Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRES:
First Regular Session

H. B. No. 1659

REGISTRATION UNIT
BILLS AN

ID INDEX SERVICE

Introduced by HONORABLE BELLAFLOR J. ANGARA-CASTILLO.

EXPLANATORY NOTE

Benham Rise — a 13-million-hectare undersea plateau around 250 kilometers off the
coastline of Aurora province - is touted to have vast natural gas deposits and mineral
resources, such as manganese. Estimated to be a much larger landmass than Luzon,
Benham Rise is also the natural breeding ground and habitat for several marine species -
making it a prime fishing spot.

Discovered in 1933, Benham Rise officially became part of the Philippines in 2012
when the UN Commission on the Limits of the Continental Shelf ruled that under the UN
Convention on the Law of the Sea (UNCLOS), the undersea landmass was contiguous with
the country's continental shelf and hence, fell under its exclusive economic zone. In short, it
is undisputedly part of Philippine territory,

In spite of the lapse of 7 years since its award, Benham Rise remains largely
unexplored, however. While many champion its immense benefits particularly to the
country's energy and food security, the underwater geographic feature needs to be
subjected to further scientific scrutiny. Last May 2016, scientists and marine researchers
have discovered a vast and pristine coral reef ecosystem in Benham Rise.

There is a pressing need to scale up and sustain the scientific study and exploration
of Benham Rise. A proper inventory of the undersea plateau would surely prove crucial in
crafting a roadmap on how the country can develop and ultimately benefit from it, including
as an alternative potential energy source from the dwindling Malampaya natural gas
resource. As such, the extensive participation of several government agencies and other
stakeholders will have to be coordinated meaningfully.

Hence, we propose that a Benham Rise Development Authority (BRDA), attached to
the National Economic Development Authority (NEDA), as the lead agency in conducting
scientific research and exploration in Benham Rise should be created immediately.

Once equipped with such information, the BRDA shall take the lead in formulating
and implementing a development roadmap for Benham Rise, ensuring that it is aligned with
the country's Philippine Development Plan

As such, swift passage of the foregoing measure is earnestly sought.

hadfitin
BEL! R J. ANGARA-CASTILLO

Representative
Lone District, Province of Aurora



SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES —)
FIRST REGULAR SESSION )

1659

H. B. No.

Introduced by HONORABLE BELLAFLOR J. ANGARA-CASTILLO

AN ACT
CREATING THE BEHNHAM RISE DEVELOPMENT AUTHORITY (BRDA), DEFINING ITS
POWERS AND FUNCTIONS, PROVIDING FUNDS THEREFOR AND FOR OTHER
PURPOSES

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

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

SEC. 2. Declaration of Policy. It is hereby declared a 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, marine resources 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.

SEC. 3. Creation of the Benham Rise Development Authority. There is hereby created a
body corporate to be known as the Benham Rise Development Authority, hereinafter
referred to as the Authority, which shall promote, coordinate and facilitate the active and
extensive participation of all sectors to effect the exploration, study and development of the
Benham Rise. The Authority shall also be the lead agency in conducting scientific research
and exploration and shall secure the rights of the State over the area,

The Authority shall be organized within one hundred eighty (180) days after approval of this
Act. It shall have a term of fifty (50) years from its organization and may be renewed for
another fifty (50) years, unless otherwise provided by law. It shall be an attached agency to
the National Economic Development Authority (NEDA). It shall establish its principal office
in the Aurora Pacific Economic and Freeport Zone and may put up such branches as may
be necessary to achieve the objectives of this Act.

SEC. 4. Coverage. The Authority 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.

SEC. 5. Powers and Functions of the Benham Rise Development Authority. |n the
exercise of its mandate, the Authority 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

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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;

(i) 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;

(l) Review and recommend for approval by the National Economic and Development
Authority (NEDA) Board 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 purposes to this Act; and,

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

The Authority, through the Administrator, shall submit to the President and both Houses of
Congress annual reports on its accomplishments and activities.

