House OKs bill allowing foreigners to lease land up to 99 years

The House of Representatives on Tuesday approved the Investors’ Lease Act which allows foreigners to lease lands in the country for a maximum period of 99 years from a previous threshold of 75 years.

This came after the measure under House Bill 10755 garnered 175 yes votes, three no votes and two abstentions during the day’s plenary session.

House Bill 10755 also states that foreigners can only lease private lands defined as “lands which have been segregated from the general mass of the public domain and distributed by any form of gratuitous or onerous grant by the state such as a deed of sale, adjustment title, special grant, or possesory information title converted into a record of ownership.”

The bill, a priority measure identified by the Legislative Executive Development Advisory Council, also states that the private lands would include patrimonial properties of the state owned, held, controlled, supervised, managed, or administered by investment promotion agencies as defined under Republic Act No. 11534 or the Corporate Recovery And Tax Incentives for Enterprise (Create law).

Likewise, the measure provides that that lease agreements will be subject to the approval of the Department of Trade and Industry-Board of Investments, except for lease of lands within economic zones or freeport areas, which is subject to the approval of the relevant Investment Promotion Agency charged with the management and administration of the said economic zones or freeport zones.

“This bill is [for us] to attract more foreign investors to the Philippines, thereby fostering economic growth, creating jobs, and improving the overall investment climate,” the committee report on the measure read.

“This will also establish greater reliability and predictability in long-term lease contracts to ensure return on investment and encouraging more substantial and long-term investments, as well as to protect the rights of foreign  investors by ensuring that lease  agreements are honored, and providing recourse for disputes,” the measure added.

Further, the bill gives foreign investors the option to register lease contracts with the Register of Deeds and outlines the conditions therefor as an added protection, as well as expands the leasehold rights available to foreign investors by allowing the  long-term lease contract to be pledged as a guaranty for a loan and by permitting leaseholders to sublet the leased land.

Violations of the proposed measure, however, carry a fine of P1 million to up to P10 million.

‘Beyond life expectancy’

House Assistant Minority Leader and Gabriela party-list Rep. Arlene Brosas, however, said House Bill 10755 won’t benefit the country since it allows foreigners to own the land, including those lands under control of state-run corporations, with the lease timeframe of 99 years or way beyond life expectancy.

“This representation vehemently opposes the further liberalization of foreign land leasing in the country through the House Bill No. 10755. The proposal cover agricultural lands and patrimonial properties of the State that are supervised by investment promotion agencies (IPAs), [which is] a clear manifestation of how our current government continues to prioritize foreigners’ and big businesses’ and corporations’ interests over our local farmers and workers, over our genuine economic development,” Brosas said.

“99 years. I have repeatedly emphasized this....99 years is equal to many generations of leasing the land, way beyond the global average life expectancy of 73 years. Beyond all the legalisms and technicalities, it is clear that in essence and in practice, this law will open the gates to monopoly of Philippine land ownership among foreigners for a long period of time,” Brosas added.

In addition, Brosas said the bill expands the aggregate land leasing period of foreign investors and their leasehold rights by allowing long-term lease contracts to be pledged as a guarantee for a loan, and by permitting leaseholders to sublet the leased land.

“On paper, you are leasing, but in truth and in fact, you have all the authority to control the land for 99 years. Given all of these, it is the farmers who will be at risk.  We’ve seen this in the Philippine landscape, with the rampant land-grabbing, harassment, and displacement among peasants and agrarian reform beneficiaries. Again, I vote no to this measure,” she added.

Under the 1987 Philippine Constitution, foreigners are not allowed to own Philippine lands.

The Senate earlier approved its version of the bill on Monday.

Senate Bill 2898 or the proposed Act Liberalizing the Lease of Private Lands by Foreign Investors was approved with 17 affirmative votes, one negative vote, and zero abstention.

A priority measure of President Ferdinand "Bongbong" Marcos Jr., the bill seeks to entice foreign investors to sublet properties unless barred by a contract.

This will amend the 31-year-old Investors' Lease Act. — RSJ, GMA Integrated News