Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Twentieth Congress
First Regular Session

HOUSE BILL No, 3386

Introduced by Representative ZALDY “JECOY” S. VILLA

AN ACT
ESTAB! ING THE SIQUIJOR SPECIAL
MUNICIPALITY OF MARIA, PROVINCE OF SIQUIJOR, CREATING FOR THE
PURPOSE THE SIQUIJOR SPECIAL ECONOMIC ZONE AUTHORITY,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

NOMIC ZONE IN THE

EXPLANATORY NOTE

Siquijor is a province rich in natural beauty, culture, and potential. Known for its pristine
beaches, lush mountains, and vibrant local traditions, it has long been a hidden gem in the
Central Visayas. But despite its promise, Siquijor continues to face challenges in economic
development, job creation, and infrastructure support.

This bill proposes the creation of the Siquijor Special Economic Zone (SSEZ) a dedicated
area designed to attract investments, generate employment, and promote sustainable local
industries. By establishing this zone, we aim to turn Siquijor’s untapped potential into real,
inclusive growth for its people.

The SSEZ will offer incentives to businesses and investors, encourage innovation, and
support industries such as eco-tourism, agriculture, marine resources, and green
manufacturing. At the same time, it will be guided by principles of environmental
stewardship and community empowerment, ensuring that progress does not come at the cost
of Siquijor’s unique identity and natural beauty.

This is more than just an economic initiative, it is an investment in the future of
Siquijodnons. It seeks to create meaningful jobs, improve public services, and raise the
quality of life while preserving the island’s charm and heritage.


By passing this bill, we take a bold step toward making Siquijor not just a beautiful
destination, but a thriving, sustainable, and self-reliant community

In view of the foregoing, the immediate passage of this measure is earnestly sought.

ZALI YY” S. VILLA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Twentieth Congress
First Regular Session

HOUSE BILL NO. 3366

Introduced by Representative ZALDY “JECOY” S, VILLA

AN ACT
ESTABLISHING THE SIQUIJOR SPECIAL ECONOMIC ZONE IN THE
MUNICIPALITY OF MARIA, PROVINCE OF SIQUIJOR, CREATING FOR THE
PURPOSE THE SIQUIJOR SPECIAL ECONOMIC ZONE AUTHORITY,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in the congress
assembled:

SECTION 1. Short Title. - This Act shall be known as the “Siquijor Special Economic
Zone”.

SECTION 2. Declaration of Policy. - It is hereby declared the State policy to actively
encourage, promote, induce and accelerate a sound and balance industrial, economic
and social development of the country in order to provide jobs to the people especially
those in rural areas, increase productivity and individual and family income, and
thereby improved the level and quality of living condition through the establishment,
among others, of special economic zone in suitable and strategic locations in the
country and through measures that will attract legitimate and productive foreign
investments.

SECTION 3. Creation of Siquyor Special Economic Zone. - In pursuit of the foregoing
declared policy, there is hereby established a special economic zone in the Province of
Siquijor, which shall be referred hereinafter as the “SSEZ.”

The SEZ may cover the land territories in the Province of Siquijor comprising an area of
approximately 110 hectares, The ‘SSEZ main zone” shall be located in the Municipality of
Siquijor, Province of Siquijor. Other expansion areas may be established within the
Province of Siquijor which may be declared as part of the SSEZ in compliance with Sec
4(G) of this Act, including all municipal waters within the SSEZ main zone and of the
expansion areas located at the coastline of the Province of Siquijor (the ‘other SSEZ
zones’),



The metes and bounds of the SSEZ main zone, and the other SSEZ zones, which will be
fenced and include the establishment of an administrative office for ease of customs
administration and border control, shall be determined based on the technical description
and coordinates verified and approved by the Land Management Bureau, the National
Mapping and Resource Information Authority, and other government agencies as may be
provided by pertinent law.

Prospective developers and locators may choose to register with the SSEZ, PEZA or such
other investment promotion agency: Providecd, That in no case shall a registered enterprise
enjoy incentives from two (2) or more investment promotion agencies: Provided, further,
That in no case shall a SSEZ-registered enterprise be located within an ecozone
administered and managed by another investment promotion agency.

