Philippine Coast Guard Modernization Act of 2025

Outsr of: 25 JUL 16 P4:15 TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session RECEIVED B: SENATE S. No. 682 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 Outdated equipment and inadequate disaster response capabilities further complicate the Coast Guard's role in disaster response efforts, which is critical given the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 SEMATOR CHRISTOPHER LAURENCE BONG T. 60

win: oft 25 JUL 16 P4:15 TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session RECEIVED 3Y SENATE S. No._ 682 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.

SECTION 1. Title. - This Act shall be known as the "Philippine Coast Guard

2 Modernization Act of 2025. "

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to

4 develop the Philippine Costal Guard (PCG), and ensure the continued protection and 5 defense of our maritime border, economy, and environment. Toward this end, the 6 Modernization Program under this Act shall develop and enhance the capabilities of the 7 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

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 5 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 7 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

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;

(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

9 the effectivity of this Act, the PCG Commandant shall, in accordance with the Secretaries 10 of The DOTr and Department of Budget and Management (DBM), submit the PCG 11 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

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 9 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 16 transfer to the Philippines, the Secretary of the DOTr shall, as far as feasible, incorporate 17 in each contract or agreement special foreign exchange reduction schemes such as 18 countertrade, in country manufacture, co-production, or other innovative arrangements 19 or combination thereof. The PCG shall likewise ensure that in negotiating all applicable contracts or 21 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

26 a trust fund, to be known as the Philippine Coast Guard Modernization Trust Fund to be 27 administered by the Secretary of the DOTr in accordance with existing rules and

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; (f) 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 20 areas as mentioned in Section 2 of this Act but integrated into the Program to allow inter- 21 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 27 delegated to the next lower-level management by the PCG Commandant.

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 3 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 g 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 16 implement the provisions of this Act shall be included in the General Appropriations Act 17 under the DOTr.

SEC. 14. Separability Clause If any provision of this Act is declared unconstitutional

20 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.

SEC. 16. Effectivity- This Act shall take effect fifteen (15) days after its publication

in the Official Gazette or a newspaper of general circulation. Approved,