Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH (20th) CONGRESS 
FIRST REGULAR SESSION 
House Bill No. 2062 
Introduced by 
Rep. ROBERT NAZAL 
AN ACT  
INSTITUTIONALIZING A NATIONAL LEASING PROGRAM OF PRIVATE 
EDUCATION FACILITIES FOR PUBLIC SCHOOL USE, PROVIDING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
One of the longstanding and persistent issues facing the Philippine education system is 
the inadequate availability of classrooms and learning facilities. The public-school 
infrastructure projects by DepEd have not alleviated the issue of congestion in many 
public schools, especially located in urbanized areas and remote region geographically 
isolated regions. This compromises academic standards, threatens learner welfare, 
hurts their health, or-safe developmental growth.1   
The persistent problem can be addressed more pragmatically through leasing 
underutilized private school facilities as proposed within the EduLease Act. With this 
initiative, both national and local governments will be empowered to lease such privately 
owned educational infrastructures that are rarely utilized to immediately provide learners 
with safe sheltered access. The program is designed to provide immediate relief while 
complementing medium-term plans for construction scaled government infrastructural 
additions for unmanaged expansion necessitated by overcrowding.   
This measure aligns with the legislative advocacy of Bagong Henerasyon (BH) Partylist 
pursues under BH HELPS — Health, Education, Livelihood, Protection and 
Sustainability; further supporting Philippine Development Plan (PDP) 2023–2028 
targeting accelerating human capital development alongside habitual commitments 
expected under sustainably managed tasks SDG 4 (Quality Education).2 
2  National Economic and Development Authority. (2023). Philippine Development Plan 2023–2028. 
https://pdp.neda.gov.ph
1  Department of Education. (2022). Basic Education Report 2022. https://www.deped.gov.ph/basic- 
education-report-2022 
1 
July 17, 2025
10:08 am


Through this bill, we reaffirm our commitment to the principle that every Filipino child, 
our Bagong Henerasyon deserves a conducive, accessible, and dignified place to learn, 
regardless of economic status or geographic location. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
Rep. ROBERT NAZAL 
Bagong Henerasyon Party-List 
2 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH (20th) CONGRESS 
FIRST REGULAR SESSION 
House Bill No. 2062 
Introduced by 
Rep. ROBERT NAZAL 
AN ACT  
INSTITUTIONALIZING A NATIONAL LEASING PROGRAM OF PRIVATE 
EDUCATION FACILITIES FOR PUBLIC SCHOOL USE, PROVIDING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. SHORT TITLE. 
This Act shall be known as the “EduLease Act" or the "Public Education Access through 
Leasing of Private Education Facilities Act." 
SECTION 2. DECLARATION OF POLICY. 
It is hereby declared the policy of the State to ensure universal access to quality, 
equitable, and inclusive education. The State recognizes the necessity of innovative 
solutions to address classroom shortages and the right of every Filipino learner to a 
safe, accessible, and conducive learning environment. 
SECTION 3. OBJECTIVES. 
This Act aims to:  
A.
Institutionalize a government program for the temporary lease of private
educational facilities for public school use;
B.
Provide learners with access to safe and proximate learning spaces;
C.
Support LGUs and DepEd in bridging infrastructure gaps;
D.
Prevent school overcrowding, especially in high-density or disaster-affected areas;
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E.​
Optimize public-private partnerships for education access. 
 
 
SECTION 4. DEFINITION OF TERMS.  
 
As used in this Act, the following terms shall mean: 
 
A.​
Private Educational Institution - refers to a non-government school duly recognized 
and accredited by the Department of Education (DepEd) 
 
B.​
Lease Agreement - refers to a formal contract for the temporary use of private 
school facilities by the government for educational purposes 
 
C.​
Facility Gap - refers to any deficiency in classroom, laboratory, or educational 
infrastructure, as identified by DepEd 
 
D.​
Eligible Facility - refers to a school infrastructure certified safe, functional, and 
compliant with education and building standards 
 
 
SECTION 5. COVERAGE.  
 
This Act shall apply to both public and private stakeholders in the education sector 
under the following conditions: 
 
A.​
Public Schools with Facility Shortages – All public elementary, secondary, and 
tertiary educational institutions under the supervision of DepEd that suffer from a 
shortage of usable and safe learning spaces may be eligible to lease additional 
classroom space from private educational institutions within their locality or region. 
Such facility shortages may arise due to high student population, natural disasters, 
building dilapidation, or new curriculum requirements. 
 
