Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

Twentieth Congress
First Regular Session

HOUSE BILL NO.602

Introduced by Rep. Edwin C. Ongchuan

EXPLANATORY NOTE

In support of President Ferdinand R. Marcos, Jr.’s Executive Order no. 18, s. 2023
“CONSTITUTING GREEN LANES FOR STRATEGIC INVESTMENTS,’ this bill seeks to
institutionalize the position of Local Economic Development and Investment Promotions
Officer (LEDIPO) in local government units (LGUs) by amending Republic Act No. 7160,
otherwise known as the "Local Government Code of 1991." The creation of a permanent
LEDIPO position aims to ensure continuity, stability, and effectiveness in implementing
investment-related initiatives that drive local economic growth.

On October 13, 2010, the Department of the Interior and Local Government (DILG)
issued Memorandum Circular (MC) No. 2010-113 encouraging all Provincial Governors
and City Mayors to designate a Local Economic Development and Investment Promotions
Officer (LEDIPO). The purpose was to promote a more conducive business and
investment climate in localities to attract both local and foreign investors.

‘Subsequent issuances reaffirmed and expanded this directive, DILG MC No, 2011-
16 established the Public-Private Partnership (PPP) Sub-Committee under the Local
Development Councils, to be chaired by the LEDIPO. In support of this, DILG and the
Department of Trade and Industry (DTI) jointly issued MC No. 2011-01, mandating the
formulation of the Local Investment and Incentives Code (LIIC), a policy framework
aligned with national investment strategies and best facilitated by trained LEDIPOs.

Recognizing the growing importance of LEDIPOs in driving local economic
development, DILG issued MC No. 2020-167, reiterating the roles and responsibilities of
designated LEDIPOs and urging LGUs to institutionalize this function. This circular
emphasized the strategic role of LEDIPOs in promoting economic resilience,
strengthening partnerships, and implementing investment-related policies, especially as
LGUs recover from socio-economic disruptions.

In support of the same objectives, Executive Order No. 18, s. 2023, was issued by
the President Ferdinand Marcos, Jr. to establish Green Lanes for strategic investments
in all goverment agencies and local government units. This Executive Order aims to
streamline the permitting process and expedite the delivery of services for priority
investment projects. Under this directive, local government units are expected to assign


a focal person or office, commonly the LEDIPO, to oversee and facilitate Green Lane
processes to ensure timely and coordinated action in support of investors.

Despite these policy advancements, the current designation of LEDIPOs remains
largely temporary, coterminous with the appointing local chief executive. This lack of
permanence poses a risk to the continuity and consistency of economic development
programs. Moreover, any replacement would require renewed capacity building and
disrupt ongoing initiatives.

Therefore, this bill proposes the creation of a permanent LEDIPO position in all
provincial, city, and first- and second-class municipal governments, and on an optional
basis for third- to sixth-class municipalities. Institutionalizing this role will ensure program
stability, effective implementation of investment policies, and professional growth for
LEDIPOs, thereby strengthening local economic governance and national
competitiveness.

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

2
ce
EDWIN C. ONGCHUAN
Representative
Second District, Northem Samar


Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

Twentieth Congress First Regular Session

House BiLLNo. 602

Introduced by Rep. Edwin C. Ongchuan

AN ACT INSTITUTIONALIZING THE POSITION OF ECONOMIC DEVELOP MENT
AND INVESTMENT PROMOTIONS OFFICER IN LOCAL GOVERNMENT UNITS,
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7160, OTHERWISE KNOWN
AS THE “LOCAL GOVERNMENT CODE OF 1991"

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

SECTION 1. Section 443 of Republic Act No. 7160 is hereby amended to read as
follows:

"SEC. 443. Officials of the Municipal Government. - (a) There shall
be in each municipality a municipal mayor, a municipal vice mayor,
sangguniang bayan members, a secretary to the sangguniang bayan, a
municipal treasurer, a municipal assessor, a municipal accountant, a
municipal budget officer, a municipal planning and development
coordinator, a municipal engineer/building official, a municipal health officer
and a municipal civil registrar. FOR FIRST AND SECOND CLASS
MUNICIPALITIES, THERE SHALL ALSO BE A MUNICIPAL ECONOMIC
DEVELOPMENT AND INVESTMENT PROMOTIONS OFFICER.

