Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City $%

fr RECEIVED 4

REPR ESE DN

SIXTEENTH CONGRESS,

First Regular Session

House Bill No. ae

Introduced by Hon. Rodolfo G. Biazon

EXPLANATORY NOTE

This bill seeks to rectify existing infirmities in Republic Act No. 7227 which created
the Bases Conversion and Development Authority (BCDA), as amended by Republic Act No.
7917, by harmonizing its goal of accelerated economic development in former military base
lands with that of Republic Act No. 7898, which mandated the modernization of the Armed
Forces of the Philippines (AFP).

In passing Republic Act No. 7227, it was the intent of the 9" Congress that alternative
uses of military base lands in Metro Manila and other 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 modemize 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
No.7898 provides that funds for the modemization 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 controiled areas under Republic Act No. 7227 is limited only to the net proceeds of
the actual land sale. Consequently, BCDA is opting more towards 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 barren lands. Many lives were’ lost in these projects. The AFP more than any other
agency has the right to an equitable share of 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 No. 7227, BCDA has the power to recommend to the President
further alienation of other military installations which 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 from other government
entities as well as the private sector.

Clearly, there is a need to balance growth and development with national defense and
security. For this reason, military bases that are strategically located and vital to force
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
enhanced but should never be an excuse to marginalize and/or obviate military presence in
these bases/camps.

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 No. 7227 placed under the disposal of BCDA 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 bases/camps they needed to retain
in Metro Manila to maintain its operational capability and flexibility. On the other hand,
Republic Act No. 7227 was generous to BCDA to a point where defects are evident,

To correct these defects, the following amendments to Republic Act No. 7227 are
hereby proposed:

1. AEP shares in the proceeds of converted base lands shall be increased from 35% to
55% of net proceeds. Republic Act No. 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 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 PI/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.

Itis in this light that the immediate approval of this bill is earnestly requested.

a G. Gate

Representative
Lone District, Muntinlupa City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No.__

Introduced by Hon. Rodolfo G. Biazon

0 ———————————

AN ACT
AMENDING REPUBLIC ACT NUMBER 7227 OTHERWISE KNOWN AS THE
“BASES CONVERSION AND DEVELOPMENT ACT OF 1992,” AS AMENDED,
EXPANDING THE ALLOCATION OF REVENUES FROM THE LEASE,
JOINT VENTURE AGREEMENTS AND OTHER TRANSACTIONS INVOLVING
MILITARY BASES AND RESERVATIONS, ALLOCATING FUNDS THEREFOR
AND FOR OTHER PURPOSES.

Be enacted by the Senate and House of Representatives of the Philippines in Congress
assembled

SECTION ONE. Section 2 of Republic Act Number 7227 is hereby amended by
adding to the last paragraph, the following paragraphs which shall read as follows:

“IT IS FURTHER DECLARED A POLICY AND
COMMITMENT OF THE GOVERNMENT TO CONTINOUSLY
MODERNIZE 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 PEOPLE 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
SUSTAINABLE GROWTH CAN TAKE PLACE OUTSIDE THE
UMBRELLA OF SECURITY AND THAT ECONOMIC


DEVELOPMENT WITHOUT A CREDIBLE NATIONAL DEFENSE
CAPABILITY IS A DANGEROUS PROPOSITION. 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.”

Sec. 2. Section 6 of the same Act is hereby amended to read as follows:

“The Conversion Authority shall have an authorized capital of One
Hundred Billion 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
TRANSACTIONS INVOLVING MILITARY BASES AND.
RESERVATIONS AND/OR PORTIONS THEREOF as provided for in
Section 8 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.”

