NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
SENATE
o 7 71
S. No. ^ 
^ ^
'ff'rfirp o( tl,cC!
24 AUG “7 P6 -43
OBV:
Introduced by Senator Loren B. Legarda
AN ACT
PROVIDING FOR THE STRENGTHENING AND MODERNIZATION OF THE 
PHILIPPINE COAST GUARD AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Philippines, with its 7,641 islands and 36,289 kilometers of shoreline, 
possesses a vast maritime territory rich in natural resources, placing it in a strategic 
geopolitical and economic position. However, this strategic position has also led to 
increasing territorial confrontations in the West Philippine Sea (WPS). Illegal 
infrastructures have been erected in disputed areas within the country's Exclusive 
Economic Zone (EEZ), protected marine resources are being exploited, Filipino 
fishermen are barred from their traditional fishing areas, and supplies and medication 
are blocked from reaching government military personnel. These aggressive actions, 
backed by the People's Republic of China's technological and modernized maritime 
capacity, have resulted in dangerous incidents, damaging Philippine vessels, 
endangering lives, and depleting maritime resources.
Moreover, the Philippines' maritime areas are vulnerable to disasters. The 
country experiences an average of 20 tropical cyclones annually and faces risks from 
oil spills and other maritime accidents. In response to these challenges, a strong, 
technically capable, and responsive coast guard is essential to ensure swift and 
effective maritime response.
The proposed PCG Strengthening and Modernization Act aims to significantly 
enhance the capabilities of the Philippine Coast Guard. This Act outlines a


comprehensive strengthening and modernization plan that includes acquiring 
advanced maritime equipment, reviewing and updating doctrinal rules, strengthening 
the organizational capacity of PCG, enhancing personnel training, and improving 
operational capabilities. This strengthening and modernization will empower the PCG 
to effectively safeguard the country's maritime interests. Central to the Act's provisions 
is the reinforcement of law enforcement, security measures, disaster response and 
environmental protection. By adhering to international maritime conventions and 
national laws, the PCG will be better equipped to enforce regulations and strengthen 
port state control. Additionally, enhancing response capabilities in maritime incidents 
underscores the Act's commitment to ensuring safety and security along Philippine 
waters.
Furthermore, the Act emphasizes the importance of search and rescue 
operations, environmental protection, and economic security. By combatting illegal 
fishing, preserving marine biodiversity, and safeguarding international shipping routes, 
the PCG Strengthening and Modernization Act aims to bolster economic activities, 
protect vital marine resources, and ensure the nation's prosperity amidst maritime 
challenges.
In view of the foregoing, the passage of this measure is earnestly sought.
HtOREN LEGARDA


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Third Regular Session 
)
SENATE 
s. Nn. 2775
24 AUG-7 P6 :43
P/TEIV
Introduced by Senator Loren B. Legarda
AN ACT
PROVIDING FOR THE STRENGTHENING AND MODERNIZATION OF THE 
PHILIPPINE COAST GUARD AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in the 
Congress assembled:
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Section 1. Short 77f/e—This Act shall be known as the "PCG Strengthening and
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Modernization Act."
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Sec. 2. Declaration of Policy — It is hereby declared the policy of the State to
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modernize the Philippine Coast Guard (PCG) to a level where it can effectively and
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fully perform its statutory mandates to ensure the maritime safety, maritime
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environmental protection, and maritime security of the Republic of the Philippines.
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Toward this end, the principal thrusts of the modernization program under this Act
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shall be:
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(a) The development of a more mobile and visible coast guard force that
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will establish its vision of a "world-class guardian of the sea" by 2035;
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(b) The acquisition and upgrading of appropriate technology and
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equipment;
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(c) The doctrinal, organizational, and personnel strengthening of the PCG;
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and
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(d) The strategic improvement and construction of bases, installations, and
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other PCG facilities.


