NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
s. no2112
345'.
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23 MRY -3 ffl! 38
Introduced by Senator Christopher Lawrence "Bong" T. Go
AN ACT
MODERNIZING THE PHILIPPINE COAST GUARD, CREATING FOR THE 
PURPOSE THE PHILIPPINE COAST GUARD MODERNIZATION TRUST FUND 
AND APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
The Philippines is composed of over 7,100 islands, with a vast and complex 
maritime territory spanning 18,000 kilometers of coastline. For years, the coastal areas 
have been integral to the livelihoods of various communities, serving as transportation 
hubs for trade and commerce. To ensure the protection of the marine environment and 
resources, as well as the safety of those at sea. Republic Act No. 9993 or the "Philippine 
Coast Guard Law of 2009" mandates the Philippine Coast Guard to enforce applicable 
laws within Philippine waters, conduct maritime security operations, and safeguard life 
and property at sea.
In 2011, Executive Order No. 57 was issued to establish the National Coast 
Watch System, which aims to improve coordination and communication among 
government agencies involved in maritime security and protection. These actions reflect 
the government's commitment to prioritize maritime security, especially in the face of 
maritime challenges, threats, and other security concerns.


However, despite the Philippine Coast Guard's responsiveness in fulfilling its 
duties, recent years have seen an increase in maritime accidents and incidents such as 
ship collisions, groundings, and oil spills. In the five-year period from 2015 to 2019, 
4,467 maritime incidents were recorded within Philippine territorial waters, highlighting 
the need for modernization to enhance its capability to respond to these incidents and 
accidents effectively.
The Philippine Coast Guard faces several challenges that hinder its improvement 
and long-term efficiency. The lack of necessary resources such as modern vessels, 
aircraft, and other equipment, as well as trained personnel, poses a significant 
hindrance to its ability to carry out its duties effectively. Outdated equipment and 
inadequate disaster response capabilities further complicate the Coast Guard's role in 
disaster response efforts, which is critical given the Philippines' vulnerability to natural 
disasters. Thus, the problems faced by the Philippine Coast Guard are significant and 
require action to be taken, there is a compelling need for the government to pass this 
bill modernizing the Coast Guard. Doing so will ensure that the PCG can better protect 
the country's maritime interests, address outdated equipment, enhance disaster 
response capabilities, and boost the country's economy.
In view of the foregoing, the approval of this measure is earnestly sought
SENATOR CHRISTOPHER LAWRENCE "BONG" T. GO


M. ^eUfl!E
I
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NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
S. No.
SENATE 
2112
23 HAY -3 All 39
RECtIVLD B'-'
Introduced by Senator Christopher Lawrence "Bong" T. Go
AN ACT
MODERNIZING THE PHILIPPINE COAST GUARD. CREATING FOR THE 
PURPOSE THE PHILIPPINE COAST GUARD MODERNIZATION TRUST FUND 
AND APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
SECTION 1. Tide. - This Act shall be known as the "Philippine Coast Guard
2 
Modernization Act."
3 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to
4 
develop the Philippine Costal Guard (PCG), and ensure the continued protection and
5 
defense of our maritime border, economy, and environment. Toward this end, the
6 
Modernization Program under this Act shall develop and enhance the capabilities of the
7 
PCG to effectively perform under the following functional areas:
8 
a. Maritime Safety;
9 
b. Maritime Search and Rescue:
10 
c. Maritime Security:
11 
d. Maritime Law Enforcement; and
12 
e. Maritime Environment Protection


1 
SEC. 3. Philippine Coast Guard Modernization Program. - Within a period not
2 
exceeding ten (10) years after the effectivity of this Act, the PCG shall implement the
3 
Philippine Coast Guard Modernization Program, hereinafter referred to as the Program.
4 
The PCG shall continue to perform its powers and discharge its functions as provided in
5 
Section 3 of Republic Act No. (RA) 9993, also known as "Philippine Coast Guard Law of
6 2009." Payments for the amortization of outstanding multi-year contract obligations
7 
incurred under Section 7 of this Act may however extend beyond this period.
8 
SEC. 4. Objectives of the Modernization Program. - The PCG Modernization
9 
Program shall be implemented in accordance with the following objectives:
10 
(a) To minimize, if not totally eliminate accidents at sea;
11 
(b) To reduce the search efforts and hasten response time during search and rescue
12 
operations:
13 
(c) To contribute substantially to securing maritime zones or territorial waters from
14 
terrorism, lawlessness, and other threats to national security and territory;
15 
(d) To effectively contribute to the enforcement of the Philippine criminal and other
16 
special laws within the maritime zone or territorial waters: and
17 
(e) To minimize, if not eliminate, pollution in the maritime zones or areas and hasten
18 
response time to recover split pollutants.
19 
SEC. 5. Components of the Modernization Program. - The PCG Modernization
20 
Program shall have the following components:
21 
(a) Organization Development. The restructuring and streamlining of the PCG units
22 
and offices to avoid the overlapping of functions, simplify procedures and
23 
improve response 
time.
24 
(b) Human Resources. The professionalization of its human resource with
25 
educated, motivated, and highly skilled personnel in their respective fields of
26 
specialization.
27 
(c) Doctrine of Development. The rationalization system, standards, and
28 
procedures in the administration of the PCG include the generation, evaluation,
29 
consolidation, and formalization of doctrines: the conduct of the periodic review


