Q.2SEP

Republic of the Philippines
House of Representatives
Quezon City

SIXTEEN CONGRESS

HOUSE BILL NO.. 4937

A 3 EM,

ny

Introduced by Hon. Maria Jocelyn “Joy” Valera-Bernos

EXPLANATORY NOTE

The Abra River is a Philippine river found in the province of Abra a landlocked
province of the Philippines in the Cordillera Administrative Region with its capital town
Bangued. It passes through the Mountain Province and Ilocos Sur as well as its
namesake province, Abra. One of the 5 largest rivers in the Philippines, the Abra River
has a vast river basin which is known to be the 6 largest in the Philippines. It is known
for being the habitat of a unique species, the Abra River eel. The river flows during the
rainy season, feeding a number of tributaries in the plains and valleys of Abra.
However, during the summer, the riverbed drives up, exposing its extremely rugged and
rocky gravel bottom. The Abra River originates from Mt. Data and flows to the west
down to Cervantes, Ilocos Sur, then on to Abra. The Tineg River, which originates from
the highlands of Abra, joins it in Abra province, The Abra River passes through Ilocos
Sur once more then flows into the South China Sea.

The key strategies for an effective Abra River Basin development and
management is based on the guiding principles and practices of Ecological
Sustainability; Social and cultural Sustainability; Economic Sustainability; Institutional
Sustainability and Political Sustainability,

On Ecological sustainability, recent analyses of the river's water have shown the
river to possess dangerous levels of pollution, making the water unsafe for domestic
use, In the past the Abra River was rich in aquatic resources, which were tapped by the
people in the three provinces it passes through. However, the river has in recent years
grown far too polluted to support aquatic life and provide water safe for human use due
to the effects of industrialization, population growth, urbanization, deforestation,
modern agricultural practices, and mining. Chemical analyses of the water of the Abra
River conducted by scientist from Saint Louis University (SLU) College of Engineering's
‘Applied Research and Development Studies and Department of Preventive and
Community Medicine from the University of the Philippines Department of Biology have
shown dangerously high levels of substances that are hazardous to humans. High levels
of various toxic materials, including nitrates, heavy metals, and cyanides, have been

014


found in chemical analyses of the river water conducted from 2004 to 2007. The
nitrates in all probability originated from fertilizers, domestic and industrial chemical
agents, and animal waste. The heavy metals found in the water include lead, mercury,
and chromium. ‘hey are present in excessive amounts, much higher than the
acceptable percentage, and probably came from industrial waste. Cyanide, also found in
concentrations that exceed the acceptable limits, most likely came from gold mines as it
is commonly used to separate gold from ore. The toxic chemical cannot be broken down
by sunlight and oxygen as it normally is, since the water lacks dissolved oxygen. This
lack, combined with the presence of toxic chemicals in the water, has rendered the river
unable to support aquatic life, So it is now in this regard that the environment, the land
and the water resource base should be preserved for future generations though the
Abra River Basin Development Authority. Water and watershed resources planning,
development and management need to provide for the maintenance and enhancement
of essential ecological processes, biological diversity and the natural resource base, A
comprehensive Abra River basin planning shall take into account environmental needs
and specifically carry out water balance, water allocation, water quality management
and shall consider specific provisions of adequate quality water for environment flows
in the Abra River. The Abra River Basin Authority shall ensure that the environmental
sustainability is just not addressed through required environmental assessment
analyses, but is an integral part of the basin project planning. The Abra River Authority
will work hand in hand with the National Government in controlling the equitable
allocation of water to the various users, in controlling the point and non-point sources
of pollution in creeks and rivers taking into account the assimilative capacity of such
water body and in preservation and management of the water/ inland fisheries, upland
forests marshes/wetlands, and other habitats,

On Social and Cultural Sustainability, the utilization and development of water
and watersheds resources should be undertaken in the manner that will increase
people's control over their lives, should be compatible with the culture and values of the
people affected by it, it will maintain and strengthen community, identify and ensure
that the costs and benefits are shared equitably among communities and individual
households.

On Economic sustainability, the utilization and development of water and
watersheds natural resources should be undertaken in the manner that will be
economically efficient (cost-benefit theory) and which ensures that the resources are
used and managed in a way that retain their potential to support future generations. It
also means optimizing both tangible and intangible economic benefits for the greatest
possible number of people in the province of Abra while ensuring, as far as the needs of
sustainability of the Abra River Basin’s natural resources permits, that no one suffers
economic hardships.

