Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

“HB: No. _ 57h

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE

There is a need to expedite the rehabilitation and development of the Mindanao Region
(the “Region") given the lack of development in certain areas on the Region as well as the
debilitating effects of the recent conflicts.

Unfortunately, the public sector cannot provide enough funds for the total development
and rehabilitation of Mindanao. The recent hostilities have also scared away numerous private
investors fearful of the peace and order in the Region. There is, therefore, a crucial need to
attract private investors to invest in Mindanao.

The approach to developing Mindanao should therefore be two-pronged—by providing
the Executive enough powers to expedite the development and rehabilitation of the Region, and
by attracting private investors through a series of incentives over and above the existing
incentives provided to other areas of the country and under existing laws.

The proposed Mindanao .Development Incentives Act will provide the following
incentives and powers:

1 Fiscal Incentives
1.1 Duty-free importation of raw materials and capital equipment, as well as
exemption from value added tax;
2 5% tax in lieu of all taxes except real property tax;
3 Tax credit of 200% of value of labor training expenses, and 300% in the case of
labor training expenses for Muslims and other ethnic minorities;
1.4 Tax credit of 200% of research and development expense;
1.5 Allowance to carry over net operating loss for ten (1 0) years;
1.6 Reimbursement of cost for feasibility studies in areas deemed in critical need of
investments;
1.7 Interest assistance by line departments for all loans availed of by registered
investing enterprise.

2. Non-Fiscal Incentives

2.1 Nationality requirements shall not be required except those provided under the
Constitution;

2.2 Labor disputes must be referred to a labor center for amicable settlement:

2.3 Infrastructure development and construction may be on build-operate-transfer
basis, or other contractual arrangement, with the registered investor allowed to
charge tolls and other fees;

2.4 Government financial assistance through Land Bank and DBP:

2.5 Incentives to expatriates such as multiple entry visas, final tax of 15% of gross
income, tax and duty free importation of personal and household effects, travel
tax exemptions;



26

Exemption of private agricultural lands used by registered enterprises from CARL
coverage under certain conditions;

2.7 Basic rights and guarantees on repatriation of investments, remittance of
‘earings and freedom from expropriation.
3. Powers of the President
3.1 Authority to set in place such policies which will ensure that Mindanao becomes
competitive and investor-friendly;
3.2 Authority to realign funds from dormant or non-moving infrastructure projects to
projects of immediate necessity;
3.3 Authority to revoke or terminate existing contracts whenever it appears that the
contractor is unreasonably delayed;
3.4 Authority to resort to simplified public bidding in contracts for infrastructure
development, construction and repair,
3.5 Authority to declare economic zones with appropriate incentives;
3.6 Authority to declare Specific areas in the Region as underdeveloped and thus
entitled to additional incentives and support;
3.7 Authority to declare tax holidays over and above those presently enjoyed by
existing economic zones;
3.8 Authority to contract with private firms and entities for the latter to construct, build

‘or rehabilitate public rural infrastructure and to be reimbursed in such manner
and under such terms and conditions as the President may determine.

The foregoing incentives and powers are sufficient to encourage investment in Mindanao
and ensure growth in the region.

For the above-mentioned reasons, approval of this bill is earnestly urged.

7A

oe eo
JUAN EDGARDO “SONNY” M. ANGARA
Representative
Lone District, Province of Aurora


FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES _)
First Regular Session )

H.B.No,_O?+

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

AN ACT
PROVIDING FOR INVESTMENT INCENTIVES TO ACCELERATE DEVELOPMENT
IN MINDANAO, CREATING THE MINDANAO INCENTIVES DEVELOPMENT
AUTHORITY FOR THIS PURPOSE, 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 "Mindanao Development
Incentives Act.”

SEC. 2. Declaration of Policy. The State recognizes the need to promote and
accelerate the growth and development of the Mindanao Region, hereinafter referred to as the
Region, in order to make it, at the least, at par with the other regions of the country and promote
the overall growth of the Region in particular and national economy in general. The State takes
note of the centuries-old conflict between the government and Muslim Mindanao and of the
need to find a lasting solution rooted in the social, economic and cultural realities. The State
further recognizes the vast potential of the Region, including its immense natural resources,
which remain largely untapped, and the need for public and private investment in infrastructure
and spending to ensure the development of the Region.

