Republic of the Philippines
House of Representatives

Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

2966
HOUSE BILL NO.

Introduced by:
Representative FRANCISCO JOSE F. MATUGAS II

EXPLANATORY NOTE

Siargao, consisting of Siargao Island and Bucas Grande Island, used to
be one of the best kept secrets in the country. Now, it has been named the
Best Island, not only in Asia, but in the World. What once was a haven for
surfers only, is now one of the prime tourist destinations in the country.

While the residents of the island welcome development, it is
government's duty to ensure that such development is sustainable, with
special emphasis on protecting the environment. As a protected landscape
and seascape, it is imperative that a development plan be adopted to ensure
that the islands’ development meets the needs of its current residents without
compromising the future generations’ right to enjoy the island’s natural
resources. The rapid development and influx of tourists in Siargao requires
advance planning in areas like health services, food security, waste
management, transportation, peace and security, among others, before they
become a problem. It is important that all municipalities in the islands
adhere to a single development plan and one entity be tasked to implement
the same. This bill seeks to create such an entity, the Siargao Islands
Development Authority. Said Authority will be tasked to adopt and
implement a master plan for Siargao.

In view of the foregoing, approval of this bill is earnestly sought.

FRANCISCO Ji . MATUGAS II
Surigao del Norte, First District
(Siargao Island)


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Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

2966
HOUSE BILL NO.

Introduced by:
Representative FRANCISCO JOSE F. MATUGAS IT

AN ACT
CREATING THE SIARGAO ISLANDS DEVELOPMENT AUTHORITY,
PRESCRIBING ITS POWERS, FUNCTIONS AND DUTIES AND
PROVIDING FUNDS THEREFORE, AND FOR OTHER PURPOSES

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

Chapter I
Declaration of Policy and Creation of Authority

SECTION 1. Short Title. - This Act shall be known as the “Siargao
Islands Development Authority Act”.

SEC. 2. Declaration of Policy. — It is the policy of the State to undertake
measures to adopt sustainable and progressive development strategies of
forestlands, national parks, marine areas and sanctuaries, and resources
therein, to promote the economic and social development of Siargao.

SEC. 3. Creation of the Siargao Islands Development Authority. — For
purposes of carrying out the policy of this Act, a body corporate, granted the
powers of a corporation, is herein created to be known as the Siargao Islands
Development Authority (“SIDA”), hereinafter referred to as the “Authority”.

The Authority shall be organized within thirty (30) days after approval
of this Act. It shall have a term of fifty (50) years from its organization:
Provided, That Congress, by a joint resolution, may dissolve the Authority


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whenever in its judgment the primary purpose for its creation has been
accomplished. It shall establish its principal office in Siargao Islands unless
otherwise provided by the Authority and may put up such branches as may be
necessary.

SEC. 4. Purposes of the Siargao Islands Development Authority. — The
Authority shall have the following purposes:

a) To adopt, prepare and implement a comprehensive and detailed
development plan embodying a list of projects to promote the economic,
cultural, and social development of the Siargao Islands, sustainable tourism,
protection and preservation of its protected areas and agricultural
development;

b) To encourage the active participation of the private sector in
developing the Siargao Islands into other productive and sustainable uses;

o To establish a mechanism of consultation and coordination with
the local government units, and other stakeholders, regarding the plans,
programs and projects of the Authority for the islands of Siargao and
surrounding areas therein; and

d) To plan, program and undertake the adjustment, relocation, or
resettlement of the people living in the area as may be deemed necessary and
beneficial to the development of Siargao Islands, in coordination with the
appropriate government agencies and local government units.

SEC. 5. Powers of Siargao Islands Development Authority. —'To carry
out its objectives under this Act, the Authority is hereby vested with the
following:

a) To succeed in its corporate name, to sue and be sued in such
corporate name and to adopt, alter and use a corporate seal which shall be
judicially noticed;

a) To enter into, make, perform, and carry out contracts of every
class, kind, and description which are necessary or incidental to the
realization of its purpose with any person, firm or corporation, private and

public, and with foreign government entities;


