. 
-- 
This Bill seeks to rectify existing infirmities in Republic Act 7227 which created 
the Bases Conversion and Development Authority (BCDA), as amended by Republic 
Act 7917 by harmonizing its goal of accelerated economic development in former 
military base lands with that of Republic Act 7898, which mandated the modernization of 
the Armed Forces of the Philippines (AFP). 
In passing Republic Act 7227, it was the intent of the gth Congress that 
alternative uses of military base lands in Metro Manila, and ether military reservations 
covered by the 1947 RP-US Military Bases Agreement would promote the economic 
and social development of Central Luzon and of the whole country. 
One of the 
overriding concerns at that time was the need to generate funds to modernize the AFP 
into a credible force and thus fill the void in the national defense capability which was 
created by the departure of US military forces in Clark Air Base, Subic Naval Base and 
their extensions. Thus, the law provided that the largest percentage share from the net 
proceeds of the sale of former military bases should fund the modernization of the AFP. 
However, the main mandate of the BCDA is to make money - not only from the 
sale of former base lands but also through lease and joint venture arrangements. While 
Republic Act 7898 provides that funds for the modernization of the AFP may be 
generated through the sale, lease or joint-ventures of portions of military reservations, 
the share of the AFP in BCDA controlled areas under Republic Act 7227 is limited only 
to the net proceeds of the actual land sale. Consequently, BCDA is opting more 
towards lease and joint lease and joint venture agreements to maximize its profits. This 
has the effect of cutting the AFP out of the sharing agreement and thus violates the 
primary intent of the bases conversion. 
The AFP had invested enormously in the development of military bases and 
reservations. Through the years, AFP engineers and personnel progressively built 
these bases from raw land. Many lives were lost in these projects which were often 
undertaken under adverse peace and order situations. The AFP, more than any other 
agency, has the right to an equitable share in the fruits of their development. 
Paradoxically, the AFP does not have any representation in the BCDA Board nor does it 
have any say in the decision-making process involving former base lands. The share of 
the AFP in the disposal of these bases is not proportionate to its stake, considering that 
it is the custodian and owner of these properties. 


Under Republic Act 7227, BCDA has the power to recommend to the President 
further alienation of other military installations that they may find essential for further 
development. This provision makes all AFP bases, particularly Air and Naval Stations, 
vulnerable to real estate speculations, not only from the BCDA but also from other 
government entities as well as the private sector. 
Clearly, there is a need to balance growth and development on one hand with 
national defense and security on the other hand. The AFP must strategically locate 
forces. For this reason, military bases that are strategically located and vital to forces 
readiness should be retained as such and insulated from any conversion plan. Where 
opportunities for joint-use of strategically located military bases exist, these should be 
exploited but should never be taken as an excuse to marginalize and/or obviate military 
presence in these basedcamps. 
Lest it be forgotten, the BCDA was created by a Government that was 
apprehensive of its own Armed Forces - threatened as it was by a series of coup 
attempts. Consequently, Republic Act 7227 placed under the disposal of BCDAS large 
chunks of military reservations apparently in an attempt to limit the number of military 
units that may be deployed in the NCR. The AFP was not consulted on the area they 
needed to retain in Metro Manila baseslcamps to maintain its operational capability and 
flexibility. On the other hand, Republic Act 7227 was generous to BCDA to a fault, 
failing to incorporate safeguards on what may be considered as allowable sale-related 
expenses for bases conversion and transparency in the utilization of net proceeds by 
recipient agencies as deemed appropriated by law. 
To correct these defects, the following amendments to Republic Act 7227 are 
hereby proposed. 
1. AFP shares in the proceeds of converted base lands shall be increased from 
35% to 55% of net proceeds. Republic Act 7917 which stipulates the 
distribution must be amended accordingly. 
2. There should be a cap in sale- related expenses for bases conversion. If it is 
more expensive to replicate military facilities, there is no sense in base 
conversion. 
3. The AFP shares should not be limited to the sale of former base lands but 
should include proceeds from the lease, joint ventures and other 
arrangements for the productive use of former military bases. 
4. The Bill provides for the mechanics of transferring BCDA remittance proceeds 
from the National Treasury to the AFP Modernization Trust Fund. Likewise, it 
provides that the percentage share for the National Shelter Program from the 
proceeds of bases conversion should be similarly identified. 
5. There shall be AFP/DND approval of all negotiations entered into by BCDA 
and third parties. At the moment, BCDA can technically lease former base 
lands at a token price of Pl/sq meter and it would still be considered legal. 
