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Republic of the Philippines VA org ad a
HOUSE OF REPRESENTATIVES ‘Gs soe
Quezon City Y
EIGHTEENTH CONGRESS

Second Regular Session

House Bill No,__ 7072

Introduced by
APEC Party-List Representative Sergio C. Dagooe
Philreca Party-List Representative Presley C. De Jesus,
Ako Padayon Pilipino Party-List Representative Adriano A. Ebcas,
RECOBODA Party-List Representative Godofredo N. Guya

EXPLANATORY NOTE

‘The COVID-19 Pandemic has boiled down to the greatest economic crisis
of the 2ist century. Economic experts have predicted that a worldwide
depression is imminent due to the pandemic forcing the world into
economic hibernation’. These, among other reasons, have forced the
Philippine government to recalibrate its strategy in hopes to save some
remnants of the decade's worth of economic gains against the imminent
economic depression, one of which is the Balik Probinsya Program.

The issuance of Executive Order No. 114, otherwise known as “Balik
Probinsya Program”, has marked another milestone of the government
in redistributing opportunities in all regions. The main goal of this order
is to decongest Metro Manila and hinder the rapid spread of COVID-19.
In addition to the statistics provided by the PSA, E.O. 114 also grounds
its issuance on the fact that NCR’s accounted GDP for 2018 is 36% of the
whole country with 12% of the population taking residence in the region.
Despite having the good intention of providing more opportunities in
other regions, the crux of the matter is to acknowledge that there are
currently no incentives for the workforce population to return to their
province if opportunities are limited.

" ublicus Asia: Freeze And Reboot ~ A Strategy For Economie Rebirth Amid Covid-19. April 19, 2020 at
http://www. publicusasia.com/freeze-and-reboot-a-strategy-for-economic-rebirth-amid-covid-19/.



In a study conducted by the Philippine Statistics Authority (PSA) in
2012, there are currently 219,184 business establishments in the
country. Out of all these establishments, around 30% or 74,102 are
situated in Metro Manila alone. It is noteworthy that the runners-up are
CALABARZON with 29,441 establishments or 13.4%. followed by
Central Luzon with 20,177 establishments or 9.2 %.

In 2017, the Philippine government launched the Build! Build! Build!
Program with the vision to increase the economic activity of the country
through infrastructure. According to the 2017-2022 Philippine
Infrastructure Plan, 64 percent of these projects will go on
transportation?.

Throughout the world, rural electrification is regarded as the
cornerstone in poverty alleviation and modernization. By 2008, the
World Bank claimed that the economic case for investment in rural
electrification is proven’. A survey of the several literature also suggests
that rural electrification is necessary to improve economic productivity
and improve the quality of rural lifes

Regional and countryside development as a means to decongest the
metro will no doubt require energy to power the industries that would
be born from the issuance of the Balik Probinsya program. To direct
growth in key centers throughout the country and generate more
opportunities for production and employment in lagging regions,
investments on infrastructures must be prioritized—especially in the
energy sector. Sustainable development in the countryside cannot be
achieved without rural electrification.

Hence, the implementation of the Balik Probinsya Program will result to
an increase in the distribution of economic activities in the countryside
which is directly proportional to the energy demand needed to support
it. In anticipation of the economic activity growth in rural areas, the
energy infrastructures, particularly in production and distribution of
electricity, must be prioritized and funded by the Balik Probinsya
program.

The National Electrification Administration's Sitio Electrification
Program (SEP) must be strengthened and prioritized in order to support
the operation and development of industries in rural areas. It is
imperative to have the NEA to oversee the faster rollout of SEP and
provide adequate support to Electric Cooperatives which will carry the
responsibility of fast-tracking electrification in unserved areas. Further,
as the forerunner of the country’s electrification program since its
creation as an institution in 1969, it is high time we give NEA the direct

? Philippine Infrastructure Plan 2017-2022. National Economic and Development Authority. Retrieved May 19,
}ov.phwp-contentluploads/2018/1 O/PIP-2017-2022-19.pdf.

