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FOURTEENTH CONGRESS OF THE 
1 
REPUBLIC OF THE PHILIPPINES 
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9 FEE 17 1’4 :05 
Second Regular Session 
Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
Article XII, Section 1 of the Philippine Constitution states, “The goals of the 
national economy are a more equitable distribution of opportunities, income, and wealth; 
a sustained increase in the amount of goods and services produced by the nation for the 
benefit of the people; and an expanding productivity as the key to raising the quality of 
life for all, especially the underprivileged.” 
Moreover, Article XIII, Section 1 submits that “The Congress shall give highest 
priority to the enactment of measures that protect and enhance the right of all the people 
to human dignity, reduce social, economic, and political inequalities, and remove cultural 
inequities by equitably diffusing wealth and political power of the common good.” 
The island of Mindanao is home to more than 19 million people. It is composed of 
6 regions, 27 provinces, and 33 cities. It is rather ironic that while it is considered to be 
the richest in terms of natural resources, it is also the poorest. 
Global recession is making life diEficult for all the peoples of the world. If we in 
the more urban cities like Metro Manila are finding it difficult to cope with the hard 
times, imagine how much harder it is for our brothers and sisters in Mindanao who are 
steeped in poverty and burdened by the armed conflict. 
In 2006, six of the 10 provinces with highest poverty incidence were from 
Mindanao: Tawi-Tawi, Zamboanga del Norte, Maguindanao, Surigao del Norte, Lanao 
del Sur, and Misamis Occidental. Tawi-Tawi, the poorest province, recorded poverty 
incidence at 78.9 percent, which means almost 8 in every 10 families were considered as 
poor. 
Official government statistics in 2006 also showed that the two poorest regions 
were from Mindanao, namely ARMM and Caraga. Poverty incidence in ARMM and 
Caraga were at 55.3 percent and 45.5 percent, respectively. The figure in ARMM means 
that more than half of its families are classified as poor. The armed conflict in ARMM 
has resulted to a lot of displaced families, which makes poverty alleviation efforts 
difficult to implement, and Caraga, despite being an agricultural region, remains poor 
because it lacks good road network. 
Poverty has driven many to commit crimes, and drug smuggling and kidnap-for- 
ransom have become lucrative businesses for renegades and terrorists. 
1 


Mindanao provinces also dominated the 2003 list of 10 provinces with the lowest 
human development index (HDI). In the 2003 HDI Report of the United Nations 
Development Programme, seven Mindanao provinces got the lowest HDI. These were 
Sulu (lst), Maguindanao (2nd), Tawi-tawi (3rd), Basilan (4th), Zamboanga del Norte 
(6th), Saranggani (7th) and Lana0 del Sur (10th). 
The many problems in Mindanao call for the creation of an agency that looks 
beyond regional concerns and integrates peace and development efforts at a Mindanao- 
wide perspective. The Mindanao Economic Development Council (MEDCo), which has 
been in existence for the past 16 years, spearheads socio-economic development efforts 
in Mindanao in particular and the Mindanaoans in general. While the National Economic 
Development Authority (NEDA) is tasked to formulate plans on a national level, it is the 
MEDCo that devise economic programs that are more suited to the needs of Mindanao 
and its people. 
In fact, it is instrumental in the construction of critical infrastructure requirements 
such as farm-to-market roads, housing units, various irrigation projects and improvement 
of existing airports. 
This bill aims to strengthen the mandate of the MEDCo, in order that genuine 
peace and development shall be achieved in the Mindanao region. A pro-Mindanao 
mindset is imperative to promote our nation’s growth. 
In view of the foregoing, the approval of this bill is earnestly sought 
MANNYVI 4 
LAR 
2 


