The Mother of Olongapo

Mayor's wife

Public service is nothing new to Amelia. Her father was then mayor of the municipality of Subic, Zambales. In 1965, her husband Jimmy was elected mayor of the mucipality of Olongapo. In 1966, Olongapo became a city-as Jimmy had envisioned it to be. The year after, though, he was felled by an assassin's bullet right in the lobby of city hall. During his term, Jimmy started a massive campaign against illegal logging, fighting well-entrenched syndicates which made Olongapo the center of their business activities. He inevitably antagonized the corrupt rich and powerful who lobbied to protect their vested business interests. His war against crime and corruption cost him his life.

Countless people openly wept over the violent murder of their founding father. Stricken with grief, Amelia had to be strong for her sons and daughters. "It was so painful, so sad," she recalls, "and so many came to pay their respects."



Battlecry

And long before Ninoy Aquino was slain at the tarmac of the international airport, and his widow Cory catapulted to candidacy for the highest office in the land, there already was a clamor for another widow to take over the reins of city hall. "Bring Gordon back to City Hall!" became the battlecry of the people of Olongapo.

The threats on her life notwitstanding, Amelia became the first elected mayor of Olongapo City. She built her campaign on her late husband's platform of good government.

As mayor, Amelia completed the first Master Plan for the city through the Olongapo Land Development and Urban Planning Autority-an interdisciplinary planning group of resident professionals and government officials. This she did 20 years before the end of the Mutual Bases Agreeement. After her term ended in 1971, she served as assemblywoman in the Batasang Pambansa in 1972.

A congressional act Amelia spearheaded enabled the proceeds from the sales of titled land within the city to be retained in the city treasury as the community's development fund. She built new settlements and extended the city's public service to the residents of formerly unserved communities.

"When we're young, we make inner vows not to be like our mothers, but we end up being exactly like them," Bai says. When Bai was young, she told herself, "I will never be like my mom. I will never be in the restaurant business." But Bai now has a flower shop and a restaurant-businesses her mother had while they were growing up.

Bai's advice for Mother's Day? "Honor your parents, that all may be right with you."

As for Amelia, when asked how she was, she replied, "Eto, buhay pa rin. Maraming anak." (Here, still alive. And with lots of kids.)

‘Forbidden Island’ opens to Filipinos

SUBIC BAY FREE­PORT—What used to be called Forbidden Island, when Subic was a US military installation, has transformed itself into a sprawling P80-million island resort.

After an ecosystem-based concept, the island was formally opened to the public Tuesday afternoon with Chairman Felicito Payumo of the Subic Bay Metropolitan Authority (SBMA) and Robert Dean Barbers, the Philippine Tourism Authority general manager, cutting the ceremonial ribbon.

Payumo commended the timely opening of the resort, saying that the new resort’s opening marks the official start of summer in Subic, which will surely accompany an increase in tourism arrivals in the Freeport.

“This will definitely boost tourism industry here in the Subic Freeport because the island is perfect. It’s very beautiful and relaxing. It’s like a tropical island resort. And this will surely draw foreign and local tourists alike,” Payumo said.

He said Grande Island used to be called Forbidden Island, because the Americans barred Filipinos from going to the island although it was open to US servicemen and their families.

The efforts to make it into a world-class island resort was a commendable move to make the island now welcome to people from all walks of life, Payumo added.

“Grande Island used to be off-limits to Filipinos, but now it is open to all who wish to see and experience the captivating beauty that it posesses. The developers have truly made a good job in transforming this place short of paradise,” he said.

Barbers commended Payumo and the developers, Robin Tan and Benito Ong, for their wonderful work in transforming Grande Island.

“The country needs more people like Chairman Payumo, Mr. Tan and Mr. Ong, who have strong visions of making islands, like Grande, a tropical paradise,” he said.

Barbers further noted that the country, which is made up of more than 7,100 islands, can be further boosted in the tourism scene despite labels made by some countries that the Philippines is a terrorist laden country.

“We know what kind of beauty the Philippines can attract on tourists and we should join in on the effort of helping promote the country as a top tourist destination,” he added.

According to Francis Elum, Grande Island Resort’s chief operating officer, only 14.2 hectares of Grande Island was transformed into a resort out of the total 44 hectares. The rest of the area will be maintained for its historical value.

He added that this would complement SBMA’s efforts in making Subic Freeport a world-class tourist destination.

Elum added that the island promises a worthwhile trip benefiting any tourist. The new resort will offer various activities, which would range from adventure and historic trails, camping, water sports, fishing and the like. It will also play host to social functions and business conventions.

He further explained that historians need not worry about Grande’s value as an historical icon, because all the war battery sections of the island will remain untouched and will instead be cleaned up and maintained for people to visit and see.

Grande Island houses more than 150 cottages to be located on the island’s beach area.

One of the main attractions of the new project is the construction of a man-made waterfall lagoon, which will be set right in the heart of the island and will be the central section where most of the planned events will take place.

“We are glad to help develop Grande. This is our way of helping make Subic a world-class stop for tourists. When this project is finished, it’s like having an island paradise right in the heart of the country’s economic growth areas,” he added.

A camping site for overnight campers has been set up. An area, which can accommodate more than 150 campers, complete with amenities like toilets and washrooms, has already been set in the plan.

A main restaurant and bar has also been built along a boardwalk fronting the beach. Guests can come in and dine al fresco and enjoy the Subic Bay scenery.

A convention hall will take the place of the old hotel section of the island, giving way for conventioneers to enjoy business and pleasure at the same time

Despite possible delay, investors back ‘gateway’ project

SUBIC FREEPORT—Despite the delay facing President Arroyo’s “global gateway” project, foreign investors and local businessman here praised the project’s inclusion in her socioeconomic agenda for Central Luzon.

Ichiro Tsuji, Subic Techno Park (STEP) president, said the Japanese business community was elated to hear Mrs. Arroyo endorse the project, components of which will be funded by the Japanese government through an economic loan package with the Japan Bank for International Cooperation (JBIC).

“President Arroyo is right in saying the project would spur economic progress in Central Luzon. This pronouncement would attract more foreign investors particularly from Japan,” Tsuji said.

“It will also create much-needed jobs in the region,” said Tsuji, whose company developed an industrial park for Japanese companies at the Subic Freeport.

Jose Saddul, the Subic Bay Chamber of Commerce and Industry Inc. (SBCCI) president, also welcomed President Arroyo’s announcement and said, “it is a step forward in achieving increased business activity in the Subic Freeport.”

“We have been supporting efforts to build a toll road linking Subic and Clark and the planned modernization of the Subic port and news of the President committing her support to the plan to integrate the airport in Clark, the toll road and the Subic port is a most welcome development,” Saddul said.

In her speech at the Central Luzon Development Summit on Global Gateways held at the Holiday Inn Resort in Clark Economic Zone on Wednesday, Mrs. Arroyo said she was part of a team of government officials who began the Central Luzon Development Plan through the “Growth Corridor” concept in the region during her stint as trade and industry undersecretary.

“I initiated it ten years ago. That’s how long we have been on this dream,” the President said.

The global gateway project envision linking the airport in Clark, seaport in Subic and the proposed highway from Subic through Clark to Hacienda Luisita in Tarlac.

The President said the global gateway project integrating the Diosdado Macapagal International Airport, the Subic Container Port and the Subic-Clark-Tarlac Toll Road “can be done.”

Admitting the planned March 22 groundbreaking of the toll road may not push through since there are still problems to be resolved, the President said she hopes the concerned officials can thresh out the problem and move forward on this project.

The Pampanga Chamber of Commerce and Industry (PCCI) also praised Mrs. Arroyo for pushing the gateway project, saying it bolsters his group’s commitment to promote a global village in Central Luzon with its rich cultural heritage that will mark a distinctive and competitive advantage of products made from the region.

“Global gateway would increase the demand for basic commodities and other economic essentials as well as become a catalyst for human resource development,” said Renato “Abong” Tayag, PCCI president.

Chairman Felicito Payumo of the Subic Bay Metropolitan Authority said the SBMA and the Bases Conversion and Development Authority (BCDA), headed by its president Rufo Colayco, initiated the global gateway project through the Subic-Clark Alliance for Development (SCAD).

“Global gateway will synchronize the two government agencies’ efforts to develop Central Luzon as an air-sea-and-land logistics hub in the Asia Pacific region,” Payumo said.

Payumo added the project is envisioned to create unprecedented employment and potential growth center upon completion and its benefits will go beyond the increased income from by heightened individual, business, government and foreign consumption.

“We see the economic promise of the global gateway for our families, our communities, our province, the whole region and the country as a whole,” the SBMA chief said.

Colayco said the biggest problem of business is that it is being hampered by poor infrastructure, which has become the main reason why more than eight million Filipinos seek jobs abroad.

“Our people opt to look for work abroad due to lack of infrastructure development and business continue to decline because of its inability to compete in the global market,” Colayco said

Shines In Beauty Tilt Abroad

2003 Best Model winner Melissa Frye finished first runner-up at the 2003 Best Model of the World contest in Turkey last March 6. Here’s the report of Gerry Diaz, chief correspondent of the Mabuhay Beauties Board at www.voy.com/61263/

Melissa Frye, 2003 Best Model Philippines winner was proclaimed first runner-up in the 2003 Best Model of the World contest held at the Maslak Princess Hotel in Istanbul, Turkey last March 6. This 20-year old model hails from Olongapo and was studying Computer Engineering before she won the local modeling contest. Melissa, who is 5' 11" tall and measures 34-25-36, is the only daughter of Narcisa Andales and Kevin Frye who is based in Japan. She has three brothers.

At the presscon held before she left for Turkey, I encouraged her to join the Bb. Pilipinas search because she has the makings of a future international beauty titlist. Aside from her height, beautiful face, nice figure and long shapely legs, she has a good command of English and is quite smart. That combination is hard to come by nowadays. Depending on the angle from which you are looking at her, Melissa looks like Melanie Marquez, Sarah Jane Paez and per some SAGA staff, Jaclyn Jose.

Melissa isn't sure yet about her plans. Since she has family members in the United States, she might decide to set up base there. She has a brother in Seattle and her grandmother is in Montana. One of her aunts, Teresa Frye, was a model in the US and was one of those who encouraged her to pursue a modeling career.

Palace exec says SBMA can implement port plan

SUBIC BAY FREEPORT -- Presidential Assistant for North Luzon Renato Diaz said the Subic Bay Metropolitan Authority has the right under the law to start implementing its port modernization program amid the opposition raised by Olongapo City officials.

This was contained in a memorandum Diaz submitted to Malacañang on Nov. 11. The memorandum cited provisions of Republic Act 7227 or the base conversion law that created the SBMA to transform the former Subic Naval Base into an industrial zone.


