SEVENTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES )
First Regular Session

© one: FEB 06 2017
VME;

HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B. Rodriquez, .
House Bill No. 4963
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 volcano. 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

WM

MAXIMO B. RODRIGUEZ, JR


SEVENTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session

HOUSE OF REPRESENTATIVES

House Bill No. 4963

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
Act”.

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,
@ 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, 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;

(b) 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


(c)

(e)

(h)

0)

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 litle 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;

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;

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:

To sue and be sued;

To adopt and use a corporate seal with judicial notice;

To undertake the programs and projects specified in Section 4 hereof;

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;

1. 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
oF 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, ina 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.

aco


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 naturatbom 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
tule, 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.
7 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 piantilla and appoint officials and employees below the rank of
division heads, to positions in the approved budget upon written
recommendations of the division head concemed, 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,