SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Representative Rufus B. Rodriguez

House Bill No, 2457
EXPLANATORY NOTE

This bill seeks to establish a governmental body that would oversee and
implement the growth and development of one of the largest lakes in the
Philippines, Lake Lanao in Lanao del Sur

Lake Lanao is the second largest freshwater lake in the Philippines. It is
located in the Province of Lanao del Sur, at 701.35 meters above sea level. It
has an area of 354.60 square kilometers and a mean depth of 60 meters, with
the deepest part at 112 meters. The lake was formed by the tectonic-volcanic
damming of a basin between two mountain ranges and the collapse of a large
voleano. The basin is shallowest towards the north and gets progressively
deeper towards the south

The lake is home to 18 endemic species of freshwater fish and supports
a large number of waterfowl, The lake is fed by four rivers. Its only outlet is the
Agus River, which flows southwest into lligan Bay via two channels, one over
the Maria Cristina Falls and the other over the Linamon Falls. A hydroelectric
plant installed on the Lanao Lake and Agus River system generates 70% of the
electricity used by the people of Mindanao. Lake Lanao Is also a major source
of livelihood among fisherfolks in the surrounding cities and municipalities of
the lake.

Because of its economic benefits and environmental importance to the
people of Lanao, it is important that we ensure the proper utilization,
sustainable development and preservation of Lake Lanao. This proposed
measure seeks to do that by creating a centralized governmental agency
tasked to oversee and implement the over-all development of Lake Lanao and
its surrounding areas.

The Lake Lanao Development Authority shall make and implement a
comprehensive development plan designed to promote the rapid social and
economic development of Lake Lanao. The Authority shall be governed by a
Board of Directors who shall exercise the corporate powers granted under this
bill. Moreover, the Authority is tasked to establish research centers to
undertake studies on the marine and natural resources of Lake Lanao for policy
or plan formulation, Finally, the Authority shall be exempt from taxes imposed


by the national government to allow it to maximize the use of its funds for the
development of Lake Lanao.

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

Yi

MAXIMO B. RODRIGUEZ, JR

‘
RUFUS B. —


SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

‘HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B. Rodriguez, Jr. and
Representative Rufus B. Rodriguez

House Bill No. 2497

AN ACT
CREATING THE LAKE LANAO DEVELOPMENT AUTHORITY, DEFINING
ITS POWERS, FUNCTIONS AND DUTIES, AND FOR OTHER PURPOSES

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

SECTION 1. Title, - This Act shall be known as the “Lake Lanao
Development Authority of 2013”.

SEC. 2. Declaration of Policy — It is hereby declared a policy of the State
to promote and accelerate the development and balanced growth of Lake
Lanao and its surrounding cities and municipalities, within the context of
national plans and policies for sustainable development, with due regard and
adequate provisions for environmental management and control, preservation
of the quality of human life and ecological systems, and the prevention of
undue ecological disturbances, deterioration and pollution

For purposes of this act, the Lake Lanao Development Authority created
under Section 3 of this Act shall identify the surrounding cities and
municipalities, which shall be known as the ‘Area’

SEC. 3. Creation of the Lake Lanao Development Authority. — To
effectively carry out the declared policy, there is hereby created under the
Office of the President of the Philippines, a body corporate to be known as the
Lake Lanao Development Authority hereinafter referred to as the Authority

SEC. 4, Powers and Functions of the Authority. - The Authority shall
have the following purposes and functions

(a) To make a comprehensive survey of the physical and natural
resources and potentialities of Lake Lanao and the Area, particularly
its social and economic conditions, hydrologic characteristics, power
potentials, scenic and tourist spots, conservation of water resources
and such other areas of concerns, and on the basis thereof, to craft a
comprehensive and detailed Lake, Lanao Development Plan to
promote its rapid social and economic development; Provided, that,


(b)

(a)

(e)

the implementation of all fisheries plans and programs of the
Authority shall require prior consultation with the Bureau of Aquatic
Resources to ensure that such plans and programs are consistent
with national fisheries plans and programs;

To pass upon and approve all plans, programs and projects
proposed by local government units, public corporations and private
entities that is related to the utilization of the resources and the
development of Lake Lanao and the Area, and monitor the proper
implementation of said plans, programs and projects, consistent with
the objectives and purposes of this Act, With mandatory prior
consultation. with the Department of Environment and Natural
Resources (DENR), the Authority shall issue the necessary permit for
approved plans, programs and projects, Provided, That, any
application for permit that has been disapproved by the Authority
may be appealed to the Office of the President within fifteen (15)
days from receipt of such disapproval, whose decision shall be final;

