W'
EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
F/rst Regular Session
olt'oe^^cctetavp
SENATE
S. No. 1484
Introduced by Senator Grace Poe RtcciVED bv:
AN ACT
ESTABLISHING AN INFORMATION AND COMMUNICATIONS TECHNOLOGY 
(ICT) HUB IN EVERY LEGISLATIVE DISTRICT OF THE PHILIPPINES AND 
FOR OTHER PURPOSES
Explanatory Note
The archipelagic nature of the Philippines has always been a challenge to our 
government With more than 7,000 islands and various bodies of water surrounding 
these islands, the delivery of government development projects has been hampered. 
However, with the advent of information and communications technology, bringing 
programs and services to the remotest of barangays has now become doable and 
feasible.
The deregulation of the telecommunications industry which began in 1987 
brought tremendous changes in the way we communicate with each other and the 
world. This enabled universal access to information and communications technology 
thereby allowing the development of cyber sen/ices. This allowed the country to 
participate in the Global Offshoring and Outsourcing (Global 0 & 0) Industry. 
Consequently, niche markets emerged in animation, customer contact, back office, 
software development and other cyber services.
In 2015, the Information and Communications Technology (ICT) sector 
generated 1.2 million direct jobs and USD 22 billion in revenues.1 It has also been 
offering countless opportunities for the Philippines.
rr-related industries, BPO/contact centers, and tourism are among the priority 
investment areas in the Investment Priority Plan. With more investment in these 
industries, especially in information and technology, we should be able to create 
more ICT Hubs in every legislative district of the country. Said creation of ICT Hubs 
should allow the country to become more competitive and aggressive towards future 
progress and development.
1 Philippine Daily Inquirer. IT-BPO industry grows as second largest source of income for PH. Retrieved from 
https://business.inquirer.net/209531/bpo-industry-grows-second-largest-source-income-ph#ixzz5v8Y8Jkuh


The Philippines has 238 legislative districts in 81 provinces.2 If this bill 
becomes a law, 238 nodes or conduits can be established to pump prime economic 
activities and promote development in every province. This bill hopes to minimize 
the so-called digital divide and speed up the setting up of a wireless communications 
technology.
With an ICT Hub, each legislative district of the country will be investor- 
friendly and accessible. It can also electronically promote the provinces' nerve 
centers to connect to the various agencies of the national government thereby 
pushing the growth of e-Government locally and nationally. The ICT Hub can also 
link a province to the national government during times of national calamities and 
disasters. More importantly, with the ICT Hub, the archipelagic feature of the 
country can transform gaps and distances into bridges, thereby creating One 
Philippines.
The immense contribution of the ICT sector should be harnessed. Hence, the 
immediate passage of this bill is earnestly requested.
GRACEFOE
2 Philippine Statistics Authority. Population Counts by Legislative District (Based on the 2015 Census of 
Population). Retrieved from http://www.psa.gov.ph/content/population-counts-legislative-district-based-2015- 
census-popuiation


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
of tije »ri’rftarp
SENATE
20 MAY -4
s. No. 1 4R4
RECEIVED BV:
Introduced by Senator Grace Poe
AN ACT
ESTABLISHING AN INFORMATION AND COMMUNICATIONS TECHNOLOGY 
(ICT) HUB IN EVERY LEGISLATIVE DISTRICT OF THE PHILIPPINES AND 
FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines In 
Congress assembled:
1 
Section 1. Title. - This Act shall be known as the "ICTHub Act".
2 
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State:
3 
a.) To recognize the vital role of communication and information in nation-
4 
building. Toward this end, the State shall provide for the creation and
5 
establishment of information Communications Technology Hub, hereinafter
6 
referred to as ICT Hub, in every legislative district of the country;
7 
b.)To promote and encourage investment in the countryside by providing the
8 
infrastructure necessary for the growth of information and communications
9 
technology; and
10 
c.) To ensure the adequate supply of power and electricity in the countryside in
11 
support of the development of information and communications technology,
12 
Sec. 3. Information Communications Technology Plan. - The provincial or city
13 
board, consistent with the medium Term Philippine Development Plan (MTPDP) and
14 
in coordination with the Commission on Information and Communications
15 
Technology (CICT), shall formulate and approve an information Communications
16 
Technology (ICT) Plan for the legislative districts of each province or city, taking into


