O4 as
‘3 RECEIVED 2)

Republic of the Philippines
oarUL_2 5 2019

HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House BILL No. 2911

Introduced by Rep. Precious Hipolito Castelo

EXPLANATORY NOTE

A local government unit, under the Local Government Code of 1991, is given such wide
latitude to exercise power and authority on nearly every matter germane to its continued,
viable, and robust existence.

In its Western original context, LGUs started off as municipal corporations that even in more
contemporary times, they need not cease to be so. As corporations, they provide goods and
services to the population within their area of business operation.

Nothing is wrong with running the corporate affairs of the local government unit akin to any
best practice model, local or foreign provided that it is a creative approach to source much
needed revenues to place the ship of the local state in an even keel during turbulent
economic times.

This bill subscribes to the view that LGUs, as ‘corporations,’ may engage in business,
economic enterprise, or investment of a nature that will generate additional revenue that
would accrue to the LGUs.

The Government of Singapore Investment Corporation is a case in point. It can be
replicated in the Philippines just like any other viable investment scheme with a well-studied
rate of return on Investment (ROI).

To the extent that this proposed measure allows LGUs some degree of freedom and
independence in pursuing ‘private commercial and service enterprises,’ as the case may be,
the principle stands that it should be generally consistent with the local development plan
and the corresponding public investment program of that LGU.

Let this bill open ‘windows of opportunity’ in the realm pfinvestment, hence its passage is
most earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO.2911

Introduced by Rep. Precious Hipolito Castelo

AN ACT
AUTHORIZING A LOCAL GOVERNMENT UNIT TO CREAT A CORPORATE ENTITY
AND/OR AUTHORITY TO ATTRACT DOMESTIC AND FOREIGN INVESTMENT TO
GENERATE ADDITIONAL SOURCE OF REVENUE AND FOR OTHER PURPOSES

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

SECTION 1. Every local government unit is hereby authorized to create a corporate
entity and/or authority to attract domestic and foreign investment to generate additional
source of revenue provided however that this is consistent with the local development plan
and the public investment program.

SEC. 2. The enabling policy framework for LGUs to engage in business economic
enterprise and investment as otherwise allowed by the Constitution, the Local Government
Code and the Corporation Code is hereinafter provided by this Act

SEC. 3. The Department of Interior and Local Government shall issue appropriate
tules and regulations to effectively carry out the provision of this Act.

SEC. 4, All issuances, laws, decrees, orders, rules and regulations or parts thereof
not consistent with this Act are hereby repealed or modified accordingly.

SEC. 5. This Act shall take effect thirty (30) days after its publication in the Official
Gazette and in at least two (2) newspapers of general circulation.

Approved,