See. 3. Section 7 (b) of the same Act 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 the areas VITAL TO NATIONAL DEFENSE shall remain as
military reservations and shall be delineated and proclaimed as such by the
President INCLUDING, BUT NOT LIMITED TO THE FOLLOWING:

PART OF WALLACE AIR STATION - 30 HECTARES
PART OF VILLAMOR AIR BASE - 137.81 HECTARES
PART OF CLARK AIR BASE - 350 HECTARES
CROW VALLEY GUNNERY RANG - 17,847 HECTARES
FORT ABAD = 0.60 HECTARES
PARTS OF FORT BONIFACIO:

PHILIPPINE ARMY - 120 HECTARES

PHILIPPINE NAVY/MARINES - 62 HECTARES

PHILIPPINE MILITARY ACADEMY - 8.8 HECTARES

IN THE CASE OF VILLAMOR AIR BASE, THE AREA
CONSISTING OF SIX HECTARES AND SIX THOUSAND SQUARE
METERS (6.6 HAS.) ALONG ANDREWS AVENUE WHERE
EXISTING COMMUNITY FACILITIES CONSISTING OF, AMONG

2



OTHERS, THE CATHOLIC CHURCH, THE PROTESTANT
CHURCH, THE VILLAMOR AIR BASE ELEMENTARY SCHOOL
AND KINDERGARTEN, THE PASAY CITY SOUTH HIGH SCHOOL,
THE PHILIPPINE STATE COLLEGE OF AERONAUTICS, MENZI
PARK/PLAYGROUND, THE BARANGAY HALL, THE HEALTH
CENTER CLINIC, | CONCESSIONAIRES AREA, ~— THE
GOVERNMENT QUARTERS, AND THE AREA PRESENTLY
OCCUPIED BY THE PHILIPPINE AIR FORCE NERAL
HOSPITAL AND DENTAL DISPENSARY IS HEREBY EXCLUDED
FROM THE AREAS IN VILLAMOR AIR BASE TO THE SUBJECT
OF SALE, LEASE, JOINT-VENTURE AGREEMENTS AND OTHER
TRANSACTIONS HEREIN SPECIFIED AND SHALL HENCE BE
RETAINED AS COMMUNITY FACILITIES SUBJECT, HOWEVER,
TO SITE IMPROVEMENT AND FURTHER DEVELOPMENT TO.
ACHIEVE OPTIMAL LAND USE TO BE PLANNED AND
SUPERVISED JOINTLY BY THE CONVERSION AUTHORITY, THE
PHILIPPINE AIR FORCE AND THE CITY OF PASAY AND
FINANCED FROM REVENUE DERIVED FROM THE DISPOSAL OF
VILLAMOR AIR BASE. PROVIDED, THAT THE PHILIPPINE AIR
FORCE SHALL RETAIN POSSESSION OF THE GOVERNMENT
QUARTERS AREA AND UNDERT, EY HOUSIN'
PROJECTS THEREAT FOR LIS SONNEL;
PROVIDED, FURTHER, THAT THE PHILIPPINE AIR FORC
SHALL IMPROVE FACILITIES AT THE PHILIPPINE AIR FORCE
GENERAL HOSPITAL NOT ONLY FOR THE BENEFIT OF
PHILIPPINE AIR FOR FORCE PERSONNEL BUT AS A POSSIBLE
ST AID AND EMERGENCY CENTER FOR THE PROPOSE!
INOY AQUINO INTERNATIONAL AIRPORT PASSENG
TERMINAL COMPLEX IN FURTHERANCE OF PHILIPPIN!
OVERNMENT COMMITMENTS TO THE INTERNATIONAL.
IVIL AERONAUTICS ORGANIZATION (ICAO); AND PROVIDED,
INALLY, THAT TWO AND FIVE TENTHS PERCENT (2.5%) OF
THE PROCEEDS THEREOF SHALL BE GIVEN TO THE CITY OF
PASAY.

Sec. 4, Section 8 of the same Act is hereby amended to read as follows:

“Sec. 8. Funding Scheme. ~ The capital of the Conversion Authority
shall come from the PROCEEDS OF THE SALE, LEASE, JOINT-
VENTURE AGREEMENTS 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:

LOSS
Phase II

1. Camp Ver - 19

2. Camp Melchor - 10


3. CAMP ATIENZA

[4. Part of Villamor Air Base

4. PART OF FORT BONIFACIO.
[5. PART OF FORT BONIFACIO.
6. Fort Abad

Total - [271.20] 141.90

Provided, That the following areas shall be exempt from SALE,
LEASE, JOINT VENTURE AGREEMENTS AND ALL OTHER
‘TRANSACTIONS:

(A)_ IN FOR BONIFACIO:

