FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
SENATE 
4, 
S. NO. 
I 
Introduced by Senator Antonio “Sonny” F. Trilianes N 
EXPLANATORY NOTE 
Mindanao, as one of the three main geographical divides of the Philippine archipelago, has been 
a hub of various development activities. These development efforts, however, are mostly 
concentrated on first class provinces, highly urbanized, and component cities. 
This bill, thus, seeks to provide equal opportunities to other local government units and improve 
the quality of life of many poor communities by creating the Mindanao Development Authority 
(MDA). 
The Mindanao Development Authority will be the central authority for the development of 
Mindanao. It is intended to adopt a comprehensive and integrated approach to harmonize 
various projects and promote the intrinsic potentials of the region. To achieve this, the agency 
will be assigned to identify the top eight (8) common problems of the local government units and 
focus on addressing these concerns. 
To optimize Mindanao’s potentials, the Authority, moreover, shall be tasked to pursue 
aggressive promotion campaigns through linkages with other international organizations and 
national government agencies to increase investments in the field of tourism, education, 
transportation, shipbuilding, agri-business, IT-enabled business, power development, and other 
related infrastructure development projects. It shall also promote competitive export products 
and services from Mindanao to other foreign countries, especially the East ASEAN Growth Area 
(EAGA). 
In view of the foregoing, immediate passage of this bill is earnestly sought. 
AN $5=-\1- 
ON10 “SONNY” F. TRILLANES N 
Senator 
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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
1 
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Introduced by Senator Antonio “Sonny” F. Trillanes IV 
AN ACT 
CREATING THE MINDANAO DEVELOPMENT AUTHORITY, DEFINING ITS 
POWERS AND FUNCTIONS, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION. 1. Short Title. - This Act shall be known as the “Mindunao Development 
Authority Act. ” 
SEC. 2. Declaration of Policy. - It is hereby declared policy of the State to accelerate the 
development of the regions of Mindanao as an integrated area, encourage greater productivity, 
promote the responsible use, processing, and harvest of its forest, marine life, mineral resources, 
and such other productive natural resource and ensure its sustainable development as well as 
promote conservation and protection of its endemic habitats for the common good. To attain this 
end, the Government will, in addition to its intra-regional activities, consolidate plans, priorities, 
and programs that will link projects to other regional, provincial, and urban centers focusing on 
the top eight (8) most common urgent priorities of these local govermnent units in terms of 
educational reforms, transportation 
and 
communication development, infrastructure 
development, tourism promotions, and economic activities not limited to manufacturing, 
farming, mariculture, and horticulture. 
It is further declared policy of the State to promote accelerated economic growth in 
Mindanao by strengthening its linkage and coordination with partner countries in the BIMP- 
EAGA as well as promote Mindanao products and services in the international market. 
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SEC. 3. Creation of the Mindanao Development Authorily. - There is herby created a 
body corporate to be known as the Mindanao Development Authority, hereinafter referred to as 
the Authority, which shall be governed by the provisions of this Act. 
SEC. 4. Territorial Jurisdiction. - The Authority shall cover a1 towns, component, cities, 
highly urbanized cities, and provisions of Regions M, X, XI, XII, and XI11 in Mindanao. 
SEC. 5. Principal O f f e  and Term. - The Authority shall have its main office at 
Malaybalay City, Bukidnon. It may establish such branches, subsidiaries, offices, or agencies as 
it may deem necessary to achieve the objectives of this Act. The Authority shall have a term of 
fifty (50) years from the effectivity of this Act and renewable for the same period unless 
otherwise provided by law. 
