Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

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fa RECEIVED
E_ DATE August 12, 2025 £5)
Twentieth Congress
First Regular Session

HOUSE BILL NO. _3589

Introduced by Representatives LORDAN G. SUAN and BAMBI B.
EMANO

AN ACT
CREATING THE METROPOLITAN CAGAYAN DE ORO
DEVELOPMENT AUTHORITY, DEFINING ITS POWERS AND
FUNCTIONS, AND PROVIDING FUNDS THEREFOR

EXPLANATORY NOTE

This bill seeks to create the Metropolitan Cagayan de Oro Development

Authority, defining its powers and functions and providing funds therefor.

The Metropolitan Cagayan de Oro is a significant economic and cultural

hub in the Philippines, experiencing rapid growth and urbanization. However,
this growth also presents challenges such as inadequate infrastructure,
environmental degradation, and uncoordinated development. There is a pressing
need for a unified and coordinated effort to address these challenges and ensure
the long-term well-being of the residents in the region.

As envisioned, the Metropolitan Cagayan de Oro Development Authority

(MCDA) will provide oversight for services that significantly impact the entire
metropolitan area. These services encompass development planning, transport
management, solid waste disposal and management, flood control and sewerage
management, urban renewal, zoning, land use planning and shelter services,
health and sanitation, urban protection, pollution control, and public safety.

The MCDA will be tasked with formulating plans in line with the Northern

Mindanao Regional Development Plan and the Philippine Development Plan,
setting traffic, waste management, and public safety policies, preparing

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metropolitan-wide programs, monitoring the implementation of these programs,
and managing regulatory fees, among others.

The policy-making body of the MCDA will be the Metropolitan Cagayan
de Oro Development Council, composed of the Chairperson of the Regional
Development Council of Region X, the governors of the provinces of Misamis
Oriental and Bukidnon, the city mayors of Cagayan de Oro and El Salvador, and
the municipal mayors of the covered areas. This Council will have the power to
approve development plans, investment programs and projects, formulate
ordinances, resolutions, rules, and regulations, and recommend investment
programs and infrastructure projects.

This bill aims to promote sustainable and inclusive development in
Northern Mindanao through a unified approach that respects the autonomy of the
local government units (LGUs) while providing a framework for coordinated
development responsive to the region's rapid urbanization and interdependencies.
It recognizes the distinctive development challenges and opportunities of the
Metropolitan Cagayan de Oro region. It proposes a sustainable, inclusive, and
integrated governance structure. It will empower the MCDA to lead and
coordinate efforts towards sustainable and balanced development in the
Metropolitan Cagayan de Oro area, ensuring a better quality of life for its
residents, promoting economic growth, and preserving the region's natural and
cultural heritage.

In view of the foregoing, the immediate approval of this bill is earnestly
sought.

AN
15t District, Cagayan de Oro City



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Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

Twentieth Congress
First Regular Session

HOUSE BILL NO. _3589

Introduced by Representatives LORDAN G. SUAN and BAMBI B.
EMANO

AN ACT
CREATING THE METROPOLITAN CAGAYAN DE ORO
DEVELOPMENT AUTHORITY, DEFINING ITS POWERS AND
FUNCTIONS, AND PROVIDING FUNDS THEREFOR

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 “Metropolitan
Cagayan de Oro Development Authority Act.”

SEC. 2, Declaration of Policy. — It is the policy of the State to promote
sustainable and inclusive development in Northern Mindanao through unified and
coordinated effort among local government units (LGUs) and stakeholders in
achieving economic growth, environmental sustainability and improved quality
of life for the residents. Towards this end, the State shall support the
establishment of special development and administrative region that expands the
physical areas for planning and service areas for urban service delivery.

SEC. 3. Creation of the Metropolitan Cagayan de Oro Development
Authority. — There is hereby created a special body to be known as the
Metropolitan Cagayan de Oro Development Authority, hereinafter referred to as
“MCDA,” which shall be organized within thirty (30) days after the approval of
this Act, to coordinate and promote socioeconomic growth and sustainable

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development of Metropolitan Cagayan de Oro.

The MCDA shall execute the powers and functions herein vested which
shall, however, in no way diminish the autonomy of the LGUs of Metropolitan
Cagayan de Oro concerning purely local matters, within the framework and
subject to the mandate and limitations of the Constitution and the pertinent
provisions of Republic Act No. 7160, otherwise known as the “Local Government
Code of 1991.”