(b) In addition thereto, the mayor may appoint a municipal
administrator, a municipal legal officer, a municipal agriculturist, a municipal
environment and natural resources officer, a municipal social welfare and
development officer, a municipal architect, a municipal information officer.
THE MAYOR OF THIRD TO SIXTH CLASS MUNICIPALITIES MAY ALSO
APPOINT A MUNICIPAL ECONOMIC DEVELOPMENT AND
INVESTMENT PROMOTIONS OFFICER.

(c)
(a)

(e) xxx."

SECTION. 2. Section 454 of the same Act is hereby amended to read as follows:


"SEC. 454. Officials of the City Government. - (a) There shall be in
each city a mayor, a vice mayor, Sangguniang panlungsod members, a
secretary to the Sangguniang panlungsod, a city treasurer, a city assessor,
a city accountant, a city engineer, a city health officer, a city civil registrar, a
city administrator, a city legal officer, a city veterinarian, a city social welfare
and development officer, a city general services officer AND A CITY
ECONOMIC DEVELOPMENT AND INVESTMENT PROMOTIONS
OFFICER.

(b)
{c)
(a)
(@) xxx."
SECTION 3. Section 463 of the same Act is hereby amended to read as follows:

"SEC. 463. Officials of the Provincial Government. - (a) There shall
be in each province a governor, a vice governor, members of the
sangguniang panlalawigan, a secretary to the sangguniang panlalawigan,
a provincial treasurer, a provincial assessor, a provincial accountant, a
provincial engineer, a provincial budget officer, a provincial planning and
development coordinator, a provincial legal officer, a provincial
administrator, a provincial health officer, a provincial social welfare and
development officer, a provincial general services officer, a provincial
agriculturist, [and] a provincial veterinarian AND A PROVINCIAL
ECONOMIC DEVELOPMENT AND INVESTMENT PROMOTIONS
OFFICER.

(b)
(c)
(d)

(e) xxx."

SECTION. 4. A new section to be denominated as Section 490-A under the new Article
Twenty-One of Book Ill, Title Five, of the same Act is hereby inserted to read as follows:

"ARTICLE TWENTY-ONE. - THE ECONOMIC DEVELOPMENT AND
INVESTMENT PROMOTIONS OFFICER

SEC. 490-A. QUALIFICATIONS, POWERS AND DUTIES. (A) NO
PERSON SHALL BE APPOINTED ECONOMIC DEVELOPMENT AND
INVESTMENT PROMOTIONS OFFICER UNLESS THE PERSON IS A
CITIZEN OF THE PHILIPPINES, A RESIDENT OF THE PROVINCE, CITY
OR MUNICIPALITY WHERE SUCH PERSON WILL BE APPOINTED, OF
GOOD MORAL CHARACTER, A HOLDER OF A COLLEGE DEGREE
PREFERABLY IN ECONOMICS, BUSINESS ADMINISTRATION OR
BUSINESS MANAGEMENT, LAW, OR ANY RELATED COURSE FROM A
RECOGNIZED COLLEGE OR UNIVERSITY, AND A FIRST GRADE CIVIL
SERVICE ELIGIBLE OR ITS EQUIVALENT. THE ECONOMIC
DEVELOPMENT AND INVESTMENT PROMOTIONS OFFICER MUST


HAVE ACQUIRED EXPERIENCE IN ECONOMIC OR INVESTMENT
POLICY MAKING OR MANAGEMENT OR RELATED FIELD FOR AT
LEAST FIVE (5) YEARS IN THE CASE OF THE PROVINCIAL AND CITY
ECONOMIC DEVELOPMENT AND INVESTMENT PROMOTIONS
OFFICER, AND THREE (3) YEARS IN THE CASE OF THE MUNICIPAL
ECONOMIC AND INVESTMENT OFFICER.

