Strengthening the Bases Conversion and Development Authority

Senate Office of the stretary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session ) 26 FEB -2 P2:59 RECEIVED BI: SENATE S. No. 1733 Introduced by Senator Jinggoy Ejercito Estrada AN ACT STRENGTHENING THE BASES CONVERSION AND DEVELOPMENT AUTHORITY AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7227 OR THE "BASES CONVERSION AND DEVELOPMENT ACT OF 1992", AS AMENDED EXPLANATORY NOTE Republic Act No. 7227, or the "Bases Conversion and Development Act of 1992," created the Bases Conversion and Development Authority (BCDA) to transform former military reservations into engines of inclusive growth while supporting the Armed Forces of the Philippines' modernization. After more than three decades of improvement in Clark, New Clark City, Clark Freeport, John Hay, Poro Point, and the Morong/Bataan Technology Park, refinements are needed to complete ongoing projects, attract investment, and deliver housing, jobs, and infrastructure in a timely and accountable way. The proposed measure extends BCDA's corporate life for another 30 years with the long horizons of major urban and infrastructure development, while preserving Congress' power of oversight and dissolution once BCDA's primary purpose is achieved. It updates authorized capital stock and allows government subscriptions to be paid through asset proceeds or property transfers, enabling resource mobilization without undue reliance on the national budget. The measure also authorizes the limited disposition of lands in the special economic and freeport zones within BCDA, subject to clear safeguards. Only specific

portions identified in Board-approved master development and strategic disposition plans and cleared by the Department of Environment and Natural Resources, may be declared alienable and disposable. These areas will be allocated primarily for residential, mixed-use, institutional, and industrial purposes in accordance with national priorities and existing master plans. Existing lease contracts will continue to be protected under prevailing laws. Proceeds from land sales shall be remitted to the Bureau of the Treasury and, as practicable, reinvested in infrastructure projects within the same zones to ensure that realized value directly supports further local development and public investment. In view of the foregoing, the immediate passage of this bill is earnestly sought. Ligelat L JINGGOY EJERCITO ESTRADA

Senate Office of the Sarcretarp TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session ) FEB -2 P3:00 SENATE RECEIVED BY: S. No. 1733 Introduced by Senator Jinggoy Ejercito Estrada AN ACT STRENGTHENING THE BASES CONVERSION AND DEVELOPMENT AUTHORITY AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7227 OR THE "BASES CONVERSION AND DEVELOPMENT ACT OF 1992", AS AMENDED Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

Section 1. Section 3 of Republic Act No. 7227 otherwise known as the "Bases

2 and Conversion and Development Act of 1992", as amended, is hereby further amended to read as follows: "SEC. 3. Creation of the Bases Conversion and Development Authority. - There is hereby created a body corporate to be known as the Bases Conversion and Development Authority, hereinafter referred to as the conversion authority, which shall have the attribute of perpetual succession and shall be vested with the powers of a corporation. "It shall be organized within thirty (30) days after the approval of this Act. It shall have a term of fifty (50) years from its organization, WHICH SHALL BE EXTENDED FOR ANOTHER THIRTY (30) YEARS UPON THE EXPIRATION OF ITS ORIGINAL TERM: Provided, That Congress, [by joint resolution,] may dissolve the Conversion Authority whenever in its judgment the primary purpose for

its creation has been accomplished. It shall establish its principal office in Metropolitan Manila unless otherwise provided by the Conversion Authority and may put up such branches as may be necessary."

Sec 2. Section 6 of Republic Act No. 7227, as amended, is hereby amended to

read as follows: "SEC. 6. Capitalization. The Conversion Authority shall have an authorized capital of [One hundred billion pesos (P100,000,000,000)] TWO HUNDRED BILLION PESOS (P200,000,000,000.00) which may be fully subscribed by the Republic of the Philippines and shall either be paid up from the proceeds of the sales of its land assets as provided for in

Section 8 of this Act or by transferring to the Conversion

Authority properties valued in such amount. "An initial operating capital in the amount of seventy million pesos (P70,000,000) is hereby authorized to be appropriated out of any funds in the National Treasury not otherwise appropriated which shall be covered by preferred shares of the Conversion Authority retireable within two (2) years."

Sec. 3. A new section designated as Section 17-A is hereby inserted after

Section 17 of RA 7227, as amended, and the succeeding sections are renumbered

accordingly. The new Section 18 shall read as follows: "SEC. 17-A. DECLARATION OF PORTIONS OF SPECIAL ECONOMIC AND FREEPORT ZONES AS ALIENABLE AND DISPOSABLE. - TEN PERCENT (10%) OF THE TOTAL LAND AREA OF EACH OF THE FOLLOWING SPECIAL ECONOMIC AND FREEPORT ZONES, AS IDENTIFIED IN THEIR RESPECTIVE MASTER DEVELOPMENT PLANS, ARE HEREBY DECLARED AS ALIENABLE AND DISPOSABLE UPON