On Institutional Sustainability, the Community based organizations, Non-
Government Organizations, Local Government units covered by the Abra River Basin
and the National Institutions responsible for conducting and supporting the planning,
implementation and monitoring of the aforementioned shall have the capability to
sustain the delivery of the services required from them.


On Political Sustainability, the Utilization and development of the Abra River
Basin should be made in the manner that is consistent with sound basic and strategic
policies for economic development and environmental protection and that will promote
balance between and among various beneficiaries.

Further, the province of Abra is profusely visited by several typhoons and heavy
rains, thus resulting to the flooding and inundation of its constituent municipalities. In
particular, the municipalities of Lagangilang, Bangued, Bucay, Pidigan and La Paz.are the
most commonly affected areas. Our people had already suffered for much too long
already and they live in constant fear, especially during rainy seasons, not only for their
farm produce, but for their lives. There had been projects constructing a flood control
system in some of the profound affected municipalities; however they are mostly
devastated sooner or later due to the excessive rain pour and with the consensus of the
different sectors of the community the establishment of the Abra River Basin Authority
will eventually and surely solve the present problem of the province.

Itis then prayed to the honourable tribunal of the 16% congress for the approval
of this bill.

N
RIA JOCELYN (7, HERNOS
Congresswofna

Abra

Lone District o1


Republic of the Philippines
House of Representatives
Quezon City

SIXTEEN CONGRESS

HOUSE BILL NO., 4937

Introduced by Hon. Maria Jocelyn “Joy” Valera-Bernos

AN ACT CREATING THE ABRA RIVER BASIN DEVELOPMENT AUTHORITY,
DEFINING ITS POWERS AND FUNCTIONS AND APPROPRIATING FUNDS THEREFOR:

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 Abra River Basin Development Authority Act of 2010,
SECTION 2. Declaration of Policy.-

It is hereby declared the policy of the State to promote and accelerate the
preservation, protection, development and balanced ecology of the Abra River Basin
and its tributaries, including its surrounding provinces, and municipalities, with in the
context of the national plans and policies for social and economic development.
Towards this end, the State shall focus its resources and capability to implement,
manage and oversee the necessary measures and programs on flood control and
drainage system in all the river systems in the region in order to eliminate the adverse
effects of typhoons and floods during rainy seasons on the lives and properties of
people residing along the area traversed by Abra River.

SECTION 3. Abra River Authority.-

There is hereby created a corporate body to be known as ABRA RIVER BASIN
DEVELOPMENT AUTHORITY, hereafter referred to as the “ABRA RIVER AUTHORITY”,
which shall be organized within on hundred (100) days after the approval of this act.

‘The ABra River Authority shall be under the supervision of the Office of the
President. All policies and programs, orders, rules and regulations promulgated, all
appointments made and all transactions entered by Abra River Authority shall be
subject to the approval of the President of the Philippines.


SECTION 4. Mandate.
The Abra River Authority shall exercise the following mandates;

a.) Prepare a master plan to preserve, protect and develop the Abra River and its
major tributaries which shall include the Sinalang River and Banaoang and other
rivers or river systems within the territorial jurisdiction of the Abra River
Authority;

b,) Conduct engineering surveys of the major rivers and river systems, assess and
monitor water quality, pinpoint pollution sources and identify the rivers that need
to be developed for exploitation or rehabilitation;

¢.) Plan, program, finance and undertake infrastructure projects such us river, flood
and tidal control, waste and sewerage system, water supply, roads, port,
irrigation, housing and related public works which are required within the context
of its development plans and programs, including readjustment, relocation or
resettlement of population as may be deemed necessary and beneficial by the
Abra River Authority;

4) Initiate and facilitate planning, implementation, monitoring and evaluation of
pertinent projects with positive impact of environment and development,
including dredging, widening and deepening of river channels and improvement
of river alignment, revetments, construction of dams and reforestation;

e.) Prioritize rivers positively identified for development and rehabilitation and
prepare a river-specific plan of operation for the development, rehabilitation and
general improvement of environmentally degraded rivers;

f) Initiate funding arrangements with local and foreign donors, including fund
raising, to finance priority development projects and provide direct funding of
minor initiatives expected to create a positive impact on the environment and the
projected area;

g.) Recommend to proper agencies offering financial support, technical and physical
assistance about the level of priority to be accorded to river system development
and rehabilitation projects;

h,) Coordinate and integrate such projects or operations of local governments,
government agencies, public corporations and where clearly necessary and
feasible, those of private entities, as will bear directly upon the plans and
activities of Abra River Authority so as to make possible the accelerated and
intensive development and rehabilitation of the rivers and river systems within
the context of the master plan and to set up a compact and well-trained staff for
effective liaison and consultation or joint planning and implementation with such
government and public entities;

i) Investigate, identify natural washes and gullies, study the lay of the land,
improve, construct and administer all flood control and drainage systems in the
areas covered;


j.) Investigate and identify available and possible water resources for the purpose of
utilizing the same and implement the acquisition thereof.

