By Joyce Ann L. Rocamora | Philippine News Agency
President Ferdinand R. Marcos Jr. has signed Republic Act (RA) 12252, which amends the Investors’ Lease Act (RA 7652), allowing foreign investors to lease private lands in the Philippines for up to 99 years.
Previously, the law only permitted long-term leases for a maximum of 50 years, renewable once for an additional 25 years.
Under RA 12252, signed on Sept. 3, the President may impose a shorter lease period for investors engaged in vital services or industries deemed as critical infrastructure, in the interest of national security or national development.
The measure requires that foreign investors hold an approved investment and comply with regulations set by the appropriate investment promotion agency.
“Withdrawal of the approved and registered investment in the Philippines within the period of the lease contract entered into under this Act, or use of the leased area for the purpose other than that authorized, shall warrant the ipso facto termination of the lease contract without prejudice to the right of the lessor to be compensated for the damages the lessor may have suffered thereby,” the law further read.
In the case of tourism projects, the lease of private lands is limited to projects with an investment of not less than $5 million, 70% of which must be infused in said project within three years from the signing of the lease contract.
Contracts may be terminated if the investor fails to begin the project within the same period.
The law also clarifies that foreigners, associations or partnerships “not investing in the Philippines” are still covered by Presidential Decree No. 471 and other existing laws on lease of lands to foreigners. This means these individuals and entities are only allowed to lease private lands for a maximum of 25 years, renewable for another period of 25 years.
