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EIGHTEENTH CONGRESS OF 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
}
S E N A T E
SENATE BILL NO. 
9Q
of tiir e " ti riflri>
•19 
JUL -1 
P2'-40
Introduced by SENATOR RICHARD J. GORDON
AN ACT CREATING THE LAKE LANAO DEVELOPMENT AUTHORITYj 
DEFINING ITS POWERS, FUNCTIONS, AND DUTIES, AND FOR OTHE
PURPOSES
Explanatory Note
Lake Lanao is the largest freshwater lake in Mindanao, and the second largest 
freshwater lake in the Philippines. The rift lake is located in the Province of Lanao del Sur 
at 701.35 meters above sea level. Lake Lanao borders Marawi City and has an area of 
354.60 square kilometers and an average depth of 60.3 meters, the deepest being 112 
meters. The lake is fed by four rivers with only one outlet, the Agus River, which flows 
southwest Iligan Bay via two channels, the Maria Cristina Falls and the Linamon Falls.
The lake is one of the seventeen ancient lakes of the world and used to be home to 
eighteen endemic species of freshwater fish and supports a large number of waterfowls. 
Lake Lanao's rich marine resources provide the fisherfolks in the surrounding cities and 
municipalities a major source of livelihood. A hydroelectric plant is also installed in Lanao 
Lake and Agus River which generates 70% of the electricity used in Mindanao.
It is imperative that the determined preservation, proper utilization and sustainable 
development of Lake Lanao be ensured for the people of Lanao and of the Philippines, as 
well. This bill seeks to create an agency which shall be known as the Lake Lanao 
Development Authority (Authority) that is tasked to administer and implement the over-all 
development of Lake Lanao and its surrounding areas.
The Authority shall craft and implement a comprehensive and detailed Master Plan 
which is designed to promote the rapid social and economic development of lake Lanao 
especially for the faster socioeconomic recovery of Mindanao. The Authority shall be 
governed by a Board of Directors with the assistance of an Executive Director. Moreover, 
the Authority shall undertake research and policy studies on the marine and natural 
resources, among others, of the lake and its surrounding areas. The bill also exempts the 
Authority from the payment of taxes imposed by the National Government to allow it to 
maximize the use of its funds for the development of Lake Lanao and its surrounding 
areas.


Given the great potential of Lake Lanao, having similar topography features with 
well-known lakes such as the Lake Geneva in Switzerland, Lake Tahoe in Sierra Nevada, 
Lake George in New York which is the "Queen of American Lakes," and Lake Michigan in 
North America which is surrounded by countless houses, cabins, inns, hotels, recreation 
centers and numerous infrastructures, thus, it is but apt that the Lake Lanao Development 
Authority be created so as to initiate and promote the economic growth of Mindanao by 
encouraging 
entrepreneurship 
and, 
thereby, 
creating 
various Jobs and 
business 
opportunities to the people. Therefore, the urgent passage of tlw C llP^earnestly sought.
HARD J. GORDON


EIGHTEENTH CONGRESS OF 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
}
S E N A T E
SENATE BILL NO. 
8 0
^
 :
-rr-'.' ;
&i iijc j&pc! "i.irp
'19 
JUL -1 
P2 :40
Introduced by SENATOR RICHARD J. GORDON
AN ACT CREATING THE LAKE LANAO DEVELOPMENT AUTHORITY, 
DEFINING ITS POWERS, FUNCTIONS, AND DUTIES, AND FOR OTHER
PURPOSES
Be it enacted by the Senate and House o f Representatives o f the Phiiippines in Congress assembled:
1 
SECTION 1. 
Short Title.- This Act shall 
be known as the "Lake Lanao
2 
Development Authority Act of 2019."
3 
SECTION. 2. 
Policy. - It is hereby deciared the policy of the State to promote and
4 
accelerate a balanced growth and progress of Lake Lanao and its surrounding cities and
5 
municipalities, within the context of sustainable growth, for the development of Mindanao.
6 
The State further encourages and fosters the 
promotion of entrepreneurships,
7 
investments, infrastructures, tourism growth, and the creation of jobs and business
8 
opportunities for ail.
9 
In addition, due regard and adequate safeguards for the protection on the quaiity of
10 
life, environmental management and control such as the preservation of ecoiogical
11 
systems
12 
SECTION 3. Lake Lanao Development Authority.- The Lake Lanao Development
13 
Authority is hereby created under the Office of the President hereinafter referred to as the
14 
"Authority".
15 
The Authority shail consist of a Board of Directors, hereinafter referred to as the
16 
"Board", which shall be composed of a Chairman and six (6) Members, to be appointed by
17 
the President. Provided that/ majority of the Members of the Board must be residents of


