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TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
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SENATE 
S. No. 682
25 JUL16 P4 -15
RtCEIVtD 3':.
Introduced by Senator Christopher Lawrence "Bong" T. Go
AN ACT
MODERNIZING THE PHILIPPINE COAST GUARD, CREATING FOR THE 
PURPOSE THE PHILIPPINE COAST GUARD MODERNIZATION TRUST FUND 
AND APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
The Philippines is composed of over 7,100 islands, with a vast and complex 
maritime territory spanning 18,000 kilometers of coastline. For years, the coastal areas 
have been integral to the livelihoods of various communities, serving as transportation 
hubs for trade and commerce. To ensure the protection of the marine environment and 
resources, as well as the safety of those at sea. Republic Act No. 9993 or the "Philippine 
Coast Guard Law of 2009" mandates the Philippine Coast Guard to enforce applicable 
laws within Philippine waters, conduct maritime security operations, and safeguard life 
and property at sea.
In 2011, Executive Order No. 57 was issued to establish the National Coast Watch 
System, which aims to improve coordination and communication among government 
agencies involved in maritime security and protection. These actions reflect the 
government's commitment to prioritize maritime security, especially in the face of 
maritime challenges, threats, and other security concerns.


However, despite the Philippine Coast Guard's responsiveness in fulfilling its duties, 
recent years have seen an increase in maritime accidents and incidents such as ship 
collisions, groundings, and oil spills. In the five-year period from 2015 to 2019, 4,467 
maritime incidents were recorded within Philippine territorial waters, highlighting the 
need for modernization to enhance its capability to respond to these incidents and 
accidents effectively.
The Philippine Coast Guard faces several challenges that hinder its improvement 
and long-term efficiency. The lack of necessary resources such as modern vessels, 
aircraft, and other equipment, as well as trained personnel, poses a significant hindrance 
to its ability to carry out its duties effectively. Outdated equipment and inadequate 
disaster response capabilities further complicate the Coast Guard's role in disaster 
response efforts, which is critical given the Philippines' vulnerability to natural disasters.
Thus, the problems faced by the Philippine Coast Guard are significant and require 
action to be taken, there is a compelling need for the government to pass this bill 
modernizing the Coast Guard. Doing so will ensure that the PCG can better protect the 
country's maritime interests, address outdated equipment, enhance disaster response 
capabilities, and boost the country's economy.
In view of the foregoing, the approval of this measure is earnestly sought
SENATOR CHRISTOPHER
RENCE "BONG" T. GO


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TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE 
S. No. 682
V. ; 
ol i;.. i.
25 JUL16 P4--15
RI'CEl'/ED 3V.
Introduced by Senator Christopher Lawrence "Bong" T. Go
AN ACT
MODERNIZING THE PHILIPPINE COAST GUARD, CREATING FOR THE 
PURPOSE THE PHILIPPINE COAST GUARD MODERNIZATION TRUST FUND 
AND APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled.
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SECTION 1. Tide. - This Act shall be known as the "Philippine Coast Guard
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Modernization Act of2025."
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to 
develop the Philippine Costal Guard (PCG), and ensure the continued protection and 
defense of our maritime border, economy, and environment. Toward this end, the 
Modernization Program under this Act shall develop and enhance the capabilities of the 
PCG to effectively perform under the following functional areas:
a. Maritime Safety;
b. Maritime Search and Rescue;
c. Maritime Security;
d. Maritime Law Enforcement; and
e. Maritime Environment Protection


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SEC. 3. Philippine Coast Guard Modernization Program. - Within a period not 
exceeding ten (10) years after the effectivity of this Act, the PCG shall implement the 
Philippine Coast Guard Modernization Program, hereinafter referred to as the Program. 
The PCG shall continue to perform its powers and discharge its functions as provided in 
Section 3 of Republic Act No. (RA) 9993, also known as "Philippine Coast Guard Law of 
2009." Payments for the amortization of outstanding multi-year contract obligations 
incurred under Section 7 of this Act may however extend beyond this period.
SEC. 4. Objectives of the Modernization Program. - The PCG Modernization 
Program shall be implemented in accordance with the following objectives:
(a) To minimize, if not totally eliminate accidents at sea;
(b) To reduce the search efforts and hasten response time during search and rescue 
operations;
(c) To contribute substantially to securing maritime zones or territorial waters from 
terrorism, lawlessness, and other threats to national security and territory;
(d) To effectively contribute to the enforcement of the Philippine criminal and other 
special laws within the maritime zone or territorial waters; and
(e) To minimize, if not eliminate, pollution in the maritime zones or areas and hasten 
response time to recover split pollutants.
SEC. 5. Components of the Modernization Program. - The PCG Modernization 
Program shall have the following components:
(a) Organization Development. The restructuring and streamlining of the PCG units 
and offices to avoid the overlapping of functions, simplify procedures and improve 
response time.
(b) Human Resources. The professionalization of its human resource with educated, 
motivated, and highly skilled personnel in their respective fields of specialization.
(c) Doctrine of Development. The rationalization system, standards, and procedures


