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FOURTEENTH CONGRESS OF THE REPUBLIC ) 
8 
FER 26 i3 4 ':j 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
S.B.No. 2093 
Introduced by: Senator Juan Ponce Enrile 
EXPLANATORY NOTE 
Republic Act No 7898 was enacted in 1995 with the grand purpose of modernizing our 
Armed Forces. Sadly, the envisioned modernization never really gained ground due to several 
concerns such as lack of funding, circuitous procurement system, devaluation of the Philippine 
Peso vis-a-vis the American Dollar, the 1997 Asian economic slump, among other factors. 
In order to address some of the concerns which were experienced in the implementation 
of the Armed Forces of the Philippines (AFP) Modernization Act, the proposed Bill advances the 
following amendments thereto, to wit: 1) fixing the annual appropriation for the AFP 
Modernization Act in an amount not less than three-tenths of one per centum (0.3%) of the last 
officially-reported gross national product: 2) as part of the Self-Reliant Defense Posture (SRDP) 
Program, establishing a continuous research and development program designed to utilize new 
technology and upgrade existing AFP inventory of equipment and weapon systems; 3) 
expanding the sources of funding for the AFP Modernization Act Trust Fund to include the 
proceeds from the lease and/or joint venture agreements and such other dispositions pertaining to 
former military camps; 4) adopting a simplified Defense Acquisition System which shall be 
separate and distinct from the procurement system applicable to other departments of 
government; 5) creating the office of the Undersecretary in the Department of National Defense 
for Resource Management and Capability Development which will be tasked with contract 
negotiation, acquisition and procurement of the equipment and non-equipment requirements of 
the AFP; 6 )  exempting the AFP Modernization projects, undertaking, activities and programs 
from all fees, taxes, duties and assessments imposed and/or required by government and non- 
government agencies; and, 7) making the modernization of the AFP a continuing effort and not 
merely for fifteen (1 5) year period, as originally prescribed by law. 
While the above amendments will not totally eliminate all obstacles to the modernization 
of the AFP, it will no doubt be a good start. For these reasons, the immediate passage of the bill 
is most earnestly sought before this August Chamber. 


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FOURTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
Introduced by: Senator Juan Pome Enrile 
AN ACT 
AMENDING REPUBLIC ACT NO. 7898 OTHERWISE KNOWN AS THE “AFP 
MODERNIZATION ACT” 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled 
SEC. 1. Section 3 of Republic Act No 7898 is hereby amended to read as follows: 
“Sec. 3. Objectives of the AFP Modernization Act - The AFP modernization 
[program] ACT shall be implemented in accordance with the following objectives: 
(a) To develop its capability to uphold the sovereignty and territorial integrity of the 
Republic and to secure the national territory from all forms of intrusion and 
encroachment; 
(b) TO DEVELOP ITS CAPABILITY TO DETECT, PREVENT, NEUTRALIZE AND 
REPEL INTERNAL THREATS AGAINST THE FILIPINO PEOPLE, THE 
GOVERNMENT AND ITS INSTITUTIONS; 
[(b)] (c) To develop its capability to assist civilian agencies in the preservation of the 
national patrimony, including the country’s living and nonliving marine, submarine, 
mineral, forest and other natural resowces located within its territory and its 
Exclusive Economic Zone (EEZ); 