Pursuant thereto, and in order to address effectively the conflict betwéen government
and Muslim Mindanao, it is the declared policy of government to actively encourage, promote,
induce and accelerate a sound and balanced agricultural, industrial, economic and social
development in the Region in order to alleviate poverty therein, provide jobs to the people,
especially those in the rural areas, increase their productivity and their individual and family
income, and thereby improve the level and quality of their living condition and hence secure
peace and stability in the Region through the provision of economic and fiscal incentives and
through measures that shall effectively attract legitimate and productive local and foreign
investments. The government shall furthermore undertake efforts to promote the development
of the Region into the hub of investment, trade and commerce in the East Asian region through
private capital and investment which shall serve as the engines of growth and development of

the Region, creating jobs, providing increased income and productivity, and bringing new
technology.


SEC. 3. Creation of the Mindanao Incentives Development Authority. There is
hereby created a body corporate to be known as the Mindanao Incentives Development
Authority, hereinafter referred to as MIDA. The MIDA shall have a Director-General with the
rank of a department undersecretary who shall be appointed by the President. The director-
general shall be at least forty (40) years of age, of proven probity and integrity, and have a
strong knowledge or background in agriculture, investments , economics, business, public
administration, law or their equivalent.

The Director General shall be assisted by three (3) deputy directors general each for
policy and planning, administration and operations, who shall be appointed by the MIDA Board,
upon the recommendation of the Director General. The deputy directors shall be at least thirty-
five (35) years old, with proven probity and integrity and with a degree in agriculture, economics,
business, public administration, law, management or their equivalent.

The Board shall be composed of the Secretary of Agriculture who shall serve as ex
officio chairman, the Director General who shall serve as Vice Chairman, with four (4) members
as follows: the Secretaries of the Department of Environment and Natural Resources,
Department of Finance, Department of Trade and Industry and one (1) representative from the
investors/business sector in Mindanao.

Members of the Board shall receive a per diem of not more than Five Thousand Pesos
(P5,000) for every board meeting: Provided, however, that the per diem collected per month
does not exceed the equivalent of four (4) meetings. Provided, further, that the amount of per
diem for every board meeting may be increased by the President but such amount shall not be
increased within two (2) years after its last increase. [BCDA law)

SEC. 4, Functions and Powers of the Board. The Board shall have the following
functions and powers:

(a) Set the general policies on the establishment of the enterprises that will register with
MIDA; .

(b) Review proposals for the establishment of MIDA registered enterprises, and to
facilitate and assist in the organization of said entities;

(©) Provide assistance to registered enterprises to ensure that sufficient agro-industrial
activities within the Region are undertaken, including agro-industrial processing,
high-end technology production of high value crops, high-technology aquaculture
farming, direct agriculture and biotech industries, in coordination with the
Department of Agriculture. The MIDA, in coordination with the Department of
Agriculture and the Department of Trade and Industry, shall periodically furnish a list
of agro-industrial activities which may be undertaken within the Region

(d) Approve the annual budget of MIDA and its development plans;

(e) Issue rules and regulations to implement the provisions of this Act insofar as its
powers and functions are concerned;

()_ Exercise its powers and functions as provided for in this Act; and

(g) Render annual reports to the President and the Congress.


SEC. 5. General Powers and Functions of the MIDA. The MIDA shall have the

following powers and functions:

(a)

(b)
(©)

(a)

(e)

10)

(9)

(h)

To administer and supervise the incentive schemes of the Region according to the
principles set forth in this Act;

To register the enterprises in the Region in an efficient and expeditious manner;

To coordinate with regional development councils and other development bodies in
the identification and preparation of development programs and projects in the
Region;

To recommend to the President and Congress such other incentives, concessions
or preference necessary to fully implement the letter and spirit of this Act;

To adopt, alter and use a corporate seal; make contracts, lease, own or otherwise
dispose of personal or real property; sue and be sued; and otherwise carry out its
duties and functions as provided for in this Act;

To consult on a regular basis with the local government units, private sector and
civil society on plans and policies to be formulated and promulgated;

To monitor and evaluate the development and requirements of entities within the
Region and recommend to the local government units or other appropriate
authorities the location, incentives, basic services, utilities and infrastructure
required or to be made available for said entities; and

To accept any local or foreign investment, business or enterprise, subject only to
such rules and regulations to be promulgated by the MIDA in conformity with the

policies of the MIDA without prejudice to the nationalization requirements provided
for in the Constitution.

Within thirty (30) days from its constitution, the MIDA shall promulgate a priority
investment plan over the Region in order to accomplish the intent of this Act.

