Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 1310

—_

Introduced by Honorable Wes Gatchalian

—_—

AN ACT
INSTITUTIONALIZING THE NATIONAL ECONOMIC AND
DEVELOPMENT AUTHORITY AS THE INDEPENDENT ECONOMIC ‘AND
PLANNING AGENCY OF THE PHILIPPINE GOVERNMENT, DEFINING
ITS FUNCTIONS AND AMENDING EXECUTIVE ORDER NO. 230 SERIES
OF 1987, AS AMENDED, APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES

EXPLANATORY NOTE

The vision of this landmark legislation is to instill a culture of
planning in the formulation and implementation of the country’s economic
and development policies — and emphasizes the importance of participatory
planning by expanding stakeholder participation through various stages.
The Act institutionalizes the National Economic and Development
Authority (NEDA) as a lead integrator of economic development programs
and policies to achieve the following objectives: (1) facilitate the planning,
collaboration, and coordination among the relevant government agencies; (2)
improve access to national program information, data, and funding
opportunities, support research of leading edge, world class economic
development practices and information dissemination efforts; (3) ensure that

economic resources are aligned and invested in support of identified and


well-defined timely strategies and projects in non-duplicative activities; (4)
encourage strategic investments that strengthen competitiveness and foster
job creation; (5) promote energy independence, help fight poverty and build
prosperity for the greatest number of Filipinos; and, (6) produce
transformational economic diversification and workforce development
outcomes for our country’s long-term sustainable economic future.

It seeks to institutionalize a new and truly independent department
that will implement long-term, continuing, integrated, and coordinated
programs and policies for national development. It will also enhance
decentralization and strengthen the autonomy of units within the various
regions of the country to accelerate their economic and social growth and
development. Distressed communities will thus be empowered to revitalize,
expand, and upgrade their physical infrastructures to attract new
industries, encourage business expansion in the countryside, diversify local
economics, and generate or retain long-term private sector jobs and
investments.

The passage of this legislation is earnestly sought.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 1310

CUES

Introduced by Honorable Wes Gatchalian

EU EEE

AN ACT
INSTITUTIONALIZING THE NATIONAL ECONOMIC AND
DEVELOPMENT AUTHORITY AS THE INDEPENDENT ECONOMIC AND
PLANNING AGENCY OF THE PHILIPPINE GOVERNMENT, DEFINING
ITS FUNCTIONS AND AMENDING EXECUTIVE ORDER NO. 230 SERIES
OF 1987, AS AMENDED, APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES

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

CHAPTER I
INSTITUTIONALIZATION AND ORGANIZATION OF THE NATIONAL
ECONOMIC AND DEVELOPMENT AUTHORITY

ARTICLE I.
POWERS AND FUNCTIONS OF THE NATIONAL ECONOMIC AND
DEVELOPMENT AUTHORITY

Section 1. Short Title. - This Act shall be known as the “The National

Economic and Development Authority Act of 2019.”

Sec. 2. Declaration of Policy. - The State shall adopt and implement

continuing integrated and coordinated long, medium, and short term


33

development plans and policies to achieve the following goals: full
employment towards sustainable and inclusive economic growth; equitable
distribution of opportunities, income, and wealth; and increased
productivity as a key to raising the quality of life for all. To this end, it is
recognized that the formulation of socioeconomic policies and plans is a vital
process that calls for the participation of the public and private sectors at
the national and sub-national levels. The formulation and adoption of these
policies and plans need to be coordinated and implemented by an
independent economic and planning agency, to be headed by the President,
to ensure the consistency of policies, plans and programs for national
development and the sustainable use of the nation’s resources.

Sec. 3. The National Economic and Development Authority. - There is
hereby established an independent economic and planning agency, which
shall be known as the National Economic and Development Authority,
hereafter referred to as NEDA.

Sec. 4. Powers and Functions. - The NEDA shall have the following
powers and functions:

(1) Formulate, in consultation with appropriate public agencies,
civil society organizations, non-government organizations, _people’s
organizations, the academe, the private sector, and local government units,
continuing integrated and coordinated policies, plans and programs for
national and regional development, such as, but not limited to:

(a) Long-term national development plans;

(b) Medium-term and short-term national and _ regional
development plans;

(c) Medium-term national and regional public investment
programs;

(d) National and regional physical framework plans; and

(e) Sectoral, inter-sectoral and spatial plans and programs.