3 World Bank, 2008. The welfare impact of rural electrification: a reassessment of the costs and benefits. World Bank. An

IEG impact evaluation, World Bank, Washington DC (2008)

Van Gevelt, Teny. 2014. Rural electrification and development in South Korea. Energy for Sustainable Development.

Volume 23, December 2014, Pages 179-187



authority and jurisdiction over the Rural Electrification Program of the
country.

In view of the foregoing, the approval of this bill is earnestly sought.

SERGIO/C. DAGOOC
APEC Party-List Representative

SLEY C. DE JESUS
PHILRECA Party-List Representative

LNA) p12 a

“AS EBCAS
Ako Padayon Pilipino Party-List Representative



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 1072

Introduced by
APEC Party-List Representative Sergio C. Dagooe
Philreca Party-List Representative Presley C. De Jesus,
Ako Padayon Pilipino Party-List Representative Adriano A. Ebeas,
RECOBODA Party-List Representative Godofredo N. Guya

AN ACT
INSTITUTIONALIZING THE BALIK PROBINSYA, BAGONG PAG-ASA
PROGRAM AS A PILLAR OF BALANCED REGIONAL DEVELOPMENT

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

Section 1. Short Title. This Act shall be known as the “Balik Probinsya Act of 2020”.

Section 2. Declaration of Policy. The State shall ensure balanced regional
development and equitable distribution of wealth, resources and opportunities through
policies and programs that boost countryside development and inclusive growth,
provide adequate social services, and promote full employment, industrialization and
an improved quality of life in rural areas. Towards this end, the "Balik Probinsya,
Bagong Pag-asa Act" shall be institutionalized.

Section 3. Creation of the Balik Probinsya, Bagong Pag-asa Council. To
ensure whole-of-government action on the implementation of the Balik Probinsya Act,
the Balik Probinsya, Bagong Pag-asa Council ("Council") is hereby created under the
Office of the President, to be composed of the following:

Chairperson: Executive Secretary;

Vice Chairperson: Secretary for Socio-Economic Planning and Director General,
National Economic and Development Authority

Members: Secretary, Department of the Interior and Local Government; Secr
(DILG),
Secretary, Department of Social Welfare and Development


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(DSWD);

Secretary, Department of Agriculture (DA);

Secretary, Department of Agrarian Reform;

Secretary, Department of Trade and Industry (DTI);

Secretary, Department of Labor and Employment (DOLE);

Secretary, Department of Health (DOH);

Secretary, Department of Information and Communications

Technology (DICT);

Secretary, Department of Finance (DOF);

Secretary, Department of Budget and Management (DBM);

Secretary, Department of Public Works and Highways (DPWH)

Secretary, Department of Transportation (DOTY);

Secretary, Department of Tourism (DOT);

Secretary, Department of Human Settlements and Urban

Development (DHSUD);

Secretary, Department of Education (DepEd);

Chairperson, Commission on Higher Education (CHED);

Secretary, Department of Environment and Natural Resources

(DENR);

Director-General, Technical Education and Skills Development

Authority (TESDA);

Chairperson, Mindanao Development Authority;

Chairperson, Cooperative Development Authority; and

Administrator, National Electrification Administration
(NEA).

Amember of the Council shall designate a permanent and alternate representative, who
is fully authorized to decide for and on behalf of his or her respective department,
agency, or office and perform the functions as hereafter provided.

The Council shall be assisted by a Secretariat, to be headed by the General Manager of
the National Housing Authority (NHA) as Executive Director, which shall provide
technical and administrative support to the Council. The Secretariat shall be composed
of personnel from the NHA and, as may be necessary, from member agencies of the
Council.