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[(c) ](d) To enhance its capability to fulfill its mandate to protect the Filipino people not 
only from armed threats but from the ill effects of life-threatening and destructive 
consequences of natural and man-made disasters and calamities, including typhoons, 
earthquakes, volcanic eruptions, major accidents in far- flung or inaccessible terrain 
or at sea and all forms of ecological damage; 
[(d)] (e) To improve its capability to assist other agencies in the enforcement of domestic 
and foreign policies as well as international covenants against TERRORISM, piracy, 
white slavery, smuggling, drug trafficking, hijacking of aircraft and sea craft and the 
transport of toxic and other ecologically-harmful substances taking place in or 
through Philippine territory; 
[(e)] (f) To enhance its capability to assist the Philippine National Police in law 
enforcement and in internal security operations; 
[(Q] 
(g) To enhance its capability to fulfill the country’s international commitments; 
and 
[(g)] (h) To develop its capability to support national development. 
SEC. 2. Section 4 of the same Act is hereby amended to read as follows: 
“Sec. 4 [Components of the AFP Modernization Programj PROGRAMS UNDER 
THE AFP MODERNIZATION ACT - [The modernization progrum shall consist of the 
following components] THE AFP MODERNIZATION ACT SHALL CONSIST OF THE 
FOLLOWING PROGRAMS: 
(a) Force restructuring and organizational development - The AFP modernization 
[program] ACT shall develop the AFP into a compact, efficient, responsive and 
modern force with the capability to engage in conventional and/or unconventional 
warfare, disaster relief and rescue operations, and contribute to economic 
development and other nontraditional military roles. 
This component of the modernization [program] ACT shall likewise provide for the 
identification, organization, training and development of reserve force and affiliated 
reserve units in the AFP especially in the Navy and Air Force [.I 


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(b) Capability, materi(a)El [,] and technology development - The AFP modernization 
[program] ACT entails the development and employment of certain capabilities that 
can address the assessed threats[:] Provided, That the acquisition of air force, navy 
and army equipment and materiel of such types and quantities shall be made in 
accordance with the need to develop AFP capabilities pursuant to its modernization 
objectives[:] Provided, further, That the acquisition of new equipment and weapons 
systems shall be synchronized with the phase-out of uneconomical and obsolete 
major equipment and weapons systems in the AFP inventory. Provided, even further, 
That, WITH THE EXCEPTION OF LOCALLY-MANUFACTURED MAJOR 
EQUIPMENT AND WEAPONS SYSTEM WHICH ARE OF PROVEN QUALITY 
AND RELIABILITY, no major equipment and weapons system shall be purchased if 
the same are not being used by the armed forces in the country of origin or used by 
the armed forces of at least two countries[:] Provided, furthermore, That only offers 
from suppliers who are themselves the manufacturers shall be entertained[:] Provided, 
finally, [t]That no supply contract shall be entered into unless such contract provides 
for, in clear and unambiguous terms, [an] after -sales services and the availability of 
spare parts. 
(c) Baseslsupport system development - The AFP modernization [program] Act shall 
entail the development of permanent bases for land, air [,] and naval forces to 
conform with national defense strategies and the government’s socioeconomic thrust; 
provide a systematic relocation of AFP units to enhance their capability in the 
performance of their mission; provide adequate support systems and housing facilities 
to AFP units and personnel; provide training grounds for maneuver and territorial 
forces as well as the reserve components, and develop bases and camps along 
standard criteria for space allocations, zoning and efficient correlation of land areas 
and structure. 
(d) Human resource and development - The human resource development component of 
the AFP modernization [program] ACT shall have the following objectives: 
(1) To strengthen the patriotic spirit and nationalist consciousness of the military 
[,] and respect for people’s rights in the performance of [their] ITS duty; 
(2) To develop and transform the AFP into a [primarily external security-oriented 
force;] 
MULTI-MISSION FORCE 
CAPABLE OF 
EFFECTIVELY 
UNDERTAKING INTERNAL AND EXTERNAL SECURITY-ORIENTED 
OPERATIONS; 


