Harolds Hotel, Lahug, Cebu City September 26, 2013 ROLE OF LOCAL GOVERNMENT UNITS IN LOCALIZING NATIONAL LAWS (Promotion of Green Economic Development)

Local Government Units (LGUs) as the primary duty bearer to develop policies relevant in promoting climate smart and business friendly environment for both local and foreign investors : A.) Section 192 of the Local Government Code. – LGUs may through an ordinance duly approved grant tax exemptions, incentives or reliefs under such terms and conditions as they deem necessary. (This authority is subject to other relevant laws and issuances like EO 226 or the Omnibus Investments Code, laws on the Philippine Export Zones (PEZA), or Special Economic Zones)

Businesses within these declared economic zones are exempted from paying local taxes and/or entitled to other special incentives. B.) Preferred Projects that maybe granted incentives at the local level: 1. Agriculture/agribusiness and Fishery 2. Creative Industries/Knowledge-based Services- business process outsourcing (BPO) activities, IT and IT- enabled services and film and performing arts production. 3. Shipbuilding –construction and repair of ships; shipbreaking/ship recycling. 4. Mass housing-development of low-cost mass housing 5. Iron and steel - basic iron and steel products 6. Energy – exploration, development and/or utilization of indigenous energy resources and other energy sources adopting environmentally –friendly technologies. 7. Infrastructure – transport, water, logistics, waste management facilities, physical infrastructure (toll ways, railways and telecommunication facilities) and pipeline projects for oil and gas.

8. Research and Development – R & D activities and the establishment of testing laboratories, Centers of Excellence and technical vocational education and training institutions 9. Green Projects – Manufacture/assembly of goods, the utilization of which would significantly lead to either the efficient use of energy, natural resources or raw materials; minimize/prevent pollution or reduce greenhouse gas emissions. 10. Motor vehicles – manufacture/assembly of motor vehicles, including alternative fuel vehicles (AFVs), and electric vehicles (EVs) but excluding 2-stroke motorcycles, and manufacture of motor vehicle parts and components. 11. Strategic Projects – projects that exhibit very high social economic returns that will significantly contribute to the country’s economic development 12. Hospital/medical services 13.Disaster prevention, Mitigation and Recovery projects (RA 10121).

Other national laws that provide incentives to projects in which LGUs may also provide additional incentives through an approved ordinance (ie. Exemption of local taxes or permit fees, RPT, etc.) – 1.) RA 9003 or the Ecological and Solid Waste Management Act ( like the establishment of waste recycling facilities). Under this law LGUs are mandated to establish Materials Recovery Facilities (MRF) and mandatory waste segregation at source or the practice of reuse, reduce and recycle (3Rs) 2.) RA 9275 or the Philippine Clean Water Act of 2004 – establishment of wastewater treatment facilities, and sewage collection integrated with treatment facilities and the adoption of water pollution control technology, cleaner production and waste minimization. 3.) RA 7277 or the Magna Carta for Persons with Disability – manufacture of technical aids and appliances for the use and/or rehabilitation of persons with disability, and the establishment of special schools, homes, residential communities or retirement villages solely to suit the needs and requirements of persons with disability (to include senior citizens)

4.) RA 9513 or Renewable Energy Act of 2008 – developers of renewable energy facilities, including hybrid systems. This also covers manufacturers, fabricators and suppliers of locally- produced renewable energy equipment and components. 5.) RA Tourism enterprises that are outside the tourism enterprise zones (TEZs) and are engaged in the following: Tourist transport services for tourist use, establishment and operation of accommodation establishments, convention and exhibition facilities, amusement parks, adventure and ecotourism facilities, sports facilities and recreational centers, theme parks, health and wellness facilities, agri-tourism farms and facilities and tourism training centers and institutes, development and retirement villages.

Thank you!