Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO.  ________ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 
AN ACT  
MODERNIZING THE PHILIPPINE COAST GUARD, CREATING FOR THE 
PURPOSE THE PHILIPPINE COAST GUARD MODERNIZATION TRUST 
FUND, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER 
PURPOSES 
EXPLANATORY NOTE 
The Philippine Coast Guard (PCG) was established through Republic 
Act (R.A.) No. 5173 as a major unit under the Philippine Navy in 1967, and 
subsequently transferred to the Office of the President after more than two (2) 
decades. In 1998, by virtue of Executive Order No. 477, it became an attached 
agency of the then Department of Transportation and Communications (DOTC) 
for policy and program coordination.1  
At present, it is governed by R.A. No. 9993, or the “Philippine Coast 
Guard Law of 2009.” Its core functions are as follows:2 
a) Maritime safety, to help prevent or minimize unnecessary loss of lives
and properties at sea;
b) Maritime security, to contribute to good order at sea through regular
patrol and surveillance for the safety of navigation of ships, to
safeguard ships from illegal acts, and to promote freedom of
1 Philippine Maritime Strategy. Available at https://marina.gov.ph/wp-content/uploads/2021/01/Philippine-
Maritime-Strategy-on-the-Implementation-and-Enforcement-of-Relevant-IMO-Instruments-2020-
2024.pdf.   
2 Philippine Coast Guard. Available at https://coastguard.gov.ph/.  
August 7, 2023
4:44 pm
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navigation; 
c) Maritime search and rescue, to render aid to persons and vessels in
distress, and conduct operations in marine accidents within the
Philippine maritime jurisdiction;
d) Maritime law enforcement, to implement laws within the country’s
maritime jurisdiction, including laws on fisheries, immigration, tariff
and customs, forestry, firearms and explosives, human trafficking,
and dangerous drugs, and to battle transnational crimes; and
e) Marine environmental protection, to implement and undertake
measures as regards oil pollution, prevention, mitigation, and control
through the conduct of monitoring and response operations.
With the Philippines having the fifth longest shoreline in the world with 
more than 36,000 kilometers of shoreline, the continuous claim to the country’s 
exclusive sovereign rights over the West Philippine Sea and other maritime 
territories, and the need for a more rigorous enforcement of the rules on 
seaworthiness, safety requirements, and manning compliance of vessels, 
among others, the role of the PCG as guardians of the Philippine archipelago 
is undeniable. Thus, the PCG requires the full support of the government in 
order to strengthen our maritime presence, including through the acquisition of 
top-of-the-line assets and equipment and capacity-building of personnel. 
Thus, the bill mandates the implementation of the PCG Modernization 
Program (“Program”) over a period of fifteen (15) years covering the five (5) 
core mandates of the agency. The Program shall include components on 
organizational development of the PCG, human resources development, 
doctrine of development, infrastructure for operations and support, and 
equipment facilities acquisition. 
In the implementation of the Program, preference shall be given to 
Filipino contractors and suppliers and secondarily, to foreign contractors or 
suppliers who will be willing and able to locate their production processes in the 
country, fully or partially. Likewise, technology transfer and capacity-building 
shall be key components in agreements or arrangements to be entered into 
under the Program. 
Lastly, the PCG Modernization Trust Fund, to be administered by the 
Department of Transportation (DOTr), shall be established, to be used 
exclusively for the implementation of the Program, to supplement funds for all 
modernization projects to be undertaken by the PCG. 
In view of the foregoing, the immediate passage of this bill is earnestly 
sought. 
EDUARDO “BRO. EDDIE” C. VILLANUEVA 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO.  ________ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 
AN ACT  
MODERNIZING THE PHILIPPINE COAST GUARD, CREATING FOR THE 
PURPOSE THE PHILIPPINE COAST GUARD MODERNIZATION TRUST 
FUND, 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 “Philippine 
1 
Coast Guard Modernization Act.” 
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SEC. 2. Declaration of Policy. – It is hereby declared the policy of the 
4 
State to develop the Philippine Coast Guard (PCG) and ensure the continued 
5 
protection and defense of our maritime border, economy and environment. 
6 
Toward this end, the Modernization Program under this Act shall develop and 
7 
enhance the capabilities of the PCG to effectively perform under the following 
8 
functional areas: 
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a) Maritime Safety;
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b) Maritime Search and Rescue;
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c) Maritime Security;
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d) Maritime Law Enforcement; and
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e) Maritime Environment Protection.
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SEC. 3. Philippine Coast Guard Modernization Program. – The PCG
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shall implement the Philippine Coast Guard Modernization Program, 
1 
hereinafter referred to as the Program, over a period of fifteen (15) years 
2 
effective upon the date of approval of this Act: Provided, however, That the 
3 
payments for the amortization of outstanding multi-year contracts and 
4 
obligations incurred under the Program may extend beyond this period.  
5 
 
