Republic of the phillippines

City of Cotabato
Region X11
OFFICE OF THE SANGGUNIANG PANLUNGSOD
9TH Sangguniang Panlungsod
City of Cotabato
117th Regular Session
EXCERPT FROM THE MINUTES OF THE REGULAR SESSION OF THE
SANGGUNIANG PANLUNGSOD, HELD AT THE SOCIAL HALL, REGISLATIVE
BUILDING, GEN. S.K. PENDATUN AVENUE, COTABATO CITY, ON TUESDAY
SEPTEMBER 26, 2000, AT 9:00 A.M.
Present:
Hon. Cecillia Camello- Barroga
Hon. Wilfredo H. Bueno
Hon. Magno Y. Adalin
Hon. Noel K. Felongco
Hon. Leonardo J. Rendon
Hon. Marino R. Ridao
Hon. Arnel S. Datukon
Hon. Madatu B. Datumanong
Hon. Kusin S. Taha
Hon. Alexis S. Costales
Hon. Evaristo T. Tolentino,Jr.
Hon. Graham Nazer G. Dumama

City Vice Mayor and Chairman

Majority Floor Lead
Asst. Maj. Floor Lead
1st Asst. Maj. Floor Leader
Minority Floor Leader
Asst. Minority Floor Leader
Member
Member
Member
Member
Member, Liga ng mga Brgy.
President
- Member, SK Representative

Absent:
Hon. Froilan R. Melendrez

- Member, O.B. Tawi-Tawi

ORDINANCE NO. 1756

Series of 2000
AN ORDINANCE REVISING THE COTABATO CITY INVESTMENT CODE OF
1995 AND FOR OTHER PURPOSES.
By authority of Section 16 and 458 of Republic Act No.
7160, otherwise known as the Local Government Code of 1991, be
it ordained by the Sangguniang Panlungsod irregular session
assembled, that:
CHAPTER 1. TITLE AND DECLARATION OF POLICY
SECTION 1.
Title.
This ordinance shall be known as the
REVISED COTABATO CITY INVESTMENT CODE OF 2000 and shall
hereinafter be referred as the Code.
SECTION 2.
Declaration of Policy.
To accelerate the
sound development of local economy of Cotabato City, it is
hereby declared that the City Government of Cotabato shall
encourage
and
promote
new
investment
for
the
expansion/modernization of existing projects by:
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( Ordiance No. 1756.. . . . Continuation . . .. Page 2)

1. Creating a conductive climate for business and investment
characterized by:
*
the sincere recognition of private sectors role in the
development of the City;
*
the effective and efficient
supportive role of the government;

performance

of

the

* environment consciousness by both government and private

sectors in order to attain the sustainable use of its
natural resources;
*

policy direction efforts towards sustained growth;

an atmosphere friendly to labor and family;

2.
Encourage and promote domestic and foreign investment
in enterprises that will spur greater economic activities
and truly optimize the proper utilization of local
resources of the city;
3.
Ensure holistic development by safeguarding the well
being of the social, cultural, and ecological life of the
people. For
this purpose, consultation with affected
communities will be conducted whenever necessary;
4.
Offer fiscal and non-fiscal incentives to entities
whose investment projects qualify under the priority
investment areas of Cotabato City.
CHAPTER 11. THE COTABATO CITY INVESTMENT BOARD
SECTION 3.
The Cotabato City Investment Board There
is hereby created a Cotabato City Investment Board (CCIB) to
implement the provision if this Code.
SECTION 4.
Composition of the Board.
The Board shall be
composed of the City Mayor as Chairman, City Vice-Mayor as ViceChairman, together with the Chairman of the committees on Laws,
Trade and Industry, Public Works and Improvements, Housing and
Urban Development, Finance and Appropriation, Ways and Means,
Barangay and Community Affairs, and Agriculture of the
Sangguniang Panlungsod, the City Administrator, the City
Planning and Development Coordinator, City Legal Officer, City
Assesors, City Treasurer, a representative from the Labor Union,
Department of Trade and Industry (DTI), National Economic
Development Authority (NEDA), Department of Agriculture (DA),
Department
of Environment and National Resources (DENR),
Department of Tourism (DOT), Department of Labor and Employment
(DOLE), and the Presidents of the Cotabato Chamber of Commerce
and Industry (CCCI),
the Cotabato Filipino-Chinese Chamber on
Commerce (CFCCC), and the Metro Cotabato Chamber of Commerce and
Industry Foundation Incorporated (MCCCIFI); PROVIDED, that the
membership of the Board may be increased by the Sanggu

