Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Sixteenth Congress
Second Regular Session

5564

House Bill No.

Introduced by AKBAYAN Representatives
Ibarra “Barry” M. Gutierrez [II and Walden F. Bello

SEER
EXPLANATORY NOTE

In 1992, Republic Act No, 7227 otherwise known as the “Bases Conversion and Development
Act? was enacted in order to respond to the urgent need to preserve, convert and put to
productive use the facilities of former military bases of the United States in the

Philippines, which were all threatened to be abandoned and put to waste because of the

termination of the Philippine-US agreement on the establishment of such military bases

in Philippine territory.

‘Two decades after the enactment of Republic Act No. 7227, the Subic Bay Freeport
Zone has seen a successful conversion of its military facilities co commercial, industrial

and tourism establishments.

“full” conversion that would not only have opened the
area for private investors but would have also opened employment opportunities to the

people of Zambales, Bataan and Olongapo City.

Conversion should, above all, be responsive to the call for participatory, synergistic and
inclusive development accommodating of the inputs from the sutounding cities and
municipalities. Conversion should have the direct effect of opening employment
opportunities and starting the cycle of sustainable living for the residents in Zambales,
Bataan and Olongapo City. Conversion should meet global challenges based on inclusive

and shared development.


‘This bill is the result of the shared vision for development of the people of Zambales,

Bataan and Olongapo for the advancement and reform of the Subic Bay Freeport Zone.

Undeniably, the desirable effects of conversion should not be limited to increased private

investment in the Freeport Zone.

In view of the foregoing, immediate approval of this measure is eamestly sought.

IBARRA ee GUYIERREZ IL Ww. F, BELLO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Sixteenth Congress
Second Regular Session

5564

House Bill No.

Introduced by AKBAYAN Representatives
Ibarra “Barry” M. Gutierrez II] and Walden F, Bello

AN ACT
FURTHER AMENDING REPUBLIC ACT NO. 7227
OTHERWISE KNOWN AS THE “BASES CONVERSION AND DEVELOPMENT
ACT OF 1992,” REMOVING THE SUBIC BAY FREEPORT FROM THE.
SUPERVISION OF THE BASES CONVERSION AND DEVELOPMENT
AUTHORITY, INTRODUCING REFORMS, APPROPRIATING FUNDS
THREFOR, AND FOR OTHER PURPOSES

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

SECTION 1. Short tite —This Act shall be known as the “Subic Bay Economic Development Act of
2015."

SECTION 2. Declaration of policies.—It is hereby declared a policy of the State to accelerate
the inclusive and synexgistic development of the municipalities and cities within the Subic Bay
Economic Development Area in partnership with the Subic Bay Freeport Zone (“SBFZ”) and

the Subic Bay Economic Development Authority.

Tt is likes

ise declared the policy of the State to enhance and expand the development of the
Subic Bay Freeport Zone or Subic Special Economic Zone so that the benefits to be derived
from the SBFZ shall result to the promotion and social development of the Subic Bay Economic
Region.


1 SECTION 3. Amendatory provisions —

N

3 (a) Section 13 of Republic Act No. 7227 otherwise known as the “Bases Conversion and
4

Development Act of 1992” is amended to read as follows:

6 “Section 13. The Subie Bay Economic Dewwlopment
7 Motrapotieen Authority. —
8
9 “a, Creation of the Subic Bay Economic Dewlopment
10 Meémpotiien—luthority—The supervisory an
i management functions of A-bedy-eorperate-to—be
12 Kknown-as-the Subic Bay Metropolitan Authority is
13 hereby transferred to the Subic Bay Developme
14 Authority-erested-as-an-operating-and-implementing
15 arprolthe Conversion Authority
16
17 Piette President shall effect _the
18 reorganization of SBMA into the SBEDA within
19 thizty GO) days 's after approval of this Act.
20
“Th SBEDA shall be corporate body with a term
of fi from its organization: Provided,
Congress, by joint resolution, may extend or dissolve
the SBEDA whenever i rpose for

its_creation hasbeen be

extended,

“The SBEDA shall establish its principal office within
Subic Bay Freeport Z

“b. Powers and functions of the Subic Bay Beonomic
Development Metropotiter—Autbority—Uhe Subic Bay
Economic Development Metropelitan—Authority,

otherwise known as the Subic Authority, shall have
the following powers and functions:

rales

“1, To hold-operste, administer and manage sad
thew clea te ahape tepeaeretsiep tet etre src
container-port,-oil-storige-and-refuelingfaeility-and
iy PR he si 1
with-the policies set-forth-in- Section 12 of this Aetthe
former military reservation of the Uniced States Naval
Facility in Subic Bay also known as the Subic Bay
Freeport Zone, unless otherwise provided by other
specific laws;