6. To ensure that the AFP interests are safeguarded, the DND/AFP shall have 
adequate representation in the BCDA Board and in the Special Economic 
Zones created in former base lands. 


7. Strategically located bases and stations shall be exempt from conversion and 
declared as military reservations. 
It is in this light, that the immediate approval of this bill is earnestly sought. 
STMDA 


AMENDED BY 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION I. 
Section of Republic Number 7227 is hereby amended to read as 
follows: 
"IT IS FURTHER DECLARED A POLICY AND COMMITMENT OF THE 
GOVERNMENT TO CONTINUOUSLY MODE NIZE THE ARMED FORCES OF THE 
PHILIPPINES (AFP) TO BETTER ENABLE IT TO PRESERVE AND PROTECT THE 
TERRITORIAL INTEGRITY OF THE REPUBLIC, SAFEGUARD THE NATIONAL 
PATRIMONY INCLUDING STATE RIGHTS IN THE EXCLUSIVE ECONOMIC ZONE 
(EEZ), ENGENDER A CLIMATE OF PEACE AND STABILITY FOR THE SECURITY 
AND WELL-BEING OF THE FILIPINO PROPLE AND THEREBY FOSTER AN 
ATMOSPHERE 
THAT WOULD 
PROMOTE NATIONAL CONFIDENCE AND 
ECONOMIC DEVELOPMENT. 
THE GOVERNMENT, WHILE RECOGNIZING THE VALUE OF GROWTH AND 
DEVELOPMENT, REALIZES THAT NO SUSTAINA LE GROVVTH CAN TAKE PLACE 
OUTSIDE THE UMBRELLA OF SECURITY AND THAT ECONOMIC DEVELOPMENT 
WITHOUT A CREDIBLE NATIONAL DEFENSE CAPABILITY IS A DANGEROUS 
PROPOSITI0 . 
IT IS THE INTENT OF THIS LAW TO JOINTLY PROMOTE 
PRODUCTIVE USES OF FORMER MILITARY BASES AND RESERVATIONS 


AND/OR PORTIONS THEREOF ON ONE HAND AND TO ACCELERATE THE 
MODERNIZATION OF THE AFP ON THE OTHER.’ 
SECTION 2. Section 6 of Republic Act Number 7227 is hereby amended to read 
as follows: 
“The Conversion Authority shall have an authorized capital of One hundred 
million pesos (P100,000,000.00) which may be fully subscribed by the Republic of the 
Philippines and shall either be paid up from the proceeds of the SALE, LEASE, JOINT- 
VENTURE AGREEMENTS AND OTHER TR~NSACTfO~S 
INVOLVING MILITARY 
BASES AND RESERVATIONS AND/OR PORTIONS THEREOF as provided for in 
Section 9 of this Act or by transferring to the Conversion Authority properties valued in 
such amount. 
An initial operating capital in the amount of Seventy million pesos 
(P70,000,000.00) is hereby authorized to be appropriated out of any funds in the 
National Treasury not otherwise appropriated which shall be covered by preferred 
shares of the Conversion Authority retireable within two (2) years.” 
SECTION 3. Section 7 (b) of Republic Act Number 7227 is hereby amended to 
read as follows: 
“(b) Such other properties including, but not limited to, portions of Metro Manila 
military camps, pursuant to Section 8 of this Act: Provided, however, that areas VITAL 
TO NATIONAL DEFENSE shall remain as military reservations and shall be delineated 
and proclaimed as .such by the President INCLU~ING, UT NOT LIMITED TO THE 
FOLLOWING: 
PART OF WALLACE AIR STATION 
PART OF VILLAMOR AIR BASE 
PART OF CLARK AIR BASE 
CROW VALLEY GUNNERYRANGE 
FORT ABAD 
PART OF FORT BONIFACIO: 
PHILIPPINE ARMY 
PH l Ll PP INE NAVV/MARINES 
