourism, CamSur is hailed as the sports and adventure capital 
tourism capital of the Philippines. In 2006, the province embarked on a mission to 
develop its tourism industry. In a span of only four years, it emerged as the number 
one province in terms of tourist arrivals in the country, surpassing Metro Manila 
and Cebu. The province reigns as the number one tourist destination in the 
Philippines according to the Philippine Statistics Authority in 2011 and by 2015, 
CamSur became the most visited province in Bicol with over 2.06 million tourist 
arrivals.   
1 Commission on Audit report 
August 16, 2022
2:32 pm
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CamSur also leads in environmental awareness and protection policies. Its 
various climate change adaption measures earned national attention. In 2013, the 
province was recognized in the book, Climate Change Adaptation: Best Practices in 
the Philippines, for CamSur’s efforts to save the environment through the El Verde 
Movement — a project aimed to rehabilitate denuded forests and plant 40M by year 
2020. Moreover, CamSur is developing renewable energy generation projects, 
including solar power facilities that can supplement the power requirements in the 
province.     
This bill seeks to have the Municipalities of Pili and Milaor in Camarines 
Sur declared as Special Economic Zone or the CAMSUR SPECIAL ECOZONE.  
CAMSUR SPECIAL ECOZONE overcomes all the difficulties faced by other 
areas that previously sought special economic zone declaration. It is worth mentioning 
that Cam Sur already has two operational and successful economic zones that created 
jobs, generated income, attracted investments and engendered technology transfer 
for the province. This gives CamSur a significant advantage over other applicants as 
the proposed ecozone’s profitability is already established. Moreover, CAMSUR 
SPECIAL ECOZONE strictly meets all the following requisites for the establishment of 
economic zones under Section 6 of Republic Act (RA) No. 7916 or the Philippine 
Economic Zone Authority (PEZA) Law, as amended by RA 8748 or the Special 
Economic Zone Act:     
(1) Existing Economic Zones —
a. IT PARK. The Camarines Sur Information Technology Park (CSTIP) is
the first IT Park in the country that is owned and managed by the Local
Government Unit (LGU), the province of Camarines Sur. It is the first IT
Park in the Bicol Region to be declared by the Philippine Economic Zone
Authority (PEZA) as a Special Economic Zone under Presidential
Proclamation No. 850 issued on 27 May 2005.
The five-hectare park is located within the Provincial Capitol Complex in 
Cadlan, Pili, Camarines Sur, Philippines. The CSITP’s flagship 
enterprise is also the first LGU-run digital animation center — CamSur 
Animation Studio (CAS). Among the notable productions of CAS is the 
first full-length Filipino digital animation film, “Dayo,” shown in 2008. It is 
currently doing international projects including Hollywood animation 
productions.   
b. TOURISM ZONE. On 29 October 2009, Presidential Proclamation No.
1932 designated several parcels of land of the public domain situated
within the Capitol Complex in Cadlan, Pili and Maycatmon, Milaor,
Camarines Sur, as Tourism Economic Zone pursuant to RA 7916 as
amended. The tourism zone includes the CamSur Watersports Complex
(CWC) considered the “best wakeboard park in the world”.
(2) Existing infrastructure. The province is accessible by air, rail, land and
has an advanced connectivity infrastructure.
a. Air. The proposed area to be declared as Special Economic Zone
(Provincial Capitol Complex of Camarines Sur) is a 5–minute ride
from the Naga Airport. In 2015, the National Economic and


