Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

Nineteenth Congress
Third Regular Session

HOUSE BILL NO. 44995

Introduced by Representative Rosanna “Ria” Vergara

EXPLANATORY NOTE

Foreign investment is essential to the economic growth and development of a
country. It plays a key role in helping a nation reach its economic potential by
fostering business activities, introducing new technologies, and improving the
competitiveness of local businesses. Moreover, foreign investment results in job
creation, which boosts income levels and helps elevate the standard of living within
the receiving country.

Given these benefits, it is crucial for governments to create an economic environment
that is attractive to international investors. Policies that encourage foreign
investment can make a country more appealing globally. Governments that
prioritize and improve their investment policies not only draw in more foreign
businesses but also promote economic stability, which further enhances the
country's appeal.

In line with these objectives, this bill seeks to amend Republic Act No. 7652, also
known as “Investors’ Lease Act” by extending the maximum lease period allowed
for foreign investors to ninety-nine (99) years. By increasing the allowable lease term,
the bill provides investors with the confidence to undertake long-term projects and
make strategic business decisions with a sense of security.

In view of the foregoing, approval of this bill is earnestly sought.

AY

RO! |A “RIA” VE} RA



Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

Nineteenth Congress
Third Regular Session

HOUSE BILL No. 11925

Introduced by Representative Rosanna “Ria” Vergara

AN ACT AMENDING REPUBLIC ACT NO. 7652, OTHERWISE KNOWN
AS THE “INVESTORS” LEASE ACT,” TO EXTEND THE MAXIMUM LEASE
PERIOD OF PRIVATE LANDS TO FOREIGNERS

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

assembled:

Section 1. Section 3 of Republic Act No. 7652 is hereby amended to read as
follows:

“Section 4. Coverage. - Any foreign investor investing in the Philippines shall
be allowed to lease private lands in accordance with the laws of the Republic of the
Philippines subject to the following conditions:

(1) [No} THE AGGREGATE PERIOD OF THE lease contract shall be for a
period NOT exceeding [fifty-(50)-years-renewable-once-for a period-of not- more
than twenty-five (25) years] NINETY-NINE (99) YEARS;

"(2) The leased area shall be used solely for the purpose of the investment

upon the mutual agreement of the parties;



"(3) The leased premises shall comprise such area as may reasonably be
required for the purpose of the investment subject however to the Comprehensive

Agrarian Reform Law and the Local Government Code.

The leasehold right acquired under long-term lease contracts entered into
pursuant to this Act may be sold, transferred, or assigned: Provided, That when the
buyer, transferee, or assignee is a foreigner or a foreign-owned enterprise, the
conditions and limitations in respect to the use of the leased property as provided

for under this Act shall continue to apply."

Section 2. Implementing Rules and Regulations. - Upon effectivity of this Act,
the Board of Investments, the Fiscal Incentives Review Board, and the Land
Registration Authority, in consultation with other concerned government agencies
and stakeholders, shall promulgate the necessary implementing rules and
regulations for the effective implementation of this Act.

Section 3. Repealing Clause. - Alll laws, executive orders, proclamations, rules,
regulations and other issuances or parts thereof which are inconsistent with the
provisions of the Act are hereby repealed, amended, or modified accordingly.

Section 4. Separability Clause. - If any part of this Act is held unconstitutional
or invalid, other parts or provisions thereof which are not affected shall continue in
full force and effect.

Section 5. Effectivity. - This Act shall take effect fifteen (15) days following
completion of its publication in the Official Gazette or at least two (2) newspapers

of general circulation.

Approved,