PH I L I P P I N E MILITARY ACADEMY 
- 
30 HECTARES 
- 
137.81 HECTARES 
- 
350 HECTARES 
- 
17,847 HECTARES 
- 
0.60 HECTARES 
- 
120 HECTARE§ 
- 
62 HECTARES 
- 
8.8 HECTARES,’ 


SECTION 4. Section 8 of Republic Act Number 7227 is hereby amended to read 
as follows: 
“The capital of the Conversion Authority shall come from the PROCEEDS 
OF THE SALES,. LEASE, JOINT-VENTURE AGREEME TS AND ALL OTHER 
TRANSACTIONS INVOLVING MILITARY BASES AND RESERVATIONS AND/OR 
PORTIONS THEREOF WITHIN METRO MANILA, including all lands covered by 
Proclamation No. 423, series of 1957, commonly known as Fort Bonifacio and Villamor 
(Nichols) Air Base namely: 
x x x  
Phase 
1. CampVer 
2. Camp Melchor 
3. Camp Atienza 
(4. Part of Villamor Air Base 
(5.) 4. Part of Fort Bonifacio 
(6. Fort Abad 
I 
1.9 
1 .o 
- 
4.9 
- 
37.9) 
- (224.90) 134.1 0 
- 
.60) 
- 
Total (271.20) 141.90 
Provided, That the following areas shall be exempt from SALE, LEASE, JOINT 
VENTURE AGREEMENTS AND ALL OTHER T ~ N S A C T ~ O N S :  
OXIMATELY ONE HUNDREDTWENTY (120) HECTARES IN FORT 
BONIFACIO FOR THE HEADQUARTERS PHILIPPINE ARMY, NATIONAL CAPITAL 
REGION SECURITY BRIGADE, PHILIPPINE ARMY, PHILIPPINE ARMYOFFICERS 
HOUSING AREA, FIELD UNITS, LIAISON OFFICES, MEDICAL FACILITIES, 
LOGISTICAL FACILITIES AND OTHER SERVICE SUPPORT FACILITIES TO AID THE 
NATIONWIDE OPERATION AND FUNCTIONS OF THE PHILIPPINE ARMY. 
APPROXIMATELY SIXTY TWO (62) HECTARES IN FORT BONIFACIO AS AN 
ASSEMBLY 
AND 
CONSOLIDATION 
AREA 
FOR 
PHILIPPINE 
MARINE 
FORCES/UNITS FOR RAPID DEPLOYMENT FROM THE NATIONAL CAPITAL 
REGION TO ANY POINT IN THE ARCHIPELAGO AS A BASING AREA FOR 
PHILIPPINE MARINES AND PHILIPPINE NAVY ASSISTANCE AND RESCUE UNITS 
WHICH ARE USUALLY DEPLOYED IN THE NATIONAL CAPITAL REGION DURING 
CALAMITIES AND AS A BASE FOR ADMINISTRATIVE AND LOGISTICS LIAISON 
REQUIREMENTS OF ALL MARINE BRIGADES A D BA~TALIONS TO PH]LIPPINE 


NAVY UNITS SUPPORTING MARINE OPERATIONS; AND APPROXIMATELY EIGHT 
AND EIGHT TENTHS (8.80) HECTARES FOR THE PHILIPPINE MILITARY ACADEMY 
FOR LIAISON OFFICE, PROCESSING AREA, BILLETING FAClLlTiES AND 
TRAINING AREA FOR CADETS UNDERGOING 0 
(b) APPROXIMATELY 137.81 HECTARES I 
VILLAMOR AIR BASE FOR THE 
PRESIDENTIAL AIRLIFT WING, HEADQUARTERS PHILIPPINE AIR FORCE, AIR 
DEFENSE COMMAND, 520TH AIR BASE WING, 5EjTH SEARCH AND RESCUE 
GROUP, PHILIPPINE AIR FORCE HOSPITAL AND DENTAL DISPENSARY, ONE 
SQUADRON OF HELICOPTERS AND AIRLIFT ELEMENTS FOR THE NATIONAL 
CAPITAL REGION, LIAISON OFFICES FOR PHILIPPINE AIR FORCE FIELD AND 
AVIATION UNITS AND RESPECTIVE SECUTIY UNITS AND AS A BASE OF 
OPERATION FOR THE CONSOLIDATION AND RAPID DEPLOYMENT TO ANY PART 
OF THE ARCHIPELAGO OF RESCUE, RELIEF AND REHABILITATION RESPONSE 
UNITS IN TIMES OF NATIONAL CALAMITIES. THE ”17.81 HECTARES TO BE 
RETAINED BY THE PHILIPPINE AIR FORCE, UNDER SECTION 7 (b) HEREOF, 
SHALL EXCLUDE AREAS EARMARKED FOR THE EXPANSION OF THE SOUTH 
EXPRESSWAY, THE MANILA SKYWAY PROJECT AND ACCESS ROADS FOR THE 
NINOY AQUINO INTERNATIONAL AIRPORT PASSENGER TERMINAL 111.” 
