REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 5318

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTES

In 1933, American surveyors discovered and mapped the eastern continental shelf of the
Philippines. They discovered an undersea landform which they named Benham Plateau or
Benham Rise. It was named after an American Admiral Andrew Ellicot Kennedy Benham (1832-
1905). Benham Rise’s connection to the Philippine shelf through the Palanan saddle and the
Bicol saddle was validated only recently to justify the country’s territorial claim. This 13-
million-hectare underwater region (with coordinates 119°30°E to 132°00°E and 12°10°N to
20°30°N) east of Luzon is 35 meters underwater at its shallowest Point off the provinces of
Aurora and Isabela.
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Benham Rise lies within the continental shelf of the Philippines as defined by the 1982 UN
Convention on the Law of the Sea (UNCLOS) and is not subject to any maritime boundary
disputes and claims. Thus, the Philippines filed a claim to the territory last April 8, 2009, which
the UN subsequently approved on April 12, 2012 confirming that the landmass was Part of the
country’s continental shelf. Accordingly, the Congress of the Philippines enacted Republic Act
No. 9522, also known as the Archipelagic Baselines Law, which served as the basis of the claim.

Previous studies conducted by the DENR have indicated large deposits of methane in solid form
in the area and also manganese nodules. In addition, the NAMRIA also speculates that there are
as deposits in the area. If developed and exploited, Benham Rise could turn the Philippines into
a natural gas exporter because of the area's huge methane deposits, thereby reducing the
country’s dependence on imported petroleum.

It has been four years since the decision of the UN and it seems that no explorations have been
Conducted in the area to tap into this potential source of. energy, There is a need to look into this
and determine what the government, Particularly the DENR and the DOE, is doing in order to
Confirm the reports on the huge gas deposits in the area and how said deposits could be utilized

by the country. More alarmingly, a Chinese research ship has been spotted recently presumably
surveying the area.

In view of the foregoing reasons, the expeditious approval of this bill is earnestly requested.
&

HO} “ARY C. ALEJANO


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
* First Regular Session

House Bill No. 5318

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO.

AN ACT
CREATING THE BENHAM RISE DEVELOPMENT COMMISSION (BRDC),
DEFINING ITSPOWERS AND FUNCTIONS, PROVIDING FUNDS THEREFOR AND
FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Republic of the
Philippines in Congress assembled:

SECTION 1. Short Title. This Act shall be known as the “Benham Rise Development
Commission.”

SECTION 2. Declaration of Policy. It is the policy of the State to tap and accelerate the
sound and sustainable development of Benham Rise, Particularly on its potential to be a rich
source of alternative energy, minerals, marine Tesources, and as a possible tourism destination.

Towards this end, an effective institutional mechanism shall be established to address the
need for a coordinated and integrated approach in the formulation and implementation of various
development plans, programs and projects that will optimize the full potential of Benham Rise.

SECTION 3. Creation of the Benham Rise Commission. There is hereby created a body
to be known as the Benham Rise Development Commission, hereinafter referred to as the
Commission.

The Commission shall be the sole policy-making body of the government which shall be
tasked to promote, coordinate, monitor, facilitate, and evaluate the Programs and action plans of
the government relating to the Benham Rise pursuant to the Provisions of this Act. The
Commission shall encourage the active and extensive Participation of all sectors to effect the
exploration and shall seéure the rights of the State over the Benham Rise.

The Commission shall be organized within one hundred eighty (180) days after approval
of this Act, It shall be an attached agency to the Office of the President. It shall establish its

Principal office in Tuguegarao, Cagayan and may Put up such branches as may be necessary to
achieve the objective of this Act.

SECTION 4. Coverage. The Commission shall cover all natural resources located at the
Benham Rise, encompassing more or less the 13-million-hectare underwater plateau within
Coordinates 119°30°E to 132°00°E and 12°10°N to 20°30°N. latitude, as provided in the decision
of the United Nations Convention on the Law of the Sea (UNCLOS) which Provides that the
aforementioned landmass is Part of the Philippine’s continental shelf and territory.


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SECTIONS. Composition of the Commission. The Commission shall be composed of
the following
(a) One Commissioner to be appointed by the President; which shall act as the
Chairperson of the Board; ;
(b) One Commissioner, which shall be responsible for the National Panel of Technical
Experts. This panel will be responsible for research and development
(©) One Commissioner, which shall be responsible for the Advisory Panel. This panel
will be responsible for regulations and policy making.

SECTION 6. Qualifications, Tenure, and Compensation of the Commissioners. The
Commissioner shall serve a term of six (6) years from the date of his/her appointment unless
Sooner separated from service due to mental/physical incapacity, death, voluntary resignation or
removal for cause: Provided, That no person shall be appointed as Commissioner unless he/she
is a holder of a degree in law or a masters degree in any of the following fields: economics,
business, public administration, law, management or their equivalent and have at least ten (10)
years relevant experience in said fields: Provided, further, That he/she shall be a resident of the
Philippines for at least five (5) years before the appointment.

