FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
8 JUN 11 P3:5i 
Introduced by Senator Richard J. Gordon 
EXPLANATORY NOTE 
The country is besieged by a multitude of problems but none as tremendous and 
far-reaching as the critical condition of our educational system today: the staggering 
shortage in classrooms, school facilities and educational materials, the shortage of 
teachers in public schools, and the dismal performance of our students. For the year 2007, 
there were 267 barangays without a public elementary school while four municipalities 
lacked public high schools. Yet in reality, the shortage is much bigger considering that 
public elementary and high schools now operate in double shifts, compromising standards 
of public school education. 
Our schoolchildren are also undernourished - according to World Bank data 
collected from 2000-2006, 28% of under-fives are suffering from: underweight, moderate & 
severe, compared to 15% for the whole Asia-Pacific region. In the midst of a food crisis 
and skyrocketing prices of basic commodities, schoolchildren from the poorest families 
face the threat of hunger or malnutrition even as the government has resorted to allocating 
food subsidies. 
These are roadblocks that keep us from moving forward. Given the scarce 
resources of the national government, there is a need to be innovative in our approach in 
harnessing investments for education and health modernization programs. 
Only recently, the National Telecommunications Commission explored the 
possibility of lowering access charges between telecommunication companies for text 
messaging or short messaging service (SMS). This bill proposes that instead of merely 
lowering the cost of communication through lowered access charges, current rates should 
be maintained but with the government collecting half of the revenues, to be used to fund 
critical programs for acceleration of education and health standards in the country, At the 
same time, the economy is pump-primed with much needed investments. 
For these purposes, this bill seeks to create the Health and Education Acceleration 
Program (HEAP) Corporation, a government corporation to spearhead the rehabilitation 
and acceleration of education and health infrastructure in the country. Under the HEAP, 
every commercial mobile service provider shall be required to remit to the HEAP Fund half 
or 50% of its net revenue earnings arising from local text messages. These funds shall be 
earmarked for the construction of classrooms, computer and science laboratories, clean 
cafeterias and school facilities for 
Filipino schoolchildren's wholistic development; 
acquisition of books, desks, chairs and instruction materials; hiring of teachers, regular 
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conduct of teacher-training programs, and augmentation of teachers' pay; provision of 
scholarship grants to deserving students; establishment of school clinics with dental 
equipment and a regular staff nurse; and school feeding and vaccination programs. 
Using 2007 estimates, there are 53,958,000 mobile phone subscribers in the 
country. Assuming that every subscriber sends out an average of 10 text messages daily 
through the country's telecommunication networks at the cost of PI peso per text 
message, the Fund's 50% share in revenues a day would amount to P 269,790,000. This 
would translate to a disposable fund of P 98,473,350,000 in one year. 
To the extent that the Corporation administers the funds for the acquisition of 
materials needed by the Department of Education, it may be considered as a procuring 
agency for the Department, unburdening the latter of a lot its responsibilities to build 
infrastructure and allowing it to focus on the teaching profession itself. Armed with the 
capacity to plug the widening gaps in education and health infrastructure in the 
Philippines, and accelerate and modernize the country's educational landscape, the 
creation of the Authority shall be critical in strengthening our educational competitiveness. 
For these reasons, the passage of this bill is earnestly sought- 
RDON 
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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Firsf Regular Session 
1 
Introduced by Senator Richard J. Gordon 
AN ACT 
CREATING THE HEALTH AND EDUCATION ACCELERATION PROGRAM 
CORPORATION, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES 
Be if enacted by the Senate and the House of Representatives in Congress assembled: 
SECTION 1. Title. - This Act shall be known as the "'Health and Education 
Acceleration Program (HEAP) Act of 2008." 
Sec. 2. Declaration of Policies. - It is hereby declared the policy of the State to 
protect the right of all citizens to quality and accessible education especially at the 
elementary and high school levels, and to promote the modernization, acceleration and 
efficient delivery of basic education, while ensuring the right of teachers to professional 
advancement and adequate remuneration for their talents. It is likewise declared the policy 
of the State to achieve improvements in the delivery of basic health services to the 
studentry, recognizing the integral value of health for any nation, the coordination of 
resources from all sectors, and the right to access quality care. To this end, the State shall 
encourage the participation of the private sector and the whole citizenry in the pursuit of a 
comprehensive and long-term rehabilitation and modernization program in the education 
sector. 