k.) Set the minimum depth and slope and standard of flood control and drainage
systems so that water reach their natural outfalls, and

1.) Plan, design, and construct the necessary flood control and drainage systems for
the next twenty (20) years following the approval of this act.

SECTION 5. Powers and Functions.-
‘The Abra River Authority shall exercise the following powers and functions:

a.) Cause, oversee, coordinate and monitor the implementation of, and periodically
update the master plan to preserve, protect, develop and exploit the physical and
natural resources of the Abra River and its major tributaries and areas along such
rivers and tributaries;

b.) Exercise supervision, control and regulation over the implementation of the
infrastructure projects such as river, flood and tidal control, waste water and
sewerage system, water supply, roads, port, irrigation, housing and related public
works within its master plans and programs;

©.) Exercise the right of eminent domain whenever the Commission deems it
necessary to attain the mandate under this Act;

d.) Enter into contracts of any kind and description to enable it to carry its mandate
and functions;

e.) Acquire, buy, purchase, Hold or lease, such personal and real properties as it
deems necessary or convenient in the transaction of the business or in carrying out
its mandate and to lease, mortgage, sell, alienate or otherwise encumber or dispose
of any personal and real property held by the Abra River Authority;

£.) Sue and sued in its corporate name;

g,) Borrow funds from any local or foreign financial institutions, independent of the
bonds it may issue or may continue to issue to carry out the purposes of the Abra
River Authority under this Act;

h.) Collect from the users drainage system such fees as may be necessary to finance
the continuous operation and reimburse within a period of less than twenty five
(25) years the cost of construction thereof;

i.) Report annually to the President and the Congress of the Philippines of its
activities including those in collaboration with the various government and private
entities engaged in the implementation of the projects and programs. ‘The report
shall include, among others, a comparison of the developmental and rehabilitation


targets as set for the year ending, the extent to which actual accomplishments
measure up to such targets and the appropriate administrative and legislative
recommendations; and

j.) Perform such functions as may be necessary to carry out the provisions of this
Act.

SECTION 6, Principal Office.-

‘The Abra River Authority shall have its principal office in Bangued, Abra but it may
have branch offices in such other places within the territorial jurisdiction of the Abra River
Authority as are necessary for the proper conduct of its business.

SECTION 7. Territorial Jurisdiction.-

‘The territorial jurisdiction of the Abra River Authority shall include the Abra River,
‘Tineg River and its tributaries and areas adjacent to them in the province of Abra and Ilocos
Sur.

SECTION 8 Board of Directors.-

‘The duties and functions of the Abra River authority shall be directed, its properties
managed and preserved and its corporate powers exercised, unless otherwise provided in this,
‘Act, any a Board of directors which shall be composed of the following

a.) Secretary of Public Works and Highways;

b.) Director-general of the National Economic Development Authority;
c.) Secretary of the Environment and Natural Resources;
d,) Secretary of Agriculture;

¢.) Secretary of the Interior and Local Government;

£) Secretary of Finance;

g,) Secretary of Tourism;

h,) Administrator of the National Irrigation Administration;
i.) Representative from the private sector;

j.). Representative of the Lone District of Abra;

.) Provincial Governor of Abra;

The board of Directors shall elect from among themselves a chairman and a vice
chairman.

The representative of the private sector shall be appointed by the president of the
Philippines from among the list of recommended to be submitted by the private sector.

The officials next in rank to the above-mentioned members shall serve as permanent
alternate members and shall attend meetings of the Board in the absence of their principals
and shall receive the corresponding per diems.

‘The representative of the private sector shall be a Filipino Citizen, of good moral
character, and with recognized competence in the field of public administration or directly
related to waterworks management and engineering or allied services.


The members of the board shall reimburse the Abra River Authority for actual expenses,
including travelling and subsistence, incurred by them in the performance of their duties.

