Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOUSE BILLNO.__604

Introduced by HON. EDGAR M. CHATTO
First District, Bohol

EXPLANATORY NOTE

The total Philippine road network spans 217,643.57 kilometers, 15% of which are
National Roads under the auspices of the Department of Public Works and Highways.
Meanwhile, 85% of the total Philippine road network are local roads, of which 31,786 km. or

15% of are provincial roads.

It has been highlighted in various studies* that a well-connected local road network
in good condition is pivotal to the timely movement of people and transport of goods, thus,
is crucial to the sustained social and economical progress and development of individual
localities, and ultimately, the whole country.

One of the priorities of the National Government since the devolution of
responsibility for local road management to Local Government Units through the Local
Government Code in the 90s is to help address the poor state of local roads in the country,
as a result of more than two decades of underinvestment.

A road user — whether an investor, a business person, or an ordinary citizen will not
distinguish the experience of passing through a road based on administrative classification.
While 99% of the national road network is already concreted, it is therefore important to
equally improve the condition of local roads along with the continuous improvement of
national roads

‘The Philippine Institute for Development Studies, the World Bank, and the Asian
Development Bank has cited in various studies' the “missing middle” phenomenon in our
roads network, because of the poor quality of local roads and its lack of connectivity with
national roads. The PSID also highlighted that underinvestment in local roads is brought
about by various factors, including the capacities of LGUs in planning and budgeting and
the lack of a good local road inventory.

Since 2001, funding for the maintenance, traffic management, and road safety
devised of provincial and city roads have been provided by the National Government under
the Special Local Road Fund (SLRF). The fund is 5% of the Motor Vehicle Users Charge
(MVUC) or the fees collected by the Land Transportation Office (LTO) from road users and
is apportioned to cities and provinces according to their road length and vehicle population.
However, the average fund per year per local government unit (LGU) under SLRF only
averages P 10 Million, a little over half the cost of repairs for one kilometer of concrete road.
‘Also, the SLRF does not provide for capacity strengthening activities for the LGUs on local
road management and public financial management, which will enable the sustained
development and maintenance of local roads.

In 2016, a Program called Konkreto at Ayos na Lansangan ang Daan Tungo sa
Pangkalahatang Kaunlaran or KALSADA which in the following year transitioned to
Conditional Matching Grant to Provinces for Road and Bridge Repair, Rehabilitation, and


Improvement or CMGP was developed by the Department of the Interior and Local
Government, in partnership with the League of Provinces of the Philippines (LPP), to assist
the Provincial Governments in upgrading and maintaining their respective provincial and
local roads.

‘The CMGP Program provides funds for the repair, rehabilitation, and improvement
of core provincial roads and bridges, and provides assistance to Provincial Governments in
developing and enriching their capacities in local road management through coaching,
mentoring, trainings, and workshops, as well as in developing and introducing road
management systems and tools, The capacity development component is to ensure that the
Provincial Governments will have sufficient capacity and the adequate resources to
continuously develop and maintain these roads in excellent condition. CMGP also ensures
that the projects taken under the Program will be implemented in good quality. The annual
funding requirements for the institutionalization of the CMGP is, therefore, proposed and is
subject to approval under the General Appropriations Act yearly.

With the extent of local roads that are still in poor-to-bad condition, its recognition
as a vital component for local and nationwide socio-economic progress, and the perineal
issue of government units on where to source the fund for road construction,
improvement, and maintenance, this bill seeks to completely and continuously fill the
investment and capacity gap in national-local roads connectivity.

This bill institutionalizes the provision of support from the National Government for
funding of provincial and local road works to all Provincial Governments annually, as well
as the provision of capacity development and quality assurance measures for local road
management, to provide for and ensure the continuous development, improvement, and
maintenance in optimal condition of the local road network.

‘The annual allocation for provincial and local road works and capacity development
will augment the resources for under-provided devolved services, in this case local road
management, and provide funding for the sustained implementation of the road works
identified by the Provincial Governments in their Local Road Network Development Plans,
and maintenance of their identified roads under their local road life cycle asset management
document.

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

) ih
ED* . CHATTO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No, 604

Introduced by HON. EDGAR M. CHATTO
| First District, Bohol
i
AN ACT
PROVIDING FOR THE INSTITUTIONALIZATION OF THE CONDITIONAL
MATCHING GRANT TO PROVINCES (CMGP)
FOR LOCAL ROAD AND BRIDGE REPAIR, REHABILITATION
AND IMPROVEMENT

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

SECTION 1. Title. - This Act shall be known as the “Local Road Repair,
Rehabilitation, and Improvement or CMGP Act of 2022.”

