Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No. 121

Introduced by HONORABLE CHRISTOPHER SHEEN P. GONZALES
HONORABLE MARCELINO C. LIBANAN

EXPLANATORY NOTE

The Philippines is a global leader in coconut production. with the coconut industry
serving as a vital economic driver for many regions, including Eastern Visayas. Eastern Samar,
known for its extensive coconut plantations, significantly contributes to this industry. Rceently, a
bill was proposed to establish a coconut oil milling and refinery plant in Sulat, Eastern Samar,
which promises to bolster the local economy and create employment opportunities. However, to
further enhance the impact of this initiative, it is crucial to establish another coconut oil milling
and refinery plant in Quinapondan, Eastern Samar. This location offers strategic advantages that
will benefit the southern towns of Eastern Samar and Samar provinces, as well as parts of Leyte
province.

Quinapondan is uniquely positioned with a port that provides significant logistical
benefits, making it an ideal location for a coconut oil milling and refinery plant. The presence of
this port enables efficient transportation of raw materials and finished products, not only within
the region but also to national and international markets. This strategic location reduces
transportation costs and time, making the production and distribution process more efficient and
cost-effective. The port’s accessibility to the southern towns of Eastern Samar and Samar
provinces, as well as Leyte, positions Quinapondan as a central hub for the coconut industry in
the region. This will enhance the competitiveness of local producers and ensure smoother
operations, ultimately benefiting the entire value chain.

The establishment of a plant in Quinapondan will complement the one proposed in Sulat
by providing services to a broader area. While Sulat caters to the central and northern parts of
Easter Samar, Quinapondan’s strategic location will specifically serve the southern towns,
making it easier for coconut farmers in these areas to access processing facilities. This reduces
the need for long-distance transportation, thereby lowering costs for farmers and increasing their


profitability. The plant’s proximity to the port further ensures that products can be shipped out
efficiently, improving market access and boosting overall production efficiency.

Further, the establishment of a coconut oil milling and refinery plant in Quinapondan will
serve as a catalyst for economic development in the region. The plant will generate direct
employment opportunities in manufacturing and processing, as well as in related sectors such as
logistics, packaging, and services. The port’s strategic location is likely to attract additional
investments, further driving economic growth in the area. The increased economic activity will
contribute to poverty reduction and significantly improve the standard of living for residents in
the surrounding communities.

With the growing global demand for coconut-based products, the new facility in
Quinapondan will be crucial in enhancing the value-added production capabilities of the region.
The plant will allow for the efficient processing of raw materials close to the source, reducing
waste and promoting sustainable practices. By leveraging the port’s accessibility, the facility can
integrate into global value chains, facilitating the export of high-quality coconut products. This
not only increases the value of local produce but also aligns with national efforts to promote
sustainability and the efficient use of natural resources.

Eastern Samar, like many parts of the Visayas, remains one of the less developed regions
in the Philippines. The development of a new coconut oil milling and refinery plant in
Quinapondan will directly contribute to the region’s development goals. By tapping into the
strategic location of Quinapondan’s port, the region can become a more significant player in the
coconut industry, attracting more investments and fostering broader economic growth. This
initiative will help address regional economic disparities and support the government's efforts to
promote inclusive growth and poverty alleviation in the Visayas.

In view of the foregoing, the establishment of a coconut oil milling and refinery plant in
Quinapondan, Eastern Samar, is not only a strategic economic investment but also a necessary
step toward ensuring the continued growth and resilience of the coconut industry in the region.
The town’s port provides a crucial logistical advantage, making it an ideal location to serve the
southern towns of Eastern Samar and Samar provinces, as well as Leyte province. This project
will boost the local economy, create jobs, enhance the region's role in the national coconut
industry, and contribute to sustainable development practices. It is therefore imperative that this
bill be given favorable consideration to fully hamess the potential of our coconut industry and to
contribute to the broader objectives of regional development and poverty alleviation in the
Visayas.

This was filed in the 19 Congress of the Philippines. The bill is still pending in the
Committee on Agriculture and Food since 04 September 2024.

CHRISTOPH HEN P. GONZALES MARCEL] '. LIBANAN
Representatiye Representative
District of Eastéyn Samar 4Ps Partylist



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

121

House Bill No. *'

Introduced by HONORABLE CHRISTOPHER SHEEN P. GONZALES
HONORABLE MARCELINO C. LIBANAN

AN
ACT ESTABLISHING A COCONUT OIL MILLING AND REFINERY PLANT IN THE
MUNICIPALITY OF QUINAPONDAN, PROVINCE OF EASTERN SAMAR,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES

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

SECTION 1. This Act shall be known as the “South Eastern Samar Coconut Oil Milling and
Refinery Plant Act.”

SECTION 2. Declaration of Policy. It is hereby declared the policy of the State to promote the
development and growth of the coconut industry as a vital component of the national economy.
In line with this policy, the State shall establish a coconut oil milling and refinery plant in the
Municipality of Quinapondan, Eastern Samar to enhance the value-added processing of coconut
products, create employment, and stimulate economic development in the province and in nearby
provinces.

SECTION 3. Establishment of the Coconut Oil Milling and Refinery Plant. There shall be
established, under the supervision of the Philippine Coconut Authority (PCA), a state-of-the-art
coconut oil milling and refinery plant in a strategic location within the Municipality of
Quinapondan in the Province of Eastern Samar. The exact location shall be determined by the
PCA, in consultation with the Local Government Unit of Quinapondan and the Provincial
Government of Eastern Samar, based on the availability of land, proximity to coconut production
areas, and accessibility to transportation infrastructure.


SECTION 4. Objectives. The coconut oil milling and refinery plant shall have the following
objectives:

(a) To process raw coconuts into coconut oil and other high-value coconut-based products for
domestic and international markets;

(b) To provide a stable and profitable market for coconut farmers in Eastern Samar and nearby
provinces, thereby increasing their income and improving their livelihood;

(c) To generate employment opportunities in Eastern Samar and neighboring provinces;

(d) To contribute to the national economy by enhancing the export potential of the country’s
coconut products; and

(e) To promote the sustainable and environmentally friendly use of coconut by-products

SECTION 5. Administration and Management. The Department of Agriculture, through the
Philippine Coconut Authority (PCA) shall oversee the establishment, operation, and management
of the coconut oil milling and refinery plant. The PCA is authorized to enter into public-private
partnerships (PPP), joint ventures, or other cooperative arrangements with private entities, local
government units (LGUs), and other relevant stakeholders to ensure the efficient and effective
operation of the facility.

SECTION 6. Appropriation of Funds. The initial funding for the establishment of the coconut
oil milling and refinery plant shall be charged against the current appropriations of the Philippine
Coconut Authority (PCA) and the Department of Agriculture (DA). Thereafter, the amount
necessary for the continued operation and maintenance of the plant shall be included in the
annual General Appropriations Act (GAA).

SECTION 7, Incentives. The plant, along with its investors and operators, shall be entitled to
tax incentives and other benefits as provided under existing laws, including, but not limited to,
the following:

(a) Income tax holidays for the first five (5) years of operation;

(b) Exemption from customs duties and national taxes on importation of capital equipment, raw
materials, and other inputs necessary for the plant’s operations; and

(©) Priority access to financing programs and credit facilities offered by government financial
institutions.

SECTION 8. Support to Coconut Farmers. The PCA, in coordination with the Department of
Agriculture (DA) and the Department of Trade and Industry (DT1), shall implement programs to
support and capacitate coconut farmers in Eastern Samar and nearby provinces. These programs
shall include technical assistance, training on sustainable fanning practices, and access to
affordable credit and inputs.



SECTION 9, Monitoring and Evaluation. The PCA shall regularly monitor and evaluate the
performance of the coconut oil milling and refinery plant to ensure that it meets its objectives.
The PCA shall submit an annual report to Congress on the plant's operations, including its
economic impact on Eastern Samar and the surrounding areas.

SECTION 10. Implementing Rules and Regulations. Within ninety (90) days from the
effectivity of this Act, the Philippine Coconut Authority (PCA), in consultation with the
Department of Agriculture (DA) and other relevant government agencies, shall promulgate the
necessary rules and regulations to implement the provisions of this Act.

SECTION I1. Separability Clause. If any provision of this Act is declared unconstitutional or
invalid, the other provisions not affected thereby shall remain in full force and effect.

SECTION 12. Repealing Clause. All laws, decrees, executive orders, rules, and regulations, or
parts thereof that are inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.

SECTION 13. Effectivity. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,