SEC. 6. Powers and Functions of the Director General. The Director General shall
provide overall supervision over the operations of the MIDA. He shall recommend to the Board
the structure and the staffing pattern and personnel complement of the MIDA and establish
regional offices, when necessary, subject to the approval of the MIDA Board.

In addition, he shall have the following specific powers and responsibilities:

(a) To safeguard all the lands, buildings, records, monies, credits and other properties

and rights of the, MIDA;

(b) To ensure that all revenues of the MIDA are collected and applied in accordance with

its budget;

(c) To ensure that the employees of the MIDA are properly discharging their respective

duties;

(d) To give such information and recommend such measures to the Board, as he shall

deem advantageous to the Region;

(e) To submit to the Board, the ongoing and proposed projects, work and financial

program, annual budget or receipts, and expenditures of MIDA;

3


(f) To represent the MIDA in all its business matters and sign on its behalf after
approval of the Board, all its contracts, agreements and obligations made in
accordance with this Act;

(g) To perform such other duties and exercise such powers as may be prescribed by the
Board, and to implement the policies, rules and regulations set by the MIDA.

SEC. 7. Autonomy of Local Government Units. Except as herein provided, the local
government units comprising the Region shall retain their basic autonomy and identity, The
cities shall be governed by their respective charters and the municipalities shall operate and
function in accordance with the Local Government Code.

SEC. 8. Qualifications of a Registered Enterprise. To be entitled to registration under
this Act, an applicant must satisfy to the Board that:

(@) He is a citizen of the Philippines, if an individual, or in case of a corporation,
partnership or association, it is organized under Philippine laws and that at least
sixty percent (60%) of the capital stock outstanding and entitled to vote is owned
and held. by Philippine nationals as defined in Republic Act No. 7042. If it does not
possess the required degree of ownership as mentioned above, It will engage in an
activity that is not within the acti

ies reserved by the Constitution to Philippine
citizens or corporation owned and controlled by Philippine citizens;

(b) It shall make an initial investment in the Region in an amount not less than the
equivalent of Two Hundred Fifty Thousand Dollars (US$250,000), United States
currency, unless a higher amount of investment is required under existing laws;

(c) The applicant will engage in an activity which will necessitate the employment of at
least fifty (50) local employees;

(d) The applicant is capable of operating on a sound and efficient basis and of
contributing to the development of the Region in particular and of the national
economy in general; and

(e) If the applicant is engaged in undertakings or activities outside the Region, it has
installed or undertakes to install an accounting system adequate to identify the
investments, revenues, costs, and profits or losses of the project to be undertaken
in the Region from the aggregate investment, revenues, costs, and profits or losses
of the whole enterprise or to establish a separate corporation for the project to be
undertaken in the Region if the Board so requires.

SEC. 9. Basic Rights and Guarantee. All investors and registered enterprises are
entitled to the basic rights and guarantees provided in the Constitution. Among the other rights
recognized by the Government of the Philippines are the following:

(a) Repatriation of Investments. In the case of foreign investments, the right to
repatriate the entire proceeds of the liquidation of the investment in the currency in
which the investment was originally made and at the exchange rate prevailing at
the time of repatriation.


(b) Remittance of Eamings. In the case of foreign investments, the right to remit
earings from the investment in the currency in which the investment was originally
made and at the exchange rate prevailing at the time of remittance.

(©) Foreign Loans and Contracts. The right to remit at the exchange rate prevailing at
the time of remittance such sums as may be necessary to meet the payments of
interest and principal on foreign loans and foreign obligations arising from
technological assistance contracts.

(d) Freedom from Expropriation. Except as provided in Section 9 (e) below, there shall
be no expropriation by the government of the property represented by investments
or of the property of the registered enterprise.

(e) Requisition of Investment. There shall be no requisition of the property represented
by the investment or of the property of the registered enterprise, except in the
event of war.