Section 4. Powers and Functions of the Council. The Council shall have the
following powers and functions:

a. Formulate within ninety (90) days from the effectivity hereof, the guidelines
necessary to implement this Act, including the Balik Probinsya Act
Framework as defined herein;

b. Provide overall direction in the implementation of the Balik Probinsya Act,
its programs and activities including guidance and technical assistance to
government agencies and local government units (LGUS) in its
implementation;

c. Approve or modify key areas and components of the Balik Probinsya Act, as
well as ensure the compliance of government agencies involved in its
implementation;

4. In coordination with the Presidential Communications Operations Office,
develop a strategic communications plan to educate the people and advocate
for supportive policies in the local level;


Secwmravawne

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e. Identify legislative, regulatory, and policy changes to promote balanced
regional development and recommend to the Congress the enactment of
such reforms into law;

f. Engage, consult and coordinate with LGUs in the formulation of policies,
and implementation of the components of the Balik Probinsya Act that will
allow for resource-sharing arrangements through, among others, co-
financing mechanisms with development partners;

g. Enlist the support and assistance of other government agencies,
instrumentalities, government-owned or -controlled corporations and state
universities and colleges, as well as consult and provide avenues for the
private sector, relevant stakeholders, advocacy groups and non government
organizations to participate in the attainment of the objectives of this Act;

h. Create sub-groups, technical working groups or committees as may be
deemed necessary to implement the objectives of this Act;

i, Adopt mechanisms, such as but not limited to an online platform, and
establishment of Balik Probinsya desks in all offices of member agencies, to
facilitate accessibility to the public, enhance monitoring of implementation,
and ascertain the compliance of beneficiaries; and

j. Perform other tasks as the President may direct in relation to the objectives
and intent of this Act.

Section 5. The Balik Probinsya, Bagong Pag-asa Act and its Key Areas. The
Balik Probinsya Act is hereby established as the national policy of the government, and
adopted as a continuing strategy to drive inclusive and balanced urban and rural
development, ensure rural prosperity and complement initiatives towards attaining
resilient and sustainable communities.

The Balik Probinsya Act Framework shall be divided into key areas, each having
measured policy objectives:

a. Empowerment of Local Industries - Introduce a sustainable program for public
sector investment and private sector participation that promotes regional
development. Support shall be particularly provided to micro, small and medium
enterprises (MSMEs) to foster the continued growth of the sector, and the
rationalization of a purposeful system of fiscal incentives shall be prioritized to
develop forward and backward linkages and export- and domestic-oriented
enterprises, access to markets and a fully integrated value chain and encourage
the transfer of medium and large businesses to provincial economic hubs.

b. Food ity_and_Agricultural Productivity - Encourage and_ facilitate
innovations and technologies for agricultural production, such as modern rice
farming techniques, seed production and farm mechanization, conducive to long-
term and sustainable rural development. Local agricultural industries shall be
supported and strengthened through infrastructure and financial support, such
as but not limited to loans sourced from the Agricultural Competitiveness
Enhancement Fund, as well as existing incentives given to agriculture
cooperatives.

Measures to take advantage of economies of scale in agricultural production,
promote value chain development, increase farm incomes, and improve the
quality of life of farmers, shall be pursued.


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c. Social Welfare, Health and Employment - Comprehensive assistance packages

shall be designed to encourage the voluntary and immediate movement to their
respective home provinces of workers and overseas Filipino workers, especially
those stranded in the NCR due to the Enhanced Community Quarantine (ECQ)
or General Community Quarantine (GCQ).

Local health facilities shall be upgraded and local health capacity shall be
improved to address the health needs of the community, such as building more
hospitals and clinics, providing more ambulances and enhancing medical
scholarship programs, among others.

Educational institutions and technical and vocational schools shall be built in
strategic rural areas, state universities and colleges shall be linked to industries,
thru, among others, conversion of their idle lands into science or technology
parks. Access to Open Distance Learning shall also be enhanced in rural
communities.

Employment shall be created and restored through various support programs
and assistance packages, including resettlement to provincial township sites and
community interventions or projects based on area/resettlement site.

d. Development of Infrastructure - Infrastructure such as means of transport and
communications, power resources, and irrigation facilities which support the
operation and development of other sectors of the economy shall be developed in
all the different regions of the country. The completion of existing and future
railway projects to facilitate the movement of people, as well as the creation and
improvement of transport terminals and construction of public markets in
communities, shall be prioritized.

