Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Third Regular Session

6227

HOUSE BILL NO.

Introduced by

Representatives Raul V. Del Mar, Gabriel Luis R. Quisumbing, Joseph H. Durano,
Gerald Anthony V. Gullas Jr., Rodrigo A. Abellanosa, Aileen C. Radaza, Gwendolyn F.
Garcia, Benhur L. Salimbangon, Wilfredo S. Caminero

AN ACT
CREATING THE MEGA CEBU DEVELOPMENT AUTHORITY, PRESCRIBING ITS
POWERS, FUNCTIONS AND DUTIES, PROVIDING FUNDS THEREFOR, AND FOR
OTHER PURPOSES

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

Section 1. Short Title. This Act shall be known as the “Mega Cebu Development
Authority Act of 2015.”

Section 2. Declaration of Policies and Principles. \t is hereby the declared policy of
the State to promote and accelerate the sustainable development and balanced growth of
the Province of Cebu and the highly urbanized Cities of Cebu, Mandaue, and Lapu-Lapu,
within the context of national policies for economic, social, and environmental well-being.

Itis likewise hereby declared to be the policy of the State to treat Metropolitan Cebu

as a special development and administrative region where certain policies, programs, and
services affecting or involving Metro Cebu, on a metro-wide or multi-LGU level, are more
efficiently and effectively planned, supervised, implemented, and coordinated by a
development authority as created herein, without prejudice to the autonomy of the affected

local government units.


Pursuant to these national policies, the following aspirations and principles are
hereby declared:

(a) To recognize a more institutionalized approach to metropolitan or multi-LGU and
integrated development planning that is expertise-supported and evidence-based,
participatory, responsible, accountable, and necessary for all or part of its
community;

(b) To foster cooperative relations between and among metropolitan and surrounding
cities and towns in order to efficiently and effectively sustain efforts and meet the
needs, promote and develop shared assets and resources, and provide services that
transcend geopolitical municipal and city boundaries without prejudice to the

autonomy of the affected local government units;

(© To ensure active participation by the private, business, and civil society sector in the
governance, planning, implementation, monitoring and evaluation of plans, policies,
standards, programs, projects, and services; and,

(@) To implement a national government-approved Metropolitan Cebu Roadmap and

other subsequent and related metro-wide or multi-LGU roadmaps and plans that

ensure long-term, sustainable and continuing directions, priorities, and programs
for and by the constituent local and national government agencies and units, private,
business, and civil society sector.
Section 3. Definition of Terms. The following terms used in this Act shall have the
meaning as stated below:
(a) Business Sector refers to for-profit, and commercial enterprises or businesses and
business associations and coalitions (cross-industry, multi-issue groups; cross-

industry, issue-specific initiatives; industry-focused initiative); including but not

limited to, corporate philanthropic foundations.

(b) Civil Society - refers to the wide array ofnon-governmental and not-for-profit
organizations that have a presence in public life, expressing the interests and values
of their members or others, based on ethical, cultural, political, scientific, religious or
philanthropic considerations. Civil Society Organizations (CSOs) therefore refer to
organizations such as: community groups, non-governmental organizations (NGOs),
labor unions, indigenous groups, charitable organizations, faith-based organizations,

professional associations, and foundations.


(0) Private Sector/Entity -refers to entities of the economy that are owned by private
citizens and not by the state, including those enterprises created either for profit or
non-profit and households.

(d) Metropolitan Cebu Area or Metro Cebu - covers the highly urbanized cities of Cebu,
Mandaue, and Lapu-Lapu, the cities of Danao, Talisay, Naga and Carcar, and the
municipalities of Consolacion, Liloan, Compostela, Cordova, Minglanilla and San
Fernando.