ECTl 
. The provisions of Section 8(d) of Republic Act Number 7227 are 
hereby repealed. Section 8(d) shall now read as follows: 
“ALL TRANSACTIONAL EXPENSES RELATED TO THE SALE, LEASE, JOINT- 
VENTURE AGREEMENTS AND OTHER TRANSACTIONS INVOLVING MILITARY 
BASES AND RESERVATIONS AND/OR FORTIO~S THEREOF AS AUTHORIZED 
UNDER THIS ACT SHALL BE DEDUCTED FROM THE PROCEEDS OF SUCH SALE, 
LEASE, JOINT-VENTURE AGREEMENTS AND TRANSACTIONS. THE FOLLOWING 
SHALL BE CONSIDERED AS T R A ~ ~ A ~ T I O N A ~  
EXPENSES: ACQUlSlTlON AND 
TITLING OF REAL ESTATE AS WELL AS PREPARATION OF ALTERNATIVE SITES 
TO HOST RELOCATED MILITARY UNITS; 
FUNCTIONAL REPLICATION OF 
AFFECTED MILITARY FACILITIES AND RELATED TRANSFER EXPENSES 
RELOCATION OF AFFECTED GOVERNMENT/NON-IVIILITBRY AGENCIES AND 
CLEARING OF SQUATTERS; PROVIDED, THAT SALE-RELATED EXPENSES 
SHALL UNDER NO CIRCUMSTANCES EXCEED TWENTY (20%) OF THE TOTAL 
BIDDED LAND VALUE, SEVEN PERCENT (7%) IN THE CASE OF LEASE AND NINE 
PERCENT (9%) OF THE TOTAL AGREED TRANSACTIO 
VALUE FOR JOINT- 


VENTURE AGREEMENTS AND OTHER TRAN$ACT~ONS. PROVIDED, FURTHER, 
THAT THE PROVISIONS OF LAW TO THE C~NTRARY NOTWITHSTANDING, THE 
PROCEEDS OF THE SALE, LEASE, JOINT-VENTURE AGREEMENTS AND OTHER 
TRANSACTIONS AS HEREIN PROVIDED SHALL 
DIMINISHED AND ARE, 
THEREFORE, EXE PT FROM ALL FORMS OF 
ATlONAL AND LOCAL TAXES, 
ASSESSMENTS, LICENSES AND FEES. P~OVIDED, FINALLY, THAT THE NET 
PROCEEDS OF SUCH SALE, LEASE, JOINT-VENTURE AGREEMENTS AND 
OTHER TRANSACTIONS SHALL BE DEEM€ 
APPROPRIATED FOR THE 
FOLLOWING PURPOSES WITH THE CORRESPONDING PERCENTAGE SHARES 
OF THE PROCEEDS: 
(I) 
FIFTY-FIVE PERCENT (55%) - TO PRIMARILY FINANCE THE SELF- 
RELIANCE AND MODERNIZATION P OGRAM OF THE AFP WHICH 
SHALL INCLUDE THE FOLLOWING: EQUIPMENT ACQUISITION AND 
UPGRADE PROGRAM, INCLUDING T 
~ODERNIZA~ION 
OF THE 
GOVERNMENT ARSENAL, BASES DEVELOPME T PROGRAM, HUMAN 
RESOURCE DEVELOPMENT AND DOCTRINES DEVELOPMENT. 
TWENTY-FIVE PERCENT (25%) - TO FINANCE THE CONSTRUCTION 
AND UPGRADING OF I~FRASTRUCTU~E 
SUCH AS HIGHWAYS, 
RAILWAYS AND OTHER TRANSPORT FACILITIES TO MAKE SUBIC, 
CLARK AND OTHER FORMER BASES ACCESSIBLE. PROVIDED, THAT 
OTHER PUBLIC WORKS, UTILITIES AND IRRIGATION PROJECTS NOT 
SPECIFIED HEREIN SHALL BE DEEMED INCLUDED; PROVIDED, 
FINALLY, THAT THIS APPROPRIATION SHALL BE RETAINED BY THE 
CONVERSION AUTHORITY AS PART OF ITS PAID-UP CAPITAL 
PURSUANT TO SECTION 6 OF THIS ACT. 
(3) TWENTY PERCENT (20%) - FIFTY PERCENT (50%) OF THIS AMOUNT 
SHALL BE USED TO FINANCE THE AFP HOUSING PROGRAM WHILE 
THE REMAINING FIFTY PERCENT (50%) THEREOF SHALL BE UTILIZED 
SOLELY FOR THE DEVELOPMENT OF IDLE LANDS WITHIN MILITARY 
BASES AND RESERVATIONS FOR INCOME-GENERATING PROJECTS: 
PROVIDED, THAT THE INCOME DERIVED FROM THESE PROJECTS 
SHALL BE USED EXCLUSIVELY FO THE AFP MODERNIZATION ACT 
UNDER REPUBLIC ACT NUMBER 7898. 