The Commissioners shall work full-time. They shall receive regular salary and
compensations appropriate to their level and rank and in accordance with the Salary
Standardization Law and with existing rules and regulations.

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SECTION 7. Powers and Functions of the Commission. The Commission shall have
the following powers and functions:

(a) Formulate an integrated development framework for Benham Rise that is consistent

to the development initiatives of the national government, as far as practicable:

(b) Integrate, prioritize, program and implement, whenever allowed and authorized by
applicable laws, programs, activities and projects at the Benham Rise, including
Official Development Assistance (ODA) Projects, subject to such limitations
prescribed by existing laws, rules and regulations;

(c) Recommend to and, whenever necessary, call upon the proper agencies on the
technical support, physical assistance and, generally, the level of priority to be
accorded to environmental, agricultural, fisheries, energy, industrial, commercial,
infrastructure, tourism, technological and scientific Programs and projects soliciting
or requiring direct or indirect help from or through the national government or any of
its agencies or instrumentalities.

(d) Advocate national policies that will foster the integrated, balanced and sustainable
development of Benham Rise;

(e) Promote and facilitate public and private investments in any field that would enhance
the economic development of Benham Rise in close coordination with agencies
primarily mandated to undertake such functions;

(®) Explore other sources of financing, if applicable or necessary, for priority Benham
Rise related programs, projects and activities:

(g) 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;

(h) Establish a comprehensive and integrated database on Benham Rise needed for
planning and decision making:

(i) Monitor, evaluate and formulate recommendations in the implementation of
development programs, activities and projects involving Benham Rise:



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@) Provide strategic direction for the sustainable and long-term development of Benham
Rise;

(k) Establish appropriate mechanisms to ensure the timely implementation of Benham
Rise projects, whenever necessary, as far as practicable, including, but not limited to,
public-private partnership; '

(1) Review and recommend for approval by the Office of the President such Benham
Rise programs, projects, and plans by the national government and donor agencies
subject to existing laws, rules and regulations;

(m)Act as the official and permanent lead agency of the government in coordinating the
formulation and implementation of policies and programs;

(n) Receive and administer donations, contributions, grants, bequests or gifts, in cash or
in kind, from foreign governments, international agencies, private entities and other
sources, including ODA, to be used in the development of Benham Rise, subject to
existing laws, rules and regulations;

(0) To sue and be sued, enter into contracts, acquire, purchase, hold, lease, transfer,
dispose of property of any kind or nature to carry out the purpose to this Act; and,

(P) Discharge other functions that may be deemed necessary or as may be provided by
law.

The Chairperson of the Commission shall submit to the President and both Houses of

Congress annual reports on its accomplishments and activities,

SECTION 8. Power and Duties of the Commissioner. The Commissioner shall have the

following powers and duties:

(a) To direct and manage the affairs of the Commission in accordance with its policies,
programs and rules and regulations;

(b) Call and preside meetings of the Commissioners and see to it that the policies,
Programs and rules and regulations are implemented properly;

(©) Call on outstanding and credible individuals in the formulation and implementation
of a comprehensive and integrated development plan for Benham Rise, the
preparation of investment programming priorities, annual reports and other pertinent
documents approved by the Commission.

(4) Identify solutions to key issues and concems, taking into account related risks,
affected parties and impact, in coordination with the Board and key stakeholders;

(e) Advocate the Commission’s work among the various concerned sectors and
stakeholders;

(® Call on any agency, group, individual member of the Commission, local government
unit, and host community to address issues and concerns relating to implementation
of major programs, projects and activities;

(g) Supervise the monitoring and timely implementation of Benham Rise related
programs, projects and activities;

(h) Endorse to the Commission all policy recommendations, plans and programs for
approval;

(i) Accept, on behalf of the Commission, donations, contributions, grants and bequests
or gifts, in cash or in kind, from members, foreign governments, international
agencies, private entities or any individual for Purpose that will realize the functions
of the Commissio1

(i) Supervise administrative operations including disbursement of any fund of the
Commission, subject to the usual accounting and auditing Procedures, and submit
reports thereon;

(k) Execute and administer the policies and measures approved by the Commission;



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(1) Appoint all employees of the Commission, and remove, dismiss or otherwise
discipline for cause, such employees in accordance with the standard guidelines for
recruitment, employment, and discipline in the Civil Service Code;

(m)Represent the Commission in all dealings with other offices, agencies, and
instrumentalities of the government and with all persons and entities, public or
private;

(n) Sign agreements and/or contracts on behalf of the Commission, including those for
expert and consultant services and other reports of accountabilities emanating from
the Commission; and

(0) Perform such other functions that the Commission may direct to carry out the
Provisions of this Act or which are necessary or incidental to his/her office.

