HOUSE OF REPRESENTATIVES —

Republic of the Philippines RECEIVED
HOUSE OF REPRESENTATIVE; pared 3 AUG 2016

Queson City — “Sn
SEVENTEENTH CONGRESS By.
First Regular Session
TION UNIT:
HOUSE BILLNO._@4 ve

EXPLANATORY NOTE

"Sustainable development is development that meets the needs of
the present without compromising the ability of future generations to
meet their own needs."

- Brundtland Commission, United Nations, 1987.

Sustainability is the key to lasting alleviation from poverty and national
development. Natural resources provide the basic necessities for human existence,
as well as the inputs for economic development. Therefore, it is to our best interest
to develop and use these resources while maintaining their physical integrity and
capacity to regenerate the economic and ecologic values that are withdrawn for
human consumption

The Bicol River is the eighth largest river in the country, with a total catchment
area of 3,770 square kilometers. It encompasses the provinces of Camarines Sur,
Camarines Norte and Albay, as well as thirty-three (33) municipalities and three (3)
cities. The river spans ninety-four (94) kilometers beginning at Lake Bato and flowing
downstream to San Miguel Bay. The Bicol River System is composed of multiple
tributaries and three major lakes. However, its area of influence is much larger,
stretching about 10,058 square kilometers. The river basin is a vast wetland
ecosystem that is responsible for the main water supply in the region. Moreover, the
river system supports a rich biodiversity and supplies a bounty of materials for
economic use. About two million Filipinos live in the area covered by the Bicol River
Basin.

2 Orient Integrated Development Consultants, Inc. (2015), Formulation of an Integrated Bicol River
Basin Management and Development Master Plan.


At present, the river system is faced with numerous challenges that threaten
the agricultural and fisheries industries, biodiversity, and more crucially, the
livelinood of thousands of households living along the river basin. This directly
impacts food security in the Bicol region at the most fundamental level. The river
basin also provides ecosystem services such as, water purification, waste treatment,
flood and drought mitigation, soil fertility, coastal salinity maintenance, nutrient
delivery and biodiversity conservation. Moreover, continued decline in the river's
condition also impedes potential economic and tourism development.

The Department of Environment and Natural Resources (DENR) identified the
Bicol River Basin as one of the eighteen (18) priority river basins in the country for
which comprehensive management and development master plans are to be
formulated. In the 2015 Formulation of an Integrated Bicol River Basin Management
and Development Master Plan prepared by Orient Integrated Development
Consultants, Inc., it was estimated that, over a 15-year planning period, the total
investment requirement to implement the Bicol River Basin master plan is about
PhP31.332 billion. The first five years of implementation will require PhP8.46 billion
while year 6 to year 10 would need PhP13.95 billion

One of critical elements in the implementation of this strategy is the formation
of the Sustainable Bicol River Development Authority (SBRDA).The rationale for the
creation of the SBRDA springs from the need to take an integrated approach to the
practical issues that beset the Bicol River System today. There is a wide range of
problems that affect the river system. Climate change, soil erosion, waterway
congestion leading to floods, solid and liquid waste contamination, siltation, and
deforestation, are some of its issues.

‘At present, these problems are addressed separately by the various
government agencies according to their functions. For example, flooding is
addressed by the Department of Public Works and Highways (DPWH), irrigation is
addressed by the National Irrigation Administration (NIA), and environmental
degradation is addressed by the Department of Environment and Natural Resources
(DENR). In reality, the causes and solutions to these are mostly inter-related
Arriving at integrated and comprehensive solutions to the river system's issues,
requires the creation of an organization with goals that cut across departmental
functions and focus on the ecological condition, socio-economic development and
sustainability of the Bicol River

The SBRDA aims to implement the vision of a clean, sustainable river
development that supports life by balancing ecological, economic, aesthetic and
cultural benefits. The SBRDA will be guided by the three pillars of Sustainability:

(1) PlanevEnvironmental Stewardship — referring to the ecological well-being
of the entire Bicol River Basin, rehabilitating and maintain healthy
ecosystem and habitats, implementing greening and aesthetic projects,
ensuring ample water supply for household and economic use


(2) ProfitEconomic Development — referring to economic development in the
river basin area and in Bicol Region, such as, developing sustainable
tourism opportunities.

(3) People/Social Equity — referring to improving health and sanitation
conditions and poverty alleviation, creating sustainable communities and
livelihood, and setting up measures for climate change adapatation and
reducing disaster risks.