1 
consideration its comparative advantage, funding mix, private sector involvement,
2 
incentives to locators, local tax incentives, among others.
3 
Sec. 4. Location of ICT Hub. -Pursuant to the provincial or city development
4 
plan, the provincial or city board shall identify the area where the ICT Hub shall be
5 
established: Provided, That, the area/s shall not be in the capital or urban center of
6 
the province: Provided, further that, the area is owned by the provincial or city
7 
government.
8 
For the purpose of this Act, Information Communication Technology (ICT) is
9 
the totality of electronic means to collect, process and present information to end-
10 
users in support of their activities. It consists among others, of computer systems,
11 
office systems and consumer electronics, as well as networked information
12 
infrastructure, the components of which include the telephone system, the internet,
13 
fax machines and computers.
14 
An ICT Hub refers to a center or location where services may be provided
15 
through the use of ICT. Such services may include telecommunication services, data
16 
management, etc.
17 
Sec. 5. Digital Infrastructure Fund. - A Digital Infrastructure Fund, hereinafter
18 
referred to as the Fund, is hereby created and lodged in the CICT. The amount of
19 
Ten Billion Pesos (Phpl0,000,000,000.00), or as much thereof as may be necessary,
20 
is hereby appropriated from the general fund for the purpose of providing seed
21 
capital and as the counterpart of the national government in the establishment of
22 
the ICT Hub in each legislative district of each province or city: Provided, That, the
23 
Fund shall be disbursed in a pro-rata manner based on the following criteria:
24 
Telephone density, degree of digital divide, ICT penetration ratio, presence of new
25 
alternative backbone networks, science and technology parks and industrial estates
26 
with an ICT focus, among others.
27 
Subsequent appropriations shall be annually provided for in the General
28 
Appropriations Act with an annual increment of 25 percent per annum until the
29 
amount of Php 50,000,000,000.00 shall have been reached.
30 
Sec. 6. Tax and Fiscal Incentives. - Any locator in the ICT Hub shall be
31 
entitled to the fiscal and non-fiscal incentives under applicable laws: Provided, That,
32 
they are part of the Global 0 & 0, such as, but not limited to: animation, customer


1 
contact, back office, software development, medical and legal transcription, and
2 
other cyber services: Provided, further That, ninety percent (90%) of its labor force
3 
shall be recruited locally; Provided, Finally, That locators in the top 30 poorest
4 
provinces of the country as identified by the National Economic and Development
5 
Authority (NEDA), shall be given a pioneer status and shall be entitled to such
6 
additional incentives as may be allowed by law.
7 
ICT Hubs already receiving such incentives shall continue to be entitled to
8 
avail of the same.
9 
Sec. 7. Implementing Rules and Regulations. - The Commission on
10 
Information and Communications Technology (CICT), In coordination with the
11 
Departments of Science and Technology (DOST) and Interior and Local Government
12 
(DILG) and other concerned entities, shall formulate the necessary implementing
13 
rules and regulations of this Act.
14 
Sec. 8. Separability Clause. - Any portion or provision of this Act that may be
15 
declared unconstitutional shall not have the effect of nullifying other provisions
16 
hereof, as long as such remaining provisions and still subsist and be given effect in
17 
their entirety.
18 
Sec. 9. Repealing Clause. - All laws, rules and regulations, other issuances or
19 
parts thereof, which are inconsistent with the Act, are hereby repealed or modified
20 
accordingly.
21 
Sec. 10. Effectivlty Clause. - This Act shall take effect fifteen (15) days from
22 
its publication in the Official Gazette or two national newspapers of general
23 
circulation.
Approved,