"In case of conflict between the SBMA and the local government units concerned on matters affecting the Subic Special Economic Zone (other than defense and security), the decision of the SBMA shall prevail," Diaz, quoting Section 14(b) of RA 7227, said.

He said the SBMA has an autonomous power to operate, administer and manage the freeport as a "self-sustaining, industrial, commercial, financial and investment center."

The conflict over the port project has adversely affected the establishment of the proposed Subic-Clark Alliance for Development (Scad) that is expected to spur the development of an agro-industrial and tourism corridor in Central Luzon, Diaz said.

Earlier, Governors Vicente Magsaysay (Zambales), Leonardo Roman (Bataan), Manuel Lapid (Pampanga), Tomas Joson III (Nueva Ecija) and Jose Yap (Tarlac) endorsed the SBMA's port project plan.

Olongapo City Mayor Katherine Gordon and other Olongapo officials, however, are opposing the project, citing environmental concerns, livelihood loss for fishermen, coral reef destruction and water pollution that the project would bring about.

Tourism Secretary Richard Gordon, the Cabinet Officer for Regional Development (Cord) in Central Luzon, is also opposing the project.

He questioned the plan of SBMA to borrow 157 million dollars (about 8.5 billion pesos) to develop a new port.

While saying that he was fully supporting the modernization of the Subic Port, Gordon, former SBMA chairman, said he was questioning the feasibility of the SBMA plan in view of the government program to pursue privatization.

He said several groups have expressed concern over the possibility of severe damage to the fragile marine ecosystems in the Cubi Point area once the port is built.

Gordon said there was no need to reclaim 39 hectares in Cubi Point to build a new port because the existing facilities at Subic Bay were already adequate.

THE ACCESSIBLE UTOPIA

By Igan D’bayan (STAR) We all know how crummy city life is. You could just imagine people trudging to work with heavy feet and empty eyes just like in the opening scene of Joe Versus the Volcano. There are a thousand cars during rush hour vying for one inch of road space, defying physics in the process. There are a thousand commuters inside an LRT coach designed for – what? – 30 people, defying physics yet again. There are floods that would make any person hearing Noah inside his head start whipping out hammer, nails and wood and fashioning an ark just to get to work or go home. There are a thousand hassles waiting for each inhabitant – muggers, mulcting cops, and other domestic monsters. It is hot as hell. It rains angels and devils (you never know who you’ll meet in sidestreets and alleyways). It is not a happy place to be in, what with garbage, mediocre movies and other malevolent assaults to the senses. The city has become an agoraphobic’s Fear Factor challenge. One’s best bet is to pack for the weekend and head somewhere that is the antithesis of the city.

Well, it’s hard to believe that all it takes is a two- to three-hour trip from Manila (depending on that bitch called traffic at the North Expressway) to reach a unique utopia in Olongapo. The Subic Bay Freeport Zone is a business-and-leisure utopia to one of its architects (Subic Bay Metropolitan Authority Chairman Felicito Payumo) and a person who believes in the man’s vision (Subic International Hotel president Alejandra Clemente). To both of them, Subic offers a good excuse to do a Nancy Sinatra or a Run-DMC/Aerosmith away from Metro Manila.

"People are looking for an excuse to get out of the city," says Payumo. "And we are offering a place for city folks that has everything."

According to the chairman, the Freeport Zone is a self-contained community with an orderly galaxy of business centers, hotels, restaurants, shopping centers and whatnots. Security is topnotch since there is a 911 emergency dialing system, which is networked to police, fire and medical teams. Also, nature made its own set of attractions by way of mangroves, beaches, coral reefs, and forests), while man-made ones include golf ranges, extreme sport centers, go-kart courses, auto racetracks, theme parks and bowling alleys. But wait – to steal a line from the infomercial lady – there’s more.

"You know, Subic is known for its eco-tourism – with attractions like jungle survival trips, bird-watching, and forest hiking," Payumo shares. "The Ocean Adventure, while offering visitors a glimpse of beautiful aquatic creatures, wants to impart the message of conservation."

The chairman is spearheading the establishment of an aviary, a butterfly garden, a zoo, and an insectarium – and Payumo is putting them up bayanihan style.

"I’ve talked to the Philippine Avian Society, and the members have agreed to put their pet birds on display, so that people will get to appreciate these exotic creatures," says the chairman. "Robert Yupangco has around 30 tigers spread out all over the country – in Kalatagan, Tagaytay and somewhere in Mindanao. I’m giving him a place where he can put his animals, and at the same time serve as an attraction to tourists."

For the butterfly garden, the chairman has approached Jun Simon and his French business partner. The same approach with the botanical garden – it is a "we’re-all-in-this-together" thing, so, as to attract more tourists. Payumo is confident that there will be an influx of tourists once these attractions are set in place, and once the Subic International Hotel Convention & Exhibition Center is completed. If You Build It, They Will Come

Payumo calls Subic International Hotel’s convention center the main component of its tourism program, adding that Subic has long been ripe for the M.I.C.E. market. Before you start picturing the Pied Piper dragging along a phalanx of field mice on the roads of Lubao or Guagua, rest assured that the chairman is talking about M.I.C.E., which stands for Meetings, Incentives, Conferences and Exhibits.

"The convention center will be good for the other hotels and establishments," the chairman says. "These things reinforce each other. Therefore, all the elements, all the ingredients will be in place for Subic to achieve a banner year in terms of tourism."

Subic International Hotel president Alejandra Clemente agrees.

"We want to complete this project by December," she says. "We’ll be eyeing four major markets – China, Taiwan, Korea, and Japan. We’re also looking at hosting Asia-Pacific regional conventions. And the convention center will be multi-purpose as well, pang-entertainment din siya. The chairman also wants us to bring in the Cirque du Soleil."

Clemente adds that she is inspired by the headway made by Chairman Payumo in making the Subic Bay Freeport Zone an accessible utopia. "We believe in his vision," she says. "There’s so much potential in the Subic Bay Free Port, considering all the infrastructures that are being put in place – like widening of the roads, and the construction of the highway connecting Clark and Subic. This is what you get when the public and private sector work hand in hand."

The convention center is one of the latest projects of the Subic International Hotel, which is reportedly pouring in P300 million for infrastructure initiatives. The Subic International Hotel is one the most popular hotels in the area. Three buildings – Alpha, Delta and Bravo – house 300 deluxe rooms and suites. Also, a slew of restaurants and bars – Seafront Restaurant, Café Subic, Subic Fiesta, Captain’s Lounge, The Terrace Café and the Golden Tea House – offer guests gustatory delights. Putting up a convention center, for Clemente, is key in attracting more tourists.

"This is to attract international markets more," she explains. "There has been tremendous interest for sentimental visits to Subic Bay."

Chairman Payumo nods in agreement. "This is one of the reasons we put up the Subic Naval Museum, which houses memorabilia and mementos of what Subic was before, during and after the American period. Subic has a very rich history. Since the convention center will be a stone’s throw away from the naval museum, the art center, as well the recreational centers, it will be a significant aspect of the Subic community."

The chairman adds that there has been a steady increase of tourists in Subic. "After 9/11 and the SARS epidemic, we have started promoting domestic tourism, which are buoying up our tourism industry. It is important to provide for them an alternative place to visit. Last year we had 7.9 million tourists. When I came here in ’98, we had 2.3 million."

Clemente attests to this. "The potential is here. The developments are in place. I believe that tourism in Subic will flourish even more."

Pinatubo evacuees return home

SAN FERNANDO, Pampanga - Like the "exiled" Jews who have returned to their homeland, Israel, thousands of Pampanga Pinatubo victims have also started returning home to their native Bacolor town.

Bacolor was the hardest hit by lahar flows among all the towns in Pampanga, Tarlac, and Zambales, with all almost of its villages buried by tons of volcanic debris that flowed through the Pasig-Potrero River system from the slopes of Mt. Pinatubo which erupted in 1991.

Many of the evacuees have opted to return to their lahar-laden barangays due to lack of resettlement sites where they are supposed to be permanently relocated. For years these evacuees have been living in the evacuation centers provided for them by the Mt. Pinatubo Commission (MPC) and other government institutions.

Headed by Art Sampang as its executive director, the MPC was created in 1992 by Congress to alleviate the socio-economic well-being of the tens of thousands victims of Pinatubo-related calamities.

However, not only the evacuees have returned home.

Hundreds of Bacolor families that were already resettled have also been returning home, this time due to the lack of means of livelihood supposed to be provided by them also by the MPC.

MPC report said it has already established at least 23 resettlement sites for the victims of Pinatubo-related disasters in Pampanga, Tarlac, and Zambales.

Livelihood projects were also put up in some of these resettlement sites. But these were found not enough to accomodate thousands of jobless Pinatubo victims.

Sampang, who acknowledge the fact that there indeed thousands of Bacolor evacuees have come back to their town, said, "Those returning home to their still lahar-buried villages are still hoping they would be able to get housing which we are now constructing for them."

To date, Sampang said there are still about 8,000 families living in the evacuation centers, mostly in Pampanga.

The additional housing projects were initiated by President Estrada when he launched ERAPS 2000 in Malacanang last August. ERAPS means Encouraging Renewed Assistance from Private Sector.

Shortly after the launching, some private individuals or groups immediately pledged to donate either cash or housing units for the evacuees.

At Clark Field, several locators at the Clark Special Economic Zone likewise responded to the appeal of Clark Development Corp. (CDC) president Rufo Colayco for help. Cash pledges from them have already reached P4 million even as others promised construction materials and housing units.

Earlier, Rep. Zenaida Ducut, (Lamp, 2nd District, Pampanga), said the Mt. Pinatubo evacuees who wish to return to their villages would be provided with financial help and construction materials.

Ducut said the assistance is being provided to the evacuees under the "Balik Barangay" program of the government.

The cash assistance will reportedly come from shares of their barangays from the quarry fees allocated by the Natural Resources Devleopment Corp. (NRDC). A government-owned corporation, NDRC has taken over from the Pampanga provincial government the collection of quarry fees from sand truckers.

The takeover of the collection by the NRDC was prompted by reports of alleged irregularities committed by some provincial officials, led by Gov. Lito Lapid, in the quarry operations.

Meanwhile, the Department of Social Welfare and Development (DSWD) said that it is also granting about P2,000 to every family displaced by the Pinatubo calamities who have returned to their villages. Flor Villar, DSWD regional director, however, said that the victims could only get the cash assistance after they secured certificates from the Philippine Institute of Volcanology and Seismology (Phivolcs) that their barangays are now safe from future lahar flows.

