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Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

NINETEENTH CONGRESS

First Regular Session

2052

HOUSE BILL NO.

Introduced by REPRESENTATIVE FRANCISCO PAOLO P. ORTEGA V.

EXPLANATORY NOTE

Farm-To-Market Roads (FMRs) are the foundation of modern agriculture. FMR
projects serve as catalyst in improving the country’s rural economy by alleviating
poverty incidence in recipient communities. FMRs are critical to greater food
production and reduction on the prices of agricultural commodities. FMRs improve the
mobility of people, goods, and services. FMRs, can increase local trade and
productivity, reduce transportation costs of farm input and output, and minimize post-
harvest losses

Since 2001 up to the present, the Department of Agriculture (DA) has been
implementing the Farm-to-Market Road Development Program (FMRDP). The General
Appropriations Act (GAA) have already invested P146.28 billion with 49,042
kilometers of FMRs implemented and constructed, Based on the estimates of the Bureau
of Agricultural and Fisheries Engineering (BAFE), about 9,417,485.83 hectares of
agricultural lands in the country. (LMB data, 2020), Thus, 133.680 km of FMRs for
concreting and upgrading (barangay roads and below- sitio roads, farm access roads)
are still needed. With 980 kilometers of FMRs implemented for P9.5 billion
appropriates, it will take more than 100 years to complete the implementation

Based on the World Bank review on the Mandanas ruling and potential
implications for the FMR development program, it pointed out that one particular
problem for roads may be under-funding of operations, repair, and maintenance, Many

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countries may under-fund these activities, which is unfortunate, since spending on
operations and maintenance has very high returns. Poor roads greatly increase costs for
vehicle operators. And according to World Bank estimates, road repair costs are 6 times
higher after 3 years of neglect and 18 times higher after 5 years

It further mentioned that while the budget for the national road program as a
whole has been increasing significantly in recent years, the share of the road program
budget devoted to FMRs has been declining, falling from 7.6% of the total in 2015 to
2.6% in 2021

In view of the above there is a need to strengthen the FMRDP and to provide
adequate funding support for its implementation

Foregoing, | hereby request for the approval of this bill.

Y

HON. FRANCISCO PAOLO P. ORTEGA V
rst District, La Union


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

2052

HOUSE BILL NO.

Introduced by REPRESENTATIVE FRANCISCO PAOLO P. ORTEGA V

ANACT
STRENGTHENING THE FARM-TO-MARKET ROAD DEVELOPMENT
RPOGRAM AND PROVIDING FOR A SUSTAINED REGULAR FUNDING
SUPPORT TO ACCELERATE ITS IMPLEMENTATION

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 Farm-to-Market
Road Development and Acceleration Act of 2022

SEC. 2. Declaration of Policy. — The State recognizes the vital importance and
contribution of farm-to-market roads in providing connectivity for bringing inputs to
farmers and taking their production to distant markets, facilitate the transport of produce
and good efficient, cos-effective, and convenient, thus help achieve national food
security and improve the lives of farmers and fisherfolks

In view of this. the State shall strengthen the Farm-to-Market Roads
Development Program and provide adequate funding support to accelerate its
implementation.

SEC. 3. Definition of Terms

a. Farm-to-Market Roads (MR) ~ shall refer to public infrastructure projects
within agricultural, livestock, and fishery production, marketing and
processing areas linked to all-weather or higher road class such as municipal.
city, provincial, national primary and secondary roads. These are either
barangay roads, purok or sitio roads and other farm-access roads.


+b. Farm Access Roads ~ shall refer to existing road access within agricultural
production, processing and related infrastructure including private roads,
trails and tire-path, which are not yet classified as municipal, city. provincial,
national primary and secondary roads.

SEC. 4. Strengthening the Furm-to-Market Road Development Program- The
Farm-to-Market Road Development Program (FMRDP) of the Department of
Agriculture is hereby strengthened with the following objectives

(a) Formulate and update the National Farm-to-Market Road
Modernization Network Plan:

(b) Strengthen the identification, validation and prioritization of FMRs to
ensure rational and equitable funding allocation:

(c) Accelerate the construction of climate-smart and standards-compliant
farm-to-market roads in key agricultural and fisheries production
areas,

(d) Strengthen the support services at the national and local levels relative
to the implementation of FMRs;

(e) Institute convergence and coordination among concerned national
government agencies and local government units insofar as to the
planning and implementation of farm-to-market-roads; and

(f) Improve and sustain the maintenance of farm-to-market roads by the
Local Government Units.

