Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Seventeenth Congress
Third Regular Session

8635
HOUSE BILL NO.

Introduced by SPEAKER GLORIA MACAPAGAL-ARROYO, Representatives JOEY
SARTE SALCEDA, ARTHUR C. YAP and WES GATCHALIAN

AN ACT INSTITUTIONALIZING THE NATIONAL ECONOMIC
AND DEVELOPMENT AUTHORITY AS THE INDEPENDENT
ECONOMIC AND PLANNING AGENCY OF THE
PHILIPPINE GOVERNMENT, DEFINING ITS FUNCTIONS
AND AMENDING EXECUTIVE ORDER NO. 230

RIES OF 1987, APPROPRIATING FUNDS THEREFOR,

AND FOR OTHER PURPOSES

EXPLANATORY NOTE

This bill seeks to institutionalize a new and truly independent department that
will implement long-term, continuing, integrated, and coordinated programs and
policies for national development. It will also enhance decentralization and
my of the various regions of the country to
accelerate their economic and social growth and development. Distressed
communities will thus be empowered to revitalize, expand, and upgrade their
physical infrastructures to attract new industries, encourage business expansion in
the countryside, diversify local economics, and generate or retain long-term private
sector jobs and investments.

Further, this bill institutionalizes the National Economic and Development
Authority (NEDA) as a lead integrator of economic development programs and
policies to achieve the following objectives:


(1) Facilitate the planning, collaboration, and coordination among the relevant
government agencies; t

(2) Improve access to national program information, data, and funding

(3) Ensure that economic resources are aligned and invested in support of
identified and well-defined timely strategies and projects in non-duplicative
activities;

(4) Encourage strategic investments that strengthen competitiveness and
foster job creation;

(5) Promote energy independence, help fight poverty and build prosperity for
the greatest number of Filipinos; and

(6) Produce transformational economic diversification and work force
development outcomes for our country's long-term sustainable economic future.

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

SPEAKER GLORIA MACAPAGAL-ARROYO SALCEDA.
>
ARTHYR C.YAP- |AN
Na


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Seventeenth Congress
Third Regular Session

8635
HOUSE BILL NO.

Introduced by SPEAKER GLORIA MACAPAGAL-ARROYO, Representatives JOEY
SARTE SALCEDA, ARTHUR C. YAP and WES GATCHALIAN

AN ACT INSTITUTIONALIZING THE NATIONAL ECONOMIC AND
DEVELOPMENT AUTHORITY AS THE INDEPENDENT ECONOMIC
AND PLANNING AGENCY OF THE PHILIPPINE GOVERNMENT,
DEFINING ITS FUNCTIONS AND AMENDING EXECUTIVE ORDER NO. 230
SERIES OF 1987, APPROPRIATING FUNDS THEREFOR,

AND FOR OTHER PURPOSES

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

CHAPTER I
INSTITUTIONALIZATION AND ORGANIZATION OF THE NATIONAL
ECONOMIC AND DEVELOPMENT AUTHORITY

ARTICLE L. TITLE AND POLICY

SECTION 1. Short Title. — This Act shall be known as “The National Economic and

Develupmeni Auilitity Avi of 2018."

SEC. 2. Declaration of Policy. ~ The State shall adopt and implement continuing
integrated and coordinated long, medium, and short term development plans and policies to
achieve full employment towards sustainable and inclusive economic growth, equitable
distribution of opportunities, income, and wealth: and inerease productivity and innovation to
elevate global competitiveness, as a key to raising the quality of life for all. To this end, it is
recognized that the formulation of socioeconomic policies and plans is a vital process that calls
for the participation of the public and private sectors at the national, and sub-national levels
To achieve these, the Constitution mandates Congress to create an independent economic and
planning agency.



ARTICLE IL. THE NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY

SEC. 3. The National Economic and Development Authority. — There is hereby
established an independent economic and planning agency, which shall be known as the
National Economic and Development Authority, hereafter referred to as NEDA. The NEDA
shall generate and provide impartial, objective, and evidence-based analyses and
recommendations for the socio-economic beilerment of the uation, particularly (© the
President, the Congress of the Republic of the Philippines, and Filipinos in general. To this
end, the NEDA shall be transparent and proactive in engaging all Filipinos in the development
and discourse of the government’s socio-economic policies, strategies, plans, programs and
projects, and budgets

The NEDA shall consist of two (2) distinct but functionally related entities, namely,
National Economic and Development Authority Board and the NEDA, hereafter referred to as
the NEDA Board and the NEDA, respectively. The NEDA Board and the NEDA shall be
structured organizationally and functionally, in accordance with the provisions of this Act, and
shall be drawn from the existing NEDA Board and NEDA Secretariat, which was reorganized
pursuant to Executive Order No. 230, s. 1987.

SEC. 4. The NEDA Board. ~ The NEDA Board shall be composed of the following:

1. The President of the Philippines, who shall be the Chairperson of the NEDA Board.
Wheuever ile President is unable (o aiiend « meeting of ihe Board, the Vi
Chairperson shall act as Chairperson;

2. The Secretary of the NEDA, who shall be the Vice-Chairperson;

3. The Secretary of the Department of Finance;

4. The Secretary of the Department Budget and Management;

5. The Secretary of Interior and Local Government,

6

7

8.

The Secretary of Trade and Industry;
The Secretary of Transportation;

. The Secretary of Social Welfare and Development;
9. The Secretary of Education;
10. The Secretary of Health;
11. The Secretary of Agriculture;
12. The Secretary of Public Works and Highways; and
13. The Governor of the Bangko Sentral ng Pilipinas (BSP), as a resource institution.