SECTION9. Advisory Panel. The Commission shall have an advisory panel composed

of the following:

(@) Department of Environment and Natural Resources (DENR) Secretary or the duly
authorized representative with a minimum rank of an assistant secretary:

(b) Department of Energy (DOE) Secretary or the duly authorized representative with a
minimum rank of an assistant secretary;

(c) Department of Agriculture (DA) Secretary or the duly authorized representative with
a minimum rank of an assistant secretary;

(d) Department ‘of Science and Technology (DOST) Secretary or the duly authorized
Tepresentative with a minimum rank of an assistant secretary;

(c) Department of Finance (DOF) Secretary or the duly authorized representative with a
minimum rank of an assistant secretary;

(£) Department of Tourism (DOT) Secretary or the duly authorized representative with a
minimum rank of an assistant secretary;

(g) Department of Transportation and Communication (DOTC) Secretary or the duly
authorized representative with a minimum rank of an assistant secretary;

(h) Department of Foreign Affairs (DFA) Secretary or the duly authorized representative
with a minimum rank of an assistant secretary.

(i) Department of National Defense (DND) Secretary or the duly authorized
Tepresentative with a minimum rank of an assistant secretary;

(@) National Economic Development Authority Director-General or the duly authorized
representative with a minimum rank of Director.

The members of the Advisory Panel shall be appointed by the President from a list of

nominees submitted by their respective offices. They shall serve for a term of six (6) years

without reappointment. Appointment to any vacancy shall be only for the unexpired term of the
predecessor.

SECTION 10. Panel of Technical Experts. The Commission shall constitute a national

Panel of technical experts consisting of practitioners in disciplines that are related to oil and gas

extraction and processing, hydrography, marine ecology, surveying, hydrology, including, but
not limited to, oceanography,

The Panel shall perform research and development and provide technical advice to the

Commission in maritime science, technologies, and best practices for the extraction and
development of oil and gas fields.

The Commission shall set the qualifications and compensation for the technical experts,

It shall provide resources for the operations and activities of the Panel.


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SECTION 11. Secretariat. A Secretariat is hereby established to serve and assist the
Board in the effective implementation of this Act. The Secretariat shall be headed by an
Executive Director, appointed by the Chairperson of the Commission upon the recommendation
or concurrence of the other two Commissioners. Provided, That no person shall be appointed as
Executive Director unless he/she is a holder of a degree in any of the following fields:
economics, business, public administration, law, management or their equivalent and have at
least five (5) years relevant experience in said fields: Provided, further, That he/she shall be a
resident of the Philippines five (5) years prior to his/her appointment and has the requisite
eligibilities for third level career service position pursuant to the career executive rank system.

SECTION 12. Organizational Structure. The Commissioner shall determine the
organizational structure, staffing pattern and pay scales of the Commission subject to existing
civil service and compensation laws. The Commissioner may reorganize the Commission and
may create or abolish divisions, units or branches therein as the exigencies of the affairs of the
Commission may require.

SECTION 13. Merit System. All officials and employees of the Commission shall be
selected and appointed on the basis of merit and fitness in accordance with civil service law,
rules and regulations. The recruitment, transfer, promotion, and dismissal of all its personnel
including temporary workers shall be governed by a merit system that will be established by the
Board in compliance with existing laws, rules and regulations

SECTION 14. Appropriations. Such amounts necessary to finance the initial
implementation of this Act shall be sourced from the unprogrammed funds in the current General
Appropriations Act (GAA). Thereafter, such amounts necessary for its continued implementation
shall be included in the annual GAA: Provided, That such amounts necessary for energy
resource development and exploitation programs and projects in Benham Rise shall be sourced
from the proceeds of the Malampaya Fund, subject to existing laws, rules and regulations.

SECTION 15. Implementing Rules and Regulations. The Commissioner, in close
coordination and consultation with the Advisory Panel and the National Panel of Technical
Experts shall, within sixty (60) days from the date of effectivity of this Act, promulgate and
publish the rules and regulations for the effective and faithful implementation of this Act:
Provided, That the failure of the promulgation of the said rules and regulations shall not prevent
the implementation of this Act upon its effectivity.

SECTION 16. :Separabitity Clause. If any portion or provision of this Act is
subsequently declared invalid or unconstitutional, other provisions hereof which are not affected
thereby shall remain in full force and effect.

SECTION 17. Repealing Clause. All other laws, acts, presidential decrees, executive
orders, presidential proclamations, issuances, rules and regulations or parts thereof which are

contrary to or inconsistent with any of the provisions of this Act are hereby repealed, amended or
modified accordingly.

SECTION 18. Effectivity. This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in at least two (2) newspapers of general circulation,

Approved.