Professional Documents
Culture Documents
SAIANG
GUOF
J PANLUNGS79D
oF PARA1JAQUE \
7th
Council
ORDINANCE NO. J1 - 08
Series of 2016
)
WHEREAS, the Local Government Code of the Philippines empowers the local
government units to grant tax exemptions, incentives or reliefs to encourage investment for
economic growth and progress;
)
WHEREAS, the City of Paranaque is one of the fast-rising business district in the
Southern part of Metro Manila;
WHEREAS, the strategic location of the City of Paraflaque being highly urbanized city
in Metro Manila is ideal and suitable for investment and development;
WHEREAS, one of the thrusts of the local government units is to pursue economic
growth as an effective solution to alleviate property.
NOW, THEREFORE:
FJJ1
Page 17 0 8 THE CITY OF PARA11AQUE
Ordinance No. - Series of 2016— AN ORDINANCE:
DEVELOPMENT INVESTMENT AND INCENTIVE
CHAPTER I
PRELIMINARY PROVISIONS
Section 2. Legal Basis - The following are the legal basis of the establishment of the
City of Parañaque Economic Development Investment and Incentive Code to wit:
a. Paragraph 2 of article 10 of the 1987 Philippine Constitution states that, " The
territorial and political subdivision shall enjoy local autonomy".
b. Section 109, Paragraph 4, Title VI, Book I of Republic Act 7160 otherwise known as
the 1991 Local Government Code provides, "The City Development Council shall
exercise functions to formulate local investment incentives to promote the inflow and
direction of private investment capital".
Section 192, Chapter 5, Book II of Republic Act 7160 otherwise known as the 1991
Local Government Code provides," Local Government units may through ordinances
duly approved, grant tax exemptions, incentives or reliefs under such terms and
conditions as they may deem necessary".
CHAPTER II
DECLARATION OF POLICY
CHAPTER III
SCOPE, NATURE AND PURPOSES
The City of Paraflaque Economic Development Investment and Incentive Code (CPEDIIC) shall
be applicable to all investments made in the City of Parafiaque that pertains to domestic and foreign and
local investments and all other direct investments therein.
The City of Paraflaque Economic Development Investment and Incentive Code shall be
subject to the standards, rules and regulations set forth by the Philippine Omnibus Investment Code as
well as the existing rules and regulations promulgated by the Department of Trade and Industry (DTI),
Department of Tourism (DOT), must conform with the Foreign Investment Act, Retail Trade Liberazation
Act, Republic Act 6977 as amended by Republic Act 8289 and further amended by Republic t501
otherwise known as the Magna Carta for Micro, Small and Medium Enterprises, Republ ct 7)16
otherwise known as the Special Economic Zone Act, Republic Act 9553 otherwise known as he
Act of 2009 and other similar and related laws.
TO' J
Page 17-08
Ordinance No. - Series of 2016— AN ORDINANCE ENACTING THE OF PARAJAQUE ECON9MIC
DEVELOPMENT INVESTMENT AND INCENTIVE CODE 4
Provided that this Code shall advance the policy and implem,fIting guidelines for the
programming and prioritization of the City of Parafiaque development programs and projects as
reflected in its Comprehensive Development Plan, Comprehensive Land Use Plan, Local Zoning
Ordinance, Tourism Development Plan, Local Public-Private Partnership Ordinance and it must
harmonize with the mandates of national development policies, plans and programs such as the
Public-Private Program (PPP), the National Investments Incentive Code, The Medium Term
Philippines Development Plan and the Philippines Development Plan and the Philippine
Economic Zone Authority (PEZA).
a. Provide the guidelines and procedures for the availment of the local incentives;
b. To harmonize the national and local investment policies;
c. To define and promote the Investment Priority Areas (IPAs) of the City of Parañaque
through the granting of local incentives consistent with the National Investment
Priorities (IPP) and the City of Paranaque Comprehensive Development Plan,
Comprehensive Land Use Plan, Local Zoning Ordinance, Tourism Development Plan
and the Local Public —Private Partnership Ordinance;
d. To establish Investment Promotion Centers that will implement then investment
promotion or diversification;
e. To attract investors that will catalyze and accelerate economic activity, generate and
promote local employment as well as income opportunities for the city;
f. To unfold the Development of Medium and Small Scale Enterprises, utilize the local
resources and develop markets for local local products as well as ignite the ingenuity
of the entrepreneurs and other stake holders on: Biodiversity-Friendly Businesses";
g. To revive and accelerate the growth of local industries within the City of Paraflaque;
h. To disperse and direct industry and commercial activities in less developed areas;
i. To encouraged and broaden concept of Public-Private Partnership in Socio, bio-
environmental friendly and climate-resilient local development.