(1) APPROXIMATELY ONE HUNDRED TWENTY
(120) HECTARES IN FORT BONIFACIO FOR
THE HEADQUARTERS OF THE PHILIPPINE
ARMY, NATIONAL CAPITAL REGION
SECURITY BRIGADE, PHILIPPINE ARMY,
PHILIPPINE ARMY OFFICERS 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;

(2) APPROXIMATELY SIXTY TWO (62)
HECTARES ON 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 AND BATTALIONS TO.
INCLUDE PHILIPPINE NAVY UNITS
SUPPORTING MARINE OPERATIONS; AND

(3) APPROXIMATELY EIGHT AND EIGHT
TENTHS (8.80) HECTARES FOR THE
PHILIPPINE MILITARY ACADEMY FOR
LIAISON OFFICE, PROCESSING AREA,

4


(B)

©

BILLETING FACILITIES AND TRAINING AREA
FOR CADETS UNDERGOING ON THE JOB
TRAINING; AND

APPROXIMATELY 137.81 HECTARES IN VILLAMOR
AIR BASE FOR THE PRESIDENTIAL AIRLIFT WING,
HEADQUARTERS PHILIPPINE AIR FORCE, AIR
DEFENSE COMMAND, 520™ AIR BASE WING, 505"
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
SECURITY UNITS AND AS A BASE OF OPERATION
FOR THE CONSOLIDATION AND RAPID
DEPLOYMENT TO ANY PART OF THE ARCHIPELAGO
OF RESCUE, AND REHABILITATION
RESPONSE TIMES OF NATIONAL
CALAMITIES. THE 137.81 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 PAS TERMINAL
Mn.

THE NAVAL MAGAZINE AREA: PROVIDED, THAT
THE TOTAL AREA TO BE PROTECTED SHALL BE
DELINEATED AND PROCLAIMED AS A MILITARY
RESERVATION WITHIN ONE YEAR FROM THE
PASSAGE OF THIS ACT BY THE PRESIDENT. THE
ARMED FORCES OF THE PHILIPPINES SHALL HAV!
FULL ACCESS TO APPROPRIATE TRAINING ARE.
WITHIN SUBIC AND CUBI FOR COURSES IN JUNGLI
WARFARE AND SURVIVAL, DEEP-HARBOR/WATER
OPERATIONS AND FORWARD AIR DEPOLOYME!
THE NUMBER OF TROOPS UNDERGOING SU!
TRAINING SHALL NOT EXCEED COMPANY-'
CONTINGENT! THE CASE OF GROUND FORC
AND SQUADRON-SIZE CONTINGENTS IN THE CASE
OF AIR AND NAVAL FORCES. THE CHAIRMAN OF
THE SUBIC AUTHORITY AND THE CHIEF OF STAFF
OF THE ARMED 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 GARRISON FACILITIES
FOR THE IMPLEMENTATION IF THIS MANDATE.”

5


Sec. 5. The provisions of Paragraph (d), Section 8 of the same Act are hereby deleted
and in lieu thereof, there shall be inserted the following paragraphs which shall read as
follows:

“ALL TRANSACTIONAL EXPENSES RELATED TO THE
SALE, LEASE, JOINT-VENTURE AGREEMENTS AND OTHER
TRANSACTIONS INVOLVING MILITARY BASES AND
RESERVATIONS AND/OR PORTIONS THEREOF AS AUTHORIZED
UNDER THIS ACT SHALL BE DEDUCTED FROM THE PROCEEDS
OF SUCH SALE, LEASE, JOINT VENTURE AGREEMENTS AND
TRANSACTIONS.

THE FOLLOWING
TRANSACTIONAL EXPENSES:

SHALL BE CONSIDERED AS

(A) ACQUISITION AND TITLING OF REAL ESTATE AS
WELL AS PREPARATION OF ALTERNATIVE SITES TO
HOST RELOCATED MILITARY UNITS;

(B) FUNCTIONAL REPLICATION OF AFFECTED
MILITARY FACILITIES AND RELATED TRANSFER
EXPENSES; AND.