Sec. 3. Health and Education Acceleration Program Corporation. - There is 
hereby created a body corporate to be known as the Health and Education Acceleration 
Program Corporation (hereinafter referred to as the "Corporation") to carry out the 
purposes of this Act, which shall be vested with the powers of a corporation. The 
Corporation shall be an independent government instrumentality attached to the Office of 
the President for administrative purposes only. It shall establish its principal office in 
Metropolitan Manila. 
Sec. 4. Powers and Functions of the HEAP Corporation. - The Corporation shall 
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have the foollowing 'powers and functions: 
(a) To administer the Health and Education Acceleration Program; 
(b) To hold and administer the HEAP Fund created under Section 5, according to 
the purposes specified under Section 6, of this Act; 
(c) To implement all policies and programs of the Department of Education and 
Department of Health necessary for the accomplishment of the objectives of this Act; 
(d) To adopt, prepare and implement a comprehensive and detailed six-year 
development plan during its first fiscal year of operation, containing an assessment of the 
existing needs of public elementary and high schools and embodying a list of projects, 
including but not limited to those provided in the Medium-Term Philippine Development 
Plan (MTPDP), for the rehabilitation and enhancement of the national educational and 
school health system; Provided, That on its third year and every three years thereafter, the 
Board of Directors of the Corporation created under Section 8 of this Act shall review the 
existing development plan taking into consideration the completion, status and impact of 
projects. 
(e) To apply for, receive and accept grants and donations and other conveyances 
by gratuitous title, including funds, materials, equipment and services needed to 
accomplish its objectives under this Act; 
(f) To do all such other things and to transact all such business directly or indirectly 
necessary, incidental or conducive to the attainment of its purpose; 
(9) To exercise the power of eminent domain; and 
(h) Generally, to exercise all powers of a corporation under the Corporation Law. 
Sec. 5. Health and Education Acceleration Program Fund. - For purposes of 
this Act, the Health and Education Acceleration Program Fund (hereinafter referred to as 
the "Fund") is hereby established, to consist of fifty percent (50%) of the revenue assessed 
and collected on all local mobile phone text messages sent from their networks, to be 
remitted by domestic mobile phone service providers to the Fund monthly during the 
lifetime of the Corporation. All proceeds accruing to the Fund shall be earmarked solely 
and used exclusively to finance the priority programs stated under Section 6 of this Act. 
Sec. 6. Priority Uses ob Fund, - The Fund shall be used to finance programs 
aimed at rehabilitating and modernizing educational and health infrastructure, raising the 
quality of instruction, and strengthening delivery of basic health services in public 
elementary and high schools nationwide. The programs, including but not limited to the 
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following, shall be implemented in phases to ensure continuity and sustainability, 
according to the following schedule of priority: 
(a) 
Construction, repair or upgrading of school buildings, classrooms and 
facilities, including the establishment or upgrading of libraries to be 
provided with at least two computers with Internet access and science 
laboratories with modern equipment to improve competencies of 
students in science and technology; 
Hiring, training and remuneration of teachers; 
Establishment or upgrading of school clinics, to be provided with at least 
one registered nurse; 
Computerization, with the establishment of at least one computer 
laboratory for each public high school with a minimum of 10 computers 
each with Internet access; 
Feeding program for public elementary schools to consist of at least two 
meals a day; and 
Regular vaccination and dental checkup programs; 
(b) 
(4 
(4 
(e) 
(9 
No money shall be released from the Fund without any identified program andlor 
project, nor used to pay obligations incurred before the approval of this Act. 
Sec. 7. Capitalization. -The Corporation shall have an authorized capitalization of 
Twenty Million Pesos (P20,000,000) as its initial organization and/or operational expenses; 
Provided, That such amount as may be necessary for the Corporation’s administration and 
operation shall be set aside from.the Fund; Provided further, That such amount shall not 
exceed one percent (1%) of the Fund at any time. 
Sec. 8. Board of Directors. - Within 30 days from the approval of this Act, the 
President of the Philippines shall constitute a Board of Directors to be composed of a 
Chairperson and six members, as follows: 
(a) 
(b) 
In an ex-officio capacity, the Secretary of the Department of Education; 
Two representatives each from premier public and private education 
institutions; 
Two representatives from the telecommunications sector; and 
One representative from the national organization of Parent-Teacher 
Associations. 
(c) 
(d) 
Provided, That the Chairperson and members of the Board of Directors shall serve 
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at the appointing pleasure of the President and be persons of proven integrity, 
independence, and administrative proficiency, and fully committed to the objectives 
of this Act. 
