EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
^Cildle 
•( H)r IkrcrrMiT
•If 
SEP 11 P 3 :12
SENATE
RECEIVED B>;
Introduced by SENATOR IMEE R. MARCOS
AN ACT
CREATING THE MEGA CEBU DEVELOPMENT AUTHORITY, 
PRESCRIBING ITS FUCTIONS AND DUTIES, AND PROVIDING
FUNDS THEREFOR
EXPLANATORY NOTE
Article X, Section 13 of the 1987 Constitution affirms the State's support for 
local government units to group themselves and to consolidate and coordinate 
their efforts, services and resources for purposes beneficial to them and in 
accordance with law.
Further, Section 14 of the same article in the Constitution mandates the 
President to provide for regional development councils or other similar bodies 
composed of local government officials, regional heads of departments and other 
similar bodies composed of local government officials, regional heads of 
departments and other offices, and representatives from non-government 
organizations within the region for purposes of administrative decentralization in 
order to strengthen the autonomy of units therein and to accelerate the economic 
and social development of the units in the region.
Pursuant to the abovementioned provisions in the Constitution, various local 
government units, non-government organizations, and members of private sectors 
in Cebu have long been clamoring to establish an inter-local and private sector


collaboration in order to achieve a "Wholesome, Advanced, Vibrant, Equitable, and 
Sustainable (W.A.V.E.S.) Cebu where the efforts of all the sectors can be aligned 
with the development strategy of competitiveness, livability, mobility and 
metropolitan management as well as the implementation of a roadmap for 
sustainable urban development.
This vision can be materialized through the creation of the Mega Cebu 
Development Authority (MCDA), an agency that can initiate efforts, provide 
services, and coordinate policies, plans, programs, and projects with the concerned 
local government units, national government agencies, government-owned and 
controlled corporations, the private sector as well as the civil society, and 
constituent communities with regard to the development and promotion of shared 
assets and resources. Tbrough the MCDA, transboundary issues and challenges in 
the whole of Cebu can also be addressed in a more centralized manner, an 
approach that is relevant in order to better attend to the rapidly growing metropolis 
that is Cebu.
In support of the Mega Cebu Vision, this bill thus aims to create the MCDA 
wherein stakeholders of highly urbanized cities of Cebu, Mandaue, and Lapu-Lapu, 
the component cities of Danao, Talisay, Naga, and Carcar, and the municipalities 
of Consolacion, Liloan, Compostela, Cordova, Minglanilla, and San Fernando 
comprising the Metropolitan Cebu area, the surrounding cities and towns in the 
province of Cebu, the civil society, and the private sector organizations can work 
side-by-side in order to create a unified body moving towards a common goal -  a 
W.A.V.E.S. Cebu in 2050.
Thus, the passage of this bill is earnestly sought.
tt
lEE R. MARCOS


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. B. No. 
- lu o
1037
&enat*:
of t{)f Ifcrcrftarp
RECEtVi.DBV:
Introduced by SENATOR IMEE R. MARCOS
AN ACT
CREATING THE MEGA CEBU DEVELOPMENT AUTHORITY, 
PRESCRIBING ITS FUCTIONS AND DUTIES, AND PROVIDING
FUNDS THEREFOR
Be it enacted by the Senate and the House o f Representatives o f the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the "Mega Cebu
2 
Development Authority Act."
3 
SEC. 2. Declaration o f Policy. - It is hereby the declared policy of the State
4 
to promote and accelerate the sustainable development and balanced growth of the
5 
Province of Cebu and the highly urbanized cities of Cebu, Mandaue, and Lapu-lapu,
6 
within the context of national policies for economic, social, and environmental well-
7 
being.
8 
It is likewise hereby declared to be the policy of the State to treat Metropolitan
9 
Cebu and the Province of Cebu as a special development and administrative area
10 
where certain policies, programs, and services affecting or involving the
11 
Metropolitan Cebu area and the Province of Cebu, on a metro-wide or multi-local
12 
government unit (LGU) level, are more efficiently and effectively planned,
13 
supervised, implemented, and coordinated by a development authority as created
14 
herein, without prejudice to the autonomy of the affected LGUs.