To hamess and promote private participation in business ventures in
terms of capital expenditures, land, expertise, financing and their
facilities for the development and growth of the Area;

To plan, program, finance and/or undertake infrastructure projects
such as river, flood and tide control works, waster water and
sewerage works, water supply, roads, pot works, irrigation, housing
and related works when so required within the context of its
development plans and programs, including the readjustment,
relocation or restoration, or resettlement of population, as may be
deemed necessary and beneficial by the Authority: Provided, That,
should any project be financed wholly or in part by the Authority, it is
hereby authorized to collect reasonable fees and tolls as may be
fixed by its Board of Directors from users and/or beneficiaries thereof
to recover costs of construction, operation and maintenance of the
projects: Provided, Further, That if the Authority should find it
necessary to undertake such infrastructure project as social
overhead capital projects, the Authority shall be authorized to receive
financial assistance from the government and foreign donors, subject
to such terms and conditions that may be imposed by the
Government;

To reclaim or cause to be reclaimed portions of Lake Lanao or
undertake reclamation projects and/or acquire such bodies of land
from the Lake which may be necessary to accomplish the aims and
purposes of the Authority; Provided, That, the land so reclaimed shall
be the property of the Authority and title thereto shall be vested in the
Authority: Provided, further, That the resulting lakeshore area shall
continue to be owned by the National Government;

To establish research centers to undertake studies on the marine
and other natural resources of Lake Lanao for policy or plan
formation and project implementation;


(9) To exercise’ exclusive jurisdiction to issue new permit for the use of
the lake waters for any projects, including navigation, construction,
operation of fish pens, fish enclosures, fish corral and the like, and to
impose necessary safeguard for lake quality control and
management and to collect necessary fees for said activities and
projects: Provided, That, the Authority's Board may determine new
areas of fishery development or activities, taking into account the
over-all development plans and programs for Lake Lanao: Provided,
further, that the Authority shall, subject to the approval of the
President of the Philippines, promulgate such rules and regulations
which shall govern fisheries development activities in Lake Lanao,
including the advisability of placing the supervision of said activities
under the Bureau of Fisheries and Aquatic Resources of the local
government units in the Area;

(h) To require the cities and municipalities embraced within the area to
pass appropriate zoning ordinances and regulatory measures to
carry out the objectives of the Authority and to enforce the same with
the assistance of the Authority;

() The provisions of existing laws to the contrary notwithstanding, to
exercise water rights over public water within the Lake Lanao area
whenever necessary to carry out the Authority's projects,

@) To promulgate and establish, in coordination with the Department of
Environment and Natural Resources and other existing government
agencies, water quality standards for industrial, agricultural and
municipal waste discharges into the Lake and to ensure the
cooperation of said existing agencies of the Government in enforcing
such standards; and

(k) To undertake studies on the improvement and maintenance of the
desirable water quality of Lake Lanao, and in pursuance thereof,
prepare a water quality management program on a continuing basis,
which the Authority shall carry out with the assistance and support of
the national and local government units involved in water quality
management.

Sec. 5. Corporate Powers. - The Authority shall exercise the following
powers and functions:

a, To sue and be sued;

b. To adopt and use a corporate seal with judicial notice;

c. To undertake the programs and projects specified in Section 4
hereof,

d. To engage in agricultural, industrial and commercial or other
activities necessary or directly contributory to the socio-economic
development of the Area, and, for this purpose, whether by itself
or in cooperation with private entities, to organize, finance, invest
in, and ‘operate subsidiary corporations: Provided, That, the