SUBJECT TO THE APPROVAL OF THE PRESIDENT AND AFTER 
FAVORABLE RECOMM ENDATIO 
OF THE APP Op RlATE CONG RE S S 10 NAL 


OVERSIGHT COMMITTEE, WHERE THE CHIEF OF STAFF OF THE ARMED 
AGREEMENTS AND OTHER TRANSACTIONS HEREIN SPEClFlED AND SHALL 
HENCE BE RETAINED AS COMMUNITY FACILITIES SUBJECT, HOWEVER, TO 
SITE IMPROVEMENT AND FURTH R DEVELOPMENT TO ACHIEVE OPTIMAL 
LAND USE TO BE PLAN 
D SUPERVISED JOI TLY BY THE CONVERSION 
AUTHORITY, THE PHILIPPINE AIR FORCE AND THE CITY OF PASAY AND 
FINANCED FROM REVE UE DERIVED FROM THE DISPOSAL OF VILLAMOR AIR 
BASE. 
PROVIDED, THAT THE PHILIPPINE AIR FORCE SHALL RETAIN 
POSSESSION OF THE GQVERN~ENT QUA~T€RS AREA AND UNDERTAKE 
MULTI-STOREY 
HOUSING 
PROJECTS 
THEREAT 
FOR 
ITS 
ENLISTED 
PERSONNEL; PROVIDED, FURTHER, THAT THE PHlLlPPlNE AIR FORCE SHALL 
IMPROVE FACILITIES AT THE PHILIPPINE AIR FORCE GENERAL HOSPITAL NOT 
ONLY FOR THE BENEFIT OF PHILIPPINE AIR FORCE PERSONNEL BUT AS A 
POSSIBLE FIRST AID AND EMERGENCY CENTER FOR THE PROPOSED NlNOY 
AQUINO INTERNATIONAL AIRPORT PASSENGER TERMINAL COMPLEX IN 
FURTHERANCE OF 
PHILIPPINE GOVERNMENT COMMITMENTS TO THE 
INTERNATIONAL CIVIL AERONAUTICS O R ~ ~ N I ~ ~ T I O N  
(ICAO); AND PROVIDED, 
FINALLY, THAT TWO AND FIVE TENTHS PERCENT (2.5%) OF THE PROCEEDS 
THEREOF SHALL BE GIVEN TO THE CITY OF PASAY. 
WITH RESPECT TO THE MILITARY CAMPS AND THEIR EXTENSIONS 
STIPULATED IN SECTION 7 OF THIS ACT, THE PRESIDENT IS HEREBY 
AUTHORIZED TO DISPOSE EITHER THROUGH SALE, LEASE, JOINT-VENTURE 
AGREEMENTS AND OTHER TRANSACTIONS SUCH OTHER PORTIONS OF LANDS 
IN MILITARY CAMPS IN METRO MANILA, CLARK AND SUBIC AND THEIR 
EXTENSIONS AS WELL AS OTHER UNUSED PORTIONS OF EXISTING MILITARY 
RESERVATIONS, IN WHOLE OR IN PA T, WHICH ARE DECLARED AS ALIENABLE 
AND DISPOSABLE, PURSUANT TO THE PROVISIONS OF EXISTING LAWS AND 
S GOVERNiNG THE SALE, LEASE, JOINT-VENTURE AGREEMENTS 
AND OTHER TRANSACTIONS INVOLVING ~ O V E R N M E ~ T  
ASSETS AND/OR 
PROPERTIES; PROVIDED, THAT NO TRANSACTION WHATSOEVER INVOLVING 
SUCH LANDS SHALL BE UNDERTAKEN UNTIL AFTER A MASTER DEVELOPMENT 
PLAN EMBODYING SAID CONVERSION PROJECTS BY THE CONVERSION 
AUTHORITY, AS THE CASE MAY BE, SHALL HAVE BE N DULY CONCURRED 
Y THE CONCERNED MAJOR SERVICE CO~MANDERS OF THE ARMED 
FORCES OF THE PHILIPPINES, THE CHIEF OF STAFF, ARMED FORCES OF THE 
PHILIPPINES AN 
APPROVED BY THE SECRETARY OF NATIONAL DEFENSE 
AND FINALLY APPROVED BY THE APPROPR~ATE ~ O N ~ R E S S I O N A ~  
OVERSIGHT 


COMMITTEE; PROVIDED, FURTHER, THAT THE CHIEF OF STAFF OF THE ARMED 