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(3) To develop a compact, effective, efficient and responsive citizen-based force; 
(4) To implement programs that will enable the AFP to perform its role in 
environmentiresource 
protection 
and 
multi-national 
peace[-]keeping 
operations; 
( 5 )  To convert the AFP into a service/people-oriented and professionally united 
force; and 
(6) To improve the quality of life of soldier and their families and reorient values 
of all personnel in the AFP TOWARDS THE ENHANCEMENT OF THE 
SERVICE. 
(e) Doctrines development - The transition of the AFP [from an internal security-oriented 
force to an external security-oriented force] TO A MULTI-MISSION CAPABLE 
FORCE requires the review, evaluation and validation of its present set of doctrines for 
the purpose of formalizing such doctrines. Towards this end, the Department of National 
Defense and the [g]General [hIHeadquarters, AFP shall be responsible for the generation, 
evaluation, consolidation and formalization of doctrines; the conduct of periodic review 
and validation of doctrines through field application, testing and exercises; and the 
dissemination of approved doctrines at all levels of command. 
The Secretary of National Defense shall formulate guidelines to 
implement this section in accordance with the objectives of the modernization 
[program] ACT enumerated in the preceding section.” 
SEC. 3. Section 5 of the same Act is hereby amended to read as follows: 
“Sec. 5 Development of AFP Capabilities - The AFP modernization Lprogram] 
ACT shall be geared towards the development of the following defense capabilities: 
(a) Development of naval defense capability - Given the archipelago nature of 
the Philippines, the Philippine Navy (PN) shall develop its capabilities for 
[naval defense, amphibious warfare, sealift and transport, and surface warfare; 
naval gunfire support, detection and maritime surveillance, search and rescue, 
disaster response as well as capabilities for anti-air, anti-submarine and mine 
warfare] AIR, SURFACE AND SUB-SURFACE WARFARE. 
THESE 


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SHALL 
INCLUDE, BUT NOT 
LIMITED TO, 
SEALIFT AND 
TRANSPORT NAVAL AIR RECONNAISSANCE, RESCUE AND RELIEF, 
ANTI-AIR WARFARE, AMPHIBIOUS WARFARE, MINE WARFARE, 
ANTI-SUBMARINE WARFARE, SUBMARINE WARFARE, SPECIAL 
OPERATIONS, 
FLEET 
SUPPORT, 
NAVAL 
CONSTRUCTION, 
COMMAND AND CONTROL, AND NAVAL INTELLIGENCE. The 
enhanced navy defense capabilities shall enable the AFP to: 
(1) Develop its capabilities for naval defense; 
(2) Conduct amphibious operations for both military and civilian relief 
operations; 
(3) Defend the Philippine territorial seas, all its internal waters, as well as its 
200-mile exclusive economic zone (EEZ), from all forms of illegal 
intrusion or passage; 
(4) Protect all submarine-based lines of domestic and international 
communications; 
(5) Identify all vessels and monitor all kinds of surface and submarine passage 
through Philippine territorial waters; 
(6) Protect and preserve, [through] IN SUPPORT OF the Philippine Coast 
Guard (PCG), all coastal, near-coastal and riparian living and nonliving 
marine resources; 
(7) Provide transportation of personnel and materiel in times of natural 
disaster and rescue operations; and 
(8) Provide, and if practicable, manufacture, through Filipino skills and 
technology, its own requirements for seacraft and infrastructure supply 
and maintenance. 
(b) Development of air defense capability - The Philippine Air Force (PAF), 
being the country’s first line of external defense, shall develop its air defense 
capability by acquiring multi-role aircraft, air munitions, avionics, point and 
area defense missile system, maritime patrol and reconnaissance, and early 


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warning and control system, as well as capabilities for strategic battlefield 
airlift and limited ground attack in support of surface forces. The enhanced air 
defense capability shall enable the AFP to: 
(1) Detect, identify, intercept and engage, if necessary, any aircraft illegally 
intruding into or passing through Philippine airspace, up to areas near or 
around Philippine territorial limits, 
(2) Provide air support to Philippine ground and naval armed forces; 
(3) Provide 
airlift, 
search 
and 
rescue 
and 
rapid 
[development] 
DEPLOYMENT and related support in combat as well as disaster and 
other civilian relief operations; and 
(4) Provide, and if practicable, manufacture, through Filipino skills and 
technology, its own requirements for aircraff and infrastructure supply and 
maintenance. 
(c) Development of ground defense capability -The fragmented 
nature of 
Philippine land territory required the Philippine Army (PA) to develop its 
capabilities for ground defense and internal security as well as its capability 
for assistance to national development, search and rescue operations, relief 
and rehabilitation, natural resources and environmental protection. The 
en[a]hanced army defense capabilities shall enable the AFP to: 
x.x.x 
SEC. 4. Sections 6 & 7 of the same Act are hereby repealed. 
SEC. 5. Section 8 of the same Act is hereby amended to read as follows: 
"(Sec 8) SEC. 6. Appropriations for the AFP Modernization [Program] ACT - 
THE AFP MODERNIZATION ACT SHALL HAVE AN ANNUAL APPROPRIATION 
IN AN AMOUNT NOT LESS THAN THREE-TENTHS OF ONE PERCENTUM 
(0.3%) OF THE LAST OFFICIALLY-REPORTED GROSS NATIONAL PRODUCT." 


