FOURTEENTH CONGRESS OF THE 
1 
REPUBLIC OF THE PHILIPPINES 
1 
Second Regular Session 
1 
8 
AUG -7 1’5 :(I8 
INTRODUCED BY HONORABLE MAR ROXAS 
EXPLANATORY NOTE 
Public markets are the primary trading centers for all cities and municipalities. 
However, most of the public markets in the c o ~ t r y  
are in a state of disrepair thus hampering 
their potential as hubs for efficient domestic retail trade. 
The enactment of this bill is intended to establish every public market as the primary 
foundation of Philippine trade and commerce. To ensure the achievement of this objective, 
the efforts for the development of each public market shall be hinged on the initiative of the 
local government units through its internal revenue allotment and counter-parted with more 
substantial support from the Departments of Trade and Industry, Agriculture and Finance. 
Specifically, this bill intends to set up a five-year plan to ensure an integrated 
approach to the development of public markets beginning 2008. This will be done through a 
menu of development modules consisting primarily of infrastructure improvements, micro- 
financing projects, institutional support programs and other support services for consumer 
protection. Prioritization of initiatives shall begin within each local government unit and 
coordinated under the leadership of the Department of Trade and Industry. 
The support of government financial institutions and agencies together with the 
Priority Development Assistance Fund of the Senators and Congressmen and the Social Fund 
of the President of the Republic of the Philippines are also encouraged in this bill. Incentives 
are also given to private persons who provide assistance in the implementation of this Act. 
It is hoped that after a period of five years there will be more public markets that will 
allow the efficient trading of goods for the benefit of the domestic economy. 
In view of the foregoing, approval of this bill is earnestly requested. 
I 


1 
2 
3 
4 
5 
6 
I 
8 
9 
10 
1 1  
12 
13 
14 
15 
16 
17 
FOURTEENTH CONGRESS OF THE 
1 
REPUBLIC OF THE PHILIPPINES 
) 
8 
AUG -7 ?5 :08 
Second Regular Session 
) 
INTRODUCED BY HONORABLE MAR ROXAS 
AN ACT 
INVOLVING 
INFRASTRUCTURE 
IMPROVEMENT, 
MICRO- 
FINANCING 
SUPPORT, INSTITUTIONAL ADVANCEMENT 
AND 
CONSUMER PROTECTION. 
TO PROVIDE FOR A FIVE-YEAR PUBLIC MARKETS PROGRAM 
Be it enocted by the Senate and House of Represenlatives ofthe Philippines in Congress 
assent bled 
I. INTRODUCTION 
Section 1. Title. - This Act shall be known as the “Public Markets Infrastructure 
Development, Micro-Financing Support and Related Skills Training Program Act of 2008.” 
Section 2. Declaration of Policy. - The State recognizes the vital role of public markets 
in providing an environment conducive to the sustained development of the national economy 
particularly its function as a trading and commercial post for the benefit of small and medium 
sized enterprises. In furtherance thereof, the State hereby advocates the formulation of a set of 
development modules for the optimum integration and consolidation of all malters related to Ilie 
establishment aiid improvement of public indrkets within the next five years. 
Section 3. Definition of Terms. - For purposes of this Act, the definitions of the 
following terms are: 
(a) “Public Market” refers to a place, building or structure or any kind owned and/or 
operated by a city or municipality designated as such by their respective Sanggunians 
aiid dedicated to the service of the public in general and where basic food items and 
other commodities are displayed and offered for sale. The term also includes market 
stalls, ticndm, buildings, roads, subways, waterways, drainage, parking spaces, and 
other appurtenances that are an integral part thereof. 
- 1 -  