“2. ‘To draft, approve and regularly update a Subic
Freeport Economic Development, Framework Plan



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that shall provide the vision of development, promote
and encourage investments with active participation
of Private-Public Partnerships in transforming the
Subic Bay Economic Development Area into a highly
productive economic zone that shall_compete with
global economic markets and attract local experts and
overseas Filipino workers to provide their_talents,
skills and expertise to industries and establishments
within the area, including the establishment_and
supervision of satellite SBFZ.eco-zones within
participating local_government unit localities-aceepe

enterprise; ~subjeet-only-to-such-rulewand-tegulations

he—pel q
eee alieee adien toe the-netionalination
requirements proerded faran theConstitation:

“3. To adops pprove the budget for the Annual
‘vironment nt Manas Plan thar shall_be
sul yM Cente:

SBEDA~thuough she —Board-Committee on
Re ee ace a
‘the—establishment—op nant of
utiliies-other serv n ave ivthe Suble
Sp eonomie-Zone—ineluching shipping and
related—business,—stevedoring—and—port—terminal
semicerorconcemionyeincidental thereto anebairport
eperations-in-coordination with the-Givil Aeronantios
charges-and-other-ptiees-therefore;

“4,To prepare, adopt and implement a comprehensive
uveninnent_pyscnaties aul _acentn es pli

consultation with and cooperation of

local government units and consistent with ecological
nd__ environmental _ standards to. re :
economic, social_and environmentally sustainable
development of the Subic Bay — Economic
Development Area + uns Heatses
, Loan #-through-contriet,
Franchise,license—peemits—bulle-pureh r
p * nd-buikd-opers r
i ne-eeeiuined ti A
ins h—loeat ct
apptop: Be d-and-i
wy -Wisk-Aalaningpclieableslewie ths .

“5. ‘To serve as the regulatory body that shall promote
stment in the Subic Bay Freeport Zone and_its



arena

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and municipalities, and provide assistance, support
and incentives authorized under the laws to locators
and business enterprises within the said investment
area nie vest se poeiesnhrenateny
lease sell disp

st be aed irony de ad

asap in
ep tod publ -
public parpese;

“6. Yo develop, improve, maintain and provide real

estate sites, infrastructures, and related municipal

services for the purposes of encouraging efficiency,

productivity and_provi scessary locators anc
lessors, ithin the Freeport areas under its
management, administration and control Whin-the
limitetion-provided-by ww to-tai

ty ~funds—from—loea
re an
notes-and-other-sceurities- forth

ps
he-sume-by- guarantee, pledge, mertgnge;deed
of-tust-erassignment-o s-hele-by-the
Subie—Authorityforthe~purpose—of financing
projects—and—programs—vithin—the—framework—and
Himitations-of this Act;

“7. To promote the private commercial operations of
the ports and port related bus pins under Private:

services to shippers, shipping lines and other
maritime industry related entitis vever, SBEDA
shall_rei fi nat

rates, fares, charpes and other prices therefore-operste
dircetly —or—inditeet>—or-—license—toutismnerelated
activities subject to prioritierand-standards-serby-the
Subic—Authoriginchiding. gamer andamusements;
exeept-horse-rieingy-deg-taeing-and-casine-gembling,

swhich-shall-continue-to-heHeensed-by-the Philippine
A ct-Gamning Corp PAGCOR
. nemenlt % sion Authenityt
ag et cessecethefesented
setional-patk;

“8, To supervise the implementation or serve as the
implementing agent of laws and regulations otherwise
vested in other government departments, agencies or
local_ government units: Provided, that implementing
agreements are agreed upon with the concerned
agencies-authorizethe-establishment-of approptiate