FOR THE PROVINCIAL, CITY, AND FIRST AND SECOND CLASS
MUNICIPAL GOVERNMENTS, THE APPOINTMENT OF AN ECONOMIC
DEVELOPMENT AND INVESTMENT PROMOTIONS OFFICER IS
MANDATORY AND OPTIONAL FOR THIRD TO SIXTH CLASS
MUNICIPAL GOVERNMENTS.

(B) THE ECONOMIC DEVELOPMENT AND INVESTMENT
PROMOTIONS OFFICER SHALL TAKE CHARGE OF THE ECONOMIC
AND INVESTMENT PROMOTIONS OFFICE AND SHALL:

1. FORMULATE AND IMPLEMENT THE LOCAL INVESTMENT
AND INCENTIVES CODE;

2. FACILITATE THE PREPARATION, COORDINATION AND
EXECUTION OF LOCAL ECONOMIC DEVELOPMENT AND
INVESTMENT PROMOTION POLICIES, PROJECTS, AND
ACTIVITIES OF THE LOCAL GOVERNMENT UNIT;

3. FACILITATE THE ESTABLISHMENT OF SYSTEMATIC,
COORDINATED AND SUSTAINED PROMOTION AND
MARKETING OF THE LOCAL GOVERNMENT UNIT AS AN
INVESTMENT LOCATION;

4. PROVIDE BASIC INFORMATION ON THE BUSINESS
POTENTIALS OF THE LOCAL GOVERNMENT UNIT TO
PROSPECTIVE INVESTORS TO ATTRACT MORE
INVESTMENTS TO FLOW IN THE COMMUNITY;

5. ADVISE THE SANGGUNIAN, THE GOVERNOR OR MAYOR
AND OTHER LOCAL GOVERNMENT OFFICIALS ON THE
GENERATION OF INVESTMENTS AND ON SUCH OTHER
MATTERS RELATIVE TO ECONOMIC DEVELOPMENT,

6. PROVIDE DATABASE OF INVESTMENT OPPORTUNITIES,
TENURIAL SECURITY, AND INCENTIVE PROGRAMS TO
DEVELOP, UTILIZE AND MANAGE SPECIFIC PORTIONS OF
BUSINESS ENVIRONMENT AND INVESTMENT CLIMATE IN
THE LOCALITY;

7. COORDINATE WITH THE PRIVATE SECTOR IN CARRYING
OUT INVESTMENT PROMOTION CAMPAIGNS;

8. CONDUCT INFORMATION DISSEMINATION ON LOCAL AND
NATIONAL GOVERNMENT POLICIES ON INVESTMENTS;
AND

9. EXERCISE SUCH OTHER POWERS AND PERFORM SUCH
OTHER DUTIES AND FUNCTIONS AS MAY BE PRESCRIBED
BY LAW OR ORDINANCE.


SECTION 5. Implementing Rules and Regulations - Within ninety (90) days from the
approval of this Act, the Secretary of Interior and Local Government, in coordination with
the Presidents of the League of Provinces, League of Cities and League of Municipalities
and the Secretary of Budget and Management, shall promulgate the rules and regulations
implementing the provisions of this Act. The implementing rules and regulations issued
pursuant to this section shall take effect thirty (30) days after its publication in two (2)
newspapers of general circulation.

SECTION 6. Separability Clause - If any provision of this Act shall be held unconstitutional
or invalid, the provisions not affected thereby shall remain in full force and effect.

SECTION 7. Repealing Clause — Existing laws, presidential decrees, executive orders,
proclamations or administrative regulations that are inconsistent with the provisions of this Act
are hereby amended, modified, superseded or repealed accordingly.

SECTION 8. Effectivity Clause - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,