SECTION 4. Governing Principles. — The Siquijor Special Economic Zone shall
be managed and operated by the Siquijor Special Economic Zone Authority,
herein referred to as “SSEZA,." created under Section 13 of this Act, under the
following principles:

A. Within the framework and limitations of the Constitution and
applicable provisions of the Local Government Code, the SSEZ
shall be developed into and operated as the decentralized, self-
reliant and self-sustaining industrial, commercial/trading,
research and development, engineering, medical, education,
information and communications technology including emerging
and future technologies such as artificial technology, blockchain,
business process outsourcing, cloud computing, cybersecurity,
distributed ledger technology, financial technology solutions,
internet of things, and virtual reality, retirement, and healthcare
services, agro-industrial, tourism, banking financial, multinational
trading and investment center with provision for suitable
residential areas;

B. Notwithstanding the autonomy provided in Section 4(A) of this Act,
the SSEZA shall continue to be provided by the National
Government and or local government with transportation,
telecommunications, high-speed internet cables and other facilities
needed to attract legitimate and productive investments, generate
linkage with industries and employment opportunities for the people
of the Province of Siquijor and its neighboring provinces and region.
The SSEZA shall also have priority and preferential access to such
National Government and or local government transportation and
telecommunications infrastructure, high-speed internet cables and
other facilities, and access to the SSEZ shall be incorporated in the
planning, construction, and operation of such infrastructure or
expansions: Provided, That the autonomy and self-reliance of the
SSEZA shall not be hindrance to assist and or partnerships with
other units and instrumentalities of the government: Provided,


further, That no assistance or partnership shall be construed as a
waiver of the autonomy of the SSEZA;

. The SSEZA may established mutually beneficial economic
relations with other entities or enterprises within the country or,
subject to the administrative guidance of the Department of
Foreign Affairs (DFA), the Philippine Economic Zone Authority
(PEZA) and or the Department of Trade and Industry (DTI), with
foreign entities or enterprises;

. Foreign citizens and companies owned by non-Filipinos in whatever
proportion may set up enterprises in the SSEZA, either by themselves
or in joint venture with Filipinos in any sector of industry, international
trade and commerce within the territorial jurisdiction of the SSEZA as
provided in Section 3 of this Act: Provided, That the SSEZA may
inquire a minimum investment in freely convertible currencies from
any enterprise seeking registration as a SSEZ enterprise;

. The SSEZ shall be managed and operated as a separate custom
territory thereby ensuring the free flow or movement of goods and
capital within, into and out of its territory; Provided, That in accordance
with Section 301 and 817 of the Republic Act No. 10863, the Bureau
of Customs (BOC) shall continue to exercise border protection and
customs control authority over the customs territory adjacent to the
SSEZ: Provided, further, That the SSEZA shall allow patrol and other
law enforcement arrangement by the BOC and other government
agencies within the municipal waters covered by the other SSEZA
zones, subject to coordination with the SSEZA to enhance its
protection and control capacity and ensure compliance with customs,
fisheries and other laws and regulations;

. The SSEZA shall provide incentives such as tax and duty-free
importation of raw materials, capital and equipment to registered
enterprises located therein. However, exportation or removal of goods
from the territory of the SSEZ to other parts of the Philippine territory
shall be subject to customs duties and taxes under the Tariff and
Customs Codes of the Philippines, as amended, the National Internal
Revenue Code (NIRC) of 1997, as amended and Corporate
Recovery and Tax Incentives for Enterprises Law;

. The areas comprising the SSEZ may be expanded or reduced when
necessary. For this purpose, the SSEZA, with the concurrence of the
appropriate and affected local government units (LGUs) and the
agreement of appropriate national government agencies, government
owned and controlled corporations and instrumentalities, and the
approval of the SSEZA Board in accordance and in compliance with
existing laws and local ordinances, shall have the power to acquire,


procure and or expand either by purchase, negotiation, condemnation
proceedings, or any other arrangement, any private or alienable and
disposable public lands and or their respective water territories within
the territorial jurisdiction of the Province of Siquijor, if any, for the
following purposes: (1) consolidation of lands for SSEZ development
and establishment of new industrial estates and economic zones
under the SSEZ; (2) acquisition of right-of-way to the SSEZ; and (3)
the protection and safeguard of watershed areas and the
maintenance and improvement of its water yield and natural assets
valuable to the prosperity of the SSEZ, the LGU, and the National
Government, the effective management of solid waste in compliance
with existing national laws and local ordinances, and its impact to
adjacent areas within the local government concerned: Provided,
That any expansion shall be aligned with the comprehensive land use
plan of the affected LGUs: Provided, further, That the SSEZA and the
relevant LGUs and national government agencies shall provide for the
immediate and responsive mechanisms, best management practices
and suitable environmental protection programs for land and coastal
management to address any abuse and or exploitation of the natural
environment within the territorial jurisdiction of SSEZ as provided in
Section 3 of this Act;