CHAPTER IV
DEFINITION OF TERMS
1J
G~~
For purposes of this ordinance, the following terms shall be defined as follows:
existing industry; \
e. Biodiversity Friendly Business those business or industries that are environment
-
friendly that are directly or indirectly aimed to protect the natural resources of the
city;
Foreign Loans shall refer any credit facility of financial assistanceO equity
-
h. BOI - shall refer to Bureau of Investments under the Omnibus Investment Code;
i. Net - Value Added -. refers to the value of the final product/services less the value of
inputs. The project's net value added should be at least 25% except for projects
dependent on imported raw materials/supplies;
j. New Project - refers to a project / activity listed in the IPAs that has not started
commercial operation undertaken by a newly organized enterprise or an existing
enterprise that shall engage in an entirely distinct and different activity from its
existing business operations or the same activity provided it shall established a new
facility in an area not contiguous to the premises of its existing project and with new
investments;
k. Philippine National - shall mean a citizen of the Philippines or a domestic partnership
or association wholly owned by citizens of the Philippines or a corporation organized
under the laws of the Philippines of which at least sixty percent (60%) of the capital
stock outstanding and entitled to vote is owned and held by citizens of the
Philippines;
I. Code- it shall refer to the Paranaque City Economic Development Investment and
Incentive Code.
CHAPTER V
PARAIAQUE ECONOMIC DEVELOPMENT
AND INVESTMENT BOARD
The Parañaque City Economic Development and Investment Board as created under
Ordinance 15-07 referred to as the PC-EDIB, and All officers, members and technical working
Group thereof shall receive per diem for every meeting actually attended subject to existing
budgeting, accounting and auditing laws, rules and regulations on compensation, honoraria and
allowances.
CHAPTER VI
LOCAL ECONOMIC INVESTMENT
PROMOTION OFFICE
The LEIPO shall be the implementing arm of the City of Parafiaque conomi
Development Incentives Code. It shall also function as the Technical Secretariat of the PC-
EDIB. Likewise, it shall coordinate the drafting of the City of Parafiaque Investment Priorities
Plan, which shall be based primarily on the development agenda set forth by the as
embodied in its various policy documents, also taking into consideration the on c
deve)opment plans and policies outlined by the various national government agenci e
shall ensure compliance with IPP, and monitor and evaluate its effectiveness.
'\ Section 2. Working Force of the LEIPO - The PC-EDIB appoints the head of the LEIPO
who may be the Local Economic and Investment Promotion Officer in accordance with DILG
Memorandum Circular (MC) 2010-113 on the designation of Local Economic and Içstments
Promotion Officers (LEIPOs/Investments Promotion Officer (IPOIPPDO). All oth r fkrs or
staff of the LEIPO shall be subject to the appointment of the PC-EDIB in accord cc 'vitlkDILG
Rules and Regulations and or applicable civil service laws as the case maybe. J
Page 17-08
Ordinance No. Series of 2016— AANCE ENACTING THE CITY OF PARA1AQ1JE ECONOMI
DEVELOPMENT INVESTMENTk ANNTIVE
IN CODE
a. Filipino citizen, a bona fide resident of the City of Paraflaque and of good moral
character;
b. A holder of a college degree, preferably in Marketing! Management and Law;
c. A Professional Civil Service Eligible or its equivalent and
Q!~
d. At least ten (10) year professional experience at the managerial level in the field of
Economics, Finance or Marketing/Management or Law.
Section 4. Functions, Duties and Responsibilities - The LEIPO shall have the
corresponding functions, duties and responsibilities, to wit:
A. Operations
1. Formulate annual and medium-term plans for Medium and large Enterprises
(MLE) development.