1 
2 
3 
4 
5 
6 
7 
8 
9 
IO 
1 1  
12 
13 
14 
15 
ii 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
(b) “Deveiopnent Modules” refers to the whole package intended for the development of 
any public market which shall be comprised primarily of four aspects; namely, 
infrastructure improvement, extension of micro-financing services, institutional 
advancement and consumer protection. 
(c) “LGcr‘ refers to local government units that may either be the local governments of 
highly urbanized cities, provinces, cities, andor municipalities. 
(d) “L‘ounler-yarlil” refers to the process by which funding for the execution of any of 
the public market development modules is shared and sourced from various 
government entities and/or even with the assistance of non-governmental 
organizations. 
(e) “Enm7arking” refers to the automatic allocation of the proceeds of any revenues 
generated from the development of any public inarlcet for a specific purpose, which 
must be for the benefit of the operations of the said public market. 
Section 4. Criteria of Development Modules. - The development modules shall be 
nplemented based on the following minimum criteria: 
(a) On Infrastructure Improvements - This shall include at its minimum the following 
specific improvements on the infrastructure of any public market: 
(a, 1) Constructive Repairs comprised of infrastructure refurbishments, construction of 
comfort rooms, directional signs and drainage systems. 
(a.2) Waste Disposal comprised of garbage bins, regular sanitation treatments and 
waste disposal maintenance systems. 
(a.3) Ads Space comprised of the construction of advertisement spaces or billboards 
which shall be bid out by the local government unit to any supplier of goods 
traded in the public market; provided, that the lease payments from such shall be 
earmarked for the construction of more advertisement spaces or as payments for 
the regular sanitation of the public market. 
(b) On Micro-Financing Support - This shall include at its minimum the rollowing 
conditions on micro-financing: 
2- 


1 
2 
3 
4 
5 
6 
7 
8 
9 
I O  
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
21 
(b. 1) Unless otherwise prescribed by law, interest rates imposed for micro financing 
shall be based on prevailing market rates. 
(b.2) Collaterals shall not be required from any debtor who avails of a micro- 
financing package as provided under this Act of not more than Fifty 'Thousand 
Pesos (P50,OOO.OO). 
(b.3) Market Vendors Cooperatives shall be given priority to syndicate a part not 
exceeding eighty percent (80%) of the micro-financing package; provided, that 
it guarantees to pay the said loan as agreed upon and lends out the said Joan in 
smaller portions to its members only subject to the condition imposed by the 
prior paragraph. 
(b.4) Sources of hnds for micro-financing shall come from Government Financial 
Institutions. 
(c) On Institutional Advancement - This shall include at its minimum the educational 
and training programs on entrepreneurship, financial management. networking and 
such other subjects necessary for the enhancement of the skills of market vendors. 
(d) On Consumer Protection - This shall include at its minimum the following programs 
that will ensure consumer protection; namely, regular price monitoring, providing 
credible weighing scales, creating an awards system for market vendors in the public 
market, providing a responsive consumer desk where suggestions and complaints 
may be filed, among others. 
Section 5. Timetable of Development - Within the first two years ofthis Act, priority 
should be given to the development of at least one public market located within every highly 
urbanized city and capital city. In the latter three years of this Act, the priority shall be given lo 
the development of at least one public market located within any municipality wherein the 
concerned LGU provides a development study that complies with the requirements set by the 
coordinating government agencies. 
- 3 -  