H. Goods manufactured by SSEZ enterprises shall be made available
for immediate retail sale in the domestic market, subject to the
payment of corresponding taxes on raw-materials and other
regulations that may be formulated by the SSEZA, together with
PEZA, the Banko Sentral ng Pilipinas (BSP), the Department of
Finance (DOF), the BOC and DTI in accordance with NIRC of 1997,
as amended, and the Tariff and Customs Code of the Philippines, as.
amended: Provided, That the value of the goods at the time of
importation shall be the basis in determining the appropriate duties
and taxes: Provided, further, That the cooperation with the SSEZA,
the foregoing agencies shall provide and implement measures to
support the improvement of ease and cost of doing business within
the SSEZ and the enhancement of the investment promotion capacity
of the SSEZA. In order to protect domestic industries, a negative list
of industries shall be drawn up and regularly updated by the SSEZA.
Enterprises engaged in industries included in such negative list shall
not be allowed to sell their products locally, notwithstanding the
registration of such enterprises in the SSEZ; and

|. The defense of SSEZ and the security of its perimeter fence shall be
the responsibility of the National Government in coordination with the
SSEZA and the LGUs. The SSEZA shall provide its own internal
security and firefighting forces.

SECTION 5. Fiscal Incentives. - The registered enterprises operating within the


SSEZ may be entitled to the existing pertinent fiscal incentives as provided for
under Republic Act No. 7916, as amended by Republic Act No. 8748, also known
as “Special Economic Zone Act of 1995", those provided under Executive order
No. 226, as amended, otherwise known as the “Omnibus Investment Code of
1987.", and Republic Act No. 11534, otherwise known as the “Corporate
Recovery and Tax Incentives for Enterprises” (CREATE) Law.

SECTION 6. Imposition of a Tax Rate of Five Percent (5%) on Gross Income Earned.
= No taxes, local and national, shall be imposed on registered business
establishments operating within the SSEZ. In lieu thereof, and subject to Section
10 of this Act, said business establishments shall pay a five percent (5%) final tax
on their gross income earned in the following percentages

a) One per centum (1%) to the National Government;
b) One per centum (1%) to the Province of Siquijor;
c) One per centum (1%) to the host municipality; and
d) Two per centum (2%) to the SSEZA;

SECTION 7. Incentives to Investors. _ Any foreign national who invest an amount of
One Hundred Thousand US dollars (US$100,000.00), either in cash and or equipment,
in a registered enterprise shall be entitled to an investor’s visa: Provided, That he has
the following qualifications:

(A) He is at least eighteen (18) years of age;
(B) He has not been convicted of a crime involving moral turpitude;

(C) He is not afflicted with any loathsome, dangerous or contagious
disease; and

(D) He has not been institutionalized for any mental disorder or
disability.

As holder of investor’s visa, an alien shall be entitled to reside in the Philippines while
his investment subsists. For this purpose, he should submit an annual report, in the form
duly prescribed for the purpose, to prove that he has maintained his investment in the
country. Should said alien withdraw his investments from the Philippines, then the
investor’s visa issued to him shall automatically expire.

SECTION 8. Administration, Implementation and Monitoring of Incentives. - For the
proper administration, implementation and monitoring of tax incentives provided under this
law, the following are herein mandated:

(a) The SSEZA shall be responsible for the administration and


implementation of the incentives granted to its respective
registered enterprises. Among others, it shall adopt and
implement systems and procedures affecting trade and
customs policies. The BOC shall set up and established a
customs controlled area outside the gate of the SSEZ to
facilitate payment of taxes on goods entering the Philippine
customs territory; and

(b)The SSEZA shall likewise submit to DOF its annual tax
expenditures based on the tax incentives granted to its
registered enterprises. The DOF, for its part, shall create a
single database of all incentives provided by the governing
authority. The DOF shall monitor the incentives granted and
submit all annual reports to the President;

SECTION 9. Extension of Period of Availment. - The availment period of the
incentives provided herein may be extended by SSEZA, in the event that the
registered enterprise has suffered operational force majeure that has impaired
its viability or any event equivalent thereto.