No member of the Board shall have financial or pecuniary interest, directly or indirectly,
in the business contract or transaction entered into by the Abra or in any privileged granted
by it. Neither shall any member have any interest, financial or otherwise, in any undertaking
or business with an inherent conflict of interest with the Abra River Authority.

SE

TION 9. Powers and Duties of the Board of Directors.«
‘The Board of Directors shall exercise the following powers and duties:

a.) Formulate, prescribe, amend and repeal rules and regulations to govern the
conduct and operation of Abra River Authority;

b.) Provide comprehensive policy guidance for the preservation, protection and
development of its other tributaries as provided under this Act.

c.) Decide the objectives, strategies and policies to be followed by the Abra River
Authority;

d.) Ensure that the Abra River Authority performs its functions in a proper, efficient
and effective manner;

e.) Determine the organizational structure of the Abra River Authority, establish a
human resources management system based on merit and fitness, and adopt a
rational compensation and benefit scheme;

£) Suspend, remove or otherwise discipline for just cause any staff member
appointed by the Board;

¢,) Approve the annual and supplementary budgets for submission to the Congress of
the Philippines

h,) Submit an annual report to the President of the Philippines; and

i.) Perform such other functions as may be necessary to carry out the purpose of this
act

SE

TION 10, Meetings.-

‘The board shall meet regularly once a month and may hold special meetings to
consider urgent matters upon call of the Chairman or any of its three (3) members. The
majority of the Board shall constitute a quorum and the decisions of the board shall require
the concurrence of at least five (5) members. ‘The internal rules of procedures in the conduct
of Board meetings shall be prescribed by the Board.


SECTION 11. Administrator.-

The Abra River Authority shall be headed by an administrator who shall be the chief
executive officer (CEO) of the Abra River Authority and shall be responsible for the general
administration and management of the agency. The administrator must be a natural born:
citizen of the Philippines, at least forty five (45) years of age, with at least ten (10) years’
experience in the field of public administration or the management of agricultural, industrial
or commercial enterprises and a recognized authority on flood control and drainage or related
fields.

‘The Administrator shall be appointed by the President of the Philippines upon the
recommendation of the Board for a term three (3) years unless earlier removed for cause by
the President.

For purposes of law enforcement, functions the Administrator are deemed a person in
authority. All subordinate officials and personnel are deemed agents of person authority,

SECTION 12. Powers and Functions of the Administrator.-
‘The administrator shall exercise the following powers and functions:

a.) Execute, administer and implement the objectives, policies and programs of the Abra
River Authority and enforce decisions, orders, rules and regulation approved or
prescribed by the Board of Directors.

b,) Prepare the Agenda for the meeting of the Board and submit for consideration thereof
the policies and measures which he believes necessary to carry out the provisions of
this act;

¢.) Direct and supervise the operation and internal administration of the Abra River
Authority. The administrator may delegate certain administrative responsibilities to
other officers of the Abra River Authority subject to the rules and regulations of the
Board; and

4d.) Exercise such other powers as may be directed by the Board.
SECTION 13. Compensation.-

‘The Administrator shall receive a compensation to be determined by the Board which
shall be charged against the annual appropriation of the Abra River Authority. The Board of
Directors shall provide the per diems and allowances of the Administrator,

SECTION 14, Residence.-

‘The Administrator shall establish his residence within the territorial jurisdiction of the

Abra River Authority, The Administrator shall not, during his term of office, engage in any

business or profession other than those connected in the performance of his official duties as
Administrator.


SECTION 15. Administrative Staff.-

The activities of the Abra River Authority shall be carried under the supervision and
control of the Administrator through the following administrative officials:

a.) An Assistant who shall be appointed by the President of the Republic of the
Philippines upon the recommendation of the Board. He shall exercise such powers,
duties and functions that may be delegated by the administrator and shall act as
Administrator in the absence of or during the temporary incapacity of or until such
time a new Administrator is duly appointed;

b,) An Administrative Officer who shall be responsible for providing services related to
personnel, training, information, records, supplies, general services, equipment and
security;

©.) A planning and Management Development Officer who shall be responsible for
providing services to planning, programing, statistics and project development,

d.) A Budget and Finance Officer who shall be responsible for providing staff advice and
assistance on budgetary matters and safekeeping of corporate assets;

¢,) A Legal Officer who shall represent the Abra River Authority in legal actions and
proceedings;

f.) An Engineering and Construction Officer who shall be responsible for providing
services related to detailed engineering plans and construction and maintenance of
projects and facilities; and

g,) An information Officer who shall take charge of re-orientation and education of
personnel and the communities living along the river banks.

