EIGHTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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SENATE
S.B. No.
389
*19 JULll P3 54
RECEIVED B.
INTRODUCED BY SENATOR EMMANUEL D. PACQUIAO
AN ACT
CREATING LAKE LANAO DEVELOPMENT AUTHORITY PROVIDING FUNDS
THEREFOR
EXPLANATORY NOTE
Lake Lanao is the second largest lake in the Philippines and is one of the ancient lakes 
in the world. In 1992, Under Presidential Proclamation 971, Lake Lanao was proclaimed as a 
watershed reservation to ensure the protection of its forest cover and its water yield for 
irrigation, domestic use, and hydropower as it provides 30 percent of the region’s energy.
It was once a home to various species such as cyprinid fish but its extinction was due 
to overfishing, pollution and competition in the lake. It was discovered that Lake Lanao is also 
contaminated with algae and has a major fault line that splits the lake’s bedrock in a roughly 
northeast-southwest direction following the axis of the lake whieh can result to leakage and 
decrease in the volume of the water which will render the poweiplants useless.
The purpose of this bill is to ereate the Lanao Lake Development Authority to ensure 
the protection, management and development of the watershed. The agency is tasked to 
administer and implement the over-all development of Lake Lanao and its surrounding areas. 
There is an immediate need to ensure the preservation and advancement of the ecological 
system and rich marine sources of the lake because it symbolizes not only the pride of the 
Maranao people but all the Mindanaoan people.
In view of the foregoing, immediate approval of this bill is eam e^
EMMANUEL D. PACQUIAO


EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
S.B. No. 
3 8 9
ot !iU ';
*19 JULll P3 54
REC^iv:.;:
INTRODUCED BY: SENATOR EMMANUEL D. PACQUIAO
AN ACT
CREATING LAKE LANAO DEVELOPMENT AUTHORITY PROVIDING FUNDS
THEREFOR
Be it enacted by the Senate and House ofRepresentatives of the Philippines in Congress 
assembled:
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SECTION 1. Title - This Act shall be known as the “Lake Lanao Development Authority of 
2017.”
SEC. 2. Declaration of Policy. — It is hereby declared a policy of the State to promote and 
accelerate the development and balanced growth of Lake Lanao and its surrounding cities and 
municipalities, w'ithin the context of national plans and policies for sustainable development, 
witli due regards and adequate provisions for environmental management and control, 
preservation of the quality of human life and ecological systems and the prevention of undue 
ecological disturbances, deterioration and pollution.
For purposes of this Act, the Lake Lanao Development Authority created under Section 
3 of this Act shall identify the surrounding cities and municipalities, which shall be known as 
the “Area.”
SEC. 3. Creation of the Lake Lanao Development Authority. -  To effectively carry out the 
declared policy, there is hereby created under the Office of the President of the Philippines, a 
body corporate to be known as the Lake Lanao Development Authority' hereinafter referred to 
as the authority.
SEC. 4. Powers and Functions of the Authority. 
purposes and functions:
The Authority shall have the following
(a) To Make a comprehensive survey of the physical and natural resources and 
potentialities of Lake Lanao and the Area, particularly its .social and economic 
conditions, hydrologic characteristics, power potentials, scenic and tourist spots, 
conserv'ation of water resources and such other areas of concerns, and on the basis 
thereof, to craft a comprehensive and detailed Lake Lanao Development Plan to


