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OfFiCE OF Th" S[tA'lETAAY I 
FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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SENATE 
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S.B. No. 2008 
Introduced by Senator EDGARDO J. ANGARA 
EXPLANATORY NOTE 
The Ifugao Rice Terraces, printed on the face of the one thousand Philippine peso 
bill, is known worldwide as the 8th Wonder of the Old World and is a prime tourist 
destination. The marvel of the Ifugao Rice Terraces is in the manner the people 
transformed the harsh wilderness of the Cordillera highlands into productive farming 
systems. The terraces are the living testament to the Ifugaos' mastery 0 f watershed 
ecology, terrace engineering, and water distribution. 
Ifugao Rice Terraces significantly forms part of the Rice Terraces of the Philippine 
Cordillera, whose terraces and culture were inscribed in the World Heritage list in 
December 1995 under the category "living cultural landscape" having both natural and 
cultural characteristics of outstanding universal significance. The inscription includes five 
terrace clusters: Batad and Bangaan in the municipality of Banaue, Happao in Hungduan, 
Nagacadan in Kiangan and Central Mayoyao Cluster in Mayoyao. The first four priority 
sites inscribed in the WHL are located within the Ifugao Province. 
The tenn 'cultural landscape' embraces a diversity of manifestations of the 
interaction between humankind and its natural environment. Cultural landscapes often 
reflect specific techniques of sustainable land-use, considering the characteristics and 
limits of the natural environment they are established in, and a specific spiritual relation to 
nature. " 
The importance of protecting cultural landscapes is explained by the WHL 
Convention as follows: "the continued existence of traditional forms of land-use supports 
biological diversity in many regions of the world. The protection of traditional cultural 
landscapes is therefore helpful in maintaining biological diversity. " 
However, the condition of the terraces has continuously deteriorated. In 2001, it 
was placed in the World Heritage List in Danger. The Ifugao Rice Terraces and Cultural 
Heritage Office (IRTCHO) provided several factors causing the deterioration, namely: 1) 
loss of bio-diversity due to bio-piracy, unregulated hunting and indiscriminate use of new 
technology and introduction of new species; 2) reduced farm labor due to increasing 
outmigration of farm labor force; 3) erosion and siltation due to destruction of watershed; 
4) Land use conversion and abandonment of rice terraces due to damaged rice terraces; 5) 
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insufficient irrigation water supply, limited income from rice farming, shift in values and 
priorities of the people, unregulated land use and physical planning. 
This bill is a first step towards an overall terraces management and preservation 
strategy with the end in view of establishing a permanent, efficient, and effective body to 
coordinate and lead efforts to safeguard, restore, and protect the Terraces of the entire 
Cordillera Region. It shall initially formulate a Ten-Year Cordillera Terraces Master Plan. 
The terraces of the Cordilleras are truly a rare engineering achievement and the 
Philippines is racing, nay scrambling against time to save them from deterioration. 
I, therefore, strongly urge my colleagues in the August hall to rally for the 
immediate passage of this hill. 
LvI/A-
EDGARDO J. ANGARA 
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OI'~ of. TH': "HJI,f,.lAR'Y 
FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
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10 Jl. 26 P1:l' 
First Regular Session 
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SENATE 
S.B. No. 2008 
Introduced by Senator EDGARDO J. ANGARA 
AN ACT 
CREATING THE CORDILLERA TERRACES AUTHORITY, 
DEFINING ITS POWERS AND FUNCTIONS, PROVIDING 
FUNDS THEREFOR AND FOR OTHER PURPOSES 
Be it enacted in the Senate and House of Representatives of the Philippines in the 
Congress assembled: 
SECTION 1. Short Title. This Act shall be known as the "Cordillera Terraces 
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Authority of 201 0." 
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SEC. 2. Declaration of Polic),. As signatory to the World Heritage Convention on 
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the Protection of the World Cultural and Natural Heritage on 28 August 1985, it is hereby 
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declared the policy of the State to be committed to the identification, protection, 
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conservation, and safeguarding of heritage within the Philippine territory. 
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To this end, the State shall undertake the identification, protection, conservation, 
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and safeguarding of cultural and natural heritage and agreed to do all they can, using their 
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resources to do so as well as 1) adopt a general policy, which aims to give the cultural and 
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natural heritage a function in the W'e of the community and to integrate the protection of 
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that heritage into comprehensive planning programs; 2) undertake appropriate legal, 
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scientific, technical, administrative and financial measures necessary for the identification, 
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protection, conservation, presentation and rehabilitation of heritage properties; and 3) 
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refrain from deliberate measures, which might damage, directly or indirectly, the cultural 
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and natural heritage. 