This measure is designed to fully realize the great potential offered by the
various resources within the Bicol River for the livelihood of the large segment of
population in the area and increased income for the government, both local and
national

Thus, this Bill is proposed to form the Sustainable Bicol River Development
Authority, with institutional powers to implement programs and projects to achieve

the goals of the SBRD strategy. The Bill also outlines the Authority's functions and
duties, in accordance with the principles of sustainable development, and the SBRD

strategy.

hi ya
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILLNO,_@49"

AN ACT CREATING THE SUSTAINABLE BICOL RIVER DEVELOPMENT
AUTHORITY, PRESCRIBING ITS POWERS, FUNCTIONS AND DUTIES,
PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES.

Section 1. Declaration of Policy. — It is hereby declared to be the policy of the
State to promote, and accelerate the sustainable development and balanced growth
of the Bicol River area and the surrounding municipalities, towns and barangays
(Region), within the context of the national and regional plans and policies for social
and economic development and to carry out the development of the Bicol River
Region with due regard and adequate provisions for environmental management and
control, preservation of the quality of human life and ecological systems, and the
prevention of undue ecological disturbances, deterioration and pollution.

Section 2. Creation. — There is hereby created a body corporate to be known
as the Sustainable Bicol River Development Authority (SBRDA), which shall be
organized within one hundred twenty (120) days after the approval of this Act. The
SBRDA shall execute the powers and functions herein vested and conferred upon it
in such a manner as will, in its judgment, aid to the fullest possible extent in carrying
out the aims and purposes set forth below

Section 3. Headquarters and Main Office. - The Authority may establish its
headquarters at the Camarines Sur Provincial Capitol Complex and may establish
satellite offices within the region wherever it is necessary in the conduct of its
business.

Section 4. Special Powers and Functions. - The SBRDA shall exercise and
perform the following powers and functions:


(a) To make a comprehensive survey of the physical and natural resources
and potentialities of the Region particularly its socio and economic
conditions, hydrologic characteristics, power potential, scenic and tourist
spots, regional problems, and on the basis thereof, to draft a
comprehensive and detailed plan designed to conserve and utilize
optimally the resources within the Region particularly the Bicol River to
promote the Region's rapid social, environmental and economic
development: Provided, That implementation of all fisheries plans and
programs of the SBRDA shall require prior consensus of the Bureau of
Fisheries and Aquatic Resources to ensure that such plans and programs
are consistent with national fisheries plan and programs. For the purpose
of the said survey, public agencies shall submit and private entities shall
provide necessary data except such data, which under existing laws are
deemed inviolable.

(b) To make recommendation to the proper agencies on financing, technical
support, physical assistance and, generally, the level of priority to be
accorded agricultural, industrial and commercial projects, soliciting or
requiring direct help from the national government and its instrumentalities,
private organizations, non-government organizations, and other such
entities that may be tapped for assistance.

(c) To pass upon and approve or disapprove all plans, programs, and projects
proposed by local government offices/agencies within the Region, public
corporations, and private persons or enterprises where such plans,
programs and/or projects are related to those of the SBRDA for the
development of the region as envisioned in this Act. The SBRDA shall
issue the necessary clearance for all approved proposed plans, programs,
and projects within thirty (30) days from submission thereof unless the
proposals are not in consonance with those of the SBRDA or that those
will contribute to the unmanageable pollution of the Bicol River waters or
will bring about the ecological imbalance of the Region: Provided, That the
Authority is hereby empowered to institute necessary legal proceeding
against any person who shall commence to implement or continue
implementation of any project, plan or program within the Bicol River
region without previous clearance from the Authority. Reasonable
processing fees as may be fixed by the SBRDA's Board of Directors shall
be collected by the SBRDA for the processing of such plans, programs
and/or projects: Provided, further, That expansion plans shall be
considered as new plans subject to review of the SBRDA and to payment

of the processing fees.


The SBRDA and national and local government offices, agencies and
public corporations shall coordinate their plans, programs, projects and
licensing procedures with respect to the Bicol River for the purpose of
drawing up a Bicol River Sustainable Development Plan which shall be
binding upon all parties concemed.

