THIRTEENTH CONGRESS OF THE 
1 
Third Regular Session 
1 
REPUBLIC OF THE PHILIPPINES 
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s. B. NO. 2429 
, 
S E N A T E  
Introduced by SENATOR EDGARDO 3. ANGARA 
EXPLANATORY NOTE 
The Ifugao Rice Terraces, printed on the face of the one thousand 
Philippine peso bill, is known worldwide as the sth Wonder of the Old World 
and is a prime tourist destination. The marvel of the Ifugao Rice Terraces is 
in the manner the people transformed the harsh wilderness of the Cordillera 
highlands into productive farming systems. The terraces are the living 
testament to the Ifugaos' mastery of watershed ecology, terrace engineering, 
and water distribution. 
Ifugao Rice Terraces significantly forms part of the Rice Terraces of the 
Philippine Cordillera, whose terraces and culture were inscribed in the World 
Heritage list in December 1995 under the category "living cultural landscape" 
having both natural and cultural characteristics of outstanding universal 
significance. The inscription includes five terrace clusters: Batad and Banga- 
an in the municipality of Banaue, Happao in Hungduan, Nagacadan in 
Kiangan and Central Mayoyao Cluster in Mayoyao. The first four priority sites 
inscribed in the WHL are located within the Ifugao Province. 
"The term 'cultural landscape' embraces a diversity of manifestations 
of the interaction between humankind and its natural environment. Cultural 
landscapes often 
reflect specific techniques of sustainable land-use, 
considering the characteristics and limits of the natural environment they are 
established in, and a specific spiritual relation to nature." 
The importance of protecting cultural landscapes is explained by the 
WHL Convention as follows: "the continued existence of traditional forms of 
land-use supports biological diversity in many regions o f  the world. The 
protection of traditional cultural landscapes is therefore helpful in maintaining 
biological diversity." 
However, the condition of the terraces has continuously deteriorated. 
In 2001, it was placed in the World Heritage List in Danger. The Ifugao Rice 
Terraces and Cultural Heritage Office (IRTCHO) provided several factors 
causing the deterioration, namely: 1) loss of bio-diversity due to bio-piracy, 
unregulated hunting and indiscriminate use of new technology and 
introduction of new species; 2) reduced farm labor due to increasing out- 
migration of farm labor force; 3) erosion and siltation due to destruction of 
watershed; 4) Land use conversion and abandonment of rice terraces due to 
damaged rice terraces; 5) insufficient irrigation water supply, limited income 
from rice farming, shift in values and priorities of the people, unregulated 
land use and physical planning. 


This bill is a first step towards an overall terraces management and 
preservation strategy with the end in view of establishing a permanent, 
efficient, and effective body to coordinate and lead efforts to safeguard, 
restore, and protect the Terraces of the entire Cordillera Region. It shall 
initially formulate a Ten-Year Cordillera Terraces Master Plan. 
The terraces of 
the Cordilleras are truly a 
rare engineering 
achievement and the Philippines is racing, nay scrambling against time to 
save them from deterioration. 
I, therefore, strongly urge my colleagues in the August hall to rally for 
the immediate passage of this bill. 
EDG %( 
RD03.AN /+ 
ARA 
Senator 


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THIRTEENTH CONGRESS OF THE 
1 
Third Regular Session 
1 
A@; 
.-I 
i;", i 
REPUBLIC OF THE PHILIPPINES 
) 
S E N A T E  
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Introduced by SENATOR EDGARDO J. ANGARA 
AN 
ACT 
CREATING THE 
CORDILLERA TERRACES AUTHORITY, 
DEFINING I T S  POWERS AND FUNCTIONS, PROVIDING FUNDS 
THEREFOR AND FOR OTHER PURPOSES. 
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 "Cordillera 
Terraces Authority of 2006." 
SEC. 2. Declaration of Policy. As signatory to the World Herjtage 
Convention on the Protection of the World Cultural and Natural Heritage on 
28 August 1985, it is hereby declared the policy of the State to be committed 
to the identification, protection, conservation, and safeguarding of heritage 
within the Philippine territory. 
To this end, the State shall undertake the identification, protection, 
conservation, and safeguarding of cultural and natural heritage and agreed to 
do all they can, using their resources to do so as well as 1) adopt a general 
policy, which aims to give the cultural and natural heritage a function in the 
life of the community and to integrate the protection of that heritage into 
comprehensive planning programs; 2) undertake appropriate legal, scientific, 
technical, 
administrative and financial 
measures necessary for the 
identification, protection, conservation, presentation and rehabilitation of 
heritage properties; and 3) refrain from deliberate measures, which might 
damage, directly or indirectly, the cultural and natural heritage. 