1 
Pursuant to these national policies, the following aspirations and principles are
2 
hereby declared:
3 
(a) to recognize a more institutionalized approach to metropolitan or multi-
4 
LGU integrated development planning that is expertise-supported and
5 
evidence-based, participatory, responsible, accountable, and necessary for all
6 
or part of its community.
7 
(b) to foster cooperative relations between and among the metropolitan area
8 
and surrounding cities and towns in order to efficiently and effectively sustain
9 
efforts to meet the needs, promote and develop shared assets and resources,
10 
and provide services that transcend geopolitical municipal and city boundaries
11 
without prejudice to the autonomy of the affected LGUs;
12 
(c) to ensure active participation by the private, business, and civil society
13 
sectors in the governance, planning, implementation, monitoring and
14 
evaluation of plans, policies, standards, programs, projects, and services; and,
15 
(d) to implement a national government-approved Metropolitan Cebu
16 
Roadmap and other subsequent and related metro-wide or multi-LGU
17 
roadmaps and plans that ensure long-term, sustainable, and continuing
18 
directions, 
priorities, and programs for and by the constituent local and
19 
national government agencies and units, and private, business, and civil
20 
society sectors.
21 
SEC. 3. Definition o f Terms. -  As used in this Act:
22 
(a) Business Sector -  refers to for-profit and commercial enterprises or
23 
businesses and business associations and coalitions; cross-industry, multi-
24 
issue groups; cross-industry, issue-specific initiatives; industry-focused
25 
initiative; including corporate philanthropic foundations.
26
27 
(b) Private Sector -  refers to entities of the economy that are owned by private
28 
citizens and not by the State, including those enterprises created either for
29 
profit or for non-profit and households.


1 
(c) Metropolitan Cebu Area or Metro Cebu -  refers to the highly urbanized
2 
cities of Cebu, Mandaue, and Lapu-Lapu, the cities of Danao, Talisay,
3 
Naga, and Carcar, and the municipalities of Consolacion, Liloan,
4 
Compostela, Cordova, Mingalanilla, and San Fernando, all in the Province
5 
of Cebu.
6 
(d) Mega Cebu -  refers to the platform for inter-local cooperation, public-
7 
private 
sector 
partnership, 
and 
local-regional-national-integration
8 
promoting the "big picture perspective", i.e. long-term, multi-LGU, metro-
9 
wide, and advancing collaborative planning ad action on shared assets
10 
and common trans-boundary concerns towards a sustainable, smart, and
11 
inclusive Cebu. It is anchored on and considers the island-wide or larger
12 
provincial area or whole of Cebu, and regional area or Visayas context,
13 
while starting out its on-ground engagement and intervention at the
14 
Metropolitan Cebu level. Conceptually, thus. Mega Cebu is larger than
15 
Metro Cebu and considers the population of the entire 'province' or
16 
'islands' of Cebu in the year 2050, which is projected to reach more than
17 
Ten (10) Million, the technical definition of a mega population being Ten
18 
million or more.
19 
(e) Metropolitan Cebu Roadmap refers to the "Roadmap Study for Sustainable
20 
Urban Development in Metro Cebu" that was commissioned and
21 
subsequently adopted by the Metro Cebu Development and Coordinating
22 
Board (MCDCB), was funded by the Government of Japan, and completed
23 
by a team from the Japan International Cooperation Agency (JICA).
24 
SEC. 4. Creation o f the Mega Cebu Development Authority. - There is
25 
hereby created a special body to be known as the Mega Cebu Development
26 
Authority, hereinafter referred to as "MCDA" or "Authority", which shall be organized
27 
within thirty (30) days after the approval of this Act, to coordinate and promote
28 
socio-economic growth and sustainable development within Metro Cebu and the
29 
Province of Cebu.
30 
The MCDA shall execute the powers and functions herein vested which shall,
31 
however, in no way diminish the autonomy of the LGUs in the Metropolitan Cebu