2. Prepare investment opportunity profiles, including but not limited to industry
profiles, projects profiles and viability/ feasibility studies;
3. Identify support investment activities, such as but not limited to trade
agreements with other LGUs for sourcing of a raw materials; cooperation
agreements with other government entities to facilitate investor transactions;
and Public-Private Partnership (PPP) arrangements;
4. Monitor the performance investments;
5. Coordinate and monitor policies, program and activities relative to MLEs of
all national and local government agencies;
6. Continuously review the local investment climate and incentives program in
order to recommend improvements;
7. Provide advisory and other support services to new investors to facilitate their
investment;
8. Provide advisory and other support services to established investors t
promote investment retention and/or investment expansion;
Section 5. Reportorial Duties of LEIPO - The LEIPO shall prepare yearly reports on
the status of MLEs in the City, including but not limited to:
List of existing MLEs before the grant of incentives packages provided hereunder;
List of MLEs that have applied for incentives packages;
a. List of MLEs invited by the PC-EDIB and/or LEIPO to invest in the City of
Parafiaque and the total number that have made investment in the City as
consequence of the invitation;
b. List of MLEs that have ceased operations, including the reason/s for closure;
c. Analysis of the increase or decreased of investment in the City vis-à-vis the
business climate;
d. Performance evaluation of the qualified MLEs; and
e. Recommend strategies to further increase investments of MLEs or prevent
decrease thereof;
The term "List" in this section shall contain the name of the company or corporation with
information as to whether it is a principal or franchise, the amount of capitalization, the nature of
investment, its investment strategies, and other information necessary to assist the CP-EDIB in
carrying out its mandate.
CHAPTER VII
ECONOMIC DEVELOPMENT AND INVESTMENT PLAN (EDIP) AND
INVESTMENT PRIORITIES PLAN (IPP)
ARTICLE I
GUIDING PRINCIPLES
Net Value-Added and Multiplier Effect — The incentives package given to qualified enterpi
must be commensurate to the benefits received by the City as shown by its economic activity
interrelationships generated and stimulated by the investment.
b. Equal Playing Field In principle, the t-EDIB shall maintain an equal playing
-
ARTICLE II
ECONOMIC DEVELOPMENT AND INVESTMENT PLAN (EDIP)
Section 1. Economic Development and Investment Plan (EDIP). The Local Economic
Investment Promotions Office (LEIPO), after consultation with the private sector, the national
government through the appropriate offices, such as but not limited to the National Economic
and Development Authority, the Department of Trade and Industry and the affiliate Board of
(
Investments), and the Department of the Interior and Local Government (DILG), shall submit to
the PC-EDIB an economic Development and Investment Plan (EDIP), which shall delineate the
economic directions and investment priorities of the City.
~L
The EDIP shall provide for the Role of the City Government as discussed in chapter VII
I f this code, in relation to the needs and concerns of the qualified pioneer MLEs, in order to
achieve mutually beneficial arrangements between both parties in consonance with the objectives
provided herein.
Upon evaluation and approve of the Economic Development Investment Plan by the PC-
EDIB. the same shall be forwarded by the Board to the City of Paranaque Council for
'confirmation through a Resolution.
/
The EDIP shall be in effect for three (3) years, unless otherwise amended or revised
earlier by the PC-EDIB by a three-fourths (3/4) vote all its members in a meeting duly called for
the purpose. Any amendment or revision of the EDIP shall made only after a comprehensive
review in terms of current investment trends, both local and international
ARTICLE III
INVESTMENT PRIORITIES PLAN (IPP)
Section 1. Formulation of the IPP The LEIPO shall annually formulate an Investment
-
Priorities Plan (IPP) that will reflect the relative importance of investments within the guidelines
of the Economic Development and Investment Plan and City of Parafiaque's Annual Investment
( Plan.
Section 2. Contents of the IPP The IPP shall contain the following:
-
4
Section 3. Adoption and Review of the IPP The IPP shall be subject to the appro 1
-
of the CP-EDIB through a majority vote in a meeting duly called for that p se.
The IPP shall in effect for one (1) year, uq&V ot ise amended or revi th PC-
EDIB, through a majority vote, in a meeti\all d for that purpose.
