Philippine Coast Guard Modernization Act

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JUL -3 P4:01 SENATE S. No. 78 Introduced by Senator Jinggoy Ejercito Estrada 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 one of the world's largest archipelagos composed of 7,641 islands with 36,289 kilometers of shoreline. We are blessed with expansive waters containing diverse aquatic life and marine resources that are sources of bountiful harvest and livelihood for coastal communities. It hosts vital seaways for trade and commerce, possesses rich oil and gas deposits and energy sources, and is endowed with pristine beaches and picturesque seascapes suitable for tourism development. Also, the country's exclusive economic zone (EEZ) is a maritime area larger than our total land area. It is therefore imperative for the government to have an effective Coast Guard organization that can protect and preserve the diverse resources found in our maritime territory and defend the same against intruders, lawless elements and destructive activities. As enshrined in Republic Act No. 9993 or the "Philippine Coast Guard Law of 2009," the PCG was established as an armed and uniformed service attached to the Department of Transportation (DOTr). However, in times of war, as declared by Congress, it shall be attached to the Department of National Defense (DND). It is

also considered as the oldest and only humanitarian armed service of the Philippines. It is vested with powers aimed to perform five major functions of maritime safety, maritime security, maritime search and rescue, maritime law enforcement, and marine environmental protection. The PCG is given the colossal task of enforcing regulations in accordance with maritime international conventions and treaties and national laws for the promotion of safety of life and property at sea, and providing assistance in the enforcement of laws towards the prevention or suppression of terrorism at sea, as well as pertinent regulations on fisheries, immigration, tariff and customs, forestry, firearms and explosives, human trafficking, dangerous drugs and controlled chemicals, transnational crimes, protection of marine environment and resources from offshore sources of pollution, and other applicable laws within the maritime jurisdiction of the country. In light of the ongoing disputes and documented cases of harassment in the West Philippine Sea, PCG recently admitted that its assets are not enough to patrol the area and to protect Filipino fishermen against foreign aggressors. Commodore Jay Tarriela, PCG spokesperson for the WPS, said "It is about time that we need to acquire more offshore patrol vessels that could constantly patrol the Philippine exclusive economic zone (EEZ)." He also relayed that the PCG only has three offshore patrol vessels — one was bought from France and two from Japan - and that these are certainly not enough to secure the vast area.I This bill proposes a modernization program of the Philippine Coast Guard that will allow it to significantly upgrade its assets, further expand its capabilities, and ensure the fulfilment of its mandate as provided under our laws. 1 "PCG to lawmakers: It's time to modernize in wake of China harassment in WPS." Accessed on 04 March 2023 through https://globalnation.inguirer.net/211162/pcg-to-lawmakers-its-time-to-modernize-in-wake-of-china- harassment-in-wps

In view of the foregoing considerations, the immediate passage of this legislation is fervently sought.

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES JUL -3 P4:01 First Regular Session SENATE S. No._ Introduced by Senator Jinggoy Ejercito Estrada 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 House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "Philippine Coast

2 Guard Modernization Act.

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

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

Sec. 3. Philippine Coast Guard Modernization Program. - Within a period not

exceeding fifteen (15) 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

1 as provided in Section 3 of Republic Act No. 9993, also known as the "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. - The PCG Modernization Program shall be implemented in

accordance with the following objectives: a) Minimize, if not totally eliminate accidents at sea; b) Reduce the search efforts and hasten response time during search and rescue operations; c) Contribute substantially to securing maritime zones and territorial waters from terrorism, lawlessness and other threats to national security and territory; d) Effectively contribute to the enforcement of the Philippine criminal and other special laws within the maritime zones and territorial waters; and e) Minimize, if not totally eliminate, pollution in the maritime zones or areas and hasten response time in cases of emergencies.

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 assisting in 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 and 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

2 from the effectivity of this Act, the PCG Commandant shall, in coordination with the Secretaries of the DOTr and the Department of Budget and Management (DBM), submit the PCG Modernization Program through the Congressional Oversight 5 Committee created under Section 14 hereof for its consideration and approval through a joint resolution of the House of Representatives and the Senate. The Program shall indicate the following: a) The size and shape of the PCG in terms of personnel, equipment and facilities during the various phase of the Program; b) The modernization project under each phase including the major weapon and non-weapon equipment and technology acquisition, infrastructure construction or improvements 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 belong; 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 muiti-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, through the Congressional Oversight Committee, 2 shall submit copies of these multi-year contracts and other agreement or arrangement to enable Congress to appropriate funds.

Sec. 8. Self Reliance Program. - In implementing the Program, the PCG shall,

5 as far as practicable, give preference to Filipino contractors and suppliers, and 6 secondly to foreign contractors or suppliers, willing and able to locate a substantial portion on, if not the entire, production process of the terms involved within the Philippines. In order to generate local employment opportunities, and enhance technology 10 transfer to the Philippines, the Secretary of the DOTr shall, as far as feasible, 11 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 15 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

19 created a trust fund, to be known as the Philippine Coast Guard Modernization Trust 20 Fund, to be administered by the Secretary of the DOTr in accordance with existing 21 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) Appropriations for the Philippine Coast Guard Modernization Program; b) The proceeds from the sale, ease, or joint development of coast guard properties and lighthouse reservations, as may be authorized by Congress, including such immovable and other facilities as may be found therein, not covered by the Bases Conversion and Development Authority, as provided for in Republic Act No. 7227, as amended, 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 moveable 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

12 specialize PCG capabilities, equipment acquisition shall be initiated within the 13 respective functional areas as mentioned in Section 2 of this Act but integrated into 14 the Program to allow inter-operability and ensure a greater degree of reliability.

Sec. 11. Contract Negotiation. - The procurement process shall be governed

16 in accordance with Republic Act No. 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 19 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, through the Congressional Oversight Committee, 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, through the Congressional Oversight Committee 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 annual appropriation for the PCG

modernization program shall include the amounts necessary to support the funding

requirement for all modernization projects approved by Congress pursuant to this 2 Act. The funds to be appropriated by Congress shall be treated as distinct and separate budget item • from the regular appropriation for the PCG and shall be 5 administered by the Secretary of the DOTr. The proposed program shall be based on 6 a ceiling of Fifty billion pesos (P50,000,000,000.00) for the first five (5) years. Thereafter, this amount may be increased commensurate to the increase in the gross national product (GNP).

Sec. 14. Joint Congressional Oversight Committee. - A joint Congressional

10 Oversight Committee is hereby created to monitor and oversee the implementation 11 of the provisions of this Act. The Joint Congressional Oversight Committee shall be composed of six (6) Senators and six (6) Representatives to be appointed by the Senate President and the Speaker of the House of Representatives, respectively. It shall be co-chaired by the Chairperson of the Committee on Transportation of both Houses. The minority parties of both houses shall have at least two (2) representatives in the Joint Congressional Oversight Committee.

Sec. 15. Sunset Review. - Five (5) years after the effectivity of this Act, the

18 Joint Congressional Oversight Committee shall conduct a systematic evaluation of 19 the accomplishments and impact of this Act as well as the performance and 20 organizational structures of the PCG.

Sec. 16. Separability Clause. - If any provision of this Act is declared invalid

or unconstitutional, the remaining provision not affected thereby shall continue to be in full force and effect.

Sec. 17. Repealing Clause. - All laws, decrees, orders or regulations or part

thereof inconsistent with this Act are hereby repealed or modified accordingly.

Sec. 18 . Effectivity. - This Act shall take effect fifteen (15) days following the

completion of its publication in the Official Gazette or in a national newspaper of general circulation. Approved,