1 
area and the Province of Cebu concerning purely local matters within the framework
2 
and subject to the mandate and limitations of the Philippine Constitution, pertinent
3 
provisions of the Local Government Code, and Section 5 hereof.
4 
SEC. 5. Constitution and Jurisdiction o f the Mega Cebu Development
5 
Authority. - For the purposes of this Act, the MCDA shall comprise the core
6 
metropolitan area embracing the highly urbanized cities of Cebu, Mandaue, and
7 
conferred by this Act, determined in accordance with the procedures and
8 
requirements to be outlined in its implementing rules and regulations.
9 
SEC. 6. Functions o f the Mega Cebu Development Authority. - Subject
10 
to the approval of the LGUs concerned, the Authority shall primarily exercise the
11 
following functions and services:
12 
(a) Formulate, coordinate, regulate and monitor the short, medium, and
13 
long-term plans, policies, and programs for the sustainable development and
14 
integration of the Metropolitan Cebu area and the Province of Cebu, including
15 
investment programs for the delivery of multi-LGU or Metropolitan Cebu and
16 
the Province of Cebu services, land use, spatial, and physical development
17 
using strong, coherent governing values and shared vision, with focus on
18 
integrated systems for urban development;
19 
(b) Render services that have multi-LGU or metropolitan wide coverage and
20 
impact, transcending local geopolitical boundaries or entailing substantial
21 
expenditures including, but not limited to: integrated and infrastructure
22 
development and planning; transport and traffic management; solid waste
23 
disposal and management; water, septage, sewerage and storm water
24 
management; and disaster risk reduction and management;
25 
(c) Ensure that plans, policies, programs and services are pursued for the
26 
purpose of realizing the Mega Cebu 2050 Vision of a Wholesome, Advanced,
27 
Vibrant, Equitable, and Sustainable (W.A.V.E.S.) Cebu, executing the Mega
28 
Cebu development strategy of competitiveness, livability, mobility, and
29 
metropolitan 
management and 
implementing the 
Metropolitan 
Cebu


1 
Roadmap, which are hereby adopted, and other subsequent and related
2 
roadmaps for Metro Cebu and the Province of Cebu;
3 
(d) Ensure continuing research, evaluation, and monitoring to enhance
4 
plans, policies, programs, services, and efforts to anticipate or respond to the
5 
dynamic and changing realities and needs of metropolitan development; and
6 
(e) Perform other related functions required to achieve the Mega Cebu 2050
7 
Vision and the objectives of the MCDA, including the undertaking of delivery
8 
of services to the LCDs, when deemed necessary and subject to prior
9 
coordination and consent of the LGU concerned.
10 
SEC. 7. Scope o f Services o f the Mega Cebu Development Authority. -
11 
In coordination with appropriate government units and agencies and relevant
12 
private sector organizations, the scope of the services of the MCDA shall include:
13 
(a) Spatial and integrated planning and infrastructure planning and
14 
development, 
which 
includes 
the 
formulation, 
adoption, 
and
15 
implementation of plans, policies, programs, projects, standards, rules,
16 
and regulations to rationalize and optimize land use; conserve and
17 
protect natural resources, provide direction to urban growth and
18 
expansion within the context of smart, connected, compact and
19 
sustainable growth; and the provision of necessary services;
20 
(b) Transport and traffic management, which includes the formulation,
21 
coordination, and monitoring of policies, standards, plans, programs and
22 
projects, including its implementation and its integration with land use,
23 
rationalization of the existing transport operations, infrastructure
24 
requirements, and use of thoroughfares; promotion of safe and
25 
convenient movement of persons and goods; provision for and
26 
maintenance of mass transport system, road infrastructure, and
27 
institution 
of a 
people-centered 
network of mobility, 
including
28 
pedestrianization and non-motorized forms of transport, as well as a
29 
system 
to 
regulate 
road 
users; 
and 
the 
administration 
and
30 
implementation of traffic enforcement operations, traffic engineering