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[The annual appropriations for the AFP modernization program shall include the 
amounts necessary to support the funding requirements for all modernization projects 
approved by Congress under the preceding section] 
The funds to be appropriated by Congress under this Act shall be treated as a 
distinct and separate budget item from the regular appropriation for the Department of 
National Defense (DND) and the AFP and shall be administered by the Secretary of 
National Defense. 
[The proposed program shall be based on a ceiling for the first five (5) years of 
Fifty billion pesos (P50,000,000,000.00) Provided, that thereafter this amount may be 
increased commensurate to the increase in the Gross National Product (GNP)] 
SEC. 6. Section 9 of the same Act is hereby amended to read as follows: 
‘[Sec 9.1 SEC 7. Multi-year Contracts and other Contractual Arrangements - 
[(a)]The Secretary of National Defense, pursuant to [the] THIS ACT [AFP 
modernization program, projects and appropriations approved by Congress], 
may, subject to the approval by the President, provisions of existing laws and 
regulations including those of the Commission on Audit and under such terms 
and conditions most favorable to the government, enter into multi-year 
contracts, lease and lease-purchase agreements. 
[(b)For multi-year contracts, Congress shall upon certification by the President, 
make the corresponding appropriation for the, ensuing fiscal year. Provided, 
that Congress shall appropriate only such funds as may be necessary to pay 
any unpaid amount where such funds mentioned in Section 11 of this Act are 
not sufficient or available to meet such payments in full or in part. 
(c) The Secretary of National Defense shall submit to Congress, through the 
chairmen of the Senate Committees on national Defense and Security and 
Finance and the chairmen of the House Committees on National Defense and 
Security and Appropriations, copies of these multi-year contracts and other 
agreements/arrangements to enable Congress to appropriate funds.]” 
SEC. 7. Section 10 of the same Act is hereby amended to read as follows: 


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“[Sec lo] SEC 8. Sell-Reliant Defense Posture Program - 
(a) In implementing the modernization [program] ACT, the AFP shall, as far as 
practicable, give preference to Filipino contractors and suppliers or foreign 
contractors or suppliers WHO/WHICH ARE willing and able to [locate] 
ESTABLISH a substantial portion of [, if not the entire] THE production 
process of the item@) involved, IF NOT THE WHOLE OF IT, within the 
Philippines. 
(b) In order to reduce foreign exchange outflow, generate local employment 
opportunities and enhance technology transfer to the Philippines, the Secretary 
of National Defense shall, as far as feasible, incorporate in each contract [/] 
OR agreement special foreign exchange reduction schemes such as counter- 
trade, in-country manufacture, co-production [,] or other innovative 
arrangements or combinations thereof. 
(c) The AFP shall likewise ensure that, in negotiating all applicable contracts or 
agreements, provisions are incorporated WITH RESPECT TO [respecting] the 
transfer to the AFP of the principal technology involved as well as the training 
of AFP personnel to operate and maintain in such equipment or technology. 
(D) A CONTINUOUS RESEARCH AND DEVELOPMENT PROGRAM 
SHALL BE ADOPTED FOR PURPOSES OF UTILIZING NEW 
TECHNOLOGY OR OTHERWISE UPGRADING EXISTING AFP 
INVENTORY OF EQUIPMENT AND WEAPON SYSTEMS. 
THE 
NECESSARY FUNDING FOR THIS PROGRAM SHALL BE SOURCED 
FROM THE APPROPRIATION PROVIDED FOR UNDER THIS ACT. 
SEC. 8. Section 11 of the same Act is hereby amended to read as follows: 
* “[Sec 111 SEC 9. AFP Modernization Act Trust Fund -There 
is hereby 
created a trust fund, to be known as the AFP Modernization Act Trust Fund. Said 
trust fund SHALL BE DEPOSITED IN AN AUTHORIZED GOVERNMENT 
DEPOSITORY BANK UNDER THE NAME OF THE AFP MODERNIZATION 
ACT TRUST FUND AND [,which] shall be used exclusively for the AFP [MI 
modernization [program] ACT, but not to include salaries and allowances [J. 
THE TRUST FUND shall be funded out of the following: 