(2) Ensure the harmonization of national and regional plans and
programs by prescribing standards, guidelines, and compliance and

2


accountability mechanisms towards continuing integrated and coordinated
programs and policies for national development;

(3) Help ensure and coordinate the integration of national, regional,
sub-national and spatial plans and programs for consistency and alignment
with the overall development objectives of the country;

(4) Prioritize policies and strategies, with corresponding programs,

activities and projects, and funding from the national government, official
development assistance (ODA), public-private partnerships (PPP), and other
viable sources of funding, as basis for budget expenditure policies and
budget formulation, in coordination with implementing agencies, and for
reporting to the NEDA Board and its committees;

(5) Monitor and evaluate national and regional programs and
projects of government, funded by the national government, official
development assistance, public-private partnerships, and other viable
sources of funding to ensure their proper implementation and the
achievement of goals for which such programs and projects were approved;

(6) Review, monitor and assess the impact of policies, regulations,
and programs of the government, and recommend to concerned government
agencies and instrumentalities strategies and measures, including proposed
legislation, in collaboration with the Philippine Institute of Development
Studies, as necessary, to achieve sectoral development goals;

(7) Recommend policies that would encourage investments to
ensure that the economic and business environments and regulatory
frameworks are consistent with the development agenda and plans of the
country; and

(8) Provide technical, advisory and secretariat support services to
the NEDA Board and its committees, the Regional Development Councils,
and other stakeholders.

ARTICLE II.
THE NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY BOARD


Sec. 5. Composition of the National Economic and Development
Authority Board (NEDA Board). - The powers and functions of the NEDA
shall reside in the NEDA Board, composed of eight (8) members:

(1) The President of the Philippines, who shall be the Chairperson
of the NEDA Board. Whenever the President is unable to attend a meeting of
the Board, the Vice-Chairperson shall act as Chairperson;

(2) The Secretary of NEDA, who shall be the Vice-Chairperson;

(3) The Secretary of Finance;

(4) The Secretary of Budget and Management;

(5) The Secretary of Interior and Local Government;

(6) The Secretary of Trade and Industry;

(7) The Secretary of Public Works and Highways; and

(8) The Governor of the Bangko Sentral ng Pilipinas (BSP), as a
resource institution.

All members of the NEDA Board, except the Governor of the BSP, are
voting members.

‘The presence of at least four voting members shall constitute a

quorum.

Sec. 6. Meetings. - The NEDA Board shall meet at least once every
quarter. The presence of four voting members shall constitute a quorum,
provided that in all cases the Secretary of NEDA shall be present.

A special meeting of the NEDA Board may be convened by the
President to address urgent concerns, or emergencies, such as natural
disasters, calamities, or other extraordinary circumstances which would
affect the economy and national development.

All decisions of the NEDA Board shall require the concurrence of at
least a majority of the voting members present at a meeting at which there is
a quorum.

The NEDA shall maintain and preserve a complete record of the
proceedings and deliberations of the NEDA Board, including the recordings
and transcripts, either in their original form, or in any secured digital

format.


SeocwmirdsH een e

12
13
14
15
16
17
18

20
21
2
2B
24
25
26
27
28
29
30
31

Sec. 7. Withdrawal of Persons Having a Personal Interest. - In addition
to the requirements of Republic Act (RA) No. 6713, any member of the NEDA
Board with personal or pecuniary interest in any matter in the agenda of the
NEDA Board shall disclose his interest to the Board and shall withdraw from
the meeting when the matter is taken up. The decision taken on the matter
shall be made public. The minutes shall reflect the disclosure made and the
recusal of the member concerned from the meeting.

Sec. 8. Exercise of Authority. - In the exercise of authority, the NEDA
Board, upon its recommendation to and upon approval thereof by the
President, shall:

(1) Direct the formulation and implementation of policies and
strategies that would promote economic development and address
development concerns of national importance;

(2) Issue rules and regulations necessary for the effective discharge
of the powers and functions vested upon the NEDA;

(3) Ensure, together with the Department of Budget and
Management and other relevant government oversight agencies, that the
annual and multi-year appropriations for programs and projects are aligned
with the development strategies in the MTPDP and MTRDPs;

(4) Endorse to Congress the integrated development plans and
programs which will serve as bases for the annual budget review and
deliberation;

(5) Determine the level of annual government expenditures, as well
as projections, forecast, resource requirement, and the ceiling of government
spending for social and economic development, national defense,
government debt service, and the proper allocation of expenditures for each
development activity between current operating expenditures and capital
outlay;

(6) Confirm projects, programs and plans as required under

existing laws, orders, rules and regulations, and other issuances; and


(7) Direct the reorganization, or establishment of inter-agency
committees under the NEDA Board, including the modification of its

membership, structures, powers, and functions.

Sec. 9. Inter-Agency Committees. - Inter-agency committees shall be
created to be the primary advisory bodies to the NEDA Board. It shall
submit recommendations on matters involving their concerns to the NEDA
Board for approval.

The President, upon the recommendation of the NEDA Board, shall
designate the respective Chairpersons of these Committees, including the
Secretariat.

The NEDA Board may create other inter-agency committees, or modify
existing ones, in respect to their structures, compositions, powers, and
functions.