1 
services, and traffic education programs, including the institution of a
2 
single ticketing system;
3 
(c) Solid 
waste 
management, 
which 
includes the formulation 
and
4 
implementation of policies, standards, plans, programs, and projects for
5 
proper and sanitary waste disposal; the establishment and operation of
6 
sanitary landfill and related facilities; the establishment and operation of
7 
alternative waste management facilities; and the implementation of
8 
appropriate programs, projects, and services intended to manage,
9 
dispose, reduce, reuse, and recycle solid waste;
10 
(d) Water, septage and sewerage, and storm water management, which
11 
includes the formulation and implementation of policies, standards,
12 
plans, programs, and projects for water supply and water resources
13 
management; integrated storm water management, drainage and flood
14 
control; and septage and sewerage management system; and
15 
(e) Disaster risk reduction and management, which includes the formulation
16 
and implementation of plans, programs, projects, policies, standards,
17 
and procedures to achieve public safety, especially preparedness for
18 
preventive or rescue operations during times of calamities and disasters;
19 
management of information; coordination and mobilization of resources;
20 
and recovery, rehabilitation, and relief operations.
21 
SEC. 8. Composition o f the Mega Cebu Development Board (MCDB). -
22 
The governing and policy setting powers of the MCDA shall be vested in and
23 
exercised by the Mega Cebu Development Board, hereinafter referred to as MCDB
24 
or Board, which shall be composed of fifteen (15) ex-officio members and six (6)
25 
regular members, as follows:
26 
(a) Governor of the Province of Cebu, ex-officio;
27 
(b) Mayors of the seven (7) cities of Metro Cebu, ex-officio;
28 
(c) Mayors of the six (6) municipalities of Metro Cebu, ex-officio;
29 
(d) President of the League of Municipalities of Cebu, ex-officio;


1 
(e) Five (5) regular members from the private sector: three (3) from the
2 
business sector and two (2) from the general public; and
3 
(f) The General Manager of the Authority, to be appointed by majority vote
4 
of the ex-officio members and regular members of the Board, who shall
5 
be the sixth private sector representative in the Board, and shall serve
6 
as the Chief Operating Officer of the MCDA.
7 
The officers of the MCDB shall consist of one (1) Chairperson; one (1) co-
8 
Chairperson representing the public sector and one (1) Co-Chairperson representing
9 
the private sector. The Chairperson and the Co-Chairperson representing the public
10 
sector shall be elected by majority vote of the Governor of the Province of Cebu and
11 
the seven (7) mayors of the cities of Metro Cebu from among themselves. The co-
12 
chairperson representing the private sector shall be elected by the five (5) regular
13 
members representing the private sector.
14 
All regular members of the MCDB including the General Manager must have
15 
been residents of the cities of Cebu or Province of Cebu for at least three (3) years
16 
preceding their appointment. They shall serve for a term of one (1) year until their
17 
re-election or successors shall have been elected, unless sooner removed for cause.
18 
In case of removal of a member for cause, the replacement shall only serve the
19 
unexpired portion of the term.
20 
Each member, ex officio or regular, shall have equal voting rights and shall
21 
participate during the deliberations of the regular and special meetings of the MCDB:
22 
Provided, That eleven (11) members of the MCDB shall constitute a quorum for the
23 
conduct of regular and special meetings: Provided, further. That the implementation
24 
of plans, projects, and activities affecting a particular LGU must have the affirmative
25 
vote of the Mayor of the concerned LGU.
26 
SEC. 9. Functions o f the Mega Cebu Development Board. - Subject to the
27 
approval of the LGUs concerned, the MCDB shall perform the following functions
28 
and powers:
29 
(a) Adopt and approve rules and regulations to govern the conduct of
30 
business of the Board;