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promote its rapid social and economic development; Provided, that, the implementation 
of all fisheries plans and programs of the Authority shall require prior consultation with 
the Bureau of Aquatic Resources to ensure that such plans and programs are consistent 
with national fisheries plans and programs;
(b) To pass upon and approve all plans, programs and projects proposed by local 
government units, public corpoiations and private entities tliat is related to tire 
utilization of the resources and the development of Lake Lanao and the Area, and 
monitor the proper implementation of said plans, programs and projects, consistent with 
the objectives and purposes of this Act. With mandatory prior consultation with the 
Department of Enviromnenl and Natural Resources (DENR), the Authority shall issue 
tlic necessary permit for approved plans, programs and projects. Provided. That, any 
application for permit that has been disapproved the Authority may be appealed to the 
Office of the President within fifteen (15) days from receipt of such disapproval, whose 
decision shall be final;
(c) To harness and promote private participation in business ventures in terms of capital 
expenditures, land, expertise, financing and their facilities for the development and 
growth of the Area;
(d) To plan, program, finance and/or undertake infrastructure projects such as river, flood 
and tide control works, waster water and sewerage works, water supply, roads, pot 
works, irrigation, housing and related works when so required within the context of its 
development plans and programs, including the readjustment, relocation or restoration, 
or resettlement of population, as may be deemed necessary and beneficial by the 
Authority: Provided, That, should aby project be financed wholly or in part by the 
Authority, it is hereby autliorized to collect reasonable fees and tolls as may be fixed 
by its Board of Directors from users and/or beneficiaries thereof to recover costs of 
construction, operation and maintenance of the projects:
Provided, Further, That if the Authority should find it necessary to undertake such 
infrastructure project as social overheard capital projects, the Authority shall be 
authorized to receive financial assistance from the government and foreign donors, 
subject to such terms and conditions that may be imposed by the Government;
(e) To reclaim or cause to be reclaimed portions of Lake Lanao or undertake reclamation 
projects and/or acquire such bodies of land from the Lake which may be necessary to 
accomplish the aims and purposes of the Authority; Provided, That, the land so 
reclaimed shall be the property of the Authority and title thereto shall be vested in the 
Authority: Provided, further, That the resulting lakeshore area shall continue to be 
owned by the National Government;
(f) To establish research centers to undertake studies on the marine and other natural 
resources of Lake Lanao for policy or plan formation and project implementation;


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(g) To exercise exclusive jurisdiction to issue new permit for the use of the lake waters for 
any projects, including navigation, construction, operation of fish pens, fish enclosures, 
fish corral and the like, and to impose necessary safeguard for lake quality control and 
management and to collect necessary tees for said activities and projects: Provided, 
That, the Authority’s Board may determine new areas of fishery development or 
activities, taking into account the over-all development plans and programs for Lake 
Lanao; Provided, further, tliat the Authority shall, subject to the approval of the 
President of the Philippines, promulgate such rules and regulations which shall govern 
fisheries development activities in Lake Lanao, including the advisability of placing the 
supervision of said activities under the Bureau of Fisheries and Aquatic Resources of 
tlie local government units in the Area;
(h) To require the cities and municipalities embraced within the area to pass appropriate 
zoning ordinances and regulatory measures to carry out the objectives of the Authority 
and to enforce the same with the assistance of the Authority;
(i) The provisions of existing laws to the contrary notwithstanding, to exercise water rights 
over public water within the Lake Lanao area whenever necessary to carry out the 
Authority’s projects;
(j) To promulgate and establish, in coordination with the Department of Environment and 
Natural Resources and other existing government agencies, water quality standards for 
industrial, agricultural and municipal waste discharges into the Lake and to ensure the 
cooperation of said existing agencies of the Government in enforcing such standards; 
and
(k) To undertake studies on tlie improvement and maintenance of the desirable water 
quality of Lake Lanao, and un pursuance thereof, prepare a water quality management 
program on a continuing basis, which the Authority shall carry out with the assistance 
and support of the national and local government units involved in water quality 
management.
SEC. 5. Corporate Powers. -  The Authority shall exercise the following powers and functions:
a. To sue and be sued;
b. To adopt and use a corporate seal with judicial notice;
c. To undertake the programs and projects specified in Section 4 hereof;
d. To engage in agricultural, industrial and commercial or other activities necessary or 
directly contributory to the socio-economic development of the Area, and, for this 
purpose, whether by itself or in cooperation with private entities, to organize, finance, 
invest in, and or operate subsidiary corporations; Provided, That, the Authority shall 
engage only, unless public interest requires otherwise, in those activities as are in the 
nature of new ventures or are clearly beyond the scope, capacity or interest of private 
enterprises;