SEC. 2. Declaration of Principles. - It is hereby declared the policy of the State
that Local Government Units shall be responsible for providing basic services and facilities,
such as local roads and bridges, and that the higher forms of governments shall provide or
augment such services and facilities assigned to a lower level of local government unit when
these are not made available or, if made available, are inadequate to meet the requirements
of its inhabitants.

SEC. 3. Definition of Terms. — The following terms, as used in this Act, shall mean
as follows:

a. Local Road Management involves planning, prioritizing, and sustainably
managing the local road network in consideration of the envisioned socio-
economic development of the local government unit.

b. Local Roads in this document shall refer to provincial, component cities,
municipal and barangay roads or roads that (i) connect component cities and
municipalities without traversing National Roads; (fi) connect national roads to
barangays through rural areas, and (iii) connect to major provincial government
infrastructure.

c. Core Local Roads minimum road network required to support economic and
social development by providing linkages between the majority of population and
the basic services and facilities within the province. Core roads also serve as the
primary drivers of local economic growth

d. Local Road Network Development Plan - a transparent and predictable
multi-year development program of local road networks, including provincial,
component city, municipal, and barangay roads, that need to be improved or
rehabilitated in the next five years to support local economic drivers, particularly
agriculture, trade, logistics, and tourism hubs


SEC. 4. The Conditional Matching Grant to Provinces (CMGP) Program. —
‘There is hereby established a regular National Government Program to be known as the
Conditional Matching Grant to Provinces (CMGP) Program. CMGP shall annually (i)
apportion funds for the repair, rehabilitation, and improvement of core provincial,
component city, municipal, and barangay roads by the Provincial Government, as identified
in the Province’s Local Road Network Development Plan; (ii) provide capacity development
activities and develop and roll-out systems and tools for the improvement of the provinces’
local road management; (iii) administer the funds apportioned to the Provincial
Governments} (iv) safeguard the fund downloaded annually directly to the Provincial
Governments, CMGP shall be managed under the Department of the Interior and Local
Government, the Department being the National Government Agency that is mandated to
strengthen local government capability aimed towards the effective delivery of basic
services to the citizenry, in partnership with the League of Provinces of the Philippines
(LPP). Its principal flag office shall be in Metro Manila, but it may establish other branches
or offices elsewhere in the Philippines as may be necessary or proper for the
accomplishment of its purposes and objectives.

SEC. 5, Powers and Functions. - The CMGP Program shall be a partnership
program of the Department of the Interior and Local Government and the Department of
Budget and Management and the League of Provinces of the Philippines (LPP) for
Provincial Gavernments. The aforementioned entities shall have the following powers and
functions:

a. The Department of the Interior and Local Government (DILG) shall:

1. administer the funds and oversee the operations of the CMGP Program;

2. monitor the Provincial Governments’ compliance with the provisions of the
IRR of the CMGP Program, and shall set-up a database of the Provincial
Governments’ performances;

3. organize and develop continuing training programs, coaching, and mentoring
for Provincial Governments on Local Road Management and Public Financial
Management;

4. continuously develop tools and systems for Local Government Units that will
support the continuous development and improvement in the management of
local roads;

5. plan and carry out research and development activities as a center of
knowledge and services in the area of local road management;

6. develop a set of criteria for the annual allocation of funds provided by the
National Government for the repair, rehabilitation, and improvement of local
roads to be approved by the Program Steering Committee;

7. formulate policies that would support the efficient implementation of the
Program and achievement of the Program’s goals and objectives, for approval
and concurrence of the Steering Committee;

8. forge partnerships with, and receive from any person and/or government and
private entities, whether foreign or domestic, services relevant to the purpose
‘and objectives of the Program; and

9. as the lead implementor of the Program, exercise such other powers and
functions, and perform other acts as may be necessary, proper, or incidental to
the attainment of its purposes and objectives.

'b. The Department of Budget and Management (DBM) shall:

1. Issue the Special Allotment Release Order (SARO) and NCA and coordinate
with the BTr for the direct download of funds to the provinces;

2. Assist the Provincial Governments in matters relevant to Public Financial
Management; and


3. continuously develop tools and systems for Local Government Units that will
support the continuous development and improvement in the management of
public finances.

c. The Provincial Governments shall:

1. Undertake the implementation of provincial and local road works subject to
the provisions of the CMGP IRR;

2. Undertake the implementation of road works on its component city, municipal
and barangay roads as identified in the Local Road Network Development
Plan and in coordination with the component city, municipal and barangay

sovernment units;

3. Provide capacity development to the Component City, Municipal and

arangay Governments under its territorial jurisdiction on Local Road
Management and Public Financial Management; and

4. Directly coordinate with the concerned national government agencies or

through the League of Provinces of the Philippines.