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( Ordinance No. 1756 . . . . . Continuation . . . Page 3)

niang Panlungsod through the recommendation of the Board as it

may be deemed nessesary for the effective implementation of the
provision of this Code. Provided finally, that the term of
office of the private sector representatives shall be two (2)
years, unless otherwise earlier revoked
SECTION 5.
Powers and Duties of the Board.
The Board
shall be responsible for the establishment of a favorable and
stable policy, rules and regulations on the business climate
that will encourage and support the development and promotion of
investments in the City of Cotabato. Pursuant to this, the Board
shall be vested with the following powers and functions:
1. Prepare Investments Plans and Programs that will set the
direction of the Board based on the citys economic
vision.
2. Promulgate the implementing rules and regulation of
Cotabato City Investment Code and any amendment thereto,
subject to the approval of the Sangguniang Panlungsod.
3. Evaluate and approve pre-investment studies, project
proposals and concept papers submitted by prospective
investors in Cotabato City.
4. Approve/disapprove application for registration, imposing
such terms and conditions as it may deem necessary to
promote the objectives of this Code.
5. To establish the Cotabato City Business Center (CCBC) and
to supervise and oversee the same and all its operations;
6. To organize a Technical Working Group (TWG)which shall
provide
assistance
in
the
implementation
of
the
provisions of this Code.
7. Within one (1) month after the close of the calendar
year, submit annual reports to the City Mayor and
Sangguniang Panlungsod covering its activities in the
administration of this Code.
8. After due hearing, decides controversies concerning the
implementation of the relevant provision of this Code
that
may
arise
between
registered
enterprises
or
investors therein and government agencies, within 30 days
after the controversy has been submitted for decisions;
Provided, That the investor of the registered enrterprise
may appeal the decision of the board within thirty (30)
days upon receipt thereof.
9. Periodically check and verify compliance of registered
enterprises;

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( Ordinance No. 1756 . . . Continuation . . .page 4)

10. After due notice and hearing, cancel the registration
or suspend the enjoyment of incentive benefits of any
registered
enterprise
and/or
requires
refund
of
incentives enjoyed by such enterprise, for failure to
comply any provision of this Code.
11. Extend the period of availment of incentives by any
registered enterprise, provided that the total period of
availment shall not exceed ten (10) years subject to any
of the following criteria;
* The registered enterprise has suffered loss
force majeure and other man-made calamities;

due

to

* The operation of the registered enterprise has been

subjected to unforeseen changes ( i.e government policies
and other externalities)
12. To enter into agreement subject to the approval of the
Sangguniang
Panlungsod
with
other
agencies
of
the
government and the private sector for the
simplification
and facilitation of systems and procedure for investment
promotions and other activities necessary for the effective
implementation of this code.
13. Secure additional funding and resources to supplement
the budgetery requirements provided by the Cotabato City
Government for the operation of the Cotabato City Business
Center.
14. To act as central body in the facilitation
promotion of investment activities for the city.

and

15. Exercise all powers as specifically stipulated in the

succeeding sections of this code.
SECTION 6 Meetings and Quorum of the Board The board
shall meet at least once every quarter or as often as may
be necessary, on such a day and time as it may fix. The
presence of at least a majority of its members shall
constitute a quorum and the affirmative vote of the
majority of the members present in a meeting validly held
shall be necessary for the Board to exercise its power and
perform its functions.
SECTION 7. Honoraria. The chairman of the board shall
receive a monthly honorarium of Five Hundred Pesos (
500.00), Four Hundred Pesos (400.00) for the Vice-Chairman
and Three Hundred (300.00) to the Members thereof.
SECTION 8. Appropriation. The City Government shall
appropriation an annual budgetery requirements of FOUR
HUNDRED THOUSAND PESOS (400,000.00)in the annual or
supplemental budget of the city to defray the expenses
necessary
for
or
incidental
for
the
continued
implementation of the provision of this Code including the
operation of the Cotabato City Business Center, subject to
the usual government accounting and auditing rules.