B.​
Accredited Private Educational Institutions – All non-government schools that are 
duly registered with and accredited by DepEd and have available or underutilized 
infrastructure may voluntarily offer their school facilities for lease to the 
government for use by public school students. Private institutions participating in 
the program must comply with national and local safety and health regulations and 
be located in areas with confirmed public school infrastructure gaps. 
 
C.​
Special and Emergency Situations – The program shall also apply in cases where 
temporary learning spaces are required due to emergencies, including but not 
limited to pandemics, armed conflict, displacement of populations, or extensive 
repair and retrofitting of public schools. In these instances, the lease arrangement 
may be fast-tracked and facilitated through emergency procurement protocols, in 
accordance with government audit regulations. 
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D.​
Public-Private Partnerships (PPPs) – Private educational institutions engaged 
through PPP modalities may be covered under this Act, provided that lease 
conditions meet the standards prescribed by DepEd and are subject to oversight 
by DBM and COA. 
 
E.​
Priority for Underserved Areas – In line with equitable access, preference shall be 
given to public schools in geographically isolated and disadvantaged areas 
(GIDAs), densely populated urban communities, and calamity-affected locations. 
 
 
SECTION 6. LEAD IMPLEMENTING AGENCIES.  
 
To ensure quality, safety, and efficiency in the implementation of this Act, the following 
eligibility criteria shall be established and followed: 
 
A.​
For Private Educational Institutions: 
 
1.​ Must be duly accredited and licensed by the Department of Education (DepEd), 
depending on the educational level and training program provided. 
2.​ Must have available, unutilized, or underutilized classrooms, laboratories, or 
multi-purpose halls that comply with the minimum physical safety standards, 
health protocols, ventilation requirements, and accessibility laws. 
3.​ Must present a Certificate of Structural Integrity issued by a licensed civil 
engineer or architect, and an Occupancy Permit issued by the local 
government unit. 
4.​ Must be located within a five-kilometer radius from the public school or 
community experiencing the shortage, unless in rural or geographically isolated 
areas where distance shall be subject to DepEd approval. 
5.​ Must agree to abide by the standardized lease contract provided by the 
Department of Education, which includes clauses for compliance monitoring, 
data protection, non-discrimination, and emergency usage. 
 
B.​
For Public School Beneficiaries: 
 
1.​ Must be included in DepEd's verified list of institutions experiencing critical 
infrastructure shortages. 
2.​ Must have submitted a written justification and endorsement from the Division 
Office or Regional Office indicating the specific number of classrooms needed, 
duration of use, and geographic constraints. 
3.​ Must demonstrate the lack of ongoing construction or feasible on-site 
expansion that could otherwise address the shortage. 
 
C.​
Duration and Terms: 
 
1.​ Initial lease terms shall range from (1) one year to three (3) years, renewable 
annually based on need, performance, and budget availability. 
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2.​ Government agencies must ensure that facilities leased shall only be used for 
educational purposes and not for commercial or unrelated government 
functions. 
3.​ Lease agreements must contain provisions for early termination, damage and 
repair accountability, insurance coverage, and dispute resolution. 
 
D.​
Financial and Legal Compliance:  
 
All participating private institutions shall be required to issue official receipts for 
lease payments, declare such income to the Bureau of Internal Revenue, and be 
subject to auditing and documentation as required by the Commission on Audit 
(COA) and Department of Budget and Management (DBM). 
 
 
SECTION 7. LEASE ELIGIBILITY CRITERIA.  
 
To ensure effective implementation of the EduLease Program, clear and rigorous 
eligibility criteria shall govern the selection of private educational institutions and 
facilities qualified for government lease: 
 