The inter-agency committees may create sub-committees, whenever
appropriate, for the purpose of dispensing with any of its respective
functions.

The composition of the inter-agency committees shall be without
prejudice to the participation of representatives of other government
agencies or bodies, or of authorized representatives of major organizations of
local government officials, civil society organizations, non-government
organizations, people’s organizations, the academe, or other private
organizations as may be considered desirable by the committee in its
deliberations.

The following shall be the NEDA Board Inter-Agency Committees:

(1) Development Budget Coordination Committee (DBCC) - The
DBCC, to be composed of the Secretaries of Budget and Management,
National Economic and Development Authority, Finance, and Trade and
Industry, the Executive Secretary, and the Governor of the Bangko Sentral
ng Pilipinas, shall have the following functions:

(a) Recommend for Presidential approval the level of annual

government expenditures and the ceiling of government spending for


we

Soami1rtauan

economic and social development, national defense, and government

debt service;

(b) Recommend the budget to be allocated for current
operating expenditures and capital outlays of government programs
and projects;

(c) Assess the overall economic situation of the country,
which includes economic growth, monetary, fiscal, and possible
economic risks which may require policy reforms;

(d) Conduct periodic review of fiscal and macroeconomic
targets, and the revenue and expenditure projections of the
government;

(e) Prepare a strategic multi-year fiscal program which
supports the long-term and medium-term development objectives of
the country; and

0) Formulate and monitor the implementation of the
framework for regional development of the medium-term development
plan.

(2) Investment Coordination Committee (ICC) - The ICC, to be
composed of the Secretaries of Finance, National Economic and
Development Authority, Budget and Management, Interior and Local
Government, and Trade and Industry, the Executive Secretary, and the
Governor of the Bangko Sentral ng Pilipinas, shall have the following
functions:

(a) Review and submit to the President a status of the fiscal,
monetary and balance of payment implications of major capital
programs and projects;

(b) Identify and determine the level of expenditure program of
national government agencies by region, in accordance with the
approved regional medium-term development plans and regional
medium-term development investment programs;

() Recommend the timetable of the implementation of major

capital programs and projects on a regular basis;


32
33

(d) _ Review and evaluate specific major capital programs and
projects with respect to technical, financial, economic, social,
environmental, legal, institutional, feasibility, and viability, as well as
from the context of sectoral plans and geographical strategies, as may
be required by law, orders, and other legal issuances;

() Review and approve major capital projects based on a
cost threshold as may be set by the NEDA Board; and
() Recommend a domestic and foreign borrowing program.

(3) Infrastructure Committee (INFRACOM) - The INFRACOM, to be
composed of the Secretaries of National Economic and Development
Authority, Public Works and Highways, Budget and Management, Finance,
Information and Communications Technology, Transportation, Trade and
Industry, Energy, Agriculture, and Tourism, and the Executive Secretary,
shall have the following functions:

(a) Formulate a national infrastructure development strategy
that will coordinate, integrate and accelerate the development
initiatives across all infrastructure subsectors in the country;

(b) Advise the President and the NEDA Board, on all matters
concerning infrastructure development, including highways, airports,
seaports, offshore infrastructure, and shore protection; railways and
subways; power generation, transmission, and distribution;
telecommunications; irrigation, flood control, and drainage; water
supply and sanitation; national buildings for government offices;
hospitals and related buildings; state colleges and universities,
elementary and secondary school buildings; reclamation; and other
public works, whether procured or financed through traditional
means, public-private partnership (PPP), or any other method; and

() Coordinate the activities of agencies, including
government-owned and/ or controlled corporations involved in
infrastructure development.

(4) Social Development Committee (SDC) - The SDC, to be composed
of the Secretaries of Social Welfare and Development, National Economic

and Development Authority, Budget and Management, Education, Agrarian

8


1

Reform, Agriculture, Health, Interior and Local Government, and Labor and
Employment, the Executive Secretary, and the Lead Convenor of the
National Anti-Poverty Commission, shall have the following functions:

(a) Formulate and recommend government policies, programs
and projects on social development that are appropriate and
consistent with national development and priorities;

(b) Advise the NEDA Board on matters concerning social
development, including education, manpower, health and nutrition,
population and family planning, housing, human settlements, and
the delivery of other social services; and

(co) Coordinate the activities of government agencies
concerned with social development.

(5) Tariff and Related Matters Committee (TRMC) - The TRMC, to be
composed of the Secretaries of Trade and Industry, National Economic and
Development Authority, Agriculture, Budget and Management, Environment
and Natural Resources, Finance, Foreign Affairs, Information and
Communications Technology, Transportation, the Executive Secretary, the
Governor of the Bangko Sentral ng Pilipinas, and the Chairperson of the
Tariff Commission, shall have the following functions:

a) Recommend to the NEDA Board a_ continuous
rationalization policy and program for the country’s tariff structure;

(b) Advise the NEDA Board on tariff and related matters, as
well as the effects of various international developments on the
country; and

() Coordinate government agency positions and recommend
national positions for international economic negotiations.