(e) Mega Cebu - refers to the platform (for inter-local cooperation, pul

private sector
partnership, and local-regional-national-integration) promoting the “big picture
perspective” (i., long term, multi-LGU, metro-wide) and advancing collaborative
planning and action on shared assets and common trans-boundary concerns
towards a sustainable, smart, and inclusive Cebu. It is anchored on and considers the
island-wide or larger provincial (whole Cebu) and regional (Visayas) context, while

starting out its on-ground engagement and intervention at the Metropolitan Cebu (13

LGUs) level. Conceptually, thus, Mega Cebu is larger than Metro Cebu and considers the

population of the entire ‘province’ or ‘island’ in the year 2050 - which is projected to

reach more than 10 Million (reference: the technical definition of a mega population is

10 Million or more).

(0) Metropolitan Cebu Roadmap - refers to the “Roadmap Study for Sustainable Urban
Development in Metro Cebu” commissioned by the Metro Cebu Development and
Coordinating Board (MCDCB), funded by the Government of Japan, and completed
bya team from the Japan International Cooperation Agency (JICA).

Section 4. Creation of the Mega Cebu Development Authority. - There is hereby
created a special body to be known as the Mega Cebu Development Authority, hereinafter
referred to as “MCDA” or “Authority”, which shall be organized within thirty (30) days after
approval of this Act, to coordinate and promote socio-economic growth and sustainable
development within the islands and Province of Cebu. The affairs of the Metro Cebu
Development and Coordinating Board (MCDCB) shall be hereinafter administered by the
MCDA.

‘The MCDA shall execute the powers and functions herein vested which shall in no
way diminish the autonomy of the local government units in the Metropolitan Cebu area
and surrounding towns and cities of the Province of Cebu concerning purely local matters
within the framework and subject to the mandate and limitations of the Constitution,

pertinent provisions of the Local Government Code, and Section 5 hereof.


Section 5. Constitution and Jurisdiction of the Mega Cebu Development Authority. -
For purposes of this Act, the MCDA shall comprise the core metropolitan area embracing
the highly urbanized cities of Cebu, Mandaue, and Lapu-Lapu and the cities of Danao,
Talisay, Naga and Carcar as well as the municipalities of Consolacion, Liloan, Compostela,
Cordova, Minglanilla and San Fernando, and such other cities and municipalities as shall be
included from time to time under this section or conferred by this Act, determined in
accordance with the procedures and requirements outlined in the implementing rules and
regulations.

Section 6. Powers and Functions of the Mega Cebu Development Authority. - The
Authority shall primarily seek to:

(a) Formulate, coordinate, regulate and monitor the short, medium, and long-term
plans, policies and programs for the sustainable development and integration of
Metropolitan Cebu Area, including investment programs for the delivery of multi-
LGU or metropolitan wide services, land use, spatial and physical development using
strong, coherent governing values and shared vision, with focus on integrated
systems for urban development;

(b) Render services that have multi-LGU or metropolitan wide coverage and impact,
transcending local geopolitical boundaries or entailing substantial expenditures
including, but not limited to: integrated and infrastructure development and
planning; transport and traffic management; solid waste disposal and management;
water, septage, sewerage and storm water management; and disaster risk reduction
and management;

(0) Ensure that plans, policies, programs and services are pursued for the purpose of
realizing the Mega Cebu 2050 Vision of a Wholesome, Advanced, Vibrant, Equitable,
and Sustainable (W.A.V.E'S) Cebu, executing the Mega Cebu development strategy of
competitiveness, livability, mobility, and metropolitan management and
implementing the Metropolitan Cebu Roadmap and other subsequent and related
roadmaps;

(a) Ensure continuing research, evaluation, and monitoring to enhance plans, p

es,
programs, services and efforts to anticipate or respond to the dynamic and changing
realities and needs of metropolitan development;

(e) Perform other related functions required to achieve the Mega Cebu 2050 Vision and

objectives of the MCDA, including the undertaking of delivery of services to the local


government units, when deemed necessary and subject to prior coordination and
consent of the local government unit concerned.

Section 7. Scope of Services of the Mega Cebu Development Authority. In coordination
with appropriate government units and agencies and relevant private sector organizations,
the scope of services of MCDA shall include, but not limited to:

(a) Spatial and integrated planning, and infrastructure planning and development,

which includes the formulation, adoption, and implementation of plans, policies,

programs, projects, standards, rules and regulations to rationalize and optimize land
use; conserve and protect natural resources, provide direction to urban growth and

expansion within the context of smart, connected, compact and sustainable growtl

and the provision of necessary services;