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in the administration of the PCG include the generation, evaluation, consolidation, 
and formalization of doctrines; the conduct of the periodic review and validation 
of doctrines through field application, testing, and exercises; and the 
dissemination of approved doctrines at all levels of command.
(d) Infrastructure Development. The basic and support system required to ensure 
that services are rendered efficiently includes the acquisition and upgrade of basic 
and support facilities for administrative and operational services, and the 
acquisition and upgrade of basic facilities such as aircraft command, control, and 
communication platform which are range and endurance-capable to continuously 
monitor edge of the exclusive economic zone (EEZ) with night navigation 
capability, including remote-controlled drones.
(e) Equipment and Facilities Acquisition and Modernization. The acquisition and 
upgrade of contemporary, modern, and state-of-the-art equipment and system 
to enhance the capabilities of the PCG in the performance of its mandate which 
includes the following:
(1) 
Upgrade the vessel to a mission-specific level with a high degree of flexibility 
to perform other functional area operations. The vessel must be well- 
maintained for full operational status at least three hundred (300) days a 
year and must be interfaced with the latest cutting-edge technology for ease 
of operation.
(2) 
Remotely operated submersibles for deep-sea search, retrieval, and 
monitoring operations.
(3) 
Weapons that are marine-environment resistant and designed primarily to 
disable hostile personnel and equipment.
(4) 
K-9 units which are capable of detecting bombs, drugs, toxic substances, 
and search and rescue (SAR) operations, among others;
(5) 
Uninterruptible PCG internal communications seamlessly interoperable with 
other agencies as well as communications with commercial vessels 
operating within the Philippine maritime zones or territorial waters;


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(6) 
Training equipment capable of simulating foreseeable emergencies or 
hostile situations;
(7) 
Aids to navigation that are consistent with International Association of 
Lighthouse Authorities standards;
(8) 
Accurate and real-time monitoring and detection systems; and
(9) 
Laboratories with technologically current equipment.
SEC. 6. Submission of the Modernization Program. - Within ninety (90) days from 
the effectivity of this Act, the PCG Commandant shall, in accordance with the Secretaries 
of The DOTr and Department of Budget and Management (DBM), submit the PCG 
Modernization Program to Congress. The Program shall indicate the following:
(a) The size and shape of the PCG in terms of personnel, equipment, and facilities 
during the various phases of the Program.
(b) The modernization project under each phase including the major weapon and 
non-weapon equipment and technology acquisition, infrastructure 
construction or improvement to be made, and the particular objectives and 
components under Section 4 and 5 respectively, of this Act to which such 
intended acquisition, constructions or improvements belongs; and
(c) The priorities, schedules as well as the estimated average cost for each 
modernization component project or upgrading to be undertaken. In the event 
Congress approves the PCG Modernization Program, the joint resolution shall be 
the basis for subsequent executive and legislative actions to implement the 
program until its completion and full realization.
SEC. 7. Multi-year Contracts. - The Secretary of the DOTr may, pursuant to the 
program, projects, and appropriations approved by Congress and subject to the approval 
by the President, enter into multi-year contracts and other agreements or arrangements 
in accordance with the provisions of existing laws and regulations including those of the