All members of the NEDA Board, except the Governor of the BSP, are voting members.
The presence of the Chairperson or Vice-Chairperson, aud ai feast iluce (3) viler voting
members shall constitute a quorum.

The President may designate additional members to the NEDA Board.

SEC. 5. Meetings. - The NEDA Board shall meet at least once every quarter. A special
meeting of the NEDA Board may be convened by the President to address urgent concerns, or


emergencies such as natural disasters, calamities, global financial crises or other extraordinary
circumstances that would affect the economy and national development.

The NEDA shall maintain and preserve a complete record of the proceedings and
deliberations of the NEDA Board, including the recordings and transcripts, either in their
original form, or in any secured digital format.

SEC. 6. Full Disclosure Rule. ~ In addition to the requirements of Republic Act No.
6713, any member of the NEDA Board with personal or pecuniary interest in any matter in the
agenda of the NEDA Board shall disclose his interest to the Board and shall withdraw from
the meeting when the matter is taken up. The decision taken on the matter shall be made public.
The mi shall reflect the disclosure made and the retirement of the member concerned
from the meeting.

ee 7. Exercise of Authority. — In the exercise of authority, the NEDA Board shall:

. Direct the formulation and implementation of policies and strategies that would
promote economic development and address development concerns of national
importance;

2. Issue rules and regulations necessary for the effective discharge of the powers and
functions vested upon the NEDA;

3, Ensure, together with the Department of Budget and Management and other relevant
government oversight agencies, that the annual and multi-year appropriations for
programs and projecis are aligned wiih the development siraiegies in the national
and regional development plans and public investment programs, herein referred to
as Philippine Development Plan (PDP)/ Public Investment Program (PIP) and the
Regional Development Plans (RDPs)/ Regional Development Investment Programs
(RDIPs).

4. Approve and endorse to Congress the integrated development plans and programs
which will serve as bases for the annual and multi-year budget review and
deliberation;

5. Determine the level of annual government expenditures, as well as projections,
forecast, resource requirement, and the ceiling of government spending for social
and economic development, national defense, government debt service, and the
proper allocation of expenditures for each development activity between current
operating expenditures and capital outlay;

6. Ensure the efficient and effective evaluation of major capital programs and projects
of the country by determining levels of acceptability and viability relative to overall
economic and fiscal conditions of the country:

. Approve or confirm projecis, programs, and plans as required under existing laws,
orders, rules and regulations, and other issuances; and

8. Direct the reorganization, or establishment of NEDA Board Committees, including
the modification of its membership, structures, powers and functions.

SEC. 8. Powers, Functions, and Duties. - The NEDA shall have the following
powers, functions and duties:


1. Formulate, in consultation with public agencies, civil society organizations, non-
government organizations, people’s organizations, the academe, the private sector,
and local government units, continuing integrated and coordinated policies, plans
and programs for national and regional development, such as, but not limited to:

(a) Long-term national development plans;

(b) Medium-term and short-term national and regional development plans;
(©) Medium-term national and regional public investment programs,

(d) Sectoral inter-sectoral and programs; and

(e) Evaluation agenda

2. Ensure the harmonization of national and regional plans and programs by
prescribing standards, guidelines, and compliance and accountability mechanisms

al

0 .d programs and poli
development;

3. Help ensure and coordinate the integration of national, regional, sub-national and
spatial plans and programs for consistency and alignment with the overall
development objectives of the country;

4. Prioritize policies and strategies, with corresponding programs, activities and
projects, and funding from the national government, official development assistance
(ODA), public-private partnerships, and other viable sources of funding, as basis
for budget expenditure policies and budget formulation, in coordination with
implementing agencies, and for reporting to the NEDA Board and its committees;

5. Oversee, monitor, and evaluate the implementation of national and regional
programs and projecis of government, funded by the national government, public
private partnerships, official development assistance (ODA), and programs vested
with public interest;

6. Review, monitor and assess the impact of policies, regulations, and programs of the
government, and recommend to concerned government agencies and
instrumentalities strategies and measures, including proposed legislation, to achieve
development goals;

7. Recommend policies that would encourage investments to ensure that the economic
and business environments and regulatory frameworks are consistent with the
development agenda and plans of the country;

8. Report to the people, Congress, the Cabinet and the President on the economic
performance of the country, including the status and the directions of the fiscal and
monetary policies of the government — in coordination with the Bangko Sentral ng
Pilipinas and the Department of Finance — and prospects in the macro-economy and
labor market, and other relevant information that may be requested, for purposes of
transparency and accountability; and

9. Provide iechnical, advisory and secreiariai support services iv the NEDA Board and
its committees, the Regional Development Councils, and other stakeholders.

SEC. 9, NEDA Board Committees. - NEDA Board Committees shall be created to be
the primary advisory bodies to the NEDA Board. It shall submit recommendations on matters
involving their concerns to the NEDA Board for approval


The NEDA Board shall designate the Chairperson of these Committees, including the
Secretariat, unless otherwise specifically provided herein

The NEDA Board may create other committees, or modify existing ones in respect to
their structures, compositions, powers, and functions. It may also create sub-committees,
whenever appropriate, for the purpose of dispensing with any of its respective functions.