Pursuant to this policy, the Cordillera Autonomous Region, embracing 
the provinces of Ifugao, Mt. Province, Abra, Benguet, Apayao, Kalinga, and 
Benguet is hereby constituted into a Cordillera Terraces Authoritv subject to 
the direct supervision of the President of the Philippines. 
SEC. 3. Creation of the Cordillera Rice Terraces Authority. To 
carry out the foregoing policy, there is hereby created a body corporate to be 
known as the CORDILLERA TERRACES AUTHORITY, hereinafter referred 
to as the "CTA,'' which shall be under the Office of the President of the 
Philippines. 


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SEC. 4. Principal Office and Term. - The principal office of the 
AUTHORITY shall be in Banaue, Ifugao. It may however establish such 
branches, subsidiaries, offices or agencies as it may deem necessary to 
attain the objectives of this Act. 
The AUTHORITY shall have a term of fifty [50] years from the 
effectivity hereof renewable for the same period unless otherwise provided 
for by law. 
SEC. 5. Functions of the Cordillera Terraces Authority. The CTA 
shall: 
a. 
Formulate a Ten-Year (10-year) Cordillera Terraces Master Plan within 
six [SI months upon its creation for the preservation and restoration of 
the Terraces in the Region based on the following guidelines and with 
the following major components: 
Restoration and Preservation of the area's terraces, protection 
and maintenance of ecological balance and enhancement of its 
environment; 
Rehabilitation 
of the age-old 
irrigation systems and the 
construction of new ones; 
Massive reforestation, preservation and protection of the forest 
areas which are the sources of the waters irrigating the terraces; 
Rational land-use and zoning plan considering that the Cordillera 
Terraces are national treasures and tourist destinations of Filipinos 
from all parts as well as foreign visitors; 
Prohibition/control of unusually tall and unstable and obstructive 
structures obscuring public view of the natural beauty of the 
surroundings in accordance with the zoning ordinances of the local 
government units concerned and subject to the pertinent laws, 
rules and regulations on the matter; 
Provision for improved and adequate service infrastructures such 
as power, water, communications, and waste disposal facilities; 
Enhancement of agricultural productivity and local livelihood 
opportunities as an alternative to industrial employment; and 
(8) Provision for a viable peace and order pian. 
Such Plans shall include a Comprehensive Investment 
Program Capability Building Program for the affected local 
government units as well as the coordinated establishment, of the 
following in the subject area: 
i .  a nature center; 
ii. a cultural center; 
iii. a people's center; 
iv. a conference and meeting center; 
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v. a flea market destination (vegetable/livelihood); and 
vi. tourist destinations. 
b. Assist the local government units concerned in undertaking various 
planning activities to develop short-term and long-term strategies for 
tourism development, environmental protection, attracting business 
investment, socio-cultural development, and institutional building, in 
line with the developmental guidelines stated above and to integrate 
all national and local plans relative to the restoration and preservation 
of the subject area; 
c. Adopt a process of maximum consultation with the local government 
units 
concerned, 
non-governmental 
organizations, 
and 
other 
stakeholders' 
groups in the localities to ensure that the residents' 
needs, concerns and ideas are considered in the formulation and 
implementation of the said plans, development guidelines, 
and 
municipal ordinances; 
d. Study and review policy measures that shall promote and address the 
concerns on environmental protection, 
poverty alleviation, 
local 
autonomy, eco-tourism, cultural preservation and development, and 
sustainable development of the subject area; 
e. 
Recommend (i) 
legislation to conserve the natural resources and 
promote the accelerated socio-economic development of the area; (ii) 
zoning ordinances to the Sangguniang Bayan concerned in consonance 
with the Plans approved by the President, subject to existing laws, 
rules and regulations; (iii) the establishment of fire limits or zones, 
particularly in populous centers; and (iv) the regulation of the 
construction, repair or modification of buildings within said fire limits 
or zones in accordance with the provisions of the Fire Code; and 
f. 
Recommend to the Sangguniang Bayan concerned such other 
ordinances and measures as may be necessary to attain the objectives 
of the Plans; and 
g. 
Perform such other functions as are necessary to achieve the 
objectives of the CTA. 