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Pursuant to this policy, the Cordillera Autonomous Region, embracing the 
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provi I1ces of Ifugao, Mt. Province, Abra, Benguet, Apayao, Kalinga, and Benguet is hereby 
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constituted into a Cordillera Terraces Authoritv subject to the direct supervision of the 
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President of (he Philippines. 
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SEC. 3 .. Creation oft/Ie Cordillera Rice Terraces Authority. In order to carry out 
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the foregoing policy, there is hereby created a body known as the "Cordillera Terraces 
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A uli1orily" referred to as the "CT A" which shall be under the Office of the President of the 
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Philippines. 
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SEC. 4. Principal Office and Term. - The principal office of the CTA shall be in 
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Banaue, Ifugao. It may however establish such branches, subsidiaries, offices or agencies 
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as it may deem necessary to attain th~ objectives of this Act. 
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The CTA shall have a term of fifty (50) years from the effectivity hereof renewable for 
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the same period unless otherwise provided for by law. 
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SEC. 5. Functiolts of the Cordillera Terraces Authority. The CTA shall: 
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a. Formulate a Ten-Year (lO-year) Cordillera Terraces Master Plan within six (6) 
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months upon its creation for the preservation and restoration of the Terraces in the 
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Region based on the following guidelines and with the following major 
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components: 
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1. Restoration and Preservation of the area's terraces, protection and maintenance 
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of ecological balance and enhancement of its environment; 
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2. Rehabilitation of the age-old irrigation systems and the construction of new 
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ones; 
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3. Massive reforestation, preservation and protection of the forest areas which are 
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the sources ofthe waters irrigating the terraces; 
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4. Rational land-use and zoning plan considering that the Cordillera Terraces are 
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national treasures and tourist destinations of Filipinos from all parts as well as 
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foreign visitors; 
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5. Prohibition/control of unusually tall and unstable and obstructive structures 
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obscuring public view of the natural beauty of the surroundings in accordance 
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with the zoning ordinances of the local government units concerned and subject 
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to the pertinent laws, rules and regulations on the matter; 
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6. Provision for improved and adequate service infrastructures such as power, 
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water, communications, and waste disposal facilities; 
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7. Enhancement of agricultural productivity and local livelihood opportunities as 
an alternative to industrial employment; and 
8. Provision for a viable peace and order plan. 
Such Plans shall include a Comprehensive Investment Program Capability 
Bui Iding Program for the affected local government units as well as the coordinated 
establishment of the following in the subject area: 
I. 
11. 
111. 
IV. 
v. 
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a nature center; 
a cultural center; 
a people's center; 
a conference and meeti~g center; 
a flea market destination (vegetable/livelihood); and 
tourist destinations. 
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b. Assist the local government units concerned in undertaking various planning 
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activities to develop short-temi and long-term strategies for tourism development, 
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environmental 
protection, 
attracting 
business 
investment, 
socio-cultural 
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development, and institutional building, in line with the developmental guidelines 
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stated above and to integrate all national and local plans relative to the restoration 
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and preservation of the subject area; 
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c. Adopt a process of maximum consultation with the local government units 
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concerned, non-governmental organizations, and other stockholders' groups in the 
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localities to ensure that the residents' needs, concerns and ideas are considered in 
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the formulation and implementation of the said plans, development guidelines, and 
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municipal ordinances; 
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d. Study and review policy measures that shall promote and address the concerns on 
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environmental protection, poverty alleviation, local autonomy, eco-tourism, 
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cultural preservation and development, and sustainable development of the subject 
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area; 
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e. Recommend (I) legislation to conserve the natural resources and promote the 
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accelerated socio-economic development of the area; (ii) zoning ordinances to the 
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Sangguniang Bayan concerned in consonance with the Plans approved by the 
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President, subject to existing laws, rules and regulations; (iii) the establishment of 
fire limits or zones, particularly in populous centers; and (iv) the regulation of the 
constmction, repair or modification of buildings within said fire limits or zones in 
accordance with the provisions of the Fire Code; and 
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f'. 
Recommend to the Sangguniang Bayan concerned such other ordinances and 
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measures as may be necessary to attain the objectives of the Plans; and 
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g. Perform such other functions as are necessary to achieve the objectives of the CT A. 
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SEC. 6. Powers of the Cordillera Terraces Authority. The eTA shall exercise the 
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[ollowing powers: 
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a. To adopt, promulgate, and enforce such m1es and regulations as are necessary to 
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execute the powers, duties and functions vested in it by this Act as well as such 
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regulations as may be necessary for the proper use by private parties of any or all of 
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the Authority's properties and to impose or collect fees or tolls for their use; 
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b. To improve, develop, and provide livelihood opportunities as an alternate 
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employment for the constituents of the Cordillera Autonomous Region; 
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c. To engage or invest on, or enter into joint venture with Filipino and foreign 
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investors in such projects wit~in the Cordillera Region as it may deem proper and 
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necessary or contributory to the achievement of any or all of its purposes and 
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functions; 
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d. To exercise the right of eminent domain; 
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c. To call upon any particular government agency, office or bureau for assistance in 
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the discharge of, and fornl committees to facilitate the performance of its functions 
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and responsibilities; and 
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f. 