SEC. 5. Implementation of Fh MRDP. The DA through its Bureau of
Agricultural and Fisheries Engineering (BAFE) shall oversee and manage the
FMRDP and develop a state-of-the-art system to effectively monitor its
implementation. The DA shall likewise:

a) Serve as the lead implementing ageney and fund administrator of the
FMRDP and hereby authorized under this Act to issue the necessary
and appropriate operational guidelines and policies to fully implement
the Program;

b) In collaboration with DPWH and other concerned entities and
agencies, shall formulate a strategy to ensure the timely
implementation of projects, such as, but not limited to the setting of
technical specifications, clustering and geo-tagging of projects for
cost efficiency in the procurement thereof and effective management
and implementation of projects; and



c) Submit annual reports of its implementation status to the
Congressional Oversight Committee on Agriculture and Fisheries
Modernization

‘Towards this end, the BAFE is hereby strengthened and operate as a line bureau
of DA and establish its regional and field offices to effectively and efficiently
implement this program, as well its mandates on agri-fisheries mechanization and
infrastructures. The BAFE is further given the mandate and authority to implement,
conduct procurement and supervise contractors of the GAA-funded FMR projects as
well as foreign assisted projects following the provisions of Republic Act 9184 and
other applicable laws. adapting the guidelines to be promulgated by the DA, and using
the relevant methodologies and tools of the Philippine Rural Development Project

SEC. 6. /-ormulation and Updating of larm-to-Market Road Modernization
Network Plan, ~The Department of Agriculture through the Bureau of Agricultural and
Fisheries Engineering (BAFE) in coordination and consultation with concerned national
government agencies, local government units, farmer and fisherfolk groups, private
sector, civil society organizations, and other stakeholders shall formulate a 20-year
Farm-to-Market Road Modemization Network Plan (FMRMNP) which shall be
reviewed and updated every year from the effectivity of this Act.

‘The FMRMNP shall list all priority farm-to-market road projects for opening,
repair. rehabilitation and upgrading to higher road pavement class in the Philippines
interfaced with the Local Road Network Plan formulated by the concemed local
government units. This plan shall also contain the validated FMR project proposals by
the DA to be funded annually by the national government based on formulated science-
based tools and prioritization criteria, and operational guidelines to be issued by the
Secretary of Agriculture

The DA shall submit to the Department of Budget and Management (DBM)
within one (1) year from the effectivity of this Act and within the budget preparation
call of every year thereafter, an annual national Farm-to-Market Road Modernization
Network Plan of the Public Investment Program (PIP)

SEC. 7. Incorporation of I:xisting Marm-to-Market Road Projects. All
continuing and existing farm-to-market road projects being funded and implemented by
the national government are hereby incorporated in the FMRMNP under this Act

The continuing appropriations for all FMR projects being funded and
implemented by the national government prior to the effectivity of this Act, except those
funded under the Grassroots Participatory Budgeting (GPB) program or any other
similar program and are included in the Plan shall be considered part of the Program's
appropriation as provided in Section 21


New FMR programs and projects to be funded through official development
assistance after the effectivity of this Act are encouraged to be incorporated in the Plan

SEC. 8 Identification and Prioritization Criteria, The Department shall
coordinate with the LGUs and the resident-farmers and fisherfolks in order to identify
priority locations of farm-to-market roads that take into account the number of farmer
and fisherfolk and their families who shall benefit therefrom and the amount, kind and
importance of agricultural and fisheries products produced in the area.

The prioritization of FMRs shall be based on the following criteria:
a) Agro-industrial potential of the area;
b) Socio-economic contributions of the investments in the area:
c) Absence of public investments in the area: and

d) Presence of agrarian reform beneficiaries and other small farmers and fisherfolk
in the area,

Farm-to-market road investments shall give preference to the kind, type and
design of facilities that are cost-effective and will be useful for the production,
conservation, and distribution of most commodities and should benefit the most
number of agriculture and fisheries producers and processors

SEC. 9. Management Information System — The existing Agricultural and
Biosystems Engineering Management Information System (ABEMIS) shall be
strengthened to monitor the project implementation of FMRs which include the
following:

a) Pre-implementation activity such as survey, detailed engineering design,
program of work, right-of-way acquisition, feasibility study

b) Procurement
¢) Progress construction monitoring

4) Operation and maintenance audit

¢) Completed inventory list.

SEC 10. Design and Construction Standards ~ All FMRs to be implemented

shall conform to the existing, developed and adopted design and construction standards
by the DA and DPWH, PABES and other relevant standards.


SEC. 11 FMR Monioring and [:valuation — All procuring entities implementing
FMR projects shall require the evaluation of the performance of their constructors
following the NEDA-approved CPES Guidelines to ensure conformance to the
specified requirements. The funding/implementing agency’s CPES-Implementing Unit
shall be responsible for the implementation of CPES Implementing Guidelines and the
conduct of CPES methodology for their ongoing FMR projects

The BAFE shall likewise undertake the monitoring and evaluation of FMRs.