(6) Regional Development Committee (RDCOM) - The RDCOM, to be
composed of the Secretaries of National Economic and Development
Authority, Interior and Local Government, Budget and Management, and
Trade and Industry, three (3) Regional Development Council Chairpersons
representing Luzon, Visayas, and Mindanao, and one (1) representative from
the Union of Local Authorities of the Philippines, shall have the following

functions:


(a) Advise the NEDA Board on matters concerning regional
development;

(b) Formulate and monitor the implementation of policies
that reduce regional growth disparities;

() Promote equitable allocation of resources among regions
by strengthening the linkage between national and regional/local
planning, investment programming and budgeting, and providing
recommendations to the DBCC on the guidelines for the regional
allocation of budgetary resources;

(a) Serve as a clearinghouse for key regional development
policy proposals that have impacts on at least two (2) regions;

() Formulate and monitor the implementation of the
framework for regional development of the medium-term development
plan; and

(9 Periodically review the viability of the regional
configuration of the country, and recommend to the NEDA Board the
re-delineation of regions, as may be necessary.

(7) National Physical Resource Use Committee (NPRUC) - The
NPRUC, to be composed of the Secretaries of National Economic and
Development Authority, Agrarian Reform, Agriculture, Energy,
Environment and Natural Resources, Information and Communications
Technology, Interior and Local Government, Justice, Public Works and
Highways, Science and Technology, Trade and Industry, Transportation, and
Tourism, the Chairperson of the Housing and Urban Development
Coordinating Council or the Housing and Land Use Regulatory Board, the
Chairperson of the National Commission on Indigenous Peoples, and the
presidents of Leagues of provinces, municipalities and cities, shall have the
following functions:

(a) Advise the NEDA Board on matters concerning land use
and physical planning;

(b) Formulate a national physical framework plan and other

inter-sectoral policies and programs that guide the rational utilization


vo

Sword» & &

oe Dee boon tw PpoueN Oe = She soa I ofe:
BBELBEBRBSRRRBRESSSIABEBAS

and management of the country’s land and other physical resources,
and the preparation of sub-national physical framework plans;

() __ Ensure the integration of land use and physical planning
policies, plans and programs, including disaster risk management,
into national socioeconomic plans and programs;

(a) Recommend resolutions concerning land use policy
conflicts among agencies of the national government;

e) Oversee the establishment and maintenance, in
conjunction with appropriate government agencies, a database
system that will identify and classify the present and possible uses of
specific land areas, public and private, comprising the total land
resource of the country; and

a) Provide policy directions to the Regional Land Use
Committees in the performance of their respective physical planning
functions.

The NPRUC may call on any Department, Bureau, Office, or Agency for
support or assistance in the performance of its function.

The composition of the Committee shall be without prejudice to the
participation of representatives of other government agencies or bodies, or of
authorized representatives of major organizations of local government
officials, civil society organizations, non-government organizations, people’s
organizations, the academe, or other private organizations as may be
considered desirable by the Committee in its deliberations.

(8) Economic Development Committee (EDC) - The EDC shall be
composed of the Secretaries of Finance, National Economic and
Development Authority, Trade and Industry, Budget and Management,
Public Works and Highways, ‘Transportation, Information and
Communications Technology, Energy, Science and Technology, Tourism,
Agriculture, and Interior and Local Government, the Governor of the Bangko
Sentral ng Pilipinas, and the Executive Secretary. It shall be the main
coordinating mechanism that ensures that the policy environment is
conducive to the promotion of rapid, inclusive, and sustained economic
growth. In particular, the EDC shall:

11


30
31
32
33

(a) Formulate policies that promote sustainable economic
development and inclusive growth;

(b) Promote an environment conducive to growth and
competitiveness of private enterprises and human capital resources,
and the creation of jobs that will empower people and provide them
with opportunities to rise above poverty;

(c) Recommend to the President and NEDA Board policies
that would ensure equitable distribution of economic opportunities
and benefits to Filipinos;

(a) Recommend policy directions towards the development of
farms and rural enterprises which are vital to achieving food security
and more equitable growth; and

() Monitor and evaluate continuous improvements in
national productivity and competitiveness of domestic products and
services.

(9) Science, Technology and Innovation Committee (STIC) - The STIC,
to be composed of the Secretaries of Science and Technology, National
Economic and Development Authority, Information and Communications
Technology, Trade and Industry, Finance, Budget and Management, and
Education, Labor and Employment, Agriculture, and the Chairperson of the
Commission on Higher Education, and the Executive Secretary, shall have
the following functions:

(a) Recommend policies and programs that will promote a
culture of research, planning, and innovation, and encourage
knowledge creation, dissemination, and utilization to support the
country’s sustainable economic development, food security and
safety, industrialization, defense and security, and competitiveness;
and

(b) Oversee and coordinate the preparation of a national
agenda that would provide the framework and strategies for research
and development, and innovation in the country.