SEC. 6. Purposes. - The Authority is created to plan and catalyze the development of 
Mindanao as an integrated cohesive economy. As such, it shall have the following purposes: 
a) Identify the top eight (8) most basic social and infrastructure needs shared by all 
provinces and cities and draft a comprehensive detailed plan designed to address 
these problems and accelerate social and economic development; 
b) Extend technical assistance to prospective investors and locators as well as to existing 
investors in Mindanao to promote further economic activity and community 
development and provide employment opportunities; 
c) Make recommendations to proper agencies as to the technical support, financial, and 
infrastructure requirement of Mindanao to achieve the intents and purposes of ths 
Act; 
d) Initiate and undertake social project for the promotion of community life and improve 
the quality of life of children, senior citizens, women folks, cultural minorities and 
tribal communities, farmers and fisher folks; 
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rebel-returnees and their families; 
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f) Develop micro-industries and promote technical vocational educational, horticulture, 
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fishermen’s cooperatives; 
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the domestic market; 
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e) Promote socio-political stability and vigorously pursue projects that will benefit the 
and agro-business in upland areas; 
g) Utilize idle government lands into productive fm models for use of farmers’ and 
h) Make an annual report to the National Economic Development Authority and the 
Congress through the President based upon its continuing assessment and evaluation, 
in the light of the Authority’s approved plans and objectives, of the progress of its 
hfferent activities and actual accomplishments and development targets including 
appropriate administrative and legislative recommendations; 
i) Strengthen linkages with BIW-EAGA partners and promote economic and social 
programs for the various regions in Mindanao; 
j) Harness the technical skills of workers to be at par with international standards and 
provide employment opportunities for the residents of Mindanao; 
k) Promote Mindanao products at the international market and increase productivity at 
1) Pursue such other activities for the continued development of all Mindanao regions 
that are consistent with this Act. 
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functions given as follows: 
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Act; 
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SEC. 7. Corporate Powers. - The Authority shall exercise the powers and perform the 
a) To sue and be sued, enter into contracts, acquire, purchase, hold, lease, transfer, 
dispose of property of any kind or nature necessary to cany out the purposes of this 
b) To cause the reclamation of lands, including foreshore and submerged areas within its 
operation by dredging filling or other means or to acquire reclaimed lands; 
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c) To cause the development, improvement, acquisition, administration, dealing in, 
subdivision, disposition, leasing, and selling of reclaimed areas and any or all kinds of 
lands owned, managed, controlled, and/or operated under its jurisdiction, and to 
provide such services as may be necessary for the efficient, economic and beneficial 
utilization of the Authority’s properties; 
d) To receive, take, and hold by bequest devise, gift, purchase, loan, lease, or by any 
lawful manner; to manage or administer either absolutely or in bust for any of its 
purposes, any asset, grant, or property, real or personal, from foreign or domestic 
sources, subject to such limitations as are provided in existing laws and regulations; 
and to convert such assets, grant or property; invest and reinvest the same under this 
provision; 
e) To acquire, purchase, alter, construct, enlarge, occupy mortgage, manage, and 
dispense by lease or sale or otherwise deal in lands and buildings of every kind and 
character, whether belonging to or to be acquired by the Authority; 
f )  To issue such regulations as may be necessary for the proper use by private parties or 
government entities of any or all of the Authority’s properties and to impose or 
collect fees or tolls for their use; 
g) To engage or invest on, or enter into joint venture with Filipino and foreign investors 
in Mindanao-wide inter-regional projects in terms of road infrastructure development, 
port, and airport development and rehabilitation, improve transportation 
infrastructure, telecommunications, real estate development, education, agriculture, 
fisheries industiy promotion, natural resources, power projects, trade and tourism 
industry promotions and such other major economic and development projects; 
h) To exercise the right of eminent domain in the name of the Republic of the 
Philippines as may be necessary to cany out the purposes of this Act; 
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i) To review and recommend for approval by the Mindanao Development Advisory 
Council such Mindanao-wide and interregional programs, projects, and plans by 
national and local government authorities; 
j) To borrow funds from any local or foreign financial institution independent of the 
bonds it has issued or may still issue, to finance its projects: Provided, That the total 
loan outstanding pursuant to this provision shall not exceed Two Hundred Million 
Pesos at any one time; In excess, thereof, the Authority shall secure the approval of 
the President upon the recommendation of the Secretary of the Department of 
Finance; 
k) For carrying on its business or for the purpose of attaining or furthering any of its 
objects, to perform any and all acts which a corporation, co-partnership, or natural 
person is authorized under the laws now existing or which may be enacted hereafter; 
and 
1) Determine its own organizational structure and revise the same in accordance with 
existing guidelines and laws on civil service. 