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Development Authority (NEDA) approved the development of the 
airport. The Naga Airport Development Project, a PhP3.533B-
approved national project, involves the reorientation of the runway, 
and construction of new landslide and airside facilities. 
b. Rail. The proposed area to be declared as Special Economic Zone
can also be reached via Philippine National Railway system.
Currently, PNR trains are being upgraded and the national
government lodged PhP2.3B for the PNR North-South projects —
this development shall also serve as one of the main transportation
systems for import and export of goods in CamSur.
c. Land. The proposed area to be declared as Special Economic Zone
is connected to network of good roads that crisscrosses the CamSur
countryside and interconnects the municipalities together. Several
bus companies regularly ply the Naga-Manila route, and the city is
the hub of transportation in the province as well as in the region.
Camarines Sur Expressway Project. In 2014, the Provincial 
Government of Camarines Sur initiated the CamSur Expressway 
Project and is now a priority PPP project with an estimated budget of 
PhP2.251B. The tollway has an approximate length of 15.20 
kilometers that will provide an alternative route to motorists who 
travel as far as Mindanao in the South and vice versa, using and 
passing through existing national road in CamSur particularly in Naga 
City and Pili, the center of tourist activities in the proposed CamSur 
Special Economic Zone.    
d. Information Highway. The proposed CamSur Special EcoZone
where the Camarines Sur Information Technology Park is located
offers state-of-the-art connectivity infrastructure, with current
capacity of STM1 (77xE1 or 155mbps, expandable to 10GB transport
capacity. CamSur provides current and potential IT Park locators with
free client specific training to suit their requirements.  The different
kinds of training offered in CSTIP include: (1) voice-related skills
(telephone handling, accent training, et al); (2) medical and legal
transcription; (3) accounting; (4) legal services; (5) English language
proficiency; (6) Japanese language proficiency; and (7) animation
(2D and 3D).
(3) Developed and vacant lands. With the availability of over 355 hectares of
land, the CamSur Special Economic Zone has the extent of developed and
vacant lands available for industrial and commercial development and future
expansion of the proposed ecozone as well as lands adjacent to the
ecozone available for development of residential areas for the ecozone
workers.
CamSur Capitol Complex. The CamSur Capitol Complex where the 
proposed CamSur Special EcoZone is proposed to be located shall be the 


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region’s center of development. As a mixed-use facility, it would 
accommodate a variety of business and operations.  
(4) Available sources. The CamSur Special EcoZone equally meets the power
requirement and water resources to supply to the proposed ecozone. For
electrical power, it has a direct feed from power station and an
uninterruptible standby power within the proposed ecozone.
As previously mentioned, the proposed ecozone has an existing state-of-
the-art fiber connectivity. It is already served by 3 internet service providers: 
(i) Philippine Long Distance Telecommunications (PLDT); (ii) Globe, and (iii)
Bayan Telecommunications (BayanTel).
(5) 24/7 Security. CamSur provides for 24/7 security within the proposed
ecozone which can easily curtail smuggling or any other illegal activities.
(6) Knowledge and Innovation Industry. The Camsur Special EcoZone
encourages all things innovative, from technology, agriculture, to
manufacturing. The proposed special economic zone envisions a startup-
friendly economic zone. It shall provide the necessary support to talented
entrepreneurs in terms of registration, incentives, technical assistance,
accreditation and assessment.
(7) Strategic location. CALABARZON (provinces of CAvite, LAguna,
BAtangas, Rizal, and QueZON), located in southern Luzon, is the second
most densely populated region. It contributed 17.36 percent to the country's
Gross Domestic Product. In 2013, GRDP increased by 6.13 percent.
Agriculture, Hunting, Forestry and Fishing sector accounted for 6.14 percent
of the regional economy. It recorded a 3.82 percent increment in 2013.
Pursuant to this trend, economic growth is clearly developing outside Metro
Manila. As CamSur sits at the southernmost tip of Luzon, the proposed
special economic zone would logically the next economic center of the
country.
(8) Available workforce. Investment in CamSur provides access to its vibrant
and skilled, semi‐skilled and non‐skilled trainable labor force. In 2015, the
labor force is estimated at 1.2 million people. In the next few years, CamSur
will experience a surge in its population of young workers. By 2020, the
human resource base in the province is expected to rise by 120,700; the
labor force is expected to expand by another 133,700 bringing the 2025
labor force to around 1.5 million.
In addition, CamSur provides immense savings on minimum wage that can 
impact investor’s operational and capitalization costs. To illustrate, 
employees in non-agricultural sectors in CamSur are paid a minimum of 
PhP260/USD5.78 for every eight-hour work day — 44.21% cheaper than 
the minimum wage in Metro Manila.     
This bill shall promote the countryside as alternative areas for investments. The 
CamSur Special Ecozone is conceptualized as a self-sustaining, industrial, 