Sec. 10. Meetings and Reports of the Inter-Agency Committees. - The

inter-agency committees shall meet regularly, but may be convened to such

12


special meetings as may be necessary. The members of the inter-agency
committees shall be duly notified of any meeting in advance.

‘The inter-agency committees shall furnish the NEDA Board their
respective reports and outputs during such meetings.

ARTICLE III.
THE SECRETARY AND OFFICES OF THE NATIONAL ECONOMIC
AND DEVELOPMENT AUTHORITY

Sec. 11. Organization and Staffing. - The NEDA shall establish a
human resource management system, in accordance with Civil Service
Rules, which shall govern the selection, hiring, appointment, transfer,
promotion, or dismissal of all personnel with the aim of establishing
integrity, professionalism, and excellence at all levels.

It shall adopt a position classification and compensation structure
based on job evaluation studies, talent retention strategies, and wage
surveys, that shall thereafter be submitted to the DBM for review and
approval.

Sec. 12. Organization of NEDA. - The NEDA shall consist of the Office
of the Secretary, the Offices of the Undersecretaries and Assistant
Secretaries, technical and sectoral staffs, operations support staffs, and

regional offices.

Sec. 13. Office of the Secretary of NEDA. - The Office of the Secretary
of NEDA shall consist of the Secretary, four (4) Undersecretaries, eight (8)
Assistant Secretaries, the Internal Audit Service, and the Legislative Liaison
Office.

Sec. 14. Functions of the Secretary of NEDA. - The Secretary of the
National Economic and Development Authority shall have the following

functions:
(1) Provide executive direction and supervision over the entire

operations of the NEDA;


(2) Establish policies and standards for the effective, efficient, and
economical operations of the NEDA, in accordance with the programs of the
government;

(3) Promulgate rules, regulations, and other issuances as necessary
in carrying out the NEDA’s mandate, objectives, policies, plans, programs,
and projects;

(4) Establish effective linkages with regional and provincial
planning and development offices;

(5) Advise the President, thru the NEDA Board, on the
promulgation of executive or administrative orders, and the formulation of
regulatory and legislative proposals, pertaining to matters of national
economic and social development;

(6) Promulgate such rules and regulations, and exercise such other
powers as may be required to implement the objectives of this Act; and

(7) Perform such other tasks as may be provided by law or assigned
by the President.

Sec. 15. Term of Office of the Secretary. - The Secretary of National
Economic and Development Authority shall be appointed by the President
who shall serve until the expiration of the President's term unless sooner

terminated.

Sec. 16. Undersecretaries and Assistant Secretaries. - The Secretary
shall be assisted by four (4) Undersecretaries and eight (8) Assistant
Secretaries, who are appointed by the President, upon recommendation by
the Secretary.

The Secretary shall have the flexibility to determine the respective

assignments of the Undersecretaries and Assistant Secretaries, depending
on the Secretary’s strategic directions and/or emerging development trends

affecting the country’s economy.


Sec. 17. Staffs and Offices. - The NEDA shall be composed of the
following technical and sectoral staffs, administrative and support staffs,
and regional offices:

(1) National Policy and Planning Staff;

(2) Public Investment Staff;

(3) Monitoring and Evaluation Staff;

(4) Regional Development Staff,

(5) Agriculture, Natural Resources, and Environment Staff;

(6) Governance Staff;

(7) — Social Infrastructure Staff;

(8) Connectivity Infrastructure Staff;

(9) Social Development Staff;

(10) Trade, Services, and Industry Staff;

(11) Administrative Staff;

(12) Development Information Staff;

(13) Financial Planning and Management Staff;

(14) Information and Communications Technology Staff;

(15) Legal Staff;

(16) Internal Audit Service;

(17) Legislative and Liaison Office; and

(18) Regional Offices in all the administrative regions of the country,
except those with planning offices created by law.

‘The Secretary may recommend for NEDA Board approval the creation
of additional staffs or modification of existing staffs relative to their

structures, compositions, powers, and functions.

Sec. 18. NEDA Regional Offices (NROs). - The NROs shall have the
following functions:

(1) Oversee the integration of plans and programs of regional
agencies, state universities and colleges (SUCs), government owned and
controlled corporations (GOCCs), and local government units (LGUs) into the
regional and national plans. The NROs shall provide assistance to regional


line agencies, LGUs, SUCs, and GOCCs in identifying and developing
programs and projects;

(2) Evaluate and review proposed policies, land use plans,
programs, and projects in the region;

(3) Monitor and evaluate the implementation of plans, policies,
programs, and projects;

(4) Provide technical and secretariat services to their respective
Regional Development Councils;

(5) Undertake research and ensure knowledge utilization for
regional development and productivity;

(6) Provide technical assistance to development partners in the
region in accordance with NEDA’s functions; and

(7) Provide technical assistance to local government units through
relevant agencies such as the Commission on Population in their
development planning processes, taking into account population factors and

the concept of population and development.

