TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
25 JIJL-8 ?5:C9
SENATE 
Senate Bill No.
Introduced by Senator JOEL VILLANUEVA
AN ACT
PROVIDING FOR THE CREATION OF THE PHILIPPINE 
EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE AND 
FOR OTHER PURPOSES
EXPLANATORY NOTE
Extractive industries have the capacity to contribute to national growth and 
development, especially in resource-rich countries like the Philippines. They have the 
potential to provide livelihood opportunities, create jobs, and channel additional 
government resources to host communities. Nevertheless, the gains from the oil, gas, 
and mineral resources do not consistently yield tangible improvements and positive 
impact for the broader population. Across the globe, extractive industries are marred 
with various issues on environmental degradation, fiscal misconduct, poverty, and 
corruption.
In response to these issues, the Extractive Industries Transparency Initiative 
(EITI) was launched to allow for full disclosure of, and public access to, information 
regarding the extractive industry. The EITI is an internationally recognized framework 
and practice that monitors revenue and public benefit from mining and other extractive 
resources. Composed of representatives from the government, extractive industry 
players, and civil society organizations, EITI provides a platform for regular and 
systematic reporting, review, and assessment of information. It also strengthens 
multi-sectoral participation in crafting and implementing regulatory policies governing 
extractive industries.
In the Philippines, the EITI was established on 26 November 2013, pursuant to 
Executive Order No. 147 entitled "Creating the Philippine Extractive Industries 
Transparency Initiative." Since its inception, the Philippine EITI (PH-EITI) served as 
an effective platform for public disclosure of information on fees, taxes, and other 
payments made by mining companies. The later expansion of PH-EITI enabled the


coverage of oil and gas industries. Furthermore, regular reports published by the PH- 
EITI also later expanded to include publicly disclosed information on social and 
environmental impact of the extractive industries.
Among the impacts of this initiative, the PH-EITI strengthened the capacity of 
local government units (LGUs), as well as other stakeholders such as community 
groups, civil society organizations, and indigenous people, in monitoring the mining 
activities in their respective areas through regular disclosure of the share of LGUs in 
the revenues from extractive industries. Over the years since its inception, PH-EITI 
data collection and reporting provided different stakeholders the instrument and 
proper platform to formulate real governance reforms on the ground.
The passage of this measure is more urgent considering the impending 
enactment of the Enhanced Fiscal Regime for Large-Scale Mining Act. While the 
Enhanced Mining Fiscal Regime aims to ensure a fair government share, attract 
responsible investment through a predictable fiscal framework, strengthen 
environmental safeguards, and improve the ease of doing business in the extractive 
sector, its success depends on the public's ability to monitor whether the promised 
reforms under said Act are delivered. Institutionalizing the PH-EITI will complement 
the fiscal regime by reinforcing transparency in revenue flows, promoting data-driven 
oversight, and building public trust in extractive governance. It ensures that the fiscal 
gains from mining are not only collected but also disclosed, tracked, and utilized 
effectively for the benefit of the public.
In view of the foregoing, the immediate passage of this bill is earnestly sought.
JOEj2^ILLANUEVA9^


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
JiJL -8
P5 :09
SENATE
Senate Bill No.
246
Introduced by Senator JOEL VILLANUEVA
AN ACT
PROVIDING FOR THE CREATION OF THE PHILIPPINE 
EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE AND 
FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
CHAPTER I
2 
General Provisions
3 
SECTION 1. Short Title. - This Act shall be known as the "Philippine
4 
Extractive Industries Transparency Initiative Act"
5 
SEC. 2. Declaration of Principles. - All natural resources are owned by
6 
Filipinos represented by the State. It shall be the responsibility of the State to
7 
ensure that the present and future generations benefit from these finite resources.
8 
The State must then establish a mechanism by which the Filipino people are fully
9 
aware of how proceeds from their finite resources are being utilized.
10 
SEC. 3. Definition of Terms. - As used in this Act:
11 
a) Agreement refers to a contract between the Government and a Contractor,
12 
involving financial or technical matters;
13 
b) Contractor refers to a qualified person acting alone or in consortium who is
14 
a party to a mineral agreement or to a financial or technical assistance
15 
agreement.