Page 8
1-
1 08
Ordinance No. Series of 2016— ENACTING THE CITY OF PA R AQUE ECONOMIC
DEVELOPMENT INVESTMENT CODE
ARTICLE I)t7
INVESTMENTS PRIORI* AREAS (IPAs)
a. The City of Parafiaque through the IPC shall formulate its IPAs consistent with the IPP,
the CDP, CLUP, Zoning Regulations, Tourism Development Plans and other criteria that
q~!k
-
will ensure sustainable and equitable economic and social development. The City
Government of Paraflaque is not precluded from including in the IPAs other activities
that suit their needs as long as it is within the meets and bounds of laws, rules and
regulations and or ordinances.
b. The following maybe considered in determining the IPAs of the City of Paraflaque:
1. Specific Industry / Sector
2. The potential of such areas of investment for creating productive employment
considering the necessity for the dispersal of industries in less developed areas on a
planned and balanced basis to the extent that it is economically feasible and
practicable;
3. The availability of local / indigenous raw materials and manpower needed for the said
project;
4. The City Government of Paranaque may include in its IPAs green projects that
promote environmental consciousness;
5. Agriculture and Eco tourism is one of the top list of priorities for development
-
c. A periodic review of the IPAs should be undertaken. The following factors maybe
considered for the amendments of the IPAs.
For the purpose of inclusion of additional areas in the list of IPAs the following factors '
For purposes of exclusion from the current list of IPAs the following may be considered:
CHAPTER VIII
S
ROLE OF THE CITY GOVERNMENT OF PARAFAQUE
a. Adequate Infrastructure and Ease of Access th. - ' Government shall enact
policies and program that will facilitate access to inV€stment site, whether by way of
road and sidewalk infrastructure or by way of traffic and transportation policies and
programs.
b. Development of Information and Communications Technology Infrastructure -
The City Government shall promote investments in ICT infrastructure and facilities.
It shall also maximize the use of E-Governance system and mechanisms for
promoting and facilitating interaction access to information and ease of private
enterprise local government transactions in the City with both local and international
public.
c. Public-Private Partnership Program this code recognizes the PPP as a potentially
-
significant investment strategy for the City. The City may by itself or in cooperation
with the National Government provide incentives to private sector proponents of PPP
projects. Further, the City may explore other forms of PPP in such a way that
qualified NLSEs may be given access to and allow investment in government owned
properties by means of joint venture agreements for the establishment of factories and
manufacturing industries in preferred area of investment to be determined in the
Economic Development Investment Plan. To achieve this end, idle and forfeited lands
of the City may be made available for investments. Finally, private properties
available for investments may also be acquired and made available for public
consumption only upon payment of just compensation.
d. Ease of Doing Business It is the duty of the City Government to promote an
-
environment conducive to the entry and growth of enterprises in the city by way of
clarity and transparency in tax assessment procedures, provision of express lane in
new business registration and renewals and express lanes for the issuance of
construction permits, provisions of series that can act speedily on request for redress,
provision of hotlines to address immediate concerns of NSLEs and other measures to
fully effect the thrust of creating a Business-Friendly City.
e. Links to Human Resources Needs The City Government shall provide links to
-
enterprise that undertake their operations during irregular work hours, it is the duty of
the City Government to work more closely with the Philippine National Police to
strengthen security and safety officers and staff as a force multiplier.
h. Industrial and labor Relations - The City Government should create ways to
promote industrial peace and mutual growth and benefit among the qualified NSLEs'
They should encourage and support all forms of employee participation in $roduction.
1 The rights of the employees to participate in policy or decision making on matters
affecting their rights, duties, benefits or welfare shall be also recognized.
i. Economic Support and Security - The City may find means to lessen tke ost
inputs including power and other utilities to attract more and quality investmei&
PC-EDIB may be empowered to negotiate and enter into contracts with all uti!tiç
providers to such effect. Creative alternatives to reduce costs of inputs and utilitie
must also be facilitated.
CHAPTER IX
PROVISIONS ON REGISTRATION
a. The enterprise must have complied with all the ipdñdated requirements under the
existing laws, rules and regulations for doing business in the Philippines;
b. The activity engaged in mist be listed in the IPA's of the City Government of
Parafiaque;
c. The place of operation or production be located within the territorial jurisdiction of
the City of Paranaque;
d. Specified percentage of its workplace must be bona fide residents of the City of
Parañaque giving equal opportunities for men, women, poor, indigenous and persons
with disability;
e. Project must have safeguards against pollution or resource use if necessary.