SEC. 12. Research and Development for ’MRs ~The DA-BAFE shall formulate
a Research and Development Agenda for Agricultural Infrastructure Program
encompassing among others the following thematic areas

a) Periodic preparation of a National RD&E Agenda for Agricultural
Infrastructure aligned to formulated commodity roadmaps and the national
development plans;

b)Formutation of locally-applicable measurement and monitoring tools for
improving Accessibility, Road Influence Area Estimation among others;

c) Conduct of National Impact Assessment/Evaluation on FMR contribution to
agricultural potential, productivity and competitiveness by 2020,

d) FMR Road Condition Survey nationwide,

e) Analyze the implication of average daily traffic count in the prioritization and
selection of road design for FMR in light of limited and competing needs for
government budget;

f) Identify institutions such as SUCs, BSWM, NIA, among others to conduct
these R&Ds related to FMR and other agricultural infrastructures.

g) FMR Roads Accessibility Index; and

h) Other aspects and issues on FMR and other agricultural infrastructures in
relation to economic development; and

The DA-Bureau of Agricultural Research shall integrate the identified
researchable themes in its plans and programs and shall allocate a portion from its yearly
R&D budget to implement this provision in addition to the available funds provided in
Section 24 of this Act

SEC. 13. Human Resource Development — The DA in collaboration with TESA,
CHED and other concerned government agency shall formulate and implement a
Human Resource Development Program to support the FMRDP. This includes the
conduct of training and other capacity development activities for agricultural a


biosystems engineers, construction workers, barangay LGUs for the maintenance of
FMRs and other FMR workforce.

The DA and the DPWH shall provide the necessary skills and capacity
development to all agencies implementing FMR including the LGUs in the preparation
of engineering designs, plans, specifications, project studies, feasibility studies and
estimates, and the supervision, management and monitoring the implementation of
occupational safety and health standards in the construction site.

SEC. 14, Climate Smart FMMRs — Climate Smart FMRs shall be pursued through
the provision of slope protection structures using coconet or bioengineering design of
FMRs which will ensure compactness and stability of sub-base/base course

SEC. 15. Roles and Responsibilities of the Local Government Units- The Local
Government shalll have the following roles and responsibilities

a) Identification of proposed FMR project sites in coordination and consultation
with farmers organizations and other stakeholders

b) Ensure the settlement of road right-of-way for the FMR projects submitted to
the DA.

c) Through its Agricultural and Biosystems Engineering Units at the provincial,
city and municipal levels, assist the BAFE and RAED of their respective
region on the:

1. Site survey and staking to ensure participatory validation and
concurrence;

2. Monitoring of completed FMRs:

3. Establishment and updating of FMR data base in the ABEMIS:

4. Preparation and updating or provincial, city and municipal FMRNP
which shall form part in the LGUs Local Roads Network Development
Plans (LRNDP) and share their respective shape file (.shp) and KMZ file
(kmz) to BAFE: and

5. Conduct joint inspections with RAED and DPWH District Offices to
ensure the full delivery of the items/works specified in the contract and
assess the status and condition of the road

d) Ensure that the proposed FMR project are included in the Local Development
Investment Plan (LDIP) or Local Agriculture and Fisheries Modernization
Plan (AFMP) or Provincial Commodity Investment Plan (PCIP),

e) Responsible in repair and maintenance of FMRs, as provided under Section
16 of this Act.


SEC. 16. Right of Way and Road Maintenance — All right-of-way issues
including the payment of just compensation to property owners shall be adequately
addressed and settled by the concerned Local Government Unit (LGU) where the road
project is located and the applicable provisions of the amended Road Right of Way Act
and other relevant laws.

The LGU shall be responsible for the maintenance of farm-to-market roads
upon its completion and turn-over. Furthermore, the LGUs are hereby authorized to
allocate not more than 20% from its Development Fund for the maintenance of the
FMRs within their territorial jurisdiction

SEC. 17. Incentive for Road Right Way Lot Donors — Lot donors of Farm-to-
Market Road projects throughout the country including those that are not yet perfectly
segregated from the title or tax declaration of lot owners for earlier FMR projects funded
by the government which has a duly notarized deed of donation, are herby entitled to a
20-year real property tax payment holiday to the specific lot parcel where the FMR right
of way is constructed as a form of incentives. The DA, DILG and Department of
Finance is hereby authorized to issue the corresponding implementing rules and
regulation of this provision.