‘The Provincial Government may undertake road works under its respective
component cities, municipalities and barangays by administration.

d. The League of Provinces of the Philippines (LPP) shall:

1. Assist the national government in the formulation and implementation of the
CMGP policies, programs and projects affecting provinces as a whole;

2. Encourage people's participation in CMGP planning and implementation in
order to promote united and concerted action for the attainment of
countrywide employment within the province;

3. Serve as a forum for crystallizing and expressing ideas to further enhance the
CMGP program, seeking the necessary technical assistance of both the
national government and the private sector avenues for cooperation in its
promotion;

4. Exercise such other powers and perform such other duties and functions as
the league may prescribe for the welfare of the provinces.

‘The LPP is the duly recognized organization of all Provinces under Sec. 502,
Article IV of RA 7160, or the 1991 Local Government Code under, “for the primary
purpose of ventilating, articulating and crystallizing issues affecting provincial
government administration, and securing, through proper and legal means,
solutions thereto”.

SEC. 6. CMGP Program Steering Committee. — The governance and policy
direction of the CMGP Program shall be vested in, and its powers exercised by, a Program
Steering Committee, which shall be composed of seven members, as follows:

a. The Undersecretary for Local Government of the Department of the Interior and
Local Government, as Chairman;
b. The President or Secretary General of the League of Provinces of the Philippines;
c. The Undersecretary for Local Government and Regional Operations Group of the
Department of Budget and Management;
|. The Undersecretary for Budget Preparation and Execution Group;
.. The Undersecretary for Investment Programming of the National Economic and
Development Authority;
: The Undersecretary for Planning and Public-Private Partnership of the
Department of Public Works and Highways; and
g. The Undersecretary for Domestic Finance Group and Legislative Liaison or the
Executive Director of the Bureau of Local Government Finance of the Department
of Finance.

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SEC. 7. Functions and Responsibilities of the Committee. — The Committee
shall have the following functions:

a. To formulate and adopt policies and measures for the management and operation
of the Program after prior consultation with the Provinces through its League of
Provinces of the Philippines (LPP);

b. The DILG, as the Chairman of the Committee, shall approve the staffing pattern
of the CMGP Program Management Office;

c. To promulgate rules and regulations for the discharge of its powers and functions
and the internal operations of the CMGP Program Management Office; provided
that the Chairman of the Committee shall exercise the power to appoint, promote,
discipline, or remove the personnel of the CMGP Program;

d. To oversee the financial affairs of the CMGP Program according to its
requirements; and

e. To periodically monitor and review the operations and accomplishments of the

Program.

SEC, 8. Management and Staffing of the Program. — The Program shall be
led by a Program Manager that is engaged by the Department of the Interior and Local
Government, and shall receive such salary and remuneration as may be determined by the
Committee Chairman. The Program Manager shall be responsible for forming a team for
carrying-out Program operations, project monitoring, technical assistance, and capacity
development to Provincial Governments. The competencies, salaries, and compensations of
the Program staff shall likewise be evaluated and determined by the Committee Chair. The
Executive Director of the League of Provinces of the Philippines (LPP) shall be part of the
CMGP Program Management Office to ensure close coordination with the Provincial
Governors.

SEC. 9. Government Coordination. - The CMGP Program Management Office
shall assist, cooperate, and coordinate with other government agencies for the
implementation of the purposes and objectives of this Act.

SEC. 10. Appropriations. - The amount necessary to carry out the provisions of
this Act shall be included in the General Appropriations Act of the year following its
enactment into law and thereafter.

SEC. 11. Implementing Rules and Regulations. — Within thirty (30) days from
the completion of their appointments, the Program Steering Committee shall convene, and
with the existing CMGP Program Management Office, and the Office of the Project
Development Services where the Program is lodged, shall review the Program guidelines,
and improve and amend the rules and regulations, as necessary, for the implementation of
this Act. The revised rules and regulations shall be issued within one hundred eighty (180)
days from the date of the Committee's initial meeting and shall take effect upon publication
in a newspaper of general circulation.

SEC. 12. Repealing Clause. ~ All laws, executive orders, presidential decrees,
presidential proclamations, letters of instruction, rules and regulations or parts thereof
which are inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.

SEC. 13. Separability Clause. — If any provision of this Act is declared
unconstitutional or invalid, other parts of provisions hereof not affected thereby shall
continue to be in full force and effect.

SEC. 14. Effectivity. — This shall take effect fifteen (15) days following its
publication in the Official Gazette, or in two (2) newspapers of general circulation in the
Philippines.

Approved,