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b) To adopt, amend, and repeal its by-laws;

c) To contract loans, indebtedness, credit, and issue commercial
papers and bonds, in any local or convertible foreign currency from any
international financial institutions, foreign government entities, and local or
foreign private commercial banks or similar institutions under terms and
conditions prescribed by law, rules and regulations;

d) To construct, own, lease, operate and maintain public utilities as
well as infrastructure facilities;

e) To acquire, hold, administer, and lease real and personal
properties, including agricultural lands, property rights and interests and
encumber, lease, mortgage, sell, alienate, or otherwise dispose of the same at
fair market value it may deem appropriate;

f) To receive donations, grants, bequeaths, and assistance of all
kinds from local and foreign government and private sector and utilize the
same;

g)  Toexercise the right of eminent domain;

h) To exercise oversight functions of the Siargao Islands declared
under this Act and by subsequent presidential proclamations within the
framework of this Act;

i) To identify, collect, and manage the fees to be collected, in
relation to its functions;

)) To adopt and implement measures and standards for the
protection of the environment and natural resources within the territorial
jurisdiction of the Authority and to enforce the same. For this purpose, the
Authority shall create an Ecology Center.

The Ecology Center shall be responsible for the implementation of all
environmental and natural resources conservation and protection programs
adopted or assumed by the Authority as a natural corporation and as a
governmental entity.

The Ecology Center shall undertake the normal functions associated

with environmental management, including but not limited to, enforcement,


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monitoring, permitting, training and education and contingency and
emergency planning;

k) To issue all permits and clearances related to environmental
protection and conservation within its territorial jurisdiction, including but
not limited to, authorities to construct, permits to operate, and water use
permits. The Authority may, at its discretion, amend the requirements
associated with such permits or clearances that it deems necessary to protect
and conserve the environment;

1) To adopt and implement rules and regulations to govern building
and/or construction of all structures and infrastructures within its territorial
jurisdiction. Pending the issuance of such rules and regulations, Presidential
Decree No, 1096, otherwise known as the “National Building Code of the
Philippines” (“NBC”), and the Implementing Rules and Regulations (“IRR”)
issued pursuant thereto, other laws on building and construction and the
rules and regulations issued by the Department of Public Works and
Highways and other government agencies concerning building and
construction will be adopted;

In this regard, and in accordance with the rules that the Authority will
issue pursuant thereto, the Authority shall have the right to require the
building owner to vacate, repair, renovate, demolish or remove any building
or structure which violates its rules and regulations on building and
construction;

m) To charge reasonable fees, including but not limited to license
fees, application fees, filing and registration fees and administrative and
regulatory fees; and to impose administrative fines;

n) To promulgate all necessary rules and regulations; and

o) To perform such other powers as may be necessary and proper to
carry out the purposes of this Act.

SEC. 6. Capitalization. — The Authority shall have an authorized
capital of Two Hundred Million Pesos (Php200,000,000.00) which may be
fully subscribed and paid up by the Republic of the Philippines.


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SEC. 7. Composition of the Board. — The powers and functions of the
Siargao Islands Development Authority shall be exercised through its Board
which shall be composed of sixteen (16) members, as follows:

a) The Authority shall be composed of one (1) representative from
the respective Planning and Development Office (“PDO”) of the following:

1 Provincial Government of Surigao del Norte;

Municipality of Burgos;
Municipality of Dapa;
Municipality of Del Carmen;

Municipality of General Luna;

2.

3.

4.

5.

6. Municipality of San Benito;
7. Municipality of Pilar;

8. Municipality of San Isidro;

9. Municipality of Santa Monica; and

10. Municipality of Socorro;

b) A representative from the Department of Tourism, the Protected
Area Superintendent of the Siargao Island Protected Landscape and
Seascape, and the Department of Agriculture — Bureau of Fisheries and
Aquatic Resources;

°) Three (3) representatives from the private sector who are
stakeholders in the development of Siargao Islands.

The Chairman and the members of the Board shall be appointed by the
President to serve for a term of six (6) years, unless sooner removed for cause
except for the representatives of the local government units who shall serve
for a term of three (3) years. In case of removal for cause, the replacement
shall serve only the unexpired portion of the term.

SEC. 8. Qualifications. — No person shall be appointed as a member of
the Board unless such a person is a Filipino citizen, at least twenty-five (25)
years old, of good moral character, of unquestionable integrity, and of
recognized competence in relevant fields including, but not limited to,

economics, management, development, law or _ engineering.


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SEC. 9. Chairman/ Administrator.-The President shall appoint a
professional manager as Chairman of the Board of the Authority from the
representatives of the private sector, who shall be the ex officio Administrator
and who shall serve as the chief executive officer of the Authority. The
Chairman/Administrator of the Authority must have demonstrated executive
competence and experience in the field of public administration, economic
planning, environmental and natural resources management, or in the
establishment and management of large agricultural, commercial or
industrial enterprises. No person shall be nominated as Chairman unless
said person is of unquestioned integrity and competence. Finally, the
Chairman/Administrator shall be responsible to the Board and the President
of the Philippines for the efficient management and operation of the
Authority.

