Senate
iSffitp of ilip fijfcrrtarp
SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. No. 
1325
■'7 FEB 13 P6S7
RECEIVED EYi
Introduced by Senator Richard J, Gordon
AN ACT CREATING THE REGIONAL INVESTMENT AND 
INFRASTRUCTURE CORPORATION OF CENTRAL LUZON 
TO FACILITATE THE CREATION OF THE CENTRAL LUZON INVESTMENT 
CORRIDOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The State is primarily tasked to promote entrepreneurship and create job 
opportunities through full and efficient use of its resources. Article XII Section 1 (par. 2) 
of the 1987 Constitution provides that it is the responsibility of the State to “...promote 
industrialization and full employment based on sound agricultural development and 
agrarian reform, through industries that make full and efficient use of human and natural 
resources, and which are competitive in both domestic and foreign markets...” In this 
regard, there is a need for the State to encourage, promote, and maximize use of 
existing infrastructure so as to accelerate economic and social development of the 
country.
Infrastructures already existing in the country such as the interconnecting 
highways: railway in Luzon; seaports in Subic, Mariveles, Aurora, and Manila; and 
airports in Subic, Clark, and Manila, when integrated and optimized effectively and 
efficiently, with vast idle lands nearby, when utilized gainfully by the Special Economic 
Zones shall accommodate the development of agriculture, industry, tourism, and other 
enterprises. The interconnecting infrastructures could serve as an economic engine of 
growth for Central Luzon to promote and encourage entrepreneurship and to create 
various jobs and business opportunities to the Filipino people.
Moreover, because of the global accessibility and direct access of these 
transportation hubs to domestic and foreign markets, economic activities must not be 
highly concentrated in Metro Manila. With the establishment of the Central Luzon 
Investment Corridor, Metro Manila will be decongested, as industries and populations 
will be dispersed to other locations in Central Luzon by granting incentives thereto, 
thereby helping solve Metro Manila’s long-standing traffic and congestion problem.
Therefore, the State must take advantage of the strategic infrastructures in 
Central Luzon as international transportation centers connecting the expansive areas in 
Luzon for the development of agriculture, industry, tourism, and other enterprises. The 
development of Special Economic Zones in the areas of Central Luzon through the 
Regional Investment and Infrastructure Corporation must, thus, be encouraged, as this 
will create business opportunities and variou>je^pportunities for the Filipino workers.
CHAR
RDON
Senator


SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. No. 
1325
senate
of t!jf E>rcrrt»rj»
’17 
FEB 13 P 6 S 7
RECEIVED by;
Introduced by Senator Richard J. Gordon
AN ACT CREATING THE REGIONAL INVESTMENT AND 
INFRASTRUCTURE CORPORATION OF CENTRAL LUZON 
TO FACILITATE THE CREATION OF THE CENTRAL LUZON INVESTMENT 
CORRIDOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
SECTION 1. Short Title. -  This Act shall be known as the “Regional Investment
2 
and Infrastructure Corporation of Central Luzon.”
3 
Sec. 2. Policy. -  It is hereby declared the policy of the state to promote
4 
entrepreneurship, investments, infrastructures, and encourage the creation of jobs and
5 
business opportunities primarily in Central Luzon and the Special Economic Zones
6 
created thereby, through strengthening and expanding the Bases Conversion
7 
Development Authority (BCDA), the Subic Bay Metropolitan Authority (SBMA), the Clark
8 
Development Corporation (CDC), the Aurora Pacific Economic Zone and Freeport
9 
Authority (APECO), the Authority of the Freeport Area of Bataan (FAB), and other
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Special Economic Zones, thereafter established, in Central Luzon to optimize the
11 
interconnecting highways, railway, seaports and airports in Central Luzon and for other
12 
purposes.
13 
Sec. 3. Purposes. -  This Act shall have the following purposes:
14 
(a) To promote entrepreneurship by generating investments therefore creating
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numerous jobs and business opportunities for the people;
16 
(b) To optimize the connecting highways and railway in Central Luzon; seaports
17 
in Subic, Mariveles, Aurora, and Manila; and airports in Subic, Clark, and Manila to
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serve as an investment corridor for Central Luzon and eventually, the whole country;
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(c) To encourage the Local Government Units (LGU) and the private sector to
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establish Special Economic Zones and provide incentives therefor by maximizing the
21 
creation of infrastructures resulting in numerous employment opportunities for the
22 
people;
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(d) To develop enterprise initiatives, encourage free trade, and foster national
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and local pride in the Local Government Units (LGU) and private sectors as collective
25 
stakeholders and pioneers for change in the development and integration of the Subic


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Bay Freeport Zone (SBFZ), the Clark Freeport Zone (CFZ), the Freeport Area of Bataan
2 
(FAB), the Aurora Pacific Economic Zone and Freeport (APECO) and other Special
3 
Economic Zones by adhering to the principle of global competitiveness that encourage
4 
business investments that are focused, fast, friendly, flexible, and forward-looking
5 
through the provision of tax and fiscal incentives to private sectors who relocate to the
6 
said areas. Furthermore, by providing additional benefits if the private sector involved
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initiates to build schools and universities, hospitals, and local groceries within the area;
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(e) To decongest Metro Manila by dispersing industries and populations to the
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Subic Bay Freeport Zone (SBFZ), the Clark Freeport Zone (CFZ), the Freeport Area of
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Bataan (FAB), the Aurora Pacific Economic Zone and Freeport (APECO) and other
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Special Economic Zones which will improve the quality of life by developing sustainable
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communities where residents live nearby where they work and where institutions such
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as schools and universities, hospitals, utilities, among others are within close proximity:
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(f) To lessen dependency on the national government and in the end, make the
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Local Government Units (LGU), the Bases Conversion and Development Authority, the
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Subic Bay Metropolitan Authority, the Clark Development Corporation, the Clark
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International Airport Corporation (CIAC), the Aurora Province Economic Zone and
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Freeport (APECO), the Freeport Area of Bataan (FAB), and other subsidiaries self-
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sustaining, income-generating, and revenue-contributing entities provided the LGUs
20 
concerned may actively join subject to their compliance with the Rules and Regulations
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which will thereafter be established;
22 
(g) To create sustainable industrial cities and communities that balances
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economic growth and expansion having regard to environmental protection and
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preservation taking into consideration the safe, orderly, convenient, and livable urban
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space for the people living within their areas of employment, thereby decongesting
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Metro Manila; and
27 
(h) To prompt the Local Government Unit (LGU) concerned to provide public and
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private financing to the private sectors who wish to relocate within the specified areas to
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stimulate pump-priming of investments with the end view of providing a better quality of
30 
life to all Filipinos.
31 
Sec. 4. Regional Investment and Infrastructure Corporation- There is hereby
32 
created a Regional Investment and Infrastructure Corporation of Central Luzon,
33 
hereinafter referred to as “RIIC”, to be composed of nineteen (19) members, to include:
34 
(i) the Chairman of the Bases Conversion and Development Authority, (ii) the Chairman
35 
of the Subic Bay Metropolitan Authority; (iii) the Chairman of the Clark Development
36 
Corporation, (iv) the Chairman of the Aurora Province Economic Zone and Freeport (v)
37 
the Chairman of the Authority of the Freeport Area of Bataan, (vi) the Provincial
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Governors of the Provinces of Aurora, Tarlac, Zambales, Bataan, Pampanga, Nueva


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Ecija, and Bulacan, (vii) the Chairman of the Metro Manila Development Authority, (viii)
2 
the Director General of Philippine Economic Zone Authority, (ix) Chief Operating Officer
3 
of the Tourism Infrastructure and Enterprise Zone Authority and (x) four (4) members
4 
from the private sector, appointed by the President of the Philippines. The Chairman of
5 
the RIIC shall be appointed by the President of the Philippines, chosen among the
6 
nineteen (19) RIIC members.
7 
Sec. 5. Powers and Functions. -  The RIIC shall be vested with the following
8 
powers and functions:
9 
(a) To encourage all cities and municipalities within the Central Luzon to each
10 
prepare, adopt, and implement a comprehensive and detailed master plan, which
11 
includes zoning and urban planning, in consultation and coordination with the
12 
appropriate national agencies and the local government units, for the sound and
13 
balanced development of the zones, to promote the economic and social development
14 
of the local communities in particular and the country in general;
15 
(b) To initiate and coordinate all development and infrastructure projects linking
16 
the seaports and airports to the Special Economic Zones and Tourism Enterprise Zones
17 
within the area; Provided, that when necessary, the RIIC shall likewise handle the
18 
bidding of the projects under the unsolicited build-operate-transfer or build-operate-own
19 
schemes, or through solicited bids under applicable government procurement laws
20 
and/or the rules promulgated by the National Economic Development Authority (NEDA);
21 
(c) To grant and administer all fiscal and non-fiscal incentives available under the
22 
Foreign Investments Law, the Omnibus Investments Code, the Philippine Economic
23 
Zone Act of 1995, and the Bases Conversion and Development Act of 1992;
24 
(d) To coordinate and assist existing Special Economic Zones created and/or
25 
licensed through the Philippine Economic Zone Authority (PEZA) and the Tourism
26 
Infrastructure and Enterprise Zone Authority (TIEZA);
27 
(e) To have the authority to approve submitted applications of private sectors, by
28 
local and foreign investors for the establishment of investments and infrastructures
29 
within the Special Economic Zones;
30 
(f) To accept any local or foreign investment, business or enterprise. Provided, it
31 
does not infringe the provisions of the 1987 Constitution;
32 
(g) To prioritize the creation of jobs;
33 
(h) To encourage earnest efforts and conciliation proceedings in case of labor
34 
disputes where abuses of the management and/or labor will be discouraged and dealt
35 
with expeditiously and fairly:
36 
(i) To generate its own revenues and be self-sustaining;
37 
(j) To invest its funds and other assets, as it may deem proper, to achieve its
38 
purpose;


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(k) 
To construct, acquire, own, lease, operate, and maintain on its own or through 
contract, franchise, license permit, public-private partnership, build-operate-transfer or 
joint-venture the required utilities and infrastructure facilities, including additional roads, 
bridges, airports, seaport, railroads, subways, and to fix just and reasonable rates, 
fares, charges and other prices therefor;
(l) To create, develop, manage, promote, and operate Special Economic Zones 
within Central Luzon and other development programs and projects connected 
therewith:
(m) In coordination with the Department of Agrarian Reform (DAR), to organize 
farmers into cooperatives and to merge them into one contiguous area to partner with 
local and foreign investors for the establishment of agro-industrial, agro-processing and 
agro-tourism zones, and to grant incentives thereto;
(n) To raise and borrow the necessary funds from local and international 
financial institutions and to issue bonds, promissory notes and other securities for that 
purpose and to secure the same by guarantee, pledge, mortgage, deed of trust or 
assignment of properties:
(o) To establish subsidiaries and serve as holding company of such subsidiaries;
(p) To enter into, make, perform and carry out contracts of every class, kind, and 
description which are necessary or incidental to the realization of this Act with any 
person, firm or corporation, private or public, or with foreign government entities, upon 
prior approval by higher government offices, when required and necessary ;
(q) To exercise the right of eminent domain;
(r) To adopt, implement and enforce ecological and environmental standards and 
measures for environmental pollution control and management;
(s) To provide, establish and accredit security and firefighting forces, and 
formulate and implement public safety measures to ensure the safety and preservation 
of peace and order within the area;
(t) To establish by itself or in coordination with national and local government 
agencies “One-stop Shops” for investors that promote focused, fast, friendly, flexible, 
and forward-looking businesses and investments; and
(u) To promulgate Rules and Regulations and perform such other powers and 
functions as may be necessary, appropriate, or incidental to this Act.
Sec. 6. Supervision. -  The RIIC shall be under the general supervision of the 
Office of the President of the Philippines; Provided, that the following agencies shall be 
mandated to coordinate with the RIIC with minimum red tape to allow the latter to 
undertake and implement its mandate by virtue of this Act, related laws, and its rules 
and regulations, to wit: (i) the Department of Trade and Industry (DTI), (ii) the 
Department of Foreign Affairs (DFA), (iii) the Department of Finance (DOF), (iv) the


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Department of Transportation (DOTr), (v) the Department of Environment and Natural
2 
Resources (DENR), (vi) the Department of Tourism (DOT), (vii) the Department of
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Public Works and Highways (DPWH), (viii) the Department of Labor and Employment
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(DOLE), (ix) the Department of Energy (DOE), (x) the Department of Information and
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Communications Technology (DICT), (xi) the Bureau of Immigration (Bl), (xii) the
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Department of Health -  Food and Drug Administration (DOH-FDA), (xiii) the Bureau of
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Internal Revenue (BIR), (xiv) the Bureau of Customs (BOC), (xv) the Securities and
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Exchange Commission (SEC), (xvi) the Department of Energy (DOE); the (xvii) Energy
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Regulatory Commission (ERC), the (xviii) the Philippine Economic Zone Authority
10 
(PEZA), and (xix) .the Tourism Infrastructure and Enterprise Zone Authority (TIEZA).
11 
Sec. 7. Executive Director. -  An Executive Director shall be appointed by the
12 
President of the Philippines, which shall be chosen from among three (3) recommended
13 
independent individuals, through a majority vote of the RIIC. Provided that, the
14 
recommended individuals chosen by the RIIC shall have at least five (5) years of work
15 
experience in finance administration or management.
16 
The Executive Director shall have the following powers and functions:
17 
(a) To assist in the administration and management of the RIIC;
18 
(b)To assist in the development and improvement of the Central Luzon
19 
Investment Corridor Master Plan;
20 
(c) To promote trade, tourism, and agriculture enterprises within the Special
21 
Economic Zones, so as to encourage more investments;
22 
(d) To ensure that Rules and Regulations established by the RIIC are enforced
23 
and implemented;
24 
(e)To resolve primary dispute settlements and resolutions within the Special
25 
Economic Zones, including labor disputes, in order to address local disputes
26 
and prevent strikes or lockouts;
27 
(f) To encourage the Local Government Units (LGU) to provide incentives to
28 
private sectors and entities who decide to relocate from Metro Manila to the
29 
Special Economic Zones under the RIIC; and
30 
(g) To guarantee that safety and security measures are properly maintained
31 
within the Special Economic Zones.
32 
Sec. 8. Central Luzon Investment Corridor Master Plan- Immediately upon the
33 
creation of the RIIC, coordination shall be made by all its members to arrive at a
34 
consensus to develop the Central Luzon Investment Corridor Master Plan (Plan)
35 
through the active participation of all stakeholders in planning and implementing the
36 
creation and continuous operation of an aggregation of special economic zones within
37 
the area that utilizes the Central Luzon Investment Corridor.


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The Plan shall include the provision of Housing Facilities within the Special
2 
Economic Zones to provide a comfortable and livable home and community where the
3 
workers and their families may live in houses easily accessible by non-motorized means
4 
of transportation.
5 
The Plan shall be signed by the RIIC and all participating stakeholders, which
6 
shall contain a long-term strategy and their concomitant commitment to implement the
7 
same. The Plan shall not be subject to frequent policy changes unless for key changes
8 
essential to further improve the productivity within the area.
9 
Sec. 9. Responsibilities of Partners/Stakeholders.- The Plan shall be formulated
10 
and implemented by the key stakeholders from the national government, local
11 
government and private enterprise. Both the national and local governments concerned
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shall have the general responsibility to provide ease of doing business by cutting the
13 
streamlining of bureaucratic processes for investors and providing a “One-stop Shop”
14 
for the processing of licenses. They shall also have the general responsibility to provide
15 
fiscal incentives to encourage investors to maximize the Central Luzon Investment
16 
Corridor. In particular:
17 
(a) The National Government
18 
(i) 
The Department of Trade and Industry (DTI) shall streamline the
19 
registration of businesses and promotion of the Central Luzon
20 
Investment Corridor to local and foreign enterprises. It shall formulate
21 
measures that will enable small and medium enterprises to avail
22 
themselves of the privileges available to large enterprises;
23 
(ii) 
The Department of Foreign Affairs (DFA), in coordination with the
24 
Department of Trade and Industry (DTI), shall conduct international
25 
trade fairs and such other international promotional events aiming at
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attracting foreign investors to the Subic Bay Freeport Zone (SBFZ), the
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Clark Freeport Zone (CFZ), the Freeport Area of Bataan (FAB), the
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Aurora Pacific Economic Zone and Freeport (APECO) and other
29 
Special Economic Zones, thereafter established;
30 
(iii) 
The Department of Finance (DOF), the Bureau of Internal Revenue
31 
(BIR) and the Bureau of Customs (BOC) shall provide for fiscal
32 
incentives that will induce and motivate the dispersal of industries to
33 
the specified economic zones of the Central Luzon Investment
34 
Corridor;
35 
(iv) 
The Department of Transportation (DOTr) shall ensure seamless and
36 
integrated transportation networks that provide fast, efficient, and
37 
reliable transportation for cargo and passengers throughout the stretch
38 
of the Central Luzon Investment Corridor;


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(v) 
The Department of Environment and Natural Resources (DENR) shall 
provide for the land and shall facilitate its conversion whenever 
necessary pursuant to the Central Luzon Investment Corridor Master 
Plan. It shall monitor and ensure compliance to rules and regulations 
on environmental protection;
(vi) 
The Department of Tourism (DOT), in coordination with the Tourism 
Infrastructure and Enterprise Zone Authority (TIEZA), shall be 
responsible for developing and promoting the potential of the area for 
tourism and shall ensure the creation of numerous jobs by facilitating 
the establishment of a tourism industry within the area. It shall also 
conduct local and international promotional campaigns necessary to 
achieve the said goal;
(vii) 
The Department of Public Works and Highways (DPWH) shall, in 
coordination 
with 
other 
Departments, 
ensure 
that 
adequate 
infrastructures for the growth of the area are built and existing ones 
properly maintained;
(viii) 
The Department of Labor and Employment (DOLE) shall ensure that 
full protection to labor and the promotion of full employment and equal 
employment opportunities for all shall be safeguarded;
(ix) 
The Department of Energy (DOE) and the Energy Regulatory 
Commission (ERC) shall ensure that adequate supply of electricity at 
all times and in a reasonable price is always available for the use of 
the specified Special Economic Zones and their established industrial 
cities and communities;
(x) 
The Department of Information and Communications Technology 
(DICT) shall ensure that fast and reliable telecommunications and 
internet access are easily available within the area at a reasonable 
rate;
(xi) 
The Department of Agrarian Reform (DAR) shall ensure and assist in 
the formation of farmer’s cooperatives and groups that can partner with 
local and foreign investors for the establishment of productive agro­
industrial, agro-processing and agro-tourism zones within the Central 
Luzon Investment Corridor;
(xii) 
The Department of Agriculture (DA) shall also ensure and assist in 
establishing a market for the high value crops that will be produced in 
agro-industrial, agro-processing and agro-tourism zones;
(xiii) 
The Department of Health - Food and Drug Administration (DOH-FDA) 
shall set the mandatory food safety standards to protect the consumers


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by ensuring that the standard on food and medical products are 
properly regulated by appropriate regulatory authorities and that 
precautionary measures are adopted;
(xiv) 
The Bureau of Immigration (Bl) shall ensure that there is a fast, 
efficient and speedy processing of visas, alien employment permits 
and such other permits that will enable foreign investors and legitimate 
expatriates to work at the Special Economic Zones;
(xv) 
The Securities and Exchange Commission (SEC) shall provide for the 
expeditious registration and licensing of corporations within the area 
with streamlined processes and requirements.
Furthermore, the said Departments and/or Agencies may provide their 
own Plan to bring in more investments and to be able to promote it in foreign 
nations to increase investments within the Special Economic Zones under 
the RIIC, so long as it is in accordance with the Central Luzon Investment 
Corridor Master Plan, as described in Section 8 of this Act.
(b) The Local Government Units (LGU) shall be responsible for providing the 
zoning and the comprehensive land use plan for the area. It shall assist in the 
identification and conversion of lands for the zone and shall provide 
investment incentives to the locators through local tax incentives and 
streamlining of processing of business permits. It shall also ensure peace and 
order within the area and shall coordinate with the National Housing Authority 
(NHA) for the housing of workers. It shall coordinate with the Philippine 
Economic Zone Authority (PEZA), the Tourism Infrastructure and Enterprise 
Zone Authority (TIEZA), and other government agencies to ensure the 
continuous growth and stability of the Special Economic Zones. Moreover, the 
LGUs, within the Central Luzon Investment Corridor, shall ensure that all 
highways, railways, airports, and seaports are in good condition and are 
properly maintained by the respective LGUs concerned.
The LGUs shall be encouraged to construct low-cost condominium 
buildings within the Special Economic Zones to provide housing facilities to 
the workers and their families to provide them with a comfortable and livable 
work-life balance, at the same time decongesting Metro Manila and improving 
its traffic condition. Moreover, LGUs shall be urged to enable the workers 
within the Special Economic Zones to be given accessible personal loans with 
low interest rates, as may be determined by the Monetary Board.
(c) The Philippine Economic Zone Authority (PEZA) shall assist with the creation 
of Special Economic Zones and shall provide such services and incentives to 
locators and investors necessary to ensure the viability of the Special


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Economic Zones within its powers, as provided by R.A. No. 7916 as amended 
by R.A. No. 8748. It shall further assist in the creation of new Special 
Economic Zones within the area.
(d) The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) shall assist 
with the creation of Tourism Enterprise Zones along the Central Luzon 
Investment Corridor and shall provide such incentives which it can provide in 
accordance with its powers under R.A. No. 9593.
(e) The Bases Conversion Development Authority (BCDA), the Subic Bay 
Metropolitan Authority (SBMA), the Clark Development Corporation (CDC), 
the Authority of the Freeport Area of Bataan (FAB), the Aurora Pacific 
Economic Zone and Freeport (APECO) and other Special Economic Zones, 
thereafter established, shall coordinate with RIIC and the rest of the 
stakeholders in the planning and implementation of the Central Luzon 
Investment Corridor Master Plan. It shall promote the Central Luzon 
Investment Corridor to local and international investors/locators, provide 
standards for doing business within their respective Special Economic Zones, 
and become pro-active in improving its facilities to attract more foreign 
investors by providing incentives and streamlined processing of documents to 
its locators and foreign investors.
(f) Private Enterprises shall be responsible for providing investments and 
infrastructures within the Central Luzon Investment Corridor which shall 
observe international best practices in their industrial operations while at the 
same complying with all national and local Rules and Regulations including 
those intended for environmental preservation and protection, and protection 
to labor legislations. Moreover, private enterprises may also propose their 
own Plan, so long as it is in accordance with the Central Luzon Investment 
Corridor Master Plan, as described in Section 8 of this Act.
Sec. 10. Establishment of RIIC-Registered Agro-Industrial and Agro-Processing 
Ecozone Export Enterprises and Agro-Industrial, Agro-Processing and Agro-Tourism 
Ecozone Enterprises. -  The RIIC, upon registration, may allow the establishment of 
Agro-Industrial and Agro-Processing Ecozone Export Enterprises and Agro-Industrial, 
Agro-Processing and Agro-Tourism Ecozone Enterprises within the Special Economic 
Zones that are located in areas identified by the Department of Agriculture (DA), the 
Department of Agrarian Reform (DAR) and/or the Bureau of Fisheries and Aquatic 
Resources (BFAR), which are suitable for the processing of agricultural and aquatic 
products, consistent with the Agriculture and Fisheries Modernization Act. The Agro- 
Industrial and Agro-Processing Ecozone Export Enterprises and Agro-Industrial, Agro-


1 
Processing and Agro-Tourism Ecozone Enterprises shall be engaged in the following
2 
types of activities:
3 
(a) Import-substituting commercial production and processing of agricultural
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crops for bio-fuel (such as but not limited to coconut, jathropa, sugarcane,
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cassava, corn, and sweet sorghum):
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(b) Processing/Manufacturing, including packing and canning, for export of
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agricultural and marine products (livestock and poultry, fruits and vegetables,
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aqua-culture products):
9 
(c) Integrated livestock, poultry and related projects involving primary production
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up to processing and export of final product:
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(d) Production of agricultural inputs such as feeds, veterinary drugs, and
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vaccines, fertilizers, and agri-chemicals for export:
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(e) Planting and operation of vineyards and winereies:
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(f) Projects involving the processing of agricultural waste materials into a
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commercially valuable product for export:
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(g) Bio-technology products using agricultural products as inputs or to be used
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inputs for agricultural production: and
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(h) Agro-tourism zones such as fruit orchards, plantations, vineyards and
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wineries, man-made lakes for fishing, without or without the establishment of
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hotels, resorts, entertainment, sports and recreational facilities and similar
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leisure facilities.
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The RIIC-Registered Agro-Industrial and Agro-Processing Ecozone Export
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Enterprises and Agro-Industrial, Agro-Processing and Agro-Tourism 
Ecozone
24 
Enterprises shall be entitled to the following incentives:
25 
(a) Four (4) years Income Tax Holiday (ITH):
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(b) Special five percent (5%) tax on gross income in lieu of all national and local
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taxes after the ITH period:
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(c) Tax and duty free importation of production equipment and machineries,
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breeding stocks, farm implements, including spare parts and supplies of the
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equipment and machineries:
31 
(d) Exemption from export taxes, wharfage dues, impost and fees:
32 
(e) Exemption of payment of local government fees such as Mayor’s Permit,
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Business Permit, Permit on the Exercise of Profession/Occupation/Calling,
34 
Health Certificate Fee, Sanitary Inspection Fee, and Garbage Fee:
35 
(f) Zero Value Added Tax (VAT) rate on local purchases to 
include
36 
telecommunication, power, and water bills:
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(g) Special Investor’s Visa:
38 
(h) Employment of foreign nationals: and
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(i) Simplified import and export procedures.
Sec. 11. Income Tax Holiday. -  An Income Tax Holiday (ITH) may be 
administered by the RIIC to the Registered Entities operating within the Special 
Economic Zones in the Central Luzon Investment Corridor. An ITH of one hundred 
percent (100%) from corporate income tax for the first five (5) years from its operations, 
may be granted to any registered entity operating within the Special Economic Zone if 
the said registered entity constructs housing and recreational facilities within their 
respective Special Economic Zones so as to provide its workers with a comfortable and 
livable life which is within their place of occupation. Moreover, an ITH for the first ten 
(10) years from its operations, may be granted to a registered entity if it constructs a 
housing and recreational facility within their Special Economic Zones and construct 
either a school, hospital or clinic, and places of worship for employees and/or the 
immediate community, and the like.
Upon expiry of the ITH, a five percent (5%) final tax on gross income earned in 
lieu of all national and local taxes shall be applied and distributed as follows;
(a) Three percent (3%) to the RIIC;
(b) One percent (1%) shall be directly remitted by the business establishments to 
the treasurer’s office of the municipality or city where the enterprise is located; and
(c) One percent (1%) shall be directly remitted by the business establishments to 
the National Government through the Bureau of Internal Revenue (BIR).
The BIR shall require a registered enterprise availing of the ITH to secure a 
Certificate of Eligibility from the RIIC before submitting its income tax return (ITR) with 
the BIR for validation.