(b) Transport and traffic management which includes the formulation, coordination,
and monitoring of policies, standards, plans, programs and projects, including its
implementation and its integration with land use, rationalization of the existing
transport operations, infrastructure requirements, and use of thoroughfares;
promotion of safe and convenient movement of persons and goods; provision for
and maintenance of mass transport system, road infrastructure, and institution of a
people-centered network of mobility (including pedestrianization and non-
motorized forms of transport) as well as a system to regulate road users; and the
administration and implementation of traffic enforcement operations, traffic
engineering services, and traffic education programs, including the institution of a
single ticketing system;

(c) Solid waste management, which includes the formulation and implementation of
policies, standards, plans, programs and projects for proper and sanitary waste
disposal; the establishment and operation of sanitary landfill and related faci

ies;
the establishment and operation of alternative waste management facilities; and the
implementation of appropriate programs, projects, and services intended to manage,
dispose, reduce, reuse, and recycle solid waste;

(a) Water, septage and sewerage, and storm water management, which includes the
formulation and implementation of policies, standards, plans, programs and projects
for water supply and water resources management; integrated storm water
management, drainage and flood control; and septage and sewerage management
system;


(e) Disaster risk reduction and management, which includes the formulation and
implementation of plans, programs, projects, policies, standards and procedures to
achieve public safety, especially preparedness for preventive or rescue operations
during times of calamities and disasters; management of information; coordination
and mobilization of resources; and recovery, rehabilitation, and relief operations.
Section 8. Composition of the Mega Cebu Development Board (MCDB). The governing

and corporate powers of the MCDA shall be vested in and exercised by the Mega Cebu

Development Board (hereinafter referred to as MCDB or Board) composed as follows:

(a) Governor of the Province of Cebu;

(b) Mayors of the 13 cities and municipalities of Metro Cebu;

(©) President of the league of municipalities of Cebu;

(d) Congressional District Representatives of all congressional districts of Cebu;

(€) Directors of National Government Agencies and other government instrumentalities
in Region Vil as may be necessary to pursue the mandate and scope of services of
MCDA and as provided for under Section 7 hereof;

(f) Heads of private sector and civil society organizations, associations, and coalitions
coming from business, service, and investment; environment and_ social
development; and other relevant sectors, following a nomination process and
criteria as set out below; Provided, however, that the total number of the private
sector and civil society organizations hereof shall not be less than seven (7) but not
more than one-third (1/3) of the total composition of the Board;

(8) Chairperson of the Institutional Development Committee;

(h) Chairpersons of the Public Service Commissions;

(i) General Manager of the Authority, to be recommended by the Executive Committee
and confirmed by the MCDB, who shall serve as the Chief Operating Officer of the
MCDA and ex-officio member of the MCDB.

The officers of the MCDB shall consist of one (1) Chairperson and two (2) Co-
Chairpersons to be elected from among its members. The Chairperson shall be elected from
among the Governor and Metro Cebu Mayors on an annual basis by at least a 2/3 vote of all
members of the Board. He or she shall assume office following the election and until re-
elected or until a successor shall have been elected.

The two (2) Co-Chairpersons shall be elected to represent one (1) from the public
sector, and another one (1) from the private sector. The post of the Co-Chairpersons (public

and private sector) shall be for a three-year period and subject to re-election. The Co-


Chairperson from the private sector shall automatically assume as the Chairperson of the
Executive Committee as provided in Section 10 hereof.

All members of the MCDB shall serve only during their incumbency and tenure of
office (as representative of an organization, agency, or unit), unless sooner removed for
cause. In case of removal for cause, the replacement shall only serve the unexpired portion
ofthe term.

No representative of any organization shall be appointed or designated as
representative from the private sector and civil society unless chosen through a nomination
process in accordance with the implementing rules and regulations concerning the private
sector and civil society organizations.

Each member shall have equal voting rights and participate during the deliberations
of the regular and special business of the MCDB; Provided that, twenty (20) members of the
MCDB shall constitute a quorum for the conduct of regular and special meetings. All other
procedural matters including the conduct of meetings; identific

yn, nomination, and

election of members from among the private sector and civil s

ty as well as from national
government agencies and other government instrumentalities shall be prescribed in its
internal rules.