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
1
(b) Approve the multi-LGU or metropolitan-wide short, medium, and long 
term development plans, policies, and programs, and such projects 
developed and packaged by its Research, Program, and Organizational 
Development- Technical, Operations, and Planning Office (RPOD-TOPO), 
the various committees, and respective project management offices;
(c) Promulgate policies and standards for metropolitan-wide application 
governing the delivery of services, prescription and collection of service 
and regulatory fees, and the imposition and collection of fines and 
penalties, including the assessment and collection of contributions, fees, 
and charges for the operation of the MCDA or use of its facilities or 
services, as may be deemed necessary and proper;
(d) Approve the organizational structure of the Authority and, as endorsed 
by the General Manager, confirm or define the duties and responsibilities 
of all officers and employees, including the appointment of key officials 
of the Authority, and fix the compensation and benefits of officers and 
personnel, including the granting of incentives;
(e) Create a Conflict Management Committee (CMC) to address any 
controversy primarily between and among members from the LGUs, 
national government agencies, private and business sectors, and civil 
society. The CMC shall enjoin parties to settle the dispute through 
dialogue. If a settlement is not reached, any unresolved controversy 
shall be settled thru mediation and arbitration by the CMC. Any of the 
parties may appeal the CMC resolution to the Board, whose decision shall 
be final and executory.
(f) Appoint or remove the General Manager, Assistant General Managers, 
or the heads of the different offices, in accordance with law;
(g) 
Incorporate and endorse the plans, policies, programs, and projects 
formulated by LGUs and other public sector agencies, including those 
areas and services which were not included in the Metropolitan Cebu 
Roadmap, after proper consultation and coordination;


1 
(h) Submit to the National Economic Development Authority (NEDA) Board
2 
its plans, programs, projects, and activities to enable adoption,
3 
endorsement, approval, integration, or progressive roll out of integrated
4 
and system-wide plans, programs, projects, and spatial urban and rural
5 
design decisions;
6 
(i) 
Form, establish, organize, and maintain offices or service units to provide
7 
multi-LGU or metropolitan wide services, in accordance with relevant
8 
Philippine laws;
9 
(j) 
Enter into contract and own properties; receive funding, payments,
10 
grants, contributions, and donations; sue and be sued in order to carry
11 
out its duties and functions as provided for in this Act;
12 
(k) Establish a conflict management committee to address conflicts to which
13 
all entities or individuals will resort to, at the first instance;
14 
(I) 
Perform any and all related acts to carry out its mandate and perform
15 
its objectives, including the undertaking of delivery of services to the
16 
LGU concerned;
17 
(m) Adopt, alter, and use a corporate seal; and,
18 
(n) Carry out the purposes and provisions of this Charter.
19 
SEC. 10. Creation o f the Office o f the MCDA General Manager. - There
20 
is hereby created the Office of the MCDA General Manager, to be headed by the
21 
General Manager and vested with executive powers to manage the affairs and
22 
further the purposes of the MCDA.
23 
SEC. 11. Functions o f the Genera! Manager. - The General Manager of
24 
the MCDA shall have the following functions:
25 
(a) Formulate, prescribe, amend, and endorse rules and regulations to
26 
govern the conduct of the Office of the General Manager;
27 
(b) Endorse to the MCDB for approval, the creation and organization of the
28 
Institutional Development Office (IDO), Public Service Offices (PSOs),