1 
and validation of doctrines through field application, testing, and exercises; and
2 
the dissemination of approved doctrines at all levels of command.
3 
(d) Infrastructure Development. The basic and support system required to ensure
4 
that services are rendered efficiently includes the acquisition and upgrade of
5 
basic and support facilities for administrative and operational services, and the
6 
acquisition and upgrade of basic facilities such as aircraft command, control,
7 
and communication platform which are range and endurance-capable 
to
8 
continuously monitor edge of the exclusive economic zone (EEZ) with night
9 
navigation capability, including remote-controlled drones.
10 
(e) Equipment and Facilities Acquisition and Modernization. The acquisition and
11 
upgrade of contemporary, modern, and state-of-the-art equipment and system
12 
to enhance the capabilities of the PCG in the performance of its mandate which
13 
includes the following:
14 
(1) Upgrade the vessel to a mission-specific level with a high degree of
15 
flexibility to perform other functional area operations. The vessel must be
16 
well-maintained for full operational status at least three hundred (300)
17 
days a year and must be interfaced with the latest cutting-edge
18 
technology for ease of operation.
19 
(2) Remotely operated 
submersibles for deep-sea search, retrieval, and
20 
monitoring operations.
21 
(3) Weapons that are marine-environment resistant and designed primarily to
22 
disable hostile personnel and equipment.
23 
(4) K-9 units which are capable of detecting bombs, drugs, toxic substances,
24 
and search and rescue (SAR) operations, among others:
25 
(5) Uninterruptible PCG internal communications seamlessly interoperable
26 
with other agencies as well as communications with commercial vessels
27 
operating within the Philippine maritime zones or territorial waters;
28 
(6) Training equipment capable of simulating foreseeable emergencies or
29 
hostile situations;


1 
(7) Aids to navigation that are consistent with International Association of
2 
Lighthouse Authorities standards:
3 
(8) Accurate and real-time monitoring and detection systems; and
4 
(9) Laboratories with technologically current equipment.
5 
SEC. 6. Submission of the Modernization Program. - Within ninety (90) days
6 
from the effectivity of this Act, the PCG Commandant shall, in accordance with the
7 
Secretaries of The DOTr and Department of Budget and Management (DBM), submit
8 
the PCG Modernization Program to Congress. The Program shall indicate the following:
9 
(a) The size and shape of the PCG in terms of personnel, equipment, and facilities
10 
during the various phases of the Program.
11 
(b) The modernization project under each phase including the major weapon and
12 
non-weapon equipment and technology acquisition, infrastructure
13 
construction or improvement to be made, and the particular objectives and
14 
components under Section 4 and 5 respectively, of this Act to which such
15 
intended acquisition, constructions or improvements belongs: and
16 
(c) The priorities, schedules as well as the estimated average cost for each
17 
modernization component project or upgrading to be undertaken. In the event
18 
Congress approves the PCG Modernization Program, the joint resolution shall be
19 
the basis for subsequent executive and legislative actions to implement the
20 
program until its completion and full realization.
21 
SEC. 7. Multi-year Contracts. - The Secretary of the DOTr may, pursuant to the
22 
program, projects, and appropriations approved by Congress and subject to the
23 
approval by the President, enter into multi-year contracts and other agreements or
24 
arrangements in accordance with the provisions of existing laws and regulations
25 
including those of the Commission on Audit and under such terms and conditions most
26 
favorable to the government.
27 
The Congress shall, upon certification by the President, make the corresponding
28 
appropriation for the ensuing fiscal year in payment for multi-year contracts: Provided,
29 
that Congress shall appropriate only such funds as may be necessary to pay any unpaid
4