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
1 1  
12 
13 
14 
15 
I6 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
11. DEVELOPMENT MODULES 
Section 6. 
Module of Public Markets Infrastructure Development, Financing 
Support and Training Program Module for Higlily Urbanized Cities. - In the development 
of public markets located in highly urbanized cities, the local government unit shall take the 
initiative in the adoption of the provisions of this Act. It shall be done by tlie appropriate 
approval of an ordinance issued by the City Council and duly certified by the City Mayor of the 
area where the public market is located. The development module shall comply with tlie 
following minimum requirements: 
(a) On Infrastructure Improvement - a minimum of at least Twelve Million Pesos 
(P12,000,000.00) 
must be set aside to fund infrastructure related projects for public 
markets located within highly urbanized cities. 
(b) On Micro-financing - a minimum of at least Thirty Million Pesos (P30,000,000.00) 
must be set aside to fund micro-financing related projects of small and medium sized 
enterprises based in public markets located within highly urbanized cities. 
(c) On Institutional Advancement - a minimum or at least One Million Pesos 
(P1,000,000.00) must be set aside to fund institutional development programs for 
public markets located within highly urbanized cities. 
(d) On Consumer Protection - a minimum of at least Five Hundred Thousand Pesos 
(PSOO,OO0.00) must be set aside to fund consumer protection programs for public 
marltets located within highly urbanized cities. 
Section 7. Module of Public Markets Infrastructure Development, Financing 
Support and Training Program Module for Cities. - In the development of public markets 
located in capital cities, the local government unit shall tale the initiative in the adoption of the 
provisions of this Act, It shall be done by the appropriate approval of an ordinance issued by the 
City Council and duly certified by the City Mayor of the area where the public market is located. 
The development module shall comply with the following minimum requirements: 
(a) On Infrastructure Improvement - a minimum of at least Five Million Pesos 
(P5,000,000.00) 
must be set aside to fund infrastructure related projects for public 
markets located within provincial cities. 
- 4 -  


1 
2 
3 
4 
5 
6 
I 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
21 
28 
(b) On Micro-financing - a minimum of at least Fifteen Million Pesos (PI S,000,0@@.00) 
must be set aside to fund micro-financing related projects of small and medium sized 
enterprises based in public markets located within provincial cities. 
(c) On Institutional Advancement - a minimum of at least Five Hundred Thousand Pesos 
(PSOO,000.00) must be set aside to fund institutional development programs for 
public markets located within provincial cities. 
(d) On Consumer Protection - a minimum of at least Three Hundred Thousand Pesos 
(P300,000.00) 
inusl be set aside to fund consuiner protection programs for public 
markets located within provincial cities. 
Section 8. Module of Public Markets Infrastructure Development, Financing 
Support and Training Program Module for Municipalities. - In the development of public 
inarltets located in municipalities, the local government unit shall take the initiative in the 
adoption of the provisions of this Act. It shall be done by the appropriate approval of an 
ordinalice issued by the Municipal Council and duly certified by the Municipal Mayor of the area 
where the public market is located. The development module shall comply with the following 
minimum requirements: 
(a) On Infrastructure Improvement - a minimum of at least Three Million Pesos 
(P3,000,000.00) must be set aside to fund infrastructure related projects for public 
markets located within provincial municipalities. 
(b) On Micro-financing - a minimum of at least Seven Million Pesos (P7,000,@00.00) 
must be set aside to fund micro-financing related projects of small and medium sized 
enterprises based in public markets located within provincial municipalities. 
(c) On Institiitional Advancement - a minimum of at least Three Hundred Thousand 
Pesos (P300,000.00) must be set aside to fund institutional development progrins 
for public markets located within provincial municipalities. 
(d) On Coiisumer Protection - a minimum of at least Two Hundred Thousand Pesos 
(P200,000.00) 
must be set aside to fund consumer protection programs for public 
markets located within provincial municipalities. 
- 5 -  