 
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commercial and investment center that will encourage economic growth, 
generate local employment, increase productivity and income, and uplift the 
welfare of the Bicolanos. Consequently, the declaration of CamSur Special Ecozone 
as a special economic zone will help decongest Metro Manila by providing job 
opportunities in the Bicol Region.   
 
CamSur is gaining strong momentum in the economic front. It has the 
potential to become a busy trade center in Asia. CamSur Ecozone shall be 
operated as a separate customs territory ensuring free flow and movement of goods 
and commodities in the area. This bill shall provide tax-based incentives for 
businesses operating within its premises and shall also provide for non-tax benefits 
like exchange policies and grant of permanent resident status to investors.    
 
The approval of this bill shall reinforce the precedent set by the Special 
Economic Zone established in Bataan — it was the first official economic zone in 
the Philippines through Republic Act No. 1969. The development of Bataan Economic 
Zone (BEZ), however, stagnated in the 1990s. To put a halt to the decline of the BEZ 
and allow the zone to fulfill its original mandate to become a catalyst for progress and 
development in the region as well as create employment and livelihood opportunities 
for the people, Congress passed the Freeport Area of Bataan Act (RA 9728), which 
was enacted into law in October 2009. This Act converted BEZ into the Freeport Area 
of Bataan (FAB), a special economic zone and Freeport with a dedicated authority, 
the Authority of the Freeport Area of Bataan (AFAB). 
 
Since the AFAB took over operations from the Bataan Export Processing Zone, 
the number of locators has jumped nearly 236 percent — to 92 in 2014 from 39 in 
2010. In 2012 and 2013, the FAB was recognized as the fastest growing freeport in 
the country by the National Statistical Coordination Board. RA 9728 also boosted 
Bataan investor interests and tourism capabilities. To illustrate, it generated nearly 
PhP84 billion worth of investments in the first half of 2014. Amid continuous increase 
in local and foreign investments, the number of jobs generated by projects in the 
freeport has also risen to 18,543 in 2014 year from 12,777 in 2010. 
 
Thus, it is the goal of Camarines Sur Special Economic Zone Act of 2016 to 
replicate and improve on the success of FAB and pave more way to the country's 
economic prosperity.  The early approval of this bill is earnestly requested. 
 
 
 
 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.             MIGUEL LUIS R. VILLAFUERTE   
 
 
 
 
TSUYOSHI ANTHONY G. HORIBATA  
 
 
NICOLAS ENCISO VIII 
 
 
 
 


6
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
AN ACT 
ESTABLISHING THE CAMARINES SUR SPECIAL ECONOMIC ZONE IN THE 
PROVINCE OF CAMARINES SUR, CREATING FOR SUCH PURPOSE THE 
CAMARINES SUR SPECIAL ECONOMIC ZONE AUTHOURITY, 
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. − This Act shall be known as the "Camarines Sur Special 
Economic Zone Act". 
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 
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 
through 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.  
SECTION 3. Camarines Sur Special Economic Zone. – In pursuit of the foregoing 
declared policy, a special economic zone in Camarines Sur to be known as Camarines 
Sur Special Economic Zone or CamSur Special Ecozone, is hereby established. The 
CamSur Ecozone shall cover the Municipalities of Pili and Milaor.    
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SECTION 4. Governing Principles. – CamSur Special Ecozone shall be managed 
and operated under the following principles: 
(a) Within the framework and limitations of the Constitution and applicable 
provisions of the Local Government Code, CamSur Special Ecozone shall be 
developed into a decentralized, self-reliant and self-sustaining industrial, 
commercial/trading, agro-industrial tourist/recreational, banking, financial, 
educational, knowledge-based innovation hub and investment center with the 
corresponding residential areas; 
 