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Sec. 3. Objectives —J\\Q PCG Strengthening and Modernization program shall
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be implemented in accordance with the following objectives:
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(a) To develop its capability to uphold the sovereignty, territorial integrity,
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and sovereign rights of the Republic of the Philippines and to maintain
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security and safety of the maritime domain from all forms of maritime
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incidents and transnational crimes;
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(b) To develop its capability to support other government agencies in the
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preservation of the national patrimony, including the country's living and
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non-living marine, submarine, mineral, coastal forest, and other natural
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resources located within its territory and its exclusive economic zone
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(EEZ);
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(c) To enhance its capability to fulfill its mandate to protect the Filipino
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people not only from armed threats at sea but from the ill effects of life
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threatening and destructive consequences of disasters and calamities,
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including typhoons, earthquakes, tsunamis, volcanic eruptions, oil spills,
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major accidents in the far-flung or inaccessible areas at sea, and from
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all forms of ecological damage;
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(d) To improve capability and capacity in the enforcement of domestic and
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foreign policies as well as international accords against smuggling,
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piracy, armed robbery, poaching, illegai fishing, smuggling, drug
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trafficking, hijacking of seacraft and vessels, trade in human beings and
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other serious international crimes, drug-trafficking, and the transport of
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toxic and other ecologically-harmful substances taking place in or
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through Philippine territory;
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(e) To enhance its capability towards inter-agency coordination in terms of
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maritime law enforcement and maritime counter-terrorism; and
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(f) To develop its capability to support national development.
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Sec. 4. Development of PCG Capabilities — The PCG Strengthening and
29 
Modernization program shall be geared towards the development of the following
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capabilities:
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(a) Development of floating assets—The enhanced fleet operations shall
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enable the PCG to:


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i. 
Patrol the Philippine maritime jurisdiction, including the EEZ, to 
enforce all applicable laws;
ii. 
Protect and preserve all coastal, near coastal, and riparian living and 
nonliving marine resources;
iii. 
Provide transportation of personnel and material in times of natural 
disaster and rescue operations; and
iv. 
Conduct search and rescue operations during maritime incidents 
such as fires at sea, collisions, groundings, oil spills, and flash floods, 
among others.
(b) Development of air assets—The enhanced air operations shall enable 
the PCG to:
i. 
Patrol, detect, and challenge, if necessary, any vessel and aircraft 
illegally intruding into or passing through the Philippines' EEZ 
management, up to areas near or around the Philippine territorial 
limits;
ii. 
Conduct maritime air operations in support of PCG missions;
iii. 
Provide airlift, search and rescue, rapid deployment and related 
support in disaster and other civilian reiief operations; and
iv. 
Support the Philippine naval armed forces.
(c) Development of Maritime Domain Awareness (MDA) capabilities—The 
PCG shall acquire and upgrade contemporary, modern, and state-of-the 
art equipment and systems to enhance its MDA capabilities in the 
performance of its mandate.
(d) Development of fleet support and infrastructure—The PCG shall acquire, 
construct, develop, and upgrade its infrastructure and facilities for the 
following:
Response bases for all operational units of the PCG;
Coast Guard stations and substations; and 
Training, ship/aircraft repair and maintenance, and logistics for 
PCG operating units;
(e) Development of national headquarters 
capabilities—The
modernization of the PCG requires the renovation and development of