SEC. 6. Powers of the Cordillera Terraces Authority. The CTA 
(a)To adopt, promulgate, and enforce such rules and regulations as are 
necessary to execute the powers, duties and functions vested in it by 
this Act as well as such regulations as may be necessary for the proper 
use by private parties of any or all of the AUTHORITY'S properties and 
to impose or collect fees or tolls for their use; 
shall exercise the following powers: 
(b)To improve, develop, and provide livelihood opportunities as an 
alternate 
employment 
for 
the 
constituents of 
the 
Cordillera 
Autonomous Region; 
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(c)To engage or invest on, or enter into joint venture with Filipino and 
foreign investors in such projects within the Cordillera Region as it 
may deem proper and necessary or contributory to the achievement of 
any or all of its purposes and functions; 
(d)To exercise the right of eminent domain; 
(e)To call upon any particular government agency, office or bureau for 
assistance in the discharge of, and form committees to facilitate the 
performance of its functions and responsibilities; and 
(f) Perform such other functions as are necessary to achieve the 
objectives of the CTA. 
SEC. 7. Cordillera Terraces Council. The governing board and 
policymaking body of the CTA shall be the Cordillera Terraces Council. The 
Cordillera Terraces Council shall be composed of the following, to wit: 
Secretary of Tourism 
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Secretary of Agriculture 
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Secretary of Environment and 
Natural Resources 
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Secretary of Public Works and 
Highways 
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Secretary of Health 
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Chairman of the National 
Commission on Culture 
And Arts 
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Chairman of the National Commission 
for the Indigenous Peoples 
Governor of Abra 
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Governor of Apayao 
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Governor of Benguet 
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Governor of Ifugao 
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Governor of Kalinga 
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Governor of Mt. Province 
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Chairman of the Cordillera Regional Assembly - 
Chairman 
Vice-chairman 
Member 
Member 
Member 
Member 
Member 
Member 
Member 
Member 
Member 
Member 
Member 
Member 
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Except for the heads of local government units, the other members of 
the Board may appoint their representatives thereto from their respective 
Undersecretaries only. 
The members of the Board shall have one [I] vote each. A majority of 
the members shall constitute a quorum. A decision shall, as far as practical, 
be reached by consensus. If no consensus is reached, a decision shall be 
upon a vote of the majority of ail members of the Board. 
The Board shall: 
1. 
Formulate policies, develop programs and promulgate rules and 
regulations to carry out the purposes of its creation, powers and 
functions of the CTA; 
2. 
Approve each year a budget to cover the operations of the 
Authority; 
3. 
Fix the compensation, emoluments, and allowances of the 
Administrator and other officers and personnel of the CTA; and 
Perform such other functions as may be necessary to carry out 
the purposes of this Act. 
4. 
SEC. 8. Duties and Functions of the Chairman of the Board, The 
Chairman shall: 
(a)Call and preside at the meetings of the Board and see to it that the 
policies, programs and rules and regulations developed and promulgated by 
it are implemented properly; and 
(b)Present for approval by the Board: 
i. Annual budget of the Authority; 
ii. Rules and regulations needed to carry out the provisions of 
this Act and the amendments thereto; 
iii. Other matters which he deems necessary or proper for the 
effective implementation of this Act; and 
iv. Annual report on the activities and finances of the CTA, 
copies of which upon approval by the Board shall be 
furnished to the Office of the President of the Philippines 
and both Houses of Congress. 
SEC. 9. Organizational Structure. The Board shall determine the 
organizational structure, staffing pattern, and pay scales subject to the 
Salary Standardization Law, of the CTA and the officers and employees 
thereof. The Board may re0rganiz.e the same and create or abolish divisions, 
offices, units, branches or agencis therein, as the exigencies of the affairs of 
the CTA may require. 
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SEC. lQ. Administrator. Upon recommendation of the Board from at 
least three (3) qualified recommendees of the provincial governors, the 
President of the Philippines shall appoint an Administrator who shall be the 
Chief Executive Officer of the CTA and ex-officio Vice Chairman of the Board 
with the rank of Presidential Assistant. The term of office of the Administrator 
shall be at the pleasure of the President of the Philippines but co-terminus 
with the tenure of the appointing authority. The Adminislrator shall establish 
his official residence in Baguio and shall not, during his tenure of office, 
engage in any business, profession, or calling other than those connected 
with the performance of his official duties as Administrator of the CTA. 
The Administrator shall have the following powers, duties and 
responsibilities: 
(a)To submit to the Board, through the Chairman, policies and measures 
which, in his judgment, are necessary to carry out the purposes and 
provisions of this Act; 
(b)Prepare the budget of the CTA for approval of the Board; 
(c) Execute and administer the policies and measures approved by the 
Board; 
(d)To direct, implement, undertake and supervise the implementations, 
and executions of the projects and programs of the CTA towards the 
restoration and preservation of the Ifugao terraces, protection of its 
ecological balance and enhancement of its environment as premier 
tourist destination and heritage as well as the operations and internal 
administration of the CTA; 
(e)Appoint all employees of the Authority except the heads of 
departments and divisions whose appointments shall be made by the 
Board upon his recommendation; and to remove, dismiss or otherwise 
discipline for cause, such employees in accordance with the standard 
guidelines for recruitment, employment, and discipline of personnel 
which shall be formulated by the Board; 
(f) To represent the CTA in all dealings with other offices, agencies: and 
instrumentalities of the Government and with all persons and entitles, 
public or private; 
(g)Subject to the approval of the Board to determine the rates of 
compensation, 
allowances, 
honoria, 
and such other additional 
compensation which the CTA is hereby authorized to grant its officers, 
technical staff, and consultants including the necessary detailed 
personnel; 
(h)To exercise such other powers as may be granted to him by the Board. 