SEC. 6. Board of Directors. The power of the Authority shall be vested in and exercised by
a Board of Directors, hereinafter referred to as the Board, which shall manage and
supervise the overall directions and thrusts. It shall be composed of the following:

(a) The NEDA Director-General, which shalll act as the Chairman of the Board;
(b) The Administrator of the Benham Rise Development Authority, which shall act as the
Vice-Chairman of the Board; and
(c) Nine (9) other members composed of the following:
i, The Department of Environment and Natural Resources (DENR) Secretary or the
duly authorized representative;
ii, The Department of Energy (DOE) Secretary or the duly authorized
representative;
il, The Department of Agriculture (DA) Secretary or the duly authorized
representative;

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iv, The Department of Science and Technology (DOST) Secretary or the duly
authorized representative;

v. Department of Finance (DOF) Secretary or the duly authorized representative;

vi. Department of Tourism (DOT) Secretary or the duly authorized representative;

vii, Three (3) representatives from the private sector to be appointed by the
President, upon the recommendation of the of the other members of the Board,
comprising of one (1) representative each from the:

(1) Business Sector;
(2) Academic Sector; and
(3) Non-governmental Organization (NGO) Sector.

The term of the three (3) representatives from the private sector shall be six (6) years:
Provided, That at the initial appointment of such members, the second member to be
appointed shall only serve a term of four (4) years and the third member to be appointed
shall only serve a term of two (2) years: Provided, further, That they shall continue to hold
office until their successors shall have been appointed. All vacancies, prior to the expiration
of the term, shall be filled for the unexpired term only.

Members of the Board shall receive a per diem at a rate to be determined by the
Governance Commission for Government-Owned or -Controlled Corporations (GCG), in
accordance with existing rules and regulations: Provided, however, That the per diem
collected per month does not exceed the equivalent per diem of four (4) meetings
Provided, further, That the amount of per diem for every Board meeting may be increased
by the President or GCG but such amount shall not be increased within two (2) years from
its last increase.

The Board shall have the following functions:

(a) Provide direction and guidance for the Authority's work and thrusts for the Benham
Rise;

(b) Ensure that the goals and policies of the Authority are consistent with the overall
national development goals and objectives;

(c) Ensure that the programs of the Authority are consistent with regional and local
development plans, programs and projects and vice versa for purposes of
harmonization;

(d) Explore sources for financing of priority Benham Rise plans, programs, projects and
activities;

(e) Create committees/task forces as may be deemed necessary in the accomplishment
of duties and functions;

(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

(g) Perform such functions as may be necessary to carry out the purposes of this Act.

SEC. 7. Administrator. The Authority shall be headed by an Administrator which shall be
appointed by the President of the Philippines, upon recommendation of the NEDA Director-
General. The Administrator shall serve a term of six (6) years from the date of his/her
appointment unless sooner separated from service due to death, voluntary resignation or
removal for cause: Provided, That no person shall be appointed as Administrator 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 (5) years before the appointment.

SEC. 8. Powers and Duties of the Administrator. The Administrator shall have the
following powers and duties:

(a) To direct and manage the affairs of the Authority in accordance with the policies of
the Board;

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

(c) 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 Authority;

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

(e) Advocate the Authority's work 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;

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

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

(i) Accept, on behalf of the Authority, 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
Authority;

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

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

(I) Appoint all employees of the Authority, 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 Authority 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 Authority, including those for
expert and consultant services and other reports of accountabilities emanating from
the Authority; and

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

SEC. 9, 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 President of the Philippines upon recommendation by the
Administrator: Provided, That no person shall be appointed as Executive Director unless
helshe 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 10. Organizational Structure. The Administrator shall determine the
organizational structure, staffing pattern and pay scales of the Authority subject to existing
civil service and compensation laws. The Administrator 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.

SEC. 11. Merit System. All officials and employees of the Authority 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
Authority in compliance with existing laws, rules and regulations.

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SEC. 12. 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.

SEC. 13. Implementing Rules and Regulations. The Administrator, in close coordination
with the DENR, DOE, DA, DOST, DOF, DOT, and NEDA and in consultation with other
stakeholders 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.

SEC. 14. Separability 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.

SEC. 15. 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.

SEC. 16. 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,

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