SEC. 10. Policies. The Region shall be subject to the following policies:

(a) Within the framework and subject to the mandate and limitations of the Constitution
and the pertinent provisions of the Local Government Code, the Region shall be
developed into a self-sustaining agricultural, agro-industrial, industrial, commercial,
financial and investment center to generate employment opportunities in and
around the Region and to attract and promote productive investments;

(b) Merchandise, raw materials, supplies, equipment, machinery, spare parts and
wares of every description, agricultural and fisheries inputs brought into the Region
by a registered enterprise to be sold within the Region, stored, broken up,
repacked, assembled, installed, sorted, cleaned, graded or otherwise processed,
manipulated, manufactured, mixed with foreign or domestic merchandise whether
directly or indirectly related in such activity and brought out of the Philippines, shall
not be subject to customs and internal revenue laws and regulations of the
Philippines, including value added tax, nor to local tax ordinances;

(c) The provision of existing laws, rules and regulations to the contrary
notwithstanding, no taxes, national and local except real property tax, shall be
imposed upon registered enterprises located within the Region. In lieu of paying
taxes, three percent (3%) of the gross income earned by all registered enterprises
within the Region shall be remitted to the National Government, one percent (1%)
each to the local government unit having jurisdiction over the particular registered
enterprise. In addition, there is hereby established a development fund of one
percent (1%) of the gross income earned by all registered enterprises within the
Region to be utilized for the development of the Region.

In case of conflict between national and local laws with respect to tax
exemption privileges in the Region, the same shall be resolved in favor of the
latter;

(d) Registered enterprises establishing their production, processing or manufacturing
plants in an area within the Region which the Board designates as necessary for

5


the proper dispersal of the industry or in an area which the Board funds deficient in
infrastructure, public utilities, and other facilities, such as irrigation, drainage and
other similar waterworks infrastructure may apply in payment of taxes due from it to
the government an amount equivalent to 100% of the necessary and major
infrastructure works it may have undertaken with the prior approval of the Board
under such terms and conditions as the Board may determine and in consultation
with other government agencies concerned, provided that:
() the title to all such infrastructure works shall, upon completion, be
transferred to the Philippine Government; and
(li) should the registered enterprise undertake necessary and major
maintenance work on such infrastructure works with the prior approval of
the Board, a similar incentive shall be given to it in an amount equivalent to
the cost of such necessary maintenance.

Provided, that in cases where the Board may certify that infrastructure or the
rehabilitation thereof is urgently needed in specific areas, the registered enterprise undertaking
the construction of infrastructure or rehabilitation thereof may apply in payment of taxes due
from it to the government an amount equivalent to 200% of the necessary and major
infrastructure works it may have undertaken with the prior approval of the Board.

Provided, further, that a registered enterprise shall be encouraged to undertake
infrastructure and development projects, including but not limited to, power plants, highways,
ports, airports, canals, dams, hydropower projects, water supply, irrigation, telecommunications,
railroads and railways, transport systems, land reclamation projects, markets, slaughterhouses,
warehouses, solid waste management, information technology networks and database
infrastructure, education and development projects as may be authorized by the appropriate
agency pursuant to this Act. Such projects shall be undertaken through contractual
arrangements as defined hereunder and under Republic Act No. 6957, as amended, and such
other variations as may be approved by the President of the Philippines,

For the construction stage of these infrastructure projects, the project proponents may
obtain financing from foreign and/or domestic sources and/or engage the services of a foreign
and/or Filipino contractor: Provided, That in case an infrastructure or a development facility's
operation requires a public utility franchise, the facility operator must be Filipino or if a
corporation, it must be duly registered with the Securities and Exchange Commission and
owned up to at least sixty percent (60%) by Filipinos: Provided, further, That in the case of
foreign contractors, Filipino labor shall be employed or hired in the different phases of the
construction where Filipino skills are available: Provided, finally, That subjects which would have
difficulty in sourcing funds may be financed partly from direct government appropriations and/or
from Official Development Assistance (ODA) of foreign governments or institutions not
‘exceeding fifty percent (50%) of the project cost, and the balance to be provided by the project
proponent.

All government infrastructure agencies, including government-owned and -controlled
corporations and local government units are hereby authorized to enter into contracts with any

6


duly prequalified project proponent for the financing, construction, operation and maintenance of
any financially viable infrastructure or development facility through any of the projects
authorized in this Act and other laws. Said agencies, when entering into such contracts, are
enjoined to solicit the expertise of individuals, groups, or corporations in the private sector who
have extensive experience in undertaking infrastructure or development projects.

(€) For the first ten (10) years from registration, a registered enterprise shall be
allowed to deduct from its gross income earned two hundred percent (200%) of the
value of the labor training expenses incurred for upgrading the productivity and
efficiency of unskilled labor and of apprentices, provided that:

1. the training program is duly approved by the Board;

2. the deduction shall not exceed twenty percent (20%) of direct labor wage;
and

3. the apprentices shall be paid the minimum wage.