Sec. 19. Attached Agencies. - The agencies attached to the NEDA as of
the effectivity of this Act shall continue to be attached in the performance of
their respective functions, pursuant to the pertinent provisions of their
respective charters or enabling laws, unless otherwise provided.

The following agencies are attached to the NEDA for purposes of policy
and program coordination:

(1) _ Philippine Institute for Development Studies (PIDS);

(2) Philippine National Volunteer Service Coordinating Agency
(PNVSCA);

(3) Philippine Statistics Authority (PSA);

(4) Philippine Statistical Research and Training Institute (PSRTI);
and

(5) | Commission on Population and Development (POPDEVCOM).

Other agencies, which are attached to the NEDA for budgetary
purposes and administrative supervision, include:

(1) Public-Private Partnership Center (PPPC); and

16


oe

Soamrananw

12
13
14
15
16
7
18
19
20
21

22
23
24
25
26
27
28
29
30
31
32
33

(2) Tariff Commission (TC)

Sec, 20. Functions of the Attached Agencies. - The agencies attached
to the NEDA shall continue to operate and function in accordance with the
respective charters, laws, or orders creating them, except as otherwise
provided in this Act, the Administrative Code of 1987, and subsequent laws.
The NEDA shall review the mandate, objectives, and functions of the
attached agencies in order to recommend dispositions or revisions in their
respective charters, whenever appropriate and deemed advisable.

Sec. 21. Legislative-Executive Development Advisory Council (LEDAC). -
The NEDA shall continue to serve as the principal secretariat of the LEDAC,
consistent with RA No. 7640. It shall perform the following functions under
Section 3 thereof, including the preparation of the budget and
administration of the funds of the Council:

(1) Determine and recommend socioeconomic development goals in
pursuance of established policies which shall guide the formulation and
implementation of the national development plan;

(2) Provide policy advice to the President on vital issues affecting
the socioeconomic development of the country;

(3) Direct the study of measures to ensure that regional
development plans and programs are integrated into the national
development plan;

(4) Receive, and in appropriate cases, require reports on, and study
measures to improve, the implementation of official development assistance
from multilateral and bilateral entities;

(5) Assess effectiveness of implementation of the national
development plan;

(6) _ Integrate environmental concepts, principles and practices into
the national development plan for a balanced and cohesive approach to
national development;

(7) __ Review the relationship of the legislative agenda to the national

development plan to ensure the integration of both; and

17


Sowa aus

I
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

32

(8) Study and recommend to the President and to Congress sources
of revenue, as well as measures to reduce unnecessary expenditures, to the
end that the resources of the government will be used to the optimum.

ARTICLE Iv.

DEVELOPMENT PLANS AND PROGRAMS, REPORTS AND PUBLICATIONS

Sec. 22. Long-Term Development Plan. - The NEDA, in consultation
with regional, local, and other stakeholders, shall formulate a Long-Term
National, Regional, and Local Development Plan which will provide the
overall direction to the medium-term and short-term development plans of
the country, to ensure consistency of government strategies, policies,
programs, and projects across political administrations. The long-term
development plan shall contain the development goals and milestones each
administration should attain to realize the long-term vision of the Filipino
people.

Sec. 23. Medium-Term Philippine Development Plan (MTPDP) and
Medium-Term Regional Development Plans (MTRDPs). - The NEDA, in
consultation with appropriate public agencies, various private sector and
local government units, shall prepare an economic development blueprint
for the next six years, which shall be known as the Medium-Term Philippine
Development Plan. The MTPDP shall embody the government’s socio-
economic policies, strategies and programs in support to and consistent
with the development agenda of the President, and geared towards the
attainment of the development goals and objectives in the long-term
development plan.

At the regional level, the NEDA Regional Offices shall coordinate the
preparation of their respective regional development plans, consistent with
the MTPDP. The MTRDPs shall define the region’s development direction and
identify policies, strategies, and programs.

Sec. 24, Medium-Term Public Investment Program (MTPIP) and Regional
Medium-Term Development Investment Programs (RMTDIPs). - The


preparation of the MTPIP and RMTDIPs shall be formulated in support of
PDPs and RDPs. The NEDA shall prepare a list of priority programs and
projects to be implemented by the national government, government-owned
and/or controlled corporations (GOCCs), government financial institutions
(GFls), and other national government offices and instrumentalities that will
contribute to the attainment of the sectoral goals and outcomes in the
MTPDP and MTRDPs.