SEC. 4. Jurisdiction of the MCDA. - The MCDA shall exercise
jurisdiction over the cities of Cagayan de Oro and EI Salvador, and the
municipalities of Alubijid, Balingasag, Claveria, Gitagum, Initao, Jasaan,
Laguindingan, Libertad, Opol, Tagoloan and Villanueva in Misamis Oriental, and
the municipalities of Manolo Fortich, Baungon, Libona, Malitbog, Sumilao and
Talakag in Bukidnon, and such other cities and municipalities as may be created
by law within these LGUs.

SEC. 5. Scope of MCDA Services. — The MCDA shall deliver metro-
wide and across-boundaries services to the different LGUs in the entire
metropolitan area whose activities impact each other significantly and entail huge
expenditures that would not be viable if provided by the individual LGUs. These
services include:

a) Development planning, which includes preparing medium-term and
long-term development plans; developing, evaluating and packaging
of projects; investments programming; and coordinating and
monitoring plans, programs and project implementations;

b) Transport management, which includes formulating, coordinating,

and monitoring policies, standards, programs and projects to

rationalize the existing transport operations, infrastructure
requirements, and promotion of safe and convenient movement of
persons and goods; providing a mass transport system and instituting

a system to regulate road users; administering and implementing all

traffic enforcement operations, traffic engineering services and

traffic education programs, including instituting a single ticketing
system within the MCDA jurisdiction;

Solid waste disposal and management, which include formulating

and implementing policies, standards, programs and projects for

proper and sanitary waste disposal; establishing and operating a

sanitary land fill and related facilities, such as waste-to-energy

technologies; and implementing other alternative programs intended
to reduce, reuse and recycle solid waste;

d) Flood control and sewerage management, which include

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1 formulating and implementing policies, standards, programs and
2 projects for an integrated flood control, drainage and sewerage
3 system;

4 e) Urban renewal, zoning, land use planning and shelter services,
5 which include formulating, adopting, and implementing policies,
6 standards, rules and regulations, programs and projects to rationalize
7 and optimize urban land use and provide direction to urban growth
8 and expansion, rehabilitating and developing slums and blighted
9 areas, developing shelter and housing facilities and providing
10 necessary social services thereof;

u f) Health and sanitation, urban protection and pollution control, which
12 include formulating and implementing policies, rules and
13 regulations, standards, programs and projects for promoting and
14 safeguarding health and sanitation to enhance ecological balance and
15 prevent, control and abate environmental pollution; and

16 g) Public safety, which includes formulating and implementing
v7 programs, policies and procedures to achieve public safety,
18 especially preparedness for preventive or rescue operations during
19 times of calamity and disasters such as conflagration, earthquakes,
20 flood, and coordinating and mobilizing resources and implementing
24 contingency plans for the rehabilitation and relief operations in
22 coordination with national agencies concerned.

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24 SEC. 6. Functions of the MCDA. The MCDA shall exercise the
25 following functions:

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27 a) Formulate plans aligned to the Northern Mindanao Regional
28 Development Plan (NMRDP) 2023-2028, Philippine Development
29 Plan 2023-2028, and succeeding national and regional development
30 plans;

31 b) Set policies concerning traffic, waste management, and public safety
32 and security for Metropolitan Cagayan de Oro and coordinate,
33 regulate, and enforce the implementation of these programs and
34 projects with concerned national government agencies and LGUs;
35 c) Prepare and implement or manage metropolitan-wide programs and
36 projects for the delivery of specific services under its jurisdiction,
37 subject to the approval of the Metropolitan Cagayan de Oro
38 Development Council created under Section 7 of this Act;

39 d) Review and recommend to the Metropolitan Cagayan de Oro
40 Development Council policies regarding development permits for
41 residential, commercial, or industrial purposes and other major land
42 development that have metropolitan-wide impact on transportation

43 and traffic, proposed to be implemented by or in the LGUs within
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the Metropolitan Cagayan de Oro;
e) e) Monitor the implementation of metropolitan-wide programs and
projects and identify implementation issues and appropriate
solutions to address them;

f) Install and administer a single ticketing system, fix, impose and
collect fines and penalties for all kinds of violations of traffic rules
and regulations, whether moving or non-moving in nature, and
confiscate and suspend or revoke driver’s licenses in the
enforcement of such traffic laws and regulations within the MCDA
jurisdiction.

g) Prescribe and collect service and regulatory fees, and impose and
collect fines and penalties within the MCDA jurisdiction;

h) Fix the compensation of the officers and personnel of the MCDA
under the existing salary standardization law; and

i) Perform other functions, consistent with this Act, subject to approval
by the Metropolitan Cagayan de Oro Development Council.