SEC. 10. Duties and Responsibilities of the Chairman/Administrator of
the Authority.The Chairman/Administrator shall have the following duties
and functions:

(a) Call and preside over the meetings of the Board and see to it that
the policies, programs and rules and regulations are implemented efficiently
and effectively;

(b) Call on stakeholders in the formulation and implementation of a
comprehensive and integrated plan for the development of the Siargao
Islands;

(c) Identify solutions to key issues and concerns, taking into account
related risks, affected parties and impact, in coordination with the Board and
key stakeholders;

(a) Accept, on behalf of the Authority, donations, contributions,
grants and bequests or gifts, in cash or in kind, from members, foreign
governments, international agencies, private entities or any individual for

purposes that will realize the functions of the Authority;


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(e) Call on any agency, group, individual member of the Board, local
government unit, and host community to address issues and concerns relating
to implementation of major programs, projects and activities;

(f) Supervise administrative operations including disbursements of
any fund of the Authority, subject to the usual accounting and auditing
procedures, and submit reports thereon;

(g) Supervise the monitoring and timely implementation of
Mindanao-wide and/or Mindanao-specific inter-regional programs, projects
and activities;

(h) Execute and administer the policies and measures approved by
the Board;

(i) Appoint all employees of the Authority and, with approval of the
Board to remove, dismiss or otherwise discipline for cause, such employees in
accordance with the standard guidelines for recruitment, employment, and
discipline in the Civil Service Code;

@) Represent the Authority in all dealings with other offices,
agencies, and instrumentalities of the government and with all persons and
entities, public or private;

(k) Sign agreements and/or contracts on behalf of the Authority,
including those for expert and consultant services and other reports of
accountabilities emanating from the Authority; and

() Perform such other functions that the Board may direct to carry
out the provisions of this Act.

SEC. 11. Functions of the Board. — The Board shall be the policy-
making and implementing body of the Authority and shall perform the
following functions:

a) Determine the organizational structure of the Authority, define
the duties and responsibilities of all officials and employees and adopt a
compensation and benefit scheme;

b) Prepare the annual and supplemental budgets of the Authority;

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©) Submit an annual report of the operation and accomplishments
to the President of the Philippines, Senate of the Philippines, and House of
Representatives.

SEC. 12. Meetings and Quorums. — The Board shall meet regularly
once every month at its principal office. There must be notice to all members
of the Board, sent through electronic or traditional means, at least three (3)
days before said meeting, The Board may also conduct special meetings
whenever necessary.

A majority of the members shall constitute a quorum for the
transaction of corporate business, and every decision of at least a majority of
the members present, at which there is a quorum, shall be valid as a
corporate act, except for the election of officers which shall require the vote
of a majority of all the members of the board.

Chapter II
Development of Siargao Islands

SEC. 13. Conversion and Reclassification of Lands. — The following
easements shall be established:

a) Forty (40) meters parallel to the established mean highest high-
water mark along the coasts of the islands and islets;

b) Twenty-five (25) meters along developed coastal areas;

©) Twenty (20) meters from the edge of a riverbank; and

d) Three (3) meters from the edge of any existing creek.

The conversion and reclassification of land beginning at the end of the
easements specified in the immediately preceding paragraph, shall conform to
the classification mentioned under the Comprehensive Tourism Master Plan
adopted by the Tourism Infrastructure and Enterprise Zone Authority.

SEC. 14. Siargao Islands Special Economic Freeport Zone. - There is
hereby created the Siargao Islands Special Economic and Freeport Zone,
hereinafter referred to as the Freeport Zone, within Siargao Islands. The

President of the Philippines shall issue a proclamation defining the metes


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and bounds of the Freeport Zone based on the recommendation of the
Authority.

SEC. 15. Governing Principles of the Siargao Islands Special Economic
Zone. — The Freeport Zone shall be managed and operated within the
framework and subject to the mandate and limitations of the 1987
Constitution and the pertinent provisions of Republic Act No. 7160, also
known as the “Local Government Code of 1991.” The Freeport Zone shall be
developed into a self-sustaining, industrial, commercial, financial, agro-
industrial, banking and investment center to generate employment
opportunities in and around the Freeport Zone and to attract and promote
productive local and foreign investments.