SEC. 8. Cupitulizution. - The Authority shall have an authorized capital stock of One 
Billion Pesos (F'l,OOO,OOO,OOO.OO) 
to be fully subscribed and paid by the Government of the 
Republic of the Philippines, to be appropriated out of any funds in the National Treasury not 
otherwise appropriated and/or proceeds from loans and the issuance of bonds and other forms of 
evidences of indebtedness which are hereby authorized to be incurred or to be issued by the 
Secretary of Finance for the purpose. 
The Southern Philippines Development Authority and Mindanao Economic and 
Development Council are hereby abolished and all its assets and liabilities are hereby absorbed: 
Provided, That existing liabilities of the Southern Philippines Development Authority and 
Mindanao Economic and Development Council due the National Government are hereby 
converted into capital of the Authority. 
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SEC. 9. Operating Expenses. - There is hereby appropriated the sum of Five Million 
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Pesos (P5,000,000.00) out of the funds of the National Treasury not otherwise appropriated for 
the operating costs of the Authority for the current year. Thereafter and for subsequent fiscal 
years, the amount necessary for its operations and implementation of its priority projects shall be 
included in the General Appropriations Act. 
SEC. 10. Board of Directors and Advisoiy Council. - The Authority shall be led and 
directed by a Board Directors. The Board shall have eleven (1 1) members and shall be headed by 
a Chairman, to be appointed by the President of the Philippines. The members shall be the 
chairpersons of the respective Regional Development Councils of Regions IX, X, XI, XII, XIII, 
and ARMM, 
two (2) representatives from reputabIe non-government organizations as chosen by 
the Advisory Council, the Chairperson of the Philippine Economic Zone Authority (PEZA) and 
the Chairperson of the Board of Investments POI). 
The Board shall receive policy guidance from an Advisory Council, hereinafter referred 
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to as the Mindanao Development Advisory Council composed of the Secretary of the National 
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Economic Development Authority @VEDA), Secretary of the Department of Budget and 
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Management (DBM), Secretary of the Department of Energy (DOE), Secretary of the 
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Department of Agriculture (DA), Secretary of Department of Public Works and Highways 
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(DPWH), Secretary of the Department of National Defense (DND), Secretary of the Department 
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of Trade and Industry (DTI), Secretary of the Department of Environment and Natural Resources 
(DENR), Secretary of the Department of Tourisin (DOT) and from two (2) representatives from 
the private sector to be appointed by the President of the Republic of the Philippines from a short 
list that will be submitted by the Board of Directors. The two (2) shortlist representatives shall 
have at least fifteen (1 5) years of experience in the field of banking infrastructure development, 
urban or rural planning, financial management, business administration, agriculture, environment 
protection and cultivation, or in the legal profession and is well-versed in the geography of 
Mindanao and with residency in Mindanao for the past ten (10) years. 
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The Board shall: 
a) Formulate policies, develop programs, and promulgate d e s  and regulations to carry 
out the powers and functions of the Authority; 
b) Approve its annual budget to cover its operation and special projects; 
c) Submit its yearly appropriation requirement to the Department of Budget and 
Management and to Congress; 
d) Appoint its officers and personnel, fix their salaries and allowances in accordance 
with existing budgetary laws and civil service regulations; 
e) Perform whatever functions as may be necessary to carry out the provisions of this 
Act. 
SEC. 11. Terms of Office. - The Chairman of the Authority shall serve a term of six (6) 
years from the date of his appointment and can only be removed for cause. The members of the 
Board shall have a term of three years which is consistent with their terms as Regional 
Development Chairpersons. In the case of the two (2) representatives from non-government 
organizations, the first appointee shall serve for three years and the second appointee for two (2) 
years. 
The term of office of Regional Development Council Chairperson is dependent on 
respective tenure with their Regional Development Councils. 
The first appointee to the Council from the non-government organizations shall serve a 
period of three (3) years and the second appointee for two (2) years. They can be reappointed 
only for two (2) consecutive terms only. 