(d) To engage in agriculture, industry, commerce, or other activities within the
Region which may be necessary or directly contributory to the social,
environmental, and economic development of the Region, and, for this
purpose, whether by itself or in cooperation with private persons or
entities, to organize, finance, invest in, subsidiary corporations: Provided,
That the SBRDA shall engage only, unless public interest requires
otherwise, in those activities as are in the nature of new ventures or are
clearly beyond the scope, capacity, or interest of private enterprises due to
consideration or geography, technical or capital requirements, returns on
investment, and risk

(e) To plan, program, finance and/or undertake infrastructure projects such as
river, flood and tidal control works, waste water and sewerage works,
water supply, roads, port works, irrigation, housing and related works,
when so required within the context of its development plans and
programs including the readjustment, relocation, or settlement by
population within the Region as may be deemed necessary and beneficial
by the SBRDA: Provided, That should any project be financed wholly or in
part by the SBRDA, it is hereby authorized to collect reasonable fees and
tolls as may be fixed by its Board of Directors from users and/or
beneficiaries thereof to recover costs of construction, operation and
maintenance of the projects: Provided, further, That if the SBRDA should
find it necessary to undertake such infrastructure projects which are
classified, as social overhead capital projects, the SBRDA shall be
authorized to receive financial assistance from the government in such
amount as may be necessary to carry out the said projects subject to such
terms and conditions that may be imposed by the government: Provided,
finally, that such amount as may be necessary for the purpose is hereby
authorized to be appropriated out of the funds of the National Treasury not
otherwise appropriated

(f) To make an annual report regarding the operation of the SBRDA, more
particularly a statement of its financial conditions, activities undertaken,
progress of projects and programs and plans of actions for the incoming
years: Provided, however, that a majority of the stockholders may require
the SBRDA to submit report or reports other than the annual report herein


required, which report must be submitted within a period of sixty (60) days
from notice thereof

(g) To enforce easements involving the Bicol River in accordance with the
New Civil Code, Water Code, Forestry Reform Code and other existing
applicable laws, without prejudice to amendments and/or future laws
pertaining to easements that may be applicable in the future.

(h) To reclaim or cause to be reclaimed portions of the Bicol River or
undertake reclamation projects and/or acquire such bodies of land from
the lake which may be necessary to accomplish the aims and purposes of
the SBRDA: Provided, That the land so reclaimed shall be the property of
the SBRDA and the title thereto shall be vested in the SBRDA.

(i) The provisions of existing laws to the contrary notwithstanding, to engage
in fish production and other aqua-culture projects in the Bicol River and
other bodies of water within its jurisdiction and in pursuance thereof, to
conduct studies and make experiments, whenever necessary, in
coordination with the Bureau of Fisheries and Aquatic Resources, with the
end in view of improving present techniques and practice: Provided, That
until modified, altered or amended by the procedure provided in the
following sub-paragraph, the present laws, rules and permits or
authorizations remain in force

For the purpose of effectively regulating and monitoring activities in the
Bicol River, the SBRDA shall have exclusive jurisdiction to issue new
permit for the use of the river waters for any projects or activities in or
affecting the said river including navigation, construction, and operation of
fishpens, fish enclosures, fish corrals and the like, and to impose
necessary safeguards for river quality control and management and to
collect necessary fees for said activities and projects: Provided, That the
fees collected for fisheries may be shared between the SBRDA and other
government agencies and political sub-divisions in such proportion as may
be determined by the SBRDA's Board: Provided, further, That the
SBRDA's Board may determine new areas of fishery development
activities in coordination the Bureau of Fisheries and Aquatic Resources
taking into account the overall development plans and programs for the
Bicol River and related bodies of water. Provided, finally, that the SBRDA
shall promulgate such rules and regulations which shall govern fisheries
development activities in the Bicol River taking into consideration among
others the following: bonafide resident fishermen whether individually or
collectively in the form of cooperatives, riverside town development, a

G


master plan for fishpen construction and operation, communal fishing
ground for riverside town residents, and preference to riverside town
residents in hiring laborers for fishery projects.

(k) To recommend to the province, cities or municipalities embraced within the
Region to pass appropriate zoning ordinances and other regulatory
measures necessary to carry out the objectives of the SBRDA and enforce
the same with the assistance of the SBRDA.

(l) To extend the necessary planning, management and technical assistance
to prospective and existing investors in the Region.

(m)The provision of existing laws to the contrary notwithstanding, to exercise
water rights over public waters within the Region whenever necessary to
carry out the SBRDA's projects.

(n) To act in coordination with existing government agencies in establishing
water quality standards for industrial, agricultural and municipal/city waste
discharges into the river and to cooperate with said existing agencies of
the government of the Philippines in enforcing such standards, or to
separately pursue enforcement.