The following shall be the NEDA Board Committees:

1, Development Budget Coordination Committee (DBCC). - The DBCC, to be
composed of the Secretaries of Budget and Management, National Economic and
Development Authority, Finance, and Trade and Industry, the Executive Secretary,
the Governor of the Bangko Sentral ng Pilipinas, and the Senate President and the
Speaker of the House, shall have the following functions:

(a) Recommend for Presidential approval the level of annual government
expenditures and the ceiling of government spending for economic and social
development, national defense, and government debt service;

(b) Recommend the budget to be allocated for current operating expenditures and
capital outlays of government programs and projects;

(c) Assess the overall economic situation of the country, which includes
economic growth, monetary, fiscal, and possible economic risks which may
require policy reforms;
Formulaie and review ihe guidel
budgetary resources;

Ensure that the regional allocations are responsive to poverty, development

gaps, and economic opportunities-

(f) Conduct periodic review of macroeconomic targets, and the revenue and

expenditure projections of the government;

(g) Prepare a strategic multi-year fiscal program which supports the long-term
and medium-term development objectives of the country; an

(h) Conduct periodic review of fiscal and macroeconomic targets, and the
revenue and expenditure projections of the government;

(@

es for ihe regional allocation of agency

()

2. Investment Coordination Committee (ICC). — The ICC, to be composed of the
Secretaries of Finance, National Economic and Development Authority, Budget and
Management, Interior and Local Government, and Trade and Industry, the
Executive Secretary, the Governor of the Bangko Sentral ng Pilipinas, and the
Senate President and the Speaker of the House, shall have the following functions:

(a) Review and submit to the President a status of the fiscal, monetary and
baiance of payment (BOP) impiications of major capital programs and
projects;

(b) Recommend to the NEDA Board the timetable of the implementation of
major capital programs and projects on a regular basis;

(c) Review and evaluate porate ic male capital programs and projects with

ic, social, environmental, legal,
iability as swell as from the context of sectoral plans

institutional, feasibil Ga



and geographical strategies, as may be
issuances,

(d) Review and approve, for final approval of the NEDA Board, major capital
projects based on a cost threshold as may be set by the NEDA Board; and

quired by law,

. Resource Mobilization and Other Fiscal Matters Committee (RMFMC). — The

RMFMC, to be composed of the Secretaries of Finance, National Economic and
Development Authority, Budget and Management, Interior and Local Government,
and Trade and Industry, Governor of the Board of Investments, Chairperson of the
Governance Commission for GOCCs, the Executive Secretary, the Governor of the
Bangko Sentral ng Pilipinas, and the Senate President and the Speaker of the House,
shail have the following functions:
(a) Review and recommend to the NEDA Board a domestic and foreign
borrowing program;
(b) Pursue and recommend Public-Private Partnerships (PPP), privatization, and
other funding options to augment government's financing capacity;
(c) Propose and recommend tax reform measures; and
(d) Review and recommend modalities of development financing and capital
market development in support of long-term programs and projects for both
national and local government, and GOCCs.

Infrastructure Committee (INFRACOM). ~ The INFRACOM, to be composed of
the Secretaries of National Economic and Development Authority, Public Works
and Highways, Budget and Management, Finance, Information and
Communications Technology, Transportation, Trade and Industry, Energy,
Agriculture, and Tourism, the Executive Secretary, and the Senate President and the
Speaker of the House, shall have the following functions:

(a) Formulate a nationai infrastructure development strategy that wii coordinate,
integrate and accelerate the development initiatives across all infrastructure
subsectors in the country;

‘Advise the President and the NEDA Board, on all matters concerning
infrastructure development, including roads, highways, and bridges; airports,
seaports, offshore in ind shore pr ays and
power generation, transmission and distribution; ICT, telecommunications;
irrigation, flood control and drainage; water supply, sewerage and sanitation;
national buildings for government offices; hospitals and related buildings;
state colleges and universities, elementary and secondary school buildings;
reclamation; and other public works, whether procured or financed through
traditional means, PPP, or any other method; and

Coordinate the activities of agencies, including government-owned and/ or
controlled corporations involved in infrastructure development.

(

(G

Social Development Committee (SDC). - The SDC, to be composed of the
Secretaries of Social Welfare and Development, National Economic and
Development Authority, Budget and Management, Education, Agrarian Reform,
Agriculture, Health, Interior and Local Government, and Labor and Employment,



the Executive Secretary, and the Senate President and the Speaker of the House,
shall have the following functions:

(a) Formulate policies, programs and project that will enhance the welfare and
reduce risks of Overseas Filipino Workers, elderly people, differently-abled
persons, children, women, indigenous peoples, marginalized farmers and
fisherfolk, informal urban and upland settlers;

() Formulate and recommend government policies, programs and projects on
social development that are appropriate and consistent with national
development and priorities;

(©) Advise the NEDA Board on matters concerning social development,
including education, skills development, health and nutrition, population and
family planning, housing, human settlements, social protection, and the
delivery of other social services; and

(@) Coordinate the activities of government agencies concerned with social
development.

6. Committee on Tariff and Related Matters (CTRM). ~ The CTRM, to be composed
of the Secretaries of Trade and Industry, National Economic and Development
Authority, Agriculture, Budget and Management, Environment and Natural
Resources, Finance, Foreign Affairs, — Information and Communications
Technology, Transportation, the Executive Secretary, the Governor of the Bangko
Sentral ng Pilipinas, the Chairpersons of the Tariff Commission and Philippine
Competition Commission, and the Senate President and the Speaker of the House,
shall have the following functions:

(a) Recommend to the NEDA Board a continuous rationalization policy and
program for the country’s tariff structure;

(b) Advise the NEDA Board on tariff and related matters, as well as the effects
of varions international developments on the country; and

(c) Coordinate government agency positions and recommend national positions
for international economic negotiations.