1 
and other offices as may be necessary to fulfil the mandate of the
2 
Authority;
3 
(c) Identify, select, appoint, suspend, remove, or discipline the officers and
4 
personnel below the positions of Assistant General Managers and the
5 
managers or heads of offices or services, subject to approval by the
6 
MCDB;
7 
(d) Indorse for approval of the Board, the compensation, benefits, and
8 
incentives of key officials and other staff of the MCDA who will perform
9 
the following: finance and administration, to include human resources
10 
management, audit, legal, reputation and risk management, and
11 
information technology (IT); research and knowledge management, to
12 
include monitoring and evaluation, education, communications, and
13 
stakeholder relations; planning, development, and technical support,
14 
to include project development; and operations and services, to include
15 
project management and service delivery;
16 
(e) Endorse to the MCDB the multi-LGU or metropolitan-wide short,
17 
medium, and long-term development plans and programs 
which
18 
includes the formulation and coordination of related activities in
19 
Metropolitan Cebu;
20 
(f) 
Endorse the annual and supplemental budgets of the Authority to the
21 
Board; and
22 
(g) Perform such other acts and assume such other functions as may be
23 
necessary to carry out the provisions of this Charter.
24 
SEC. 12. Creation o f Institu tio n a l Development Office. - There shall be
25 
created an Institutional Development Office (IDO) in the Office of the General
26 
Manager to provide support in the operations and implementation of the internal
27 
programs and requirements of the MCDA. The IDO shall oversee the various
28 
components, 
operations, 
and 
processes of MCDA such 
as: 
finance 
and
29 
administration, to include human resources management, audit, legal, reputation
10


1 
and risk management, and information technology (IT); research and knowledge
2 
management, to include monitoring and evaluation, education, communications,
3 
and stakeholder relations; planning, development, and technical support, to include
4 
project development; and operations and services, to include project management
5 
and service delivery.
6 
The head of the IDO, as Assistant General Manager, shall report directly to
7 
the General Manager.
8 
SEC. 13. Creation o f Public Service Offices. - There shall be created a
9 
Public Service Office (PSO) for each of the five (5) initial focal areas of MCDA, as
10 
follows: Integrated Development and Spatial Planning (IDSP); Transport and Traffic
11 
Management (TTM), Solid Waste Management (SVM); Water Supply Management,
12 
including septage and sewerage, and storm water management, (WSM); and
13 
Disaster Risk Reduction and Management (DRRM).
14 
Each PSO shall be headed by an Assistant General Manager, who shall report
15 
directly to the General Manager. National government agencies (NGAs), GOCCs,
16 
LGUs and other organizations mandated to provide services in these focal areas
17 
shall be invited to coordinate their programs and projects with the appropriate PSO.
18 
SEC. 14. Creation o f the Research,^ Program, and Organizational
19 
Development. - Technical, Operations, and Planning Office. - There shall be
20 
created a Research, Program and Organizational Development — Technical,
21 
Operations, and Planning Office (RPOD-TOPO) which is necessary to deliver the
22 
MCDA's mandate, provide support and management of its operations. The RPOD-
23 
TOPO shall serve as the coordinating and operations office and process facilitator
24 
for the Authority, providing finance and administration, research, knowledge
25 
management and planning expertise and services; technical support, operations,
26 
service delivery and project management as well as guidance to the Board, the
27 
General Manager, and other offices or services; facilitate the organization,
28 
integration, and complementation of the Authority's various functions, structures,
29 
plans, programs, projects and services; and provide secretariat support to the
30 
MCDB, other offices and services, and to keep a record and have custody of the
31 
proceedings of all sessions of the MCDB or meetings of the PSOs.
11


1 
The RPOD-TOPO shall be headed by an Assistant General Manager, supported
2 
by appropriate supervisory and other officers of the MCDA. The Assistant General
3 
Manager (AGM) for the RPOD-TOPO, appointed on the basis of defined competence
4 
and qualities, shall:
5 
(a) Assist in the administration of the MCDA and supervision of subordinate
6 
personnel:
7 
(b) Assist in the supervision of the operation of the various committees and
8 
offices of the MCDA;
9 
(c) Assist in the preparation and review of plans and programs of the MCDA
10 
for submission to and endorsement of the Executive Committee, and
11 
approval by the Board; and
12 
(d) Perform such other duties and functions as may be lawfully delegated or
13 
assigned from time to time.
14 
There shall be appointed managers for finance and administration; research
15 
and knowledge management; planning, development, and technical support; and
16 
operations and service delivery who shall be chosen based on academic
17 
qualifications, competence, and experience.
18 
These departments shall be staffed by appropriately qualified personnel with
19 
relevant academic backgrounds and work experiences consistent with the purpose,
20 
functions, requirements, and scope of the Authority.
21 
All employees of the MCDA shall be subject to periodic monitoring and
22 
evaluation.
23 
SEC. 15. In stitutio na l Linkages. - The MCDA shall establish institutional
24 
linkages and relations with appropriate government agencies and units and the
25 
private sector at the local, regional, national, and international levels concerning
26 
matters of import and relevance to Mega Cebu or the Metropolitan Cebu area.
27 
For this purpose and guided by rules and regulations, the MCDA shall carry out
28 
its functions in consultation and close coordination with the LGUs, government
29 
agencies, the private sector, and civil society organizations. To facilitate
12


