NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
EXPLANATORY NOTE 
This bill seeks to establish a Local Economic Road Development (LERD) Program 
under the Department of Public Works and Highways (DPWH). 
While the paved ratio for national roads under purview of DPWH is already 97% huge 
gaps exist among local economic roads which are within the purview of local government units 
(LGUs).  Based on available 2020 DPWH Philippine Road Network data, the paved ratio of 
local roads are as follows – 36% for provincial roads, 62% for city roads, 33% for municipal 
roads, and 7% for barangay roads.  Considering the enormous opportunity cost the economy 
incurs for not addressing the road gaps, this Bill seeks to pursue the implementation of a ‘Local 
Economic Road Development’ (LERD) Program under the DPWH.  Under the LERD Program, 
DPWH shall prioritize and fund the construction of ‘local economic roads’ – i.e., provincial, city, 
and municipal roads. With increased internal revenue allotment (IRA) under the Mandanas-
Garcia Ruling, LGUs can focus its resources of other important infrastructure projects needed 
by the communities like water, barangay road development – especially those leading to 
tourism sites and agricultural areas. 
The establishment and implementation of the LERD Program will ensure seamless 
connection of provincial, municipal, and city roads with the national highways that supports 
trade, tourism, and agricultural activities. Other economic benefits include: (a) reduced 
transport cost, travel time, and road accidents through the improvement of the road system; 
(b) enhanced supply chain, network development, economies of scale and broader multiplier
effect; and (c) fast-tracking of the economic recovery initiatives of the national government.
Pursuant to the Revised Administrative Code of 1987, it is the policy of the State to 
maintain an engineering and construction arm and continuously develop its technology for the 
purposes of ensuring the safety of all infrastructure facilities and securing for all public works 
and highways the highest efficiency and the most appropriate quality in construction through 
the Department of Public Works and Highways (DPWH). 
Hence, the approval of this bill is earnestly sought. 
RUFUS B. RODRIGUEZ 
10508
June 6, 2024
12:14 pm


NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
AN ACT 
ESTABLISHING THE LOCAL ECONOMIC ROAD DEVELOPMENT (LERD) PROGRAM 
UNDER THE DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS, AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. This Act shall be known as the “Local Economic Road Development (LERD) Act”. 
SEC. 2. Declaration of Policy. - The State recognizes the economic contributions of the 
provinces, cities, and municipalities in spurring regional and countryside development. 
Towards this end, the State shall provide the necessary funding for the establishment of 
infrastructure and roads for the development of all provinces, cities, and municipalies to 
achieve their prime mandate. 
SEC. 3. Local Economic Road Development Program. - The Department of Public Works 
and Highways (DPWH) shall establish a Local Economic Road Development (LERD) Program 
that shall undertake the construction of local road projects allocated directly to the identified 
provinces, cities, and municipalities in the country. 
Under the LERD Program, ‘local economic road’ development shall include provincial, 
city, and municipal roads. The funding for the construction of these local economic roads shall 
be included in the budget of DPWH corresponding to at least Php 175 billion per year for four 
(4) years upon the enactment of this Bill.
SEC. 4. Planning, Evaluation and Assessment. – The DPWH, in coordination with the 
provincial, city and municipal government units and the local development councils, shall 
identify the road gaps that will be included in the list of priority Local Economic Roads (LER) 
that will be included in the annual budget of DPWH.  For the LERD Program, DPWH shall 
utilize the institutional framework and the vetting process it adopted for the TRIP and ROLL-
IT convergence programs. 
SEC. 5. Implementation,Monitoring and Supervision. – The LERD Program shall 
implemented by DPWH. However, monitoring and supervision of the projects under the LERD 
program shall be undertaken jointly by the DPWH and concerned LGUs.  
SEC. 6. Implementing Rules and Regulations. – DPWH shall promulgate the necessary 
rules and regulations to implement the provisions of this Act.  
SEC. 7. Appropriations. – The Secretary of the Department of Public Works and Highways 
shall immediately include in the Department’s programs the implementation of the Act, the 
funding of which shall be included in the annual General Appropriations Act. 
SEC. 8.Effectivity. – This act shall take effect fifteen (15) days after its publication in the 
Official Gazette or in a newspaper of general circulation.  
Approved, 
10508