1 
c) Extractive Industries refer to the mining, oil, gas and coal sectors, and all
2 
other sectors that require the extraction of non-renewable natural resources
3 
for commercial use;
4 
d) Financiai or Technicai Assistance Agreement (FTAA) refers to a
5 
contract involving financial or technical assistance for large-scale exploration,
6 
development and utilization of mineral resources;
7 
e) Independent Firm refers to an accounting or auditing firm that has no
8 
existing relationship with either the Government or any of the companies that
9 
are part of the Philippine Extractive Industries Transparency Initiative (PH-
10 
EITI);
11 
f) 
Mineral Production Sharing Agreement (MPSA) refers to a n agreement
12 
where the government grants to the contractor the exclusive right to conduct
13 
mining operations within a contract area and shares in the gross output. The
14 
contractor provides the financing, technology, management and personnel
15 
necessary for the implementation of the agreement; and
16 
g) 
Multi-stakeholder Group (MSG) shall have the meaning given to it under
17 
Section 14 of this Act.
18 
CHAPTER II
19 
Establishment of the Philippine
20 
Extractive Industries Transparency Initiative
21 
SEC. 4. Creation of PH-EITI. - There is hereby created the Philippine
22 
Extractive Industries Transparency Initiative (PH-EITI).
23 
SEC. 5. Composition. - The PH-EITI shall be composed of a broad coalition
24 
of stakeholders, including representatives from the government, the private sector,
25 
the indigenous community, and non-governmental organizations. The PH-EITI
26 
shall be governed by a multi-stakeholder body, which shall be constituted in
27 
accordance with the provisions of Chapter V of this Act.
28 
CHAPTER III
29 
Objectives of the PH-EITI
30 
SEC. 6. General Objectives - The general objective of the PH-EITI is to
31 
improve governance and management of the natural resources in the country and
32 
ensure that all of what is due to the Filipino people and the Government on account


1 
of the exploitation and/or extraction of the country's mineral, oil, gas and other
2 
natural resources are (a) verifiably paid; (b) duly accounted for; and (c) judiciously
3 
utilized for the benefits of all Filipinos and on the basis of intergenerational equity
4 
and sustainabiiity.
5 
SEC. 7. Specific Objectives. - The specific objectives of the PH-EITI
6 
shall include, but not be limited, to the following:
7 
a) Ensure sustained political commitment for the initiative and mobilize
8 
resources to sustain its activities and goals;
9 
b) Require all companies engaged in the extraction of naturai resources to
10 
participate in such initiative;
11 
c) Promote genuine participation of civil society in the design, implementation,
12 
evaluation, and modification of policies and actions of the Government
13 
associated with resource governance in the Philippines;
14 
d) Impiement and ensure compliance to the standards and policies of the global
15 
initiative;
16 
e) Ensure that the initiative is effectively integrated in other related government
17 
reform agenda; and
18 
f) Promote better understanding of the public on the nature of extractive
19 
industries and the benefits of transparent and accountable governance of our
20 
natural resources.
21 
CHAPTER IV
22 
Scope and Focus of the PH-EITI
23 
SEC. 8. Appiicabiiity. - This Act shall apply to all extractive industries,
24 
government agencies at the national and local level in the country. National and
25 
local governments shall be mandatorily required to participate in reporting relevant
26 
data pursuant to this Act.
27 
SEC. 9. Scope. - The scope of the PH-EITI shall include:
28 
a) Revenue transparency, which means the timely disclosure, reconciliation or
29 
audit and publication of all data of material national and local payments and
30 
revenues sourced from the extractive activities covered by the scope of the
31 
PH-EITI;