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( Ordinance No. 1756 . . . . Continuation

. . . Page 5)

CHAPTER III. DEFINITION OF TERMS

SECTION 9. Definition of Terms. When used under this
Code, the following terms and phases shall mean as
follows;
a. Board shall refer to the Cotabato City Investment
Board created under this Code.
b. City shall mean the City of Cotabato covering all
the areas within its territorial jurisdiction as provided
for by law and its charter.
c. Code shall refer to the Revised Cotabato City
Investment Code of 2000.
d. New Investment shall refer to any kind of business
venture or projects that are yet to be established in
Cotabato City.
e.
Expansion
shall
include
modernization
and
rehabilitation and shall mean increase of existing
capacity
or
upgrading
the
standard
of
existing
enterprises venture/activity to that of projects listed
as priority under this code.
f.
Existing
Enterprise
shall
refer
to
the
establishments that has been operating in the are prior
to the adoption of this code.
g. Local Resources shall refer to workers personnel
who are bonafide residents of Cotabato City as well as to
raw materials and such other inputs which are locally
available.
h. Priority investment Areas shall mean the economic
activities specifically listed under this Code.
i.
Registered
Enterprise
enterprise/business registered in
provisions of this code.

shall
mean
those
accordance with the

j. Center shall refer to the Cotabato City Business

Center created under this code.
k. Incentives shall mean those benefits granted in
favour of registered enterprise as enumerated in Section
17 of this ordinance and those granted under existing
national laws.
CHAPTER IV. PRIORITY INVESTMENT AREAS/ACTIVITIES AND
APPROPRIATE INCENTIVES AND SUPPORT MEASURES
SECTION 10. Priority Investment Areas.
A list of
priority
areas
and
activities
promoted
to
targeted
investors is identified to include the following:
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(Ordinance No. 1756 . . ..

Continuation . . .

Page 6)

Category A
1. Commercial complex/malls as classified in Housing
Land Use and Regulatory Board (HLURB).
2. Industrial Estates as classified by Housing Land use
and Regulatory Board (HLURB).
3. Tourism related projects as classified by Department
of Tourism (DOT) with a capitalization of fifty Million
Pesos (P50,000.000.00) and above, to include;
a.
b.
c.
d.
e.
f.

Hotel
Resort and special interest resorts
Tourist transport facilities
Theme park
Tourism estate
Other tourism related project

Category B
1.

State

of the art recreational facilities

2.

Real Estate Development for Housing

3. Light
industries with a capitalization of Fifty
Million Pesos(50,000.000.00) below.
a. Food Processing
b. Manufacturing and processing of herbal pharmaceutical and beauty care products
c. Manufacturing and processing of architectural and
other related metal works
d. Manufacturing of wood products
Category C
1. Operation of franchise business with capitalization
of TWENTY MILLION PESOS (P20,000.000.00)
2. Other tourist accommodation facilities as classified
by Department of Tourism and not specifically listed under
Category A1 with capitalization of not less than Five
Million Pesos.
3. Restoration of Historical and Cultural sites/
properties.
Category D
1. New investments with capitalization of less than
TWO MILLION PESOS (P 2,000.000.00)
SECTION 11. Appropriate Incentives and Support Measures. The Board shall identify and recommend for the
approval of the Sangguniang Panlungsod appropriate in
centives and support measures which it shall be entered to
targeted investors.
- over

(Ordinance No. 1756 . . . . Continuation

. . . . Page 7)