The DSWD is extending the cash assistance also under "Balik-Barangay Program," Villar said

FILIPINO TO RECEIVE PEARL S. BUCK INTERNATIONAL AWARD

Perkaise, PA - A Filipina, Amelia J. Gordon will be honored with the 2002 Pearl S. Buck International (PSBI) Women of the Year Award for her life-long dedication to the children and adoption on Pearl S. Buck International Day, Saturday - 14 June 2003 at the Pearl S. Buck Historic Site in 520 Dublin Rd., Perkaise, Pennsylvania.

"Mrs. Gordon is the former Mayor and Assemblywoman of Olongapo City in the Philippines, who legally adopted 54 children and changed the lives of thousand more as the founder of the Boys Town and Girls Home, which provides shelter and opportunity for orphaned Filipino children of American descent in Olongapo City. A delegation from the Philippines will be attending the event, including two of Amelia's sons, Congressman James Gordon Jr., who represents the 1st District of Zambales province, and Richard J. Gordon who serves in the President's Cabinet as Secretary of Tourism." said PSBI Board Member Ernesto Gange.

Pearl S. Buck International (PSBI) is a non-sectarian development and humanitarian assistance organization dedicated to improving the quality of life and expanding opportunities for educational, social, economic and civil rights. From its home office in Pennsylvania, PSBI supports program in many countries worldwide, with a particular emphasis on program in Asia.

PSBI was founded by Nobel and Pulitzer prize winning author Pearl S. Buck, the first woman to be awarded both prizes. Upon her return to the United States after forty years in China, Ms. Buck became an activist. Through her activism, she received a certificate of life membership from the NAACP as well as becoming an active trustee of Howard University. She was instrumental in the fight to gain citizenship for Chinese Americans and was a supporter of the first human rights initiative affecting the status of biracial children in many countries. She dedicated her energy and resource to promoting Tolerance, human rights and inter-cultural understanding and fighting the impact which discrimination, prejudice and bigotry can have, particularly on the lives of the children.

"Mrs. Gordon bested other nominees that included Barbara Bush and Laura Bush, mother And wife respectively of President George W. Bush; Dana Cheney, wife of Vice President Cheney, Mary Robinson of the United Nations, primarily because of her life-long work for the cause of the abandoned Amerasian children that closely compares with the dedication and sacrifice of Pearl S. Buck." said Gange.

Previous PSBI Woman of the Year awardees includes actress Audrey Hepburn, former First Lady and now Senator Hillary Clinton and former Philippines President Corazon Aquino


AMELIA J. GORDON
Pearl S. Buck Woman of the Year
(A Family and Personal Profile)


- Amelia Juico-Gordon or Mama as she is fondly called was born on 4 September 1920 in Subic in the province of Zambales.
- Parents were Juan Gonzales Juico, Presidente ("Mayor") of Subic during the American government (1917-1919) and Ma. Espiritu Nepumoceno Juico.
- While in high school she met James Gordon, Sr., the son of John Jacob Gordon of Kingston, New York an American serviceman who arrived with the American forces under Admiral George Dewey and later settled in Barrio Olongapo with Veronica Tagle, the daughter of Capt. Jose Tagle of Imus, Cavite and known hero of the Philippine Revolution.
- In 1952 James Gordon became Deputy Governor of Zambales and in 1959 fought for the independence of Olongapo from the United States being a military reservation. He was elected as its first Mayor in 1963 and in 1966 when Olongapo became a City became its first City Mayor. Due to his unrelenting stance against crime, lawlessness and corruption, he was assassinated in 1967 after three attempts on his life.
- Amelia Gordon took on the cudgels of the City and instituted its first Masterplan. Later on in 1984, she ran and won as Assemblywoman in the Batasan Pambansa.
- Her achievements in politics pale in comparison to her civic accomplishments. In the late 1950s she started by adopting 3 infants and over the years more than a thousand children were looking up to Amelia as their foster mother. This led to the founding of the Olongapo Civic Action Group(OCAG) under who's supervision was placed the "Boys Town" and "Girls Home" that served as foster home to Olongapo's impoverished, unwanted and abandoned babies. Many of these were fathered by US servicemen and forsaken by their mothers. Some where deformed babies left right at the doorstep of the Gordon's house. Others where foundlings - children whose parents driven by poverty simply abandoned them in the streets and alleys of Olongapo. Regardless of their origins and backgrounds, Amelia took them all.
- Not only did she become foster mother to these children, she personally adopted 54 abandoned children. She likewise became an outspoken advocate of Amerasian rights at a time when society refused to acknowledge their existence for religious or cultural reasons. While most people ignored them, Amelia opened her arms, home and heart to the Amerasians. She saw them not as unwanted children but as boys and girls to be loved nurtured and cherished.
- Thanks to Mama Amelia, these children were given the basic necessities of food, shelter and clothing, which they would otherwise not have enjoyed. She personally saw to their health, education, and religious instruction. But more than that, they were given the love, care and affection of a real parent.
- Today the Boys' Town and Girls Home continue s to be a haven for around 70 homeless children. Despite her advanced age, Amelia continues to provide them with a good life and secures for them a better future.
- In addition, Amelia also headed the Olongapo-Iba Catholic Women's League and is the Chairman of the Philippine National Red Cross in Olongapo.
- Amelia also made her mark in the field of business and entrepreneurship. Before her husband's entry into politics, she built Olongapo's first centrally air-conditioned hotel, a chain of restaurants, cinemas and a supermarket. All these were named "Admiral."
- More than being a public servant, a civic leader, a successful businesswoman and a dedicated wife, Amelia is a devoted mother.
- Her happy union with James Sr. produced 5 children, namely: Veronica Gordon-Lorenzana; Barbara Gordon-delos Reyes; Cecille Gordon-Mullen; Richard Gordon and James Gordon, Jr.
- Veronica or Onnie is successful in her hotel and resort business - White Rock chain of Hotel and Resort and married to George Lorenzana a leading businessman in the food industry. Barbara or Bai ha been successful in building her restaurant chain and catering service and is married to Antonio delos Reyes a leader of the Catholic laity closely associated with Cardinal Jaime Sin. Cecille who also owns her cakes and catering service is now in the US and is married to John Mullen who works in the United Nations.
- Amelia's two sons have inherited her and her husband's passion for public service. Richard or Dick is presently serving his country as a member of the Cabinet being Secretary of Tourism having been the founding Chair of the Subic Bay Metropolitan Authority. He pioneered the bases conversion after the Americans left in 1992. Dick was Mayor of Olongapo from 1980-1994 transforming its sin city image to a model for the entire country. Previously, he was the youngest delegate to the 1971 Constitutional Convention. His wife Kate is on her third term as Mayor of Olongapo and has also served as Congresswoman of the 1st District of Zambales.
- Meanwhile, youngest son, James or Bong was a successful businessman making his mark in broadcasting. In 1994, he was appointed as Councilor of Olongapo by then President Ramos. In 1995 he ran and won as Congressman of the 1st District of Zambales. He is now on his third term and Chair of the Bases Oversight Committee in Congress.
- In addition to their 2 sons and 3 daughter, Mama Amelia and her husband also took under their wings two more children - Imelda Deza and Donald Fisher, giving them the same love and care as any child could hope for. Imelda, a nurse now lives in the US and is happily married to Rene a Doctor. Donald on the other hand is engaged in a small business and happily living with his wife Ellen delos Reyes in the Philippines.
- Victor Hugo once wrote that "a mothers arms are made of tenderness and sweet sleep blesses the child who lies therein". Now at the ripe age of 84, Amelia's arms continue to be felt by her children, her 21 grandchildren, by her foster children and indeed by the City of Olongapo.

Gordon’s Goal

"Who can best promote the beautiful places and culture of the Philippines than Filipinos themselves?"

With that single question, Philippine Tourism Secretary Richard Gordon has launched a massive program to sell the Philippines, tapping millions of his countrymen living or working all over the globe to help him revitalize the country's tourism industry and in the process, improve local economy.

"We have launched this program called Volunteer 12, anchored on the strength of the millions of Filipinos all over the world to promote our country and invite their friends to wonderful Philippine tourist destinations," Gordon said. Gordon is optimistic that visitor arrivals in the Philippines will "gain favorable ground" with the help of an estimated seven million overseas-based Filipinos.

This, despite the downtrend in the global tourism industry following the September 11 attacks and a paltry sum for a budget. In fact, the Philippine government, through its Tourism Department, has turned to volunteerism in order to augment the high cost of advertising and promotions.

"Admittedly, promotions is very vital in the tourism industry. But we are faced with budgetary constraints and so, we have thought of tapping the support of Filipinos all over the world to become partners of the Philippine government in promoting the country," Gordon explains.

Appealing too, to the "hero" in every Filipino overseas, Gordon emphasizes that this is an opportune time to help the homeland. According to him, the Philippines earns an estimated U.S.$ 1,076 from every tourist, which creates a ripple effect across various sectors of the economy. Gordon points out that tourism serves as an important catalyst to improve the lives of ordinary Filipinos such as taxi drivers, farmers, fishermen and the like.

And with more than 7,100 islands to hop about and frolic in, tourists are treated to countless diverse adventures when they do come and visit. From scuba diving in the Apo reefs, to trekking near the crater of Mt. Pinatubo, to cruising in the rivers of Bohol island or simply enjoying the unique culture, Gordon is certain that even a few days' visit will convince foreigners that the Philippines is virtually a paradise.

To address the issue of security, Gordon is implementing a set of measures for both the country's metropolitan areas and tourist destinations in the countryside. According to Gordon, more than a thousand police officers are now patrolling Metro Manila's top tourist attractions and places frequented by trourists. Places under strict guarding include Ermita, malate, Intramuros, Makati, the domestic and international airports, all street corners from the airports up to the Magallanes interchange, C-5 up to the Pasig River, among others.

Aside from Metro Manila, Gordon says policemen are now posted in the country's top tourist destinations including Boracay, Palawan, Cebu, Bohol, Davao, Baguio City, Ifugao Province, Vigan and Ilocos Norte. With Gordon at the helm of the country's tourism department, the Philippine government is determined to provide a blueprint for tourists' protection in every destination.

The security plan involves the cooperation of ordinary citizens, as well as the sharing of crucial resources such as patrol boats and helicopters among resort operators in clusters of islands. The tourism chief also says hotel owners and general managers of five-star hotels all over the country have expressed their support for the effort and will work with the government to ensure the safety of their guests.

Believing that a tourist's first impression of the Philippines is a reflection of his experience upon arrival at the airport, Gordon also batted for the strict implementation of the public utility vehicle system at the Ninoy Aquino International Airport (NAIA) starting last February.