7. Regional Development Committee (RDCom). ~ The RDCom, to be composed of the
Secretaries of National Economic and Development Authority, Interior and Local
Government, Budget and Management, and Trade and Industry, three (3) Regional
Development Council Chairpersons representing Luzon, Visayas and Mindanao,
one (1) representative from the Union of Local Authorities of the Philippines, and
the Senate President and Speaker of the House, shall have the following functions

(a) Advise the NEDA Board on matters concerning regional development;

() Formulaie aud monitor the implemeniation of policies ihai reduce regional
growth disparities;

(c) Promote equitable allocation of resources among regions by strengthening the
linkage between national and regional/local planning, investment
programming, and budgeting, and providing recommendations to the DBCC
‘on the guidelines for the regional allocation of budgetary resources;

(a) Serve as a clearing house for key regional development policy proposals that
have impacts on at least two (2) regions;


(e) Formulate and monitor the implementation of the framework for regional
development of the medium-term development plan; and

(f) Periodically review the viability of the regional configuration of the country,
and recommend to the NEDA Board the re-delineation of regions, as may be
necessary.

8. National Land Use Committee (NLUC). - The NLUC, to be composed of the
Secretaries of National Economic and Development Authority, Agrarian Reform,
Agriculture, Energy, Environment and Natural Resources, Information and
Communications Technology, Interior and Local Government, Justice, Public
Works and Highways, Science and Technology, Trade and Industry, Transportation,
and Tourism, the Chairperson of the Housing and Urban Development Coordinating
Council or the Housing and Land Use Reguiatory Board, the Chairperson of the
National Commission on Indigenous Peoples, the presidents of Leagues of
provinces, municipalities and cities, and the Senate President and the Speaker of
the House, shall have the following functions:

(a) Advise the NEDA Board on matters concerning land use and physical
planning;

(b) Formulate a national physical framework plan and other inter-sectoral
policies and programs that guide the rational utilization and management of
the country’s land and other physical resources, and the preparation of sub-
national physical framework plans;

(c) Ensure the integration of land use and physical planning policies, plans, and
programs, including disaster risk management, into national socioeconomic
plans and programs;

(d) Recommend resolutions concerning land use policy conflicts among agencies
of the national government;

(e) Oversee, in conjunction with concerned government agencies, the
establishment and maintenance of a database sysiem that will identify and
classify the present and possible uses of specific land areas, public and
private, comprising the total land resource of the country; and

(f) Provide policy directions to the Regional Land Use Committees in the
performance of their respective physical planning functions.

9. Economic Development Committee (EDC). ~ The EDC shall be composed of the
Secretaries of Finance, National Economic and Development Authority, Trade and
Industry, Budget and Management, Public Works and Highways, Transportation,
Information and Communications Technology, Energy, Science and Technology,
Tourism, Agriculture, and Interior and Local Government, Chairperson of the
Philippine Competition Commission, the Governor of the Bangko Sentral, the
Executive Secretary, and the Senate President and the Speaker of the House. It shall
be the main coordinating mechanism that ensures that the policy environment is
conducive to the promotion of rapid, inclusive, and sustained economic growth. In
particular, it shall:

(a) Formulaie policies thai promoie susiainable economic development and
inclusive growth;


(b) Promote an environment conducive to growth and competitiveness of private
enterprises and human capital resources, and the creation of jobs that will
empower people and provide them with opportunities to rise above poverty;

(©) Recommend to the President and NEDA Board policies that would ensure
equitable distribution of economic opportunities and benefits to Filipinos;

(d) Recommend policy directions towards the development of farms and rural
enterprises which are vital to achieving food security and more equitable
growth; and

(e) Monitor and evaluate continuous improvements in national productivity and
competitiveness of domestic products and services.

10. Science, Technology and Innovation Committee (STIC). - The STIC, to be
composed of the Secretaries of Science and Technology, National Economic and
Development Authority, Information and Communications Technology, Trade and
Industry, Finance, Budget and Management, Labor and Employment, Agriculture,
and Education, the Chairperson of the Commission on Higher Education, the
Executive Secretary, and the Senate President and the Speaker of the House, shall
have the following functions

(a) Recommend policies and programs that will promote a culture of research,
planning and innovation, and encourage knowledge creation, dissemination
and utilization to support the country’s sustainable economic development,
food security and safety, industrialization, defense and security, and
competitiveness; and

(b) Oversee and coordinate the preparation of a national agenda that would
provide the framework and strategies for research and development, and
innovation in the country

11. Sustainable and Resilient Development Committee (SRDC). ~ The SRDC, to be
composed of the Secretaries of Environment and Natural Resources, National
Economic and Development Authority, Agrarian Reform, Agriculture, Energy,
Interior and Local Government, and Science and Technology, the Administrator/
Executive Director of the Office of Civil Defense/ National Disaster Risk Reduction
and Management Council, the Chairperson of the Climate Change Commission, and
he Senate President and the Speaker of the House, sail have ihe following
functions:

(a) Recommend policies that will promote the conservation of the environment,
and the sustainable utilization of the country’s natural resources;

(b) Oversee the preparation of policies, strategies and other measures to promote
disaster resilience; and

(©) Monitor and evaluate the impact of environmental programs and projects to
the Philippine economy in general, and the utilization of the nation’s
resources

12. Governance Committee (GovCom). — The GovCom, to be composed of the
Secretaries of Interior and Local Government, National Economic and Development
Authority, Budget and Management, Finance, Trade and Industry, and Justice, the


Chairperson of the Commission on Audit, and the Chairman of the Governance
Commission for Government Owned or Controlled Corporations, and the Senate
President and the Speaker of the House, shall have the following functions.

(a) Formulate and recommend policies that promote _ transparency,
accountability, and participatory governance. and strengthen public
institutions to effectively and efficiently implement their respective
mandates.

