NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and promulgate the following amendments to Presidential Decree No. 66 dated November 20, 1972, which are hereby approved, adopted and made part of the law of the land:
SECTION 1. Section four of Presidential Decree No. 66 is hereby amended by adding two new paragraphs after paragraph (k) thereof to read as follows:
"SEC. 4. Purpose and Specific Powers.—The purposes and specific powers of the Authority are as follows:
- To invest in, acquire or otherwise deal in real estate, or any interest therein, as well as in personal property of every kind and description; and in meritorious cases and upon prior approval of the National Economic and Development Authority, to grant loans and advances for the operation or expansion of zone registered enterprises upon such terms and conditions as the Board may prescribe;
- By itself or in cooperation with private persons or entities, to organize, finance, invest in or operate subsidiary corporations when such an arrangement is necessary to provide utilities and other amenities which cannot be reasonably provided by existing entities. All other investments in zone registered enterprises shall need prior approval of the NEDA."
SEC. 2. Section five of the same Decree is hereby amended to read as follows:
"SECTION 5. Capitalization.—The capital of the Authority shall consist of (1) its existing assets and such other properties as may be contributed to the Authority by the Government to form part of capital, (2) all capitalized surplus, and (3) cash contribution by the Government in the amount of one billion pesos, which is hereby appropriated out of any fund in the National Treasury not otherwise appropriated, be they collection from any or all taxes accruing to the general fund or proceeds from loans, the issue of bonds, treasury bills or notes, or derived from any other sources of income, by or of the National Government, which amount shall be programmed and released by the Budget Commission with approval of the President, in accordance with the schedule of development and expenditure to be prepared and submitted by the Authority: Provided, however, That any budgetary outlay allocated and released in favor of the Export Processing Zone Authority and/or Foreign Trade Zone Authority shall be correspondingly credited to the authorized capitalization herein provided."
SEC. 3. Paragraph (d) of Section eleven of the same Decree is hereby amended to read as follows:
"SECTION 11. Powers and Duties of the Board.—The Board shall have the following powers and duties:
- Upon the recommendation of the Administrator, to determine the organizational structure, the number, salaries and other fringe benefits of the officers, employees and consultants of the Authority and its subsidiaries. As far as practicable, the remunerations and allowances shall be competitive with rates prevailing in the private sector as shall be determined by the Board."
SEC. 4. Section eighteen of the same Decree is hereby amended by adding three new paragraphs after paragraph (f) thereof and amending paragraph (f) to read as follows:
SEC. 5. The second paragraph of Section nineteen of the same Decree is hereby amended to read as follows:
"SECTION 19. Power to Issue Bond or Incur Indebtedness.—x x x.
The total principal domestic indebtedness of the Authority payable in Philippine currency shall not at any one time exceed seven hundred fifty million pesos, while the total principal indebtedness of the Authority payable in foreign currency shall not at any one time exceed one hundred million United States dollar or the equivalent thereof in other foreign currencies qualified to form part of the international reserves of the Central Bank: Provided, That such foreign indebtedness may be contracted from foreign governments or any public or private fund sources; and Provided, further, That such borrowing shall be subject to approval by the President under such rules and regulations as he may promulgate. The bonds and other instruments of indebtedness which the authority is authorized to issue under this section and any income derived therefrom shall, except those contracted with private international banking and financial institutions, be exempt from the payment of all taxes of whatever kind and nature including withholding taxes imposed by the Republic of the Philippines, its agencies, instrumentalities or political subdivisions, which fact may be expressed on the face thereof, and shall be eligible as collateral in any transaction with the national or any local government, its agencies and instrumentalities, including government-owned or controlled corporations and government banking and financial institutions, in which collateral is required. Any or all loans or instrument of indebtedness which the authority is authorized to contract or issue under this section shall be unconditionally guaranteed both as to principal and interest by the Government of the Republic of the Philippines."
SEC. 6. Section twenty-three of the same Decree is hereby amended to read as follows:
"SECTION 23. Eminent Domain.—For the acquisition of right of way, or for any property for the establishment of export processing zones, low-cost housing projects, schools, hospitals, markets, playgrounds and such other facilities and utilities as are normally required of a modern human settlement, or for the protection of watershed areas, or for the construction of dims, reservoirs, wharves, piers, docks, quays, warehouses and other terminal facilities, structures and approaches thereto, the Authority shall have the right and power to acquire the same by purchase, by negotiation, or by condemnation proceedings. Should the Authority elect to exercise the right of eminent domain, condemnation proceedings shall be maintained by and in the name of the Authority and it may proceed in the manner provided by law."
SEC. 7. Repealing Clause.—All laws, executive orders, rules and regulations or part thereof inconsistent with this Decree are hereby repealed and/or modified accordingly.
SEC. 8. Effectivity.—This Decree shall take effect upon its approval.
Done in the City of Manila, this 11th day of June, in the year of Our Lord, nineteen hundred and seventy-eight.
(Sgd.) FERDINAND E. MARCOS
President of the Philippines
By the President: (Sgd.) JACOBO C. CLAVE Presidential Executive Assistant