Authority shall engage only, unless public interest requires
otherwise, in those activities as are in the nature of new ventures
or are clearly beyond the scope, capacity or interest of private
enterprises; :

e. To invest in or otherwise acquire, own, hold, use, operate, sell,
assign, transfer, exchange, mortgage, pledge, lease, develop or
otherwise deal in, real property of every kind and description,
including shares of stock, bonds, debentures, notes, evidence of
indebtedness, and other securities;

f. To exercise the right of eminent domain or acquire by purchase,
privately-owned land within the area for purposes of implementing
projects of the Authority;

g. To borrow funds from any local or foreign financial institutions
independent of the bonds it may issue to carry out the purposes
of the authority;

h. To acquire, lease, or own such property or assets in whatever
form and serve as the custodian of such properties or assets, real
or movable, and sell or otherwise dispose of the same as the
Authority may deem it necessary in the pursuit of its aims.
objectives and purposes;

i. To lend or facilitate the extension of financial assistance and/or
act as surety or guarantor to worthwhile agricultural, industrial and
commercial enterprises;

|. To accept grants, donations, gifts, bequests, funds and/or
properties in whatever form and whatever source in coordination
with the appropriate agency and administer the same in
accordance with the terms thereof, or in the absence of any
condition, in such manner consistent with the policy, aims and
objectives of the Authority provided for in this Act,

k. To enter into a contract of any kind and description to enable it to
carry out its purposes and objectives;

|. To issue such rules and regulations as may be necessary to
effectively carry out the powers and purposes herein provided,
including plans, programs and projects of the Authority, the same
to take effect thirty (30) days after publication thereof, in a
newspaper of general circulation; and

m, For the purposes of attaining or in furtherance of any of its
objectives, to perform any and all acts which a corporation, co-
partnership, or natural person is authorized to perform under the
laws existing or which may be enacted hereafter.

Sec. 6. Capitalization. - The Authority shall have an authorized capital of
two billion pesos (2,000,000,000 Php) no par value shares, of which the
amount of one billion pesos (1,000,000,000 Php) shall be subscribed by the
provinces, cities, and municipalities in the Area and at least twenty-five percent
(25%) shall be subscribed by the National Government

Sec. 7. Power to incur Debts and to Issue Bonds. - Whenever the Board
of Directors may deem it necessary for the Authority to incur an indebtedness
or to issue bonds to carry out the provisions of this Act, it shall, by resolution,
so declare and state the purposes for which the proposed debt is to be


incurred. The resolution shall be passed by the affirmative vote of at least four
(4) members of the Board and approved by the President of the Philippines
upon the recommendation of the Secretary of Finance in consultation with the
National Economic Development Authority (NEDA) and the Monetary Board.

Sec. 8. Tax Exemption. - The Authority shall be exempt from payment
of all taxes imposed by the National Government, its provinces, cities,
municipalities and other government agencies and instrumentalities: Provided,
That, its subsidiary corporations shall be subject to all said taxes five (5) years
after their establishment under a graduated, scale. Such exemption shall
include any tax or fee imposed by the Government on the sale, purchase or
transfer of foreign exchange and all notes, bonds, and debentures, and other
obligations issued by the Authority, both as to the principal and interest,

Sec. 9. Governing Body. - The corporate powers and functions of the
Authority shall be vested in and exercised by a Board of Directors, hereinafter
referred to as the Board, which shall be composed of a Chairman and six (6)
members, to be appointed by the President of the Philippines who shall serve
for a term of six (6) years, unless sooner removed from or is incapacitated to
perform functions of the office; Provided, That, a majority of the members of the
Board must be residents of Lanao del Sur and Lanao del Norte

In case of any vacancy in the Board, the same shall be filled by the
President of the Philippines for the unexpired term

No person shall be appointed as Chairman or member of the Board, or
as General Manager, unless he is a natural-born citizen of the Philippines, at
least thirty (30) years of age and of proven probity and integrity. In addition, the
General Manager shall likewise have demonstrated executive competence and
experience in the field of public administration or the management of
agricultural, industrial’ or commercial enterprises and knowledgeable of the
socio-economic conditions of Lake Lanao and its surrounding cities and
municipalities

Sec. 10. Prohibition against Conflict of interest. - No member of the
Board shall be financially interested, directly or indirectly, in any contract
entered into by the Authority or in any special privilege granted by the Authority
during his term of office. All contracts entered into in violation of the provision
of this Section shall, by two-thirds (2/3) vote of the Board, automatically be
disqualified from serving his unexpired term, and he shall furthermore be
perpetually disqualified for membership in the said Board.

Sec. 11. Compensation. - The General Manager shall receive
compensation in accordance with the Compensation and Position Classification
Act of 1998 and shall not engage in any business, calling or profession during
his term of office other than those connected with the performance of his official
functions and duties,

The members of the Board shall receive, for every meeting actually
attended, a per diem of two thousand pesos (2,000 Php): Provided that, such
per diem shall not exceed six thousand pesos (6,000 Php) during any month for


each member. Members of the Board shall be reimbursed by the Authority for
actual expenses (including traveling and subsistence expenses) incurred by
them in the performance of their duties for the Authority as may be specifically
authorized by the Board.

