Republic of the Philippines

House of Representatives 2
Quezon City, Metro Manila

x

Nineteenth Congress
First Regular Session

HOUSE BILL No,_3747

Introduced by Representative Christian S. Unabia

EXPLANATORY NOTE

This bili seeks to to remove the minimum ten percent (10%) counterpart
fund requirement of local government units (LGUs) on farm-to-market road
projects by amending for the purpose Republic Act (RA) No. 8435, as amended,
otherwise known as the “Agriculture and Fisheries Modernization Act of
1997."

With the devolution of agricultural functions to the LGUs and the
enactment of RA 8435, the local agricultural development has intensified. One
of the reasons for the development is the construction of farm-to-market roads
(FMR) that served as links to sustain the livelihood and food security of farming
communities by facilitating the movement of goods from remote agricultural
areas to market areas and triggering economic activities in the locality.

However, one of the major constraints in the identification, prioritization,
and implementation of FMR projects is the LGUs’ counterpart funding
requirement pursuant to the second paragraph of Section 52 of RA No. 8435, as
amended, which provides that

“Construction of farm-to-market roads shall be a priority
investment of the LGUs which shall provide a counterpart of not
less than ten percent (10%) of the project cost subject io their IRA
level.”


As gleaned from the foregoing, the LGUs are expected to play a
contributory role with the Department of Agriculture in the identification,
prioritization, and implementation of the FMRs. This partnership is one of the
highlights in the implementation of the desired modernization of the agriculture
and fisheries sectors.

Unfortunately, there are income disparities among LGUs, particularly
those belonging to the low-income 4th to 6th class municipalities. They are
receiving lower national tax allotment shares than those of the Ist to 3rd class
municipalities. Most of these LGUs, if not all, lack the budgetary resources to
comply with the counterpart fund requirement for FMRs. They use their
meager resources to provide basic services instead of investing in FMRs. Thus,
there is delay of agricultural development in their localities.

With this proposed measure, the LGUs will be exempted from complying
with the counterpart funding, thus allowing them to focus on the more pressing
needs of their respective jurisdictions. Accordingly, this bill proposes to repeal
the aforementioned provision on counterpart fund and fully realize the declared
policy embodied in RA 8435 that “The goals of the national economy are a
more equitable distribution of opportunities, income and wealth; a sustained
increase in the amount of goods and services produced by the nation for the
benefit of the people; and an expanding productivity as the key to raising the
quality of life for all, especially the underprivileged.”

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

CH MONA!


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

Nineteenth Congress
First Regular Session

HOUSE BILL NO. __3747

Introduced by Representative Christian S. Unabia

AN ACT
REMOVING THE MINIMUM TEN PERCENT (10%) COUNTERPART
FUND REQUIREMENT OF LOCAL GOVERNMENT UNITS ON
FARM-TO-MARKET ROAD PROJECTS, AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 8435, AS AMENDED, OTHERWISE
KNOWN AS THE “AGRICULTURE AND FISHERIES
MODERNIZATION ACT OF 1997”

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

SECTION 1. Section 52 of Republic Act No. 8435, as amended, is hereby
further amended to read as follows:
“Sec. 52. Farm-to-Market Roads. ~ The Department shall
coordinate with the LGUs and the resident-farmers and fisherfolk
in order to identify priority locations of farm-to-market roads that
take into account the number of farmers and fisherfolk and their

families who shall benefit therefrom and the amount, kind and


1 importance of agricultural and fisheries products produced in the

2 area.”
3 “|Constructi a cite
a : - 5 « _ . ofan

6 tevel.|”

7 SEC. 2. All laws, executive orders, issuances, rules and regulations, or

8 _ parts inconsistent with this Act are hereby repealed or modified accordingly.

9 SEC. 3. This Act shall take effect fifteen (15) days after its publication in
10 the Officia/ Gazette or in a newspaper of general circulation.

1 Approved,