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FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
1 
1 
9 
FER I7 P c  :05 
Second Regular Session 
Introduced by Senator Manny Villar 
AN ACT 
CREATING THE MINDANAO ECONOMIC DEVELOPMENT AUTHORITY 
(MEDA), DEFINING ITS POWERS AND FUNCTIONS, AND PROVIDING 
FUNDS THEREFORE 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the “Mindanao Economic 
Development Authority (MEDA) Act of 2009.” 
SECTION 2. Declaration of Policy. - It is hereby declared a policy of the State 
to accelerate the socio-economic growth and development of Mindanao, by encouraging 
and increasing trade, tourism and investments, encouraging private enterprise, and 
advancing efforts towards peace and development. Towards this end, an effective 
institutional mechanism shall be established to address the need for a coordinative and 
integrative approach for the formulation and implementation of various Mindanao-wide, 
Mindanao-specific interregionaf development plans, programs and projects. The 
government shall furthermore undertake efforts to promote the active participation of 
Mindanao and Palawan in the Brunei Darussalam-Indonesia-Malaysia-the Philippines - 
East ASEAN Growth Area (BIMP-EAGA). 
SECTION 3. Creation of the Midanuo Economic Development Authority. - 
The Mindanao Econoinic Development Authority, hereinafter referred to as the 
Authority, is hereby created which shall promote, coordinate, and facilitate the active and 
1 


extensive participation of all sectors to effect the socio-economic development of 
Mindanao. It shall also act as an implementing agency for Mindanao-specific 
interregional and Miridanao-wide programs and projects, whenever necessary. 
SECTION 4. Coverage. - The Authority shall cover all the provinces and cities 
of Regions IX, X, XI, XII, Caraga and Autonomous Region in Muslim Mindanao 
(ARMM). 
SECTION 5. Principal Ofice and Term. - The Authority shall have its main 
office at Davao City. It may establish area management offices (AMOS) as it may deem 
necessary to achieve the objectives of this Act. The Authority shall have a term of fifty 
(50) years from the effectivity of this Act and renewable for the same period unless 
otherwise provided by law. 
SECTION 6. Powers and Functions of MEDA. - In the exercise of those 
activities which are Mindanao-wide and/or Mindanao-specific in character, the Authority 
shall have the following powers and functions: 
Formulate an integrated development framework for Mindanao that is 
consistent with the peace initiatives of the national government; 
Integrate, prioritize and program Mindanao-wide, interregional and region 
specific programs, activities and projects with Mindanao-wide impact; 
Advocate to the constituents of Mindanao, their elected representatives in 
Congress, and the National Government, national policies that will foster 
the integrated and balanced development of Mindanao; 
Promote and facilitate investments in any field which would enhance the 
socio-economic development of Mindanao and uplift the living standards 
of the people and their socio-political activities in close coordination with 
agencies primarily mandated to undertake such function; 
2 


Explore sources for financing priority Mindanao-wide and/or Mindanao- 
specific interregional programs, projects and activities; 
Coordinate and facilitate the extension of necessary planning, 
management, and technical assistance to prospective and existing 
investors, complementary and in support of agencies primarily mandated 
to execute such functions; 
Establish a comprehensive and integrated databases on Mindanao and 
BIMP-EAGA necessary for planning and decision-making; 
Monitor, evaluate and formulate recommendations on the implementation 
of Mindanao-wide and/or Mindanao-specific inter-regional development 
programs, activities and projects; 
Act as the implementing agency, whenever necessary, for the 
accomplishment of Mindanao-specific interregional or Mindanao-wide 
programs and projects, including Official Development Assistance (ODA) 
projects, subject to such limitations prescribed by existing laws, rules, and 
regulations; 
Provide strategic direction for Mindanao; 
Oversee mega infrastructure programs and projects with Mindanao-wide 
impact such as the Mindanao Super Region Program; 
Establish appropriate mechanisms to ensure the timely implementation of 
Mindanao-wide and Mindanao-specific interregional projects, whenever 
necessary, including, but not limited to public-private partnership; 
Review and recommend for approval by the NEDA Board such 
Mindanao-wide and Mindanao-specific inter-regional programs, projects, 
and plans by the national government and donor agencies subject to 
existing laws, rulesand regulations; 
Act as the official and permanent Philippine Coordinating Office for 
BIMP-EAGA (PCOBE) and as lead agency of the government in 
3 