(b) Recommend policies that would capacitate national government agencies in
linking its respective budget with performance outcomes;

(c) Recommend policies, plans and programs that would ensure an improved
policy and regulatory environment to reduce cost of doing business in the

ountry and improve market compe

(d) Facilitate the resolution of governance issue in development plannin
participation of various sectors im the gov
development of capacities in the identification, development, implementation
and evaluation of critical governance reforms. and

(e) Review and conduct studies on reforms in the country’s system of governance
within the larger context of national economic development

the
nance processes. and the

13, Culture Commitee (Culture om). — The CultureCom, to be composed of the
Secretaries of Education and National Economic and Development Authority, the
Chairpersons of Commission on Higher Education, National Commission for
Culiure and the Avis, National Hisiorieal Commission of ihe Piilippiues, Nauional
Commission on Indigenous Peoples. National Commission on Muslim Filipinos.
Philippine Sports Commission, and the Senate President and the Speaker of the
House shall

(a) Coordinate the development of research programs and recommend policies.
programs, and projects related to culture wh

pmpasses history. arts
Values and sports. consistent with development objectives and priorities. and
(b) Monitor and evaluate the implementation of projects. activities and pre

on culture

1S

The President may designate a representative from the local government units to sit as
member in any or all of the NEDA Board Committees, and may modify the membership of the
NEDA Board Committees, whenever necessary. for the effective performance of each of the
committees” respective functions.

The NEDA Board committees may create sub-committees, whenever appropriate, for
tie purpose of dispensing witi any oF its respective functions

SEC. 10. Meetings and Reports of the NEDA Board Committees. — The NEDA Board
Committees shall meet regularly, but may be convened to such special meetings as may be
necessary. The members of the NEDA Board shall be duly notified of any meeting in advance

The NEDA shall serve as the secretariat ta each NEDA Roard Committee

10


Chairperson of the Commission on Audit, and the Chairman of the Governance
Commission for Government Owned or Controlled Corporations, and the Senate
President and the Speaker of the House, shall have the following functions:

(a) Formulate and recommend policies that promote transparency,
accountability, and participatory governance, and strengthen public
institutions to effectively and efficiently implement their respective
mandates,

(b) Recommend policies that would capacitate national government agencies in
linking its respective budget with performance outcomes;

(c) Recommend policies, plans and programs that would ensure an improved
policy and regulatory environment to reduce cost of doing business in the

and improve market competition:

(d) Facilitate the resolution of governance issue in development planning, the
participation of various sectors in the governance processes, and. the
development of capacities in the identification, development, implementation
and evaluation of critical governance reforms; and

(e) Review and conduct studies on reforms in the country’s system of governance
within the larger context of national economic development.

13. Culture Committee (CultureCom). ~ The CultureCom, to be composed of the
Secretaries of Education and National Economic and Development Authority, the
Chairpersons of Commission on Higher Education, National Commission for

Culiure and the Aris, National Hisiorical Commission of ihe ippines, National
Commission on Indigenous Peoples, National Commission on Muslim Filipinos,
Philippine Sports Commission, and the Senate President and the Speaker of the
House shall:

(a) Coordinate the development of research programs and recommend policies,
programs, and projects related to culture, which encompasses history, arts,
values and sports, consistent with development objectives and priorities; and

(b) Monitor and evaluate the implementation of projects, activities and programs
on culture.

The President may designate a representative from the local government units to sit as
member in any or all of the NEDA Board Committees, and may modify the membership of the
NEDA Board Committees, whenever necessary, for the effective performance of each of the
committees’ respective functions,

The NEDA Board committees may create sub-committees, whenever appropriate, for
ihe purpose of dispensing with any of its respective functions.

SEC. 10. Meetings and Reports of the NEDA Board Committees. — The NEDA Board
Committees shall meet regularly, but may be convened to such special meetings as may be
necessary. The members of the NEDA Board shall be duly notified of any meeting in advance.
The NEDA shall serve as the secretariat to each NEDA Board Committee

10


The NEDA Board Committees shall furnish the NEDA Board their respective reports
and outputs during such meetings.

ARTICLE II. THE SECRETARY AND OFFICES OF THE NATIONAL ECONOMIC
AND DEVELOPMENT AUTHORITY

SEC. 11. Organization, Composition, Staffing, and Compensation. ~ The NEDA shall

determine its organizational structure, composition and staffing, as well as the responsibilities

and functions of each office therein as provided for in SEC. 12, SEC. 13, SEC. 14, SEC. 15,

SEC. 16, SEC. 17, and SEC. 18, according to applicable laws. It shall establish a human
ment system which shall govern the selection, hiring, appoint

promotion, or dismissal of all personnel. Such system shall aim to establish professionalism

and excellence at all levels of NEDA in accordance with sound principles of management.

The NEDA shall be exempted from the Organization Position Classification and
Compensation System under R.A. 6758. It shall develop and periodically review its own
position classification system and compensation structure based on job evaluation studies and
wage surveys. The NEDA Board shall approve NEDA’s position classification system and
compensation structure.

Appointments in NEDA, except those which are policy-determining, primarily
confidential or highly technical in uaiure, shall be made only according io the Civil Service
Law, rules and regulations: Provided, that no qualification standards for positions in NEDA
shall be imposed other than those set by the NEDA Board: Provided, further, that the NEDA
Board, may without need of obtaining prior approval from any other government agency,
appoint personnel in NEDA whose services are deemed necessary.

SEC. 12. Organization of NEDA. ~ The NEDA shall consist of the Office of the
Secretary, the Offices of the Undersecretaries and Assistant Secretaries, technical and sectoral
staffs, operations support staffs, and regional offices.

SEC. 13. Office of the Secretary of NEDA. — The Office of the Secretary of NEDA
shall consist of the Secretary, four (4) Undersecretaries, eight (8) Assistant Secretaries, the
Internal Audit Service, and the Legislative Liaison Office.

SEC. 14. Secretary of NEDA. ~ The NEDA shall be headed by a Secretary, who shall
be the Vice-Chairman of the NEDA Board. The NEDA Secretary shall also be a member of
the Cabinei.