The Authority, in the management of the Freeport Zone shall be guided
by the following policies:

a) The Freeport Zone shall continue to be provided with
transportation, telecommunications and other facilities needed to attract
legitimate and productive investments, generate linkage industries and
employment opportunities for the people residing in areas comprising the
Freeport Zone and its neighboring towns and cities;

b) ‘The Freeport Zone may establish mutually beneficial economic
relations with other entities or enterprises within the country or with foreign
entities or enterprises;

©) The Freeport Zone shall be managed and operated as a separate
customs territory ensuring free flow or movement of goods and capital within,
into and out of its territory;

a) The Freeport Zone shall provide incentives such as tax and duty-
free importations of raw materials, capital and equipment to registered
enterprises located therein. However, exportation or removal of goods from
the territory of the Freeport Zone to the other parts of the Philippines shall be
subject to customs duties and taxes under the Tariff and Customs Code of the
Philippines, as amended, and the National Internal Revenue Code (NIRC) of
1997, as amended;


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e) The Bangko Sentral ng Pilipinas, through the Monetary Board,
shall supervise and regulate the operations of banks and other financial
institutions within the Freeport Zone;

f) Banking and finance shall be liberalized with the establishment
of foreign currency depositary units of local commercial banks and offshore
banking units of foreign banks, subject to regulations by the Bangko Sentral
ng Pilipinas;

g) The areas comprising the Freeport Zone may be expanded or
reduced when necessary. For this purpose, the Authority, with the
concurrence of the LGUs comprising the Freeport Zone and in accordance
with existing laws and local ordinances, shall have the power to acquire
either by purchase, negotiation or condemnation proceedings, any private
lands within or adjacent to the area comprising the Freeport Zone for the
following purposes:

(1) Consolidation of lands for development by the Authority;

(2) Acquisition of right-of-way by the Authority; and

(8) Protection of watershed areas and the maintenance and
improvement of its yield and natural assets valuable to the prosperity
of the Freeport Zone, the management of solid and water waste and its
impact to adjacent areas within the LGU concerned;

h) Goods manufactured by enterprises within the Freeport Zone
shall be made available for immediate retail sale in the domestic market,
subject to the payment of corresponding taxes on raw materials and other
regulations that may be formulated by the Authority, together with the
Philippine Economic Zone Authority (PEZA), the Bangko Sentral ng
Pilipinas, the Department of Finance, the Bureau of Customs (“BOC”), and
the Department of Trade and Industry, in accordance with the NIRC of 1997,
as amended, and the Tariff and Customs Code of the Philippines, as
amended. However, in order to protect the domestic industries, a negative list

of industries shall be drawn up and regularly updated by the PEZA.

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Enterprises engaged in industries included in such negative list shall not be
allowed to sell their products locally; and

i) The defense of the Freeport Zone and the security of its premises
shall be the responsibility of the National Government in coordination with
the Authority and the LGUs comprising the Freeport Zone.

Chapter III
Siargao Island Protected Landscape and Seascape

SEC. 16. Siargao Master Plan- The Authority shall adopt, within six (6)
months from the effectivity of this Act, a Siargao Master Plan based on the
Comprehensive Tourism Master Plan adopted by the Tourism Infrastructure
and Enterprise Zone Authority and the Management Plan formulated for the
Siargao Island Protected Landscape and Seascape (“SIPLAS”) under Republic
Act No. 11038, if one has already been formulated. The Siargao Master Plan
shall serve as the basic long-term framework plan for the management of the
Siargao Islands and guide in the preparation of its annual operations plan
and budget.

SEC. 17. Management of SIPLAS. — Notwithstanding any provision of
law to the contrary, the Siargao Island Protected Landscape and Seascape
established under Republic Act 11038 shall be managed by and be under the
jurisdiction of the Authority.

SEC. 18. Funding for the Management of SIPLAS. — The budget for the
SIPLAS shall be included in the annual General Appropriations Act.

SEC. 19. Defense and Security. - The Authority shall be assigned a
special patrol unit from the Philippine National Police and Philippine Coast
Guard.

SEC. 20. Separability Clause. — If any provision of this Act is declared
unconstitutional or invalid other parts or provisions hereof not affected

thereby shall continue to be in full force and _ effect.

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SEC. 21. Repealing Clause. — All laws, decrees, executive orders, rules
and regulations or parts thereof which are contrary to or inconsistent with
this Act are hereby repealed, amended or modified accordingly.

SEC. 22. Effcetivity. — This Act shall take effect fifteen (15) days after
its complete publication in the Official Gazette or in two (2) newspapers of
general circulation.

Approved,

serene signet en dt

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