FORCES OF THE PHILIPPINES MAY UNILATERALLY RECOMMEND SUCH 
CONVERSION/ALTERNATIVE BASE UTILIZATION PROJECTS NTHOUT THE 
PARTNERSHIP OF THE CONVERSION AUTHORITY BUT IN JOINT-VENTURE 
AGREEMENTS WITH OTHER ~ O ~ E R N M E N T  
~ N T I T ~ ~ ~  
SI~ILARLY MANDATED TO 
DEVELOP GOVERNMENT PROPERTIES, SUBJ CT, 
HOWEVER, TO 
THE 
APPROPRIATE EXECUTIVE AND CONGRESSIONAL R ~ V I E W  AND APPROVAL; 
PROVIDED, FINALLY, THAT IN FURTHERANCE OF ITS MANDATE FOR 
OPERATIONAL READINESS, THE ARMED F O ~ C € S  OF THE PHILIPPINES MAY, 
SUBJECT 
TO 
PRESIDENTIAL 
APPROVAL 
AND 
CONGRESSIONAL 
CONCURRENCE, LEASE OUT TRAINING SPACES WITHIN MILITARY BASES AND 
RESERVATIONS AND/OR PORTIONS THEREOF AND UNDERTAKE JOINT 
TRAINING AND EXERCISES WITH THE ARMED FORCES OF OTHER ALLIED 
AND/OR 
FRIENDLY 
COUNTRIES 
HAVING 
DEFENSE 
COOPERATION 
AGREEMENTS WITH THE REPUBLIC OF THE PHILIPPINES. ARMED FORCES OF 
OTHER COUNTRIES MAY NOT CALL ON ANY PHILIPPINE PORTS, AIRPORTS OR 
MILITARY BASES AND RESERVATIONS AND/OR PORTIONS THEREOF FREE OF 
CHARGE FOR MORE THAN THREE (3) CONSECUTIVE DAYS, EXCEPT IN CASES 
OF EXTREME EMERGENCY AND/OR HU~ANITARIAN SITUATIONS. 
SUCH 
FORCES ARE, HOWEVER, SUBJECT TO QUARANTINE REQUIREMENTS IN 
ACCORDANCE WITH PHILIPPINE LAWS AND RULES AND REGULATIONS. THE 
AMOUNT OF LEASE AND THE TERMS AND CONDITIONS FOR THE USE OF 
PHILIPPINE AIR, LAND AND SEA FOR PURPOSES OF JOINT TRAINING AND 
EXERCISES SHALL BE MUTUALLY AGREED UPON BY THE REPRESENTATIVES 
OF THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES AND OF THE 
ARMED FORCES OF OTHER COUNTRIES AND SHALL AT ALL TIMES BE IN 
ACCORDANCE WITH PHILIPPINE LAWS 
AS WELL AS INTERNATIONALLY 
AUTOMATICALLY ACCRUE TO THE AFP ~ODERNIZAT~ON 
ACT TRUST FUND. 
HOWEVER, NO SINGLE COUNTRY MAY HOLD A 
EXERCISE AND/OR TRAINING 
PROGRAM IN PHILIPPINE TERRITORY CONTINUOUSLY FOR MORE THAN THREE 
(3) MONTHS AND/OR FOR A PERIOD OF MORE THAN SIX (6) MONTHS TAKEN 
CUMULATIVELY IN A SINGLE YEAR. 
NO ARMED FORCES OF OTHER 
COUNTRIES, FOR WHATSOEVER REASON, 
HALL BE ALLOWED TO HOLD 
GARRISON 
WITHIN 
PH I LI PP IN€ 
TERRITORY. 
THIS 
PROVISION 
NOTWITHSTANDING, MILITARY BASES AND RESERVATIONS DEEMED VITAL 
FOR NATIONAL DEFENSE AND SECURITY SHALL BE RETAINED AS SUCH. 
THE CONVERSION AUTHORITY SHALL HENCEFO~TH GIVE PRIORITY TO 
THE PROBLEM OF HOMELESSNESS IN ALL TRANSACTIONS INVOLVING THE 


LANDS IDENTIFIED HEREIN: 
PROVIDED, THAT ON-BASE AND OFF-BASE 
HOUSING FOR MILITARY AND CIVIL SERVICE PERSON EL OF THE ARMED 
FORCES OF THE PHILIPPINES SHALL BE CONSIDERED AS A NECESSARY 
COMPONENT OF THIS MANDATE.” 
