Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Representative Michael L. Romero 
    EXPLANATORY NOTE 
The National Development Company (NDC), one of the oldest companies in the 
Philippines was established on March 10, 1919 via Legislative Act 1248. NDC’s 
first name was “Compania de Fomento Nacional”. 
In the context of Philippine economic history, the NDC has remained a constant 
force, initiating ventures, facilitating cooperation, and ensuring a continuity in 
stewardship for whatever it has started. It was, and remains, a vital link in the 
machinery, allowing bigger and more powerful entities to interact and make a 
difference. It may be a modest link, but through its unifying function, it has 
helped consolidate efforts and resources for outcomes that have changed lives, 
proving that the whole can indeed be greater than the sum of its parts. 
This House Bill seeks to provide Modernization Funding to the National 
Development Company (NDC) to act as the Philippine’s leading state-owned 
enterprise investing in diverse industries, serving as an effective catalyst for 
inclusive growth. 
. 
Thus, the early passage of this bill is earnestly requested. 
MICHAEL L. ROMERO 
November 7, 2022
8:15 am
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Representative Michael L. Romero 
AN ACT 
PROVIDING FOR MODERNIZATION FUNDINGFOR THE NATIONAL 
DEVELOPMENT COMPANY (NDC), INCREASING AND 
REORGANIZING ITS ADMINISTRATION, ENABLING INDUSTRY 
DEVELOPMENT, SPURRING LOCAL ECONOMIES AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 
1. 
DECLARATION OF POLICY – it shall hereby be a declared 
policy of the state to serve as a reliable partner of both public and private sectors 
in sustaining the country’s socio-economic development efforts. 
To uphold this commitment, the state shall: 
a. Continuously invest in strategic priority areas that
will sustain our fund generation activities;
b. Practice prudence in handling corporate resources to
warrant maximum public impact;
c. Establish 
mechanisms 
and 
procedures 
that
reinforces learning, continual improvement and risk-
based thinking;
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d. Ensure business plan continuity, responsiveness 
and transparency in accordance with NDC’s code of 
corporate governance; 
e. Advocate excellence, accountability, and teamwork 
to advance the interest of our stakeholders; and; 
f. Invest in our human capital as it is our most 
valuable resource. 
The state shall continually improve the effectiveness of our Quality Management 
System towards equitable development for improved quality of life for all. 
The state shall formulate policies for the efficient and effective administration 
and management of all manpower, skills and competencies to ensure 
compliance. 
SECTION 
2. 
MODERNIZATION FUNDING. – The amount of Five 
Hundred Million Pesos (Php 500,000,000.00) for the operation and 
administration of the National Development Company (NDC) shall be 
chargeable against funds for the purpose and other sources recommended by 
the Department of Budget and Management (DBM). Thereafter, appropriations 
for the shall be included in the budget proposals under the Department of trade 
and Industry (DTI). 
 
The Department of Budget and Management (DBM) shall rationalize the existing 
organizational structure and staffing pattern of the in accordance with the 
provisions of this Act and relevant compensation and position classification laws, 
rules and regulations. 
Thereafter, the amount needed for the continued implementation of the 
modernization program, shall be included in the annual General Appropriations 
Act (GAA). 


SECTION 
3. 
National 
Development 
Company 
(NDC) 
MODERNIZATION FUND – There is hereby created the (NDC) Modernization 
Fund to be used exclusively for the (NDC) Modernization Program. 
The (PPPI) Modernization Fund shall be administered by the Secretary of the DTI 
in accordance with existing government budgeting, accounting and auditing 
rules and regulations. 
SECTION 
4. 
PROGRESS REPORT – The Secretary of DTI shall 
prepare an annual report on the status of the implementation of the (NDC) 
Modernization Programs which shall be submitted, to the Office of the President 
and to the Chairpersons of the Committee of Trade and Industry of the Senate 
and the House of Representatives. 
SECTION 
5. 
PERIOD OF IMPLEMENTATION – The modernization 
program under this Act shall be implemented for an initial period of two (2) 
years:  
Provided, that payments for multi-year contract obligations incurred 
under this Act may extend beyond this period:  
Provided, further, That the National Development Company (NDC) shall 
continue to develop, modernize and constantly update its operational capabilities 
to keep pace with best global practices. 
SECTION 
6. 
POWERS 
AND 
FUNCTIONS. – 
The 
National 
Development Company (NDC) shall continue to exercise and uphold the 
following powers and functions; but not limited to: 
NDC is mandated to pursue commercial, industrial, agricultural or mining 
ventures in order to give the necessary impetus to national economic 
development. NDC, may on its own, or in joint venture with the private sector, 
undertake vital projects when necessary or when the private sector is not willing 


or able to undertake such projects due to high risks or to lack of 
funds/resources. 
Executive Order No. 83 
(Strengthening the Enforcement of the Agri-Agra Law and Launching of 
the NDC “AA” Bonds for Rural Development) – Authorized NDC to undertake the 
issuance of NDC Agri-Agra Bonds in the total amount of P50B for the 
development of the agriculture and agrarian sectors. 
Executive Order No. 530 
(Authorizing the NDC to Issue Bonds under Executive Order 83, Series of 
1998 for the pump-priming activities and other projects of the government) – The 
EO strengthens NDC’s authority to issue bonds under EO 83 Series of 1998, and 
expanded the utilization of the bond proceeds to include the economic pump-
priming activities/projects of the government-owned and controlled corporations 
(GOCCs) and any other projects designed for economic growth and poverty 
alleviation. 
Executive Order No. 824 
Authorizing the National Development Company (NDC) to issue Bonds for 
Infrastructure Projects 
Executive Order No. 824-A 
Amending Executive Order No. 824 authorizing the National Development 
Company to Issue Bonds for Infrastructure Projects to include projects for 
Rehabilitation and Reconstruction of Government Infrastructure Facilities 
damaged or destroyed by Typhoons “Ondoy” and “Pepeng“. 
SECTION 
7. 
INCREASE 
OF 
PERSONNEL. – 
The 
National 
Development Company (NDC) shall maintain the sufficient staffing pattern. 


Hence, it is authorized to increase its manpower to meet such required and may 
continue to increase personnel per percentage rate increase of committed 
mandates annually or as the need arises. 
SECTION 
8. 
TRANSITORY 
PROVISION – 
Existing 
industries, 
businesses and offices affected by the implementation of this Act shall be given 
six (6) months transitory period from the effectivity of the IRR or such other 
period as may be determined, to comply with the requirements of this Act. 
SECTION 
9. 
IMPLEMENTING RULES AND REGULATIONS. – The 
departments and agencies charged with carrying out the provisions of this Act 
shall, within sixty (60) days after the effectivity of this Act, formulate the 
necessary rules and regulations for its effective implementation. 
SECTION 
10. 
REPEALING CLAUSE. – All laws, decrees, executive 
orders, rules and regulations, or parts thereof inconsistent with the provisions 
of this Act are hereby repealed or modified accordingly. 
SECTION 
11. 
SEPARABILITY CLAUSE. – If, for any reason, any 
section or provision of this Act is held unconstitutional or invalid, the other 
sections or provisions hereof shall not be affected thereby. 
SECTION 
12. 
EFFECTIVITY CLAUSE. – This Act shall take effect 
after fifteen (15) days from its publication in the Official Gazette or in at least two 
(2) national newspapers of general circulation whichever comes earlier. 
Approved,