APPROVAL OF THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES (DENR): "(A) CLARK SPECIAL ECONOMIC ZONE (CSEZ), INCLUDING NEW CLARK CITY, AND CLARK FREEPORT ZONE (CFZ) CREATED PURSUANT TO PROCLAMATION NO. 163, SERIES OF 1993, AS AMENDED, AND IN RELATION TO REPUBLIC ACT NO. 9400; "(B) PORO POINT FREEPORT ZONE (PPFZ) CREATED PURSUANT TO PROCLAMATION NO. 216, SERIES OF 1993, AS AMENDED; "(C) BATAAN TECHNOLOGY PARK (BTP), FORMERLY KNOWN AS THE PHILIPPINE REFUGEE PROCESSING CENTER COMPLEX (PRCC) WITHIN THE MORONG SPECIAL ECONOMIC ZONE (MSEZ) CREATED PURSUANT TO PROCLAMATION NO. 984, SERIES OF 1997; AND "(D) JOHN HAY SPECIAL ECONOMIC ZONE (JHSEZ) PURSUANT TO PROCLAMATION NO. 420, SERIES OF 1994, AS AMENDED: "PROVIDED, THAT THE IDENTIFIED PORTIONS OF THE ENUMERATED SPECIAL ECONOMIC AND FREEPORT ZONES SHALL BE ALLOCATED AS FOLLOWS: "(A) FIVE PERCENT (5%) FOR RESIDENTIAL AND RESIDENTIAL/MIXED-USE PURPOSES; AND "(B) FIVE PERCENT (5%) FOR INSTITUTIONAL AND INDUSTRIAL PURPOSES, CONSISTENT WITH THE PRIORITY PROJECTS AND PLANS OF THE GOVERNMENT: "PROVIDED, FURTHER, THAT THE PRESIDENT, CONSIDERING THE MARKET DEMAND AND ECONOMIC CONDITIONS, MAY DECLARE AN

ADDITIONAL AREA NOT EXCEEDING FIVE PERCENT (5%) OF THE TOTAL LAND AREA OF EACH OF THE ENUMERATED SPECIAL ECONOMIC AND FREEPORT ZONES AS ALIENABLE AND DISPOSABLE TO BE ALLOCATED FOR RESIDENTIAL, RESIDENTIAL/MIXED-USE, INSTITUTIONAL, AND INDUSTRIAL PURPOSES. "THE CONVERSION AUTHORITY, AS ADMINISTRATOR OF THE HEREIN ENUMERATED SPECIAL ECONOMIC AND FREEPORT ZONES, IS AUTHORIZED TO SELL THE LANDS IN THE IMMEDIATELY PRECEDING PARAGRAPHS, SUBJECT TO THE APPROVAL OF THE PRESIDENT OF THE PHILIPPINES: PROVIDED, THAT NO SALE OF SUCH LANDS SHALL BE UNDERTAKEN UNTIL A MASTER DEVELOPMENT PLAN AND A STRATEGIC DISPOSITION PLAN ARE APPROVED BY THE BOARD OF DIRECTORS OF THE CONVERSION AUTHORITY. EXISTING LEASE CONTRACTS IN THE COVERED AREAS SHALL BE PROTECTED AND RESPECTED IN ACCORDANCE WITH EXISTING LAWS. "THE APPROVED MASTER DEVELOPMENT PLAN AND STRATEGIC DISPOSITION PLAN SHALL BE THE BASIS FOR ANY SALE OR DISPOSITION OF LANDS IN ACCORDANCE WITH THIS SECTION. THE CONVERSION AUTHORITY SHALL SUBMIT A COPY OF THE MASTER DEVELOPMENT PLAN TO THE PRESIDENT OF THE PHILIPPINES AND BOTH HOUSES OF CONGRESS WITHIN THIRTY (30) DAYS FROM APPROVAL THEREOF. "THE PROCEEDS FROM THE SALE SHALL BE REMITTED BY THE AUTHORITY TO THE BUREAU OF

TREASURY TO BE UTILIZED AS FAR AS POSSIBLE TO FINANCE THE DEVELOPMENT OF INFRASTRUCTURE PROJECTS IN THE ABOVE-MENTIONED SPECIAL ECONOMIC AND FREEPORT ZONES: PROVIDED, THAT EVERY THREE (3) YEARS, THE CONVERSION AUTHORITY SHALL SUBMIT TO THE OFFICE OF THE PRESIDENT PERIODIC UPDATES ON THE DISPOSITION OF RESIDENTIAL, RESIDENTIAL/MIXED-USE, INSTITUTIONAL, AND INDUSTRIAL LANDS, AND THE UTILIZATION OF THE PROCEEDS FROM THE SALE THEREOF."

Sec. 4. Nothing in this Act shall be construed as transferring existing military

bases under the jurisdiction of the Department of National Defense and/or Armed Forces of the Philippines to the Conversion Authority.

Sec. 5. Implementing Rules and Regulations. - The Conversion Authority, in

consultation with the appropriate agencies, shall promulgate the rules and regulations necessary for the effective implementation of this Act within ninety (90) days from its effectivity.

Sec. 6. Separability Clause. - If any provision of this Act is declared

unconstitutional, the remainder thereof not otherwise affected shall remain in full force and effect.

Sec. 7. Repealing Clause. - All laws, presidential decrees, executive orders,

letters of instruction, proclamations, and administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 8. Effectivity Clause. - This Act shall take effect after fifteen (15) days

following the completion of its publication in the Official Gazette or any newspaper of general circulation. Approved,