1 
b) Contract transparency, which means public accessibility of all concessions,
2 
contracts/licenses, agreements and joint ventures that the Government
3 
enters into related to the extractive sectors within the scope of the PH-EITI
4 
including related documents and attachments to the contracts; and
5 
c) Accessibility of data, information and reports on the extractive industries,
6 
which means public release of data, documents, and information in a format
7 
that allows the public to freely use, re-use and redistribute them, for any
8 
purpose, without restrictions.
9 
SEC. 10. Sectors Covered. - For the purpose of this Act, the following
10 
sectors shall be covered by and within the scope of the PH-EITI: (a) the mining
11 
sector; (b) the oil and gas sector; (c) the coal sector; and (d) such other sectors
12 
as the multi-stakeholder group may subsequently determine and deem necessary.
13 
The covered sectors shall submit relevant data, including, but not limited, to the
14 
cost of their operations, amount of minerals sold, which shall be disaggregated per
15 
transaction, and include such information as the name of the buyer/s, country of
16 
destination, among others, and other related costs, which shall also be
17 
disaggregated.
18 
SEC. 11. Annual Report - The PH-EITI shall submit an annual report to
19 
the President and Congress, in any case not later than April 30 of each year.
20 
The annual report to be prepared, submitted, and published by the PH-EITI
21 
shall comply with the international standards of EITI and include additional
22 
reporting requirements as agreed upon by the PH-EITI MSG.
23 
SEC. 12. Monitoring of Payments. - The payment and utilization of taxes,
24 
fees, surcharges, and similar charges made by extractive companies and/or
25 
contractors shall be closely monitored by the PH-EITI. All fiscal payments and
26 
mandatory expenditures by contractors shall be disclosed to the PH-EITI MSG for
27 
the production of the annual EITI report. National and local governments shall also
28 
submit a report on how the proceeds from the extraction of resources were
29 
utilized.
30 
CHAPTER V
31 
Creation of a Multi-Stakeholder Group


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
SEC. 13. Composition. - In accordance with the EITI International 
Standards and with due regard to the Philippine context, there shall be created a 
multi-stakeholder group (MSG) that will be in charge of the PH-EITI.
The PH-EITI MSG shall be headed by a Chairperson, to be appointed by the 
President of the Philippines, who must be either: (1) a Cabinet secretary, (2) the 
head of the interagency coordinating council on the extractive sector, or (3) a 
presidential adviser. The functions of the Chairperson shall include convening the 
group and organizing a secretariat.
The PH-Em MSG shall likewise consist of representatives from the following 
sectors:
a) 
Government Representatives. The government representatives shall be 
composed of (1) senior officials from concerned agencies appointed by the 
President of the Philippines, (2) representatives from local government units, 
which shall be the president of the leagues of various local government units; 
and (3) representatives from the Congress, to ensure that the findings of the 
EITI will be used for more effective and more responsive policies;
b) 
Industry Representatives. The industry representatives shall be composed of 
officials from the extractive industries included in the EITI;
c) 
Civil Society Organizations (CSOs) Representatives. The civil society shall 
independently select their representatives in the EITI; and
d) 
Indigenous Peopies (IPs) Representatives. The IP representative shall be 
selected by a caucus of IP organizations affected by mining operations.
The Chairperson and the members shall designate a permanent and alternate
representative to PH-EITI MSG. Each organization, upon the decision of its 
members and through its independent process, can replace their representatives 
in the MSG any time following their own governance mechanism.
SEC. 14. Reguiar Meeting of PH-EITI MSG. - The PH-EITI MSG shall 
meet once a quarter, or as often as necessary.
For urgent matters where decision is needed, necessary information shall be 
circulated through email so that decisions can be made electronically by consensus.
Fifty percent (50%) of the members, with at least one representative from 
the government, CSOs, IPs, and business sector shall constitute a quorum for the