(b) CamSur Special Ecozone shall continue to 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 Camarines Sur and its neighboring towns and 
cities;  
 
(c) CamSur Special Ecozone may establish 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), and the 
Department of Trade and Industry (DTI), with foreign entities or enterprises;  
 
(d) Foreign nationals and companies owned by non-Filipinos in whatever 
proportion may set up enterprises in the CamSur Special Ecozone, either by 
themselves or in joint venture with Filipinos in any sector of industry, 
international trade and commerce within the CamSur Special Ecozone; 
 
(e) CamSur Special Ecozone shall be managed and operated as a separate 
customs territory ensuring free flow or movement of goods and capital within, 
into and out of its territory; 
 
(f) CamSur Special Econzone may provide incentives such as tax and duty-free 
importations of raw materials, capital and equipment to registered enterprises 
located therein; 
 


 
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(g) CamSur Special Ecozone shall be developed as a global business center 
designed to promote investment; it shall be the foremost economic hub in the 
region; 
 
(h) CamSur Special Ecozone shall attract, encourage, build medical centers with 
a view towards medical tourism and medical research and development; 
 
(i) The areas comprising the CamSur Special Ecozone may be expanded or 
reduced when necessary. For this purpose, the Camarines Sur Special 
Ecozone Authority, which will be created under this Act, in consultation with 
the local government units (LGUs, shall have the power to acquire either by 
purchase, negotiation, or condemnation proceedings, any private land within 
or adjacent to the CamSur Special Ecozone for the following purposes: (i) 
consolidation of lands for CamSur Special Ecozone development; (ii) 
acquisition of right of way; and (iii) the protection of natural assets valuable to 
the prosperity of CamSur Special Ecozone;  
 
(j) CamSur Special Ecozone shall provide programs designed to reduce carbon 
emissions and other related policies. Parks and nature trails shall be 
developed to promote walking and the use of bicycles; 
 
(k) Forest areas within and around the CamSur Special Ecozone shall be 
proclaimed as a national park and will be covered by total log and mining ban; 
 
(l) CamSur Special Ecozone shall develop a rain-saving facility to reduce water 
consumption; 
 
(m) CamSur Special Ecozone shall develop a global educational environment, 
encourage the establishment of foreign language services and encourage 
universities and colleges to locate in the area, to create and sustain a talent 
pool;  
 
(n)  Goods manufactured by the CamSur Special Ecozone shall be made 
available for immediate retail sale in the domestic market, subject to the 


 
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payment of corresponding taxes on raw materials and other regulations that 
may be formulated by the Camarines Sur Special Economic Zone Authority, 
together with PEZA, the Bangko Sentral ng Pilipinas (BSP), the Department 
of Finance (DOF), the Bureau of Customs (BoC) and DTI in accordance with 
the National  Internal Revenue Code (NIRC) of 1997, as amended, and the 
Tariff and Customs Code of the Philippines, as amended. However, in order 
to protect the domestic industries, a negative list of industries shall be drawn 
up and regularly updated by PEZA. Enterprises engaged in industries 
included in the negative list shall not be allowed to sell their products locally; 
and 
 
(o) The Defense of CamSur Ecozone and the security of its perimeter fence shall 
be the responsibility of the national government in coordination with the 
Camarines Sur Special Economic Zone Authority and LGUs.  
 
SECTION 5. Incentives. – Investors and business enterprises within CamSur 
Ecozone shall be entitled to the following incentives:  
(a) Taxation.  Except for real property on land, no local and national taxes such 
as income tax, excise tax and franchise tax shall be imposed on business 
establishments operating within CamSur Ecozone. In lieu thereof, five percent 
(5%) of the gross income shall be paid as follows: 
(i) 
Two percent (2%) to the national government; 
(ii) 
One percent (1%) to the Province of Camarines Sur; 
(iii) 
One percent (1%) to the treasurer’s office of the municipality or 
city where the enterprise is located; 
(iv) 
One percent (1%) to the Camarines Sur Special Economic Zone 
Authority. 
 