SECTION 16, Structure, Staffing, and Pay Scale.-

The Board of Directors of Abra River Authorities shall determine the organizational
structure and staffing pattern of Abra River Authority and pay scales of the officers and
employees thereof conforming to that of existing government-owned or controlled
corporations and subject to the evaluation and screening by the Civil Service Commission
and the Organization Position Classification and Compensation Bureau of the Department of
Budget and Management. The Board may recognize said structure, modify such pattern, or
alter the same scale and create or abolish division, sections or units and any of its
subsidiaries.

SECTION 17. Merit System.-

All officials, agents and employees of the Abra River Authorities shall be selected and
appointed on the basis of merit and fitness in accordance with a comprehensive and
progressive merit system to be established by the Abra River Authority immediately upon its
organization, The recruitment transfer promotion and dismissal of all its personnel including
temporary workers shall be govern by such merit system.


SECTION 18. Appointment by the Board.-

The administrative officers and employees shall be appointed by the Board upon the
recommendation of the administrator.

SECTION 19, Authorized Capital Stock.-

‘The authorized capital stock of the Abra River Authority shall be Four Hundred
Million Pesos (P400,000,000.00) divide into 2,000,000 shares with P200 par value each:
provided, that the ninety percent (90%) of the Authorized capital shall be fully subscribed by
the National Government to be appropriated out of the funds of the National Treasury not
otherwise appropriated of which at least fifly percent (50%) shall have been fully paid
Provided, that ten percent (10%) thereof shall be subscribed and paid by the Provincial
Government of Abra

SECTION 20, Operating Expenses.

For the operating expenses of the Abra River Authority, the sum of twenty five
million pesos (P 25,000,000.00) is hereby authorized to be appropriated annually for two (2)
years, Thereafter, the Board of Directors shall appropriate out of the funds of the Abra River
‘Authority such sums as may be needed for its operating expenses.

SECTION 21, Tax Exemption.-

‘Abra River Basin Development Authority shall be exempt from the payment of
income taxes, franchise taxes, realty taxes and all kinds of taxes and licenses of the
instrumentalities: Provide that its subsidiary corporations shall be subject to all said taxes five
(5) years after their establishment. Such exemption shall include any tax or fee 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 Abra River Authority both as to principal and
interests,

‘The importation of machinery, equipment, materials and supplies by the Abra River
Auhtority paid from the proceeds of any loan, credit and indebtedness incurred under this act
shall be exempt from all taxes, fees, imposts, other charges and restrictions imposed by the
government of the Republic of the Philippines or any of its agencies and political
subdivisions.

SECTION 22. Audit.-

‘The Chairman of the Commission and Audit shall appoint a representative who shall
be the resident auditor of the Abra River Authority. He shall likewise appoint the necessary
personnel to assist said representative in the performance of his duties. The salaries of the
auditor and his staff shall be fixed by the Chairman of the Commission and Audit, The
salaries and expenses for the Auditor’s Office shall be included in the Budget of the
Commission on Audit, The Auditor of the Abra River Authority and personnel under him
may be removed only for cause for the chairman of the Commission on Audit.


SECTION 23. Annual Audit Report.-

An Annual Audit Report shall be submitted by the Commission on Audit to the Board
of Directors of the Abra River Authority and copies thereof shall be furnished to the
President of the Philippines, The report shall set forth the scope of the audit and shall include
the statement of assets and liabilities, capital and surplus or deficit; a statement and surplus or
deficit analysis; statement of income and expenses; a statement of sources and application of
funds; and such comments and information as maybe necessary,. Together with such
recommendations with respect thereto as maybe advisable, including a report of any
impairment of capital noted in the audit. The report shall also show specifically any program,
expenditures or other financial transaction or undertaking observed in the course of audit,
which in the opinion of the auditor, has been carried out or made without authority of Law.

SECTION 24. Applicability of the Corporation Code.-

The provision of the Corporation Code, as amended, insofar as they are not
inconsistent with this act, shall be applicable to the Abra River Development Authority.

SECTION 25. Repealing Clause.-

All Laws, decrees, executive orders, rules and regulations and issuances, or parts
thereof, inconsistent with the provisions of this act, are hereby repealed accordingly.

SECTION 26. Separability Clause.-

If any part or provision of this act is declared unconstitutional, other parts or
provisions hereof which are not affected thereby shall continue to be in full force and effect.

SECTION 27. Effectivity.-

This act shall take effect upon approval.