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e. To invest in or otherwise acquire, own, hold, use, operate, sell, assign, transfer, 
exchange, mortgage, pledge, lease, develop or otherwise deal in, real property of every 
kind and description, including shares of stick, bonds, debentures, notes, evidence od 
indebtedness, and other securities;
f. To exercise the right of eminent domain or acquire by purchase, privately-owned land 
within the area for purposes of implementing projects of the Authority;
g. To borrow funds from any local or foreign financial institutions independent of tlie 
bonds it may issue to carry out the purposes of the authority;
h. To acquire, tease, or own such property or assets in whatever form and serve as the 
custodian of such properties or assets, real or m.ovable, and sell or otherwise dispose of 
the same as the Authority may deem it necessary in the pursuit of its aims, objectives 
and purposes;
i. To lend or facilitate the extension of financial assistance and/or act as surety or 
guarantor to worthwhile agricultural industrial and commercial enterprises;
j. To accept grants, donations, gifts, bequests, funds, and/or properties in whatever form 
and whatever source in coordination with the appropriate agency and administer the 
same in accordance with the terms thereof, or in the absence of any condition, in such 
manner consistent with the policy, aims and objectives of the Authority provided for in 
this Act;
k. To enter into a contract of any kind and description to enable it to carry out its purposes 
and objectives;
l. To issue such rules and regulations as may be necessary to effectively carry out the 
powers and purposes herein provided, including plans, programs and projects of the 
Authority, the same to take effect thirty (30) days after publication thereof, in a 
newspaper of general circulation; and
m. For the purposes of attaining or in furtherance of any of its objectives, to perform any 
and all acts which a corporation, co-partnership, or natural person is authorized to 
perform under the laws existing or which may be enacted hereafter.
SEC. 6. Capitalization -  The Authority shall have an authorized capitalization of two billion 
pesos (2,000,000,000php) no par value shares, of which the amount of one billion pesos 
(l,000,000,000php) shall be subscribed by the provinces, cities, and municipalities in the Area 
and at least twenty-five percent (25%) shall be subscribed by the National Government.
SEC. 7. Power to Incur Debts and to Issue Bonds. -  Whenever the Board of Directors may 
deem it necessary for the Authority to incur an indebtedness or to issue bonds to carry out the 
provisions of this Act, it shall, by resolution, so deelare and state the purposes for which the 
proposed debt is to be incurred. The resolution shall be passed by the affirmative vote of at 
least four (4) members of the Board and approved by the President of the Philippines upon the 
recommendation of the Secretary of Finance in consultation with the National Economic 
Development Authority (NEDA) and the Monetary Board.
SEC. 8. Tax Exemption. -  The Authority shall be exempt from payment of all taxes imposed 
by the National Government, its provinces, cities, municipalities and other government 
agencies and instrumentalities: Provided, That, its subsidiary corporations shall be subject to


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all said taxes five (5) years after their establishment under a graduated scale. Such exemption 
shall include any tax or free imposed by the Government on the sale, purchase or transfer of 
foreign exchange and all notes, bonds, and debentures, and other obligations issued by the 
Authority, both as to the principal and interest.
SEC. 9. Governing Body. -  The corporate powers and functions of the Authority shall be vested 
iii and exercised by a Boaid of Directors, hereinafter referred to as tlie Board, which shall be 
composed of the Philippines w ho shall serve for a term of six (6) years, unless sooner removed 
from or is incapacitated to perform functions of the office; Provided, That, a majority of the 
mem.bers of the Board must be residents of Lanao del Sur and Lanao del Norte.
In case of any vacancy in the Board, the same shall be filled by the President of the 
Philippines for the unexpired term.
No person shall be appointed as Chairman or member of the Board, or as General 
Manager, unless he is a natural-bom citizen of the Philippines, at least thirty (30) years of age 
and of proven probity and integrity. In addition, the General Manager shall likewise have 
demonstrated executive competence and experience in the field of public administration or the 
management of agricultural, industrial or commercial enterprises and knowledgeable of the 
socio-economic conditions of Lake Lanao and its surrounding cities and municipalities.
SEC. 10. Prohibition against Conflict of Interest. -  No member of the Board shall be 
financially interested, directly or indirectly, in any contract entered into by the Authority or in 
any special privilege granted by the Authority during his term of office. All contracts entered 
in violation of the provision of this Section shall, by two-thirds (2/3) vote of the Board, 
automatically be disqualified from serving his unexpired term, and he shall furthermore be 
perpetually disqualified for membership in the said Boaid.
SEC. 11. Compensation -  The General Manager shall receive compensation in accordance 
with the Compensation and Position Classification Act of 1998 and shall not engage in any 
business, calling or profession during his term of office other than those connected with the 
performance of his official functions and duties.
The members of the Board shall receive, for every meeting actually attended, a per 
diem of two thousand pesos (2,000php): Provided, that, such per diem shall not exceed six 
thousand pesos (6,000php) during any month for each member. Members of the Board shall be 
reimbursed by the Authority for actual expenses (including traveling and subsistence expenses) 
incurred by them in the performance of their duties for the Authority as may be specifically 
authorized by the Board.
SEC. 12. Quorum -  The presence of four (4) members of the Boards, including the Chairman 
or Vice-Chairman, shall constitute a quorum for the transaction of the business of the Board.
SEC. 13. Meetings of the Board. The Board shall meet preferably at its principal office at least 
once a month and as frequently as necessary to to discharge its duties and responsibilities