Sec. 12. Quorum. - The presence of four (4) members of the Board,
including the Chairman or Vice-Chairman, shall constitute a quorum for the
transaction of the business of the Board.

Sec. 13. Meetings of the Board. ~ The Board shall meet preferably at its
principal office at least once a month and as frequently as necessary to
discharge its duties and responsibilities properly. The Board shall be convened
by the Chairman or upon the written request of a majority of its members.
Except when otherwise provided for in this Act, the vote of a majority of the
members constituting a quorum shall be sufficient for the adoption of any rule,
resolution, decision or any act of the Board

Sec. 14. Powers and Functions of the Board. ~ The Board shall have the
following powers and functions

a. To formulate, prescribe, amend and repeal rules and regulations
to govern the conduct of business of the Authority;

b. To appoint and fix the compensation of all officials from division
heads and above, and others of comparable rank, including the
Assistant General Manager;

c. By a majority vote of all members of the Board, suspend, remove
or otherwise discipline for just cause all officials appointed by the
Board;

d. To approve the annual and/or supplemental budgets of the
Authority;

e. To render annual reports to the President and such special
reports as may be requested; and

f To do such other acts and perform such other functions as may
be necessary to carry out the provisions of this Act

Sec. 15. Powers and Functions of the General Manager. - The General
Manager shall be the chief executive of the Authority, as such, he or she shall
have the following powers and functions:
a. To submit, for the consideration of the Board, the policies and
measures which he or she believes to be necessary to carry out
the purposes and provisions of this Act;

b. Execute and administer the policies, plans, programs and projects
approved by the Board;
C. Direct and supervise the operation and internal administration of

the Authority. The General Manager may delegate some of his or
her administrative responsibilities to other officers of the Authority
subject to the rules and regulations of the Board;

d. Prepare the annual budget of the Authority for the consideration
of the Board;

e. Prepare the plantilla and appoint officials and employees below
the rank of division heads, to positions in the approved budget


upon written recommendations of the division head concermed,
using as a guide the standard set forth and such other reports as
may be required:

f. Exercise such other powers as may be vested in him by the
Board.

Sec. 16. Representation of the Authority. - The General Manager shall
be the principal representative of the Authority, He shall be empowered, in such
capacity and in accordance with the instructions of the Board

a. To represent the Authority in all dealings with other offices, agencies,
and instrumentalities of the Government and will all other persons and
entities, whether public or private domestic, foreign or international;

b. To sign contracts concluded by the Authority, annual reports, balance
sheets, profit and loss statements, correspondences and other
documents of the Authority; and

¢. To represent the Authority, either personally or through counsel, in any
legal proceedings or actions.

Sec. 17. Departments. - There shall be created the following
departments within the authority: the Administrative, Legal, Operations,
Financial and Management, Auditing, Planning and Programming, and such
other department as may be necessary to effectively carry out the functions of
the Authority. The head of each Department shall be appointed by the Board
upon recommendation of the General Manager, and shall receive an annual
compensation as may.be fixed by the Board

Sec. 18. Auditing. - The auditing department shall be headed by the
duly appointed representative of the Commission on Audit whose salary shall
be determined and paid according to law. All personnel of the auditing
department shall be appointed, and their number and salaries fixed by the
Commission on Audit.

Sec. 19. Appropriations. - The sum of fifty million pesos (50,000,000
Php) necessary for the initial operating expenses of the Authority is hereby
charged to the appropriations authorized for the Regional Development Fund.
Thereafter, the sum necessary for the continued operation and maintenance of
the Authority shall be included in the annual budget of the Office of the
President. ‘

SEC. 20. Repealing Clause. - All republic acts, executive orders, rules
and regulations, and other issuances, or parts thereof, that are inconsistent
with the provisions of this Republic Act are hereby repealed or modified
accordingly.

SEC. 21. Separability Clause. - ‘If for any reason or reasons, any part
or provision of this Act shall be declared or held to be unconstitutional or invalid
other parts or provisions hereof, which are not affected thereby shall continue
to be in full force and effect,


SEC. 22. Effectivity Clause. - This Act shall take effect fifteen (15)

days after its publication in the Official Gazette or in at least two (2) national
newspapers of general circulation

Approved,