The MTPIP and RMTDIPs shall be regularly updated. The NEDA, in
consultation with appropriate government agencies and stakeholders, shall

prioritize sectoral and geographic programs, projects, and activities to be

funded from government appropriations, ODA, PPP, revenue sources
generated by GOCCs, GFIs, and other government bodies and
instrumentalities, and other viable sources of funding.

Sec, 25. National Physical Framework Plan (NPFP). - The NEDA shall
prepare a framework which provides analytical parameters for the planned
allocation, use and management of the country’s land and other physical
resources. The NPFP shall help plan and manage these resources at the
national and sub-national levels.

The NEDA Regional Offices shall coordinate the preparation of the
sub-national physical framework or physical development plans for the
approval of their respective RDCs.

The NPFP and sub-national physical framework or physical
development plans shall serve as the main reference documents in the
preparation of the physical plans and land use plans of provinces, cities,

and municipalities in the country.

Sec. 26. Socioeconomic Report (SER) and Regional Development Reports
(RDRs). - To monitor the implementation of the MTPDP and MTRDPs, the
NEDA shall prepare periodic socioeconomic reports. The SER and RDRs
shall serve as inputs to policy and decision makers in the formulation of
policies, budgeting, and implementation of programs and projects based on
the development plans of the country.

19


Sec. 27. ODA Portfolio Review. - Consistent with RA No. 8182 or the
ODA Act of 1996, as amended by RA No. 8555, the NEDA shall conduct an
annual review of the status of all projects financed by ODA and identify
causes of implementation and completion delays or reasons for bottlenecks,
cost overruns, and continued program or project viability. The NEDA is
required to submit to the President and Congress a report on the outcome of
the review not later than June 30 of each year.

Sec. 28. Knowledge Management. - The NEDA shall establish a
repository of data and information, publications, research and analyses, and
other information concerning the Philippine economy and development, in
general. It shall manage, maintain, and make available such information
and documents to the public for the purpose of knowledge sharing.

CHAPTER II
HARMONIZATION AND SYNCHRONIZATION OF DEVELOPMENT
PLANNING, INVESTMENT PROGRAMMING, BUDGETING, MONITORING
AND EVALUATION PROCESSES OF GOVERNMENT

ARTICLE I.
LINKAGE AND ALIGNMENT OF PLAN AND PROGRAM FORMULATION

Sec. 29. Plan and Program Formulation. - The NEDA Board shall issue
the Planning Call not later than two months after the newly elected
President has assumed office. The NEDA shall prescribe the standards and
guidelines in the preparation of the MTPDP, MTRDPs, MTPIP, and RMTDIPs,
including a planning and investment programming timetable aligned with
the budget calendar.

The NEDA, in coordination with concerned government agencies and
other government instrumentalities, shall determine a timetable for the
preparation and formulation of sectoral plans and programs, to ensure that
the policies and strategies contained in the respective sectoral plans are
considered and incorporated in the MTPDP. The timetable for the
formulation of the MTPDP and MTPIP shall align with the budgeting

20


timetable to ensure that the strategic programs and projects identified are
provided with the required funding allocation.

Sec. 30. Planning, Programming and Budgeting Linkage. - The NEDA
shall ensure a strong, efficient, and effective linkage between development
planning, programming and budgeting.

The NEDA, together with the Department of Budget and Management
and other relevant government oversight agencies, shall ensure that the
annual appropriations for programs and projects are aligned with the
development strategies in the MTPDP and MTRDPs.

Sec. 31. Adoption and Implementation of Plans and Investment
Programs. ~ The RDCs shall approve their respective MTRDPs and RMTDIPs
for consideration in the MTPDP and MTPIP. The NEDA Board shall approve
the MTPDP and MTPIP for adoption and implementation of government

agencies.

Sec. 32. Integration of National, Regional, and Local Plans and
Programs. - The NEDA shall ensure the integration of major regional and
local development priorities into the MTPDP and MTRDPs, respectively.
Furthermore, the NEDA, through the NEDA Regional Offices, shall provide
oversight in the formulation of provincial development and physical
framework plans so that local development thrusts are aligned with and
contribute to the national and regional level plans and programs.

The NEDA shall likewise institute processes to enable the inclusion of
regional priorities in the programs and projects of the national government
agencies, and subsequently, in the respective budgets of national agencies.

SEC. 33. Consultations and Technical Assistance. - There shall be
maximum participation by and consultation with concerned local
government units, community organizations and beneficiaries, civil society
organizations, non-government organizations, people’s organizations, the
academe, or other private organizations in order to ensure that the priority

21


Sowmraauanvn

12
13
14
15
16
7
18
19
20
21
22
2B
24
25
26
27
28
29
30
31
32
33

needs are incorporated into the formulation of policies, plans, programs and
projects.