The Board of Directors shall be the policy-making body of the Corporation and shall 
perform the following functions: 
(a) Carry out the purposes of the Corporation as embodied in this Act; 
(b) Determine the organizational structure of the Corporation, define the duties and 
responsibilities of all officials and employees and adopt a compensation 
scheme; Provided, That the Corporation shall engage the services of urban and 
regional planners, engineers and management experts ; 
(c) Adopt an annual budget for and authorize such expenditures by the Corporation 
in the interest of its effective administration and operation, in accordance with 
applicable rules and regulations; and 
(d) Six months from its constitution and every six months thereafter, submit a report 
of the operation of the Corporation to the President of the Philippines, President 
of the Senate and Speaker of the House of Representatives. 
All procedural matters in the conduct of Board meetings shall be prescribed in its 
internal rules. Members of the Board shall receive a per diem for every meeting actually 
attended subject to the pertinent budgetary laws, rules and regulations on compensation, 
honoraria and allowances; Provided, That the per diem collected per month does not 
exceed the equivalent of four meetings. 
Sec. 9. Administrator. - The President shall appoint a professional manager as 
Administrator of the Corporation with compensation to be determined by the Board subject 
to the approval of the Secretary of Budget and Management. The Administrator shall have 
the following duties and responsibilities: 
(a) To act as Chair of the Board and Chief Executive Officer of the Corporation; 
(b) To execute, administer and implement the policies and measures approved by 
the Board; 
(c) To direct and supervise the operations and administration of the Corporation; 
(d) 
To represent the Corporation in all dealings with offices, agencies and 
instrumentalities of the government and with all persons and entities, public or 
private, domestic or foreign; 
(e) To direct and supervise the preparation of the agenda for the meeting of the 
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Board, and to submit for the consideration of the Board such policies and measures 
as necessary to carry out the purpose and objectives of this Act; and 
(9 To exercise such other powers and functions provided in the by-laws and as 
may be vested upon the office by the Board. 
Sec. IO. Education Modernization Monitoring Department. - Among the staff 
departments that will be established by the Corporation shall be the Education 
Modernization Monitoring Department which shall regularly perform the following duties 
and functions, in coordination with the appropriate provincial State Universities and 
Colleges: 
(a) conduct of on-site inspections on the HEAP projects to ensure the projects' 
adequacy and responsiveness to existing sector needs; 
(b) review and evaluation of the impact of the HEAP on the access to and quality of 
facilities for public elementary and high schools; and 
An annual report on the results of these inspections, review and evaluation shall be 
Sec. 11. Supervision. - The Corporation shall be under the direct control and 
supervision of the Office of the President for purposes of policy direction and coordination. 
Sec. 12. Audit. - The Commission on Audit shall appoint a representative who 
shall be the full time auditor of the Corporation, and such personnel as may be necessary 
to assist said representative in the performance of duty. 
submitted to the Board for its policy formulation. 
Sec. 13. Report fo Congress. -The Corporation shall submit to the Department of 
Education and to Congress a detailed quarterly report on the funds allocated, indicating 
the amount released, obligated and disbursed under this Act, including but not limited to 
funds for the construction or repair and reconstruction of infrastructure projects, the list of 
contractors and projects being financed, and the accomplishments for the expended 
appropriation, including the percentage of completion. 
The Corporation shall also submit as part of the quarterly report a list of all donors 
and the nature of their donations. The Corporation shall cause to be disseminated in the 
community the list of beneficiaries and contractors mentioned above. 
Sec. 14. Congressiona/ Oversight Committee. - There is hereby created a 
Congressional Oversight Committee, which shall be composed of three representatives 
each from the Senate and the House of Representatives, to be appointed by the Senate 
President and the Speaker of the House of Representatives, to monitor the 


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implementation of this Act. The Committee shall conduct an annual review of this Act in aid 
of legislation. 
Sec. 15. injunction and Restraining Order. - Projects under the HEAP are urgent 
and necessary. Their implementation shall not be restrained or enjoined except by an 
order issued by the Supreme Court of the Philippines. 
Sec. 16. implementing Rules and Regulation. - Within 90 days from the 
effectivity of this Act, the Board of Directors shall transmit to the President for approval 
such rules and regulations to implement and carry out the intent, purposes and provisions 
of this Act. 
Sec. 17. Separability Clause. - If any provision of this Act or any part hereof be 
declared unconstitutional or invalid the remainder of this Act or any provision not affected 
thereby shall remain in force and effect. 
Sec. 18. Repealing Clause. - All laws, orders, proclamations, rules and 
regulations, or part thereof, which are inconsistent with any provision of this Act are hereby 
repealed or modified accordingly. 
Sec. 19. Effectivity - This Act shall take effect 15 days following its publication in 
the Official Gazette or in at least two newspapers of general circulation. 
Approved, 
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