The NEDA Secretary shall have the following functions:

1. Provide executive direction and supervision over the entire operations of the
NEDA;

2. Establish policies and standards for the effective, efficient, and economical
operations of the NEDA, in accordance with the programs of the government;


ymulgate rules, regulations, and other issuances as necessary in carrying out the

NEDA’s mandate, objectives, policies, plans, programs and projects;

4. Establish effective linkages with provincial and municipal planning and
development offices;

5. Advise the President on the promulgation of executive or administrative orders, and
the formulation of regulatory and legislative proposals, pertaining to matters of
national economic and social development,

6. Promulgate such rules and regulations, and exercise such other powers as may be
required to implement the objectives of this Act; and

7. Perform such other tasks as may be provided by law or assigned by the President.

SEC. i5. Representation to the Monetary Board. ~ The NEDA Secretary shai be the
representative of the Cabinet to the Monetary Board. Whenever the NEDA Secretary is unable
to attend a meeting of the Monetary Board, he shall designate an Undersecretary to attend as
his alternate.

SEC. 16. Term of Office of the
Development Authority shall be appointed by the President who shall serve until the expiration
of the President’s term unless sooner terminated.

The Secretary may be re-appointed or extended beyond his or her term, upon the
discretion of the newly elected President.

SEC. 17. Undersecretaries and Assistant Secretaries. The Secretary shall be assisted
by four (4) Undersecretaries and eight (8) Assistant Secretaries, who are appointed by the
President, upon recommendation by the Secretary.

The Secretary shali have the flexibility to determine the respective assignments of the
Undersecretaries and Assistant Secretaries, depending on the Secretary’s strategic directions
and/or on emerging development trends affecting the country’s economy.

SEC. 18. Staffs and Offices. ~The NEDA shall be composed of the following technical
and sectoral staffs, administrative and support staffs,

. National Policy and Planning Staff;

Public Investment Staff,

Social Infrastructure Staff;

. Connectivity Infrastructure Staff;

Social Development Staff;

Trade, Services, and Industry Staff;

Spatial Planning and Regional Development Staff;

. Monitoring and Evaluation Staff;

Agriculture, Natural Resources, and Environment Staff;
10. Culture Staff

11. Science, Technology, and innovation Staff

12. Governance Staff;

13. Administrative Staff;

CerIAuewne


14. Knowledge Management and Development Communication Staff;

15, Financial Planning and Management Staff;

16, Information and Communications Technology Staff;

17. Legal Staff,

18. Internal Audit Service;

19. Legislative and Liaison Office; and

20. Regional Offices in all the administrative regions of the couniry, except those with
planning offices created by law.

The Secretary may recommend for NEDA Board approval, the creation of additional
staffs or modification of existing staffs relative to their structures, compositions, powers, and
fin

SEC. 19. NEDA Regional Offices (NROs). — The NROs shall have the following
functions:
1. Oversee the integration of plans and programs of regional agencies, state
universities and colleges (SUCs), government owned and controlled corporations
(GOCCs), and local government units (LGUs) into the regional and national plans.
The NROs shall provide assistance to regional line agencies, LGUs, SUCs and

GOCCs in identifying and developing programs and projects;

2. Evaluate and review proposed policies, land use plans, programs and projects in the
region;

3. Monitor and evaluaie the implemeniation of plans, policies, programs and projecis,
Provide technical and secretariat services to their respective Regional Development
Councils;

5. Undertake research and ensure knowledge utilization for regional development and
productivity; and

6. Provide technical assistance to development partners in the region in accordance
with NEDA’s functions.

SEC. 20. Attached Agencies. - The agencies attached to the NEDA as of the
effectiveness of this Act shall continue to be attached in the performance of their respective
functions, pursuant to the pertinent provisions of their respective charters or enabling laws,
unless otherwise provided.

The following agencies are attached to the NEDA for policy and program coordination,
and budgetary purposes:

1. Philippine Institute for Development Studies (PIDS);

2. Philippine National Voiunieer Service Coordinating Agency (PNVSCA),

3. Philippine Statistics Authority (PSA);

4. Philippine Statistical Research and Training Institute (PSRTI); and

5. Commission on Population and Development (POPDEVCOM).

Other attached agencies, which are attached to the NEDA for budgetary purposes and

administrative supervision, include:
1. Public-Private Partnership Center of the Philippines (PPPC); and

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2. Tariff Commission (TC).

SEC. 21. Functions of the Attached Agencies. ~ The agencies attached to the NEDA
shall continue to operate and function in accordance with the respective charters, laws, or order
creating them, except as otherwise provided in this Act, the Administrative Code of 1987, and
subsequent laws.

SEC. 22. Legislative-Executive Development Advisory Council (LEDAC). — The
NEDA shall continue to serve as the principal secretariat of the LEDAC, consistent with
Republic Act No. 7640. It shall perform the following functions under Sec. 3 thereof, including
the Preparation of the budget and administration of the funds of the Council
ine and r znd socioeconomic development goals in pursuance of

established policies which shall guide the formulation and implementation of the
national development plan;

2. Provide policy advice to the President on vital issues affecting the socioeconomic
development of the country;

3. Direct the study of measures to ensure that regional development plans and
programs are integrated into the national development plan;

4. Receive, and in appropriate cases, require reports on, and study measures to
improve, the implementation of official development assistance from multilateral
and bilateral entities;

5. Assess effectiveness of implementation of the national development plan;

6. Iniegraie cnvirommenial concepis, principles and praciices inio ihe national
development plan for a balanced and cohesive approach to national development;

7. Review the relationship of the legislative agenda to the national development plan
to ensure the integration of both; and

8. Study and recommend to the President and to Congress sources of revenue as well
as measures to reduce unnecessary expenditures to the end that the resources of the
Government will be used to the optimum

Article IV, DEVELOPMENT PLANS AND PROGRAMS, REPORTS
AND PUBLICATIONS

SEC. 23. Long-Term Development Plan. ~ The NEDA, in consultation with regional,
local and other stakeholders, shall formulate a long term development plan which will provide
the overall direction to the medium-term and short-term development plans of the country, to
ensure consisiency of goverment siraiegies, policies, programs, and projecis across political
administrations. The long-term development plan shall contain the development goals and
milestones each administration should attain to realize the long-term vision of the Filipino
people.