6 
The PCG shall continue to perform its powers and discharge its 
7 
functions as provided in Section 3 of Republic Act No. 9993, also known as the 
8 
"Philippine Coast Guard Law of 2009."  
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SEC. 4. Objectives. – The Program shall be implemented in 
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accordance with the following objectives: 
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a) Minimize, if not totally eliminate, accidents at sea; 
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b) Reduce the search efforts and hasten response time during search and  
16 
rescue operations; 
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c) Contribute substantially to securing maritime zones and territorial waters 
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from terrorism, lawlessness and other threats to national security and 
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territory; 
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d) Effectively contribute to the enforcement of Philippine criminal and other 
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special laws within the maritime zones and territorial waters; and 
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e) Minimize, if not totally eliminate, pollution in the maritime zones or areas 
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and hasten response time in cases of emergencies. 
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SEC. 5. Components of the Program. – The Program shall have the 
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following components: 
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a) Organization Development – The restructuring and streamlining of the 
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PCG units and offices to avoid the overlapping of functions, simplify 
33 
procedures and improve response time. 
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35 
b) Human Resources – The professionalization of its human resource with 
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educated, motivated, and highly skilled personnel in their respective 
37 
fields of specialization. 
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c) Doctrine of Development – The rationalization system, standards, and 
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procedures in the administration of the PCG shall include the generation, 
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evaluation, consolidation, and formalization of doctrines; the conduct of 
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periodic review and validation of doctrines through field application, 
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testing and exercises; and the dissemination of approved doctrines at 
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all levels of command. 
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d) Infrastructure Development – The basic and support system required to 
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ensure that services are rendered efficiently shall include the acquisition 
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and upgrade of basic and support facilities for administrative and 
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operational services, and the acquisition and upgrade of basic facilities, 
50 


such as aircraft command, control, and communication platform which 
1 
are range and endurance-capable to continuously monitor edge of the 
2 
exclusive economic zone (EEZ) with night navigation capability, 
3 
including remote-controlled drones. 
4 
 
5 
e) Equipment and Facilities Acquisition and Modernization – The 
6 
acquisition and upgrade of contemporary, modern, and state-of-the-art 
7 
equipment and system to enhance the capabilities of the PCG in the 
8 
performance of its mandate which includes the following: 
9 
 
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1) Upgrade the vessel to a mission-specific level with a high degree of 
11 
flexibility to perform other functional area operations. The vessel 
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must be well-maintained for full operational status at least three 
13 
hundred (300) days a year and must be interfaced with the latest 
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cutting-edge technology for ease of operation; 
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2) Remotely operated submersibles for deep-sea search, retrieval and 
17 
operations; 
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3) Weapons that are marine environment resistant and designed 
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primarily to disable hostile personnel and equipment; 
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4) K-9 units which are capable of detecting bombs, drugs, toxic 
23 
substances, and assisting in search and rescue (SAR) operations, 
24 
among others; 
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5) Uninterruptible PCG internal communications that is seamlessly 
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interoperable with other agencies, as well as communications with 
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commercial vessels operating within the Philippine maritime zones 
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and territorial waters; 
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6) Training equipment capable of simulating foreseeable emergencies 
32 
or  hostile situations; 
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7) Aids to navigation that are consistent with the standards of the 
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International Association of Lighthouse Authorities; 
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8) Accurate and real-time monitoring and detection systems; and 
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9) Laboratories with technologically current equipment. 
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SEC. 6. Submission of the Program. – Within one hundred eighty 
42 
(180) days from the effectivity of this Act, the PCG Commandant shall, in 
43 
coordination with the Secretaries of the Department of Transportation (DOTr), 
44 
the Department of Budget and Management (DBM), and the Department of 
45 
Finance (DOF), submit the Program to the Senate of the Philippines and to the 
46 
House of Representatives for information. The Program shall indicate the 
47 
following: 
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a) Personnel and inventory of equipment and facilities during the various 
50 


phase of the Program; 
1 
 
2 
b) Modernization projects and activities to be undertaken, with the 
3 
corresponding functional area, component, and phase, to which such 
4 
projects relate to, including the major weapon and non-weapon 
5 
equipment and technology acquisition, infrastructure construction or 
6 
improvements to be made, and the particular objectives and 
7 
components under Sections 4 and 5 respectively, of this Act to which 
8 
such intended acquisition, construction or improvements pertain to; and 
9 
 
10 
c) Priorities, schedules, and phases of implementation of modernization 
11 
projects and activities; and 
12 
 
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d) Estimated average cost for each modernization project to be undertaken. 
14 
 
15 
SEC. 7. Multi-year Contracts. – The Secretary of the DOTr may enter 
16 
into multi-year contracts and other agreements or arrangements subject to the 
17 
approval of the President, and in accordance with laws, rules and regulations, 
18 
under such terms and conditions most favorable to the government. 
19 
 
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The Congress shall, upon issuance of a multi-year obligational authority 
21 
or contractual authority by the DBM, make the corresponding appropriation for 
22 
the ensuing fiscal year in payment for multi-year contracts: Provided, That the 
23 
PCG and the DBM shall issue the implementing guidelines to ensure 
24 
consistency with the Program and guidelines on the contracting of multi-year 
25 
projects.  
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The Secretary of the DOTr shall submit to Congress copies of the multi-
28 
year contracts and other agreements or arrangements. 
29 
 
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SEC. 8. Self-Reliance Program. – In implementing the Program, the 
31 
PCG shall, as far as practicable, give preference to Filipino contractors and 
32 
suppliers, and secondly to foreign contractors or suppliers willing and able to 
33 
locate a substantial portion of, if not the entire, production process of the terms 
34 
involved within the Philippines. 
35 
 
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In order to generate local employment opportunities and facilitate 
37 
technology transfer to the Philippines, the Secretary of the DOTr shall, as far 
38 
as feasible, incorporate in each contract or agreement special foreign 
39 
exchange reduction schemes such as countertrade, in-country manufacture, 
40 
co-production, or other innovative arrangements or combination thereof. 
41 
 
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The PCG shall likewise ensure that in negotiating all applicable contracts 
43 
or agreements, provisions regarding the transfer to the PCG of the principal 
44 
technology involved as well as the training of the PCG personnel to operate 
45 
and maintain such equipment and technology are incorporated therein. 
46 
 
47 
SEC. 9. Philippine Coast Guard Modernization Trust Fund. – There 
48 
is hereby created a trust fund, to be known as the “Philippine Coast Guard 
49 
Modernization Trust Fund,” to be administered by the Secretary of the DOTr in 
50 


accordance with laws, rules and regulations. The trust fund shall be used 
1 
exclusively for the Program, including all expenses necessary for the 
2 
procurement of facilities, machineries, equipment, and services, and excluding 
3 
salaries and allowances. The trust fund shall be funded out of the following: 
4 
 
5 
a) Appropriations for the Program; 
6 
 
7 
b) The proceeds from the sale, ease, or joint development of coast guard 
8 
properties and lighthouse reservations, as may be authorized by 
9 
Congress, including such immovable and other facilities as may be 
10 
found therein, not covered by the Bases Conversion and Development 
11 
Authority (BCDA), as provided under Republic Act No. 7227, as 
12 
amended, otherwise known as the Bases Conversion and Development 
13 
Act of 1992; 
14 
 
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c) Shares of the PCG from the proceeds of the sale of the coast guard 
16 
properties provided for under the Bases Conversion and Development 
17 
Act of 1992; 
18 
 
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d) The proceeds from the disposal of excess or uneconomically repairable 
20 
equipment and other moveable properties in the PCG arsenal; 
21 
 
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e) Funds from budgetary surplus, if any, as may be authorized by Congress 
23 
subject to the provisions of Section 13 of this Act; 
24 
 
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f) Loans, grants, bequests, or donations from local and foreign sources, 
26 
specifically earmarked to be used for the Program; 
27 
 
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g) Dues, fines, and penalties collected by the PCG in the exercise of its 
29 
functions; and 
30 
 
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h) All interest income that accrues to the trust fund. 
32 
 
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SEC. 10. Equipment Acquisition Per Functional Area. – In order to 
34 
further specialize PCG capabilities, equipment acquisition shall be initiated 
35 
within the respective functional areas as mentioned in Section 2 of this Act but 
36 
integrated into the Program to allow inter-operability and ensure a greater 
37 
degree of reliability. 
38 
 
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SEC. 11. Contract Negotiation. – The procurement process shall be 
40 
governed by Republic Act No. 9184, otherwise known as the Government 
41 
Procurement Reform Act, and its revised implementing rules and regulations. 
42 
The procurement process shall be exercised by the PCG General 
43 
Headquarters, unless delegated to the next lower-level management by the 
44 
PCG Commandant. 
45 
 
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SEC. 12. Progress Report. – The Secretary of the DOTr shall submit 
47 
to the Office of the President and to Congress an annual report on the status 
48 
of the Philippine Coast Guard Modernization Act Trust Fund as provided for in 
49 
Section 9 of this Act, as well as the status of the implementation of the Program, 
50 


not later than the end of the first quarter of the succeeding year. 
1 
 
2 
SEC. 13. Appropriations. – The amount necessary to implement the 
3 
provisions of this Act shall be sourced from the PCG Modernization Trust Fund 
4 
as provided under Section 9 of this Act.  
5 
 
6 
In addition, the annual appropriations for the Program shall include the 
7 
amounts necessary to support the funding requirement for all modernization 
8 
projects submitted to Congress. The funds to be appropriated shall be included 
9 
in the General Appropriations Act under the DOTr.  
10 
 
11 
SEC. 14. Implementing Rules and Regulations. – Within ninety (90) 
12 
days from the effectivity of this Act, the PCG and the DOTr shall, in coordination 
13 
with appropriate government agencies and other stakeholders, promulgate the 
14 
rules and regulations to effectively implement the provisions of this Act. 
15 
 
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SEC. 15. Separability Clause. – If any portion or provision of this Act is 
17 
subsequently declared invalid or unconstitutional, other provisions hereof 
18 
which are not affected thereby shall remain to be in full force and effect. 
19 
 
20 
SEC. 16. Repealing Clause. – All other laws, acts, presidential decrees, 
21 
executive orders, circulars, administrative orders, rules and regulations, and 
22 
other issuances which are contrary to or inconsistent with any of the provisions 
23 
of this Act are hereby repealed, amended, or modified accordingly. 
24 
 
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SEC. 17. Effectivity. – This Act shall take effect fifteen (15) days 
26 
following its publication in the Official Gazette or in a national newspaper of 
27 
general circulation. 
28 
 
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Approved, 
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