10 
1 1  
12 
13 
14 
1s 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
21 
28 
29 
111. PARTICIPANTS 
Section 9. Role of Local Government Units. - All local governiiient units of cities and 
municipalities must adopt and choose at least one public market in its area of responsibility as 
the pioneer public market for development based on the provisions of this Act. Each local 
government unit must prepare a comprehensive feasibility study for the development of the 
public market it has chosen to beiiefit under the provisions of this Act. Each local government 
unit must fimd through its internal revenue allotment at least thirty percent (30%) of the total 
funding cost related to public market infrastructure improvements, institutional advancement and 
coiisumer prolection. 
'The provincial government must choose as priority projects at least one public market 
within its capiLal city and at least another one within any of the municipalities within its 
,jurisdiction. It must likewise fund through its internal revenue allotment at least thirty percent 
(30%) of the total fiinding cost related to public market infrastructure improvements, iiistitutioual 
advancement and consumer protection. 
Section 10. Role of Government Financial Institutions. - All government financial 
iiistitutions shall set aside funding for micro-financing operations related to the purposes of this 
Act. Each goveriimeiit financial institution must fund at least twenty one (21) micro-financing 
projeck for the benefit of public markets identified under this Act; provided, that this shall be 
distributed evenly at seven (7) public markets each for Luzon, Visayas and Mindaiiao, 
respectively. The participating government linaiicial institutions shall include the Development 
Bank of the Philippines (DBP), Land Bank of the Philippines (LBP) and other government 
financial institutions. 
Section 11. Primary Coordinating Government Agencies. - The Department of Trade 
and Industry shall be the lead agency which will ensure the implementation of this Act. The 
Departments of Agriculture, Finance and Public Works and Highways and the Commission on 
Audit shall also assist in the evaluation and coordination of all public market improvements. 
Section 12. Role of Public Market Vendors Cooperatives. - Only duly registered 
market vendors cooperatives shall be recognized for purposes of this Act. 
Subject to the 
supervision of the primary coordinating government agencies, public market vendors' 
- 6 -  


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
I t  
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
cooperatives shall be given the first priority in availing of the micro-financing services and 
institutional development programs provided herein. 
However, such services shall never 
exclusively benefit public. market vendors’ cooperatives. 
Section 13. Public Consultation. - Prior to the final approval of any development of any 
public market under this Act, the lead and other coordinating government agencies must hold 
public consultations with all interested parties at the city or municipality where the said public 
market is located. 
The Regional Head of the Department of Trade and Industry or his duly 
designated representative shall chair and convene the consultations with the public. A notice 
informing such shall be posted in a conspicuous place in the city or municipal hall for a period of 
~ w o  
(2) consecutive weeks prior to the date of the hearing. 
IV. PROJECT IMPLEMENTATION 
Section 14. Technical Assistance and Resource Mobilization Coordinating Council 
on Public Milrltcts Development. - To facilitate the implementation of this Act, a technical 
assistance and resource mobilization coordinating council shall be formed to support, promote, 
and encourage the LGUs in the development of any public market based on the provisions of this 
Act. The following shall be the members of the committee: 
The Secretary of the Department of Trade and Industry or his duly authorized 
representative who must have the rank of undersecretary, as Chairman; 
The Secretary of the Department or Agriculture or his duly authorized 
representative who must have the rank of undersecretary, as Vice-chairman; 
The Secretary of Finance or his duly authorized representative who must have the 
rank of undersecretary, as member; 
The Secretary of Public Works and Highways or his duly authorized 
representative who must have the rank of undersecretary, as member; 
The Secretary of the Department of Interior and Local Government or his duly 
authorized representative who must have the rank of undersecretary and, as may 
be necessary and upon proper invitation, the President, or his representative, of 
national LGU officers organizations. 
- 7 -  


I 
2 
3 
4 
5 
6 
I 
8 
9 
10 
1 1  
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
(0 
The President of the Development Bank of the Philippines or his duly authorized 
representative, as member; and 
The President of the Land Bank of the Philippines or his duly authorized 
representative, as member. 
(g) 
The committee shall have the €allowing functions: 
Provide technical assistance and resource mobilization to local government units 
qualified to undertake the establishment, maintenance, and development of public 
markets in accordance with this Act; 
Coordinate and facilitate the procurement of micro-financing operations and the 
hiding of at least seventy percent (70%) of the total funding cost related to 
public market infrastructure improvements, institutional advancement and 
consumer protection in accordance with this Act; 
Screen and determine local government units qualified to undertake public market 
development through the compliance of the requirements provided under Section 
9 of this Act; and 
Monitor, evaluate, and submit annual reports to the President of the Philippines, 
the President of the Senate and the Speaker of the Mouse of Representatives, an 
annual accoinplishment report on projects covered in this Section, which shall 
include the total amount of micro-financing released as of the end of the calendar 
year, local government units granted micro-financing and the amount thereof, and 
a list and description of accomplished and pending public market development 
projects. 
Section IS. Engineering and Administrative Overhead Expenses. - Appropriations 
for projects authorized in this Act shall be used solely for project implementation which shall 
include direct engineering, consulting and/or administrative overhead expenditures incidental 
thereto, including but not limited to salaries of employees who may be hired for the duration of 
the project, office supplies and similar operational costs. These engineering and administrative 
overhead expenditures shall be reflected in the program of work for the project concerned and 
- 8 -  