1 
transaction of business of PH-EITI MSG. The MSG, shall, in good faith, make
2 
decisions by consensus.
3 
SEC. 15. Annual Meeting of PH-EITI MSG Members. - The members
4 
of PH-EITI MSG shall hold their annual meeting on the month of April of each year.
5 
The agenda of the meeting shall include, but not be limited to, the approval of the
6 
activities, reports, accounts and the activity plan of the PH-EITI, and any other
7 
acts or matters which may be brought to the attention of the PH-EITI in the pursuit
8 
of its mandate as provided under this Act and relevant regulations.
9 
SEC. 16. Notice of Meetings. - The Chairperson shall call and preside over
10 
the meetings. Notices shall be sent out by the PH-EITI secretariat at least one
11 
week before the date of the meeting. The secretariat shall handle the
12 
documentation and preparations of the minutes of the meeting.
13 
SEC. 17. Review of the MSG. - The composition and number of
14 
representatives shall be subject to regular review by the PH-EITI MSG. Other
15 
agencies may form part of the MSG, subject to the evolving needs and scope of
16 
the EITI implementation; Provided, That all sectors should be adequately
17 
represented in the MSG at all times; Provided further, That the existing PH-EITI
18 
created under Executive Order No. 147, s. 2013 shall be henceforth constituted
19 
under the provisions of this Act.
20 
CHAPTER VI
21 
Secretariat Office and Funding
22 
SEC. 18. PH-EITI Office. - There is hereby created the PH-EITI Office
23 
under the Office of the President, to be headed by a National Coordinator selected
24 
by the PH-EITI MSG.
25 
The staffing pattern, including the duties, qualifications, responsibilities and
26 
functions, and compensation scheme of the personnel of the PH-EITI Office shall
27 
be determined by the MSG, upon the recommendation by the National Coordinator.
28 
For this purpose, the creation of the corresponding plantilla positions is hereby
29 
authorized.
30 
SEC. 19. Funding. - The Congress shall allocate adequate funding for the
31 
implementation of PH-EITI in the General Appropriations Act: Provided, That the
32 
said amount shall not be less than the amount equivalent to one percent to two


1 
percent (1% to 2%) of the gross proceeds of the sectors covered by and within
2 
the scope of the PH-EITI, as defined in Section 10 of this Act.
3 
The PH-EITI Office shall have the authority to receive, disburse, and manage
4 
financial aid or grants from foreign and domestic entities to be utilized for the
5 
implementation of the objectives of PH-EITI, subject to the usual accounting and
6 
auditing rules and regulations of the government.
7 
CHAPTER VII
8 
Exemption from Confidentiality Clauses
9 
SEC. 20. Exemption from Confidentiality Clauses. - Confidentiality
10 
provisions stated under applicable laws, including, but not limited, to the provisions
11 
of Section 270 of the National Internal Revenue Code, Article 81 of the Omnibus
12 
Investments Code, among others, shall not be applicable to extractive companies
13 
insofar as their participation in the PH-EITI process is concerned.
14 
CHAPTER VIII
15 
Penalties
16 
SEC. 21. Penalties. - Failure to participate in PH-EITI shall be a ground for
17 
suspension of the contractor's permit to operate and blacklisting for future
18 
projects. A contractor that, without justifiable cause, unreasonably delays or
19 
causes the delay of submission of the reporting template within the deadline set
20 
by PH-EITI shall be imposed a fine of One Million Pesos (Phpl,000,000.00).
21 
Sanctions provided under this Act shall be imposed by the responsible regulatory
22 
agency, as the case may be, pursuant to the concerned agency's internal rules and
23 
regulations.
24 
CHAPTER IX
25 
Transitory and Miscellaneous Provisions
26 
SEC. 22. Implementing Rules and Regulations - Within sixty (60) days
27 
from the effectivity of this Act, the Secretaries of Finance, Budget and
28 
Management, Environment and Natural Resources, Interior and Local Government,
29 
and Energy, in consultation with relevant stakeholders, shall promulgate the
30 
necessary rules and regulations for the effective implementation of this Act.


1 
SEC. 23. Separability Clause. - If any portion or provision of this Act is
2 
declared unconstitutional, the remainder hereof or any provisions not affected
3 
thereby shall remain in force and effect.
4 
SEC. 24. Repealing Clause - Any law, presidential decree or issuance,
5 
executive order, letter of instruction, rule, or regulation inconsistent with the
6 
provisions of this Act is hereby repealed or modified accordingly: Provided, That
7 
nothing in this Act shall be construed as a diminution of local autonomy or in
8 
derogation of ancestral domain rights under Republic Act No. 8371 or the
9 
Indigenous Peoples' Right Act of 1997.
10 
SEC. 25. Effectivity. - This Act shall take effect fifteen (15) days after its
11 
complete publication in the Official Gazette or in a newspaper of general
12 
circulation.
Approved,
8