Designed to improve the Philippine transportation system by instilling discipline and professionalism in public utility vehicle drivers, Gordon now assures all incoming visitors that service at the NAIA would be "fast, friendly and efficient." The new system requires taxi drivers to wear uniforms and body numbers so that the public can imeediately identify "errant" taxi drivers. Passengers are assured that the vehicles are roadworthy and in good condition based on annual inspections conducted by Gordon's deprtment. The system is also geared towards eliminating crimes such as overcharging, trip-cutting and refusal to accept passengers. Passengers are protected from abusive taxi drivers because operators are accountable, while drivers and vehicles are easily identifiable.

Commercial vendors meanwhile, have made a commitment to include in their code of vending operations a provision that they will cooperate in efforts to apprehend worng-doers within their vending sites, Gordon reveals. He adds that operators have indicated their willingness to monitor suspicious individuals and report crimes within their areas of business.

Gordon has also embarked on the rehabilitation of major airports in the country to meet international standards for aviation, hoping that the emergence of more world-class airports will make destinations outside the metropolis more accessible to tourists. Using a "hubs and spokes" blueprint, the system identifies major international gateways as the "hubs" and its outlying destinations as the "spokes." According to Gordon, this approach allows tourism centers to progress and respond to particular needs of travelers, making travel to and from the hub to the spokes more efficient.

In Manila, the completion of the $500-million Ninoy Aquino International Airport (NAIA) Terminal 3 this year will enable it to efficiently serve 10 million passengers per year. In Angeles City, the 2,500-hectare Clark International Airport, now renamed Diosdado Macapagal International Airport, can handle a growing number of commercial flights with a fixed-based operations terminal in place. Kalibo airport can accomodate day and night landing of big jets carrying tourists and businessmen from Asia and western countries headed for Boracay, one of the world's best beaches. In the Visayas, Tacloban's airport is getting a 3.8-billion peso make-over, to enhance its capability to respond to growing air traffic. Six other airports are also up for modernization: Puerto Princesa, Cotabato, Dipolog, Pagadian and Sanga-sanga.

The renewed vigor that is breathing life into the country's tourism industry is reflective of the man who now heads the department that has been burdened in the past by budgetary constraints, domestic terrorism and lack of adequate infrastructure.

If Richard Gordon seems undaunted by the enormity of the task, that's because Gordon has had extensive experience in overcoming challenges and obstacles that most men of lesser stuff would normally buckle under.

Richard Gordon is best known for leading the successful conversion of Subic from a naval facility into the Philippines' premier trade zone in the Ô90s when the U.S. navy withdrew its forces ending 94 years of military presence in the country.

His father James L. Gordon was the founder of Olongapo and its first elected municipal mayor. Likewise, his mother Amelia J. Gordon was the first mayor of Olongapo when it became a city.

Richard Gordon went to high school at the Ateneo de Manila and received a bachelor's degree in History and Government also at the Ateneo. Eventually he went on to study law at the University of the Philippines (UP) where he graduated in 1975.

He earned his spires as an associate at the ACCRA Law Office in 1975. At 24, and while still a sophomore law student at U.P., Gordon was the youngest delegate to the 1971 Constitutional Convention. It was during this time that the young Gordon envisioned the idea of a freeport like Hong Kong and Singapore as the alternative to the U.S. facility in Subic Bay in Olongapo, after witnessing the displacement of Filipino workers during the U.S. Navy pull-out at Sangley Point in Cavite that same year.

Following family tradition, Gordon, too, became Mayor of Olongapo from 1980 to 1993 earning the distinction of being the youngest ever elected to the office. As mayor of Olongapo, he drafted a joint use plan of Subic Bay by the U.S. and Philippine governments, with commercial enterprises eventually phasing in as the U.S. Navy withdrew from the base. In 1992, with the impending withdrawal of the U.S. navy from the Philippines after the Philippine Senate rejected a treaty extension, Gordon led a congressional lobby to convert the facilities in Subic and Clark into economic enclaves.

From 1992-1998 he was the Founding Chairman and Administrator of the Subic Bay Metropolitan Authority (SBMA), a brainchild of his that gave new life to the city after the dismantlement of the US Military Bases in 1991.

As founding Chairman and administrator of the SBMA, Gordon inspired an army of 8,000 volunteers who protected and preserved $8-billion facility and successfully transformed it into what is now known as the Philippines' premier investment hub the venue for the APEC Leaders Summit in 1996. By 1998, Subic had become the site of 300 multi-national corporations, including Federal Express, Coastal Petroleum, Acer computers and Thompson Audio, which provided an estimated 70,000 jobs and almost $3-billion in investments.

Gordon has been invited to share this experience in base conversions and volunteerism by governments that host or have military facilities such as Panama, Iran, Vietnam, Okinawa in Japan, Guam in the U.S., and by the World Bank during the 2nd World Competitive Cities Congres in Washington D.C. He has also shared his views on politics and the economy in Asia at the Georgetown University Leadership Seminars in 1986; the Stanford University Asia-Pacific Roundtable Regional Conferences (1994 and 1997); the Asia Society Conferences (1993 and 1997); the 6th Asia-Regional Conference of the International Association of Volunteer Effort in Seoul, South Korea (1996); the Pacific Rim Forum in Hong Kong; the World Economic Forum in Davos, Switzerland (1996), and the U.S. Business Council Convention in Williamsburg, Virginia in 1997.

He is also known for transforming Olongapo's "Sin City" image into the Philippines' model city through innovative yet simple programs involving an active citizenry in solving crime, ensuring police accountability, efficient garbage collection, proper health and sanitation and orderly transport and traffic.

As an active volunteer himself and officer of the Red Cross in a disaster-prone country, Gordon personally led numerous relief and rescue operations. These include earthquakes that hit Manila, Cabanatuan and Baguio in Luzon, typhoons and floods that razed Silay in Negros Occidental and Ormoc, Leyte in the Visayas, volcanic eruptions of Mt. Mayon and the 1991 eruption of Mt. Pinatubo, when he led thousands of Aeta aborigines to safety. Last year, Gordon, with the local Red Cross chapter of Basilan in Mindanao, arranged without ransom the release of 18 Filipino hostages from the Abu Sayyaf. Gordon also assisted the local Red Cross during a fire that razed the PICC and Q.C. Manor last year.

For his efforts and contributions to public service, Gordon has received numerous awards and recognition. The University of the Philippines recognized him as an Outstanding Alumnus in Public Administration in 1984, and later bestowed on him the highest recognition as its Most Distinguished Alumnus for 1997. He was named one of the Ten Outstanding Young Men (TOYM) in 1982 and was the youngest recipient of the Outstanding Filipino (TOFIL) award in 1996. Asahi Shimbun honored him as one of the 50 Young Leaders of Asia in 1994; Asiaweek named him one of the 20 Great Asians for the Future in its 20th anniversary issue, while NHKTV featured him as one of Asia's Who's Who in 1995.

He is married to Kate Gordon, who is currently mayor of Olongapo.

Standoff at Subic

A standoff over control of the Subic free port in the Philippines has ended after nine weeks, but the incident marred the start of President Joseph Estrada's administration. Estrada succeeded in ousting Richard Gordon as director of the free port, which was established on the premises of a former U.S. naval base.

Gordon accepted defeat and agreed to relinquish control after the Supreme Court rejected his petition to prevent Estrada from forcing him out. More than 100 people were injured last month when troops stormed the Subic administration building, which Gordon's supporters had seized.

Gordon was mayor of the adjacent city of Olongapo when the United States vacated the naval base in 1992 as a result of the Philippine Senate's refusal to renew an agreement on use of the base. Gordon had wanted the Navy to stay because the base was the main prop of the local economy. Estrada, then a senator, opposed extension of the bases agreement.

Gordon subsequently led a successful effort to convert the base into an industrial zone and free port and to attract foreign investors to the facility. It has become one of the brightest spots in the Philippine economy.

But Gordon was an opponent of Estrada, and the newly elected president decided to replace Gordon with his own appointee. Gordon is widely recognized as the key figure in the success of the Subic free port and his removal for political reasons could discourage investors. The burden of proof is now on Estrada to demonstrate that what looks like politics as usual isn't quite as bad as it seems

Filipino American Relation

I AM SITTING IN A RICHLY paneled, book-lined greeting room inside historic Malacanang Palace, waiting to interview Fidel V. Ramos, the 12th president of the Republic of the Philippines. I have a question to ask him that is vitally important to America's future in Asia:

As Asia changes. can the U.S. still count the Philippines as an ally?

The last time I met with Ramos was in 1987. I was U.S. Secretary of the Navy. He was chief of staff of the Philippines' armed forces. A year before, the Philippines had gone through the trauma of what they now call the "People Power Revolution," ousting the martial-law government of Ferdinand Marcos. Ramos had been a key player in that revolution, and it was clear to me that his future was larger than his role as the nation's chief military officer.

The Philippines was a different country following the chaotic revolution. Its economic growth was at a standstill. Filipinos could be seen living in boxes and sleeping in makeshift hammocks in trees along Manila Bay. The U.S. presence was most visible in its military installations at Subic Bay and Clark Air Force Base, which had been a part of the Philippines landscape for nearly 90 years.

At that time, the Soviet Union kept its largest fleet in the Pacific. At Vietnam's Cam Ranh Bay, the Soviets regularly based two dozen warships as well as an imposing air force. At our 1987 meeting, I had given Ramos a photograph of a Soviet MiG that was trying to intimidate a U.S. Navy aircraft in international air- space between Vietnam and the Philip- pines. My message had been simple: The Philippines should not lose sight of international dangers d1at were the consequence of its strategic location at the heart of the world's most dynamic economies.

There was no disagreement on that point, although the West Point educated general emphasized the Philippines' difficu1t domestic situation. I came away impressed and confident that he believed the Philippines ought to remain closely aligned with the U.S. I predicted upon my departure that Ramos would be president. In 1992 Filipino voters elected him to a single six-year term.

The country has prospered under his leadership. The Philippines, once the "sick man of Asia," now boasts an economic growth of 7 percent a year. Per capita income has doubled in the last decade. A recent survey by the Far Eastern Economic Review ranked the Philippines as the best place to invest among 10 Asian-Pacific nations and the country least likely to experience political upheaval. Last fall Ramos was host to 18 world leaders, including President Clinton, at the Asia-Pacific Economic Cooperation forum overlooking the former U.S. Navy base at Subic Bay.

These advances have taken place in a dramatically altered international climate. The U.S. bases have been gone from Subic and Clark for five years. The Russians are no longer in force in Cam Ranh Bay. But the lowered U.S. presence has been matched by a looming threat: an energized and potentially expansionist China. The entire region is nervous and unsure of what the future holds. A large factor in the uncertainty is whether the U.S. in- tends to hold fast to its Asian interests.