SECTION 6. Section 9 of Republic Act Number 7227 is hereby amended to read 
as follows: 
“THE POWERS AND FUNCTIONS OF THE CONVERSION AUTORITY SHALL 
BE EXERCISED BY A BOARD OF DIRECTORS TO BE ~ ~ M ~ O S E D  
OF THIRTEEN 
(I 
3) MEMBERS, AS FOLLOWS: 
A full-time Chairman who shall also be the President of the Conversion 
Authority ; 
SEVEN (7) OTHER MEMBERS FROM THE PRIVATE SECTOR; 
ONE REPRESENTATIVE FROM THE DEPARTMENT OF NATIONAL 
DEFENSE WHO SHALL BE THE ASSISTANT SECRETARY FOR 
INSTALLATIONS AND LOG1 STIC; 
ONE REPRESENTATIVE EACH FROM THE PHILIPPINE AIR FORCE, 
PHILIPPINE ARMY AND PHILIPPINE NAVY; AND 
ONE REPRESENTATIVE FROM THE GENERAL HEADQUARTERS OF 
THE ARMED FORCES OF THE PHILIPPINES. 
President with the consent of the appropriate Congressional oversight 
committee hereof shall appoint the Chairman and members. Of the initial members of 
the Board pursuant to this Act, three (3) including the chairman. 
No person shall be appointed or designated AS A MEMBER OF THE BOARD 
unless he is a natural-born Filipino citizen, of good moral character, of unquestionable 
integrity and of recognized competence in relevant fields including, but not limited to, 
economics, management, international relations, law or engineering, preferably naval or 
aeronautical. 
The chairman and president of the Conversion Authority shall have a fixed term 
of six (6) years. THREE (3) MEMBERS FROM THE PRIVATE SECTOR SHALL BE 
APPOINTED FOR A TERM OF THREE (3) YEARS WHILE THE OTHER FOUR (4) 
MEMBERS SHALL SERVCE FOR TWO (2) YEARS. THE APPOINTMENT OF THESE 
MEMBERS SHALL BE WITHOUT ANY REAPPOINTMENT. 


ON THE OTHER HAND, THE TERM OF APPOINT MEN^ OF THE 
REPRESENTATIVE FROM THE DEPARTMENT OF NATIONAL DEFENSE SHALL BE 
COTERMINOUS WITH THE POSlTlO 
OF THE ASSISTANT SECRETARY FOR 
INSTALLATIONS AND LOGISTICS. 
THE REPRESENTATIVES FROM THE 
PHILIPPINE AIR FORCE, PHILIPPINE AR Y, PHILIP~IN€ NAVY AND THE 
GENERAL HEADQUARTERS §HALL BE APPOINTED FOR A TERM OF TWO (2) 
YEARS. PROVIDED, HOWEVER, THAT THEIR RESPECTIVE TERMS SHALL BE 
CO-TERMINOUS WITH THEIR ACTIVE MILITARY SERVICE. 
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 (P5,OOO.OO) for every board meeting. Provided, however, That the per diem 
collected per month does not exceed the equivalent of four (4) meetings. Provided, 
further, That the amount of per diem for every board meeting may be increased by the 
President but such amount shall not be increased within two (2) years after its last 
increase.” 
SECTION 7. Section 12 of Republic Act Number 7227 is hereby amended to 
include the following provisions: 
“(j) 
IN THE INTEREST OF 
ATIONAL DEFENSE AND SECURITY, THE 
NAVAL MAGAZINE AREA SHALL BE ~ A I ~ T A ~ N E D  
AND INSULATED FROM 
DEVELOPMENT FOR OTHER USES: PROVIDED, THAT THE TOTAL AREA TO BE 
PROTECTED SHALL BE DELINEATED AND PROCLAIMED AS A MILITARY 
RES E RVATION WITH I ONE YEAR FROM THE PASSAGE OF THIS ACT BY THE 
PRESIDENT. THE ARMED FORCES OF THE PHILIPPINES SHALL HAVE FULL 
ACCESS TO APPROPRIATE TRAINING AREAS WITHIN SUBIC AND CLARK FOR 
COURSES IN JUNGLE WARFARE AND SURVIVAL, DEEP-HARBORIWATER 
OPERATIONS AND FORWARD AIR DEPLOYMENT. THE NUMBER OF TROOPS 
UNDERGOING SUCH 
TRAINING 
SHALL 
NOT 
EXCEED 
COMPANY-SIZE 
CONTINGENTS IN THE CASE OF AIR AND NAVAL FORCES. THE CHAIRMAN OF 
THE SUBIC AUTHORITY AND THE CHIEF OF STAFF OF THE ARMEND FORCES 
OF THE PHILIPPINES SHALL AGREE, WITHIN ONE YEAR FROM THE PASSAGE 
OF THIS ACT, ON THE AREAS WHERE THE ARMED FORCES OF THE 


PHILIPPINES CAN MAINTAIN BILLETING AND GARRISO 
IMPLEMENTATION OF THIS MANDATE.” 