The NEDA shall provide technical assistance to the local government
units on how to localize national development strategies, particularly in
planning and investment programming to ensure alignment of local
development plans and strategies with the MTPDP and MTRDPs. It shall also
assist local government units in identifying and developing programs and
projects, and redirecting resources into more productive activities to achieve
the intended development outcomes in their respective areas.

SEC. 34. Coordination with Autonomous and Administrative Regions.
- The NEDA shall ensure effective coordination with autonomous and
administrative regions with separate planning offices in the formulation of
the MTPDP and in other relevant planning activities affecting said regions.

ARTICLE Il.

MONITORING AND EVALUATION OF PLANS AND PROGRAMS

SEC. 35. Monitoring and Reporting on the Implementation of Plans
and Programs. - The relevant inter-agency committees shall monitor the
implementation of the MTPDP, MTRDPs, MTPIP and RMTDIPs, including
sectoral plans and programs on an annual basis, to determine if the targets
identified in the plans and programs were achieved. The monitoring results
shall be reported to the NEDA Board, Congress, and other concerned
agencies for purposes of adjustments in policies, programs, and projects.

The NEDA shall facilitate the conduct of monitoring and evaluation of
programs and projects at the national level, complemented by the Regional
Project Monitoring and Evaluation System at the regional levels. The
Department of the Interior and Local Government shall complement NEDA’s
monitoring, reporting, and facilitation of programs and projects at the sub-
regional level through the Local Project Monitoring Committees.

SEC. 36. Evaluation of the Implementation of Plans and Programs. -

Consistent with a National Evaluation Framework, which provides for the

22


purposive conduct of evaluation in the public sector, a national evaluation
agenda shall be formulated. The relevant inter-agency committees shall
identify and commission, or instruct agencies to conduct public sector
evaluation studies in support of good governance, transparency,
accountability, and evidence-based decision making.

CHAPTER III
TRANSITORY AND OTHER MISCELLANEOUS PROVISIONS

SEC. 37. Transitory Provision. - The powers and functions, applicable
funds and appropriations, records, files, equipment, facilities, supplies,
property, and personnel of the current NEDA Secretariat are hereby
transferred to the new NEDA.

The present career officials and employees of the current NEDA
Secretariat shall enjoy security of tenure and be absorbed by the new NEDA,
in accordance with its staffing pattern and selection process as prescribed
under RA No. 6656 and by the NEDA Board, unless they are separated from
service by virtue of the reorganization resulting from this Act, or opt and are
qualified to retire from service. The affected officials and employees shall be
entitled to a separation package in accordance with existing laws.

Affected personnel who are retired or separated from the service shall
not be re-employed in NEDA or in any of its attached agencies for a period of
five years from such retirement or separation.

Unless absolutely required, no officer or employee shall be separated
from service as a result of any reorganization or consolidation under the
provisions of this Act. In addition, those who desire and are qualified to
retire shall be entitled to all the benefits provided under existing laws.

Current officials and employees of the NEDA Secretariat shall continue
to draw their salaries, benefits, and other emoluments until such time, but
not later than one (1) year from the effectivity of this Act, that the
corresponding funds from the National Government shall have been
appropriated and released to the NEDA.

23


SEC. 38. Transfer of Rights and Obligations. - The NEDA shall, by
virtue of this Act, be subrogated to all the rights and assume all the
obligations of the current NEDA Secretariat, and all its liabilities that
pertain to its pertinent funds and appropriations, records, files, equipment,
facilities, supplies, property, and personnel, including unexpended portions
of its members’ respective salaries.

SEC. 39. Funding. - The amount needed to carry out the initial
implementation of this Act shall be charged on the current year’s budget of
the NEDA. Thereafter, the necessary budget for the continued operation and
maintenance of the NEDA shall be included in the annual General
Appropriations Act (GAA).

SEC. 40. Implementing Rules and Regulations. - Within ninety (90)
days from the effectivity of this Act, the NEDA Board shall promulgate the
rules and regulations, as well as the issuances necessary to ensure the
proper implementation of the provisions of this Act. These implementing
rules and regulations shall take effect fifteen (15) days after the completion
of their publication in two (2) newspapers of general circulation.

SEC. 41. Separability Clause. - If any provision or portion of this Act is
declared unconstitutional, the remainder of this Act or any provision not
thereby affected shall remain in full force and effect.

SEC. 42. Repealing Clause. - All laws, decrees, executive orders,
ordinances, rules, regulations, and other issuances, or parts thereof, which
are inconsistent with any provision of this Act, are hereby repealed,
amended, and/or modified accordingly.

SEC. 43. Effectivity. - This Act shall take effect fifteen (15) days after
completion of its publication in the Official Gazette or in at least two (2)
newspapers of general circulation.

Approved,

24