(0) To develop water supply and hamess water resources, in coordination
with the National Water Resources Board or its successors in interests,
and to enter into agreements with municipalities, governmental agencies
and corporations and the private sector to supply, distribute and market
such water or water resource.

(p) To engage in, develop and implement activities and programs for the
production of conventional, alternative and renewable sources of energy
that may be available in the Bicol River, and for the recovery and reuse of
energy that would otherwise be wasted.

(q) To undertake studies on the improvement and maintenance of the water
quality of Bicol River, and in pursuance thereof, prepare a water quality
management program on a continuing basis, which the SBRDA shall carry
out with the assistance and support of national and local government units
involved in water quality management.


(r) To formulate and implement policies, standards, programs and projects for
proper waste management affecting the Bicol River.

(s) To formulate and implement policies, rules and regulations, standards,
programs and projects for the promotion and safeguarding of the health
and sanitation of the Bicol River and for the enhancement of ecological
balance and the prevention, control and abatement of environmental
pollution.

(t) To promote public safety which includes the formulation and
implementation of programs and policies and procedures to achieve public
safety, especially preparedness for preventive or rescue operations during
times of calamities and disasters such as conflagrations, earthquakes,
flood and tidal waves, and coordination and mobilization of resources and
the implementation of contingency plans for the rehabilitation and relief
operations in coordination with national agencies concerned

(u) To conduct activities, initiatives and programs that will create, boost and
promote tourism, culture and sports within the Bicol River.

(v) To create and implement programs geared towards the promotion,
preservation and conservation of Bicol River's history and culture.

(w)To enter into Public-Private Partnership (PPP) programs, projects and
contracts.

(x) To plan, manage and conduct such other activities, inititiatives and
programs consistent with the Sustainable Bicol River Development Plan.

Section 5. The Powers of the SBRDA. - The SBRDA shall have the following
powers and functions:

A. To succeed on its corporate name;

B. To sue and be sued in such corporate name;


C. To adopt, alter and use a corporate seal;
D. To adopt, amend, and repeal its by-laws;

E. To enter into contracts of any kind and description, to enable it to carry out
its purposes and functions under this Act;

F. To acquire, buy, purchase, hold or lease, such personal and real property
as it deems necessary or convenient in the transaction of its business and/ or
in relation with carrying out its purposes under this Act, and to lease,
mortgage, sell, alienate, or otherwise encumber, utilize, exploit or dispose and
such personal and real property held by it, subject to prior or existing
individual or communal right of private parties or of the government or any
agency or enterprise thereof;

G. To exercise the right of eminent domain whenever the Authority deems it
necessary for the attainment of the objectives of the Authority under this Act;

H. To borrow funds from any local or foreign financial institutions independent
of the bonds it may issue or may continue to issue, to carry out the purposes
of this Authority under this Act;

|. For carrying on its business, or for the purpose of attaining or furthering any
of its objectives, to perform any and all acts which a corporation, co-
partnership, or natural person is authorized to perform under the laws now
existing or which may be enacted hereafter;

J. To issue such rules and regulations as may be necessary to effectively
carry out the powers and purposes herein; provided including the plans,
programs and projects of the Authority, to take effect thirty (30) days after
publication thereof, in a newspaper of general circulation

Section 6. Capitalization and Financing. - The Authority shall have a capital of
One Billion Pesos (PhP1,000,000,000.00), which shall be entirely funded by the
national government.


Section 7. Operating Expenses. - For the operating expenses of the SBRDA,
the sum of One Hundred Million Pesos (PhP100,000,000.00) is hereby appropriated
annually for five (5) years from the general fund of the National Government not
otherwise appropriated from the date of approval of this Decree. The Board of
Directors may appropriate out of the funds of the SBRDA such as may be needed or
necessary for its operating expenses

Section 8. Exemption from Tax. - The SBRDA shall be exempt from all taxes,
licenses, fees, and duties, incidental to its operations. All notes, bonds, debentures
and other obligations issued by the SBRDA shall be exempt from all taxes both as to
principal and interest, except inheritance and gift taxes.

Section 9. Guarantee by the Government. - The Republic of the Philippines
hereby guarantees the payment by the SBRDA of both the principal and the interest
of the bonds, debentures, collaterals, notes or such other obligations issued by the
SBRDA by virtue of this Act, and shall pay such principal and interest in the event at
the SBRDA fails to do so. In case the SBRDA shall be unable to pay the said
principal and interest, the Secretary of Finance, shall pay the amount thereof which
is hereby appropriated out of any funds in the National Treasury not otherwise
appropriated, and thereupon, to the extent of the amounts so paid, the Government
of the Republic of the Philippines shall succeed to all the rights 0 the holders of
which bonds, debentures, collaterals, notes or other obligations, unless the sum so
aid by the Republic of the Philippines shall be refunded by the SBRDA within a
reasonable time.