SEC. 11. Foreign Loans. The CTA is hereby authorized to contract 
loans, credit and indebtedness, in any convertible foreign currency or capital 
goods from time to time from foreign governments or any international 
financial institutions or fund sources. 
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SEC. 12. Auditor. The Chairman of the Commission on Audit (COA) 
shall be the ex-officio Auditor in charge of the audit of the CTA. He shall 
appoint a representative who shall be the auditor thereof. The Chairman of 
the Commission on Audit [COA] shall likewise, upon recommendation of the 
Auditor of the CTA, appoint or remove personnel of the said auditing office in 
accordance with the CTA's merit system. The operating expenses of this 
office and the salaries and travelling expenses of the officials and employees 
thereof shall be fixed by the Board and paid by the CTA. Such representative 
shall render a semestral report to the Chairman of the Commission on Audit 
and the Board, which shall submit to the President of the Philippines and the 
Congress an annual report covering the financial condition and operations of 
the CTA. 
SEC. 13. Donations and Gifts. The CTA shall have the right to 
receive donations or bequests which shall be utilized only for the 
implementation of the programs and projects of the CTA: Provided, That 
programs and projects of the CTA financed by foreign grants or financial 
assistance with national security implications shall be approved first by the 
Department of National Defense who shall act upon the request within thirty 
[30] days from receipt of the request otherwise the request is deemed 
approved. 
Any such donations or bequest shall be exempt from the payment of 
gift taxes and the full amount of such donations or bequests shall be 
deductible from the gross income of the donor for the year during which the 
same is made. 
SEC. 14. Applicability of the Corporation Law. The provisions of 
the Corporation Law, as amended, insofar as they consistent with this Act 
shall be applicable to the operations of the CTA. 
SEC. 15. Transitory Provisions. All its budgetary appropriations, 
finances, properties, records, rights, equipments, choses in action, and other 
assets as well as liabilities and accountabilities are hereby transferred to the 
CTA. 
The existing qualified personnel of the Ifugao Rice Terraces and 
Cultural Heritage Office (IRTCHO) covered by the Civil Service Law and 
pertinent rules and regulations shall be absorbed by the CTA. 
The CTA shall approve and prescribe its new staffing pattern and 
prescribe the authorized positions created thereunder. The same shall be 
filled with regular appointments in accordance with Civil Service Laws, rules 
and regulations. Those incumbents whose positions are not included therein 
or who are not re-appointed shall be deemed separated from the service or 
retired under existing law and regulations. 
Furthermore, upon approval of this Act, the present head of the 
IRTCHO shall discharge the functions of the Administrator until the President 
of the Philippines shall appoint him and/or a replacement is appointed 
thereto. 
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SEC. 16. Sources of Funds and the Operating Budget of the CTA. 
To carry out the purposes of this Act, 
(a)The amount of One Hundred Million Pesos (Php 100,000,000,00) is 
hereby authorized to be appropriated for the initial operation of the 
CTA. Thereafter, the annual expenditures including capital outlays 
of the CTA shall be provided in the Annual General Appropriations 
Act; 
(b)The CTA is likewise empowered to levy fines, impose fees and 
charges for various services rendered; 
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(c)Two percent (2%) of the total annual gross revenue of the 
preceding year, net of the internal revenue allotment, of each 
province mentioned in Section 
~ 
hereof, shall accrue and be 
payable monthly to the CTA by each province. Upon failure to remit 
the said contribution, the DBM 
SEC. 17. Repealing Clause. Executive Order No. 77 dated 4 March 
1999 is hereby repealed. All other laws, decrees, executive orders, rules and 
regulations, or parts thereof inconsistent with or contrary to the provisions of 
this Act are hereby repealed or modified accordingly. 
SEC. 18. Separability Clause. I f  any part or provision of this Act is 
held unconstitutional or invalid, other parts or provisions thereof which are 
not affected shall continue to be in full force and effect. 
SEC. 19. Effectivity, This Act shall take effect fifteen (15) days after 
its full and complete publication in the Official Gazette or in at least two [ 2 ]  
newspapers of general circulation, whichever comes first. 
Approved, 
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