A.​
Accreditation and Legal Status – The private educational institution must be duly 
registered and accredited by the Department of Education (DepEd) depending on 
the educational level offered. 
B.​
Availability of Facilities – The institution must demonstrate the availability of idle or 
underutilized facilities suitable for public school use. Such facilities must not be in 
use during the proposed lease term and must meet all physical, health, and 
educational standards. 
C.​
Compliance with Safety Standards – All facilities offered for lease must comply 
with the National Building Code of the Philippines, Fire Code, Sanitation Code, 
and other applicable safety regulations. A certificate of structural integrity and 
occupancy from the local building official must be submitted prior to the lease. 
D.​
Location Suitability – Priority shall be given to facilities located in areas 
experiencing classroom congestion or identified as high-need zones in the 
DepEd’s Basic Education Information System (BEIS). Proximity to the target public 
school population shall also be a primary consideration. 
E.​
Non-Discrimination and Inclusivity – Institutions must commit to uphold 
non-discriminatory practices and allow all learners—regardless of gender, religion, 
ethnicity, or disability status—access to the leased facilities. Accessible features in 
accordance with BP 344 (Accessibility Law) are required. 
F.​
Readiness for Deployment – Institutions must demonstrate that the facilities can 
be made available within a reasonable timeframe from the signing of the lease 
agreement, including readiness in terms of staffing, cleaning, retrofitting (if 
needed), and utilities provision. 
G.​
Willingness to Enter into Standard Lease Agreement – The institution must agree 
to enter into a standard government lease agreement as developed by DepEd and 
vetted by the Department of Budget and Management (DBM) and the Office of the 
6 
 


Government Corporate Counsel (OGCC), covering lease rates, terms, renewal 
options, dispute resolution, and compliance monitoring. 
H.​
No Legal Encumbrances – Facilities subject to lease must not be involved in any 
legal dispute or encumbrance that may impede or delay the execution and 
performance of the lease contract. 
 
 
SECTION 8. SCOPE OF LEASE.  
 
This section outlines the types of facilities that may be considered under lease 
agreements for use by public educational institutions: 
 
A.​
Classrooms – Standard lecture rooms that adhere to DepEd and minimum space, 
lighting, and ventilation requirements. Leased classrooms must be suitable for the 
age group and curriculum of the public students who will be temporarily relocated. 
B.​
Science and Computer Laboratories – Specialized rooms used for the instruction 
of science and technology subjects. Laboratories must be equipped with basic 
furnishings, workstations, and safety protocols necessary for the level of education 
they are intended to serve. 
C.​
Libraries and Resource Centers – Dedicated areas that provide access to learning 
materials, reference books, and digital media. Leased libraries must meet 
accessibility and quiet-use standards and may serve as shared academic support 
hubs. 
D.​
Multi-purpose Halls and Gyms – Indoor halls or gymnasiums that can 
accommodate large groups for physical education, school assemblies, remedial 
classes, or alternative learning modalities. These facilities must comply with 
building safety codes and allow for flexible use. 
E.​
School Grounds and Play Areas – Open spaces that may be used for physical 
education, outdoor learning, or recreational activities. Such spaces must be 
enclosed or secured for child safety. 
F.​
Canteens, Clinics, and Administrative Offices (Optional) – Where necessary and 
available, private institutions may also lease auxiliary service areas such as 
canteens, health clinics, and temporary administrative offices to support full-day 
school operations. 
G.​
Dormitories or Boarding Facilities – In isolated or high-need areas where 
transportation is a barrier, leased dormitories may provide housing for students or 
teachers. These must be inspected for health, sanitation, and safety standards. 
 
 
SECTION 9. IMPLEMENTATION TIMELINE AND PHASES.  
 
The EduLease Program shall be rolled out in phased stages to ensure structured, 
evidence-based implementation. Each phase shall build upon the outcomes and 
evaluations of the preceding stages to achieve full national adoption: 
 
A.​
Phase 1 – Pilot Implementation (Year 1): 
7 
 


1.​
The Department of Education (DepEd), in collaboration with selected LGUs 
and private educational institutions, shall identify at least five (5) pilot regions 
representing urban, rural, and geographically isolated areas. 
2.​
Memoranda of Agreement (MOAs) shall be executed between LGUs, DepEd, 
and qualified private institutions. 
3.​
A monitoring and evaluation (M&E) team shall be formed to gather baseline 
data on learner population, classroom demand, facility conditions, and 
educational outcomes. 
 
 
B.​
Phase 2 – Program Expansion (Years 2–3): 
 
1.​
Based on pilot results, the program shall be expanded to cover up to 50% of 
regions experiencing classroom shortages. 
2.​
Adjustments to lease templates, safety protocols, and funding allocations 
may be introduced through the Implementing Rules and Regulations (IRR). 
3.​
Periodic assessments will determine effectiveness in improving access and 
alleviating classroom congestion. 
 