These questions have particular resonance among the 70 million people of the Philippines. On the one hand, they are now adamant about showing their independence from the U.S.; on the other, they are proud of the role they have played as our friend and ally in World War II, Korea, Vietnam and the Cold War. China has been aggressively growing its military, particularly its naval forces. If China were to increase its bullying throughout the region, the willingness of "second-tier" countries such as the Philippines to join the U.S. in facing down such moves would be essential.

President Ramos enters the briefing room and greets me. He takes his seat at a wide wooden desk into which a glowing computer screen has been built. At 69, he is a pleasant, intense man whose seriousness is offset by dry humor and a pixie grin. Like most Filipinos, he has strong personal attachments to the U.S. But when asked about the U.S. and the Philippines as strategic partners, Ramos deflects the question.


The greatest continuing benefit of a strong relationship with the U.S., he insists, is trade. "The U.S. is our No.1 trading partner," he declares, "still our No.1 investor." Pressed, he volunteers that the other major connection between the two countries is "the people factor."

"Filipino-Americans are our largest overseas population," he says. "Filipinos of all ages love the United States. Unlike the Spanish [who colonized the Philippines for nearly 400 years], the U.S. put a nationwide educational system in place and emphasized the teaching of English."

Ramos is being coy, but he is not wrong on either count. Despite recent large in- vestments by Japanese and Chinese companies, the U.S. accounts for 33 percent of the Philippines' exports, 20 percent of its imports. U.S. companies also have ear- marked $12 billion for investment in the next five years. And the "people factor" is enormous. An estimated 30,000 Americans visit the Philippines each month. And Americans of Filipino descent have become the largest Asian-American population, now about 2 million, the U.S. ambassador to the Philippines told me.

But Ramos declines to comment on U.S.--Philippines security interests. Asked about the threat brought by China, he anchors himself in Asia. He mentions the growing importance of the Association of Southeast Asian Nations (ASEAN) and concludes by saying, "We hope all the players will continue to be engaged. We are in the middle of all this, geographically and otherwise, and we must take a balancing position. The big players may have their competing interests, but we want to see stability."

Ramos' insistence on neutrality represents either careful diplomacy designed not to arouse the Chinese or a reluctance to see the Chinese threat for what it is. Either way, it sends a message that future Chinese aggression will be viewed as a "great power" issue rather than a regional concern.

If our alliance is weakening, it is because American government action is not matching the efforts of American business in this vital region, while the energy of other governments has increased. The U.S. military rarely operates in the Philippines anymore, and American diplomacy has been markedly uneven as it affects our national interests in the entire region.

By contrast, the day I arrived in Manila, the Chinese defense minister was wrapping up a lengthy visit by announcing a plan for future cooperation on defense issues. And Ramos-who last year performed the extraordinary feat of bringing internationally backed Muslim secessionists on the island of Mindanao into a substantive peace process-was leaving after our interview on a trip that would include India as well as key Muslim nations from Pakistan to Bahrain.

What of the future? At present, Ramos is precluded from running for reelection, and his term will expire next year. Curious, I posed the same questions to two younger leaders, both viewed to be future presidential candidates. Roy Golez is a U.S. Naval Academy alumnus who last year was named by the influential Philippines Free Press as the country's out- standing congressman. Richard Gordon is the chairman of the Subic Bay Metropolitan Authority, a free-trade zone situated at the former U.S. Navy base.

Golez, 50, is a key ally of Ramos'. He was only 34 when Ferdinand Marcos selected him to be postmaster general. He aligned himself with Ramos during the 1986 revolution and now heads the key congressional committee that oversees the national police and the fight against crime.

Proud of his American ties, Golez nonetheless echoes Ramos on U.S.- Philippines relations. The greatest benefit of this relationship, he asserts, is trade, although the Philippines is also "looking at tie-ups with giants emerging in such countries as India." Stating that "sentimental reasons" lead many Filipinos to view the U.S. as its most important strategic partner, Golez insists, "We must cope with the realities. Japan is very visible, with all its products dominating the market. The proximity of China, Taiwan and ASEAN and Middle East countries gives us both interaction and opportunities."

How does he view the Chinese threat? "With caution," says Golez. "It's uncomfortable having a giant close to you." But then he retreats to a historically inaccurate comparison- "China has no history of expansion and imperialism, unlike Japan and Western powers"-and predicts that China will be "a big but friendly, polite neighbor."

Richard Gordon is less circumspect. Gordon, 51, grew up in Olongapo, bordering the former U.S. base at Subic Bay. His grandfather was an American soldier here who never went home. His father was the first elected mayor of Olongapo and was killed in 1967 in a political assassination. Later his mother, and then Gordon himself, was elected to the job. When the U.S. Navy left Subic, resulting in the abrupt un- employment of 42,000 Filipinos, Gordon led a group of volunteers who negotiated to turn Subic into a free- trade zone. Today Gordon oversees the vast complex, where more than 150 companies have now signed on.

Rightly taking credit for Subic's new direction, Gordon says it has resulted in "a calmer, stronger relationship" between the U.S. and his country: "There are fewer things to blame on the U.S. when agitators wish to cause trouble." At the same time, he is upbeat about the contribution of the former U.S. bases to regional peace: "The bases provided peace and prosperity for the entire region and contributed to winning the Cold War."

Gordon is adamant that the U.S. remain a Pacific military power. "The Philippines has no real military capability," he says. "China's record on human rights and the growth of its military trouble me. If the U.S. pulls out of Okinawa, it will put the entire Asian- Pacific region at risk. Either a remilitarized Japan or an expanding China would be tempted to fill the vacuum."

In these leaders, as with almost every Filipino, one finds an affection for the U.S. and a desire to continue our unique historical relationship. President Ramos speaks of the "people factor." Congressman Golez predicts that "political and cultural forces" between our two nations will "become even stronger with the years." But it's Chair- man Gordon who most accurately defines the problem: "The relationship between Americans and Filipinos remains incredibly strong. What is lacking right now are the same strong ties between our governments."

Contributing Editor James Webb is a former US Secretary of the Navy, and a recipient of the Navy Cross and the Silver Star for his service in Vietnam. He is the author of four novels, including the Vietnam classic "Fields of Fire." A frequent traveler to East Asia, he currently is working on a novel about the Philippines in World War II. With the increase in concern over the military and economic growth of China and its effect on the Asian-Pacific nations, we asked Webb to report on the significance of the Philippines, one of our strongest allies in the region, since the U.S. has reduced its military presence there.

SPECIAL ECONOMIC ZONE ACT OF 1995

[Republic Act No. 7916]


CHAPTER 1
PURPOSES AND OBJECTIVES; ESTABLISHMENT AND NATURE OF SPECIAL ECONOMIC ZONES; COORDINATION WITH OTHER SIMILAR SCHEMES

SECTION 1. Title. - This act shall be known and cited as "The Special Economic Zone Act of 1995."

SECTION 2. Declaration of Policy. - It is the declared policy of the government to translate into practical realities the following State policies and mandates in the 1987 Constitution, namely:

a)"The State recognizes the indispensible role of the private sector, encourages private enterprise, and provides incentives to needed investments." (Sec. 20, Atr. II)

b)"The State shall promote the preferential use of Filipino labor, domestic materials and locally produced goods, and adopt measures that help make them competitive." (Sec. 12, Art. XII)
In pursuance of these policies, the government shall actively encourage, promote, induce and accelerate a sound and balanced industrial, economic and social development of the country in order to provide jobs to the people especially those in the rural areas, increase their productivity and their individual and family income, and thereby improve the level and quality of their living condition through the establishment, among others, of special economic zones in suitable and strategic locations in the country and through measures that shall effectively attract legitimate and productive foreign investments.

SECTION 3. Purposes, Intents and Objectives. - It is the purpose, intent and objective of this Act:
a)To establish the legal framework and mechanisms for the integration, coordination, planning and monitoring of special economic zones, industrial estates/parks, export processing zones and other economic zones;

b)To transform selected areas in the country into highly developed agro-industrial, commercial, tourist, banking investment, and financial centers, where highly trained workers and efficient services will be available to commercial enterprises;

c)To promote the flow of investors, both foreign and local, into special economic zones which would generate employment opportunities and establish backward and forward linkages among industries in and around the economic zones;

d)To stimulate the repatriation of Filipino capital by providing attractive climate and incentives for business activity;

e)To promote financial and industrial cooperation between the Philippines and industrialized countries through technology-intensive industries that will modernize the country's industrial sector and improve productivity levels by utilizing new technological and managerial know-how; and

f)To vest the special economic zones on certain areas thereof with the status of a separate customs territory within the framework of the Constitution and the national sovereignty and territorial integrity of the Philippines.
SECTION 4. Definition of Terms. - For purposes of this Act, the following definitions shall apply to the following terms:
a)"Special economic zones (SEZ)" - hereinafter referred to as the ECOZONES, are selected areas with highly developed or which have the potential to be developed into agro-industrial, industrial tourist/recreational, commercial, banking, investment and financial centers. An ECOZONE may contain any or all of the following: industrial estates (IEs), export processing zones (EPZs), free trade zones, and tourist/recreational centers.
b)"Industrial estate (IE)" - refers to a tract of land subdivided and developed according to a comprehensive plan under a unified continuos management and with provisions for basic infrastructure and utilities, with or without pre-built standard factory buildings and community facilities for the use of the community of industries.

c)"Export processing zone (EPZ)" - a specialized industrial estate located physically and/or administratively outside customs territory, predominantly oriented to export production. Enterprises located in export processing zones are allowed to import capital equipment and raw materials free from duties, taxes and other import restrictions.

d)"Free trade zone" - an isolated policed area adjacent to a port of entry (as a seaport) and/or airport where imported goods may be unloaded for immediate transshipment or stored, repacked, sorted, mixed, or otherwise manipulated without being subject to import duties. However, movement of these imported goods from the free-trade area to a non-free-trade area in the country shall be subject to import duties.

Enterprises within the zone are granted preferential tax treatment and immigration laws are more lenient.