‘))

SEC. 7. Metropolitan Cagayan de Oro Development Council. — The
governing board and the policy-making body of the MCDA is the Metropolitan
Cagayan de Oro Development Council, herein referred to as the “Council,”
composed of the Chairperson of the Regional Development Council (RDC) of
Region X, governors of the provinces of Misamis Oriental and Bukidnon, city
mayors of Cagayan de Oro and El Salvador, and the municipal mayors of
Alubijid, Balingasag, Claveria, Gitagum, Initao, Jasaan, Laguindingan, Libertad,
Opol, Tagoloan, Villanueva in Misamis Oriental, Manolo Fortich, Baungon,
Libona, Malitbog, Sumilao and Talakag in Bukidnon, who shall all serve in an ex
officio capacity. The chairperson of the Council shall be appointed by the
President of the Philippines from a selection of nominees submitted by the
Council and serve for a term of three (3) years.

The heads of the following Cagayan de Oro regional offices of national
government agencies shall attend all meetings of the Council as non-voting
members: National Economic and Development Authority (NEDA); Department
of Human Settlements and Urban Development (DHSUD); Department of Public
Works and Highways (DPWH); Department of the Interior and Local
Government (DILG); Department of Environment and Natural Resources
(DENR); Department of Health (DOH); Department of Information and
Communications Technology DICT); Department of Energy (DOE); Department
of Tourism (DOT); Department of Transportation (DOTr); Land Transportation
Office (LTO) and Philippine National Police (PNP).

The chairperson and members of the Council, except ex officio members,
are entitled to allowance and per diems in accordance with existing laws, rules
and regulations.


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SEC. 8. Functions of the Council. -The Council shall, as the policy-
making body of the MCDA, exercise the following functions:

a) Approve development plans, investment programs and projects after
consultation and coordination with the LGUs, RDC of Region X,
and other stakeholders operating in the Metropolitan Cagayan de
Oro area;

b) Formulate and issue ordinances, resolutions, rules and regulations
deemed necessary by the MCDA to carry out the purposes of this
Act;

c) Increase the rate of allowances and per diems of the members of the
Council to be effective during the term of the succeeding Council,
subject to pertinent laws, policies, rules and regulations;

d) Recommend investment programming for its plans and programs, as
well as supervise the implementation of plans and programs which
include the formulation and coordination of its related activities;
Coordinate and work closely with the DOTr and its attached
agencies on the grant of franchises to safe, reliable and environment-
friendly public utility vehicles within the MCDA jurisdiction;

f) Approve the annual budget of the MCDA for submission to the
Department of Budget and Management (DBM) and endorse the
annual and supplemental budgets of the MCDA; and

g) Perform such other acts and assume such other functions as may be
consistent and necessary to carry out the provisions of this Act.

@

SEC. 9. Effectivity of Ordinances and Resolutions. — An ordinance or
resolution passed by the Council, in the exercise of its rule-making power as
provided in Section 8 of this Act, shall be posted in a bulletin board at the entrance
of the MCDA building and in at least two (2) other conspicuous places in the
office of the MCDA within ten (10) days from its approval and shall take effect
fifteen (15) days after such posting.

Ordinance with penal sanctions shall be published in a newspaper of
general circulation within Metropolitan Cagayan de Oro and shall take effect
fifteen (15) days thereafter.

SEC. 10. Functions of the Chairperson. — The chairperson of the
Council shall exercise the following functions:

a) Appoint, subject to civil service laws, rules and regulations, all
subordinate officers and employees, who shall enjoy security of
tenure and may be removed only for cause in accordance with law;

b) Engage the services of experts or consultants either on full time or
part-time basis, as may be required in the performance of the
chairperson's functions and duties;

c) Execute the policies and measures approved by the Council and be

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responsible for the efficient and effective day-to-day management of
the operations of the MCDA;

d) Prepare the annual budget for the operations of the MCDA for the
submission to the Council;

) Submit for consideration of the Council such other duties and
measures as the chairperson may deem necessary to carry out the
purposes and provisions of this Act;

f) Prepare the staffing pattern and fix the number of subordinate
officials and employees of the MCDA in accordance with the civil
service laws, rules and regulations, and subject to the evaluation and
approval of the DBM;

g) Exercise the power to discipline subordinate officials and employees
under the provisions of existing laws and subject to the guidelines
and policies set by the Council;

h) Prepare an annual report on the accomplishments of the MCDA at
the close of each calendar year for submission to the Council and to
the President of the Philippines; and

i) Perform such other duties as may be assigned by the President of the
Philippines or by the Council.