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(a) Appropriations for the AFP modernization [program] ACT PROVIDED, 
THAT UNDISBURSED AMOUNTS AT THE END OF ANY YEAR 
SHALL BE CARRIED OVER TO THE SUCCEEDING YEAR: 
(b) The proceeds from the sale, lease or joint development of military 
reservations, as may be authorized by Congress, including such immovable 
and other facilities as may be found therein not OTHERWISE covered by the 
Bases Conversion Development Authority, as provided for in Republic Act 
No.7227; 
(c) Shares of the AFP from the proceeds of the sales of military camps provided 
for under Republic Act No. 7227 AS WELL AS THE PROCEEDS FROM 
THE LEASE AND/OR JOINT-VENTURE AGREEMENTS AND SUCH 
OTHER DISPOSITIONS PERTAMING TO THE SAME CAMPS; 
(d) Proceeds from the sale of the products of the G[g]overnment A[a]rsenal 
AND/OR, IN CASE OF JOINT VENTURE, ALL INCOMES EARNED 
FROM THE EQUITY SHARE OF THE GOVERNMENT ARSENAL, 
FROM THE JOINT VENTURE; 
(e) The proceeds from the disposal of excess and/or uneconomically repairable 
equipment and other movable assets of the AFP and the government arsenal; 
(0 Funds from budgetary surplus, if any, as may be authorized by Congress, 
subject to the provisions of [Section 81 SECTION 6 of this Act; [and] 
(g) All interest income of the trust fund. 
(H)AND OTHER SOURCES AS MAY BE IDENTIFIED AND AS APPROVED 
BY THE PRESIDENT. 
The trust fund shall be administered by the Secretary of National Defense in accordance 
with existing government auditing rules and regulations. THE DEPARTMENT OF NATIONAL 
DEFFENSE SHALL CONDUCT PERIODIC STUDIES ON HOW TO MAXIMIZE THE 
UTILIZATION OF THE TRUST FUND AND HOW ADDITIONAL REVENUES CAN BE 
GENERATED TO FUND THE AFP MODERNIZATION. 


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SEC. 9. Section 12 of the same Act is hereby amended to read as follows: 
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“[Sec 12.1 SEC 10. Modernization of the Government Arsenal -The 
modernization of the government arsenal, for the development of production capabilities 
to enhance self-sufficiency 
in defense requirements, shall be part of the AFP 
modernization [program] ACT. The government arsenal shall be effectively utilized in 
the production of basic weapons, ammunition and other munitions for the use of the AFP 
and the Philippine National Police (PNP), and for the sale and export of products in 
excess of AFPPNP requirements. The government arsenal may use such production 
facilities as it may own or be provided with under this Act or as it may arrange, under 
joint venture, co-production or similar arrangements, with local and foreign entities. 
PROVIDED FURTHER THAT IN CASE OF JOINT VENTURE: 
(A) THE AFP, PNP AND OTHER GOVERNMENT AGENCIES ARE HEREBY 
MANDATED TO SOURCE THEIR AMMUNITION AND OTHER 
MUNITIONS REQUIREMENTS FROM THE JOINT VENTURE (JV) 
COMPANY TO SERVE AS THE JV’s DOMESTIC MARKET BASE; 
(B)THE PROCUREMENT FROM THE JV OF THE AMMUNITION AND 
OTHER MUNITIONS INTENDED FOR THE AFP, PNP AND OTHER 
GOVERNMENT AGENCIES SHALL BE PROGRAMMED AND PAID 
THROUGH THE GOVERNMENT ARSENAL; AND 
(C)THE GOVERNMENT ARSENAL SHALL REMAIN AS A BUREAU 
UNDER THE DND TO SERVE AS THE ADMINISTRATOR OF THE 
DEFENSE 
INDUSTRIAL 
ESTATE 
WITHIN 
ITS 
PRESENT 
JURISDICTION AND SUCH OTHER AREAS AS MAY HEREAFTER BE 
DESIGNATED TO PERFORM ITS MANDATE UNDER RA 1884 AND EO 
292. 
PROVIDED FINALLY THAT THE PRESENT SITE OF THE GOVERNMENT 
ARSENAL, AS DEFINED BY PRESIDENTIAL PROCLAMATION NUMBER 361-A 
DATED 7 MARCH 1968, IS HEREBY DECLARED A DEFENSE INDUSTRIAL ECONOMIC 
ZONE WITH INVESTMENTS TIIEREAT ENTITLED TO SUCH TAX PRIVILEGES AND 
OTHER APPROPRIATE INCENTIVES THAT ARE ALLOWED UNDER RA 7042, AS 
AMENDED, AND OTHER EXISTING LAWS. 