All persons and service establishment in the CamSur Ecozone shall be 
subject to national and local taxes under the NIRC and Local Government 
Code of 1991.  
 
(b) Raw Materials Incentives. Every registered export-oriented enterprise shall 
enjoy a tax credit equivalent to the internal revenue taxes and customs duties 


 
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paid on the supplies, raw materials and semi-manufactured products; 
Provided, That the same are not sufficient in quantity, quality or are not 
competitively priced which are used in the manufacture, processing or 
production of its export products forming part thereof, exported directly and 
indirectly by the registered export-oriented enterprise, based on the actual 
taxes and duties paid for such materials/supplies/semi-manufactured 
products by the registered enterprise; Provided, further, that this incentive 
shall be waived if application for tax credit under this provision was not filed 
within one year from the date of expiration of the final product.   
  
(c) Fiscal incentives. Business establishments within the CamSur Special 
Ecozone shall be entitled to the existing fiscal incentives as provided under 
Presidential Decree No. 66 or the law creating the Export Processing Zone 
Authority (EPZA), or those provided under Book IV of Executive Order No. 
226 otherwise known as the Ominibus Investments Code of 1987, and 
Republic Act No. 7916, otherwise known as the Special Economic Zone Act 
1995 as amended by Republic Act No. 8748 (An Act Amending Republic Act 
7916, otherwise known as the ”Special Economic Zone Act of 1995”).  
 
(d) Resident status and visa. Any foreign investor who establishes a business 
enterprise within CamSur Special Ecozone and who maintains a capital 
investment of not less than One Hundred Fifty Thousand US Dollars 
($150,000.00) 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 Zone and freedom of ingress and egress to and from the 
CamSur Ecozone without any need of any special authorization from the 
Bureau of Immigration (BI); Provided, That this provision shall be without 
prejudice to any foreign national acquiring permanent residence status in the 
Philippines in accordance with the applicable immigration, retirement and 
other related laws. 
 
(e) Employment of foreign nationals. Subject to the provisions of Section 29 of 
Commonwealth Act No. 613, as amended, a registered enterprise may 
employ foreign nationals in supervisory or technical positions for a period not 


 
11
exceeding ten (10) years from registration; Provided, That when the majority 
of the capital stock of a registered enterprise is owned by foreign investors, 
the position of president, treasurer and general manager or their equivalents 
may be retained by foreign nationals beyond the set period herein and such 
officer is the owner of stockholder owning at least 10 percent (10%) of the 
outstanding capital stock of the registered enterprise and remains the owner 
or maintains his/her stockholdings therein.   
 
SECTION 6. Creation of CamSur Special Ecozone Authority. – A body corporate 
to be known as the Camarines Sur Special Economic Zone Authority, hereinafter 
referred to as the CamSur Special Ecozone Authority, is hereby created to manage 
and operate CamSur Special Ecozone, in accordance with the provisions of this Act. 
The 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. It shall be organized within one hundred eighty (180) days after the 
effectivity of this Act.  
 
The CamSur Special Ecozone Authority shall maintain its principal office in the 
Provincial Capitol Complex of Camarines Sur, but it may establish branches within the 
Philippines as may be necessary for the proper conduct of its business.  
 
SECTION 7. Powers and Functions of the CamSur Special Ecozone Authority. –
The CamSur Ecozone Authority shall have the following powers and functions:  
(a) To operate, administer, manage Camsur Special Ecozone according to the 
principles and provisions of this Act; 
 
(b) To adopt, alter and use a corporate seal, to contract, lease, buy, sell, acquire, 
own and/or otherwise dispose of movable or immovable as well as personal or 
real property of whatever nature including but not limited to shares of stock or 
participation in private corporations or in limited partnerships, or in participation 
in private corporations or in limited partnerships , or in joint ventures  with limited 
liability, bonds, precious metals in buliions, ingots and easily convertible foreign 
exchange;  
 


 
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(c) 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;  
 