(©) RELOCATION OF AFFECTED GOVERNMENT/NON-
MILITARY AGENCIES AND CLEARING OF
SQUATTERS:

PROVIDED, THAT SALE-RELATED EXPENSES SHALL
UNDER NO CIRCUMSTANCES EXCEED TWENTY PERCENT (20%)
OF THE TOTAL BIDDED LAND VALUE, SEVEN PERCENT (7%) IN
THE CASE OF LEASE AND NINE PERCENT (9%) OF THE TOTAL
AGREED TRANSACTION VALUE FOR JOINT-VENTURE
AGREEMENTS AND OTHER TRANSACTIONS: PROVIDED,
FURTHER, THAT THE PROVISIONS OF LAW TO THE CONTRARY
NOTWITHSTANDING, THE PROCEEDS OF THE SALE, LEASE,
JOINT VENTURE AGREEMENTS AND OTHER TRANSACTIONS AS
HEREIN PROVIDED SHALL NOT BE DIMINISHED AND ARE
THEREFORE EXEMPT FROM ALL FORMS OF NATIONAL AND
LOCAL TAXES, ASSESSMENTS, LICENSES AND FEES: PROVIDED,
FINALLY, THAT THE NET PROCEEDS OF SUCH SALE, LEASE,
JOINT-VENTURE AGREEMENTS AND OTHER TRANSACTIONS
SHALL BE DEEMED APPROPRIATED FOR THE FOLLOWING
PURPOSES WITH THE CORRESPONDING PERCENTAGE SHARES

OF THE PROCEEDS:
(1) FIFTY-FIVE PERCENT (55%) - TO PRIMARILY
FINANCE THE SELF-RELIANCE AND

MODERNIZATION PROGRAM OF THE AFP WHICH
SHALL INCLUDE THE FOLLOWING: EQUIPMENT
ACQUISITION AND UPGRADE PROGRAM INCLUDING

6


THE MODERNIZATION OF THE GOVERNMENT
ARSENAL, BASES DEVELOPMENT PROGRAM, HUMAN
RESOURCE DEVELOPMENT AND DOCTRINES

DEVELOPMENT;

@) TEN PERCENT (10%) - TO FINANCE THE
CONSTRUCTION AND. UPGRADING OF
INFRASTRUCTURE 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
ECIFIED 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%) — TO FINANCE THE AFP
HOUSING PROGRAM, BUT TEN PERCENT 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 FOR THE AFP MODERNIZATION
ACT UNDER REPUBLIC ACT NUMBER 7898;

(4) TEN PERCENT (10%) — TO FINANCE THE BENEFITS
AND CLAIMS, WHETHER IN ARREARS OR AS THEY
FALL DUE, OF THE VETERANS OR THEIR
BENEFICIARIES UNDER REPUBLIC ACT NO. 6948 AS
AMENDED; AND

(5) FIVE PERCENT (5%) — TO FINANCE THE NATIONAL
HEALTH INSURANCE PROGRAM.

SUBJECT TO THE APPROVAL OF THE PRESIDENT AND
AFTER FAVORABLE RECOMMENDATION OF THE
APPROPRIATE CONGRESSIONAL OVERSIGHT COMMITTEE,
WHERE THE CHIEF OF STAFF OF THE ARMED FORCES OF THE
PHILIPPINES AND THE SECRETARY OF NATIONAL DEFENSE
SHALL HAVE DETERMINED THAT THE RETURNS ON THE
SHARES OF THE ARMED FORCES OF THE PHILIPPINES IN
JOINT VENTURE AGREEMENTS, LEASE AND ALL OTHER
TRANSACTIONS INVOLVING MILITARY LANDS ARE NOT
SUFFICIENTLY PROFITABLE, THE ARMED FORCES OF THE
PHILIPPINES MAY OPT TO DISPOSE OF ITS SHARES IN ALL
SUCH TRANSACTIONS THROUGH PUBLIC BIDDING IN
ACCORDANCE WITH EXISTING LAWS AND REGULATIONS

7


GOVERNING THE SALE AND/OR DISPOSAL OF GOVERNMENT
PROPERTIES AND/OR ASSETS.