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SEC. 10. Section 14 of the same Act is hereby amended to read as follows: 
“[SEC. 141 SEC 11. [AFP Procurement] ACQUISITION Systems FOR THE AFP 
MODERNIZATION ACT - [The DND-AFP shall strengthen its systems and] THE DND 
SHALL HAVE A DEFENSE ACQUISITION SYSTEM WHICH SHALL BE 
SEPARATE AND DISTINCT FROM THAT OF AND THOSE APPLICABLE TO 
OTHER DEPARTMENTS. THIS SYSTEM SHALL SIMPLIFY THE procedures for 
equipment AND NON-EQUIPMENT acquisition, taking into account new requirements 
under the AFP modernization [program] ACT’. 
PROJECT IDENTIFICATION AND REQUIREMENTS DETERMINATION 
SHALL BE CONDUCTED AT THE LEVEL OF THE AFP. 
ON THE OTHER HAND CONTRACT NEGOTIATIONS, ACQUISITION AND 
PROCUREMENT SHALL BE DONE AT THE LEVEL OF THE DND. AN OFFICE OF 
THE UNDERSECRETARY OF THE DND FOR RESOURCE MANAGEMENT AND 
CAPABILITY DEVELOPMENT IS HEREBY CREATED FOR THE PURPOSE. 
[Contract negotiation and equipment acquisition shall be treated as two sequential 
but separate steps each requiring the separate decision of the Secretary of National 
Defense. The decision making process for equipment acquisition shall start at the 
appropriate service command and submitted to the AFP Weapons Systems Board, while 
contract negotiations shall start at general headquarters AFP level. In its system and 
procedures for equipment acquisition, the provisions of Presidential Decree No. 1594, as 
amended and other applicable laws shall apply.] 
SEC. 11. There will be a Section 12 which will he inserted in the same Act which will 
read as follows: 
“SEC. 12. AFP MODERNIZATION ACT EXEMPTION FROM FEES, TAXES, 
DUTIES AND ASSESSMENTS - ALL PROJECTS, UNDERTAKINGS, ACTIVITIES 
AND PROGRAMS UNDER THE AFP MODERNIZATION ACT SHALL BE 
EXEMPT FROM ANY AND ALL FEES, TAXES, DUTIES AND ASSESSMENTS 
IMPOSED 
AND/OR 
REQUIRED 
BY 
GOVERNMENTAL 
AND 
NON- 
GOVERNMENTAL AGENCIES, BODIES AND/OR ENTITIES.” 