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
I 1  
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
shall not exceed four percent (4%) of the amount actually released for the project; Provided, that 
the said percentage shall be reduced as the total project cost increases. 
The program of work shall include, among others, estimates of the work items, quantities 
and costs, and the schedule of project activities and disbursements. 
Section 16. Program of Work. ~ The development of any public market must begin with 
the initiative of the local government unit through its endorsement of a feasibility study for 
public consultation. After the completion of the said public consultation, a copy of the feasibility 
study shall be submitted to the Technical Assistance and Resource Mobilization Coordinating 
c'ouucil for technical endorsement. Therealter, the bidding out of the project shall be done before 
the concerned local government unit where the public market is located, in accordance with the 
harmonized procedures on procurement under Republic Act 9 184 or the Governmeut 
Procurement Re€orm Act. Once these are done, the actual implementation shall begin with the 
introduction of infrastructure iinprovements and followed by the implementation, as deemed 
necessary, of the micro financing project, the institutional development program and the 
consumer protection project. 
Section 17. Public Bidding. - Once the development plan of any public market is 
cleared for implementation, all projects covered under this Act shall be implemented by contract 
awarded after competitive public bidding open to all qualified bidders and shall be awarded to 
the bidder who submits the lowest evaluated bid that is most advantageous to the government 
based on existing laws and regulations. A notice of the schedule o l  the bidding must be 
published for three (3) consecutive weelts in a conspicuous place within the city or inunicipal 
hall where the public market is located. 
Section 18. Negotiated Contracts. - No project in this Act shall be implemented by 
negotiated contract except in any of the following cases: (a) when there is an emergency arising 
fro111 natural calamities or where immediate actions is necessary to comply with government 
commitnients; (b) when there is failure to award a contract after competitive public bidding for a 
valid cause; (c) upon the termination or rescission of contract; (d) when the project is to be 
implemented in areas with critical peace and order problems as certified by the Department of 
- 9 -  