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“9, To promote the implementation of development
projects and investments including Public-Private
Partnerships needed for the sustainable development
‘of the SBED. For this purpose, the Subic _Ba
Economic Development Area shall _include_the
municipalities of Subic, San Marcelino, Castillejos and
San_Antonio_in Zambales, the_municipalities_of
Morong, Dinalupihan nosa in Bataan,

the City of Olongapo-proteer-maintain-and-develop
‘he-vingin-forests-within-the-baselands-whieh-will-be

Pp aa i os

peenea -log-ban,-and—fer-thie-puepese,th
‘i —segulatio es et:
Bavicined 1 Nakina eay eae cues
povernment-agenciesditeetly-involved-in-the-above
functions —shall—be—implemented—by—the—Sek
Authority

“10. To adopt a_policy of industrial peace, harmony
and__productivity within the SBFZ_giving due

consideration 10 Article 211 of the Labor Code of the
Philippines inorder to establish _a_business and
sommarci sumosphs ere__which simultaneously
sacar inves ve pent ae hance:
sand ors 16g
ot genta agen pe ener
js-for-envitonmental-pollution-eonteol
areas-wi aracousenerurin
sll-bodies-of-water-nnd-to-enforee—the-sameFot
which—purpose-the-Sebie—Authority-shall-ereate—an.
Heology Gentes; and

“11, To promote best practices of family-orie:
taal ori
sti efines abli 9
TE AEERAEEL and U2sbeaeseleenieh- potent
1; sor ineiclentalto—the—p
granted: h ii ihe
“c. Board of Director.—The powers of the Subie
Authority —Subic Bay _ Economic Development
Authority shall be vested in and exercised by a Board
of Directors, hereinafter referred to as the Board,

which shall be composed of fifteen-(45)seventeen (17)

members, to wit:

“1. Representatives of each of the following eight (8)
local government units dhaceonen-to-joit-the Subic

Pr ‘namely: Subic, San



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Marcelino, Castillejos, San Antonio of Zambale:
Morong, Dinalupihan, and Hermosa of Bataan, and

‘the City of Olongapo that form and consist the Subic

Bay Economic Development Area;
“2, Hwer{2)Four (4) representatives from the National

Government namely: the Secretary of the Department
of Trade and Industry, who shall sit as Chairperson,

and designated undersecretaries of the Department of
‘Tourism, partment _of ‘Transportation and

Communication, and Department of Environment
and Natural Resources;

“3, Five (5) representatives, one cach from the
following private sectors, namely. eoming-from-the
pres nsypubl ership rep
facility naval supply-deporand-naval-sit-stetionSBEZ,
lomestic investors or locators, SBFZ, foreign
investors_or locators, Ayta indigenous peoples from

the SBEDA and _federated organized residents or
homeowners inside the SBFZ; and
“4, The remaining bakinee-to-complete-Administrator

of SBEDA. shall sit as a non-voting member of the
Board of Directors _shtl—be—eomposed—of
presentatives—fromthe- business and inv
sects

Pvedgccnrinnsiccantietien ont r_esc-offiaio members

wemnmient units and all other menubers of the Board
shall be-sppointed-by-theBresident-to serve for a
term of six- se ise Cer unless sooner-temoved

for-enoe-eneope fortes

ho shall serve-for-a Eehtee

es poeescoheule extended by election _or
reappointment by their respective local government
nits, the replacement shall serve only the unexpired

portion of the term. In case of removal for cause, the

replacement shall serve only the uaexpited portion of
the term,

“Except for the representative of the foreign locators,

no person shall be appointed as a member of the
Board unless he is a Filipino citizen, of good moral
character, and of recognized competence in relevant
fields including, but not limited to economics,
management, international relations, law ot



neers

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engineering or their equivalent with at least ten (10)
years_televant_working experience in the field of
management and public administration. ‘The

representatives from the locators, workers and
residents shall_be determined via an equitable
selection process formulated by the concerned
stakeholders and approved by the SBEDA Board.
‘The Ayta representative shall be selected among all
legitimate Ayta_people coming from the indigenous

peoples within the Subic Bay _ Economic
Development Area, and following — procedures
approved by the National Commission _ for
Indigenous Peoples, Preference in the appointment of
the members of the Board shall be given to residents
those who regularly reside in the Subic Bay Economic
Development Area within —the—Sbie—Special
eonomieZone.