(d) To raise or borrow adequate and necessary funds from local or foreign sources 
within the limitation provided by law, to finance its projects and programs under 
this Act, and for that purpose, to issue bonds, promissory notes, and other 
forms of securities, and to secure the same by guarantee, pledge, mortgage, 
deed of trust or and assignment of all part of its property or asset; 
 
(e) To recommend to the President the issuance of a proclamation to fix and delimit 
the site of CamSur Ecozone;  
 
(f) To issue certificates of origin for products manufactured or processed in 
CamSur Ecozone in accordance with prevailing rules of origin, and the pertinent 
regulations of DTI, and DOF; 
 
(g) To approve, accept, accredit, and allow any local or foreign business, enterprise 
or investment in CamSur Ecozone subject to such rules and regulations as 
CamSur Ecozone Authority may promulgate from time to time in conformity with 
the provisions of this Act and the limitations provided in the Constitution;  
 
(h) To regulate and undertake the establishment, operation and maintenance of 
utilities, services and infrastructure in CamSur Special Ecozone such as, but 
not limited to, heat, light, and power, water supply, telecommunications, 
transport, toll roads and bridges, and to fix just, reasonable, and competitive 
rates, fares, charges and prices thereof; 
 
(i) To enter into Public-Private Partnership agreements under Republic Act No. 
6957, as amended, or through a local ordinance, with the private sector, on any 
or all utilities and infrastructure required or needed for the operation and 
development of the CamSur Special Ecozone; 
 


 
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(j) To operate on its own, either directly or through a license to other tourism-
related activities, including but not limited to games, amusements, nature parks, 
recreational and sports facilities, hotels, resorts, entertainment establishments, 
duty-free shops, casinos and golf courses; 
 
(k) To establish and operate training centers for highly-skilled workers and IT 
practitioners; 
 
(l) To protect, preserve and maintain and develop virgin forests beaches and coral 
reefs and maintain the ecological balance within CamSur Special Ecozone. For 
this purpose, the rules and regulations of the Department of Environment and 
Natural Resources (DENR) and other government agencies involved shall be 
implemented by the CamSur Special Ecozone Authority; 
 
(m) To provide security for the CamSur Special Ecozone in coordination with the 
national and local governments. For this purpose, the CamSur Special Ecozone 
Authority may establish and maintain its security forces and firefighting 
capability or hire others to provide the same. In the event that an assistance of 
the military force is necessary, it shall not interfere in the internal affairs of the 
CamSur Special Ecozone Authority except to provide the necessary security 
and defense, and their expenses shall be borne by the national government; 
 
(n) To create, operate and/or contract to operate such functional units or offices of 
the CamSur Special Ecozone Authurity as it may deem necessary; 
 
(o) To operate information and communications technology-related activities 
including but not limited to startups, customer relationship management 
services, software development, e-commerce platforms, mobile apps, and 
online gaming services;  
 
(p) To issue rules and regulations consistent with the provisions of this Act as may 
be necessary to accomplish and implement its objectives and policies herein; 
and 
 


 
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(q) To exercise such powers as may be essential, necessary or incidental to the 
powers granted to it as well as those that shall enable it to carry out, implement, 
and accomplish the purposes, objectives and policies of this Act.  
 
SECTION 8. Board of Directors of the CamSur Ecozone Authority. – The powers 
of the CamSur Ecozone Authority 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 Chairman who shall also act as the administrator of the CamSur Ecozone 
Authority; 
(b) A Vice Chairman who shall come from among the members of the Board; 
(c) Members consisting of: 
i. The Governor of the Province of Camarines Sur (ex officio); 
ii. The Congressional Representatives of the district included in the CamSur 
Ecozone (ex officio); 
iii. The Mayors of the municipalities included in the CamSur Ecozone (ex 
officio); 
iv. One (1) representative from the local business sector; 
v. One (1) representative from the foreign business sector; and 
vi. Two (2) representatives of the workers/laborers in the CamSur Ecozone. 
 