I 
2 
3 
4 
5 
6 
7 
8 
9 
10 
1 1  
12 
13 
14 
15 
16 
17 
18 
IC) 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
National Defense; or (e) as expressly authorized by the President of the Philippines when 
national interest so requires. 
The authority to negotiate and approve contracts under this section shall be obtained by 
them kom the Secretary of the Department of Trade and Industry. 
Section 19. Publication and Posting o f  Public Markets Development Contracts. - 
All contracts for public market development projects shall be published three times on three 
separate days once a week for three consecutive weelts in a newspaper with a general circulation 
at tlie region where the said public market is located. In addition thereto, a copy thereof shall be 
posted in a public place in the province, city or municipality where the project will be 
implemented. 
Such publication shall contain the subject matter of the contract, including the persons 
authorized by the government to give consent in its behalf; the type of materials used; the 
contract time; the bidders, if public bidding is undertaken before granting the contract; and other 
terms ofthe contract. 
For purposes of this Act, tlie local government unit concerned shall allow interested 
parties to inquire into the particular contract. Such inquiry shall be made in writing during 
regular office hours and the same shall be for a legitimate purpose stated therein. The copies of 
the documents, papers and records pertinent to the public markets development contract that is 
the subject of inquiry shall be made available at the expense of the interested parties. 
V. SOURCES OF FUNDS AND INCENTIVES 
Section 20. Sources of Funding. - The development of any public market under the 
provisions of this Act shall be funded through the counter parting of funds from various 
government offices, entities or agencies; provided, that each local goverument unit must fund 
through its internal reveiiue allotment at least thirty percent (30%) of the total funding cost 
related to public market infrastructure improvements, institutional advancement and consumer 
procection 
The Department of Agriculture shall provide counter part funds sourced from 
appropriations for post harvest facilities as provided under R.A. No. 8435, otherwise ltnown as 
- 10- 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
I 1  
12 
13 
14 
1.5 
16 
17 
18 
19 
20 
21 
22 
23 
24 
2s 
26 
27 
28 
the Agriculture and Fisheries Modernization Act of 1997, as amended, as well as from R.A. No. 
8 178, otherwise known as the Agricultural Competitiveness Enhancement Fund as amended by 
R.A. No. 9496. At least twenty (20) public markets every year beginning from the approval of 
this Act must be provided with the counter part funds by the Department of Agriculture. 
Any government agency or instrumentality, including government owned and controlled 
corporations and/or the offices of any Senator and/or Congressman through their Priority 
Development Assistance Fund and/or the Social Fund of the President of the Republic of the 
Philippines, may also provide the counter part funds to finance any aspect of this project. 
Only government financial institutions are required to fund all micro-financing projects 
for the benefit of public marltets. Subject to reasonable terms and conditions, nothing, however, 
prohibits private financial institutions from providing all or part of the funds needed to support 
the micro-financing projects as provided in this Act. 
All government agencies and/or offices that have committed to support the development 
of any public market shall expressly state such on a Memorandum of Agreement that shall be 
executed per criteria. 
Section 21. Incentives for Private Support. - Any person may donate funds, 
equipment, materials or services for the use and benefit of any stage of the development 
modules. Such donations shall be done through a Memorandum of Agreement (MOA) between 
the LGU and the donor. The MOA shall expressly state the market value of the donated funds, 
materials or services. The value of the donation shall be automatically exempt from all national 
internal revenue taxes including customs duties and other importation charges, if applicable. 
Subject to the issuance of the appropriate revenue regulations by the Bureau of Internal Revenue, 
the value of the donation shall also be deductible as an expense in the determination of the 
taxable income of any donor. 
Section 22. Valuation of Private Support. - Unless such donations are capable of 
pecuniary estimations, these contributions shall be based on the market value of the said goods 
that shall be stated on a Memorandum or Agreement to be executed between the donor and the 
local government unit where the concerned public market is located. 
- 11 - 


4 
8 
9 
IO 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
VI. REPORTORIAL AND OVERSIGHT REQUIREMENTS 
Section 23. Reports. - The Secretary of the Department of Trade and Industry shall 
submit to the President of the Philippines, the President of the Senate and the Speaker of the 
House of Representatives, an annual accomplishment report on projects covered in this Act, 
which shall include the appropriations released as of the end of the calendar year, the extent of 
the worlts accomplished, further worlts to be done, and any recommendations for additional 
appropriations or charges thereof. A detailed break report also as to the sources of counter-part 
fwds utilized per public inarltet project as implemented in this Act shall liltewise be provided. 
Section 24. Implementing Rules and Regulations. - The Department of Trade and 
Industry in consultation with the Technical Assistance and Resource Mobilization Coordinating 
Council and the LGUs, shall prepare such rules and regulations for the proper and erfective 
impleinentation of this Act, within sixty (60) days from the date of publication of this Act. The 
Department of Trade and Industry shall publish once a week for two (2) consecutive weeks in 
two newspapers of' general circulation the rules and regulations promulgated pursuant to this 
provision. 
Section 25. Separability Clause. - Any portion or provisions of this Act that may be 
declared unconstitutional or invalid shall not have the effect of nullifying other portions and 
provisions hereof as long as such remaining portion or provision can still subsist and be given 
ecfeect in their entirety. 
Section 26. Repealing Clause. - All laws, decrees, executive orders, proclamations and 
administrative regulations, or parts thereof inconsistent herewith are hereby repealed or modified 
accordingly. 
Section 27. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) national papers of general circulation or in the Official Gazette. 
Approved, 
- 1 2 -