Failure to secure the Certification and/or to file the ITH availment for validation 
within thirty (30) days from the last day of each statutory filing date for the ITR shall 
cause the forfeiture of the ITH availment for the taxable period.
For this purpose, a “Registered Entity^ shall be defined as any person, natural or 
juridical, licensed to do business in the Philippines and registered with the Regional 
Investment and Infrastructure Corporation (RIIC) to transact business within the Subic 
Bay Freeport Zone (SBFZ), the Clark Freeport Zone (CFZ), the Freeport Area of Bataan 
(FAB), the Aurora Pacific Economic Zone and Freeport (APECO) and other Special 
Economic Zones which may thereafter be established within the Central Luzon. 
Furthermore, “Gross Income Earned’ refers to gross sales or gross revenues derived 
from the registered activity, net of sales discounts, sales returns and allowances and 
minus cost of sales or direct costs but before any deduction is made for administrative 
expenses or incidental losses during a given taxable period.
Existing entities or enterprises located in Metro Manila but relocate to the Special 
Economic Zones within the Central Luzon Investment Corridor may avail of the tax and
11


1 
fiscal incentives available herein upon the following conditions: (i) at least fifty percent
2 
(50%) of products manufactured are exported to other countries, and (ii) they relocate
3 
their employees to the new location and construct decent housing facilities with clean
4 
water and sewerage systems for them; Provided, that, these businesses and industries
5 
that relocate to the Central Luzon Investment Corridor pursuant to this Section may
6 
likewise deduct from their gross revenues for tax purposes, the equivalent of one
7 
hundred percent (100%) of their relocation costs which may include, but not be limited
8 
to, construction of industrial and/or administrative buildings, purchase of equipment and
9 
machinery, construction of private and public infrastructure, housing and recreational
10 
facilities, schools, hospitals and clinics and places of worship for employees and/or the
11 
immediate community, and the like. Provided that, the RIIC may automatically revoke
12 
the license of any Registered Entity who violates any of the RIIC Rules and
13 
Regulations, submits false documents, and declares any false material information in
14 
connection with its application, as determined by the RIIC and upon substantial proof of
15 
such violation.
16 
Sec. 12. One-Stop Shop Center. - The RIIC shall establish a “One-stop Shop”
17 
center for the purpose of facilitating the registration of new enterprises in the Special
18 
Economic Zones. Thus, all appropriate government agencies that are involved in
19 
registering, licensing, or issuing permits to investors shall assign their representatives to
20 
the Zones to attend to Investor’s requirements.
21 
For this purpose, a “One-Stop Shop" Center refers to a center established by the
22 
RIIC where a single common site or location is designated for all concerned agencies in
23 
the registration, licensure, and issuance of permits to investors who wish to be
24 
registered within the Special Economic Zones.
25 
Sec. 13. Eminent Domain. -  The areas comprising the Special Economic Zones
26 
may be expanded or reduced when necessary. For this purpose, the RIIC shall have the
27 
power to acquire, either by purchase, negotiation or condemnation proceedings, any
28 
private lands within or adjacent to the Zones for:
29 
(a) Consolidation of lands for zone development purposes;
30 
(b) Acquisition of right of way to the Zones; and
31 
(c) The protection of watershed areas and natural assets valuable to the
32 
prosperity of the Zones.
33 
If in the establishment of a publicly-owned Special Economic Zone, any person
34 
or group of persons who has been occupying a parcel of land within the Zone has to be
35 
evicted, the RIIC shall provide the person or group of persons concerned with proper
36 
disturbance compensation: Provided that, in the case of displaced agrarian reform
37 
beneficiaries, they shall be entitled to the benefits under the Comprehensive Agrarian
38 
Reform Law, including but not limited to Section 36 of Republic Act No. 3844, in addition
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1 
to a home lot in the relocation site and preferential employment in the project being
2 
undertaken.
3 
Sec. 14. Land Conversion. -  Agricultural lands may be converted for residential,
4 
commercial, industrial and other non-agricultural purposes, subjects to the conditions
5 
set forth under R.A. No. 6657 and other existing laws.
6 
Sec. 15. Presidential Land Grant. -  The provisions of any existing law to the
7 
contrary notwithstanding, the President may, upon the recommendation of the
8 
Department of Environment and Natural Resources (DENR) Secretary, grant by
9 
donation, sale, lease or otherwise, to the RIIC portions of the land of the public domain
10 
as may be necessary for the utilization and expansion of the Bases Conversion
11 
Development Authority (BCDA), the Subic Bay Metropolitan Authority (SBMA), the Clark
12 
Development Corporation (CDC), the Aurora Pacific Economic Zone and Freeport
13 
Authority (APECO) and the Authority of the Freeport Area of Bataan (FAB) and for the
14 
establishment and development of other Special Economic Zones in Central Luzon for
15 
the increased efficiency of its performance and the accomplishment of its purpose which
16 
is to become the “Engine of Growth for Central Luzon and the Philippines.”