The governor, congressional representatives and the mayors shall serve as ex 
officio members of the Board, whose term corresponds to their terms as elected 
officials. 
 
The Chairman and the members of the Board, except the ex officio members, 
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. The Vice Chairman shall be elected 
from among the members of the Board.   
 
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 


 
15
he is a 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. 
 
For purposes of determining a quorum during the meeting of the Board, a 
quorum shall be present despite the non-attendance of the appointed member of the 
Board whenever the latter’s duly authorized representative is present thereat, and 
attends such meeting on the member’s behalf.  
 
The members of the Board, except the Chairman whose compensation shall be 
determined by the Board, shall each receive per diem at a rate to be determined by 
the Department of Budget and Management in accordance with existing rules and 
regulations: 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 (PhP10,000.00) for every Board 
meeting.  
 
SECTION 9. Powers and Duties of the Chairman. – The Chairman shall have the 
following powers and duties:  
(a) To direct and manage the affairs of the CamSur Special Ecozone Authority in 
accordance with the policies of the Board;  
(b) To establish the internal organization of the CamSur Special Ecozone Authority 
under such conditions that the Board may prescribe; 
(c) To submit an annual budget and necessary supplemental budget to the Board 
for its approval; 
(d) To submit within thirty (30) days after the close of each fiscal year an annual 
report to the Board and such other reports as may be required;  
(e) To submit to the Board for its approval policies, systems, procedures, rules and 
regulations that are essential to the operation of the Camsur Special Ecozone 
Authority;  


 
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(f) 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 CamSur Special Ecozone Authority; and 
(g) To perform such other duties as may be assigned to him by the Board or which 
are necessary or incidental to his office.  
 
SECTION 10. Organization and Personnel. –The Board shall provide for an 
organization and staff of its officers and employees. Upon recommendation of the 
Chairman, 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: Provided, That the Board shall have exclusive and final 
authority to promote, transfer, assign or reassign officers of the CamSur Special 
Ecozone Authority, any provision of existing law to the contrary notwithstanding: 
Provided, further, That the Chairman may carry out removal of such officers and 
employees. 
 
The officers and employees of CamSur Special Ecozone Authority, 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 CamSur Special Ecozone Authority, subject to civil 
service laws and regulations, shall be removed or suspended except for cause, as 
provided by law.  
 
SECTION 11. Resolution of labor disputes. – The right of labor to form unions or 
associations shall be observed. Labor disputes shall be resolved through mediation, 
conciliation and such other modes of dispute resolution authorized by law.  
 
SECTION 12. Exemptions. – The CamSur Special Ecozone Authority is hereby 
exempted from the payment of all taxes, fees, imposts, charges, costs, and service 
fees in any court of administrative proceedings in which it may be a party.  
 


 
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The foregoing exemptions may, however, be wholly or partially lifted by the 
President of the Philippines upon the recommendation of the Secretary of Finance, 
not later than five (5) years from the effectivity of this Act, upon reasonable assessment 
that the CamSur Ecozone Authority is financially stable to pay such taxes, customs 
duties, fees and other charges after satisfying debt service requirements of the 
CamSur Ecozone Authourity and of its projected capital and operating expenditures.  
 
SECTION 13. Banking rules and regulations. – Existing banking laws and 
rules/regulations of the BSP shall apply to banks and financial institutions to be 
established in the CamSur Special Ecozone.  
 
SECTION 14. Remittances. – In case of foreign investments, a registered enterprise 
in CamSur Special Ecozone shall have the right to remit earnings from the investment 
in the currency in which the investment was originally made and at the exchange 
prevailing at the time of remittance, subject to the provisions of Section 74 of Republic 
Act No. 265, as amended.   
 
SECTION 15. Ipso Facto Clause. – Sections 30 to 41 of Republic Act No. 7916, shall 
ipso facto apply to the CamSur Special Ecozone.  
 