1 
Lanao del Sur and Lanao del Norte. The term of office for the Board shall be for six (6)
2 
years, unless sooner removed or incapacitated.
3 
In case of any vacancy in the Board, the same shall be filled by the President for the
4 
unexpired term. No person shall be appointed as Chairman or Member of the Board,
5 
unless he or she is a natural-born citizen, at least thirty (30) years of age, and of proven
6 
competence, probity, and integrity.
7 
For purposes of this Act, the Authority created under this Section shall identify the
8 
surrounding cities and municipalities within its jurisdiction which shall be known as the
9 
"Area".
10 
SECTION 4. Powers and Functions o f the Board.-Jhe. Authority through the Board
11 
shall have the following powers and functions:
12 
a) To make a comprehensive survey of the physical and natural resources and
13 
potentialities of Lake Lanao and the Area, particularly its social, cultural,
14 
historical, and economic conditions, hydrologic characteristics, power potentials,
15 
scenic and tourist spots, conservation of water resources and such other areas of
16 
concerns, and thereafter, craft a comprehensive and detailed Master Plan, as
17 
provided in Section 10 of this Act, to promote its rapid social and economic
18 
development; Provided that, the implementation of all fisheries plans, projects,
19 
and programs of the Authority shall require prior consultation with the Bureau of
20 
Aquatic Resources to ensure that such plans, programs and projects are
21 
consistent with the national fisheries plans and programs;
22 
b) To undertake other plans, programs, and projects to further the socioeconomic
23 
development of the Area and of the Philippines thereafter;
24 
c) To promote or engage in agricultural, industrial, tourism, commercial or other
25 
activities necessary or directly contributory to the socioeconomic development of
26 
the Area, and, for this purpose, whether by itself or in cooperation with private
27 
entities, may organize, finance, invest in, and operate subsidiary corporations;
28 
d) To study and approve all plans, programs and projects proposed by the local
29 
government units, public corporations, and private entities which is related to the
30 
utilization of the resources and the development of Lake Lanao and the
31 
surrounding Area, and monitor the proper implementation of said plans,
32 
programs, and projects consistent with the objectives and purposes of this Act, in


1 
coordination 
and 
mandatory 
prior consultation 
with 
the 
Department of
2 
Environment and Natural Resources (DENR);
3 
e) To plan, program, finance and/or undertake infrastructure projects such as flood
4 
control, sewage, water supply, roads, pot works, irrigation, housing and other
5 
related works, as may be deemed necessary, when so required within the context
6 
of its plans programs, including the readjustment, relocation, restoration, or
7 
resettlement of concerned residents, as may be deemed necessary in the best
8 
interest of the public: Provided that, should any project be financed wholly or in
9 
part by the Authority, it is hereby authorized to collect reasonable fees and tolls
10 
as may be fixed by its Board from users and/or beneficiaries thereof to recover
11 
costs of construction, operation, and maintenance thereof;
12 
f) To undertake reclamation projects which may be necessary to accomplish the
13 
approved plans and projects of the Authority. Provided that, the land so
14 
reclaimed shall be the property of the Authority and title thereto shall be vested
15 
solely to the Authority: Provided further that, the resulting lakeshore area shall
16 
continue to be owned by the National Government as provided in Section 4(d) of
17 
this Act;
18 
g) To establish research centers to undertake studies on the marine and other
19 
natural resources of Lake Lanao for policy and plan formation;
20 
h) To preserve and enrich the history and culture of the people in Mindanao by
21 
establishing museums, historical sites, among others;
22 
i)To 
implement 
projects and 
undertake 
studies on the 
improvement 
and
23 
maintenance of the desirable water quality of Lake Lanao, and in pursuance
24 
thereof, prepare a water quality management program on a continuing basis,
25 
which the Authority shall carry out with the assistance and support of the national
26 
and local government units involved in water quality management;
27 
j)To invest in or otherwise acquire, own, hold, use, operate, sell, assign, transfer,
28 
exchange, mortgage, pledge, lease develop, or otherwise deal in, real or
29 
personal, including shares of stock, bonds, debentures, notes, evidence of
30 
indebtedness, and other securities. Provided that, no land within the shore area
31 
may be sold to any person, natural or juridical, such land shall only be available