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Commission on Audit and under such terms and conditions most favorable to the 
government.
The Congress shall, upon certification by the President, make the corresponding 
appropriation for the ensuing fiscal year in payment for multi-year contracts: Provided, 
that Congress shall appropriate only such funds as may be necessary to pay any unpaid 
amount when the appropriated funds mentioned in Section 13 of this Act are not sufficient 
or available to meet the payment, in full or in part.
The Secretary of the DOTr shall submit copies of these multi-year contracts and 
other agreements or arrangements to Congress.
SEC. 8. Self-reliance Program. - In implementing the Program, the PCG shall, as 
far as practicable, give preference to Filipino contractors and suppliers and secondly to 
foreign contractors or suppliers, willing and able to locate a substantial portion of, if not 
the entire, production process of the terms involve within the Philippines.
In order to generate local employment opportunities, and enhance technology 
transfer to the Philippines, the Secretary of the DOTr shall, as far as feasible, incorporate 
in each contract or agreement special foreign exchange reduction schemes such as 
countertrade, in country manufacture, co-production, or other innovative arrangements 
or combination thereof.
The PCG shall likewise ensure that in negotiating all applicable contracts or 
agreements, provisions are incorporated respecting the transfer to the PCG of the 
principal technology involved as well as the training of the PCG personnel to operate and 
maintain such equipment and technology.
SEC. 9. Philippine Coast Guard Modernization Trust Fund. - There is hereby created 
a trust fund, to be known as the Philippine Coast Guard Modernization Trust Fund to be 
administered by the Secretary of the DOTr in accordance with existing rules and


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regulations. The trust fund shall be used exclusively for the PCG Modernization Program 
excluding salaries and allowances. The trust fund shall be funded out of the following:
(a) Appropriation for the Philippine Coast Guard Modernization Program
(b) The proceeds from the sale, lease, or joint development of coast guard properties 
and lighthouse reservations, as may be authorized by the Congress, including such 
immovable and other facilities as may be found therein, not covered by the Bases 
Conversion Development Authority, as provided for in Republic Act No. (RA) 7227, 
otherwise known as the Bases Conversion and Development Act of 1992;
(c) Shares of the PCG from the proceeds of the sale of the coast guard properties 
provided for under the Bases Conversion and Development Act of 1992;
(d) The proceeds from the disposal of excess or uneconomically repairable equipment 
and other movable properties in the PCG arsenal;
(e) Funds from budgetary surplus, if any, as may be authorized by Congress subject 
to the provisions of Section 13 of this Act;
(0 Dues, fines, and penalties collected by the PCG in the exercise of its functions; and
(g) All interest income of the trust fund.
SEC. 10. Equipment Acquisition Per Function Area. - In order to further specialize 
PCG capabilities, equipment acquisition shall be initiated within the respective functional 
areas as mentioned in Section 2 of this Act but integrated into the Program to allow inter­
operability and ensure a greater degree of reliability.
SEC. 11. Contract Negotiation. - The procurement process shall be governed in 
accordance with Republic Act No. (RA) 9184, otherwise known as the "Government 
Procurement Reform Act", and its revised implementing rules and regulations. The 
procurement process shall be exercised by the PCG General Headquarters unless 
delegated to the next lower-level management by the PCG Commandant.


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SEC. 12. Progress Report. -The Secretary of the DOTr shall submit to the President 
and Congress, an annual report on the status of the Philippine Coast Guard Modernization 
Act Trust Fund, as provided for in Section 9 of this Act, not later than the end of the first 
quarter of the succeeding year.
The Commandant of the PCG shall also submit to the President and Congress, and 
the Secretary of the DOTr, an annual status report containing the process of the 
implementation of the modernization program under this Act including the PCG 
modernization activities implemented prior to the approval of this Act not later than the 
end of the first quarter of the succeeding year.
SEC. 13. Appropriations. - The amount necessary to implement the provisions of 
this Act shall be sourced from the PCG Modernization Trust Fund as provided in Section 
9 of this Act. In addition, the annual appropriations for the PCG Modernization Program 
shall include the amount necessary to support the funding requirements for all 
modernization projects submitted to Congress. The funds to be appropriated to
implement the provisions of this Act shall be included in the General Appropriations Act 
under the DOTr.
SEC. 14. Separability Clause- If any provision of this Act is declared unconstitutional 
or invalid, the remainder of this Act or any provisions not affected thereby shall remain 
in full force and effect.
SEC. 15. Repealing Clause- All laws, executive orders, rules, and regulations 
inconsistent with or contrary to this Act, are hereby repealed or amended accordingly.


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SEC. 16. Effectivity- This Act shall take effect fifteen (15) days after its publication
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in the Official Gazette or a newspaper of general circulation.
Approved,