C.​
Phase 3 – National Implementation (Year 4 Onward): 
 
1.​
The program shall be scaled to nationwide coverage. 
2.​
All public schools experiencing infrastructure gaps may apply for EduLease 
support subject to funding availability and institutional readiness. 
3.​
Coordination with COA and DBM shall ensure streamlined financial flows and 
compliance with audit standards. 
 
D.​
Review and Updating: 
 
1.​
An independent evaluation shall be conducted at the end of each phase, 
measuring indicators such as student-teacher ratios, dropout rates, academic 
performance, and cost-efficiency. 
2.​
The Department of Education, in consultation with, DBM, and COA, shall 
revise 
implementation 
procedures, 
guidelines, 
and 
benchmarks 
as 
necessary. 
 
 
SECTION 10. INSPECTION AND CERTIFICATION.  
 
Prior to lease, DepEd, in coordination with the DPWH and LGUs, shall inspect and 
certify the facilities for structural integrity, compliance with safety standards, and 
readiness for use. 
 
 
 
 
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SECTION 11. ROLE OF THE LOCAL GOVERNMENT UNITS.  
 
LGUs shall play a critical role in facilitating and supporting the implementation of the 
EduLease Program at the local level. Their functions shall include, but not be limited to, 
the following: 
 
A.​
Needs Assessment and Identification – LGUs shall assist DepEd in identifying 
schools within their jurisdictions that are suffering from facility shortages. They 
shall provide localized data on population trends, school overcrowding, and 
available infrastructure within the community. 
B.​
Initiation and Facilitation of Lease Agreements – LGUs may initiate coordination 
with private institutions located within their jurisdiction and act as facilitators in the 
negotiation and execution of lease agreements, subject to DepEd final approval. 
LGUs shall also endorse participating private institutions that meet the eligibility 
criteria. 
C.​
Financial Support and Counterpart Funding – LGUs may provide financial 
assistance through counterpart funding, logistical support, or cost-sharing 
arrangements, particularly in areas with high infrastructure deficits or where 
national resources are limited. They may allocate funds from their Special 
Education Fund (SEF) or local disaster risk reduction and management fund, 
when applicable. 
D.​
Monitoring and Enforcement – LGUs shall monitor compliance with lease terms at 
the local level, including the proper use of facilities, adherence to safety standards, 
and timely resolution of grievances. They shall report violations or issues to 
DepED, or appropriate agencies. 
E.​
Community Engagement and Information Campaigns – LGUs shall be responsible 
for disseminating information about the EduLease Program to stakeholders, 
parents, school administrators, and the broader public. They shall help manage 
community expectations and build support for the program. 
F.​
Disaster Response Integration – In case of natural calamities, LGUs shall identify 
available leasable private school facilities that can be used for temporary learning 
while public school repairs or reconstruction are underway. 
 
 
SECTION 12. LEASE-TO-OWN OPTION.  
 
To address long-term educational infrastructure needs in a fiscally responsible manner, 
a lease-to-own modality may be adopted as part of the EduLease Program, particularly 
in areas with sustained facility shortages and limited opportunities for on-site expansion. 
 
The lease-to-own option shall allow public educational institutions to lease eligible 
private school facilities for a fixed term with a contractual provision granting the 
government the right to acquire ownership of the leased facilities at the end of the lease 
period, subject to mutually agreed terms and valuation. 
 
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The adoption of this modality shall be governed by the following conditions: 
 