1 
for lease for a renewable period of five (5) years, unless sooner terminated by
2 
the government for just causes.
3 
k) To exercise the right of eminent domain or acquire by purchase, privately-owned
4 
lands within the area for purposes of implementing plans and projects o f the
5 
Authority;
6 
l)To require the local government units embraced within the Area to pass
7 
appropriate zoning ordinances and regulatory measures and to enforce the same
8 
with the Assistance of the Authority;
9 
m) To provide, establish, and accredit security and firefighting forces;
10 
n) To formulate and implement public safety measures to ensure preservation of
11 
peace and order within the Area by establishing Peace and Order Rangers having
12 
concurrent jurisdiction with the law enforcement within the Area;
13 
o) To borrow funds from any local or foreign financial institution to carry out the
14 
plans and projects of the Authority;
15 
P) To accept grants, donations, gifts, bequests, funds, and/or properties in whatever
16 
form and whatever source in coordination with the appropriate agency and
17 
administer the same in accordance with the terms thereof, or in the absence of
18 
any condition, in such manner consistent with the policy and powers of the
19 
Authority provided for in this Act;
20 
q) To enter into contracts to carry out its purposes and objectives;
21 
r) To sue and be sued;
22 
s) To issue rules and regulations as may be necessary to effectively carry out the
23 
powers herein provided, including the plans, programs, and projects o f the
24 
Authority. Such rules and regulations shall take effect fifteen (15) days after
25 
publication thereof, in a newspaper of general circulation; and
26 
t) To perform any other act as may be deemed necessary by the Board, upon
27 
majority vote, to undertake the plans, programs and projects of the Authority.
28 
SECTION 5. Executive Director. In addition to the Board, an Executive Director
29 
shall be appointed by the President to who shall come from the private sector and shall
30 
have demonstrated executive competence and experience for at least ten (10) years in
31 
the management of agricultural, industrial, tourism or commercial enterprises and
32 
knowledgeable of the socio-economic conditions of Lake Lanao and its surrounding cities


1 
and municipalities. Further, no person may be appointed as an Executive Director unless
2 
he or she is a natural-born citizen, at least forty (40) years of age, and of proven
3 
competence, probity, and integrity.
4 
SECTION. 6. 
Powers and Functions o f the Executive Director. The Executive
5 
Director shall have the following powers and functions:
6 
(a) 
To assist in the administration and management of the Authority;
7 
(b) 
To assist in the development and improvement of the Master Plan;
8 
(c) 
To promote, trade, tourism, and agriculture enterprises within the Area so as
9 
to encourage more investments;
10 
(d) 
To ensure that Rules and regulations established by the Authority are
11 
enforced and implemented; and
12 
(e) 
To guarantee that safety and security measures are properly implemented
13 
within the Areas covered by the Authority.
14 
SECTION. 7. Prohibition against Conflict o f Interest-The Board and the Executive
15 
Director shall not be allowed to have any financial interest, directly or indirectly, in any
16 
contract entered into by the Authority or in any special privilege granted by the Authority
17 
during his or her term of office. All contracts entered into by any member of the Board,
18 
the Chairman, or the Executive Director, in violation of this Section shall be immediately
19 
voted upon by the Board, no more than five (5) days after its discovery, and by two-thirds
20 
(2/3) vote thereof, the contract may be voided. Further, the member of the Board, the
21 
Chairman, or the Executive Director who violated this Section shall be disqualified from
22 
serving his or her unexpired term and shall be perpetually disqualified in any position in
23 
the Authority.
24 
SECTION. 8. Quorum.- The presence of four (4) Members of the Board, including
25 
the Chairman, shall constitute a quorum for the transaction of business.
26 
SECTION. 9. Meetings o f the Board. The Board shall meet preferably at its principal
27 
office at least twice a month and as frequently as necessary to discharge its duties and
28 
responsibilities properly. The Board shall be convened by the Chairman or upon a written
29 
request by a majority of its Members. Except when otherwise provided for in this Act, the
30 
vote of a majority of the members constituting a quorum shall be sufficient for the
31 
adoption of any rule, resolution, decision or any act of the Board.