SEC. 11. Other MCDA Officials. — The chairperson of the Council, as
head of the implementing arm of the MCDA, shall be assisted by a General
Manager, Assistant General Manager for Finance and Administration, Assistant
General Manager for Planning and Assistant General Manager for Operations, all
of whom shall be appointed by the President of the Philippines upon the
recommendation of majority of the Council, subject to civil service laws, rules
and regulations. These officials shall enjoy security of tenure and may be
removed only for cause in accordance with law.

The Assistant General Manager for Planning must have at least five (5)
years extensive experience in development and planning or must hold a Master’s
degree in urban planning or similar disciplines.

SEC. 12. Functions of the General Manager. — The general manager
shall exercise the following functions:

a) Assist the chairperson in the administration of the MCDA and
supervision of subordinate personnel;

b) Assist the chairperson in the supervision of the operation of the
various centers and units of the MCDA;

c) Assist the chairperson in the review of plans and programs for the
MCDA and for the cities and municipalities in the preparation of the
annual report of activities and accomplishments of the MCDA; and

d) Perform such other duties and functions as may be lawfully

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delegated or assigned by the chairperson from time to time.

SEC. 13. Institutional Linkages of the MCDA. - The MCDA shall, in
carrying out its functions, consult, coordinate and work closely with the LGUs,
RDC of Region X, and other national government agencies, people's
organizations, non-government organizations, and the private sector operating in
Metropolitan Cagayan de Oro. The MCDA shall adopt a master plan that shall
serve as the framework for the local development plans of the component LGUs
and aligned with the NMRDP.

The MCDA shall submit the Council's approved development plans and
investment programs to the RDC of Region X for integration in the plans,
programs and projects that shall be undertaken by the LGUs, concerned national
government agencies, people’s organizations, non-government organizations,
private sector and the MCDA itself where appropriate. For this purpose, the
MCDA may enter into contracts or memoranda of agreement with these bodies
for the delivery of the required services within Metropolitan Cagayan de Oro.

The MCDA shall, in coordination with the NEDA and Department of
Finance, interface with foreign assistance agencies for purposes of obtaining
financing support, grants and donations in support of its programs and projects.

SEC. 14, Metropolitan Cagayan de Oro Police District . — There is
hereby established a police body to be known as the Metropolitan Cagayan de
Oro Police District (MCPD). The MCPD shall be under the administrative control
and operational supervision of the National Police Commission and headed by a
Police Brigadier General. The MCPD shall assume and perform the following
functions:

a) Assume operational control over the local police offices in areas
within the jurisdiction of the MCDA;

b) Ensure that peace, order and safety within the MCDA are maintained
at all times;

c) Integrate law enforcement and police operations capabilities within
the MCDA and further promote efficiency in enforcing laws and
ordinances therein; and

d) Coordinate with the MCDA, Regional Police Office, LGUs and
other relevant agencies and recommend plans and programs to be
implemented within the MCDA.

SEC. 15. Sources of Funds. — The amount necessary for the operation of
the MCDA shall be included in the annual General Appropriations Act.

The operations of the MCDA shall likewise be supported through financial
contributions and technical assistance from member LGUs, national government
agencies and government-owned or controlled corporations (GOCCs) and the
private sector, and other local and international organizations in the form of

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grants, donations, contributions, payments, penalties, fees and charges.

In case of grants, in cash or in kind, from foreign governments or their
agencies and instrumentalities, or multilateral institutions or organizations,
acceptance thereof shail be subject to prior clearance and approval of the Council
and the President of the Philippines or the authorized representative, based on the
recommendation of the Secretary of Finance.

In case of donations, in cash or in kind, from foreign governments,
acceptance thereof shall require prior clearance and approval by the Council and
the President of the Philippines, or the authorized representative based on the
recommendation of the Secretary of Foreign Affairs.

The Council shall undertake continuing negotiations among the member
LGUs and GOCCs to commit annual financial contributions for the operations of
the MCDA.

SEC. 16. Implementing Rules and Regulations. — Within ninety (90)
days from the effectivity of this Act, the Chairperson shall, in consultation with
the Council, promulgate the necessary rules and regulations for the effective
implementation of this Act.

SEC. 17. Separability Clause. — If any provision of this Act is declared
unconstitutional or invalid, the remaining parts or provisions not affected shall
remain in full force and effect.

SEC. 18. Repealing Clause. — All laws, executive orders, issuances, rules
and regulations, or parts hereof inconsistent with the provisions of this Act are
repealed or modified accordingly.

SEC. 19. Effectivity. — This Act shall take effect fifteen (15) days
after its publication in the Official Gazette, a newspaper of general circulation, ot
a website provided for by law.

Approved,