SECTION 5. Establishment of ECOZONES. - To ensure the viability and geographic dispersal of ECOZONES through a system of prioritization, the following areas are initially identified as ECOZONES, subject to the criteria specified in Section 6:
a)So much as may be necessary of that portion of Morong, Hermosa, Dinalupihan, Orani, Samal, and Abucay in the Province of Bataan;

b)So much as may be necessary of that portion of the municipalities of Ibaan, Rosario, Taysan, San Jose, San Juan, and cities of Lipa and Batangas;

c)So much as may be necessary of that portion of the City of Cagayan de Oro in the Province of Misamis Oriental;

d)So much as may be necessary of that portion of the City of Iligan in the Province of Lanao del Norte;

e)So much as may be necessary of that portion of the Province of Saranggani;

f)So much as may be necessary of that portion of the City of Laoag in the Province of Ilocos Norte;

g)So much as may be necessary of that portion of Davao City and Samal Island in the Province of Ilocos Norte;

h)So much as may be necessary of that portion of Oroquieta City in the Province of Misamis Occidental;

i)So much as may be necessary of that portion of Tubalan Cove, Malita in the Province of Davao del Sur;

j)So much as may be necessary of that portion of Baler, Dinalungan and Casiguran including its territorial waters and islets and its immediate environs in the Province of Aurora;

k)So much as may be necessary of that portion of cities of Naga and Iriga in the Province of Camarines Sur, Legaspi and Tabaco in the Province of Albay, and Sorsogon in the Province of Sorsogon;

l)So much as may be necessary of that portion of Bataan Island in the province of Batanes;

m)So much as may be necessary of that portion of Lapu-lapu in the Island of Mactan, and the municipalities of Balamban and Pinamungahan and the cities of Cebu and Toledo and the Province of Cebu, including its territorial waters and islets and its immediate environs;

n)So much as may be necessary of that portion of Tacloban City;

o)So much as may be necessary of that portion of the Municipality of Barugo in the Province of Leyte;

p)So much as may be necessary of that portion of the Municipality of Buenavista in the Province of Guimaras;

q)So much as may be necessary of that portion of the municipalities of San Jose de Buenavista, Hamtic, Sibalom, and Culasi in the Province of Antique;

r)So much as may be necessary of that portion of the municipalities of Catarman, Bobon and San Jose in the Province of Northern Samar, the Island of Samar;

s)So much as may be necessary of that portion of the Municipality of Ternate and its immediate environs in the Province of Cavite;

t)So much as may be necessary of that portion of Polloc, Parang in the Province of Maguindanao;

u)So much as may be necessary of that portion of the Municipality of Boac in the Province of Marinduque;

v)So much as may be necessary of that portion of the Municipality of Pitogo in the Province of Zamboanga del Sur;

w)So much as may be necessary of that portion of Dipolog City-Manukan Corridor in the Province of Zamboanga del Norte;

x)So much as may be necessary of that portion of Mambajao, Camiguin Province;

y)So much as may be necessary of that portion of Infanta, Real, Polillo, Alabat, Atimonan, Mauban, Tiaong, Pagbilao, Mulanay, Tagkawayan, and Dingalan Bay in the Province of Quezon;

z)So much as may be necessary of that portion of Butuan City and the Province of Agusan del Norte, including its territorial waters and islets and its immediate environs;

aa)So much as may be necessary of that portion of Roxas City including its territorial waters and islets and its immediate environs in the Province of Capiz;

bb)So much as may be necessary of that portion of San Jacinto, San Fabian, Mangaldan, Lingayen, Sual, Dagupan, Alaminos, Manaoag, Binmaley in the Province of Pangasinan;

cc)So much as may be necessary of that portion of the autonomous region;

dd)So much as may be necessary of that portion of Masinloc, Candelaria and Sta. Cruz in the Province of Zambales;

ee)So much as may be necessary of that portion of the Palawan Island;

ff)So much as may be necessary of that portion of General Santos City in South Cotabato and its immediate environs;

gg)So much as may be necessary of that portion of Dumaguete City and Negros Oriental, including its territorial waters and islets and its immediate environs.

hh)So much as may be necessary of that portion of the Province of Ilocos Sur;

ii)So much as may be necessary of that portion of the Province of La Union;

jj)So much as may be necessary of that portion of the Province of Laguna, including its territorial waters and its immediate environs;

kk)So much as may be necessary of that portion of the Province of Rizal;

ll)All existing export processing zones and government-owned industrial estates; and

mm) Any private industrial estate which shall voluntarily apply for conversion into an ECOZONE.
This areas shall be developed through any of the following schemes:
(i)Private initiative;

(ii)Local government initiative with the assistance of the national government; and

(iii)National government initiative.
These metes and bounds of each ECOZONE are to be delineated and more particularly described in a proclamation to be issued by the President of the Philippines, upon the recommendation of Philippine Economic Zone Authority (PEZA), which shall be established under this Act, in coordination with the municipal and/or city council, National Land Use Coordinating Committee and/or the Regional Land Use Committee.

SECTION 6. Criteria for the Establishment of Other ECOZONES. - In addition to the ECOZONES identified in Section 5 of this Act, other areas may be established as ECOZONES in a proclamation to be issued by the President of the Philippines subject to the evaluation and recommendation of the PEZA, based on a detailed feasibility and engineering study which must conform to the following criteria:
a)The proposed area must be identified as a regional growth center in the Medium-Term Philippine Development Plan or by the Regional Development Council;

b)The existence of required infrastructure in the proposed ECOZONE, such as roads, railways, telephones, ports, airports, etc., and the suitability and capacity of the proposed site to absorb such improvements;

c)The availability of water source and electric power supply for use of the ECOZONE;

d)The extent of vacant lands available for industrial and commercial development and future expansion of the ECOZONE as well as lands adjacent to the ECOZONE available for development of residential areas for the ECOZONE workers;

e)The availability of skilled, semi-skilled and non-skilled trainable labor force in and around the ECOZONE;

f)The area must have a significant incremental advantage over the existing economic zones and its potential profitability can be established;

g)The area must be strategically located; and

h)The area must be situated where controls can easily be established to curtail smuggling activities.
The areas which do not meet the foregoing criteria may be established as ECOZONES: Provided, That the said area shall be developed only through local government and/or private sector initiative under any of the schemes allowed in Republic Act. No. 6957 (the build-operate-transfer law), and without any financial exposure on the part of the national government: Provided, further, That the area can be easily secured to curtail smuggling activities: Provided, finally, That after five (5) years the area must have attained a substantial degree of development, the indicators of which shall be formulated by the PEZA.

SECTION 7. ECOZONE to be a Decentralized Agro-Industrial, Industrial, Commercial/Trading, Tourist, Investment and Financial Community.- Within the framework of the Constitution, the interest of national sovereignty and territorial integrity of the Republic, ECOZONE shall be developed, as much as possible, into a decentralized, self-reliant and self-sustaining industrial, commercial/trading, agro-industrial, tourist, banking, financial and investment center with minimum government intervention. Each ECOZONE shall be provided with transportation, telecommunications, and other facilities needed to generate linkage with industries and employment opportunities for its own inhabitants and those of nearby towns and cities.
The ECOZONE shall administer itself on economic, financial, industrial, tourism development and such other matters within the exclusive competence of the national government. The ECOZONE may establish mutually beneficial economic relations with other entities within the country, or, subject to the administrative guidance of the Department of Foreign Affairs and/or the Department of Trade and Industry, with foreign entities or enterprises. Foreign citizens and companies owned by non-Filipinos in whatever proportion may set up enterprises in the ECOZONE, either by themselves or in joint venture with Filipinos in any sector of industry, international trade and commerce within the ECOZONE. Their assets, profits and other legitimate interests shall be protected: Provided, That the ECOZONE through the PEZA may require a minimum investment for any ECOZONE enterprise in freely convertible currencies: Provided, further, That the new investments shall fall under the priorities, thrusts and limits provided for in this Act.

SECTION 8. ECOZONE to be Operated and Managed as Separate Customs Territory.- The ECOZONES shall be managed and operated by the PEZA as separate customs territory.

The PEZA is hereby vested with the authority to issue certificates of origin products manufactured or processed in each ECOZONE in accordance with the prevailing rules of origin, and the pertinent regulations of the Department of Trade and Industry and/or the Department of Finance.

SECTION 9. Defense and Security. - The defense of the ECOZONE and the security of its perimeter fence shall be the responsibility of the national government in coordination with the PEZA. Military forces sent by the national government for the purpose of defense shall not interfere in the internal affairs of any of the ECOZONE and expenditure for these military forces shall be borne by the national government. The PEZA may provide and establish the ECOZONES' internal security and firefighting forces.

SECTION 10. Immigration. - Any investor within the ECOZONE whose initial investment shall not be less than One hundred fifty thousand dollars ($150,000), his/her spouse and dependent children under twenty-one (21) years of age shall be granted permanent resident status within the ECOZONE. They shall have freedom of ingress and egress to and from the ECOZONE without any need of special authorization from the Bureau of Immigration.

The PEZA shall issue working visas renewable every two (2) years to foreign executives and other aliens, possessing highly-technical skills which no Filipino within the ECOZONE possesses, as certified by the Department of Labor and Employment. The names of aliens granted permanent residents status and working visas by the PEZA shall be reported to the Bureau of Immigration within thirty (30) days after issuance thereof.

CHAPTER II
GOVERNING STRUCTURES
SECTION 11. The Philippine Economic Zone Authority (PEZA) Board. - There is hereby created a body corporate to be known as the Philippine Economic Zone Authority (PEZA) attached to the Department of Trade and Industry. The Board shall have a director general with the rank of a department undersecretary who shall be appointed by the President. The director general shall be at least forty (40) years of age, of proven probity and integrity, and with a degree in economics, business, public administration, law, management or its equivalent.

The director general shall be assisted by three (3) deputy directors general each for policy and planning, administration and operations, who shall be appointed by the PEZA Board, upon the recommendation of the director general. The deputy directors general shall be at least thirty-five (35) years, old, with proven probity and integrity and with a degree in economics, business, public administration, law, management or its equivalent. They must have career executive service eligibility.

The Board shall be composed of the director general as ex officio chairman with eight(8) members as follows: the Secretaries or their representatives of the Department of Trade and Industry, the Department of Finance, the Department of Labor and Employment, the Department of the Interior and Local Government, the National Economic and Development Authority, and the Bangko Sentral ng Pilipinas, one (1) representative from the investors/business sector in the ECOZONE.

The existing Export Processing Zone Authority (EPZA) created under Presidential Decree No. 66 shall evolve into the PEZA in accordance with the guidelines and regulations set forth in an executive order issued for this purpose.

Members of the Board shall receive a per diem of not less than the amount equivalent to the representation and transportation allowances of the members of the Board and/or as may be determined by the Department of Budget and Management: Provided, however, That the per diem collected per month does not exceed the equivalent of four (4) meetings.