a sa Skala ll alg
body of the Subic Authority and shall perform the
following functions:

nal_stru

Subic Bay Economic Development Authority, define
the duties _and responsibilities of all officials and
employees and adopt a compensation benefit scheme
consistent with the provisions of the laws on GOCCs;

Appoint the Administiisoro Chief Executive
‘as_well_as_all ficals-down to crea Ise and

of Civil Service Laws, rules and regulations, except
those whose employment are co-terminus with the
members of the Board;

(Approve the annual and supplemental budgers of
the Subic Authority submitted by the Administrator;

(q) Submit an annual report of the operation of the
Subic Authority to the President of the Philippin.
President of the Senate and Speaker of the House of

Representatives: and,

() Carry out the purposes of the Subic Bay
Economic Development Authority.


All procedural matters in the conduct of the Board

be prescribed in its internal rules,

“Members of the Board shall receive a per diem in

accordance with the prevailing _ guidelines
promulgated by the Governance Commission for

wr tive thousand —penos
€25,000:00)—for—every—board—meetings—Provided,
however, that the per diem collected per month does
not exceed the equivalent of four (4) meetingst

spine PER 1
p ; 2 f

tae + dy
Presidents provieled tially r p
Aant-ebil aokh ewe fe
echo mererse
“A. Chairperion-Chairnnan/-Administratorof. the Board —
The sctlipere ine cela EDA shall be the
Secretary of p 2

a dbsiaited Undaénctare hoss nas such sl
be_co-ten mia eth the incaabent Seetehac The
Chairperson shall preside over the meetings and
affairs of the Board of Directors in accordance with
the principles and practices of good corporate
management. President-shall-eppoint-a-professional
managerasadministrator-of the SubieAuthotigg wich
a-compernsation— to -be-determined bythe Board
subjeet-to-the-approval-of-the-Seeretary-of Budget;
who-shall- be-the ec olticio chatrmae ofthe Beatesnd
who-shall-servets-the-chief-exeentive-offieer-ofthe
Bubie uthorinn prowtded: hrm euer that tor the tse
year-of-its-eperations-from-the-effeetivity-of this et;
hne-enayoreFthe-Cierol longane-chall-be-eppeinted
as—the—chairman—and-ehiefexeentive-officer—of-
Subie-Authority:

“e. Adwinistrator and Chief Executive Officer —'The
SBEDA Board shall appoint an Administrator with
the tank of department undersecretary. ‘The
Administrator, who shall_be the Chief Executive
Officer of the SBEDA, shall be at least forty (40)
years_of age, of proven probity and integrity, anda
degree holder in any of the following fields:
economics, business, public administration, law,

management or their equivalent, and with at least ten
10) years relevant working experience preferabl

the_ficld of management or_public_administration.
Unless otherwise removed for cause, the
Administrator shall have a secure tenure of six (6)
years, renewable for the same secure tenure as many.
times as the SBEDA Board may so deci



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‘The Administrator shall implement and be the overall
coordinator of the policies, plans and programs of the

SBEDA. As such, he shall provide overall supervision
cover, and general direction to, the development _and
operations of the SBEDA and SBFZ, He shall
determine the structure, the staffing pattern and

personnel complement of the SBEDA and §
subject to the approval of the SBEDA Board. In

addition, he shall have the following specific powers
and responsibilitie

(1) To safeguard all the lands, buildings, records,

monies, credits and other properties and rights of the
SBEDA and SBEZ;

Q)To-ensuse that all revenues of the SBEDA and
SBEZ are collected and applied i with ies

SBEDA Board approved budgets
Q)_Lo ensure that all employees and officers of the

@)_To_provide information and_recommend such
measures to the Board, as he shall deem advantageous
tthe SBLDA and he evenmentl- al
iconomic Developmen TA

‘To submit_to_the Board, the ongoing a
proposed _ pri Set adh andl Huan pean
annual_budget of receipts, and expenditures of the
SBEDA;

ae rs_and si in_its. a

all bor ct
agresments and obligations made in accordance with

(D)_Lo acquire jurisdiction, as the Administrator may
deem proper, over tests, and claims of
residents, locators or enterprises inthe SBEZ,
concerning administrative matters;

‘To implement, discharge or administer the grant,

approval, refusal, amendment or termination of

franchises, licenses, permits, ntracts, and



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agreements in accordance with the policies set by the
SB Board;

2) To take such emeryency measures _as_may_be
necessary to avoid fires, floods and mitigate the
effects_of storms and other_natural_or public.

calamities:

(40) ‘Yo prepare and draft plans for the physical an
economic development_of the SBFZ, including
zoning and land subdivision, and draft such rules and
regulations which shall be submitted to the Board for
i's approval; and

1) ‘To perform such ot

other powers as may be preseril ths Boa su

mplement, discharge or

rules and regulations set by the ‘SBEDA.

ca SBEDA officers and employees shall not
edits a-inslincelyin_pastisan acti 79
aks par election, except to vore. In th
that an-offcer-or employee pt to nun Gor public
uffige, she scmployment wf such officer_or emploses
of the SBEDA shall be considered te ed _upon
a alin GF te Official Candida

“Every member of the Board_of the SBEDA, the
dministrator af er sei c

ag
Development Authority shall_have an authorized
capital—stoek of -ewenty—billion—Philippine—pesos
divided—inte—twenty—thousand—ne-par—shares—fully

Cupitalization—Vhe Subic Bay Economic

she One_Hundred Billion
Philippine_Pesos (PhP 100,000,000,000.00)_which
shall he subscribed by the Republic of the Philippines
and _the provinces of Zambales and Bataan and the
City of Olongapo, An initial _ supplementary

development capital in the amount of One Billion
i ¢_Pesos {PhP _1,000,000,000.00)_ i

authorized to be appropriated out of any funds in the

National ‘reasury and credited as fully paid shares
owned by the national government,”

“4.-All-lands—embesced;—covered—and—defined—in,

42 hereof if ?

iP tsa ‘pon prop y

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(b) A new provision after Section 13, denominated as “Section 13-A” is hereby added:

Diinial Aamegite caty tue da Seer

“(d) To contract I
comme nds, in any local_or
avertible fore ren y
jancial institutions, foreign gov entities, and
local or foreign private commercial banks or similar
institutions under terms and condition:
hw, tions:

‘(©) ‘Vo execute any deed of guarantee, mortgage,
pledge, trust or assignment of any property for the
purpose of financing the programs and_ projects
deemed vital for the early attainment of its goals and
objectives, subject to the provisions of Article VIL

Ww


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Section 20, and Article XII, Seetion 2, paragraphs (4)
and (5) of the 1987 Philippine Constitution;

“(0 ‘To administer by contract, franchise or other
agreement with qualified investors _or_professional
enterprises the operation, management _and
development of the Subic Bay International Airport,

the container port, sea port, oil refuelling
facilities withi Subic Bay Freeport Zone as a fi
ket in lance with the ss set forth by

laws _or by guidance of the President_of the

ndards,

racing, cockfighting, and casino gambling subject ro
license_by the Philippine Amusement and Gaming
Corporation (PAGCOR);

authorize the est 1d development
‘of environmentally improved residential areas, and
institutional sites_and services for government
services, education and medical facilities, as well as
recreational public_parks, and for this purpose
prepare. update and implement an environmentally

bs


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sound zoning plan in consultation with concerned

stakeholders:

‘To protect, maintain and develop laimed
national park and protected forests within the Subic
Bay Economic Development Arca, and for this
purpose, coordinate and cooperate with _ the
Department of Environmental —_and__Natural
Resources, the National Museum of the Philippines,
the National Commission _en_Indigenous_Peoples,
National Commission on Culture and the Arts, and
atl government agencies for — th r

ET ORT regulations for the
‘conservation of natural resources, cultural, historical,
and heritage sites and materials,

OO rete ane dnplernea sneaaes an
standards for environmental conservation and
pollution control of all areas within SBPZ, including.
but not limited to all forests, grasslands, watersheds
wetlands, rivers and Bay waters, For this purpose, the
Board_of the Subic Bay Economic Development,
Authority shall support the indepenctent operation of
the Ecology Management Center in accordance with
the SANE “maronmental Compliance

ay

Ui ulti-partite M ting ‘Te

“(n) To reclaim, undertake or authorize reclamation
brolects as.it.onay deem necessary in areas adiacent or
contiguous Conversi¢ Auris tans

dete Section 7-of ‘Act No. 7227
cither be itself or as part of. at raoaared PL
Private Parmership infrastructure projects or other

projects provided. appetite sci cepa
and cnvironmental permits are obtain

(0 2 ‘To authorize the establishment of anpsoprite
_and_medical_institutions_that_shal

recognized as special social enterprises different from

otdinary business, and shall_be provided with

accessible locations conducive to learning and health;

“(p)To_receive donations, grants, bequests _and
assistance of all_kinds from local_and _forcign
we nts and private sectors and utilize the same;

S(q) Vo invest its funds and other a

SBFZ and irs satellite eco-zon
Republic Act No. 7227;

ets_within the

sd in

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S(t) ‘To promulgate-and implement all necessary rules

“(s)_ ‘To perform si other_powers as may be

necessary and proper to carry out the purposes of this
Act.”

(©) Section 14 of Republic Act No. 7227 is hereby amended to read as follows

“Section 14, Agreement with otber agencies Rekationsbip-with
Conversion-bathonity ancl hosel spmncnt tits.

“SBEDA shall enter into agreements of c operation
sith the_Depacent_ot Natoma Defies

Jovernmes
Milppns- Navan Pole fe Dxpunantof
of Labor and Employ athe en

agencies as_necessary for the proper
implementation of programs and rules.

{8} Fhe—provisions—of—existing—laws;—raley—and
teguletions-to-the-eonteny- notwithstanding, the Subie
Authority-shall_exereise-administentive-powers;-rule-
smaking—and-disbarsement-of-funds—overthe-Subie
Special—Beonomie—Zone—in—contormity—with—the
oversight fanetion-of the Conversion-Authority.

“fb)-Hr-ease-of-confliet-between-the Subie—Authority
and-theJoes!governmentunits-eoncemed-on-mattors
than-defense-ane-security,-the-deeision-of the Subie

(@) Bight new provisions after Section 14 denominated as “Seetion 14-4,” “Section 14-3.” “Seetion

hereby added:

“Section 14-D,? “Section 14-B,

“Section 14. Supervision —The SBEDA or Subic
Authority shall_be under the direct control_and

supervision of the Office of the President for
purposes of policy direction and coordination,”

“Seotion 14-F,"Section 14-G,” and “Section 14-1" axe

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ou ken

ce)

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“ Section 14-B. Transfer of Habilites "The President shall
transfer forthwith the properties and assets under the
name of the Subic Bay Metropolitan Authority to the
Subic Bay Economic Development Authority. The
financial liabilities incurred by the SBMA from
international funding agencies for the improvement
of facilities shall _be transferred to the national
government.”

“ Section 14-C, Funding scbeme-—The capital of the Subic
Authority may come from securitization or other

means of fund raising guaranteed with unencumbere
land of assets and/or existing leasehold contracts, but
not_including those lands thar_are covered by
Certificates of Ancestral Domain ‘Titles (CAD'TS)
issued in favor of Ayta communities.”

“Section 14-D, Incentives in Subic Bay Freeport Zone
Subic Bay Heonomic Development Area—The Subic
Special Hconomic Zone referred to in Section 12 of
RA 7227 is herein called the Subic Bay Freeport Zone
consisting of the territory of the former US Navi
Base_whose meets and bounds are defined _by
Proclamation 532, 9.1995 of the Office of the
Bretiden

‘The _Subic_ Bay Economic Development _Area_is

hereby defined to consist of the City of Olongapo,

the municipalities of Subic, San Marcelino, Castillejos
; f the Ty oof 3

the municipalities of _Morong, Hermosa _an

Dinalupihan of the Province of Bataan. Sarellite Eco:

zones are clearly defined extension sites of SBEZ.

Jconomic Region shall include all_ the
the provinces of Zambales and Bataan and the City of
Olongapo.