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the national headquarters capabilities for command, control,
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communications, and information systems networks.
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Sec. 5. Components of the PCG Strengthening and Modernization Program -
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The PCG Strengthening and Modernization program shall be divided into four tiers in
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line with the capabilities and include the following:
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(a) First Tier—Development of PCG Response Bases and Enhancement of
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Maritime Domain Awareness Capabilities
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i. Response Bases—The PCG Strengthening and Modernization
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program shall entail the construction and development of
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permanent response bases to house all PCG operational units,
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such as Marine Laboratories, Search and Rescue Vessels (SARVs),
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Offshore Patrol Vessels (OPV), Maritime Pollution Vessels
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(MARPOL vessels), and others to allow the PCG to rapidly respond
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to maritime emergency calls in the most efficient and effective
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manner.
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ii. 
Maritime Domain Awareness (MDA) Capabilities—The PCG
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Strengthening and Modernization program shall entail the
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acquisition and upgrade of equipment and systems such as Radar
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Stations, Lighthouses, Unmanned Aerial Vehicles, Unmanned
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Underwater Vehicles, and SARVs to enhance MDA capabilities.
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(b) Second Tier—Development of Infrastructure and Interdiction
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Capabilities
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i. Interdiction 
Capabilities—The 
PCG Strengthening and
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Modernization program entails the acquisition of state-of-the-art
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vessels and equipment to enhance interdiction and law
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enforcement capabilities.
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ii. Coast Guard Stations and Substations—The PCG Strengthening
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and Modernization program entails the improvement and
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development of infrastructures and facilities of Coast Guard
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stations and substations. Each shoreline municipality shall have
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its own substations, be fully equipped, and have constant or
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uniform stations. Substations will serve as its smaller unit.


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iii. 
MARPOL (Maritime Pollution) Vessels—The PCG Strengthening 
and Modernization program shall acquire MARPOL vessels to 
strengthen the marine environment protection mandate of the 
PCG.
iv. 
Development and Improvement of Training Facilities—The PCG 
Strengthening and Modernization program shall entail the 
development and improvement of training facilities for study, 
training, professional progress, and exercise.
(c) Third Tier—Acquisition and Development of Patrol Vessels and Air 
Capabilities
i. 
Offshore Patrol 
Vessels—The PCG Strengthening and
Modernization program shall develop and acquire new OPVs to 
strengthen coastal defense and the management of the country's 
EEZ. The acquisition of OPVs shall enable the PCG to:
1) Patrol, detect, intercept, engage, and challenge, if 
necessary, any vessel illegally intruding into or passing 
through the Philippines' EEZ, up to areas near or around 
the Philippine territorial limits;
2) Provide transportation of personnel and material in times 
of natural disaster and rescue operations;
3) Conduct search and rescue operations during maritime 
incidents; and
4) Support the Philippine naval armed forces.
ii. 
Aircraft—The PCG Strengthening and Modernization shall acquire 
and develop aircraft to enable the PCG to:
1) Strengthen maritime and airspace security in different 
areas and stations;
2) Patrol, detect, and challenge, if necessary, any vessel and 
aircraft illegally intruding into or passing through the 
Philippines' EEZ management, up to areas near or around 
the Philippine territorial limits;
3) Support its operations as a law enforcement arm and


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nautical services; and
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4) Support the Philippine naval armed forces.
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(d) Fourth Tier—Infrastructure and Facilities Development
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i. 
Construction 
and 
Development of Shipyards—The 
PCG
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Strengthening and Modernization program shall provide for the
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construction and development of shipyards that can contribute
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to regional industrial infrastructure and national security
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interests.
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ii. 
Construction 
and 
Development of Hangars—The 
PCG
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Strengthening and Modernization program shall entail the
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construction and expansion of hangars that serve as protection
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from the weather and direct sunlight, and for maintenance,
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repair, production, assembly, and storage of aircraft.
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Sec. 6. Organization and Personnei Capabiiity- In view of the enhancements
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in capability, acquisition of new equipment, and establishment of new facilities, the
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PCG shall implement organizational and personnel strengthening measures parallel to
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the modernization program. These measures shall be carried out in the following
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manner:
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(a) First Tier - Development of Rationalized Systems and Organizational
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Strengthening
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i. Doctrinal Development - The PCG shall generate, evaluate,
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consolidate, formalize, and update maritime doctrines necessary
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for lawful, effective, and efficient operations.
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ii. Doctrine Review and Validation - Conduct periodic reviews and
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validation of doctrines through field application, testing, and
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exercises.
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iii. Organizational Review and Streamlining - Undertake a
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comprehensive review of the organization's structure and
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functions, including the streamlining of units and offices. This
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process aims to eliminate overlapping functions, simplify
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procedures, and improve response times.
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(b) Second Tier - Professionalization and Training of Human Resources