Section 10. Composition of the Board of Directors. - The corporate powers
shall be vested in and exercised by a Board of Directors (Board), which shall be
composed of thirteen (13) members, to wit: the Provincial Governor of Camarines
Sur, the Provincial Governor of Camarines Norte, the Provincial Governor of Albay,
the Regional Director of the Department of Public Works and Highways, the
Regional Director of the Department of Tourism, the Regional Director of the
Department of Department of Environment and Natural Resources, the Regional
Director of the National Irrigation Administration, the Regional Director of the
Department of Agriculture, the Regional Director of the National Economic and
Development Authority, a General Manager of the SBRDA to be appointed by the
President of the Philippines, and three additional representatives from the private
sector, the academe and Non-Government Organization (NGO) to be appointed by
the first ten (10) members once they convene.

The Board of Directors shall elect annually from among their members a
Chairman and a Vice-Chairman. There shall be a Corporate Secretary who shall be
appointed by the Board. The officials next in rank to the above-mentioned members


shall serve as permanent alternate members and shall attend meetings of the Board
in the absence of their principals.

Section 11. Acting Chairman. - In case of vacancy in the position of
Chairman, or in the absence of or temporary incapacity of the Chairman, the Vice-
Chairman shall act as such until a new Chairman is duly elected by the Board.

Section 12. Effect of Vacancies and Quorum. - Vacancies in the Board as
long as there shall be seven (7) members in office, shall not impair the powers of the
Board to execute the functions of the SBRDA. The affirmative vote of seven (7)
members of the Board shall be necessary at all times to pass or approve any act or
resolution

Section 13. Prohibition against “Conflict of interest’. - No member of the
Board shall be financially interested, directly or indirectly, in any contract entered into
by the SBRDA or in any special privileges granted by the SBRDA during its term of
office. All contracts entered into in violation of this provision shall automatically be
null and void

Section 14. Removal of a Board member. Any member of the Board found
violating this Act or the Code of Conduct and Ethical Standards for Public Officials
and Employees, by two-thirds (2/3) vote of the Board, shall be disqualified from
serving his un-expired term, and shall furthermore be perpetually disqualified for
membership in the said Board.

Section 15. Board Meetings. - The Board shall meet at least once a month
The Board shall be convened by the Chairman or upon written request signed by a
majority of the members

Section 16. Powers and Functions of the Board of Directors. -

(a) To formulate, prescribe, amend and repeal rules and regulations to govern
the conduct of business of the SBRDA;

(b) To appoint and fix the compensation of all officials from division heads and
above, and others of comparable rank upon the recommendation of the
General Manager;


(c) By a majority vote of all members of the Board, to suspend, remove or
otherwise discipline for just cause all officials appointed by the Board other
than the three (3) additional appointed members of the Board;

(d) To approve the annual and/or supplemental budgets of the SBRDA; and

(e) To do such other acts and perform such other functions as may be
necessary to carry out the provisions of this Charter.

Section 17. Powers and Functions of the General Manager. - The General
Manager shall be the chief executive of the SBRDA. As such, he shall have the
following powers and duties:

(a) Submit for consideration of the Board the policies and measures which he
believes to be necessary to carry out the purposes and provisions of this
Act;

(b) Execute and administer the policies, plans, programs and projects
approved by the Board;

(c) Direct and supervise the operation and internal administration of the
SBRDA. The General Manager may delegate certain of his administrative
responsibilities to other officers of the SBRDA subject to the approval of
the Board;

(d) Recommend and appoint officials and employees below the rank of
division heads to positions in the approved budget upon the approval of
the majority of the members of the Board of Directors;

(e) Submit quarterly reports to the Board on personal selection, placement
and training; and

(f) Perform such other functions as may be provided by law.


Section 18. Separability Clause. - The provisions of this Act are hereby
declared to be separable, and in the event any one or more of such provisions are
held unconstitutional, they shall not affect the validity of other provisions.

Section 19. Laws repealed. - All acts, charters, executive orders,
administrative orders, proclamations, rules and regulations, or parts thereof in
conflict with this Act are hereby repealed or modified accordingly.

Section 20. Effectivity. - This act shall take effect upon its approval

Approved,

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