AFP Modernization Act Overview

Enhance capability to protect sovereignty and territorial integrity from all threats.
Assist civilian agencies in preserving national resources in the territory and exclusive economic zone (EEZ).
Improve disaster response and protection against natural and man-made calamities.
Support law enforcement and international obligations against piracy, trafficking, smuggling, and environmental threats.
Collaborate with Philippine National Police for internal security.
Support national development.

Force restructuring: Develops a compact, modern force capable of conventional/unconventional warfare and disaster relief.
Capability development: Acquisition and upgrading of AFP equipment synchronized with phasing out obsolete assets, restricting purchases to widely used, manufacturer-offered equipment with after-sales service.
Bases/support system: Relocation and development of permanent bases with adequate support facilities, training grounds adhering to standards.
Human resource development: Strengthen patriotism, transform AFP to an external security-oriented force, improve soldiers' quality of life, and promote professionalism.
Doctrine development: Review and validation of AFP doctrines to support transition from internal to external security focus.

Naval: Focus on naval defense, amphibious operations, territorial seas defense, marine resource protection via the Coast Guard, and disaster response.
Air: Acquire multi-role aircraft, missile systems, patrol and reconnaissance, early warning, and airlift capabilities for external defense.
Ground: Enhance ground forces for defense, internal security, disaster relief, and resource protection with rapid terrain mobility.
General Headquarters: Improve command, control, communications, and information systems.

The modernization program spans 15 years; multi-year contracts' repayment may extend beyond.
The President submits to Congress an AFP modernization program within 90 days specifying AFP size, equipment, projects, schedules, and costs for legislative approval.
Annual appropriations are separate from regular DND and AFP budgets with an initial five-year ceiling of PHP 50 billion, adjustable with the GNP.

The Secretary of National Defense may enter multi-year contracts with Presidential approval, subject to laws and audit.
Contracts must include after-sales service and spare parts availability.
Preference for Filipino contractors or foreign firms that locate production in the Philippines to foster employment and technology transfer.

Emphasizes local manufacture, co-production, technology transfer, and AFP personnel training.
Incorporates foreign exchange reduction schemes such as counter trade.

A dedicated trust fund exclusively for modernization (excluding salaries) funded by appropriations, sale/proceeds from military assets, government arsenal products, and other sources.
Administered by the Secretary of National Defense under government auditing rules.

Integral to produce basic weapons and ammunition for AFP and PNP use and export surplus.
May engage in joint ventures or co-production arrangements.

The DND Secretary reports annually on unused funds and savings from austerity measures, with savings augmenting modernization funding.
The AFP Chief of Staff reports annually on modernization progress.

Equipment acquisition and contract negotiation are separate sequential steps involving service commands, AFP Weapons Systems Board, and general headquarters.
Must comply with existing procurement laws.

The President may modify the modernization program for national emergencies, reporting changes to Congress within 30 days.

Separability clause ensures unaffected provisions remain valid if others are struck down.
Repealing clause nullifies laws conflicting with this Act.
Effectivity: The Act takes effect 15 days after publication in two national newspapers.