coordinating the formulation and implementation of policies and programs 
and monitoring of all activities related thereto; 
Represent and strengthen the participation of the Philippine focus areas for 
BIMP-EAGA which are Mindanao and Palawan: 
Closely coordinate with the private sector in all policy deliberations 
concerning BIMP-EAGA, 
Act as a data bank for BIMP-EAGA and other related data by collecting, 
consolidating and processing data and analyzing the resulting information 
and thereafter disseminating the information gathered to various groups; 
Initiate and coordinate the establishment of BIMP-EAGA desks in 
concerned national agencies, local government units and private 
enterprises; 
Undertake advocacy for the adoptiodapproval of new policies or policy 
changes and the promotion of initiatives for the growth of the BIMP- 
EAGA; 
Formulate and develop new plans andor programs for the Philippine 
participation in the BIMP-EAGA based on the consensus of the 
BIMPEAGA Clusters and Working Groups, andor Heads of State, 
Signing Ministers and Senior Officials; 
Initiate and facilitate sourcing of technical and other forms of assistance to 
BIMP-EAGA projectshnitiatives; 
Monitor developments in the BIMP-EAGA and follow-through 
agreements entered into by the Philippine parties; 
Ensure efficient and effective technical and administrative support 
services lor the Philippines’ BIMP-EAGA operations and coordinate 
budgetary requirements for this purpose; 
Engage or invest on or enter into joint venture with Filipino and foreign 
investors in such Mindanao-wide andor interregional projects as it may 
4 


deem proper and necessary or contributory to the economic development 
of Mindanao; 
Receive and administer donations, contributions, grants, bequest or gifts in 
cash or in kind from foreign governments, international agencies, private 
entities, and other sources, including Official Development Assistance 
(ODA) agencies, for purposes that would contribute to the development of 
Mindanao, subject to existing laws, rules and regulations; 
To sue and be sued, enter into contracts, acquire, purchase, hold, lease, 
transfer, dispose of property of any kind or nature necessary to carry out 
the purposes of this Act; 
Discharge other functions which may be deemed necessary or as may be 
provided by law. 
(y) 
(2) 
(aa) 
The Authority, through the MEDA Chairperson, shall submit to the President and 
both Houses of Congress annual reports on its accomplishments and activities. 
SECTION 7. Chairperson. - The MEDA Chairperson, hereinafter referred to as, 
the Chairperson, shall be appointed by the President of the Philippines with a cabinet 
rank and shall act as the Head of office. He/she shall serve a term of six (6) years from 
the date of his appointment unless removed for cause. Heishe shall also be the Philippine 
Senior Official for BIMP-EAGA. Heishe shall likewise be a member of the National 
Economic Development Authority (NEDA) Board. 
The Chairperson shall have the following duties and functions: 
Call and preside at the meetings of the MEDA Advisory Board and see to 
it that the policies, programs, and rules and regulations developed and 
promulgated by it are implemented properly; 
Call on development players in the formulation and implementation of a 
comprehensive and integrated development plan for Mindanao, investment 
programs including the preparation of a system of investment 
programming priorities, annual reports and other pertinent documents 
5 