SECTION 12. Functions and Powers of PEZA Board.- The Philippine Economic Zone Authority (PEZA) Board shall have the following functions and powers:

a)Set the general policies on the establishments and operations of the ECOZONES, industrial estates, export processing zones, free trade zones, and the like;

b)Review proposals for the establishment of ECOZONES based on the criteria under Section 6 and endorse the President the establishment of the ECOZONES , industrial estates, export processing zones, free trade zones and the like. Thereafter, it shall facilitate and assist in the organization of said entities;

c)Regulate and undertake the establishment, operation and maintenance of utilities, other services and infrastructure in the ECOZONE, such as heat, light and power, water supply, telecommunications, transport, toll roads and bridges, port services, etc., and to fix just reasonable and competitive rates, fares, charges and fees therefor;

d)Approve the annual budget of the PEZA and the ECOZONE development plans;

e)Issue rules and regulations to implement the provisions of this Act in so far as its powers and functions are concerned;

f)Exercise its powers and functions as provided for in this Act; and

g)Render annual reports to the President and the Congress
SECTION 13. General Powers and Functions of the Authority.- The PEZA shall have the following powers and functions:
a)To operate, administer, manage and develop the ECOZONE according to the principles and provisions set forth in this Act;

b)To register, regulate and supervise the enterprises in the ECOZONE in an efficient and decentralized manner;

c)To coordinate with local government units and exercise general supervision over the development, plans, activities and operations of the ECOZONES, industrial estates, export processing zones, free trade zones, and the like;

d)In coordination with local government units concerned and appropriate agencies, to construct, acquire, own, lease operate and maintain on its own or through contract, franchise, license, bulk purchase from the private sector and build-operate-transfer scheme or joint venture, adequate facilities and infrastructure, such as light and power sytems, water supply and distribution systems, telecommunications and transportation, buildings, structures, warehouses, roads, bridges, ports and other facilities for the operation and development of the ECOZONE;

e)To create, operate and/or contract to operate such agencies and functional units or offices of the authority as it may deem necessary;

f)To adopt, alter and use a corporate seal; make contracts, lease, own or otherwise dispose of personal or real property; sue and be sued; and otherwise carry out its duties and functions as provided for in this Act;

g)To coordinate the formulation and preparation of the development plans of the different entities mentioned above;

h)To coordinate with the National Economic and Development Authority (NEDA), the Department of Trade and Industry (DTI), the Department of Science and Technology (DOST), and the local government units and appropriate government agencies for policy and program formulation and implementation; and

i)To monitor and evaluate the development and requirements of entities in subsection (a) and recommend to the local government units or other appropriate authorities the location, incentives, basic services, utilities and infrastructure required or to be made available for said entities.
SECTION 14. Powers and Functions of the Director General. -The director general shall be the overall coordinator of the policies, plans and programs of the ECOZONES. As such, he shall provide overall supervision over and general direction to the development and operations of these ECOZONES. He shall determine the structure and the staffing pattern and personnel complement of the PEZA and establish regional offices, when necessary, subject to the approval of the PEZA Board.
In addition, he shall have the following specific powers and responsibilities:

a)To safeguard all the lands, buildings, records, monies, credits and other properties and rights of the ECOZONES;

b)To ensure that all revenues of the ECOZONE are collected and applied in accordance with its budget;

c)To ensure that the investors/firms and employees of the ECOZONES are properly discharging their respective duties;

d)To give such information and recommend such measures to the Board, as he shall deem advantageous to the ECOZONE;

e)To submit to the Board, the ongoing and proposed projects, work and financial program, annual budget of receipts, and expenditures of the ECOZONE;

f)To represent the ECOZONE in all its business matters and sign on its behalf after approval of the Board, all its bonds, borrowings, contracts, agreements and obligations made in accordance with this Act;

g)To acquire jurisdiction, as he may deem proper, over the protests, complaints, and claims of the residents and enterprises in the ECOZONE concerning administrative matters;

h)To recommend to the Board the grant, approval, refusal, amendment or termination of the ECOZONE franchises, licenses, permits, contracts, and agreements in accordance with the policies set by the Board;

i)To require owners of houses, buildings or other structures constructed without the necessary permit whether constructed on public or private lands, to remove or demolish such houses, buildings, structures within sixty (60) days after notice and upon failure of such owner to remove or demolish such house, building or structure within said period, the director general or his authorized representative may summarily cause its removal or demolition at the expense of the owner, any existing law, decree, executive order and other issuances or part thereof to the contrary notwithstanding;

j)To take such emergency measures as may be necessary to avoid fires, floods and mitigate the effects of storms and other natural or public calamities;

k)To prepare and make out plans for the physical and economic development of the ECOZONE, including zoning and land subdivision, and issue such rules and regulations which shall be submitted to the Board for its approval; and

l)To perform such other duties and exercise such powers as may be prescribed by the Board, and to implement the policies, rules and regulations set by the PEZA.
SECTION 15. Administration of Each ECOZONE.- Each ECOZONE shall be organized, administered, managed and operated by the ECOZONE executive committee composed of the following:
a)The administrator who shall be appointed by the PEZA Board upon recommendation of the director general;and

b)One (1) deputy administrator to be appointed by the Board upon recommendation of the director general.
An ECOZONE advisory body shall be created with the following members:

1.The president of the association of investors in the ECOZONE;

2.The governor of the province where the ECOZONE is located;

3.The mayor/s of the municipality/ies or city/ies where the ECOZONE is located;

4.The president of an accredited labor union in the ECOZONE;

5.The representative of the business sector in the periphery of the ECOZONE; and

6.The representative of the PEZA.
The ECOZONE advisory body shall have the following functions:
(i)Advise the ECOZONE management on matters pertaining to policy initiatives; and
(ii)Assist the ECOZONE management in settling problems arising between labor and any enterprise in the ECOZONE.

SECTION 16. Salary and Other Emoluments. - The salary of the director general shall be in accordance with the revised compensation and position classification system.
SECTION 17. Investigation and Inquiries. - Upon a written formal complaint made under oath, which on its face provides reasonable basis to believe that some anomaly or irregularity might have been committed, the PEZA or the administrator of the ECOZONE concerned, shall have the power to inquire into the conduct of firms or employees of the ECOZONE and to conduct investigations, and for that purpose may subpoena witnesses, administer oaths, and compel the production of books, papers, and other evidences: Provided, That to arrive at the truth, the investigator (s) may grant immunity from prosecution to any person whose testimony or whose possessions of documents or other evidence is necessary or convenient to determine the truth in any investigation conducted by him or under the authority of the PEZA or the administrator of the ECOZONE concerned.

SECTION 18. Prohibition Against Holding Any Other Office. - The director general, deputy directors general, administrators, officials and staff or assistants of the PEZA shall not hold any other office or employment within or outside the PEZA during their tenure, directly or indirectly, practice any profession, participate in any business, or be financially interested in any contract with, or in any franchise, or special privilege granted by the PEZA or national government, or any subdivision, agency, or instrumentality thereof, including any government-owned or controlled corporation, or its subsidiary.

SECTION 19. Disbursement of Funds. - No money shall be paid out of the funds of any ECOZONE except in pursuance of the budget as formulated and approved by the PEZA.

SECTION 20. Full Disclosure of Financial and Business Interests. - Every member of the Board of the PEZA, the director general, the deputy directors general, and their staff shall, upon assumption of office, make full disclosure of their financial and business interests.


CHAPTER III
OPERATIONS WITHIN THE ECOZONE

SECTION 21. Development Strategy of the ECOZONE. - - The strategy and priority of development of each ECOZONE established pursuant to this Act shall be formulated by the PEZA, in coordination with the Department of Trade and Industry and the National Economic and Development Authority: Provided, That such development strategy is consistent with the priorities of the national government as outlined in the medium-term Philippine development plan.

It shall be the policy of the government and the PEZA to encourage and provide incentives and facilitate private sector participation in the construction and operation of public utilities and infrastructure in the ECOZONE, using any of the schemes allowed in Republic Act. No. 6957 (the build-operate-transfer law).

SECTION 22. Survey or Resources. - The PEZA shall, in coordination with appropriate authorities and neighboring cities and municipalities, immediately conduct a survey of the physical, natural assets and potentialities of the ECOZONE areas under it jurisdiction.

SECTION 23. Fiscal Incentives. - Business establishments operating within the ECOZONES shall be entitled to the fiscal incentives as provided for under Presidential Decree No. 66, the law creating the Export Processing Zone Authority, or those provided under Book VI of Executive Order No. 226, otherwise known as the Omnibus Investment Code of 1987.

Furthermore, tax credits for exporters using local materials as inputs shall enjoy the same benefits provided for in the Export Development Act of 1994.

SECTION 24. Exemption from Taxes Under the National Internal Revenue Code. - Any provision of existing laws, rules and regulations to the contrary notwithstanding, no taxes, local and national, shall be imposed on business establishments operating within the ECOZONE. In lieu of paying taxes, five percent (5%) of the gross income earned by all businesses and enterprises within the ECOZONE shall be remitted to the national government. This five percent (5%) shall be shared and distributed as follows:

a)Three percent (3%) to the national government;

b)One percent (1%) to the local government units affected by the declaration of the ECOZONE in proportion to their population, land area, and equal sharing factors; and

c)One percent (1%) for the establishment of a development fund to be utilized for the development of municipalities outside and contiguous to each ECOZONE: Provided, however, That the respective share of the affected local government units shall be determined on the basis of the following formula:
1)Population - fifty percent (50%)
2)Land area - twenty-five percent (25%); and
3)Equal sharing - twenty-five percent (25%).
SECTION 25. Applicable National Taxes. - All income derived by persons and all service establishments in the ECOZONE shall be subject to taxes under the National Internal Revenue Code.
SECTION 26. Domestic Sales. - Goods manufactured by an ECOZONE enterprise shall be made available for immediate retail sales in the domestic market, subject to payment of corresponding taxes on the raw materials and other regulations that may be adopted by the Board of the PEZA.

However, in order to protect the domestic industry, there shall be a negative list of industries that will be drawn up by the PEZA. Enterprises engaged in the industries included in the negative list shall not be allowed to sell their products locally. Said negative list shall be regularly updated by the PEZA. The PEZA, in coordination with the Department of Trade and Industry and the Bureau of Customs, shall jointly issue the necessary implementing rules and guidelines for the effective implementation of this section.

SECTION 27. Applicability of Banking Laws and Regulations. - Existing banking laws and Bangko Sentral ng Pilipinas (BSP) rules and regulations shall apply to banks and financial institutions to be established in the ECOZONE and to other ECOZONE-registered enterprises. Among other pertinent regulations, these include those governing foreign exchange and other current account, transactions (trade and non-trade) local and foreign borrowings, foreign investments, establishment and operation of local and foreign banks, foreign currency deposit units, offshore banking units and other financial institutions under the supervision of the BSP.