SEC. 24. Philippine Development Plan (PDP) and Regional Development Plan
(RDP). — The NEDA, in consultation with appropriate public agencies, various private sector
and local government units, shall prepare an economic development blueprint for the next six
years, which shall be known as the Philippine Development Plan (PDP). The PDP shall
‘embody the government’s socio-economic policies, strategies and programs in support to and
consistent with the development agenda of the President, and geared towards the attainment of
the development goals and objectives in the iong-term development pian.

At the regional level, the NEDA Regional Offices shall coordinate the preparation of
their respective regional development plans, consistent with the PDP. The RDPs shall define
the region’s development direction and identify policies, strategies and programs.

SEC. 25. Philippine Investment Program (PIP) and Regional Development
Investment Program (RDIP). ~ The preparation of the PIP and RDIPs shall be formulated in
support of PDPs and RDPs. The NEDA shall prepare a list of priority programs and projects
to be implemented by the national government, government-owned and/or controlled
corporations (GOCCs), government financial institutions (GFIs), and other national
government offices and instrumentalities that will contribute to the attainment of the sectoral
goals and outcomes in the PDP and RDP.

The PIP and RDIPs shall be regularly updated. The NEDA, in consultation with
appropriate government agencies and stakeholders, shall prioritize sectoral and geographic
programs, projecis and aciivities io be funded from government appropriations, ODA, PPP,
Tevenue sources generated by GOCCs, GFls, and other government bodies and
instrumentalities, and other viable sources of funding.

SEC. 26. National Physical Framework Plan (NPFP) and Regional Physical
Framework Plan (NPFP), ~The NEDA shall prepare a framework which provides analytical
parameters for the planned allocation, use and management of the country’s land and other
physical resources. The NPFP shall help plan and manage these resources at the national and
subnational levels.

The NEDA Regional Offices shall coordinate the preparation of the sub-national
physical framework or physical development plans for the approval of their respective RDCs.

The NPFP and sub-national physical framework or physical development plans shall
serve as the main reference documents in the preparation of the physical plans and land use
plans of provinces, cities, and municipalities in the country.

SEC. 27. Socio-Economic Reports (SERs) and Regional Development Reports
(RDRs). ~ To monitor the implementation of the PDP and RDP, the NEDA shall prepare
periodic socioeconomic reports. The SER and RDRs shall serve as inputs to policy and
decision makers in the formulation of policies, budgeting and implementation of programs and
projects, based on the development plans of the country

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SEC. 28. ODA Portfolio Review. ~ The NEDA shall review the status of all projects
funded by ODA, both multilateral and bilateral, and identify causes of implementation
problems and proposed solutions to bottlenecks, cost overruns (actual and prospective), and
continued program or project viability. The NEDA is required to submit to the President and
Congress a report on the outcome of the review not later than June 30 of each year.

SEC. 29. Knowledge Management. ~ The NEDA shall establish a repository of data
and information, publication, research and analyses, and other information concerning the
Philippine economy and development, in general. It shall manage, maintain, and make
available such information and documents to the public for the purpose of knowledge sharing.

CHAPTER II
HARMONIZATION AND SYNCHRONIZATION OF DEVELOPMENT PLANNING,
INVESTMENT PROGRAMMING, BUDGETING, AND MONITORING AND
EVALUATION PROCESSES OF GOVERNMENT

ARTICLE I. LINKAGE AND ALIGNMENT OF PLAN
AND PROGRAM FORMULATION

SEC. 30. Planning and Program Formulation. ~ A Planning Call by the NEDA Board
shall be issued not later than two months after the newly elected President has assumed office.
The NEDA Secretary shall propose to the NEDA Board the standards and guidelines for the
Planning Call in the preparation of the PDP, RDPs, PIP and RDIPs, including a timeline for
the planning and investment programming activities preceding the budget preparation
activities to ensure that the strategic programs and projects identified are provided with the
required funding allocation.

The NEDA, in coordination with concerned government agencies and other government
instrumentalities, shall determine a timetable for the preparation and formulation of sectoral
plans and programs, to ensure that the policies and strategies contained in the respective
sectoral plans are considered and incorporated in the PDP. The timetable for the formulation
of the PDP/RDPs and PIP/RDIPs shall align with the budgeting timetable to ensure that the
strategic programs and projects identified are provided with the required funding allocation

SEC. 31. Planning, Programming, and Budgeting Linkage. ~The NEDA shall ensure
a strong, efficient and effective linkage between development planning, programming and
budgeting.

The NEDA, together with the Department of Budget and Management and other
relevant government oversight agencies, shall ensure that the annual and multi-year
appropriations for programs and projects are aligned with the development strategies in the
PDP and RDPs.

SEC. 32. Adoption and Implementation of Plans and Investment Programs. ~ The
prove their respective RDPs and RDIPs for consideration in the PDP and PIP.

16


The NEDA Board shall approve the PDP and PIP for adoption and implementation of
government agencies,

SEC. 33. Integration of National, Regional and Local Plans and Programs. ~ The
NEDA shall integrate major regional and local development priorities into the PDP and RDPs,
respectively. Furthermore, the NEDA, through the NEDA Regional Offices, shall provide
oversight in the formulation of provincial development and physical framework plans so that
local development thrusts are aligned with and contribute to the national and regional level
plans and programs.