approved by MEDA, (c) Identify solutions to key issues and concerns 
taking into account related risks, affected parties and impact, in 
coordination with the Board and key stakeholders, whenever necessary; 
Advocate the Authority’s work for Mindanao among the various 
concerned sectors and stakeholders; 
Call on any agency, group, individual member of the Board, local 
government unit, and host community to address issues and concerns 
relating to implementation of major programs, projects and activities; 
Supervise the monitoring and timely implementation of Mindanao-wide 
and/or Mindanao-specific inter-regional programs, projects and activities: 
Endorse to the MEDA Advisory Board all policy recommendations, plans, 
programs, and projects for approval; 
Represent the MEDA Advisory Board in regular and Special Cabinet 
Meetings; 
Convene the BIMP-EAGA Advisory Board to discuss issues and 
concerns, and recommend policies and programs to ensure the widest 
participation of Mindanao and Palawan in BIMP-EAGA, 
Accept, in behalf of MEDA, donations, contributions, grants and bequests 
or gifts, in cash or in kind, from members, foreign governments, 
international offices, private entities or any individual for purposes that 
will realize the functions of the Authority; 
Supervise administrative operations including disbursement of any fund of 
the MEDA subject to usual accounting and auditing procedures, and 
submit reports thereon; 
Execute and administer the policies and measures approved by the MEDA 
Advisory Board; 
Appoint all employees of the Authority, and remove, dismiss or otherwise. 
discipline for cause, such employees in accordance with the standard 
6 


guidelines for recruitment, employment, and discipline in the Civil Service 
Code; 
Represent the Authority in all dealings with other offices, agencies, and 
instrumentalities of the Government and with all persons and entities, 
public or private; 
Sign agreements and/or contracts in behalf of the Authority, including 
those for expert and consultant services and other reports of 
accountabilities emanating from the Authority; 
Perform such other functions that the MEDA Advisory Board may direct 
to carry out the provisions of this Act. 
SECTION 8. Executive Director. - An Executive Director shall be appointed by 
the President of the Philippines upon recommendation by the Chairperson. He/she shall 
possess the requisite eligibilities for third (3rd) level career service position. He/she shall 
assist the Chairperson in carrying out the functions of Authority and shall likewise serve 
as the Secretary of the MEDA Advisory Board. 
SECTION 9. MEDA Advisory Board. - The Authority's overall directions and 
thrusts shall be provided and approved, unless provided otherwise in this Act, by the. 
MEDA Advisory Board, hereinafter referred to as the Board. It shall be composed of the 
following members: 
The MEDA Chairperson; 
The Chairpersons of the Regional Development Councils (RDCs) of 
Regions IX, X, XI, XI1 and XIII, and the Regional Economic 
Development and Planning Board (REDPB) of ARMM, 
The Chairperson of the House Committee on Mindanao Affairs; 
The Chairperson of the House Committee on BIMP-EAGA Affairs; 
The Vice President for Mindanao of the Union of Local Authorities of the 
Philippines (ULAP); 
7 


(f) 
The President of the Mindanao Confederation of Governors’, City 
Mayors’ and Municipal Mayors’ League Presidents; 
The Administrator of the Southern Philippines Development Authority 
(SPDA); and, 
The three (3) representatives from the Private Sector to be appointed by 
the President, upon the recommendation of the Chairperson and Board 
members, comprising of one representative each from the: 
1. 
Mindanao Business Sector 
ii. 
Mindanao Academe Sector 
iii. 
(g) 
(h) 
Mindanao Nan-Government Organization (NGO) Sector 
Members of the Board shall receive a per diem of not more than Five Thousand 
Pesos (P5,OOO) for every board meeting: Provided, however, that the per diem collected 
per month does not exceed the equivalent of four (4) meetings. Provided, further, that the 
amount of per diem for every board meeting may be increased by the President but such 
amount shall not be increased within two (2) years after its last increase. 
The Board shall have the following functions: 
Provide direction and guidance for the Authority’s work and thrusts for 
Mindanao ; 
Ensure that the goals and policies of the Authority are consistent with the 
overall national development goals and objectives; 
Ensure that the programs of the Authority are consistent with regional and 
local development plans, program and projects, and vice versa for 
purposes of harmonization; 
Explore sources for financing of priority Mindanao-wide and/or Mindanao 
specific inter-regional plans, programs, projects and activities; 
Create committeeshask forces as may be deemed necessary in the 
accomplishments of its duties and functions; 
8 