SECTION 16. Capitalization. – The Camsur Special Ecozone Authority shall have an 
authorized capital stock of one billion (1,000,000,000) no par shares with a minimum 
issue of Ten Pesos (P10.00) each, the majority shares of which shall be subscribed 
and paid for by the National Government and the local government units (LGUs) 
embracing the CamSur Special Ecozone. The board of directors of CamSur Special 
Ecozone Authority may, with the written concurrence of the Secretary of Finance, sell 
shares, representing not more than forty per centum (40%) of the capital stack of 
CamSur Special Ecozone Authority to the general public under such policy as the 
Board and the Secretary of Finance may determine. The National Government and 
the LGUs shall, in no case, own less than sixty per centum (60%) of the total issued 
and outstanding capital of the CamSur Special Ecozone Authority.  
 
The amount necessary to subscribe and pay for the shares of the national 
government to the capital stock of CamSur Special Ecozone Authority shall be 


 
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included in the annual General Appropriations Act. For LGUs, the funds shall be taken 
from their internal revenue allotment and other local funds.  
 
SECTION 17. Supervision. – CamSur Special Ecozone shall be under the direct 
control and supervision of the Philippine Economic Zone Authority (PEZA) for 
purposes of policy direction and coordination.  
 
SECTION 18. Relationship with the Regional Development Council. – The 
CamSur Special Ecozone Authority shall determine the development goals for 
CamSur Special Ecozone within the framework of national development plans, policies 
and goals. The Chairman shall, upon approval by the Board, submit the CamSur 
Special Ecozone plans, programs and projects to the Regional Development Council 
for inclusion and inputs to the overall regional development plan.  
 
SECTION 19. Relationship with Local Government Units. – Except as herein 
provided, LGUs comprising CamSur Special Ecozone shall retain their basic 
autonomy and identity. The Municipalities of Pili and Milaor shall operate and function 
in accordance with the Local Government Code of 1991. In case of any conflict 
between the CamSur Special Ecozone Authority and the Province of Camarines Sur 
on matters affecting the CamSur Special Ecozone other than defense and security 
matters, the decision of CamSur Special Ecozone Authority shall prevail.  
 
SECTION 20. Injunctions, restraining Orders and other interlocutory orders. The 
development of the CamSur Special Ecozone is a national government priority, and 
therefore, no injunctions, restraining orders and other interlocutory orders, which seek 
to stop or interrupt the contract entered into or project undertaken by the CamSur 
Special Ecozone Authority may be issued by any court of law or quasi-judicial body 
except the Supreme Court of the Philippines.  
 
SECTION 21. Interpretation/Construction. – The powers, authorities and functions 
that are vested in CamSur Special Ecozone Authority are intended to decentralize 
governmental functions and authority and promote an efficient and effective working 
relationship between the CamSur Special Ecozone, the national government, and 
LGUs.  


 
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SECTION 22. Auditing. – The Commission on Audit shall appoint a representative 
who shall be a full time auditor of the CamSur Special Ecozone Authority and assign 
such number of personnel as may be necessary to assist said representative in the 
performance of his/her duties. The salaries and emoluments of the assigned auditor 
and personnel shall be in accordance with pertinent laws, rules and regulations.  
 
SECTION 23. Implementing Rules and Regulations. –DTI, DOF, BIR, BI, DBM and 
the Department of Interior and Local Government (DILG) shall formulate the 
implementing rules and regulations of this Act not later than thirty (30) days upon the 
effectivity of this Act the necessary rules and regulations for its effective 
implementation. 
 
SECTION 24. Separability Clause. – If any section or part of this Act is held 
unconstitutional or invalid, the other sections or provisions not otherwise affected shall 
remain in full force and effect. 
 
SECTION 25. Repealing Clause.  – All laws, decrees, executive orders, rules and 
regulations, issuances or any part thereof inconsistent with the provisions of this Act, 
are hereby repealed, amended or modified accordingly.   
 
SECTION 26. Effectivity. – This Act shall take effect fifteen (15) days after its 
publication either in the Official Gazette or in at least two (2) national newspapers of 
general circulation. 
 
Approved,