Law Summary
Establishment of PHIVIDEC Industrial Authority
- Creation of a body corporate named PHIVIDEC Industrial Authority as subsidiary to the Philippine Veterans Investment Development Corporation
- Functions declared as both governmental and proprietary
Creation and Designation of PHIVIDEC Industrial Areas
- PHIVIDEC Industrial Areas proclaimed via Presidential Proclamations
- Public lands, foreshore, and offshore areas surveyed and transferred to the Authority for nominal consideration
- Initial Area located in Tagoloan and Villanueva, Misamis Oriental (~3,000 hectares)
- Certain foreshore and offshore areas ceded to National Steel Corp. for nominal sum
- Private rights respected until Authority’s possession; new improvements require Authority’s approval
Powers and Functions of the Authority
- Operate, administer, manage PHIVIDEC Areas and future proclaimed areas
- Construct and maintain infrastructure, factory buildings, utilities, and transport networks
- Extract and manage water resources; conduct land reclamation
- Acquire agricultural lands beyond constitutional limits
- Regulate enterprises to ensure sound development
- Construct, operate, rent, or lease port facilities and related services with fees not exceeding government rates
- Fix and collect fees, charges, rentals; issue permits and licenses
- Sell, lease, or dispose of lands and properties for industrial, housing or commercial use
- Levy real property tax; retain 75% and remit 25% to local governments with safeguards
- Grant franchises for utility and transportation within the Areas
- Enforce pollution control rules
- Exercise exclusive jurisdiction and police authority within the Areas
- Promulgate binding rules and regulations
- Recommend new industrial areas and related proclamations
- Contract indebtedness and issue bonds for project financing
- Create and operate units or offices as necessary
- Exercise corporate acts including contracts, lawsuits, and property management
Capitalization of the Authority
- Capital consists of government property contributions
- Cash contribution of PHP 200 million appropriated from the National Treasury
- Release of funds by Budget Commission as per development schedule
Governance and Management
- Managed by the Board of Directors of the Philippine Veterans Investment Development Corporation
- Board empowered to exercise governmental and proprietary functions
- Board appoints Estate Administrator or Board of Management consisting of competent veterans
Power to Contract Debt and Issue Bonds
- Authority authorized to contract loans, issue bonds, notes, debentures, and other indebtedness instruments
- Income and bonds exempt from Philippine taxes
- Government guarantees principal and interest on bonds at President’s discretion
- Priority access to foreign exchange and Central Bank resources
- Right to repurchase foreign currencies sold to Central Bank
- Competitive bidding preferences may be waived if required by creditor with local preference clauses
Tax Treatment of Merchandise
- Raw materials and supplies for export production in Areas exempt from customs duties and internal revenue taxes
- Local tax ordinances do not apply to such merchandise
- Authority and Secretary of Finance determine commodities qualified for tax exemption
Tax Exemptions for Enterprises
- Enterprises exempt from local taxes to barangay, municipality, city, or province
- Real property tax imposed by Authority, with a portion remitted to local government
Authority’s Profit and Tax Exemptions
- Authority operated for profit, with 50% profits remitted to Philippine Veterans Investment Development Corporation
- Exempt from internal revenue taxes, customs duties on capital goods, wharfage dues, and related fees
- Exemptions subject to cancellation by President upon financial self-sufficiency
Road Networks Ownership
- Road networks within Areas declared exclusive property of the Authority
- Priority access to highway special funds for road construction, maintenance, or repair
Eminent Domain Powers
- Authority can acquire property by purchase, negotiation, or expropriation for development, housing, infrastructure
- Expropriated properties may be resold or leased under terms imposed by Authority
- Proceedings conducted in Authority’s name as provided by law
Jurisdiction and Cooperation
- Courts retain jurisdiction over civil and criminal cases arising within Areas
- National government agencies and political subdivisions required to cooperate with Authority
Repealing and Separability Clauses
- Inconsistent laws, rules, and regulations repealed or modified accordingly
- Provisions declared separable; invalidity of any part does not affect remaining provisions
Effectivity
- Decree effective upon approval by the President
This summary covers the establishment, powers, governance, financial structure, tax treatment, property rights, and jurisdictional aspects of the PHIVIDEC Industrial Authority and its management of designated industrial areas in the Philippines.