1 
coordination and alignment, LGUs, NGAs, GOCCs and other relevant organizations
2 
shall submit their policies, plans and programs, and projects, particularly relating to
3 
the initial five (5) focal areas outlined in Section 7 hereof, that may affect or have
4 
an impact on the Mega Cebu or the Metropolitan Cebu area.
5 
The MCDA shall submit its development plans and investment programs to
6 
the National Economic and Development Authority (NEDA) for integration into the
7 
Medium-Term Philippine Development Plan (MTPDP) and public investment
8 
program.
9 
In the implementation of MCDA's plans and programs utilizing local, national,
10 
and other funds, which shall be undertaken either by the local government unit,
11 
national government agency, or other public and private sector organizations
12 
responsible for the delivery of such services, the MCDA may enter into contracts,
13 
memoranda of agreement and other cooperative arrangements with these entities
14 
for the delivery of the required services.
15 
The MCDA shall also coordinate and interface with foreign assistance and
16 
other agencies for the purpose of obtaining financing and technical support, and
17 
securing contributions, grants and donations from various sources to support its
18 
operations or undertake its programs and projects.
19 
SEC. 16, Appropriations and Financing. - For the organizational and
20 
operating expenses of the Authority, an initial fund of One Billion Pesos (PhP
21 
1,000,000,000.00) shall be appropriated by the National Government. Thereafter,
22 
the National Government shall allocate in the annual General Appropriations Act the
23 
funds needed by the MCDA for personnel, capital expenditures, maintenance and
24 
other operating expenses and for the continued implementation of this Act.
25 
The operations of the MCDA shall likewise be supported through financial
26 
contributions and technical assistance from member LGUs, NGAs, and GOCCs and
27 
the private sector, and other local and international organizations in the form of
28 
grants, donations, contributions, payments, penalties, fees and charges.
29 
The MCDA is likewise empowered to levy fines, and impose fees and charges
30 
for various services rendered.
13


1 
The MCDB shall undertake continuing negotiations among the member LGUs
2 
and GOCCs to commit annual financial contributions for the operations of the MCDA.
3 
SEC. 17. Use o f Income. - To carry out the purposes of this Act, the MCDA
4 
is hereby authorized, in addition to its allocation from the annual General
5 
Appropriations Act, revenues generated from various services rendered, and annual
6 
contributions from LGUs, to retain and utilize its income: Provided, That nothing
7 
herein shall be deemed to exempt the MCDA to the auditing requirements,
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standards, and procedures of existing laws.
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SEC. 18. Good Governance Clause. - The MCDA adheres to the principles
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of good governance that ensures commitment to values and ethical conduct of its
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business; transparency in transactions; an effective audit system; statutory and
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legal compliance; adequate disclosures; and effective decision-making to achieve its
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objectives.
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SEC. 19. Im plem enting Rules and Regulations. - Within six (6) months
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from the approval of this Act, the rules and regulations to carry out the provisions
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of this Act shall be formulated and approved by the MCDA.
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SEC. 20. Separability Clause. - Any provision or part hereof is held invalid
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or unconstitutional, the other provisions not otherwise affected shall remain in full
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force and effect.
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SEC. 21. Effectivity Clause. - This Act shall take effect fifteen (15) days
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following completion of its publication in at least one (1) newspaper of general
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circulation.
Approved,
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