1 
SECTION. 10. Lake Lanao Development Authority Master Plan.- Immediately upon
2 
the creation of the Authority, coordination shall be made by the Board with the local
3 
government units, through active participation, to develop the Lake Lanao Development
4 
Authority Master Plan.
5 
SECTION. 11. Establishment o f Tourism Enterprise Zones. - The Authority may allow
6 
the establishment of Tourism Enterprise Zones (TEZ) in complete coordination and
7 
assistance with the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), as
8 
authorized by the Department of Tourism (DOT), and under the supervision of the
9 
President.
10 
An entity may qualify as an operator of a TEZ, as designated by the TIEZA, within
11 
the jurisdiction of the Authority under RA 9593 or otherwise known as the "Tourism Act of
12 
2009."
13 
Competitive incentives extended to TEZs may be provided, upon qualification, in
14 
accordance with abovementioned law.
15 
SECTION. 12. Exemption from Tax-The Authority shall be exempt from payment
16 
of all taxes imposed by the National Government, its provinces, cities, municipalities, and
17 
other government agencies and instrumentalities. Provided that, subsidiary corporations,
18 
which may be created, shall be subject to all said taxes five (5) years after its
19 
establishment.
20 
Such exemption shall include any tax or fee imposed by the National Government on
21 
the sale, purchase, or transfer of any foreign exchange and all notes, bonds, and
22 
debentures, and other obligations issued by the Authority, both as to the, principal and
23 
interest.
24 
SECTION. 13. Representation o f the Authority.- The Executive Director shall be the
25 
principal representative of the Authority. He or shall be empowered, in such capacity, and
26 
in accordance and approval of the Board, by two-thirds (2/3) vote, on the following:
27 
a) 
To represent the Authority in all dealings with other offices, agencies, and
28 
instrumentalities of the Government and with all other persons and entities,
29 
whether public or private, domestic or foreign;
30 
b) 
To sign contracts concluded by the Authority, annual reports, balance sheets,
31 
profit and loss statements, correspondences and other documents of the
32 
Authority; and


1 
c) 
To represent the Authority, either personally or through counsel, in any legal
2 
proceedings or actions.
3 
SECTION. 14. Capitalization.-The Authority shall have an authorized capital of Two
4 
Billion Pesos (Php 2,000,000,000.00) no par value shares, of which the amount of One
5 
Billion Pesos (Php 1,000,000,000.00) shall be subscribed by the provinces, cities and
6 
municipalities in the Area wherein twenty-five percent thereof (25%) shall be subscribed
7 
by the National Government.
8 
SECTION. 15. Departments.-lt\e following departments shall be created within the
9 
Authority: 
Administrative, 
legal. Operations, 
Financial and Management, Auditing,
10 
Planning and Programming, and such other departments as may be necessary to
11 
effectively carry out the functions of the Authority. The Head of each Department shall be
12 
appointed by the Board, upon recommendation by the Executive Director.
13 
SECTION. 16. Appropriations.- The sum of two hundred million pesos (Php
14 
200,000,000.00) necessary for the initial operating expenses of the Authority is hereby
15 
charged to the appropriations authorized for the Regional Development Fund. Thereafter,
16 
the sum necessary for the continued operation and maintenance of the Authority shall be
17 
included in the annual budget of the Office of the President.
18 
SECTION. 17. Separability Clause.- If any portion or provision of this Act is
19 
subsequently declared unconstitutional, the remainder of this Act or any provision not
20 
affected thereby shall remain in force and effect.
21 
SECTION. 18. Repeating Clause.- All laws, decrees, orders, proclamations, rules and
22 
regulations or other issuances or parts thereof inconsistent with the provisions of this Act
23 
are hereby repealed or modified accordingly.
24 
SECTION. 19. This Act shall take effect fifteen (15) days after the completion of its
25 
publication in the Official Gazette or in a newspaper of general circulation in the
26 
Philippines.
27
28 
Approved,