‘The above mentioned Subic Bay Freeport Zone or
SBEZ shall be subject to the following policies:

(a) Within the framework of the Constitution, the
SBEZ_shall_be developed into_an_environmentally
sustainable industrial, commercial, financial _and
tourism Freeport that_shall_attract, promot

encourage the location of productive foreign
investments_and_export-oriented ess. projects
especially those that have potential for synergistic
business partnerships with local enterprises located
within the Subic Bay Economic Development Area
and_generate_employment opportunities for local

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en
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killed wor returning Overseas Filipino
Workers:

(b) The Subic Bay Freeport Zone shall be operated

and managed as a separate customs territory ensuring

free flow or movement of goods and capital within,
into and exported out of the Subic Bay Freeport
Zone, as well as provide incentives such as tax and
luty-free_importati .w_materials, capital
squipment.

lo 01 or removal of goods fro:
territory of S “reeport Zo

(1) One percent (1%) for SBEDA general fund,
(2) Qne half percent _(0.5%) _for Subic _Bay

Environmental Cuenta Fund,

3) One half (0.5%) for Subic Bay
lnfisdimictane Develofenent Fund af

(4) Two 1 (2%) for distribution to the local

rament units consisting the SBEDA, namely:

y of Olos and the municipalities of

Subic, San Antonio, San Marcelino and Castillejos
of the Province of Zambales: and the

municipalities of _Morong, Hermosa and
Dinalupihan of the Province of Bataan, on the

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of population 950%), land area (25%)

equal sharing (25%).

In_case_of conflict between national and local laws
with respect to tax exemption privileges in the Subic
Bay Freeport Zone, the same shall be resolved in
favor of the latter,

(@.No exchange control policy shall be applied and
free markets for foreign exchange, gold, securities and
futures shall_be allowed and maintained in the Subic

Bay Freeport Zone;

‘The Central bank, through the Monetary Soar,
shall supervs in eal the operations of

and other finansial_instirations within the Subic re
Exeeport Zo1

(Q Banking and finance shall be liberalized with the
etablidhment of foreign currency-depaat ory_units of

commercial bank

foreign banks with minimum Centra rears lation;

(@) Any investor within the Subic Bay Freeport Zone

whose_continuing investment shall not_be less than

comunity nhl chai al skills achat ualified
Filipino worker within the ae Bay Freeport Zone
possesses. ‘he SSWV may be renewed every two (2
years provided that the foreign worker continues to
be employed by the same company. In the event that
a worker with equal _or_better
qualifications applies for the same job, preferential
employment_opportunity_should_be_given_to_the
Filipino worker, unless the position is declared by the
management to be confidential or a matter of trust.
‘The names of aliens granted petmanent_residence
status, SSIV_or SSWV by the Subic Bay Economic
Development Authority shall_be reported to_the
Bureau of Immigration and Deportation within thirty
(G) days after issuance thereof,

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(h) Upon the request of, and agreement with any local

government unit that_is_part_of the Subic Bay
Economic Development Area, the _ Subic
Economic Develo prity_may establish
SBFZ. satellite eco-zones or sites which shall entide
business locarors in these satellite eco-zones_special
privileges as follows:

Excepe for real_property taxes on land owned by
private developers, no taxes, local and national, shall
be_imposed on business establishments_operating
within the satellite eco-zone authorized by SBEDA,
In licu thereof, five percent (5%) of the gross income
camed by all business enterpy h

eco-zone shall be paid and remitted as follows

(1) Two__percent (2%) tothe National
Government;

2 Sue peer STEED.

(3) Two percent (2%) _ shall
iy hes lsc

(i) The defense of the territorial waters of the Subic
Bay shall be the responsibility of the Philippine Coast
7 Police’ fang feniain’ tobe undies the

Polic
@_the SBEDA shall build and construct a secure

perimeter fence surrounding the Freeport. The
SBEDA and the LGU concerned shall c arate to
maintain_and secure the said perimeter_fences. The
eA. Atal peice cc Seale ieee
and firefigl for

guidelines of the Depactm mena (niece aad tal
Governments, ‘I Board shall establ
system_of public accountability of SBEDA internal
security personnel

01 Taking cognizance of the SBEZ. as investors an
tourists’ haven, the SBEDA_ shall i
levelop a central site and facilities within the SBFZ
for_a__goverament_center_where agencies and
government services shall_be located forthe
convenience of the SBFZ locators, business
operators, workers and residents

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@ Except as herein provided, the local government
units with political boundaries that are partly included
within the boundaries of the Subic Bay Freeport
Zone shall retain their basic autonomy and identity.
‘he cities shall_be governed by their respective
charters and the municipalitics shall_operate_and
function in accordance with republic Act No. 7160,
otherwise known as the Local Government Code of
1991. However, the territories included within th
boundaries of the Subic Bat Freeport Zone shall be
managed by the SBEDA and provided with

propriate ipal_services_and_modey ic
infrastructures and utilities as needed,”

