Author Topic: Plan to develop the Government Arsenal Defense Industrial Estate (GADIE)  (Read 6583 times)


  • Timawan
  • Boffin
  • *
  • Posts: 5642
    • View Profile
ADAS 2016: Philippines to establish dedicated defence industrial zone | IHS Jane's 360 - 29 September 2016
The plan to develop the Government Arsenal Defense Industrial Estate (GADIE) has been drawn up over the past two years and is now awaiting presidential approval, officials told IHS Jane's on 29 September at the Asian Defence and Security 2016 (ADAS 2016) exhibition in Manila.


  • Timawan
  • Jr. Member
  • *
  • Posts: 83
    • View Profile
My post on this subject matter in the FB extension got buried. I was asking GA's Director MGEN Martir if part of the plans for the industrial complex is reviving the BNPP. The questiin was never anaered but I'm reviving this in the mother forum because I think it merits valid discussion. Nuclear power would provide cheap, reliable, dependable power for decades to come. Putting the power plant under the purvue of the GA/DND/AFP would reduce the risks in terms of security.

PH also has one of the highest electricity rates in the region. If the industrial estate can guarantee cheap and competitve electricty rates the potential for major international defense contractors to locate and partner for co-production increases.


  • Administrator
  • Boffin
  • *****
  • Posts: 11827
    • View Profile
    • The ADROTH Project
AFP to greatly benefit from GADIE establishment: Lorenzana
By Priam Nepomuceno  December 10, 2017, 9:16 am

MANILA -- The establishment of the so-called Government Arsenal Defense Industry Estate (GADIE) in Limay, Bataan will greatly benefit the Armed Forces of the Philippines (AFP) as it will help the military achieve massive modernization and transfer of technology.

“With GADIE’s establishment, we will certainly have a massive modernization and transfer of technology. All of this will hopefully upgrade our military’s capability and make it at par with militaries of other nations," said Department of National Secretary Delfin Lorenzana during the DND-Philippine International Trading Corporation Summit held at the AFP Commissioned Officers' Club, Camp Aguinaldo, Quezon City Friday.

GADIE is a special economic zone for both foreign and local investors that seeks to attract manufacturers who will supply the Philippine military’s needs.

It is a 370-hectare estate in Limay, Bataan which also houses the Government Arsenal that provides basic weapons and other munitions to the AFP and police.

Lorenzana thanked the Philippine Economic Zone Authority for assisting them by inviting defense industries around the world like manufacturers of military aircraft, ships, arms and ammunition, drones, combat clothing, and other supplies needed by the military and the police. (PNA)


  • Jr. Member
  • **
  • Posts: 45
    • View Profile
DOF, NEDA not keen on Bataan defense-eco zone
By Butch Fernandez - June 5, 2018

OFFICIALS of the Department of Finance and National Economic Development Authority are not keen on readily endorsing passage by Congress of a new law creating a so-called “Special  Defense Economic Zone (SpeDEZ) inside the government arsenal defense industrial estate”  at  Camp Gen. Antonio Luna in Limay, Bataan.

DOF tax specialist Miriam Tassara reminded lawmakers that at least six eco zones are “already existing in Bataan.”

We do not see the need for (such an) eco zone with tax incentives,” the DOF official told the Gatchalian committee, noting that eco zones are “put up for competitiveness.”

She added that Rep. Garcia’s proposed eco zone is being put up to supply AFP-PNP requirements, which could be done by annual budgetary allocations. “That is why we do not support the bill as proposed,” the DOF official told the committee.

Rep. Garcia countered, however, that “what is being [proposed to be] converted as an eco zone is the area outside the 70-hectare arsenal” in Camp Luna. “We need foreign investors to come in,” he added, ” we cannot rely on local locators.”

Garcia told Gatchalian’s committee that “eco zones are no longer export oriented; they are no longer the export processing zone as we know it.


  • Sr. Member
  • ****
  • Posts: 255
    • View Profile
Studies ongoing for creation of defense industry zone: DND

MANILA — Studies are underway on the construction of the so-called Government Arsenal Defense Industry Economic Zone in Limay, Bataan, Department of National Defense (DND) spokesperson Arsenio Andolong said Friday.

“The Government Arsenal is now studying this proposal to create the Government Arsenal Defense Industry Economic Zone. There are now some presentations but we still have to submit this to the President as he is the only one authorized to declare its (creation),” Andolong said in an interview.

The Government Arsenal (GA) is a DND-attached agency tasked to provide ammunition and some basic weapons to the military and police.

Once this proposal goes into high gear, it will be constructed in government lands near the GA complex in Limay, Bataan, Andolong said.

Last year, Defense Secretary Delfin Lorenzana said efforts were underway to develop a special economic zone for manufacturers interested in supplying the Philippine military’s needs.

He added that the move is in line with initiatives to revive the country’s Self-Reliant Defense Posture (SRDP) program, considering the variety of security threats it is facing.

“Considering the present threats to our sovereignty, such as terrorism and territorial disputes, it is about time to revive the SRDP program and highlight once again the need for enhanced external defense capabilities,” Lorenzana said.

He added that the country had an SRDP program in the 1970s that aimed to provide support to the military in terms of weapons, platforms, and equipment. Unfortunately, it did not attain so much success and its implementation was discontinued because of several impediments, such as budgetary limitations. (PNA)


  • Sr. Member
  • ****
  • Posts: 255
    • View Profile
Re: Plan to develop the Government Arsenal Defense Industrial Estate (GADIE)
« Reply #6 on: September 17, 2018, 03:36:18 AM »
Archive video of the above mentioned senate hearing:

[Video] Committee on Economic Affairs (June 5, 2018) - Agenda: H. No. 6525 – Special Defense Economic Zone Act

Pertinent points:

Government Arsenal representative:
  • Current road map under Horizon 2: propellant production plant, small arms plant, force protection equipment plant
  • Port availability near the proposed zone
  • While propellant plant is under current road map, supply of metallic components will remain problematic unless local metal industry is developed

Armscor representative:
  • Voiced support for bill and GADIEZ
  • Economic multiplier effects of developed defense industry
  • Importance of economic sustainability in defense industries to be brought in (lessons learned from original SRDP);
  • collaboration on drafting proposed bill: Philippine Defense Industry Development Act
  • Need to address previous and existing issues with local defense procurement (bidding requirement, single-largest contract requirement, no tax free-duty free for local deliveries)
  • Need for a production schedule
  • Proposed One-Stop Shop should also include PNP and DTI for import/export permits

DFA representative:
  • Stress that some transactions may have implications on bilateral/multilateral commitments & international obligations (sanctions & prohibits, etc.), suggest addition of administrative clearance from DFA

PEZA representative:
  • Previous application of GA land as SEZ under PEZA law (2011), already endorsed to Office of the President but remains an unissued proclamation due to deficiency in documentary requirements, still valid awaiting DND's compliance
  • PEZA now has programs that covers defense industrial economic zones under PEZA law
  • No longer need to legislate, as the intended effect can already be implemented under R.A. 7916
  • Defense industrial zone should not be limited to Limay, PEZA has national scope
  • Pre-existing agreements with other agencies (BOC, PNP) for import/export & regulated materials
  • Concern on export threshold: AFP Modernization Act requires 100% production for AFP, PEZA bases incentives on export threshold (required 70% export of production); previous experience asking for relaxing of requirements with regard to renewable energy sector
  • Development of infrastructure in SEZs
« Last Edit: September 17, 2018, 04:55:49 PM by girder »