A.​
Cost Efficiency – The total financial exposure over the life of the lease-to-own 
agreement, including the eventual purchase price, must result in demonstrable 
long-term cost savings compared to equivalent infrastructure construction or 
continuous leasing. 
B.​
Legal and Regulatory Compliance – All lease-to-own agreements must comply 
with the Government Procurement Reform Act (RA 9184), relevant COA rules and 
audit guidelines, and pertinent local government regulations on property 
acquisition and contractual obligations. 
C.​
Approval and Oversight – Each proposed lease-to-own arrangement shall be 
subject to review and approval by the Department of Education (DepEd), in 
consultation with the Department of Budget and Management (DBM), and shall 
undergo legal vetting by the Office of the Government Corporate Counsel (OGCC). 
Oversight shall be exercised by the Commission on Audit (COA) and the 
Congressional Oversight Committee created under this Act. 
D.​
Transparency and Valuation – The terms of the lease-to-own agreement, including 
the final purchase price or acquisition value, shall be based on a fair market 
valuation conducted by an independent government-accredited appraiser and 
publicly disclosed for transparency. 
E.​
Eligibility of Facilities – Only private facilities that meet the safety, accessibility, and 
structural integrity standards as certified by DepEd, the Department of Public 
Works and Highways (DPWH), and the local building official may be considered for 
lease-to-own agreements. 
F.​
Ownership Transfer Process – Upon completion of the lease term and fulfillment of 
agreed contractual obligations, the title to the property shall be transferred to the 
government through a deed of sale or donation, and duly registered with the 
appropriate Registry of Deeds. 
G.​
Limitations and Prioritization – The lease-to-own option shall be applied prudently 
and only when justified by need, budgetary availability, and projected student 
population growth. Preference shall be given to facilities in Geographically Isolated 
and Disadvantaged Areas (GIDAs) and communities with chronic infrastructure 
deficits. 
 
The Department of Education, in coordination with the DBM, COA, and OGCC, shall 
issue supplemental guidelines for the operationalization, procurement, implementation, 
and monitoring of the lease-to-own modality within ninety (90) days from the effectivity 
of this Act. 
 
 
SECTION 13. FUNDING.  
 
A Special Fund shall be established under DepEd to finance lease agreements. 
Sources of the fund shall include:  
 
A.​
Annual appropriations under the GAA; 
10 
 


B.​
Reallocated QRF or special education funds; 
C.​
Public-Private Partnership grants or donations. 
To implement the EduLease Program, an annual appropriation of Ten Billion Pesos 
(PhP 10,000,000,000) shall be included in the General Appropriations Act (GAA). The 
following breakdown shall guide the allocation and disbursement of funds: 
 
 
Category 
Allocation 
(%) 
Amount (PHP) 
            Purpose 
(a) Lease Payments 70% 
₱7,000,000,000 
Lease of private 
classrooms,   labs, facilities 
(based on average sqm 
rates) 
(b) Monitoring & 
Evaluation 
10% 
₱1,000,000,000 
Personnel, digital tracking, 
reporting systems 
(c) Retrofitting & 
Upgrading 
8% 
₱800,000,000 
Ensure safety, accessibility, 
utilities 
(d) Capacity Building 
& Orientation 
5% 
₱500,000,000 
Training for DepEd, LGUs, 
and private partners 
(e) Emergency 
Contingency 
Reserve 
5% 
₱500,000,000 
Rapid response to facility 
disruptions 
(f) Info & Awareness 
Campaign 
2% 
₱200,000,000 
Print, digital, and community 
campaign materials 
 
 
This fund is based on an estimated initial target of 1 million students affected by 
infrastructure gaps. The PhP 7 billion for lease payments can cover approximately 
11 
 


28,000 classrooms annually at an average of PhP 250,000 per room per year. The fund 
shall be reviewed annually and adjusted as needed based on program scale and 
performance metrics. 
 
All appropriations shall be subject to audit by the Commission on Audit (COA), and 
annual reporting shall be submitted to Congress to ensure transparency and 
accountability in program implementation. 
 
 
SECTION 14. MONITORING AND EVALUATION.  
 
An inter-agency Oversight Committee shall monitor implementation, publish annual 
lease utilization reports, and make policy recommendations to Congress. 
 
 
SECTION 15. IMPLEMENTING RULES AND REGULATIONS.  
 
Within six (6) months from the effectivity of this Act, the DepEd shall formulate and 
promulgate the necessary rules and regulations to effectively implement the provisions 
of this Act. 
 
 
SECTION 16. SEPARABILITY CLAUSE.  
 
If any provision of this Act is declared invalid or unconstitutional, the provisions not 
affected thereby shall remain in full force and effect. 
 
 
SECTION 17. REPEALING CLAUSE.  
 
All laws, executive orders, proclamations, rules, regulations, and other issuances or 
parts inconsistent with the provisions of this Act are hereby repealed or amended 
accordingly. 
 
 
SECTION 18. EFFECTIVITY.  
 
This Act shall take effect fifteen (15) days following its complete publication in the 
Official Gazette or a newspaper of general circulation. 
 
 
 
Approved, 
 
 
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