Provided, that in case at least ten percent (10%) of the trainees or apprentices shall be
Muslim or belong to other ethnic minorities, a registered enterprise shall be allowed to deduct
from its gross income earned three hundred percent (300%) of the value of the labor training
expenses incurred for upgrading the productivity and efficiency of the unskilled labor and
apprentices belonging to the Muslim or other ethnic minorities.

(f) For the first ten (10) years from registration, a registered enterprise shall be
allowed to deduct from its gross income earned two hundred percent (200%) of the
value of the research and development expenses incurred relating to the business
undertaken by the registered enterprise, provided that:

1. the research and development program is duly approved by the Board; and
2. the deduction shall not exceed ten percent (10%) of gross income of the
registered enterprise.

(g) For the first ten (10) years from registration, a registered enterprise shall be entitled
to reimbursement for expenses incurred in undertaking feasibility studies of
projects deemed by the Board to be critical to development objectives, Such
reimbursement shall be given by the Department with authority over the specific
project.

(h) For the first ten (10) years from registration, a registered enterprise may carry over
its net operating loss as a deduction from its gross income earned for the next
three (3) consecutive years immediately following the year of such loss.

(i) Private agricultural lands that have not been distributed and upon which no
Certificates of Land Ownership Award have been issued shall be exempt from the
coverage of Republic Act No. 6857, known as the Comprehensive Agrarian Reform
Law ("CARL"); Provided, that such lands shall be directly and exclusively used by
registered enterprises within the Region.

In cases where the lands have been subjected to the CARL, by voluntary offer to sell, or
commercial farms deferment or notices of compulsory acquisition, a simple and absolute
majority of the actual regular workers or tenants must consent to the exemption within one (1)
year from the effectivity of this Act. Should the workers or tenants not agree to this exemption,

CF


the lands shall be distributed collectively to the worker-beneficiaries or tenants who shall form a
cooperative or association to manage the same.

The provisions of Republic Act No. 6657 to the contrary notwithstanding, land subjected
to CARL may be mortgaged, leased, sold or otherwise disposed of in favor of a registered
enterprise.

In cases where the lands have not been subjected to the CARL, the consent of the farm

workers shall no longer be necessary. However, the provision of Section 32-A of Republic Act
No, 7881 on incentives shall apply.

SEC. 11. Labor Relations. The Region shall uphold industrial peace, harmony and
productivity to establish a sound and peaceful investment climate and simultaneously promotes
and enhances the lives and dignity of all workers.

Unless otherwise provided by law, all Philippine law and social security laws shall apply
within the Region pursuant to the above-stated policy, all laws on strikes and lockouts will be
strictly enforced,

MIDA shall establish a Labor Center which center shall be responsible for studying and
amicably settling professional and labor relations and disputes, interpretation of employment
contracts and monitoring work, hygiene and safety standards within the Region.

Subject to existing labor laws, as may be specified in employment contracts or collective
bargaining agreements, all labor disputes must be brought before the Labor Center which will
attempt to amicably settle the case. In case the Labor Center cannot settle the dispute
amicably, it will certify the dispute for mediation or arbitration before the proper office of the
Department of Labor and Employment or the Secretary of Labor and Employment for
compulsory arbitration or assumption of jurisdiction.

SEC. 12. Government Assistance. Upon the recommendation of the MIDA Board and
subject to the qualifications under its relevant charters, the Development Bank of the
Philippines, Land Bank of the Philippines and similar government financial institutions are
mandated to render financial assistance to registered enterprises in the Region which may be
secured by an undertaking from the Government, through the Department of Finance, to issue a
guarantee in favor of the aforementioned registered enterprise whenever warranted by the
circumstances.

Depending on the nature of the registered enterprise, line departments shall be required
to extend interest assistance to the extent determined by the appropriate Secretary for loans
availed of by the registered enterprise pursuant to this Act.

SEC. 13. Other Incentives. The expatriates employed by the registered enterprises

shall be entitled to the following incentives:

(a) Upon submission of all necessary documents, the Bureau of Immigration shall
issue the multiple entry special visa to foreign personnel of registered enterprises,
their respective spouses and unmarried children under 21 years of age, if
accompanying them or if following to join them after their admission into the

8


(b)

(o)

(a)

Philippines as non-immigrant within seventy-two (72) hours upon submission of all
required documents. This is without prejudice to the authority of the Department of
Foreign Affairs to issue visas.