b. Partnership I Corporation
1. Copy of the articles of Partnership or Incorporation;
2. Certified True Copy of Certificate of Registration issued by the SEC;
3. Resolution of the applicant's Board of Directors in case of a corporation authorizing
the filing of application;
4. Copy of audited financial statements if existing;
5. Certificate or Certificate of Non-Compliance if applicable;
6. Copy of completed application form for registration under the City of Parafiaque
Economic Development and Investment Code;
7. Such other documents that maybe required by the City Government to be submitted.
Section 2. Coordination - The PC-EDIB through its Chairman shall coordinate with the
Micro, Small and Medium Enterprises Development Council (MSMED), Board of Investments
(BOl), Philippine Economic Zone Authority (PEZA) and other national government agencies by
entering into a Memorandum of agreement (MOA) or Memorandum of Understanding (MOU) as
maybe necessary to ensure the rights and benefits of MLEs in the City of Parafiaque are duly
protected and available.
CHAPTER X
INCENTIVES
ARTICLE I
Section 1. Fiscal Incentives
In order to avail of the discounts for Fiscal Incentives, the enterprise concerned must
also make a corresponding Corporate Social Responsibility in the City of Parafiaque in
ccordance with the City's Investment Plan Program, Projects or Activities and they will enjoyed "
ll the business tax incentives if they pay in full on or before the deadline of payment
t
d. This incentive is non-transferable. In case of change of ownership of the enterprise,
the incentives shall not be transferred to the new owner but shall continue to be
enjoyed by the original owner and applied to his new business enterprise, if any,
provided that the period of incentive shall expire within a given period from the date
of application regardless whether the owner availed of it or not. The new owner of the
enterprise has the option to apply for environmental incentives, provide further that
the enterprise continues its environmental protection initiatives and complies with all
the requirements to avail of the incentives;
e. That the City Government of Parafiaque have the right to reappraise the cost of the
tree planting or landscaping in case it finds the reported cost excessive;
f. This incentive maybe availed of only once every three years.
ARTICLE II
-' NON- FISCAL INCENTIVES
CHAPTER XI
PROVISIONS ON ENVIRONMENTAL PROTECTION
J\
>ç
comply with the requirements of Presidential Decree 1586 or Environmental and
Natural Resources Act of the Philippines.
b. Hazardous Substances - Projects involving the handling, transport, processing and
storage of toxic, hazardous substances and or nuclear waste shall not be entitled to
any incentive.
I
a. No industrial or manufacturing facility shall be operated without proper air pollibq
devices, waste water treatment facilities and solid waste management facilities;
CHAPTER XII
RESPONSIBILITIES OF THE REGISTERD ENTERPRISES
CHAPTER XIII
APPROPRIATIONS
Section 1. PC-EDIB Fund - The PC-EDIB fund shall be taken from the General Fund or
through the Supplemental Budget or from any available funds of the City Treasury as the case
maybe determined by the PC-EDIB.
CHAPTER XIV
MISCELLANEOUS PROVISIONS
CHAPTER XV
FINAL PROVISIONS
Section 1. Transitory Provision - Investors who availed of the incentives provided under
Ordinance No. 15-07, Series of 2015, shall continue to enjoy the incentives granted therein. One
the period mentioned in Section 2, Article 1, Book IV thereof lapses, qualified New Large Scale
Enterprises shall be deemed registered under this Ordinance: Provided, however, that they shall
submit the documentary requirements mentioned in Section 2, Chapter IX of this Ordinante.
Section 2. Separability Clause - If for any reason, any part of this ordinance shall be he
invalid or be declared unconstitutional, other parts herein provided which are not affected shall
continue to be in full force and effect.
Section 3. Repealing Clause - Ordinance No. 15-07, Series of 2015, all other ordinances.k
Rules and regulations that are inconsistent with the provisions of this ordinance are hereby
modified and repealed..accordinlv.
SPONSORE BY:
EVOkIN R.
City Councilor
/o
MERLIE S. ANTIPUESTO RIC4jRDO. BAES, JR.
Cit Councilor
011
City Councilor
C.GABRIEL, JR.
PABLI C. BR LrV. ILONC
City Councilor Ci Co
CHRISTOPHER(V. 4GUILAR
Liga Presdnt
CONCURRED BY:
(offcIc4J b m S ,rtcs)
MARVIN A. SANTOS
City Councilor
(gic k Icv) .cnr)
GIOVANNI E. ESPLANA VANDOLF L. QUIZON
City Councilor City Councilor
ATTES
APPROV BY
JOSE ENICO T. EZ
Acting City May