In case of vacancies, the successor can only serve the remaining unexpired term of his 
predecessor. 
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SEC. 12. Duties and Functions of the Citairman of the Board. -The Chairman shall: 
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a) Call and preside at the meetings of the Board and see to it that the policies, programs 
and rules and regulations developed and promulgated by the Board are properly 
implemented; 
b) Present and submit for the approval of the Board: 
(a) Annual budget of the Authority; 
(b) Rules and regulations needed to carry out the intents and purposes of this Act; 
(c) Quarterly reports on the projects, programs and finances of the Authority; 
(d) Annual report to be submitted to the President of the Philippines and to both 
Houses of Congress: 
(e) Other matters which he may deem necessary for the effective implementation 
of the provisions of this Act. 
c) Perform such other functions which the Board and the Advisory Council may direct 
to carry out the provisions of this Act. 
SEC. 13. Organizational Structure. - The Board shall determine the organizational 
structure, staffing pattern, and pay scales subject to existing civil service laws and compensation 
laws. The Board may reorganize the same, create or abolish divisions, offices, or branches as the 
exigencies of the affairs of the Authority may require. 
SEC. 14. Administrator. - The Board shall have an Administrator to be appointed by the 
President of the Philippines who shall be the Chief Executive Officer of the Authority and ex- 
officio Vice Chairman of the Board with the rank and salary of an Undersecretary. The 
Administrator shall be a resident of Mindanao for at least ten (10) years and has a proven track 
record in any of the following fields: business, management, economics, law, and infrastructure 
development for the past fifteen (15) years. 
The Administrator shall have the following powers, duties, and responsibilities: 
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a) To submit to the Board, through the Chairman, policies and measures which are 
necessary to carry out the provision of this Act; 
b) To prepare the Budget of the Authority for approval of the Board; 
c) To execute and administer the policies and measures approved by the Board; 
d) To direct and supervise the operations and internal administration of the Authority. 
He may delegate certain administrative responsibilities to other officers of the 
Authority, subject to the approval ofBoard; 
e) To appoint all employees of the Authority, except the heads of departments and 
divisions whose appointments shall be made by the Board upon his 
recommendations; and to remove, dismiss, or otherwise discipline for cause such 
employees in accordance with existing laws, rules and regulations; 
f) To represent the Authority in all dealings with other offices, agencies, and 
instrumentalities of the Government and with all persons and entities, public or 
private; 
g) To exercise such other powers as may be granted to him by the Board. 
SEC. 15. Power to Issue Bonds and Bond Limits. - Whenever the Board may deem it 
necessary for the Authority to incur indebtedness or to issue bonds to carry out the provisions of 
this Act, it shall, by resolution, so declare and state the purposes for which the proposed debt is 
to be incurred. 
In order for that resolution to be valid, it shall be passed by a simple majority of all 
members of the Board, affirmed by the Advisory Council, and approved by the President of the 
Republic of the Philippines upon the recommendation of the Secretary of the Department of 
Finance (DOF), in consultation with the Monetary Board and the Governor of the Bangko 
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Sentral ng Pilipinas (BSP). 
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The bonds issued shall in no case exceed the amount of One Hundred Million Pesos 
(F'lOO,OOO,OOO.OO): Provided, That no single issue shall exceed Twenty Million Pesos and that 
no further issue be made if eighty per centum of the immediately preceding issue is not yet sold. 
The bonds shall be issued in such amounts as will be needed at one time, taking into 
account the rate at which said bonds may be absorbed by the buying public and the fund 
requirements of projects ready for execution, and considering further a proper balance between 
productive and non-productive projects so that inflations shall be held to the minimum. 
SEC. 16. Sinking Fund. - A sinking fund shall be established by the Authority in such 
manner that the total annual contributions thereto, accrued at such rate of interest as may be 
determined by the Secretary of Finance in consultation with the MonetaIy Board, shall be 
sufficient to redeem at maturity the bonds issued under the provisions of this Act. Said fund shall 
be under the custody of the Authority, which shall invest the same in such manner as the 
Monetary Board may approve, charging all expenses of such investment of said sinking fund, 
and crediting the same with interest on investments and other income accruing thereto. 