CHAPTER V. REGISTRATION OF ENTERPRISES

SECTION 12. Qualification of a Registered Enterprise.
To be entitled to register and avail of the incentives
provided for in this code, an applicant firm must meet the
following qualifications:
1. That the enterprise must have complied with all the
requirements mandated under existing local and national
laws and the Constitution.
2. That the prospective enterprises place of operation
or
production
be
located
within
the
territorial
jurisdiction of Cotabato City;
3. That the enterprise is engaged or proposes to engage
in activities in preferred areas of investments as
specified in this Code. PROVIDED that in the case of
existing enterprises, it may avail of the incentives as
Expanding Firm under this Code if it meets the criteria as
mentioned in Section 9 (e);
4. The enterprise must submit proof(s) of his financial
capability (e.g. bank certification, land titles, etc)
5.
Existing
registered
business
enterprises
who
previously enjoyed the incentives pursuant to the provision
of the
Investment
Code
of
1995
may
re-apply
for
incentives in this Code; provided, they shall enjoy such
incentives for the
remaining or unexpired period as
stated in Section 17 of this ordinance.
SECTION 13. Application.
Application shall be filed
with the Center. The date of receipt of application shall
be the official date of acceptance. A non-refundable filing
fee of ONE THOUSAND PESOS (P 1,000.00) shall be paid
together with the following documents for registration:
1. Three (3) copies of completed application form to be
provided for by the Board in accordance with the provisions
of this code:
2. A copy of the complete project study of the proposed
investment/project showing that the project is economically
technically and financially feasible and viable;
3. A certified true copy of Securities and Exchange
Commission (SEC) or Cooperative Development Authority
Certificate of Registration together with the approved
Articles of Incorporation and By Laws or Business Name
Certificate from the Department of Trade and Industry, as
the case may be;
4. In case of corporation, a Board of Director resolution
of applicant authorizing a representative to appear before
the Board (CCIB) and in case of partnership, an authority
signed by all partners to represent them in the CCIB; and
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(Continuation No. 1756 . . ..

continuation . . .Page 8)

5. A copy of the Environment Clearance Certificate (ECC)

from the Department of Environment and Natural Resources
(DENR).
SECTION 14. Approval and Registration Processes. The
Board is authorized to adopt rules and regulation to
facilitate action on applications filed prescribed criteria
for the evaluation of application filed in one priority
investment area; devise standard forms for use of the
applicant.
Application
filed
shall
be
considered
automatically approved if no acted upon by the Board within
twenty (20) working days from official acceptance thereof.
SECTION 15. Certificate of Registration. A registered
enterprise under this Code shall be issued a Certificate of
Registration duly signed by the City Mayor as the chairman
and Vice-Mayor as the Vice-Chairman of the Investment
Board. The certificate of registration shall be in suchform
and style as the Board may determine.
CHAPTER VI.

RIGHTS AND PRIVILEGES

SECTION 16. Rights and Privileges Guaranteed by the

City Government. All investors and registered enterprises
are entitled to the rights and guarantees provided by law
and the Constitution. In addition to such rights and
guarantees and to enhance investors confidence in the
incentive program, the city Government, through the
Cotabato City Investment Board, shall:
1. Provide a concise and comprehensive information to
prospective investors on the economic priorities of the
City Government, including target investment areas and the
general conditions applicable to incoming direct private
investments;
2. Communicate investment evaluation criteria and
procedure to enhance transparency in the process of
granting incentives;
3. Take the fullest possible account of the need of the
investors for profit, growth and stability in their
operations in the formulation or modification of policies
and ordinances that affect investments;
4. Not interfere or modify arrangements with the investors
after the details of the implementation of the investment
project has been accepted and approved, and the ownership and
management structure of the enterprise has been established
unless the law provides otherwise;
5.
In accordance with law and where no local personnel
worker is capable and available, allow employment of qualified
foreign personnel where this is necessary for the efficient
operation of the enterprise or for technology transfer; and

- over

(Ordinance No. 1756. . . . . .Continuation . . . . Page 9)

6.
Resolve
all
doubts
concerning
the
benefits
and
incentives granted under the ordinances enacted for the purpose
of encouraging investment.
CHAPTER VII. INCENTIVES TO REGISTERED ENTERPRISES
SECTION
17.
Fiscal
Incentives.
In
addition
to
the
incentives provided by law and Republic Act No. 7160, otherwise
known as the Local Government Code of 1991, a registered
enterprise qualified under this code shall enjoy the following
incentives to registered enterprises:
a. For projects identified in Category A under Section 10
the registered firm shall enjoy full exemption from building
permit fees, the Mayors permit fess, business sales taxes and
other fess and charges imposed under existing City Ordinances
for a period of twelve (12) years, exemption from basic real
property tax for a period of six (6) years for building,
improvements and machineries two (2) years for land;
b. For projects identified in Category B under Section10,
the registered firm shall enjoy full exemption from Building
Permit fees, Mayors permit fees, business sales taxes and other
fees and charges imposed under existing City Ordinances for a
period of eight (8) years, exemption from basic real property
tax for the period of three (3) years for building, improvements
and machineries and two (2) years for land;
c. For projects identified in Category C under Section 10,
the registered firm shall enjoy full exemption from Building
Permit fees, Mayors permit fees, business sales taxes and other
fees and charges imposed under existing City ordinance for a
period of five(5) years, exemption from basic real property tax
for the period
two (2) years for building, improvements and
machineries and two (2) years for land;
d. For projects identified in Category D under Section 10,
the registered firm shall enjoy full exemption from building
permit fees, Mayors permit fees, business sales tax and other
fees and charges imposed under existing City
ordinance for a
period of three (3) years, exemption from basic real property
tax for the period of two (2) years for building, improvements
and machineries and two (2) years for land.
SECTION 18.
Non-fiscal
Incentives.
The
center
will
provide
assistance
in
the
processing
of
business
permits/licenses
in
various
government/local
government
units/division for its immediate completion and approval.
CHAPTER V111. COTABATO CITY BUSINESS CENTER
SECTION 19.
The Cotabato City Business Center shall hold
office at an area which the Board deemed appropriate and
strategic. It shall be designated with an officer and staff to
effectively carry out the provisions of this Code, subject to
the recommendation of the Board and confirmation of the
Sangguniang Panlungsod and in accordance with the Civil Service
rules and regulations.
- over