THE PROCEEDS FROM THE SALE, LEASE, JOINT
VENTURE AGREEMENTS AND ALL OTHER TRANSACTIONS
INVOLVING MILITARY BASES AND RESERVATIONS AND/OR
PORTIONS THEREOF SHALL BE REMITTED TO NATIONAL
TREASURY AND SHALL AUTOMATICALLY ACCRUE TO THE
RESPECTIVE ACCOUNTS OF THE ABOVE-STIPULATED
SHARING AGENCIES: PROVIDED, HOWEVER, THAT THE SHARES
OF THE ARMED FORCES OF THE PHILIPPINES SHALL
AUTOMATICALLY ACCRUE TO THE AFP MODERNIZATION ACT.
TRUST FUND, INCLUDING ALL INTERESTS EARNINGS, AS
PROVIDED FOR UNDER SECTION 11 OF REPUBLIC ACT
NUMBER 7898.

APPROXIMATELY FORTY (40) HECTARES OF LAND IN
FORT BONIFACIO, PHASE I AS HEREIN PROVIDED SHALL BE
RETAINED AS NATIONAL AND LOCAL GOVERNMENT CENTERS,
SPORTS FACILITIES AND PARKS: PROVIDED, THAT TWO AND
FIVE TENTHS PERCENT (2.5%) OF THE PROCEEDS THEREOF
SHALL BE DISTRIBUTED IN EQUAL SHARES TO THE CITY OF
MAKATI AND THE MUNICIPALITIES OF TAGUIG AND PATEROS.

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 PART,
WHICH ARE DECLARED AS ALIENABLE AND DISPOSABLE
JANT TO THE PROVISIONS OF EXISTING LAWS AND
REGULATIONS GOVERNING THE SALE, LEASE, JOINT
VENTURE AGREEMENTS AND OTHER TRANSACTIONS
INVOLVING GOVERNMENT 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 CAS!
MAY BE, SHALL HAVE BEEN DULY CONCURRED WITH BY THE
CONCERNED MAJOR SERVICE COMMANDERS OF THE ARMED
FORCES OF THE PHILIPPINES, THE CHIEF OF STAFF, ARMED
FORCES OF THE PHILIPPINES AND APPROVED BY THE
SECRETARY OF NATIONAL DEFENSE AND FINALLY APPROVED
BY THE APPROPRIATE CONGRESSIONAL OVERSIGHT
COMMITTEE: PROVIDED, FURTHER, THAT THE CHIEF OF
STAFF OF THE ARMED FORCES OF THE PHILIPPINES MAY
UNILATERALLY RECOMMEND SUCH

8


CONVERSION/ALTERNATIVE BASE UTILIZATION PROJECTS
WITHOUT THE PARTNERSHIP OF THE CONVERSION
AUTHORITY BUT IN JOINT-VENTURE AGREEMENTS WITH
OTHER GOVERNMENT ENTITIES SIMILARLY MANDATED TO
DEVELOP GOVERNMENT PROPERTIES SUBJECT, HOWEVER,
TO THE APPROPRIATE EXECUTIVE AND CONGRESSIONAL
REVIEW AND APPROVAL: PROVIDED, FINALLY, THAT IN
FURTHERAN! OF ITS MANDATE FOR OPERATIONAL
READINESS, THE ARMED FORCES OF THE PHILIPPINES MAY,
SUBJECT TO PRESIDENTIAL APPROVAL AND CONGRESSIONAL
CONCURRENCE, LEASE OUT TRAINING SPACES WITHIN
MILITARY BA: 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 PHILIPPIN!

THE CONVERSION AUTHORITY SHALL HENCEFORTH
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 PERSONNEL OF THE ARMED
FORCES OF THE PHILIPPINES SHALL BE CONSIDERED AS A
NECESSARY COMPONENT OF THIS MANDATE.”