Perform such other functions as are necessary to achieve the objectives of the CTA. 
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SEC. 7. Cordillera Terraces Council. The governmg board and policymaking 
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body of the CTA shall be the Cordillera Terraces Council. The Cordillera Terraces Council 
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shall be composed of the following, to wit: 
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Secretary of Tourism 
Chairman 
Secretary of Agriculture 
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Vice-chairman 
Secretary of Environment and Natural Resources 
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Member 
Secretary of Public Works and Highways 
- Member 
Secretary of Health 
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Member 
Chairman of the National Commission on Culture and Arts 
Member 
Chairman of the National Commission for indigenous people 
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Member 
Governor of Abra 
Member 
Governor of Apayao 
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Member 
Governor of Benguet 
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Member 
Governor ofIfugao 
Member 
Governor of Kalinga 
Member 
Governor ofM!. Province 
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Member 
Chairman of the Cordillera Regional Assembly 
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Member 
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Except for the heads of local government units, the other members of the Board 
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may appoint their representatives thereto from their respective Undersecretaries only. 
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The members of the Board shall have one [I] vote each. A majority of the members 
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shall constitute a quorum. A decision shall, as far as practical, be reached by consensus. If 
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no consensus is reached, a decision shall be upon a vote of the majority of all members of 
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the Board. 
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The Board shaH: 
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I. Fornmlate policies, develop programs and promulgate rules and regulations to 
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carry out the purposes of its creation, powers and functions of the CT A; 
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2. Approve each year a budget to cover the operations of the Authority; 
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3. Fix the compensation, emoluments, and allowances of the Administrator and 
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other officers and personnel of the CTA; and 
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4. Perform such other functions as may be necessary to carry out the purposes of 
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this Act. 
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SEC. 8. Duties and Functions of the Chairman of the Board. The Chairman 
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shalI: 
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a. Call and preside at the meetings of the Board and see to it that the policies, 
pro grams and rules and regulations developed and promulgated by it are 
implemented properly; and 
b. Present for approval by the Board: 
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Annual budget of the Authority; 
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Rules and regulations needed to carry out the provisions of this Act and 
the amendments thereto; 
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Other matters which he deems necessary or proper for the effective 
implementation of this Act; and 
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Annual report on the activities and finances of the CTA, copies of which 
upon approval by the Board shaH be furnished to the Office of the 
President of the Philippines and both Houses of Congress. 
SEC. 9. Organizational Structure. The Board shaH determine the organizational 
structure, staffing pattern, and pay scales subject to the Salary Standardization Law, of the 
CT A and the officers and employees thereof. The Board may reorganize the same and 
create or abolish divisions, offices, Ullits, branches or agencies therein, as the exigencies of 
the affairs of the CT A may require. 
SEC. 10. Administrator. Upon recommendation of the Board from at least three (3) 
quaJi fied recommendees of the provincial governors, the President of the Philippines shall 
appoint an Administrator who shall be the Chief Executive Officer of the CTA and ex-
officio Vice Chairman of the Board with the rank of Presidential Assistant. The' term of 
office of the Administrator shall be at the pleasure of the President of the Philippines but 
co-terminus with the temire of the appointing authority. The Administrator shall establish 
his official residence in Baguio and shall not, during his tenure of office, engage in any 
business, profession, or caHing other than those connected with the performance of his 
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official duties as Administrator ofthe CT A. 
The Administrator shall have the following powers, duties and responsibilities: 
a. 
To submit to the Board, through the Chairman, policies and measures which, in 
his judgment, are necessary to carry out the purposes and provisions of this Act; 
b. Prepare the budget of the CTA for approval of the Board; 
c. Execute and administer the policies and measures approved by the Board: 
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d. To direct, implement, undertake and supervise the implementations, and 
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executions of the projects and programs of the CTA towards the restoration and 
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preservation of the Ifugao terraces, protection of its ecological balance and 
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enhancement of its environment as premier tourist destination and heritage as 
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well as the operations and internal administration ofthe CTA; 
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e. Appoint all employees of the Authority except the heads of departments and 
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divisions whose appointments shall be made by the Board upon his 
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recommendation; and to remove, dismiss or otherwise discipline for cause, such 
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employees in accordance with the standard guidelines for recruitment, 
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employment, and discipline of personnel which shall be fonnulated by the 
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Board; 
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To represent the CT A in all dealings with other offices, agencies: and 
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instrumentalities of the Government and with all persons and entitles, public or 
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private; 
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g. Subject to the approval o'f the Board to detennine the rates of compensation, 
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allowances, honoraria, and such other additional compensation which the CT A 
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is hereby authorized to grant its officers, technical staff, and consultants 
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including the necessary detailed personnel; and 
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h. To exercise such other powers as may be granted to him by the Board. 
