Who may Enter Into Service Contracts With Foreign Persons/Corporations for the Exploration of Lands of Public Domain

March 13, 1973

PRESIDENTIAL DECREE NO. 151

ALLOWING CITIZENS OF THE PHILIPPINES OR CORPORATIONS OR ASSOCIATIONS AT LEAST SIXTY PER CENTUM OF THE CAPITAL OF WHICH IS OWED BY SUCH CITIZENS TO ENTER INTO SERVICE CONTRACTS WITH FOREIGN PERSONS, CORPORATIONS FOR THE EXPLORATION, DEVELOPMENT, EXPLOITATION OR UTILIZATION OF LANDS OF THE PUBLIC DOMAIN, AMENDING FOR THE PURPOSE CERTAIN PROVISIONS OF COMMONWEALTH ACT NO. 141

WHEREAS, the general policy of the State is to limit the disposition, exploration, development, exploitation or utilization of lands of the public domain in the Philippines to citizens of the Philippines or to corporations or associations at least sixty per centum of the capital of which is owned by such citizens;

WHEREAS, the national interest demands that such citizens, corporations or associations be allowed to enter into service contracts for financial, technical, management or other forms of assistance with any foreign person or entity for the exploration, development, exploitation or utilization of such lands of the public domain.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers in me vested by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines, and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, as amended, do hereby decree and order the following:

1. Citizens of the Philippines or corporations or associations which have acquired lands of the public domain or which now own, hold or control such lands under the Public Land Act or any other law, are hereby allowed to enter into service contracts for financial, technical, management or other forms of assistance with any foreign person or entity whenever and wherever such contracts are vital to achieve sound and more expeditious exploration, development, exploitation or utilization of such lands owned, held or controlled by such citizens or corporations.

2. For purposes of this Decree, a service contract with a foreign citizen or entity for financial, technical, management and other forms of assistance shall be considered vital to a national interest if, consistent with requirements for national security, the exploration, exploitation or utilization of land subject thereof is necessary for carrying out agricultural, industrial and commercial development projects such as the development of export oriented industries, import substitution and other dollar saving industries, cottage industries, cooperative development, land reform, research projects, and such other activities which may be certified by the President upon recommendation of the National Economic and Development Authority as vital to national interest.

3. No service contract for financial, technical, management or other forms of assistance shall be valid without the prior approval of the Secretary of Agriculture and Natural Resources. The Secretary of Agriculture and Natural Resources shall promulgate such rules and regulations as may be necessary to carry this Decree into effect. acd

4. Service contracts for financial, technical, management or other forms of assistance that are valid and existing as of January 17, 1973, shall be recognized and the terms and conditions thereof shall remain in full force and effect unless modified by the parties thereto.

5. Any provision of existing law, rule, regulation or order that is contrary to, or inconsistent herewith is hereby amended or repealed as the case may be.

6. This Decree takes effect immediately.

DONE in the City of Manila, this 13th day of March, in the year of Our Lord, Nineteen Hundred and Seventy-Three.