Sec. 6. Section 9 of the same Act is hereby amended to read as follows:

“Sec. 9. Board of Directors; Composition. ~ The powers and functions
of the Conversion Authority shall be exercised by a Board of Directors to be
composed of [nine (9)] THIRTEEN (13) members, as follows:

(a) A full-time Chairman who shall also be the President of the
Conversion Authority;

(b) [Eight (8) other members from the private sector, two (2) of whom
coming from the labor sector.| SEVEN (7) OTHER MEMBERS
FROM THE PRIVATE SECTOR, TWO OF WHOM SHOULD
COME FROM THE LABOR SECTOR;

(C) ONE REPRESENTATIVE FROM THE DEPARTMENT OF
NATIONAL DEFENSE WHO SHALL BE THE ASSIS
SECRETARY FOR INSTALLATIONS AND LOGISTI

(D) ONE REPRESENTATIVE EACH FROM THE PHILIPPINE
AIR FORCE, PHILIPPINE ARMY AND PHILIPPINE NAVY
WHO SHALL BE AT LEAST A COLONEL OR CAPTAIN
(PN); AND

(E) ONE REPRESENTATIVE FROM THE GENERAL.
HEADQUARTERS OF THE ARMED FORCES OF THE

9


PHILIPPINES WHO SHALL BE AT LEAST A COLONEL OR
CAPTAIN (PN).”

The Chairman and members hereof shall be appointed by the President
with the consent of the appropriate Congressional oversight committee. Of the
initial members of the Board pursuant to this Act, [three (3), including] the
chairman, fa representative from the private sector and a representative from
the labor sector shall be appointed for a term of six (6) years, three (3) for a
term of four (4) years and the other three (3) for a term of two (2) years}
FOUR FROM THE PRIVATE SECTOR AND ONE FROM THE
LABOR SECTOR SHALL EACH HAVE A TERM OF SIX (6) YEARS
WHILE THE REMAINING MEMBERS FROM THE PRIVATE AND
LABOR SECTORS SHALL EACH HAVE A TERM OF FOUR (4)
YEARS. THE REPRESENTATIVES FROM THE DEFENSE
DEPARTMENT AND THE AFP SHALL HAVE A TERM OF TWO
YEARS. In case of vacancy in the Board, the appointee shall serve the
unexpired term of the predecessor.

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. THE APPOINTMENT OF THESE MEMBERS
SHALL BE WITHOUT ANY REAPPOINTMENT.

THE TERM OF OFFICE OF THE REPRESENTATIVE FROM
THE DEPARTMENT OF NATIONAL DEFENSE SHALL BE CO-
TERMINOUS WITH THE POSITION OF THE ASSISTANT
SECRETARY FOR INSTALLATIONS AND LOGISTICS. WITH
RESPECT TO THE REPRESENTATIVES FROM THE AFP, 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 on not more than Five
Thousand Pesos (P5,000.00) 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 15 of the same Act is hereby amended to include the following
provisions:

“IN ALL SPECIAL ECONOMIC ZONES CREATED BY THE

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PRESIDENT IN THE IMPLEMENTATION OF THIS ACT, THE
MAJOR SERVICES 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
CORPORATIONS. MAJOR SERVICE COMMANDERS SHALL
NOMINATE AS THEIR RESPECTIVE REPRESENTATIVES ONLY
ACTIVE DUTY OFFICERS WHOSE PRIMARY 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 CUMULATIVELY.”

Section 8. The provisions of Section 20 of the same Act are hereby deleted and in licu
thereof, there shall be inserted the following paragraphs which shall read as follows:

“SEC. 20. TRANSITORY PROVISIONS. ~ ALL PROCEEDS AND
INCOME, INCLUDING INTEREST EARN: DERIVED FROM
THE SALE, LEASE, JOINT VENTURE AGREEMENTS AND ALL
OTHER TRANSACTIONS INVOLVING MILITARY BASES AND
RESERVATIONS AND/OR PORTIONS THEREOF, SHALL BE
CONSTITUTED AS PART OF THE AFP MODERNIZATION 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.”

Sec. 8. Implementing Rules. ~ The President of the Philippines shall promulgate such
rules and regulations as may be necessary for the proper implementation of this Act within
three (3) months from its effect

Sec. 9. Separability Clause. — If any provision of this Act shall be held
unconstitutional or invalid, the other provisions not otherwise affected shall remain in full
force and effect.

Sec. 10. Repealing Clause. ~ All laws, rules, regulations, orders, circulars and
memoranda inconsistent with this Act are hereby repealed or modified accordingly.

See. 11. Effectivity. ~ This Act shall take effect upon its publication in at least one (1)
newspaper of general circulation.

Approved,

Tt