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SEC. 11. Foreign Loans. The CTA is hereby authorized to contract loans, credit 
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and indebtedness, in any convertible foreign currency or capital goods from time to time 
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fr0111 foreign governments or any international financial institutions or fund sources. 
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SEC. 12. Auditor. The Chainnan of the Commission on Audit (CGA) shall be the 
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ex-officio Auditor in charge of the audit of the CTA. He shall appoint a representative who 
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shall be the auditor thereof. The Chairman of the Commission on Audit (CGA) shall 
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likewise, upon recommendation of the Auditor of the CTA, appoint or remove personnel of 
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the said auditing office in accordance with the CTA's merit system. The operating 
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expenses of this office and the salaries and traveling expenses of the officials and 
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employees thereof shall be fixed by the Board and paid by the CTA. Such representative 
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shall render a semestral report to the Chairman of the Commission on Audit and the Board, 
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which shall submit to the President of the Philippines and the Congress an annual report 
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covering the financial condition and operations ofthe CTA. 
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SEC. 13. Donations and Gifts. The CTA shall have the right to receive donations 
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or bequests which shall be utilized only for the implementation of the programs and 
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projects of the CTA: Provided, That programs and projects of the CTA financed by foreign 
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grants or financial assistance with national security implications shall be approved first by 
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the Department of National Defense who shall act upon the request within thirty (30) days 
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from receipt of the request otherwise the request is deemed approved. 
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Any such donations or bequest shall be exempt from the payment of gift taxes and 
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the full amount of such donations or bequests shall be deductible from the gross income of 
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the donor for the year during which the same is made. 
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SEC. 14. Applicability of the Corporation Law. The provisions of the Corporation 
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Law, as amended, insofar as they consistent with this Act shall be applicable to the 
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opcrations of the CTA. 
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SEC. 15. Transitory Provisions. All its budgetary appropriations, finances, 
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properties, records, rights, equipments, choses in action, and other assets as well as 
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I iabil ities and accountabilities are hereby transferred to the CT A. The existing qualified 
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personnel of the Ifugao Rice Terraces and Cultural Heritage Office (IRTCHO) covered by 
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the Civil Service Law and pertinent rules and regulations shall be absorbed by the CT A. 
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The CT A shall approve and prescribe its new staffing pattern and prescribe the 
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authorized positions created thereunder. The same shall be filled with regular appointments 
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in accordance with Civil Service Laws, rules and regulations. Those incumbents whose 
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positions are not included therein or who are not re-appointed shall be deemed separated 
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from the service or retired under existing law and regulations. 
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Furthermore, upon approval of this Act, the present head of the IRTCHO shall 
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discharge the functions of the Admi'nistrator until the President of the Philippines shall 
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appoint him and/or a replacement is appointed thereto. 
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SEC. 16. Sources of Funds and the Operating Budget of the CTA. To carry out 
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the purposes of this Act, 
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a. The amount of One Hundred Million Pesos (Php 100,000,000.00) is hereby 
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authorized to be appropriated for the initial operation of the CTA. Thereafter, 
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the annual expenditures including capital outlays of the CT A shall be provided 
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in the Annual General Appropriations Act; 
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b, The CT A is likewise empowered to levy fines, impose fees and charges for 
various services rendered; and 
c, Two percent (2%) of the total annual gross revenue of the preceding year, net of 
the internal revenue allotment, of each province mentioned in Section _ 
hereof, shall accrue and be payable monthly to the CTA by each province, 
Upon failure to remit the said contribution, the DBM 
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SEC. 17. Repealing Clause. Executive Order No, 77 dated 4 March 1999 is hereby 
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repealed, All other laws, decrees, executive orders, rules and regulations, or parts thereof 
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inconsistent with or contrary to the provisions of this Act are hereby repealed or modified 
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accordingly, 
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SEC. 18. Separability Clause. If any part or provision of this Act is held 
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unconstitutional or invalid, other parts or provisions thereof which are not affected shall 
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continue to be in full force and effect. 
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SEC. 19. Effectivity. This Act shall take effect fifteen (15) days after its full and 
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complete publication in the Official Gazette or in at least two (2) newspapers of general 
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circulation, whichever comes first. 
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Approved, 
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