Section 9. Powers and Functions of the Mega Cebu Development Board. The MCDB
shall serve as the highest governing body of the Authority and shall perform the following
functions and powers:

(a) Adopt and approve rules and regulations to govern the conduct of business of the
Board;

(b) Approve the multi-LGU or metropolitan-wide short, medium, and long-term
development plans, policies, and programs, and such projects developed and
packaged by the RPOD-TOPO, the various Committees, Commissions, and respective
project management offices;

(c) Promulgate policies and standards for metropolitan-wide application governing the
delivery of services, prescription and collection of service and regulatory fees, and
the imposition and collection of fines and penalties, including the assessment and
collection of contributions, fees, and charges for the operation of the MCDA or use of
facilities or services, as may be deemed necessary and proper;

(d) Approve the organizational structure of the Authority, and as endorsed by the
Executive Committee, confirm or define the duties and responsibilities of all officers

and employees, including the appointment of key officials of the Authority, and fix


the compensation and benefits of officers and personnel, including the granting of
incentives;

(c) Approve the appointment or removal of the General Manager, Assistant General
Managers, or Chairpersons of the different commissions and committees as may be
endorsed by the Executive Committee;

(0 Approve, endorse, and incorporate plans, policies, programs, and projects
formulated by local government units and other public sector agencies, including
those areas and services which were not included in the Metropolitan Cebu
Roadmap, after proper consultation and coordination;

(g) Submit to the National Economic Development Authority (NEDA) Board its plans,
programs, projects and activities to enable adoption, endorsement, approval,
integration and/or progressive roll out of integrated and system-wide plans,
programs, projects, and spatial urban and rural design decisions;

(h) Form, establish, organize and maintain commissions to provide multi-LGU or
metropolitan wide services, in accordance with relevant Philippine laws; where the
majority members of the board of directors of the commissions so created shall be
from members of the MCDB, with one (1) of the directors being the Chairperson or
Co-Chairperson of the MCDB;

( Enter into contract and own properties; receive funding, payments, grants,
contributions and donations; sue and be sued in order to carry out its duties and
functions as provided for in this Act;

(i) Establish a conflict management committee to address conflicts to which all entities
and/or individuals will resort to, at the first instance;

(Kk) Perform any and all related acts to carry out its mandate and perform its objectives,
including the undertaking of delivery of services to the local government units when
deemed necessary, subject to prior coordination with and consent of the local
government unit concerned;

(1) Adopt, alter, and use a corporate seal; and,

(m) Carry out the purposes and provisions of this Charter.

Section 10. Creation and Composition of the Executive Committee of the Mega Cebu
Development Board. A body corporate to be known as the Executive Committee is hereby
created where corporate powers are vested to manage the affairs and further the purposes
ofthe MCDA. It shall be composed of the following members, to wit:

(a) Chairperson, Private Sector Co-chair of the Board;


(b) Governor or Representative of the Province of Cebu;
(©) Congressional District Representative who shall be elected from among the District
Representatives of Cebu;

(a) Mayor, or in his absence, Vice Mayor, representing all the cities within Metro Cebu;

(e) Mayor, or in his absence, Vice Mayor, representing all the mui
Metro Cebu;

palities within

(0 President of the league of municipalities of Cebu;

(g) Heads of the private sector and civil society organizations (MCDB member); one

from the business or for-profit sector and another one from the civil society or non-
profit sector who shall be elected as representatives from among the private sector
and civil society organizations;

(h) Chairperson of the Institutional Development Committee;

(W Chairpersons of the Public Service Commissions; and,

(i) General Manager of the Auth

Section 11. Powers and Functions of the Executive Committee. The Executive
Committee of the Mega Cebu Development Board shall have the following powers and
functions:
(a) Formulate, prescribe, amend and endorse rules and regulations to govern the
conduct of its business;
(b) Endorse to the MCDB for approval, the creation and organization of the Institutional
Development Committee, Public Service Commissions, and other committees as may
be necessary to fulfill the mandate ofthe Authority;

(c) Endorse to the MCDB for approval, the organizational structure of the Authority,

define the composition, duties and responsibilities of all officers and employees,
including the appointment of key officials of the Authority;

(a) Identify, select, appoint, suspend, remove or discipline the General Manager and
other key officials by majority vote of all the members of the Executive Committee
and endorse same to the MCDB for approval;