“Sect te SBEZ Offices —Vhe _SBEDA _ shall

3 he org; soa

SEMA inched folosing ofc natch Say
to improve its services to the locators and publics of
SBEDA and SB

(@) Reorganization of the Eeology Center,

‘The_Ecology Center is hereby ssorganized|_as_the
Ecolo, emeni ich ean
isd ba ht lL mpkemeno cans she
strict observance of national environmental laws and
local environmental programs. It shall be headed by a
puofessional Hxecutive Director with adequate
110 experi
envionméntal management. The ENC s tated ta
rganize— the —Subic Taj Unified _Mulipartite

management zoning plan,

‘he ns 3 nc ¢ EMC
audited annually by a non-governmental volunteer
Subic Bau invironmental Manag meat Council that
shal organized by the DENR. The SBEMC shal
bec Sa sed of 15 multi-sectoral stakeholders from

i

LGUs, locators, touriss ther agricultur

sectors, and environmental NGOs,

(b) Indigenous Peoples Affairs Office. In consultation
with the National Commission for Indigenous
Peoples, the SBEDA shall create and support the
Indigenous Peoples A ffaits Office that shall carry out

plans and programs for the benefits and welfare of all
IPs from Zambales, Bataan and Olongapo.

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{Q) Education and Skills Development Program, In
cooperation with ‘'ESDA, chambers of commerce,
and_member LGUs, the SBEDA. shall _establish_a
Skills Development Program that shall design and
conduct_various technical skills training projects to
help_provide supply high quality technical skills in

demand of SBFZ-based_ industrial, commercial_and

tourism enter

(Q) SBEZ Information Desk. Public service is a public
st, and public documents should be accessible to
1 Freedom of Information shall_be
espoused by SBUDA. ‘Towards this, an SBF:

Information Des k shall be organized to serve. as the
computerized central library of information and/or
soft_files of resolutions, agreemenrs, contracts and.
other public documents of the SBEDA, ‘The Desk
shall_store, organize, mine, _codify,_publish_or
al hese pio ide information and public documents
\e general pul li by. -clectroni¢ means or other

ee nveni

“Si 4-F__ Ombudsman.—The Office of the

Ombudsman shall appoint a Resident Ombudsma
cated in the SBEZ, government center,”

“‘Seation 14-G, Legal cownsel—- Sishour prenudice to die

hiring _of an_outside counsel, the Government

Corporate Counsel _shall be_the ex officio legal
‘counsel of the Subic Authority, and for this purpose
the GCG may designate a full time representative
whose compensation shall _be approved by the
Board.”

ee The Commission_on_Audit

int a representative who shall be the full
time auditor of the Subic Authority, The Avital

bea sith ed_by_suich. personnel as may be necessary i
f dur

SECTION 3. Implementing rules and regulations —The SBEDA, in coordination with the

Office of the President, shall promulgate and publish the necessary rules and regulations for the

effective implementation of this Act within two months from the date of the effectivity of this

Act.

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No policies that would violate the provision of existing contracts, grants, exemptions and
incentives extended by the previous SBMA administration, shall be passed by the SBEDA to

affect existing contracts and agreements.

‘The Civil Service Commission shall within sixty (60) days fom the implementation of this Act
assist the SBEDA in streamlining its staffing pattern and providing for appropriate separation

from service of those found not to be qualified or redundant.

SECTION 4. Separability clause—If, for any reason, any part, section or provision of this
Act is held invalid or unconstitutional, the remaining provisions not affected thereby shall

continue to be in full force and effect.

SECTION 5. Repeating clause.—The Bases Conversion and Development Aut of 1992 (R.A, No.

7227) is hereby amended accordingly

Alll laws, decrees, executive orders, proclamations, rules and regulations, and other issuances, or
part or parts thereof, including parts of Republic No. 7917, Republic Act No. 9399, Republic Act
No. 9400, and Republic Act No, 7916 which are inconsistent with the provisions of this Act are

hereby repealed, amended or modified accordingly.

SECTION 6. Efteetivity clause—This Act shall take effect fifteen (15) days after the

completion of its publication in the Official Gazette or in at least two (2) newspapers of general

citculation.

Approved,

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