SECTION 28. After Tax Profits. - Without prior Bangko Sentral approval, after tax profits and other earnings of foreign investments in enterprises in the ECOZONE may be remitted outward in the equivalent foreign exchange through any of the banks licensed by the Bangko Sentral ng Pilipinas in the ECOZONE: Provided, however, That such foreign investments in said enterprises have been previously registered with the Bangko Sentral.

SECTION 29. Eminent Domain. - The areas comprising an ECOZONE may be expanded or reduced when necessary. For this purpose, the government shall have the power to acquire, either by purchase, negotiation or condemnation proceedings, any private lands within or adjacent to the ECOZONE for:

a)Consolidation of lands for zero development purposes;

b)Acquisition of right way to the ECOZONE; and

c)The protection of watershed areas and natural assets valuable to the prosperity of the ECOZONE.
SECTION 30. Leases of Lands and Buildings. - Lands and buildings in each ECOZONE may be leased to foreign investors for a period not exceeding fifty (50) years renewable once for a period of not more than twenty-five (25) years, as provided for under Republic Act No. 7652, otherwise known as the Investors' Lease Act. The leasehold right acquired under long-term contracts may be sold, transferred or assigned, subject to the conditions set forth under Republic Act. No. 7652.
SECTION 31. Land Conversion. - Agricultural lands may be converted for residential, commercial, industrial and other non-agricultural purposes, subject to the conditions set forth under Republic Act. No.. 6657 and other existing laws.

SECTION 32. Shipping and Shipping Register. - Private shipping and related business including private container terminals may operate freely in the ECOZONE, subject only to such minimum reasonable regulations of local application which the PEZA may prescribe.

The PEZA shall, in coordination with the Department of Transportation and Communications, maintain a shipping register for each ECOZONE as a business register of convenience for ocean-going vessels and issue related certification. Ships of all sizes, descriptions and nationalities shall enjoy access to the ports of the ECOZONE, subject only to such reasonable requirement as may be prescribed by the PEZA in coordination with the appropriate agencies of the national government.

SECTION 33. Protection of Environment. - The PEZA, in coordination with the appropriate agencies, shall take concrete and appropriate steps and enact the proper measures for the protection of the local environment.

SECTION 34. Termination of Business. - Investors in the ECOZONE who desire to terminate business or operations shall comply with such requirements and procedures which the PEZA shall set, particularly those relating to the clearing of debts. The assets of the closed enterprises can be transferred and the funds can be remitted out of the ECOZONE subject to the rules, guidelines and procedures prescribed jointly by the Bangko Sentral ng Pilipinas, the Department of Finance and the PEZA.

SECTION 35. Registration of Business Enterprises. - Business enterprises within a designated ECOZONE shall register with the PEZA to avail of all incentives and benefits provided for in this Act.

SECTION 36. One Stop Shop Center. - The PEZA shall establish a one stop shop center for the purpose of facilitating the registration of new enterprises in the ECOZONE. Thus, all appropriate government agencies that are involved in registering, licensing or issuing permits to investors shall assign their representatives to the ECOZONE to attend to investor's requirements.


CHAPTER IV
INDUSTRIAL HARMONY IN THE ECOZONES

SECTION 37. Labor and Management Relations. - Except as otherwise provided in this Act, labor and management relations in the ECOZONE shall be governed by the existing Labor Code of the Philippines. Employees and personnel in the ECOZONE enterprises shall receive salaries and benefits and shall enjoy working conditions not less than those provided under the Philippine Labor Code and other relevant laws, issuances, rules and regulations of the Philippine government and the Department of Labor and Employment.

SECTION 38. Promotion of Industrial Peace. - In the pursuit of industrial harmony in the ECOZONE, a tripartite body composed of one (1) representative each from the Department of Labor and Employment, labor sector and business and industry sectors shall be created in order to formulate a mechanism under a social pact for the enhancement and preservation of industrial peace in the ECOZONE within thirty (30) days after the effectivity of this Act.

SECTION 39. Master Employment Contracts. - The PEZA, in coordination with the Department of Labor and Employment, shall prescribe a master employment contract for all ECOZONE enterprise staff members and workers, the terms of which provide salaries and benefits not less than those provided under this Act, the Philippine Labor Code, as amended, and other relevant issuances of the national government.

SECTION 40. Percentage of Foreign Nationals. - Employment of foreign nationals hired by ECOZONE enterprises in a supervisory, technical or advisory capacity shall not exceed five percent (5%) of its workforce without the express authorization of the Secretary of Labor and Employment.

SECTION 41. Migrant Worker. - The PEZA, in coordination with the Department of Labor and Employment, shall promulgate appropriate measures and programs leading to the expansion of the services of the ECOZONE to help the local governments of nearby areas meet the needs of the migrant workers.

SECTION 42. Incentive Scheme. - Ad additional deduction equivalent to one-half (1/2) of the value of training expenses incurred in developing skilled or unskilled labor or for managerial or other management development programs incurred by enterprises in the ECOZONE can be deducted from the national government's share of three percent (3%) as provided in Section 24.

The PEZA, the Department of Labor and Employment, and the Department of Finance shall jointly make a review of the incentive scheme provided in this section every two (2) years or when circumstances so warrant.

CHAPTER V
NATIONAL GOVERNMENT AND OTHER ENTITIES

SECTION 43. Relationship with the Regional Development Council. - The PEZA shall determine the development goals for the ECOZONE within the framework of national development plans, policies and goals, and the administrator shall, upon approval by the PEZA Board, submit the ECOZONE plans, programs and projects to the regional development council for inclusion in and as inputs to the overall regional development plan. SECTION 44. Relationship with Local Government Units. - Except as herein provided, the local government units comprising the ECOZONE shall retain their basic autonomy and identity. The cities shall be governed by their respective charters and the municipalities shall operate and function in accordance with Republic Act No. 7160, otherwise known as the Local Government Code of 1991.

SECTION 45. Relationship of PEZA to Privately -Owned Industrial Estates. - Privately-owned industrial estates shall retain their autonomy and independence and shall be monitored by the PEZA for implementation of incentives.

SECTION 46. Transfer of Resources. - The relevant functions of the Board of Investments over industrial estates and agri-export processing estates shall be transferred to the PEZA. The resources of government-owned industrial estates and similar bodies except the Bases Conversion Development Authority and those areas identified under Republic Act No. 7227, are hereby transferred to the PEZA as the holding agency. They are hereby detached from their mother agencies and attached to the PEZA for policy, program and operational supervision.

The Boards of the affected government-owned industrial estates shall be phased out and only the management level and an appropriate number of personnel shall be retained. Government personnel whose services are not retained by the PEZA or any government office within the ECOZONE shall be entitled to separation pay and such retirement and other benefits they are entitled to under the laws then in force at the time of their separation: Provided, That in no case shall the separation pay less than one and one-fourth (1 1/4) month of every year of service.

CHAPTER VI
MISCELLANEOUS PROVISIONS

SECTION 47. Appropriation. - Upon the effectivity of this Act, all funds of the former Export Processing Zone Authority (PEZA) shall be transferred to the newly-created Philippine Economic Zone Authority. Thereafter, any sum as may be necessary to augment its capital outlay, shall be included in the General Appropriations Act to be treated as an equity of the national government.

Additional funding shall come from the following:

a)The annual subsidies, appropriations and/or other assets of the exports processing zone, and the industrial estates and other economic areas that have been absorbed/transferred to the PEZA as mandated in this Act;

b)The proceeds from the rent of lands, buildings, and other properties of the ECOZONES concerned;

c)The proceeds from fees, charges and other revenue-generating instruments which the PEZA is authorized to impose and collect under this Act;

d)The proceeds from bonds which the PEZA authorized to float both domestic and abroad; and

e)The advance rentals, license fees, and other charges which the PEZA is authorized to impose under this Act and which an investor is willing to advance payment for.
SECTION 48. Applicability of National Laws. - National laws shall prevail vis-a-vis ECOZONE rules, regulations and standards, unless there is a clear intent in this Act or other Acts of Congress to vest the ECOZONE specific powers and privileges not otherwise allowed under existing laws.
SECTION 49. Authority of the President to Advance Initial Funding. - Subject to existing laws, the President of the Philippines is hereby authorized to advance out of the savings of the Office of the President such funds as may be necessary to effect the organization of an ECOZONE which shall be reimbursed by the PEZA at reasonable term and condition.

SECTION 50. Non-applicability on Areas Covered by Republic Act No. 7227. - This Act shall not be applicable to economic zones and areas already created or to be created under Republic Act No. 7227 or other special laws, and governed by authorities constituted pursuant thereto.

Any provision of this Act which provides benefits or privileges less than those granted or imposes obligations or burdens more onerous to special economic zones created or to be created under special laws shall not apply to them.

SECTION 51. Ipso Facto Clause. - All privileges, benefits, advantages or exemptions granted to special economic zones under Republic Act No. 7227, shall ipso facto be accorded to special economic zones already created or to be created under this Act. The free port status shall not be vested upon the new special economic zones.

SECTION 52. Separability Clause. - The provisions of this Act are hereby declared separable, and in the event one or more of such provisions or part thereof are declared unconstitutional, such declaration of unconstitutionality shall not affect the validity of the other provisions thereof.

SECTION 53. Interpretation/Construction. - The powers, authorities and functions that are vested in the Philippine Economic Zone Authority (PEZA) and the ECOZONES concerned are intended to establish decentralization of governmental functions and authority as well as an efficient and effective working relationship between the ECOZONE, the central government and the local government units.

SECTION 54. Repealing Clause. - All laws, acts, presidential decrees, executive orders, proclamations and/or administrative regulations which are inconsistent with the provisions of this Act, are hereby amended, modified, superseded or repealed accordingly.

SECTION 55. Implementing Rules and Regulations. - The Department of Trade and Industry, the National Economic and Development Authority, the Department of Finance, the Bureau of Customs, the Department of Agrarian Reform, the Department of the Interior and Local Government, the Philippine Economic Zone Authority, and the representatives from the technical staff of the Committee on Economic Affairs of both Houses of Congress shall formulate the implementing rules and regulations of this Act within ninety (90) days after its approval. Such rules and regulations shall take effect fifteen (15) days after their publication in a newspaper of general circulation in the Philippines.

SECTION 56. Transitory Provisions. - Prior to the effectivity of the implementing rules and regulations of this Act, the provisions of Presidential Decree No. 66, as amended, and its implementing rules and regulations shall remain in force.

SECTION 57. Effectivity. - This Act shall take effect upon its approval.

This Act which is a consolidation of House Bill No. 14295 and Senate bill No. 1061 was finally passed by the House of Representatives and the Senate on February 21, 1995.