SECTION 10. Duration of Incentives. . Enterprises registered with SSEZA may enjoy
the income tax holiday (ITH) or the net operating loss carryover (NOLCO) granted by the
Authority prior to the availment of the five percent (5%) Gross Income Earned (GIE).
Fiscal incentives under this Act shall be terminated after cumulative period of twenty (20)
years ftom date of registration or start of commercial operation, whichever is applicable,
except that it could be extended with regard to the industries deemed indispensable to
national development. The industries exempted from this provision shall be determined by
the SSEZA.

SECTION 11. Online Gaming Centers within SSEZ. - The SSEZ will be open for hosting
online gaming centers and establishments, with the end in view of facilitating the rapid
economic development of the province and its neighboring areas. In coordination with
concemed LGUs, the Department of Information and Communications Technology
(DICT) and other relevant government agencies, the establishment of high-speed internet
cables, the adequate number of cell sites and other facilities and infrastructures necessary
to support the satisfactory performance of this online gaming centers will be introduced
with the SSEZ.

Prospective online gaming centers must first register with and be granted accreditation by
the SSEZA before they are given the license to operate within the SSEZ. Qualified and
SSEZ-registered online gaming centers will enjoy the same incentives and benefits as
provided above qualified and SSEZ.A-registered enterprises.

SECTION 12. Technology Hub for Start-Ups within SSEZ, To support job creation,
technological buildup and startup development, the SSEZ will be home to enterprise
technological start-ups which shall be catered and nurtured inside the SSEZ technological
hub. In coordination with PEZA, DTI and other concerned agencies, the SSEZ will be a



distinct ecozone that is at the forefront of accepting and housing start-up technological
businesses. These businesses will be nurtured until they are well-developed into productive
and commercial enterprises

Prospective technological start-ups must first register and be granted accreditation by the
SSEZA before they are given the license to operate within the SSEZ. Qualified and
SSEZA-registered technological start-ups will enjoy the same incentives and benefits as
provided above to qualified and SSEZA-registered enterprises.

Along with these benefits and incentives, these technological start-ups will gain access to
the One-Stop Shop envisioned under Section 36 of Republic Act No. 7916. This access to
the One-Stop Shop will promote ease of doing business inside the SSEZ.

Pursuant to this mandate, a One-Stop Shop for Business Structure and Registration (“One-
Stop Shop”) will be established within the SEZ to assist and fast-track the registration
and framework finalization of prospective technological start-ups and other enterprises,
Thus, the One-Stop Shop will also serve all prospective online gaming centers which seek
to operate inside the SSEZ. To ensure effective formation of this One-Stop Shop, all
appropriate government agencies that are involved in registering, licensing and issuing
permits to investors shall assign their representatives to the SSEZ to attend to investors”
requirements. The SSEZA will supervise and assure that the One-Stop Shop consistently
and effectively fulfills its mandate.

SECTION 13. Creation of the Siquijor Special Economic Zone Authority. ~ There is
hereby created a body corporate to be known as the Siquijor Special Economic Zone
Authority, hereafter referred to as the “SSEZA,” which shall mange and operate the SEZ,
in accordance with the provisions of this Act.

SECTION 14. Principal Office of the SSEZA. ~ The SSEZA shall maintain its principal
office in the Municipality of Maria, Province of Siquijor, but it may establish liaison offices
within the Philippines as may be necessary for the proper conduct of its business.

SECTION 15S. Powers and Functions of the SSEZA. - The SSEZA shall have the
following functions:

(a) To adopt, use a corporate seal, to contract, lease, buy, sell,
acquire, own and dispose properties of whatever nature;

(b) To sue and be sued in order to carry out its duties, responsibilities,
privileges, powers and functions as granted and provided for in this
Act and to exercise the power of eminent domain for public use and
public purpose;

(c) To operate, administer, manage, develop, in accordance with
Executive Order No. 525, as amended, the SSEZ according to the
principles and provisions set forth in this Act and to coordinate with
the LGUs for the development plans, activities and operation of the


(9)

(e)

(f)

(g)

(h)

10)

SSEZA;

To recommend to the President the issuance of a proclamation to
fix and delimit the site of the SSEZ;

To register, regulate and supervise the enterprises in the SSEZ in
an efficient and decentralized manner, subject to existing laws;

To coordinate with the LGUs and exercise general supervision over
the development plans, activities and operations of the SSEZ;

To authorize or undertake, on its own or through others, and to
regulate the establishment, construction, operation and
maintenance of public ut S, services, and infrastructure in the
SSEZ such as shipping, barging, stevedoring, cargo, handling,
hauling, warehouse, storage of cargo, port services or concessions,
piers, wharves, bulkheads, bulk terminals, conveyors, water supply
and storage, sewerage, drainage, airport operations in coordination
with the Civil Aviation Authority of the Philippines (CAAP) and such
other services or concessions and infrastructures necessary or
incident to the accomplishment of the objectives of this Act.
Provided, however, That the private investors in the SSEZ shall be
given priority in the awarding of contracts, franchises, licenses, or
permits for the establishment, operation and maintenance of
utilities, services and infrastructures in the SSEZ;

To license, set fees, regulate, and undertake the establishment,
operation and maintenance of utilities, other services,
educational and medical institutions and infrastructure in the
SSEZ such as, but not limited to, heat, light and power, water
supply, telecommunications, mobile, internet, and other data
facilities, transport, toll roads and bridges, port services, etc.,
and to fix just, reasonable and competitive rates, fares, charges
and prices thereof;

To construct, acquire, own, lease, operate and maintain on its own
or through contracts, franchises, licenses, bulk purchase from the
private sector and build-operate-transfer scheme, or under a joint
venture with the private sector, any or all of the public utilities and
infrastructure required or needed for the operation and
development of the SSEZ, including transportation, access and
connection to, and out of the SSEZ, in coordination with appropriate
national and local government authorities and in conformity with
applicable laws thereon. For this purpose, the SSEZA shall
exercise the power of eminent domain or private lands granted in
paragraph (b) of this Section insofar as it may be reasonably
necessary, without prejudice to the execution of agreements with


a)

(k)

0)

public agencies, and subject to the limitations prescribed therein
and the observance of the prerequisites of taking of possession and
the determination and payment of just compensation in accordance
with Republic Act No. 10752, otherwise known as “The Right-of-
Way Act;”

To operate on its own, either directly or through license to other
tourism-related activities, including games, amusements,
recreational and sports facilities, subject to the approval and
supervision of the Philippine Amusement and Gaming Corporation
(PAGCOR);

To raise or borrow, within the limitation provided by law, and subject
to the approval or opinion of the Monetary Board of the BSP, in
accordance with law, adequate and necessary funds from local and
foreign sources, to finance its projects and programs under this Act,
and for that purpose, to issue bonds, promissory notes, and other
forms of securities, and to secure the same by a guarantee, pledge,
mortgage, deed of trust, or an assignment of all or part of its
property or assets;

To exclusively enforce and administer the provisions of the National
Building Code of the Philippines and the Fire Code of the
Philippines, as amended, within the territorial jurisdiction of the
SSEZ: Provided, That the SSEZA shall be fully responsible and
accountable for the enforcement and administration of the National
Building Code of the Philippines and the Fire Code of the
Philippines, as amended, within the SSEZ.

The SSEZA Administrator, or his official representative, shall
function as the SSEZA building official, who shall issue all building
permits and other related permits subject to the collection by the
SSEZA of the corresponding permit fees: Provided, That the
SSEZA building official shall also be authorized to require owners
of houses, buildings, or other structures constructed without the
necessary SSEZA permit/s, or those that are condemned and or
abated by the SSEZA in accordance with the conditions set forth in
the National Building Code or Civil Code, as the case may be,
whether constructed on public or private lands, to remove or
demolish such houses, buildings, or structures within fifteen (15)
days from receipt of notice. Upon failure of such owner to remove
or demolish such house, building, or structure within such period,
the SSEZA may summarily cause its removal or demolition at the
expense of the owner and the occupants;

The SSEZA may evict any person who refuses to vacate such
premises in accordance with Republic Act No. 7279, otherwise


(m)

(n)

(0)

(p)

(a)

)

known as “Urban Development and Housing Act of 1992,” and other
existing laws. A temporary or permanent relocation site shal! be
made available for qualified individuals or families;

To provide security for the SSEZ in coordination with the national
and local governments. For this purpose, the SSEZA may establish
and maintain its security forces and firefighting capability or hire
others to provide the same. In the event that an assistance of the
military force is necessary, it shall not interfere in the internal affairs
of the SSEZ except to provide the necessary security and defense,
and their expenses shall be borne by the National Government. To
ensure the maintenance of law and order within the boundaries of
SSEZ, including the conduct of police investigations, arrests,
search and seizure for violation of penal laws inside the SSEZ, the
Philippine National Police (PNP) shalll establish a police substation,
if necessary, under the supervision of the PNP Provincial Director,
to be manned by such number of personnel as will allow them to
effectively and efficiently pursue its mandate.

The SSEZA shall also be authorized to install control gates at
strategic points of the national roads within the SSEZ, through
which access into and departure from the SSEZ shall be fully
controlled by the SSEZA;

To protect, preserve, maintain and develop the forests, beaches,
coral and coral reefs, and maintain ecological balance within the
SSEZ. For this purpose, the rules and regulations of the
Department of Environment and Natural Resources (DENR) and
other government agencies involve in the above functions shall be
implemented by the SSEZA: Provided, That the issuance,
enforcement and monitoring of environmental compliance
certificates (ECCs), tree cutting permits, foreshore leases and all
other related permits and clearances issued by the DENR and other
government agencies shall be under the exclusive contro! and
jurisdiction of the SSEZA;

To create, operate and/or contract to operate such functional units
or offices of the SSEZA as it may deem necessary;

To issue certificates of origin for products manufactured or
processed in the SSEZ;

To recommend the issuance of working visas renewable every
three (3) years to foreign executives and foreign technicians with
highly specialized skills which no Filipino possesses, subject to the
issuance of the certification and alien employment permit by the
Department of Labor and Employment (DOLE);


(s)

0]

(u)

(vy)

(w)

Subject to Republic Act. No. 7653, otherwise known as the “New
Central Bank Act,” other issuances of the BSP, Republic Act No.
8799, otherwise known as the “Securities Regulations Code,”
existing applicable laws, and such other laws as may be required
that are consistent with the objectives of the SSEZA, to act as an
offshore financial center that engage in, or allow, any or all
international financial and business services, including banking,
offshore fund management, collective investment schemes, and
cryptocurrency mining, and provide the necessary and pertinent
fiscal incentives as provided for under Republic Act No. 7916, as
amended by Republic Act No. 8748, also known as “Special
Economic Zone Act of 1995," and/or those provided under
Executive Order No. 226, as amended, otherwise known as “The
Omnibus Investments Code of 1987.” Banks and financial
institutions engaged in quasi-banking functions to be established in
the SSEZ shall be under the supervision of the BSP, and shall be
subject to existing banking laws, rules and regulations. Other
financial institutions not engaged in quasi-banking functions, and
those engaged in collective investment schemes and
cryptocurrency mining withing the SSEZ shall be under the
supervision of the Securities and Exchange Commission;

To issue special regulations for the benefit of particular industries
designed to improve ease of doing business, decrease cost of
doing business, and lower bureaucratic burdens of investing and
doing business within the SSEZ: Provided, That such special
regulations shall not be contrary to existing laws;

To endorse Special Resident Retiree’s Visas (SRRVs) for retirees
that intend to reside in the SSEZ, in collaboration with the Philippine
Retirement Authority (PRA): Provided, That the PRA and the
SSEZA shall issue joint regulations on the processing of SRRVs in
accordance with existing laws;

To establish, operate and maintain utilities, facilities, infrastructure,
services, businesses, activities, and concessions in the SSEZ,
pertaining to shipping and maritime business and activities
including stevedoring and port terminal services or concessions:
Provided, That the Maritime Industry Authority (MARINA) shall
continue to exercise its power to regulate and supervise the
shipbuilding and ship repair of any merchant marine vessel
operated or to be operated in the domestic trade and the domestic
shipping industry within the SSEZ:

To establish and supervise one-stop shops for the issuance of all
necessary permits, clearances, licenses, and other similar


certifications to conduct activities, to improve ease of doing
business within the SSEZ, in coordination with government
agencies having jurisdiction over activities in the SSEZ not
otherwise solely reserved to the SSEZ in this Act: Provided, That
all government agencies are directed to provide and extend utmost
and full cooperation to the SSEZA in the establishment of such one-
stop shops;

(x) _ To issue rules and regulations consistent with the provisions of this
Act as may be necessary to implement and accomplish the
purposes, objectives and policies provided herein;

(y) To exercise such powers as may be essential, necessary or
incidental to the powers granted to it hereunder as well as those
that shall enable it to carry out, implement and accomplish the
purposes, objectives and policies of this Act; and

(2) To be vested with other powers enjoyed or exercised by other
freeport zone authorities.

SECTION 16. Board of Directors of the SSEZA. ~ The powers of the SSEZA shall be
vested in and exercised by a Board of Directors, hereinafter referred to as the Board,
which shall be composed of the following:

(a) The Chairman and Vice Chairman, both of whom shall be elected
from among the members of the Board;

(b) The Administrator, who shall in no case be at the same time, the
Chairman and Vice Chairman;

(c) Members consisting of:

(1) To (2) representatives from the National Government;

(2) One (1) representative from the Province of Siquijor;

(3) One (1) representative from the district covering the site of
the SSEZ;

(4) One (1) representative from the Municipality of Maria,
Province of Siquijor;

(5) One (1) representative for the SSEZA-registered domestic
investors;

(6) One (1) representative from the SSEZA-registered foreign
investors; and

(7) One (1) representative from the workers employed in the
SSEZ: Provided, That all members of the Board shall be
Filipino citizens.


The Administrator and the members of the Board, shall be appointed by the President of
the Philippines to serve for a term of six (6) years, unless sooner separate from service due
to death, voluntary resignation and removal for cause. In case of death resignation or
removal for cause, the replacement shall serve on the unused portion of the term.

No person shall be appointed by the President of the Philippines as a member of the Board
unless he is a Filipino citizen, of good moral character, of proven probity and integrity, and
a degree holder in any of the following fields: economics, business, public administration,
law, management or their equivalent, and with at least ten (10) years relevant working
experience preferably from the field of management or public administration.

The members of the Board shall each receive per diem at rates to be determine by the
Department of Budget and Management (DBM) in accordance with existing rules and
regulations: Provided, however, That the total per diem collected each month shall not
exceed the equivalent per diem for four (4) meetings.

SECTION 17. Powers and Duties of the Administrator. — The powers of the SSEZA
shall be vested in and exercised by a Board of Directors, hereinafter referred to as the
Board, which shall be composed of the following:

(a) To direct and manage the affairs of the SSEZA in accordance
with the policies of the Board;

(b)To establish the internal organization of the SSEZA under such
conditions that the Board may prescribe;

(c) To submit an annual budget and necessary supplementary budget
to the Board for its Board approval;

(d) To submit within thirty (30) days after the close of each fiscal year an
annual report to the Board and such other reports as may be
required;

(e) To submit to the Board for its approval policies, systems, procedures,
rules and regulations that are essential to the operation of the
SSEZA;

(f) To create a mechanism in coordination with relevant agencies for the
promotion of industrial peace, the protection of the environment, and
the advancement of the quality of life in the SSEZ; and

(g)To perform such other duties as may be assigned to him by the
Board or which are necessary of incidental to his office.

SECTION 18. Organization and Personal. ~ The SSEZA Board of Directors shall
provide for an organizational structure and appoint employees, subject to the Civil
Service Law. Upon the recommendation of the Administrator, the Board shall appoint
and fix the remuneration and other emoluments of its officers and employees in


accordance with existing laws on compensation and position classification. Provided,
‘That the salary and other compensation of the Administration shall be comparable with
the President and the Chief Executive Officer of Clark Development Corporation:
Provided, further, That the Board shall exercise administrative supervision over their
employees

The officers and employees of the SSEZA, including all members of the Board, shall
not engage directly or indirectly in partisan activities nor take part in any election,
except to vote

No officer or employee of the SSEZA, subject to civil service laws and regulations,
shall be removed or suspended except for cause, as provided by law

SECTION 19. Labor Center, Health and Housing.

(a)A labor center shall be established within the SSEZA. This center
shall be responsible for studying and amicable settling
professional and labor relations and disputes, interpretation of
employment contracts, and monitoring work, hygiene and safety
standards within the SSEZ. The labor center shall comprise a
labor office, an industrial health and safety office, and an
inspections and disputes office;

Except as otherwise provided in this Act, labor and management
relations in the SSEZ shall be governed by applicable rules and
regulations under the Labor Code of the Philippines, as amended
Employees and personnel in the registered enterprises shall receive
salaries and benefits, and shall enjoy working conditions provided under
the Labor Code and other relevant laws and issuances of the Philippine
Government and the DOLE. The SSEZA shall allow the visitorial power
of the Secretary of the DOLE or his duly authorized representative, and
or may assign its personnel to join the DOLE Regional Office VII in the
conduct of labor inspection

(b)The Department of Health shall establish, fund, operate and
maintain a tertiary hospital in the SSEZ;

(c) The National Housing Authority, pursuant to its mandate, shall
undertake vertical and horizontal development for the marginalized
informal settlers and low income earners within the SSEZ, and shall
source the necessary funds thereof through National Government
‘subsidy.

SECTION 20. Banking Rules and Regulations. — Existing banking laws, rules and
regulations of the BSP shall apply to banks and financial institution to established in
the SSEZ.

SECTION 21. Remittances. ~ In the case of foreign investments, a registered enterprise
in the SSEZ shall have the right to remit earnings from the investment in favor of the


investor and or intended beneficiary, subject to the provisions of Republic Act No.
7653, otherwise known as the “New Central Bank Act,” the manual of regulations on
foreign exchange transactions, as well as other relevant rules and regulations.

SECTION 22. Applicability Clause. — The provisions Sections 30-41of Republic Act
No. 7616, otherwise known as “The Special Economic Zone Act of 1995,” as
amended, shall likewise apply to the S:

SECTION 23. Capitalization. — The capital stock to be contributed by the government,
shall be:

(a) Two Billion Five Hundred Million pesos (Php2,500,000,000.00), with
option to increase capitalization upon the discretion of the SSEZA;

(b) All lands embraced and covered by the SSEZ, as well as permanent
improvements and fixtures upon proper inventory not otherwise
alienated, conveyed, or transferred to another government agency;
and

(c) All other assets which the President may transfer to the SSEZA as.
part of the equity contribution of the government.

SECTION 24. Supervision and Control. — For purposes of policy direction and
coordination, the SSEZA shall be under the direct control and supervision of the Office
of the President of the Philippines.

SECTION 25. Regional Development Council. - The SSEZA shall determine the
development goals for the SSEZ within the framework of the national development
plans, policies and goals. The Administrator shall, upon approval by the Board, submit
the SSEZ plans, programs and projects to the Regional Development Council for
inclusion and inputs to the overall regional development plan.

SECTION 26. Relationship with Local Government Units. - Except as herein provide,
the Municipality of Maria in the Province of Siquijor shall operate and function in
accordance with the Local Government Code of 1991. In case of any conflict between
the SSEZA and the local government units (LGUs) and National Government (NG) on
matters affecting the SSEZ, other than defense and security matters, decision of the
SSEZA shall prevail

SECTION 27. Legal Counsel. ~ The SSEZA shall have its own internal legal counsel
under the supervision of the Government Corporate Counsel. When the agencies of its
business and operations demand, the SSEZA may engage the services of an outside
counsel either on a case-to-case or on fixed retainer basis.

SECTION 28. Interpretation Construction. — The powers, authorities and functions
that are vested in the SSEZA are intended to establish decentralization of governmental
functions and authority and promote an efficient and effective working relationship
between the SSEZA, the National Government and the LGU.


SECTION 29. Audit. - The Commission on Audit shall appoint a full-time auditor in
the SSEZA or may assign such number of personnel as may be necessary in the
performance of their functions.

SECTION 30. Implementing Rules and Regulations. ~ The DTI, the DOF, the LGU
and the Department of the Interior and Local Government shall formulate the
implementing rules and regulations of this Act within thirty (30) days after its
approval. Such rules and regulations shall take effect fifteen (15) days after their
publication in a newspaper of general circulation in the Philippines.

SECTION 31. Separability Clause. ~ If any provision of this Act shall be held
unconstitutional or invalid, the other provisions not affected shall remain in full force
and effect.

SECTION 32. Repealing Clause. — All laws, presidential decrees, executive orders,
rules and regulations and other issuances or any part thereof which are inconsistent
herewith are hereby repealed, amended or modified accordingly

SECTION 33. Effectivity Clause. - This Act shall take effect fifteen (15) days

following its complete publication in the Official Gazette or in two (2)
newspaper of general circulation.

Approved