The visa shall be valid for a period of five (6) years to enter the
Philippines. The admission and stay shall be co-terminus with the validity of the
multiple entry visa. The stay, however, is extendible to five (5) years upon
submission to the Bureau of Immigration of a sworn certification by a responsible
officer of the registered enterprise that is licensed to operate or registration
remains valid and subsisting and that the registered enterprise has withheld tax
due on compensation and the same has been paid to the Bureau of Internal
Revenue.

Non-immigrants who have been admitted under the multiple entry special
visa, as well as their respective spouses and dependents, shall be exempt from:
the payment of all fees due under immigration and alien registration laws; securing
alien certificates of registration; and obtaining emigration clearance certificates,
except reasonable administrative cots. They are also exempt from all types of
clearances required by any government department or agency, except that upon
final departure from the Philippines the employer of the said non-immigrants shall
80 advise in writing the Bureau of Immigration at least five (5) working days prior to
the immigrant's departure and the finally departing non-immigrant employee shall
be required to submit to the said office a tax clearance from the Bureau of Internal
Revenue.

Alien executives occupying managerial and technical positions employed by the
registered enterprise shall be subject for each taxable year upon their gross
income received as salaries, wages, annuities, compensations, remuneration and
‘emoluments to a final tax equal to fifteen percent (15%) of such gross income.

The same tax treatment is applicable to Filipinos employed ang occupying the
same positions as those aliens employed by registered enterprises, regardless of
whether or not there is an alien executive occupying the same position.

Qualified Filipino employees shall have the option to be taxed at either
15% of gross income or at the regular tax rate on their taxable income in
accordance with the National Internal Revenue Code of 1997.

An alien executive of the registered enterprise shall enjoy tax and duty free
importation of personal and household effects as provided for under Section
+#105(h) of the Tariff and Customs Code as amended, and Section 109 (|) of the
National Internal Revenue Code, as amended; Provided, That the personal and
household effects shall arrive in the Philippines within ninety (90) days before or
after conversion of the alien executive's admission category to multiple entry visa
issued under this Act.

Foreign personnel of registered enterprises and the dependents of such foreign
personnel if joining them during the period of their assignment in the Philippines


shall be exempted from the payment of travel tax imposed under Section 1 of
Presidential Decree No. 1183, as amended.

SEC, 14. Simplified Public Bidding. As a general rule, contracts for infrastructure
development, construction, repair, rehabilitation, improvement or maintenance should be
conducted through public bidding pursuant to Republic Act No. 6957, as amended, However, in
the exigency of public service and national interest as may be determined by the President, and
in order to achieve the objectives of this Act, simplified bidding through sealed canvass of at
least three (3) pre-qualified investors may be resorted to, The process of selecting the
prospective lessees and private investors shall be transparent, where procedures and selection
process adapted are made public through newspaper advertisements and similar other means,

SEC. 15. Authority to Declare Economic Zones. The President is authorized to
declare certain areas within the Region as economic, free trade, agro-industrial, agricultural,
agri-tourism, or industrial zones qualified and eligible for all incentives provided for under this
Act and other existing laws. The President is further authorized to declare areas within the
Region as underdeveloped and therefore entitled to incentives and support over and above
those provided in this Act.

SEC. 16. Applicability to Existing Enterprises in the Region. The basic rights
incentives granted under this Act may be availed of existing business enterprises within the
Region provided that these enterprises possess the minimum qualification as set forth in

Section 8 and they register with the MIDA within six (6) months from the effectivity of the rules
implementing this Act.

SEC, 17. Coordination with Various Government Organizations. The Board shall
consult and coordinate with existing government organizations including the Autonomous
Region of Muslim Mindanao, Mindanao Economic Development Council, Southern Mindanao
Development Authority, Special Zone of Peace and Development in formulating policies and
programs.

SEC. 18. Implementing Rules and Regulations. To implement the provisions of this
Act, the Department of Agriculture, the Department of Trade and Industry and the Department of
Finance 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.

SEC. 19. Separability Clause. If any part or section of this Act is declared
unconstitutional for any reason or whatsoever, such parts not so declared shall remain in full
force and effect.

10


SEC. 20. Repealing Clause. All laws, decrees, orders, rules and regulations or
issuances or parts thereof inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.

SEC. 21. Effectivity Clause. This Act shall take effect after fifteen (15) days following its
full publication in at least two (2) newspapers of general circulation in the Philippines.

Approved,

oT