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i. Enhanced Recruitment - Establish enhanced recruitment
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processes to attract highly qualified candidates to join the PCG.
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ii. Comprehensive Training Programs - Formulate and implement
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comprehensive training programs tailored to various
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specializations within the PCG, ensuring personnel are well-
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educated, motivated, and highly skilled.
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The Department of Budget and Management (DBM) shall provide technical
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budgetary assistance to the PCG to ensure it attains an optimal organizational size.
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This support will enable the PCG to effectively operate its modernized equipment,
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manage new facilities, and assume additional tasks.
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Sec. 7. Period of Implementation - The strengthening and modernization
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program under this Act shall be implemented in four (4) tiers, with each tier composed
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of three (3) years, as used in Section 5 and 6 of this Act, for a total period of twelve
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(12) years. Provided, however, that payments for the amortization of outstanding
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multi-year contract obligations incurred under this Act may extend beyond this period.
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Sec. 8. Submission of the PCG Strengthening and Modernization Program -
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(a) Within ninety (90) days from the effectivity of this Act, the President,
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upon the recommendation of the Secretaries of the Departments of
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Transportation, and Budget and Management, shall submit the PCG
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Strengthening and Modernization program as provided for in this Act
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to Congress for its consideration and approval in a joint resolution of
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the House of Representatives and the Senate. The program shall
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indicate or show inter alia:
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i. 
Personnel, equipment, and facilities inventory before the
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commencement and during the various phases of the
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modernization program;
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ii. 
The target strengthening and modernization projects under
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it, including the major weapon and non-weapon equipment
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and technology acquisitions, any major infrastructure
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construction or improvement to be made, doctrinal and
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organizational review, and the particular objective(s) and
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component(s) under Sections 3 and 4, respectively, of this


1 
Act to which such intended acquisition, construction, or
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improvements belong;
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iii. 
The priorities, schedules as well as the estimated average
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cost for each strengthening and modernization project or
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upgrading to be undertaken; and
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iv. 
The specific and measurable success indicators,
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performance metrics, means of verification of the success
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of the activities and acquisitions composing the PCG
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Strengthening and Modernization program, and the
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monitoring and evaluation plan for its implementation.
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(b) In the event Congress approves the PCG Strengthening and
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Modernization program, the joint resolution shall be the basis for
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subsequent executive and legislative actions to implement the PCG
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Strengthening and Modernization program until its complete and full
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realization.
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Sec. 9. Appropriations— The annual appropriations for the PCG Strengthening
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and Modernization Program shall include the amounts necessary to support the
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funding requirements for all the modernization components approved by Congress
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under the preceding sections.
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The appropriated funds under this Act shall be considered distinct and separate
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from the regular appropriations for the Department of Transportation. Such funds shall
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be facilitated by the Secretary of the Department of Transportation for its proper
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implementation.
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The amount of One Hundred Billion Pesos (PhP 100,000,000,000.00) for the
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first implementation period, or the first three years, shall be appropriated and shall be
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renewed every implementation period, as stated in this Act. Provided, that such
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amount may be increased thereafter.
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Sec. 10. PCG Strengthening and Modernization Act Trust Fund- There is hereby
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created a trust fund, to be known as the PCG Strengthening and Modernization Act
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Trust Fund. This trust fund shall be used exclusively for the PCG Strengthening and
31 
Modernization Act and shall be funded through the following:


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(a) Appropriations for the PCG Strengthening and Modernization Program
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pursuant to the provisions of this Act;
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(b) Percentage (40%) of the annual proceeds of the Oil Pollution
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Management Fund provided for under RA 9483;
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(c) Sale of proceeds from the sale, lease or joint development of assets,
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and disposal of excess and/or uneconomically repairable equipment
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and other movable assets of the PCG;
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(d) Dues, fines, and penalties collected by the PCG in the exercise of its
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functions;
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(e) Grants, donations and endowments from various domestic and foreign
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sources;
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(f) Unused or undisbursed funds, other than unused appropriations for
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salaries and benefits of the PCG personnel, remaining from all
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previous appropriations;
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(g) Savings from austerity measures by the PCG, generated in the
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previous fiscal year; and
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(h) All interest income of the Trust Fund.
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The trust fund shall be administered by the Secretary of Transportation, in
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accordance with existing government auditing rules and regulations.
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Sec. 11. Multi-year Contracts and Other Contractual Arrangements-
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(a) The Secretary of Transportation, pursuant to the PCG Strengthening
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and Modernization program, projects and appropriations approved by
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Congress, may, subject to the approval by the President, provisions of
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existing laws and regulations including those of the Commission on
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Audit and under such terms and conditions most favorable to the
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government, enter Into multiyear contracts, lease and lease-purchase
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agreements.
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(b) For multi-year contracts. Congress shall, upon certification by the
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President, make the corresponding appropriation for the ensuing fiscal
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year: Provided, that Congress shall appropriate only such funds as may
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be necessary to pay any unpaid amount where such funds mentioned
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in Sections 8 and 9 of this are not sufficient or available to meet such


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payment in full or in part.
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(c) The Secretary of Transportation shall submit to Congress, through the
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Congressional Oversight Committee, copies of these multi-year
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contracts and other agreements/arrangements to enable Congress to
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appropriate funds.
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Sec. 12. PCG Procurement System - The Department of T ransportation and the
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PCG shall strengthen its systems and procedures for equipment acquisition, taking
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into account new requirements under the PCG Strengthening and Modernization
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Program. Contract negotiations, and equipment, vessel and facilities acquisition shall
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be treated as two sequential but separate steps, each requiring the separate decision
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of the Secretary of Transportation. Both the decision-making and contract negotiation
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processes for its acquisition shall start at the PCG level and be submitted to the
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Secretary of the Department of Transportation.
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In its systems and procedures for equipment acquisition, the provisions of RA
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9184, as amended, and other applicable laws shall apply.
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Sec. 13. Guidance for the President - To meet unforeseen national security
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emergencies, the President, upon the recommendation of the Secretary of
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Transportation, may modify the program through substitution or revision of a
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component project therein: Provided, however, that he/she shall report such action to
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Congress within thirty (30) days.
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Sec. 14. Annuai Reports - Not later than the end of the first quarter of the
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succeeding year:
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(a) The Secretary of Transportation shall submit to the President and
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Congress an annual report on the status of the PCG Strengthening and
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Modernization Act Trust Fund, as provided for in Section 9 of this Act;
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and
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(b) The Commandant of the PCG shall submit to the President and Congress,
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through the Secretary of Transportation, an annual report containing the
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progress of the implementation of the strengthening and modernization
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program under this Act to include the PCG Strengthening and
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Modernization Activities impiemented prior to the approval of this Act.
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This report shall include PCG's actual performance based on the
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identified specific and measurable success indicators, its means of
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verification, and the results of progress monitoring and evaluation.
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Sec. 15. Joint Congressional Oversight Committee - A Joint Congressional
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Oversight Committee is hereby created to monitor and oversee the implementation of
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the provisions of this Act. The Committee shall be composed of six (6) members each
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from the Senate and the House of Representatives who are to be appointed by the
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Senate President and the Speaker of the House of Representatives, respectively. The
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minority shall have at least two (2) representatives from both Houses. The Joint
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Congressional Oversight Committee shall be jointly chaired by the Chairpersons of the
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Committees on Transportation of both the Senate and the House of Representatives.
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The Committee shall be convened by the Chairpersons within thirty (30) days after
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the effectivity of this Act.
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Sec. 16. Repealing Clause- k\\ laws, decrees, orders, rules, and regulations or
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parts thereof which are inconsistent with or contrary to the provisions of this Act are
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hereby repealed or modified accordingly.
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Sec. 17. Separability Clause - If any provision of this Act is held invalid or
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unconstitutional, the other provisions not affected thereby shall remain valid and
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subsisting.
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Sec. 18. Effectivity - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in two (2) newspapers of general circulation in
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the Philippines.
Approved,
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