SEC. 17. Foreign Loans. - The Authority is hereby authorized to contract loans, credit, 
and indebtedness, in any convertible foreign currency or capital goods from time to time from 
foreign governments or any international financial institutions or fund sources. 
SEC. 18. Auditor. - The Chairman of the Commission on Audlt shall be ex officio 
Auditor in charge of the audit of the Authority. He shall appoint a representative who shall be the 
auditor thereof The Chairman of the Commission on Audit shall, upon recommendation of the 
Auditor of the Authority, appoint or remove personnel of said auditing office in accordance with 
the Authority's merit system. 
The Auditor shall submit an audit report containing the resources and liabilities including 
earnings and expenses, reserves, and profits as well as losses, bad debts and other facts which are 
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under the auditing standards, rules and regulations, accurately describing the financial conditions 
and operations of the Authority. 
The Authority shall publish annually its financial statements in two (2) newspapers of 
general circulation in Mindanao. 
SEC. 19. Relationship with Regional Development Councils. - To effectively 
implement the provisions of this Act, the Authority shall coordinate with, consult or implement 
its policies and projects in coordination with local government units and regional development 
councils covered under this Act. 
All local government units and regional development councils shall assist the Authority 
in the pursuit of its socio-economic development efforts to promote Mindanao. 
SEC. 20. Merit System. - All officials and employees of the Authority shall be selected 
and appointed on the bases of merit and fitness in accordance with Civil Service Law, rules and 
regulations. Their qualifications being equal, long time residents of Mindanao shall be preferred 
in recruiting Authority personnel. The recruitment, transfer, promotion, and dismissal of all its 
personnel including temporq workers shall be governed by a merit system that will be 
established by the Authority in compliance with existing laws, rules and regulations. 
SEC. 21. Donations and Gifts. - The Authority shall have the right to receive donations 
or bequests which shall be utilized only for the implementation of its programs and project. Any 
such donations or bequests shall be exempt from the payment of taxes and the full amount of 
such donations or bequests shall be deductible from the gross income of the donor for the year 
during which the same is made. 
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SEC. 22. Applicability of Corporation Law. - The provisions of Corporation Law, as 
amended insofar as they are not inconsistent with this Act shall be applicable to the operations of 
the Authority. 
SEC. 23. Abolition of the Southern Philippines Development Authority (SPDA) and 
the Mindanao Economic Development Council (MEDC). - The Southern Philippines 
Development Authority (SPDA) under Presidential Decree No. 1703, amending P.D. No. 690 
and Republic Act No. 3034 are hereby abolished. All its budgetary appropriations, finances, 
properties, records, equipment, rights, chooses in action, and other assets as well as liabilities are 
hereby transferred to the Authority. 
SEC. 24. Appropriations. - The amount necessary to carry out the provisions of this Act 
shall be included in the General Appropriations Act of the year following its enactment into law. 
The current appropriations of the Mindanao Economic Development Council and 
Southern Philippines Development Authority shall be transferred to the Mindanao Development 
Authority to commence its activities. 
SEC. 25. Separability Clause. - Should any provisions of this Act be declared invalid or 
unconstitutional, any provision not affected thereby shall remain in full force and effect. 
SEC. 26. Repealing Clause. - Republic Act No. 3034, and Presidential Decree No. 690, 
as mended are hereby repealed. Executive Order Nos. 149 (Series of 2002), 149-A (Series of 
2002) and 560 (Series of 2006) are hereby repealed. 
Executive Oder No. 512, as amended by Executive Order No. 10 (Series of 1998), 
Executive Order No. 244 (Series of 2000) are hereby repealed. 
All other laws, decrees, orders, rules and regulations and other issuances or parts thereof 
inconsistent with this Act are hereby repealed or modified accordingly. 
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SEC. 27. Effectivig. - This Act shall take effect fiReen (15) days after its publication in 
two (2) newspapers of general circulation in Mindanao and the entire country. 
Approved, 
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