(e) Fix the compensation, benefits, and incentives of key officials and other staff of the
MCDA to perform finance and administration (to include human resources
management, audit, legal, reputation and risk management, IT); research and
knowledge management (to include monitoring and evaluation, education,
communications and stakeholder relations); planning, development, and technical

support (to include project development); and operations and services (to include


project management and service delivery); Provided that, the General Manager and
Assistant General Managers shall be exempt from Civil Service rules and regulations;

(0 Endorse to the MCDB the multi-LGU or metropolitan-wide short, medium, and long-
term development plans and programs, and such projects developed and packaged
by the RPOD-TOPO, the various Committees, Commissions, and respective project
management offices;

(g) Recommend investments programming for its plans and programs, as well as
supervise the implementation of plans and programs which includes the formulation
and coordination of related activities in Metropolitan Cebu;

(e) Endorse the annual and/or supplemental budgets of the Authority to the Board; and,

(N) Perform such other acts and assume such other functions as may be necessary to

carry out the provisions of the Charter.

Section 12. Creation of Institutional Development Committee. There shall be created
an Institutional Development Committee (IDC) which is necessary to provide support to
MCDA's operations and implement the internal programs and requirements of the MCDA;
with such committee overseeing the various components, operations, and processes of
MCDA such as finance and administration (to include human resources management, audit,
legal, reputation and risk management, IT); research and knowledge management (to
include monitoring and evaluation, education, communications and stakeholder relations);
planning, development, and technical support (to include project development); and
operations (to include project management and service delivery).

The Chair of the committee represents the IDC in the MCDB and Executive
Committee. Any MCDB or Executive Committee Member may opt to observe or be a part of
the IDC.

Section 13. Creation of Public Service Commissions. There shall be created Public
Service Commissions (PSCs) for the five (initial) focal areas of MCDA, including Integrated
Development and Spatial Planning (IDSP), Transport and Traffic Management (TTM), Solid
Waste Management (SWM), Water Supply Management (including septage and sewerage,
and storm water) (WSM) and Disaster Risk Reduction and Management (DRRM).

The PSCs, led by its respective Chairpersons, shall be composed of MCDB members
or other parties interested in contributing to the five focal areas. NGAs, GOCCs, LGUs and
other organizations mandated to provide services in these five focal areas shall be invited to
the appropriate PSC for membership or coordination.


Section 14. Creation of the Research, Program, and Organizational Development -
Technical, Operations, and Planning Office. There shall be created a Research, Program and
Organizational Development ~ Technical, Operations, and Planning Office (RPOD-TOPO)
which is necessary to deliver the MCDA’s mandate, provide support, and manage its
operations. The RPOD-TOPO shall serve as the coordinating and operations office, and

process facilitator for the Authority; providing finance and administration, research,

knowledge management and plani

ig expertise and services, technical support, operations,
service delivery and project management, as well as guidance to the Board, Executive
Committee, other Committees and Commissions; facilitate the organization, integration, and
‘complementation of the Authority's various functions, structures, plans, programs, projects

and se

s; and serve as Secretariat of the MCDB, Executive Committee, other Committees
and Commissions, to keep a record and have custody of the proceedings of all sessions
and/or meetings.

‘The RPOD-TOPO shall consist of the General Manager, Assistant General Managers,
appropriate supervisory and other employees of the MCDA. The General Manager (GM),
selected and appointed on the basis of defined competence and qualities, shall:

(a) Assis
(b) Assist in the supervision of the operation of the various committees, commissions,
and offices of the MCDA;

in the administration of the MCDA and supervision of subordinate personnel;

(0) Assist in the preparation and review of plans and programs of the MCDA for multi-
LGU or the Metropolitan Cebu Area; and the preparation of the annual report of
activities and accomplishments of the MCDA;

(a) As
of the MCDA for submission to and endorsement of the Executive Committee, and
approval by the Board;

in the preparation of the annual budget and financial report for the operations

(€) Perform such other duties and functions as may be lawfully delegated or assigned
from time to time.
There shall be appointed Assistant General Managers for Finance and
Administration;

Research and Knowledge Management; Planning, Development, and
Technical Support; and Operations and Service Delivery who shall be chosen based on
academic qualifications, competence, and experience, and perform their roles,
responsibilities, and functions in accordance with their respective Terms of References,


These departments will be staffed by appropriately qualified personnel with
relevant academic backgrounds and work experiences consistent with the purpose,
functions, requirements, and scope of the Authority.