Section 6. Categorization of the Balik Probinsya Act Framework
Components. The components of the Balik Probinsya Act Framework to be
formulated by the Council shall be aligned with the key areas mapped in the preceding
Section, and shall be categorized under specific progress points, as follows:

a. Short-term - Pipeline or existing programs, activities or projects (PAPs) with
available funds or appropriations, which can be adapted to support the required
interventions under the Balik Probinsya Act and which can be readily implemented
during the Enhanced and General Community Quarantine. Due priority shall be
given to individuals and enterprises qualified under the implementing guidelines
mentioned in Section 5(a) hereof.

For the efficient voluntary movement of individuals and enterprises from the NCR
to identified rural areas, initial assessment may be provided for assistance, such as
but not limited to the following:

@ Transportation and relocation coursed through the DOTr and DILG
which are tasked to coordinate with the LGUs concerned. For this
purpose, the Department of National Defense, the Armed Forces of
the Philippines, and all its main service branches, as well as the
Philippine Coast Guard, may be called to render the necessary
logistical support;



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(i) Transitory support from existing DSWD and NHA programs;

(iii) Livelihood and employment packages that are implemented or may
be developed by the DOLE and DTT;

(iv) _Agri-based support services offered by the DA;

(v) Educational programs, including internet-based learning, through
the DepEd, CHED and TESDA;

(vi) Fiscal incentives and transition assistance for MSMEs, including
but not limited to tax incentives and fast-tracked processing of
licenses and permits, as may be applicable; and

(vii) Other forms of aid as may be necessary or formulated by relevant
government agencies.

b. Medium-term - Existing PAPs with available funds or appropriations to support
required interventions or new PAPs for funding, which can be implemented when
the ECQ or travel restriction is lifted. It may consist of, but is not limited to the
following:

() Identification of existing special economic zones, as well as
development of MSME-oriented industries;

(i) Livelihood and employment opportunities suitable to rural

development;

(iii) Strengthening and prioritizing the National Spatial Strategy

integrated in the Philippine Development Plan and spearheaded by

the NEDA;

(iv) Construction of power distribution lines to aid business
center hotspots and meet the increase in_residential
power consumption, as spearheaded by the NEA.

() Integration of institutional assistance, such as progression of
formal education, improved healthcare services and medical
facilities, maintenance and promotion of peace, order, and
security; and

(vi) Establishment of new special economic zones in Visayas and
Mindanao including the Bangsamoro Autonomous Region;

To implement this section, Congress should assure funding of all agencies involved
to implement the approved plans and programs adopted by the Council.

c. Long-term - PAPs that require longer time horizons to implement but whose initial
steps must already be taken by national government agencies, such as but not
limited to the proposed decentralization of powers and seat of governance, priority
legislation on rationalized and results-based tax incentives for agricultural or
tourism industries and the National Land Use Act, and the creation of new urban
centers outside of the NCR and existing major urban centers.

Section 7. Funding. The amount necessary for the implementation of this Act shall be
charged against existing appropriations of the agencies who are members of the Council,
and from sources to be identified by the DBM, subject to existing budgeting, accounting
and auditing laws, rules and regulations. To the extent permitted by law, agency heads
are hereby authorized to realign items in their respective appropriations to fund PAPs
approved as part of the Balik Probinsya Act. Funding requirements for the succeeding
years shall be included in the respective budgets of government agencies implementing
the Balik Probinsya Act.


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Section 8. Reporting. The Council shall submit to the President and Congress, a bi-
annual report on the implementation of this Act, including its accomplishments in
terms of short-, medium- and long-term goals and budget utilization.

Section 9. Separability. If any provision of this Act is declared invalid or
unconstitutional, the other provisions not affected thereby shall remain valid and
subsisting.

Section 10. Repeal. All issuances, rules and regulations contrary to or inconsistent
with this Act are hereby repealed, modified, or amended accordingly.

Section 11. Effectivity Clause. - This Act shall take effect fifteen (15) days
following its complete publication in the Official Gazette or a newspaper of general
circulation.

Adopted.