(Ordinance No. 1756. . . . .Continuation . . . . Page 10)

SECTION 20. Powers and Functions. The Secretariat of the

Board have the following powers and functions.
1. Accept and process all applications for registration for
the availment of the local incentives;
2. Act as Secretariat to the Technical Working Group (TWG);
3.
Provide
investors;

necessary

support

services/assistance

to

4. Establish and maintain networking relations with other

offices and agencies whenever appropriate and necessary;
5.
Establish
and
maintain
data
bank
investment/business data and information;

of

permanent

6. Initiate programs and activities essential in the

promotion of investment for the City upon the approval of
the Board;
7.
Prepare the agenda and minutes of the Meeting of the
Board;
8. Submit Annual Reports to the Board through the Chairman,
on activities of the Center relative to the implementation
of the code, within forty-five (45) days after the close of
the calendar year.
CHAPTER IX. TECHNICAL WORKING GROUP
SECTION 21. Powers and Functions. The Technical Working
Group (TWG) shall have the following powers and functions:
1. Evaluate all application for registration for the
availment of the local incentives and submit its recommendation
for action by the Chairman within ten (10) working days from the
official acceptance of the application;
2. Recommend to the Board any modification/amendments to
existing legislation and procedures on local investments;
3. Spearhead in the preparation of investment priorities
plan and program for the City.
CHAPTER X. IMPLEMENTING RULES AND REGULATIONS
SECTION 22. Within sixty (60) days after the effectivity of
this code, the City Mayor shall convene the Board for the
purpose of formulating the appropriate implementing Rules and
Regulations (IRR) necessary for the efficient and effective
implementation of this Code.

- over

(Ordinance No. 1756. . . . .Continuation . . . . Page 11)

CHAPTER XI. FINAL PROVISIONS
SECTION 23. Penal Clause. Any violation of the provisions
of this Code, its rules and regulations formulated and issued
thereunder, shall be a ground for the cancellation or revocation
of the registration of the business and the withdrawal of all
the incentives granted under this Code, without prejudice to
filing of appropriate charges against violators (person or
juridical entity) in court of competent authority.
SECTION 24.
Separability Clause. The provisions of this
Code are hereby declared to be separable, and in the event that
one or more of the other provisions are held illegal or
unconstitutional, the validity of the other provisions shall not
be affected.
SECTION 25.
Repealing Clause. All ordinances, executive
orders and rules and regulations inconsistent or in conflict
with the provisions of this Code are hereby repealed, amended or
modified accordingly.
SECTION 26. Effectivity. This ordinance shall take effect
ten (10) days after the completion of its application in the
newspaper of general circulation.
UNANIMOUSLY APPROVED AND ENACTED, September 26, 2000.
I hereby certify to the correctness of the above-qouted
Ordinance.

(SGD.)CECILIA CAMELLO- BARROGA

City Vice- Mayor and Chairman
ATTESTED:
(SGD.)ROY MARLO Y. MUASQUE
Acting Secretary to the Sanggunian

A P P R O V E D : (OCT 10 2000)
(SGD.) MUSLIMIN G. SEMA
City Mayor
ATTESTED:
(SGD.)ATTY. HARON S. MELING
Secretary to the City Mayor