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SEC. 12. Section 15 of the same Act is hereby amended to read as follows: 
[Sec 151 Sec 13. [Guidance for the President] IMPLEMENTATION OF THE 
AFP MODERNIZATION PROGRAMS - THE DEPARTMENT OF NATIONAL 
DEFENSE, IN CONSULTATION WITH THE AFP, SHALL, WITHIN NINETY (90) 
DAYS FROM THE APPROVAL OF THIS ACT, SUBMIT TO THE PRESIDENT OF 
THE REPUBLIC OF THE PHILIPPINES AS COMMANDER-IN-CHIEF, FOR HIS 
APPROVAL, THE PRE-DETERMINED PROJECTS, ACTIVITIES, UNDERTAKINGS 
AND SCHEDULE OF THE AFP MODERNIZATION PROGRAMS WHICH SHALL 
INCLUDE: 
(A) THE SIZE AND SHAPE OF THE AFP IN TERMS OF PERSONNEL 
EQUIPMENT AND FACILITIES. 
(B) THE MAJOR WEAPON AND NON-WEAPON EQUIPMENT AND 
TECHNOLOGY ACQUISITION SOUGHT BY THE SERVICES AND UNITS 
OF THE AFP AND MAJOR INFRASTRUCTURE, CONSTRUCTION OR 
IMPROVEMENT INTENDED TO BE MADE: AND 
(C) THE PRIORITIES AND ESTIMATED COSTS THEREOF: 
THE AFP MODERNIZATION PROGRAMS SHALL BE IN FULL 
FORCE AND EFFECT FOR A PERIOD OF FIVE (5) YEARS FROM THE 
DATE OF APPROVAL THEREOF. THEREAFTER, A PERIODIC 
REVIEW MAY BE CONDUCTED BY THE DEPARTMENT OF 
NATIONAL 
DEFENSE, TOGETHER WITH 
THE AFP, 
AND 
NECESSARY REVISIONS THEREOF MAY BE MADE, SUBJECT TO 
THE APPROVAL OF THE PRESIDENT OF THE PHILIPPINES. 
HOWEVER, [Tlto meet unforeseen national security emergencies, the 
President, upon the recommendation of the Secretary of National Defense, 
may modify the PROGRAMS FROM TIME TO TIME.[program through 
substitution or revision of a component project therein. Provided, however, 
that he shall report such action to Congress within thirty (30) days. 


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SEC. 13. Section 16 of the same Act is hereby amended to read as follows: 
‘[SEC 161 SEC 14. Annual Reports - x x 
@)THE SECRETARY OF NATIONAL DEFENSE SHALL SUBMIT TO THE 
PRESIDENT AND CONGRESS ANNUAL REPORTS ON: 
(1) THE PROGRESS OF THE IMPLEMENTATION OF THE AFP 
MODERNIZATION ACT TO INCLUDE THE PROGRAMS THUS 
FAR COMPLETED AND ON- GOING; AND 
(2)THE STATUS OF THE AFP MODERNIZATION ACT TRUST 
FUND AS PROVIDED UNDER SECTION 9 HEREOF. 
[(a)The Secretary of National Defense shall submit to the President 
and Congress an annual report on the status of the AFP 
Modernization Act Trust Fund, as provided for in Section 11 of 
this Act. 
(b) The Chief of Staff, AFP shall submit to the President and 
Congress, through the Secretary of National Defense, an annual 
report containing the progress of the implementation of the AFP 
modernization program under this Act to include the AFP 
Modernization activities implemented prior to the approval of this 
Act.] 
SEC. 14. There will be a Section 15 which will be inserted in the sanie Act which will 
read as follows: 
‘SEC. 15. IMPLEMENTING GUIDELINES, RULES AND REGULATIONS - 
WITHIN NINETY (90) DAYS FROM THE APPROVAL OF THIS ACT, THE DND, IN 
CONSULTATION WITH THE AFP AND OTHER CONCERNED DEPARTMENTS, 
SHALL PREPARE AND FILE THE NECESSARY IMPLEMENTING GUIDELINES, 
RULES AND REGULATIONS IN ORDER TO CARRY OUT THE PROVISIONS OF 
THIS ACT.” 
SEC.15. Sections 17, 18 and 19 of the same Act are hereby amended to read as follows: 
‘[Sec 171 SEC. 16. Separability Clause. -If 
any provision of this Act shall be 
held unconstitutional or invalid, the other provisions not otherwise affected shall remain 
41 
in full force and effect. 


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“[Sec 181 SEC. 17. Repealing Clause. -All 
laws, executive orders, rules and 
regulations inconsistent with or contrary to this Act, are hereby deemed accordingly 
repealed or amended. 
“[Sec 191 SEC. 18. Effectivity Clause. -This 
Act shall take effect after fifteen 
(1 5) days from its publication in at least two (2) newspapers of national circulation.” 
Approved