FACILITIES FOR THE 
SECTION 8. Section 15 of Republic Act Number 7227 is hereby amended to 
include the following provisions: 
“IN ALL SPECIAL ECONOMIC ZONES TO BE CREATED BY THE PRESIDENT 
IN THE IMPLEMENTATION OF THIS ACT, THE MAJOR SERVICE OF THE ARMED 
FORCES OF THE PHILIPPINES THAT WILL BE PRIMARILY AFFECTED BY THE 
CONVERSION OF THESE PARTICULAR BASES SHALL BE DULY REPRESENTED 
IN THE RESPECTIVE GOVERNING BODIES OF THESE SPECIAL ECONOMIC 
ZONES 
AND/OR 
DEVELOPMENT 
~
~
R
~
~
~
A
~
I
O
~
~
.
 
MAJOR 
SERVICE 
COMMANDERS SHALL NOMINATE AS THEIR RESPECTIVE REPRESENTATIVES, 
ONLY ACTIVE DUTY OFFICERS WHOSE F R I ~ A R Y  FUNCTIONS INVOLVE 
MODERNIZATION IMPLEMENTATION AND/OR BASES DEVELOPMENT/REAL 
ESTATE MANAGEMENT. 
PROVIDED, 
HOWEVER, THAT 
NO 
MILITARY 
REPRESENTATIVE MAY HOLD MORE THAN ONE (1) BOARD SEAT IN THE BCDA, 
OR IN ITS SUBSIDIARY CORPORATIONS AS WELL AS IN THE GOVERNING 
BODIES OF THE SPECIAL ECONOMIC ZONES CREATED IN FORMER MILITARY 
BASES , TAKEN C U MU LATlVE LY. ” 
SECTION 9. The provisions of Section 20 of Republic Act Number 7227 is 
hereby repealed. Section 20 of this Act shall now read as follows: 
20. 
TRANSITORY PROVISIONS/~MPL~ME~T~NG 
RULES AND 
REGULATIONS. - ALL PROCEEDS AND INCOME i ~ C L U D ~ ~ G ,  
UT NOT LIMITED 
TO, INTEREST EARNINGS DERIVED FROM THE SALE, LEASE, JOINT-VENTURE 
AGREEMENTS AND ALL OTHER TRANSACTIONS INVOLVING MILITARY BASES 
AND RESERVATIONS AN/OR PORTIONS THEREOF SHALL BE CONSTITUTED AS 
PART OF THE AFP MODERNIZATIO ACT TRUST FUND AND SHALL BE USED 
EXCLUSIVELY FOR THE AFP MODERNIZATION PROGRAM. WITHIN THREE (3) 
MONTHS FROM THE EFFECTIVITY OF THIS ACT, THE COMMISSION ON AUDIT 
SHALL CONDUCT AN ACCOUNTING AND AUDITING OF THE OPERATIONS AND 
FINANCES OF THE CONVERSION AUTHORITY IN ORDER TO DETERMINE ITS 
CURRENT ASSETS AND LIABILITIES. 


THE OFFICE OF THE PR€§lDE~T SHALL F ~ ~ M ~ L A T  
RULES AND REGULATIONS IMPLE~ENT~NG 
THIS ACT WITHIN THREE (3) 
MONTH§ FROM ITS EFFECTIVITY 
SECTION I O .  Section 24 of Republic Act Number 7227 is hereby amended to 
read as follows: 
. 
24. RETROACTIVE EFFECT OF THE PROVISIONS OF LAW TO 
THE CONTRARY NOTWITHSTANDING, THIS ACT SHALL HAVE RETROACTIVE 
EFFECT RECKONED FROM THE PASSAGE OF REPUBLIC ACT NUMBER 7227. 
THIS ACT SHALL BE IN FULL FORCE AND EFFECT AFTER FIFTEEN (15) DAYS 
FROM ITS PUBLlCATlON IN AT LEAST ONE N ~ W S P A P ~ ~  
OF GENERAL 
C I RC U LAT IO N 
.I1 
Approved,