17 
Sec. 16. Control and Coordination -  The Bases Conversion Development
18 
Authority (BCDA), the Subic Bay Metropolitan Authority (SBMA), the Clark Development
19 
Corporation (CDC), the Aurora Pacific Economic Zone and Freeport Authority (APECO),
20 
the Authority of the Freeport Area of Bataan (FAB), and other Special Economic Zones
21 
in Central Luzon, which may thereafter be established, shall be under the direct control
22 
and coordination of the RIIC, for purposes of policy direction and coordination.
23 
Sec. 17. Electric Power Supply. -  
Electric companies providing electric power
24 
supply to RllC-registered entities and its established communities shall be given lower
25 
electricity charge rates, as compared to areas outside the jurisdiction of the Special
26 
Economic Zones. Furthermore, the Electric Companies operating within the Special
27 
Economic Zones shall be under the direct supervision of the RIIC.
28 
Sec. 18. Prisoner Reform. -  Convicted prisoners who are willing and able to
29 
work, may be given the opportunity to provide work and industry in secluded areas of
30 
the Special Economic Zones, such as mountains, and shall be entitled to receive a
31 
minimum wage earning, as determined by the Regional Tripartite Wages and
32 
Productivity Board (RTWPB). Provided that, this shall only be applicable to convicted
33 
prisoners who have six (6) years or less of length of imprisonment left in their sentence.
34 
Sec. 19. Budget. -  The amount of Five Hundred Million Pesos (Php
35 
500,000,000.00), for the first three (3) years of its operations, is hereby appropriated for
36 
the organization, operation, and management of the RIIC which shall be included in the
37 
annual General Appropriations Act (GAA). Thereafter, the RIIC may, on its own.
13


1 
maintain its operation and management through its acquired earnings from the first
2 
three (3) years of its operations.
3 
Sec. 20. Exemption from the Salary Standardization Law. -  The salaries and
4 
benefits of employees of the RIIC, as well as those of the Bases Conversion and
5 
Development Authority (BCDA), the Subic Bay Metropolitan Authority (SBMA), the Clark
6 
Development Corporation (CDC), the Aurora Pacific Economic Zone and Freeport
7 
Authority (APECO), and the Authority of the Freeport Area of Bataan (FAB) shall be
8 
fixed by the RIIC and shall be exempt from R.A. No. 6758, as amended, or the Salary
9 
Standardization Law, provided that the difference between the salaries prescribed in the
10 
Salary Standardization Law and the salaries of employees in the BCDA, the SBMA, the
11 
CDC, the APECO and the Authority of FAB as fixed by the RIIC shall be taken from the
12 
earnings of RIIC and not from the National Treasury.
13 
Sec. 21. Legal Counsel. -  Without prejudice to the hiring of an outside counsel,
14 
the Government Corporate Counsel shall be the ex officio legal counsel of RIIC,
15 
including the BCDA, the SBMA, the CDC, the APECO, and the Authority of the FAB. In
16 
the event that highly specialized legal services cannot be provided for by the Office of
17 
the Government Corporate Counsel as may be required, the services of an outside
18 
counsel, whose compensation shall be approved by the Board of Directors, may be
19 
engaged and no further consent or approval of the Office of the Government Corporate
20 
Counsel shall be required.
21 
Sec. 22. Injunctions or Restraining Orders. -  The implementation of the
22 
provisions of this Act is of national interest. Thus, no project, bidding, and undertaking in
23 
implementation of the provisions of this Act shall be restrained or enjoined by an
24 
injunction or restraining order except by the Supreme Court of the Philippines.
25 
Sec. 23. Repealing Clause. -  All laws, decrees, orders, rules and regulations or
26 
other issuances or parts thereof inconsistent with the provisions of this Act, particularly
27 
Republic Acts Nos. 7227, 7916, 9593, 9490, and 9728, as amended are hereby
28 
repealed or modified accordingly.
29 
Sec. 24. Separability Clause. -  If any portion or provision of this Act is declared
30 
unconstitutional, the remainder of this Act or any provision not affected thereby shall
31 
remain in force and effect.
32 
Sec. 25. Effectivity. -  This Act shall take effect after fifteen (15) days following
33 
the completion of its publication either in the Official Gazette or in a newspaper of
34 
general circulation in the Philippines.
35 
Approved,
14