( f )  
Determine schedules, establish voting procedures, criteria for the 
constitution of a quorum, and other rules and regulations in the conduct of 
Board meetings; and 
Perform such other functions as may be necessary to carry out the 
purposes of this Act. 
(g) 
SECTION 10. Executive Committee. - The Board shall constitute an Executive 
Committee, hereinafter referred to as the Execom, from among its membership to act, for 
and on its behalf when the Board is not in session, on urgent matters as may be deemed 
necessary by the Chairperson. To enswe inter-regional representation and participation, 
the following shall comprise the Execom: 
(a) 
The MEDA Chairperson 
(b) 
The Chairpersons of the RDCs and REDPB 
(c) 
(d) 
The Representative from the Mindanao Business Sector 
The Representative from the Mindanao Non-Government Organization 
(NGO) Sector 
The Executive Director, as the Board Secretary, shall provide technical assistance 
to the Execom. 
SECTION 11. BZMP-EAGA Advisory Board. - There is hereby constituted a 
BIMP-EAGA Advisory Board to be composed of the following: 
MEDA Chairperson as Head; 
Chairpersons of the RDCs of Regions IX, X, XI, XI1 and XIII, and 
REDPB of ARMM; 
City Mayor of Puerto Princesa; 
Provincial Governor of Palawan; and, 
Two Philippine Country Representatives to the BIMP-EAGA Business 
Council (BEBC). 
9 


The BIMP-EAGA Board shall convene, from time to time, to discuss issues and 
recommend policies aid programs to ensure the widest participation of Mindanao and 
Palawan in the activities of BIMP-EAGA. It shall make recommendations to the 
Chairperson, being the Head of the PCOBE. The PCOBE, in consultation with the BIMP- 
EAGA Board, will draw up its own procedures for making recommendations, finalizing 
decisions and overseeing implementation of BIMP-EAGA activities in Mindanao and 
Palawan. 
SECTION 12. Organizational Structure. - The Chairperson shall determine the 
organizational structure, staffing pattern, and pay scales of the Authority subject to 
existing civil service and compensation laws. The Chairperson may reorganize the 
Authority and may create or abolish divisions, units, or branches therein as the exigencies 
of the affairs of the Authority may require. 
SECTION 13. Transitury Provisions. - The Mindanao Economic Development 
Council (MEDCo), created under Executive Order 512, and Executive Order 244, as 
amended, is hereby abolished. 
The unexpended appropriations of the abovementioned agency are hereby 
transferred to MEDA including its existing records, properties, equipment, facilities and 
other assets. 
The MEDA shall absorb the existing plantilla positions and incumbent staff of 
MEDCo who shall continue to perform their respective duties and responsibilities and 
receive the corresponding salaries and benefits, in the fulfillment of the powers and 
functions of MEDA. 
SECTION 14. Appropriations. - The amount necessary to finance the initial 
implementation of this Act shall be charged against the current year’s appropriations of 
the Mindanao Economic Development Council (MEDCo). Thereafter, the current budget 
10 


shall be increased by loo%, which amount shall be included in the Annual General 
Appropriations Act (GAA) for its continued iniplementation. 
The current appropriations of MEDCo shall be transferred to the Mindanao 
Economic Development Authority to commence its activities. 
SECTION 15. Separability Clause. - If any provision or part hereof, is held 
invalid or unconstitutional, the remainder of the Act or the provision not otherwise 
affected shall remain valid and subsisting. 
SECTION 16. Repealing Clause. - Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation contrary to, 
or inconsistent with the provisions of this Act is hereby repealed, modified or amended 
accordingly. 
SECTION 17. Effectivity Clause. - This Act shall take .effect fiffeeri ( I  5) days 
after its publication in at least two (2) newspapers of general circulation. 
Approved, 
11