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properly. The Board shall be convened by the Chairman or upon the written request of a 
majority of its members. Except when otherwise provided for in this Act, the vote of a majority 
of the members constituting a quorum shall be sufficient for the adoption of any rule, 
resolution, decision or any act of the Board.
SEC. 14. Powers and Functions of the Board. -  The Board shall have the following powers 
and functions;
a. To formulate, prescribe, amend and repeal rules and regulations to govern the conduct 
of business of the .Authority;
b. To appoint and fix the compensation of all officials from division heads and above, and 
others of comparable rank, including the Assistance General Manager;
c. By a majority vote of all members of the Board, suspend, remove or otherwise 
discipline for just cause all officials appointed by the Board;
d. To approve the annual and/or supplemental budgets of the Authority;
e. To render annual reports to the President and such special reports as may be requested; 
and
f  To do such other acts and perform such other functions as may be necessary to carry 
out the provisions of this Act.
SEC. 15. Powers and Functions of the General Manager. -  The General Manager shall be the 
chief executive of the Authority, as such, he or she shall have the following powers and 
functions:
a. To submit, for the consideration of the Board, the policies and measures which he or 
she believes to be necessary to carry out the purposes and provisions of this Act;
b. Execute and administer tlie policies, plans, programs and projects approved by the 
Board;
c. Direct and supervise the operation and internal administration of the Authority. The 
General Manager may delegate some of his or her administrative responsibilities to 
other officers of the Authority subject to the rules and regulations of the Board;
d. Prepare the annual budget of the Authority for the consideration of the Board;
e. Prepare the plantilla and appoint officials and employees below the rank of division 
heads, to positions in the approved budget upon written recommendations of the 
division head concerned, using as a guide the standard set forth and such other parts as 
may be required;
f. Exercise such other powers as may be vested in him by the Board.
SEC. 16. Representation of the Authority. -  The General Manager shall be the principal 
representative of the Authority. He shall be empowered, in such capacity and in accordance 
with the instructions of the Board:
a. To represent the Authority in all dealings with other offices, agencies, and 
instrumentalities of the Government and will all other persons and entities, whether 
public or private domestic, foreign or international;


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b. To sign contracts concluded by the Authority, annual reports, balance sheets, profit and 
loss statements, correspondences and other documents of the Autliority; and
c. To represent the Authority, either personally or through counsel, in any legal 
proceedings or actions.
SEC. 17. Departments. -  There shall be created the following departments within the authority: 
The Administrative, Legal, Operations, Financial and Management, Auditing, Planning and 
Programming, and such other department as may be necessaiy to effectively carry out the 
functions of the Authority. The head of each Department shall be appointed by the Board upon 
recommendation of the General Manager, and shall receive an annual compensation as may be 
fixed by the Board.
SEC. 18. Auditing. -  The auditing department shall be headed by the duly appointed 
representative of the Commission on Audit whose salary shall be determined and paid 
according to law. All personnel of the auditing department shall be appointed, and their number 
and salaries fixed by the Commission on Audit.
SEC. 19. Appropriations. -  The sum of fifty million pesos (50,000,000php) necessary for the 
initial operating expenses of the Authority is hereby charged to the appropriations authorized 
for the Regional Development Fund. Thereafter, the sum necessary for the continued operation 
and maintenance of the Authority shall be included in the annual budget of the Office of the 
President.
SEC. 20. Repealing Clause. -  All republic acts, executive orders, rules and regulations, and 
other issuances, or parts thereof, that are inconsistent with the provisions of this Republic Act 
are hereby repealed or modified accordingly.
SEC. 21. Separability Clause. -  If for any reason or reasons, any part or provision of this Act 
shall be declared or held to be unconstitutional or invalid other parts or provisions hereof, 
which are not affected thereby shall continue to be in full force and effect.
SEC. 22. Effectivity Clause. -  This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in at least two (2) national newspapers of general circulation.
Approved,