The pertinent provisions of Republic Act 10023, such other laws and
implementing guidelines issued to govern the issuance of special and free patents in
favor of the Philippine Government, its branches and instrumentalities, to lot parcel
used and intended for government projects are hereby incorporated in this Act,

SEC. 18. Incentives for private sector participation in! MRDP ~The applicable
provisions of RA 7718 (amended Philippine BOT Law) are hereby incorporated
specifically the inclusion of farm-to-market road among the eligible projects covered
by this law and the corresponding incentives and modalities appropriate thereto

SEC. 19. Inclusion of Farm-to-Market Roads in the Philippine Road Network
Classification System. ~ The DPWH, DILG, and the Local Government Units are
hereby mandated to include farm-to-market roads as a distinct and separate class from
barangay roads in the Philippine Road network classification system. Towards this end,
the concerned LGUs shall designate the FMRs within their respective jurisdiction and
incorporate it in the updating of their Local Road Network Development Plan

SEC. 20. Appropriations Annual appropriations for the Program shall include
the amounts necessary to support and administer the implementation requirements of
all farm-to-market road infrastructure projects included in the Plan.

The Program shall be allocated with at least P1S billion per year under the
General Appropriations Act (GAA). Additional funds over and above the regular yearly
budget of the Department shall be sourced from


a) Not less than 10% of the project cost from the development fund of LGUs as
their counterpart:

b) 30% of the 80% Special Road Support Fund collected under Republic Act 8794
(Motor Vehicle User Charge Law);

©) 20% of the 80% remaining balance of incremental revenue derived from RA
10351(Restructuring the Excise Tax Rate for Cigars, Cigarette and Alcoholic
Beverages) and its amendments:

d) 50% of the collected penalties imposed by Agri-Agra Law;

©) 20% of the interest and other earnings of the Coconut Levy Fund to be allocated
to coconut producing areas certified by the Philippine Coconut Authority;

f) Official Development Assistance (ODA) and such other sources as my be
determined by the national government and Local Government Units upon
effectivity of this Act

Provided, and that such allocation for the balance appropriation thereafter shall
be determined by Congress upon the recommendation of the Secretary of the
Department of Agriculture and the Department of Budget and Management.

Provided further, that the appropriations to implement this Act shall be
integrated in the Department of Agriculture budget every fiscal year. An amount nit
exceeding 10% of the annual allocation shall be earmarked for administered expenses,
developmental activities and capital outlays to be managed by the DA-BAFE for the
administrative, overhead, research and development and capital expenses to implement
the purposes of this Act.

SEC. 21. Equitable Allocation of FMR Projects ~ Notwithstanding any provision
of the law to the contrary, the appropriations for the farm-to-market road projects shall
be allocated among provinces and municipalities in the following manner.

(a) Thirty percent (30%) of the farm-to-market road appropriations to be located
for provinces: and

(b) Seventy percent (70%) of the farm-to-market road appropriations to be
allocated for municipalities

Provided, that the share of each province and municipality shall be determined on the
basis of the following formula:

(a) Twenty-five percent (25%) of farm-to-market road appropriations to be allocated
pro rata according to the population of the province or municipality in relation
to the total population of the country;


(b) Fifty percent (50%) of farm-to-market road appropriations to be allocated pro
rata according to the land area of the province or municipality in relation to the
total land area of the country: and

(c) Twenty-five percent (25%) of farm-to-market road appropriations to be allocated
equally among the provinces or municipalities

SEC. 22. Periodic Review The DA through BAFE shall conduct a periodic
review of the implementation of this Act every fifth year from its effectivity. The
Periodic review shall cover a systematic evaluation of the accomplishments and impact
of this Act, the performances and organizational structure of its implementing
agencies, other funding sources for purposes of determining remedial legislations to
fully carry-out the intent of this Act

SEC. 23. implementing Rules and Regulations, -- the Secretary of Agriculture
shall issue rules and regulations as he/she may deem necessary for the implementation
of this Act

SEC, 24. Penal Provision. Violation of any provision of this Act is hereby
declared as a criminal offense. Any individual or juridical entity in the private sector
or government service who caused or involved in this prohibited act shall be imposed
with a penalty of P100,000.00 and imprisonment per offense as may be determined by
a court of competent jurisdiction

SEC. 25. Repealing Clause. ~All laws, decrees, executive orders, proclamation,
rules and regulations, or parts thereof inconsistent herewith are hereby repealed or
modified accordingly

SEC. 26, Separahility Clause. — If any provisions of this Act is held invalid or
unconstitutional, the other provisions not affected hereby shall remain valid and
subsisting,

SEC. 27. Hffectively. ~ This Act shall take effect fifteen (15) days after its
Publication in at least two (2) national newspapers of general circulation and shall
remain valid and effective up to twenty (20) years thereof.

Approved.