The NEDA shall mainstream the i
projects of the national government a,
national agencies.

Jusion of regional priorities in the programs and
and subsequently, in the respective budgets of

The NEDA Board, through the DBCC, shall identify and estimate the level of
expenditure program of national government agencies by region, in accordance with the
approved regional medium-term development plans and regional medium-term development
investment programs.

SEC. 34. Regional Development Council (RDC). ~ To accelerate the socioeconomic
development of the regions in the country, the Constitution mandates the creation by the
President of Regional Development Councils composed of local government officials, regional
heads of deparimenis and other government offices, and represeniaiives from nou
governmental organizations within the regions. The NEDA Regional Offices shall serve as
secretariat of the RDCs.

To ensure that socioeconomic development programs and activities of government are
undertaken with extensive and active participation and support of, vari
agencies, as well as private sector institutions at the national, regional and local levels, the
NEDA shall prepare and submit for Presidential approval, the continuous strengthening of the
RDCs to make them more effective institutions in the regions responsible for ensuring
sustainable, participatory and equitable development. The strengthening of the RDCs must also
serve the purpose of providing a responsive forum at the regions for the meaningful
participation and support from the concerned members of the House of Representatives.

government

SEC. 35. Consultations. ~ The NEDA shall mobilize maximum participation by and
consultation with concerned local government units, community organizations and
beneficiaries, civil society organizations, non-government organizations, _people’s
organizations, the academe, or oiler privaie organizations in order (o ensure iat the priority
needs are incorporated into the formulation of policies, plans, programs and projects. Civil
Society Organization (CSO) Advisory Boards shall be organized at the national and regional
levels, as an institutionalized consultative mechanism at all planning levels and planning
‘committees in the formulation of the PDP and RDPs, respectively

SEC. 36. Technical Assistance. — The NEDA shall provide technical assistance to the
local government units on how to localize national development strategies, particularly in

7


planning and investment programming to ensure alignment of local development plans and
strategies with the PDP and RDP. It shall also assist local government units in identifying and
developing programs and projects, and redirecting resources into more productive activities to
achieve the intended development outcomes in their respective areas.

SEC. 37. Coordination with Autonomous and Administrative Regions. ~ The NEDA
shali ensure effective coordination with autonomous and adminisirative regions with separate
planning offices in the formulation of the PDP and in other relevant planning activities
affecting said regions.

ARTICLE I. MONITORING AND EVALUATION OF
PLANS AND PROGRAMS:

SEC. 38. Monitoring and Reporting on the Implementation of Plans and Programs.
~The relevant NEDA Board Committees shall monitor the implementation of the PDP, RDP,
PIP and RDIPs, including sectoral plans and programs on an annual basis, to determine if the
targets identified in the plans and programs were achieved. The monitoring results shall be
reporied io the NEDA Board, Congress and other concerned agencies for purposes of
adjustments in policies, programs and projects.

The NEDA shall facilitate the conduct of monitoring and evaluation of programs and
projects at the national level, complemented by the Regional Project Monitoring and
Evaluation System at the regional levels. The Department of the Int and Local
Government shall complement NEDA’s monitoring, reporting and facilitation of programs and
projects at the sub-regional level through the Local Project Monitoring Committees.

SEC. 39. Evaluation of the Implementation of Plans and Programs. ~ Consistent
with a National Evaluation Framework, which provides for the purposive conduct of evaluation
in the public sector, a national evaluation agenda shall be formulated. Relevant NEDA Board
Committees shall identify and commission, or instruct agencies to conduct public sector
evaluation studies in support of good governance, transparency, accountability, and evidence-
based decision making.

CHAPTER II
TRANSITORY AND OTHER MISCELLANEOUS PROVISIONS

SEC. 40. Transitory Provision. - The powers and functions, applicable funds and
appropriations, records, files, equipment, facilities, supplies, property, and personnel of the
current NEDA Secretariat are hereby transferred to the new NEDA. All officials and
empioyees of the current NEDA Secretariat shail be retained.

SEC. 41. Transfer of Rights and Obligations. - The NEDA shall, by virtue of this Act,
be subrogated to all the rights and assume all the obligations of the current NEDA Secretariat,
and all its liabilities that pertain to its pertinent funds and appropriations, records, files,


equipment, facilities, supplies, property, and personnel, including unexpended portions of its
members’ respective salaries

SEC. 42. Funding. — The amount needed to carry out the initial implementation of this
Act shall be charged against the current operative budget sourced from the funds currently
available for the NEDA Secretariat. Thereafter, the necessary budget for the continued
operation and maintenance of the NEDA shali be inciuded in the annual GAA.

SEC. 43. Implementing Rules and Regulations. — Within ninety (90) days from the
effectiveness of this Act, the NEDA Board shall promulgate the rules and regulations, as well
as the issuances, peceeenry to ensure the proper implementation of the provisions of this Act.
These implementing rules and regi s shall take effect fifteen (15) days after the
completion of their publication in two (2) newspapers of general circulation.

SEC. 44, Separability Clause. ~ If any provision or portion of this Act is declared
unconstitutional, the remainder of this Act or any provision not thereby affected shall remain
in full force and effect.

SEC. 45. Repealing Clause. ~ All laws, decrees, executive orders, ordinances, rules,
regulations, and other issuances, or parts thereof, which are inconsistent with any provision of
this Act, are hereby repealed, amended, and/ or modified accordingly

SEC. 46. Effectivity. This Act shall take effect fifteen (15) days after completion of its
publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved.