NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. 1800
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23 JAN 30 P2:05
RECEIVCO BV.
Introduced by SENATOR IMEE R. MARCOS
AN ACT
ESTABLISHING A SPECIAL ECONOMIC ZONE AND FREE PORT IN ORMOC 
CITY, PROVINCE OF LEYTE TO BE KNOWN AS THE "EASTERN VISAYAS 
SPECIAL ECONOMIC ZONE AND FREE PORT" AND APPROPRIATING FUNDS
THEREFOR
EXPLANATORY NOTE
Article II, Section 20 of the 1987 Philippine Constitution provides that, "The State 
recognizes the indispensable role of the private sector, encourages private enterprise, 
and provides incentives to needed investments."
The United Nations Conference on Trade and Development (UNCTAD) defines 
Special Economic Zones (SEZs) in its World Investment Report 2019 as geographically 
delimited areas within which governments facilitate industrial activity through fiscal and 
regulatory incentives and infrastructure support. Currently, there are over 5,300 SEZs 
in over 140 economies.
According to the United Nations (UN) Habitat, SEZs have been a popular policy 
instrument to stimulate economic growth. It has widely been present globally in both 
developed and developing countries. Moreover, economies benefit from the clustering 
of industries either as firms in the same sector (localization economies) or as diverse 
firms in the same location (urbanization economies). Studies also show that a strategic 
location close to key infrastructure hubs, large markets and labor pools is fundamental 
to attracting investors into a zone. SEZs that are located in urban centers which are 
densely populated tend to be successful.
This bill seeks to establish a special economic zone in Ormoc City, Province of 
Leyte to be known as Eastern Visayas Special Economic Zone, which shall be managed
1


and operated by the Eastern Visayas Special Economic Zone Authority. The creation of 
the Eastern Visayas Special Economic Zone will alleviate and improve the economic 
condition of Province of Leyte and nearby provinces. The residents will be assured of 
local employment opportunities which will accelerate the economic growth not only in 
the area but in the nearby provinces as well.
For the foregoing reasons, the passage of this bill is earnestly sought.
MARCOS


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NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
S.B. No
SENATE 
1800
23 JAN 30 P2:05
RECEIVLD BY;
Introduced by SENATOR IMEE R. MARCOS
AN ACT
ESTABLISHING A SPECIAL ECONOMIC ZONE AND FREE PORT IN ORMOC 
CITY, PROVINCE OF LEYTE TO BE KNOWN AS THE "EASTERN VISAYAS 
SPECIAL ECONOMIC ZONE AND FREE PORT", AND APPROPRIATING FUNDS
THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
1 
CHAPTER I
2 
GENERAL PROVISIONS
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SECTION 1. Short Title. - This Act shall be known as the "Eastern Visayas
5 
Special Economic Zone and Free Port Act".
7 
SEC. 2. Declaration of Policy. - It is declared the policy of the State to
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encourage, promote, and accelerate the sound and balanced industrial, economic and
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social development of the country. The establishment of special economic zones shall
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attract legitimate and productive foreign investments in strategic locations in the
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country. It shall generate employment and increase productivity and individual, as well
12 
as family incomes, thereby enhancing the quality of life of the Filipino people.


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CHAPTER II
CREATION OF THE ECONOMIC ZONE AND FREEPORT
SEC. 3. Creation of the Eastern Visayas Special Economic Zone and Free Port. 
- In accordance with the foregoing declared policy and subject to the concurrence of 
the concerned local government units (LGUs) of the Ormoc City, Province of Leyte, 
there is hereby established a special economic zone, hereinafter referred to as the 
Eastern Visayas Special Economic Zone or EVIS Ecozone. The specific metes and 
bounds of the EVIS Ecozone shall be more particularly defined in a presidential 
proclamation that shall be issued for this purpose: Provided, That the lands embraced 
therein shall be contiguous to one another.
SEC. 4. Creation of the Eastern Visayas Special Ecozone Authority. - There is 
created a body corporate to be known as the Eastern Visayas Special Economic Zone 
Authority, hereinafter referred to as the EVIS Authority, which shall manage and 
operate the EVIS Ecozone in accordance with the provisions of this Act. The corporate 
life of the EVIS Authority shall expire in fifty (50) years, counted from the first year 
after the effectivity of this Act, unless otherwise extended by Congress. It shall be 
organized within one hundred eighty (180) days after the effectivity of this Act.
SEC. 5. Governing Principles. - The EVIS Authority shall manage and operate 
the EVIS Ecozone, under the following principles:
a) Within the framework and limitations of the Constitution and applicable 
provisions of Republic Act No. 7160, or the Local Government Code, as amended, the 
EVIS Ecozone shall be developed into and operated as a decentralized, self-reliant and 
self-sustaining industrial, commercial, trading, agro-industrial, tourist, banking, 
financial, and investment center with suitable residential areas;
b) The EVIS Ecozone shall be equipped with transportation, telecommunications, 
and other facilities needed to attract legitimate and productive investments, generate 
linkage industries and employment opportunities for the people of the Ormoc City, 
Province of Leyte and those in neighboring towns and cities;
c) c) The EVIS Ecozone may establish mutually beneficial economic relations 
with other entities or enterprises within the country or, subject to the administrative 
guidance of the Department of Foreign Affairs, the Philippine Economic Zone Authority


1 
(PEZA), and the Department of Trade and Industry (DTI), with foreign entities or
2 
enterprises;
3 
d) Foreign citizens and companies owned by non-Filipinos in whatever
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proportion may set up enterprises in the EVIS Ecozone, either by themselves or in a
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joint venture with Filipinos in any sector of industry, international trade and commerce
6 
within the EVIS Ecozone;
7 
e) The EVIS Ecozone shall be managed and operated as a separate customs
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territory thereby ensuring the free flow or movement of goods and capital within, into,
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and out of its territory, and shall likewise provide incentives such as tax and duty-free
10 
importations of raw materials, capital and equipment to registered enterprises located
11 
therein, as provided under Republic Act No. 11534, otherwise known as the "Corporate
12 
Recovery and Tax Incentives for Enterprises Act')
13 
f) The areas comprising the EVIS Ecozone may be expanded or reduced, when
14 
necessary, through a presidential proclamation issued for the said purpose. For this
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purpose, the EVIS Authority, in consultation with the LGUs, shall have the power to
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acquire either by purchase, negotiation or condemnation proceedings, any private land
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within or adjacent to the EVIS Ecozone for the following purposes: (1) consolidation of
18 
lands for zone development; (2) acquisition of right of way to the EVIS Ecozone, and
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(3) the protection of watershed areas and natural assets valuable to the prosperity of
20 
the EVIS Ecozone;
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g) Goods manufactured by EVIS Ecozone enterprise shall be made available for
22 
immediate retail sale in the domestic market, subject to the payment of corresponding
23 
taxes on raw materials and other regulations that may be formulated by the EVIS
24 
Authority together with the PEZA, the Bureau of Customs, the Bureau of Internal
25 
Revenue, and the DTI. However, in order to protect domestic industries, a Negative
26 
List of industries shall be drawn up and regularly updated by the PEZA. Enterprises
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engaged in industries included in such Negative List shall not be allowed to sell their
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products locally; and
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h) The defense of the EVIS Ecozone and the security of its perimeter fence shall
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be the responsibility of the national government in coordination with the EVIS Authority
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and the concerned LGUs.
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SEC. 6. Development Goals of the EVIS Ecozone. - The EVIS Authority shall
33 
determine the development goals of the EVIS Ecozone within the framework of national
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development plans, policies, and goals. The Chairperson-Administrator shall, upon


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approval by the Board of the EVIS Authority, submit the EVIS Ecozone plans, programs,
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and projects to the Regional Development Council for inclusion in the regional
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development plan.
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SEC. 7. Capitalization. - The EVIS Authority shall have an authorized capital
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stock of two billion (2,000,000,000) no par shares with a minimum issue of Ten pesos
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(PhplO.OO) each, the majority shares of which shall be subscribed and paid for by the
7 
national government and the LCDs embracing the EVIS Ecozone. The Board of Directors
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of the EVIS Authority may, with the written concurrence of the Secretary of Finance,
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sell shares representing not more than forty per centum (40%) of the capital stock of
10 
the EVIS Authority to the general public under such policy as the Board and the
11 
Secretary of Finance may determine. The national government and the LGUs shall in
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no case own less than sixty per centum (60%) of the total issued and outstanding
13 
capital of the EVIS Authority.
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The amount necessary to subscribe and pay for the shares of the National
15 
Government to the capital stock of the EVIS Authority shall be included in the annual
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General Appropriations Act. For the LGUs concerned, the funds shall be taken from their
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internal revenue allotment and other local funds.
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SEC. 8. Principal Office of the EVIS Authority. - The EVIS Authority shall
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maintain its principal office in the Ormoc City, Province of Leyte, but it may establish
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liaison offices within the Philippines as may be necessary for the proper conduct of its
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business.
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SEC. 9. Powers and Functions of the EVIS Authority. - The EVIS Authority shall
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have the following powers and functions:
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a) To operate, administer, manage and develop the EVIS Ecozone according to
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the principles and provisions set forth in this Act,
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b) To register, regulate and supervise the enterprises in the EVIS Ecozone in an
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efficient and decentralized manner, subject to existing laws;
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c) To coordinate with LGUs and exercise general supervision over the
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development plans, activities and operations of the EVIS Ecozone;
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d) To regulate and undertake the establishment, construction, operation, and
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maintenance of public utilities, other services, and infrastructure in the EVIS Ecozone
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such as light and power, shipping, barging, stevedoring, cargo handling, hauling.


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warehousing, storage of cargo, port services or concessions, piers, wharves, bulkheads,
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bulk terminals, mooring areas, storage areas, roads, telecommunications, transport,
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bridges, terminals, conveyors, water supply and storage, sewerage, drainage, airport
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operations in coordination with the Civil Aviation Authority of the Philippines, and such
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other services or concessions or infrastructure necessary or incidental to the
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accomplishment of the objectives of this Act;
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e) To construct, acquire, own, lease, operate, and maintain on its own or
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through contracts, franchise, licenses, bulk purchase from the private sector or permits
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under any of the schemes allowed in Republic Act No. 6957, otherwise known as the
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"Build-Operate-Transfer Law", as amended, or joint venture, adequate facilities and
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infrastructure required or needed for the operation and development of EVIS Ecozone,
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in coordination with appropriate national and local government authorities and in
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conformity with applicable laws thereon;
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f) To approve plans, programs and projects of the EVIS Ecozone, to be
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submitted to the Regional Development Council for inclusion and inputs to the overall
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Regional Development Plan;
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g) To operate on its own, either directly or through licenses to others, tourism-
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related activities, including games, amusements, recreational and sports facilities,
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subject to the approval and supervision of the Philippine Amusement and Gaming
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Corporation;
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h) To raise or borrow, within the limitation provided by law, and subject to the
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approval of the Monetary Board of the Bangko Sentral ng Pilipinas (BSP), as the case
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may be, adequate and necessary funds from local or foreign sources, to finance its
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projects and programs under this Act and for this purpose, to issue bonds, promissory
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notes, and other forms of securities, and to secure the same by a guarantee, pledge,
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mortgage, deed of trust or an assignment of all or part of its property or assets;
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i) To protect, preserve, maintain, and develop the forests, beaches, corals and
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coral reefs, and maintain ecological balance within the EVIS Ecozone. Notwithstanding
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the power of the EVIS Authority to create rules for such purpose, the rules and
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regulations of the Department of Environment and Natural Resources and other
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government agencies involved in the above functions shall be implemented by the EVIS
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Authority;
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j) To create, operate or contract to operate such functional units or offices of
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the EVIS Authority as it may deem necessary;


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k) To adopt, alter, and use a corporate seal; contract, lease, buy, acquire, own
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or otherwise dispose of personal or real property of whatever nature; sue and be sued;
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and otherwise carry out its functions and duties as provided for in this Act;
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I) To issue certificates of origin for products manufactured or processed in the
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EVIS Ecozone in accordance with prevailing rules of origin and the pertinent regulations
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of the PEZA, the DTI, and the Department of Finance (DOF);
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m) To establish one-stop shops for the issuance of all necessary permits,
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clearances, licenses, and other similar certifications to conduct such activities intended
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to improve the ease of doing business within the EVIS Ecozone, in coordination with
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government agencies having jurisdiction over activities therein: Provided, That all
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government agencies are directed to provide and extend utmost and full cooperation
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to the EVIS Authority in the establishment of such one-stop shops;
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n) To ensure that the area covered by the EVIS Ecozone is secure at all times:
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Provided, That the Armed Forces of the Philippines (AFP) or the Philippine National
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Police (PNP) shall not interfere in the internal affairs of the EVIS Authority except to
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provide the necessary security and defense, or law enforcement assistance, as the case
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may be: Provided, finally. That expenses of the AFP or the PNP in the EVIS Ecozone
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shall be borne by the national government;
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o) To exercise such powers as may be essential, necessary or incidental to the
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powers granted to it by this Act, as well as those that shall enable it to carry out,
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implement and accomplish the purposes, objectives, and policies set forth in this Act,
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and
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p) To issue rules and regulations consistent with the provisions of this Act as
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may be necessary to accomplish and implement the purposes, objectives, and policies
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provided herein.
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SEC. 10. Board of Directors of the EVIS Authority. - The powers of the EVIS
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Authority shall be vested in and exercised by a Board of Directors, hereinafter referred
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to as the Board, which shall be composed of the following:
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a) A Chairperson, who shall at the same time be the administrator of the EVIS
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Authority;
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b) A Vice-Chairperson who shall be elected from among the members of the


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Board of Directors;
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c) Members consisting of:
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1) The Governor of the Province of Leyte or a duly-authorized
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representative from the Provincial Government of Leyte;
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2) One (1) of the mayors of the cities covered by the ecozone;
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3) One (1) representative from the investors' group; and
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4) One (1) representative from among the workers in the EVIS Ecozone.
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The Governor or the Governor's duly authorized representative and the mayors
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of the municipalities within the ecozone shall serve as ex officio members of the Board,
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whose terms in the Board shall correspond to their terms as elected officials.
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The Chairperson-Administrator and the members of the Board, except for the
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representatives of the investors and workers groups and the ex officio members, shall
13 
be appointed by the President of the Philippines to serve for a term of six (6) years,
14 
unless sooner separated from service due to death, voluntary resignation or removal
15 
for cause. In case of death, resignation or removal for cause, their replacements shall
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serve only the unexpired portion of the respective terms. No person shall be appointed
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as a member of the Board unless the person is a Filipino citizen, of good moral
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character, of proven probity and integrity, and a degree holder in any of the following
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fields: economics, business, public administration, law, management or their
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equivalent, and with at least ten (10) years relevant working experience, preferably in
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the field of management or public administration.
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The members of the Board, except the ex officio members, shall each receive
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per diem allowance at rates to be determined by the Department of Budget and
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Management in accordance with existing rules and regulations: Provided, however,
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That the total per c/Zem allowance collected each month shall not exceed the equivalent
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of four (4) meetings unless and until the President of the Philippines has fixed a higher
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rate for the per diem allowance for the members of the Board, such allowance shall


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not be more than Ten thousand pesos (Phpl0;000.00) for every Board meeting.
2 
SEC. 11. Organization and Personnel. — The Board of Directors of the EVIS
3 
Authority shall provide for its organization and staff. The Board shall appoint and fix
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the remuneration and other emoluments of its officers and employees in accordance
5 
with existing laws on compensation and position classification. The Board shall have
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exclusive and final authority to promote, transfer, assign, reassign, or remove officers
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of the EVIS Authority, any provision of existing law to the contrary notwithstanding.
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The Chairperson- Administrator shall execute the decisions of the Board.
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The officers and employees of the EVIS Authority, including all members of the
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Board, shall not engage directly or indirectly in partisan activities nor take part in any
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election, except to vote.
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No officer or employee of the EVIS Authority, shall be removed or suspended
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except for cause, as provided by civil service rules and regulations.
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SEC. 12. Powers and Duties of the Chairperson-Administrator. - The
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Chairperson-Administrator shall have the following powers and duties:
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a) To direct and manage the affairs of the EVIS Authority in accordance with
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the policies of the Board;
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b) To establish the internal organization of the EVIS Authority under such
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conditions that the Board may prescribe;
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c) To submit an annual budget and necessary supplemental budget to the Board
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for its approval;
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d) To submit within thirty (30) days after the close of each fiscal year an annual
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report to the Board and such other reports as may be required;
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e) To submit to the Board for its approval, policies, systems, procedures, rules,
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and regulations that are essential to the operation of the EVIS Authority Ecozone;
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f) To recommend to the Board the remuneration and other emoluments of its
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officers and employees in accordance with existing laws on compensation and position


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classification;
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g) To create a mechanism in coordination with relevant agencies for the
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promotion of industrial peace, the protection of the environment, and the advancement
4 
of the quality of life in the EVIS Authority Ecozone; and
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h) To perform such other duties as may be assigned by the Board or which are
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necessary or incidental to the office.
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SEC. 13. Legal Counsel. -The EVIS Authority shall have its own internal legal
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counsel who shall be under the supervision of the Government Corporate Counsel.
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When the exigencies of business and operations demand it, the EVIS Authority may
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engage the services of an outside counsel either on a case to case or on a fixed retainer
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basis.
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CHAPTER III
!3 
INCENTIVES TO ECOZONE ENTERPRISES AND INVESTORS
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SEC. 14. Investors Visa. - Any foreign national who invests an amount of Two
15 
hundred thousand US dollars (US$200,000.00) in a registered enterprise, either in cash
16 
or equipment, shall be entitled to an investor's visa: Provided, That the foreign national
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has the following qualifications:
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a) Must be at least eighteen 
(18) years of age;
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b) Must not have been convicted by final judgment of a crime involving moral
20 
turpitude;
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c) Must not be afflicted with any dangerous or contagious disease;
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d) Must not have been confined in an institution for any mental disorder or
23 
disability; and
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e) Must be financially capable as borne out by credible and verifiable evidence.
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With an investor's visa, an alien shall be entitled to reside in the Philippines while
26 
the investment subsists. The alien investor shall submit an annual report, in the form


1 
duly prescribed for the purpose, to prove that the investment in the country subsists.
2 
Should said alien investor withdraw the investments from the Philippines, then the
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investor's visa issued to said alien shall automatically expire and be withdrawn.
4 
The authority to issue visas and work permits shall remain with the Bureau of
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Immigration (BI) and the Department of Labor and Employment (DOLE), respectively:
6 
Provided, That the BI and the DOLE shall implement measures to expedite the
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processing of such visas and permits for workers in the EVIS Ecozone and coordinate
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closely with the EVIS Authority to facilitate the conduct of business operations.
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SEC. 15. Fiscal Incentives. - Registered enterprises operating within the
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Eastern Visayas Special Economic Zone may be entitled to the existing fiscal incentives
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provided and granted under Title XIII (Tax Incentives) of the National Internal Revenue
12 
Code of 1997, as amended by Republic Act No. 11534, otherwise known as the
13 
"Corporate Recovery and Tax Incentives for Enterprises Act".
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SEC. 16. Administration, Implementation and Monitoring of Incentives. - In the
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interest of enhancing transparency in the management and accounting of tax incentives
16 
in the EVIS Ecozone, and ensuring the proper administration, management,
17 
enforcement, implementation and monitoring of tax incentives, the EVIS Authority shall
18 
comply with the provisions of Republic Act No. 11534, otherwise known as the
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"Corporate Recovery and Tax Incentives for Enterprises Act".
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The BOC shall set up and establish a customs-controlled area outside the
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premises of the EVIS Ecozone to facilitate payment of duties and taxes on goods
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entering the Philippine customs territory: Provided, That notwithstanding the
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limitations on this Act, the EVIS Authority and BOC may coordinate and jointly
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implement measures on border protection.
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SEC. 17. Banking Rules and Regulations. - Banks and financial institutions to
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be established in the EVIS Ecozone shall be under the supervision of the BSP and
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subject to existing banking laws, rules and regulations.
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SEC. 18. Remittances. - In the case of foreign investments, a duly registered
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entity or enterprise within the EVIS Ecozone shall have the right to remit earnings to
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its investors in the currency in which the investment was originally made and at the
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exchange rate prevailing at the time of remittance, subject to the provisions of Republic
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Act No. 7653, otherwise known as the "New Central Bank Act" as amended.
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CHAPTER IV
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NATIONAL GOVERNMENT AND OTHER ENTITIES
8 
SEC. 19. Supervision and Control. - For purposes of policy direction and
9 
coordination, the EVIS Authority shall be under the direct control and supervision of
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the Office of the President of the Philippines.
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SEC. 20. Relationship with Local Government Units. - Except as herein
12 
provided, the LGUs comprising the EVIS Ecozone shall retain their basic autonomy and
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identity. The Ormoc City, Province of Leyte, shall operate and function in accordance
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with the framework of the Constitution, the Local Government Code of 1991, as
15 
amended, and this Act.
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In case of any conflict among the EVIS Authority, the LGUs and the national
17 
government on matters affecting the EVIS Ecozone, other than national defense and
18 
security matters, the decision of the EVIS Authority shall prevail.
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SEC. 21. Audit - The Commission on Audit shall appoint a full-time auditor for
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the OCCIMINSEZA and may assign such number of personnel as may be necessary to
21 
assist the auditor in the performance of the auditor's functions.
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CHAPTER V
23 
MISCELLANEOUS
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SEC. 22. Interpretation and Construction. - The powers, authorities and
25 
functions that are vested in the EVIS Authority are intended to establish national self-
26 
sufficiency and self-reliance in the advancement of and protection of the national
27 
integrity, enhancement of national security, decentralization of governmental functions
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1 
and authority, and promotion of an efficient and effective working relationship among
2 
the EVIS Authority, the national government and the LGUs. Any interpretation of this
3 
Act shall consider such intentions. In the event of conflict of interpretation and provided
4 
the intentions cannot be harmonized, the provisions of this Act shall be construed in
5 
favor of an interpretation that shall protect national security.
6 
SEC. 23. Applicability Clause. - Insofar as they are consistent with the
7 
provisions of this Act, the provisions of Sections 30 to 41 of Republic Act No. 7916,
8 
otherwise known as "The Special Economic Zone Act of 1995", as amended, shall
9 
likewise apply to the EVIS Ecozone.
10 
SEC. 24. Implementing Rules and Regulations. - Within sixty (60) days from
11 
effectivity of this Act, the DTI shall, in coordination with the DOF and the National
12 
Economic and Development Authority, formulate rules and regulations for the effective
13 
implementation of the provisions of this Act.
14 
SEC. 25. Separability Clause. - If any provision of this Act shall be held
15 
unconstitutional or invalid, the other provisions not otherwise affected shall remain in
16 
full force and effect force and effect.
17 
SEC. 26. Repealing Clause. - All laws, executive orders or issuances or any part
18 
thereof, which are inconsistent herewith, are hereby repealed or amended accordingly.
19 
SEC. 27. Effectivity. - This Act shall take effect fifteen (15) days after its
20 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
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