1 
amount when the appropriated funds mentioned in Section 13 of this Act are not
2 
sufficient or available to meet the payment, in full or in part.
3 
The Secretary of the DOTr shall submit copies of these multi-year contracts and
4 
other agreements or arrangements to Congress.
5 
SEC. 8. Self-reliance Program. - In implementing the Program, the PCG shall, as
6 
far as practicable, give preference to Filipino contractors and suppliers and secondly to
7 
foreign contractors or suppliers, willing and able to locate a substantial portion of, if not
8 
the entire, production process of the terms involve within the Philippines.
9 
In order to generate local employment opportunities, and enhance technology
10 
transfer to the Philippines, the Secretary of the DOTr shall, as far as feasible,
11 
incorporate in each contract or agreement special foreign exchange reduction schemes
12 
such as countertrade, in country manufacture, co-production, or other innovative
13 
arrangements or combination thereof.
14 
The PCG shall likewise ensure that in negotiating all applicable contracts or
15 
agreements, provisions are incorporated respecting the transfer to the PCG of the
16 
principal technology involved as well as the training of the PCG personnel to operate
17 
and maintain such equipment and technology.
18 
SEC. 9. Philippine Coast Guard Modernization Trust Fund. - There is hereby
19 
created a trust fund, to be known as the Philippine Coast Guard Modernization Trust
20 
Fund to be administered by the Secretary of the DOTr in accordance with existing rules
21 
and regulations. The trust fund shall be used exclusively for the PCG Modernization
22 
Program excluding salaries and allowances. The trust fund shall be funded out of the
23 
following:
24 
(a) Appropriation for the Philippine Coast Guard Modernization Program
25 
(b)The proceeds from the sale, lease, or joint development of coast guard
26 
properties and lighthouse reservations, as may be authorized by the Congress,
27 
including such immovable and other facilities as may be found therein, not


1 
covered by the Bases Conversion Development Authority, as provided for in
2 
Republic Act No. (RA) 7227, otherwise known as the Bases Conversion and
3 
Development Act of 1992;
4 
(c) Shares of the PCG from the proceeds of the sale of the coast guard properties
5 
provided for under the Bases Conversion and Development Act of 1992;
6 
(d)The proceeds from the disposal of excess or uneconomically repairable
7 
equipment and other movable properties in the PCG arsenal;
8 
(e) Funds from budgetary surplus, if any, as may be authorized by Congress subject
9 
to the provisions of Section 13 of this Act;
10 
(f) Dues, fines, and penalties collected by the PCG in the exercise of its functions;
11 
and
12 
(g) All interest income of the trust fund.
13 
SEC. 10. Equipment Acquisition Per Function Area. - In order to further
14 
specialize PCG capabilities, equipment acquisition shall be initiated within the respective
15 
functional areas as mentioned in Section 2 of this Act but integrated into the Program
16 
to allow inter-operability and ensure a greater degree of reliability.
17 
SEC. 11. Contract Negotiation. - The procurement process shall be governed in
18 
accordance with Republic Act No. (RA) 9184, otherwise known as the "Government
19 
Procurement Reform Act", and its revised implementing rules and regulations. The
20 
procurement process shall be exercised by the PCG General Fleadquarters unless
21 
delegated to the next lower-level management by the PCG Commandant.
22 
SEC. 12. Progress Report. - The Secretary of the DOTr shall submit to the
23 
President and Congress, an annual report on the status of the Philippine Coast Guard
24 
Modernization Act Trust Fund, as provided for in Section 9 of this Act, not later than the
25 
end of the first quarter of the succeeding year.
26 
The Commandant of the PCG shall also submit to the President and Congress,
27 
and the Secretary of the DOTr, an annual status report containing the process of the
28 
implementation of the modernization program under this Act including the PCG


1 
modernization activities implemented prior to the approval of this Act not later than the
2 
end of the first quarter of the succeeding year.
10
13
15
SEC. 13. Appropriations. - The amount necessary to implement the provisions of 
this Act shall be sourced from the PCG Modernization Trust Fund as provided in Section 
9 of this Act. In addition, the annual appropriations for the PCG Modernization Program 
shall include the amount necessary to support the funding requirements for all 
modernization projects submitted to Congress. The funds to be appropriated to 
implement the provisions of this Act shall be included in the General Appropriations Act 
under the DOTr.
SEC. 14. Separability Clause- If any provision of this Act is declared
11 
unconstitutional or invalid, the remainder of this Act or any provisions not affected
12 
thereby shall remain in full force and effect.
SEC. 15. Repealing Clause- All laws, executive orders, rules, and regulations
14 inconsistent with or contrary to this Act, are hereby repealed or amended accordingly.
SEC. 16. Effectivity- This Act shall take effect fifteen (15) days after its publication
16 in the Official Gazette or a newspaper of general circulation. 
Approved,