All employees of the MCDA shall be subject to periodic monitoring and evaluation.

Section 15. Creation of Conflict Management Committee. There shall be created a

Conflict Management Com:

ee to address any controversy, primarily between and among
members from the local government units and agencies, private and business sectors, and
civil society. The parties shall first attempt to settle the dispute through dialogue. If a
settlement is not reached, any unresolved controversy shall be settled thru mediation and
arbitration by the Conflict Management Committee whose decision shall be final and
executory,

Section 16. Institutional Linkages. The MCDA shall establish institutional linkages
and relations with appropriate government agencies and units, private sector and civil
society organizations at the local, regional, national, and international levels concerning
matters of import and relevance to Mega Cebu or the Metropolitan Cebu area.

For this purpose and guided by rules and regulations, the MCDA shall carry out its
functions in consultation and close coordination with the LGUs, government agencies and
private sector and/or civil society organizations. To facilitate coordination and alignment,
LGUs, NGAs, GOCCs and other relevant organizations shall submit their policies, plans,
programs, and projects, particularly those that may affect or have an impact on Mega Cebu
or the Metropolitan Cebu area and related to the five (initial) focal areas as outlined in
Section 7 hereof.

The MCDA shall submit its development plans and investment programs to NEDA for
integration into the Medium-Term Philippine Development Plan (MTPDP) and public
investment program.

In the implementation of MCDA's plans and programs utilizing local, national and
other funds, which shall be undertaken either by the local government unit, national
government agency, or other public and private sector organizations responsible for the
delivery of such services, the MCDA may enter into contracts, memoranda of agreement and
other cooperative arrangements with these entities for the delivery of the required services,

‘The MCDA shall also coordinate and interface with foreign assistance and other
agencies for the purpose of obtaining financing and technical support, and securing
contributions, grants and donations from various sources to support its operations or

undertake its programs and projects.


Section 17. Focal Persons. There shall be appointed a focal person from each MCDB
member, from the LGU, National Government Agency or GOCC, private and civil society
sector to ensure close coordination with MCDA for the implementation, coordination, and
monitoring of plans, policies, programs, projects and services.

Section 18. Appropriations and Financing. For the organizational and operating
expenses of the Authority, an initial fund of ONE BILLION (P 1,000,000,000.00) shall be
appropriated by the National Government. Thereafter, the National Government shall
appropriate annually and include in the General Appropriations Act the funds as may be
needed or necessary for its personnel, capital expenditures, maintenance and other
operating expenses and for the continued implementation of this Act.

The operations of the Authority shall likewise be supported through financial
contributions and technical assistance from member LGUs, NGAs and GOCCs, civil society
and the private sector, and other local and international organizations in the form of grants,
donations, contributions, payments, penalties, fees and charges.

Section 19. Good Governance Clause. The MCDA adheres to the principles of good
governance that ensures commitment to: values and ethical conduct of its business;
transparency in transactions; an effective audit system; statutory and legal compliance;
adequate disclosures and effective decision-making to achieve its objectives,

Section 20. Implementing Rules and Regulations. Within six (6) months from the

approval of this Act, the rules and regulations to carry out the provisions of this Act shall be

formulated and approved by the MCDA.
Section 21. Transitory Provision. To prevent disruption in the implementation of the
development strategy and roadmap for sustainable urban development and pending the full
implementation of the MCDA’s organizational structure and staffing pattern, the Metro Cebu
Development and Coordinating Board (MCDCB) shall continue to exercise their mandate,

including its coordination efforts and other functions. All properties presently

use or
under the accountability of the MCDCB and all its obligations, indebtedness, or liabilities
shall be transferred to and assumed by the MCDA created under this Act.

Section 22. Separability Clause. If any provision or part hereof, is held invalid or
unconstitutional, the other provisions not otherwise affected shall remain in full force and
effect.

Section 23. Effectivity Clause. This Act shall take effect fifteen (15) days following
completion of its publication in at least one (1) newspaper of general circulation.

Approved.