Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
HouseBillNo.    8613
Introduced by Representative Gabriel H. Bordado, Jr.
EXPIANATORY NOTE
Naga  City  in  Camarines  Sur saw a  rapid  rise  in  economic development  and
growth  in the  1990s. Soon,  it transformed  itself into a thriving  hub of commerce and
industry,  drawing  investors,   laborers,   businessmen,   professionals,  and  people  in
search of success into the city. And while the influx brought about a lively increase in
economic  activity,  it  also  widened  the  gap  between  Naga  City  and  its  neighboring
municipalities in terms of income, quality of service, and distribution Of resources. This
obvious  disparity  not  only  adversely  impacted  the  nearby  municipalities  but  also
strained Naga City's limited resources and space.
The   growing   inequality   between   the   city   of   Naga   and   the   surrounding
municipalities,  among  other pressing  concerns,  spurred  the  then-Naga  City  mayor,
Jesse  M.  Robredo,  and the other mayors of the adjacent municipalities to  convene
and  discuss  a  systematic,  effective,  and  equitable  solution.  Towards  this  end,  the
Metro Naga Development council was created and mandated by Executive Order no.
102 on June 18,1993.
The   Metropolitan   Naga   Development   Council   is   a   partnership   of   local
government units, working together with the national government, created to formulate
and   enact   projects   primarily  aimed   towards   the   long-term   development  of  the
municipalities of Bombon, Bula. Calabanga, Canaman, Camaligan, Gainza, Magarao,
Milaor,  Minalabac,  Pamplona,  Pasacao,  Pili,  Ocampo,  San  Fernando and the City of
Naga  in  the  province  of  Camarines  Sur.  Since  its  establishment,  the  vision  of  a
prosperous   Metropolitan   Naga   grounded   on   the   complementation   of  functions,
resources, and development began to emerge and concretize. The Metropolitan Naga
Development  Council  has  been  an  effective  conduit  in  the  delivery  of certain  basic
services  among  its  component  LGUs.  However,  the  uniqueness  of these  different
LGUs  and  the  numerous  challenges  endemic  to  each  of  them   have  made  the
realization of this vision a huge and difficult undertaking.
Taking these challenges into consideration, this bill seeks to institutionalize and
strengthen  the  functions  and  objectives  of  the   Metropolitan   Naga  Development
Council  through  the  creation  of  the  Metro  Naga  Development  Authority  (MNDA).
Without   undermining   local   autonomy,   the   MNDA  will   accelerate   the   Grafting   of


solutions to the longstanding  problems plaguing the area  in order to work towards a
more effective and equitable economic development within Metropolitan Naga.
In view of the foregoing, the passage of this measure is earnestly sought./
1____.__     __
GABRIEL
3rd District,
BORDADO, JR
AMARINES SUR


Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
House Bill No.  8 3 1 3
Introduced by Representative Gabriel H. Bordado, Jr.
AN   ACT   CREATING   THE   METROPOLITAN   NAGA   DEVELOPMENT
AUTHORITY,  DEFINING  ITS  POWERS  AND  FUNCTIONS,  AND  PROVIDING
FUNDS THEREFOR
Be  it enacted  by the Senate and the  House Of Representatives of the
Philippines in Congress assembled:
SECTION 1.  I/1/e. -This Act shall be known as the "Metropolitan Naga Development
Authority Act.t'
SEC. 2. Dec/arati.on of Po/I.cy. - lt is hereby declared the policy of the State that all
local government units shall enjoy genuine and meaningful local autonomy to enable
them  to attain their fullest development as self-reliant communities  and  make them
more effective partners in the attainment of national goals.
The   Naga   City   in   Camarines   Sur   saw   a   rapid   increase   in   economic
development  and  growth.  And  while this  had  an  unprecedented  positive  impact  on
Naga City's economy, it also widened the gap between Naga City and its neighboring
municipalities in terms of income, quality of service, and the distribution of resources,
Pursuant to the State's policy,  the Metro Naga  Development Authority,  which
covers   the   city   of   Naga   and   the   municipalities   of   Bombon,   Bula,   Calabanga,
Camaligan,  Canaman,  Gainza,  Libmanan,  Magarao,  Milaor,  Minalabac,  Ocampo,
Pamplona,  San  Fernando,  and  Siruma  in  the  province  of Camarines  Sur,  and  San
Pascual in the province of Masbate,  is hereby created and constituted into a special
development and administrative area subject to the direct supervision of the Board of
Directors.
SEC.  3.  Creation  of  the  Nletropolitan   Naga   Development  Authority.  -  The
Metropolitan Naga Development Authority, hereinafter referred to as the MNDA, shall
administer  the  affairs  of  Metropolitan  Naga  and  member  LGUs.  The  MNDA  shall
perform planning, monitoring and coordinative functions, and, in the process, exercise
regulatory and  supervisory authority over the  delivery of metro-wide services within
Metro   Naga,   without  diminution   of  the  autonomy  of  the   local  government  units
concerning purely local matters.


SIC. 4. Jurisdiction  of the Metropolitan  Naga  Development Authority. - The
jurisdiction  of the  MNDA covers the city of Naga  and the  municipalities of Bombon,
Bula,    Calabanga,    Camaligan,    Canaman,    Gainza,    Libmanan,    Magarao,    Milaor,
Minalabac,  Ocampo,  Pamplona,  Pasacao,  Pili,  San  Fernando,  and  Siruma  in  the
province of Camarines Sur, and San Pascual in the province of Masbate.
SEC. 5. Scope of Metropolitan Naga Development Authority Services. -Metro-
wide services under the jurisdiction of the MNDA are those services which have metro-
wide impact and transcend local political boundaries or entail huge expenditures such
that  it  would  not  be  viable  for  said  services  to  be  provided  by  the  individual  local
government  units  (LGUs)  comprising  the  Metropolitan  Naga.  These  services  shall
include:
(a)  Development  planning.  which  includes  preparing  medium  and  long- term
development   plans;   the   development,    evaluation   and    packaging   of   projects;
investments promotion  and  programming;  and  coordination and  monitoring of plans,
program and project implementation;
(b)   Transport   and   traffic   management,   which   includes   the   formulation,
coordination,   and   monitoring   of   policies,   standards,   programs,   and   projects   to
rationalize   the   existing   transport   operations,    infrastructure   requirements,    and
promotion Of safe and convenient movement of persons and goods;
(c)  Solid  waste  disposal  and  management,  which  include  formulation  and
implementation of policies, standards, programs and projects for proper and sanitary
waste  disposal.  It shall  likewise  include the  establishment and  operation  of sanitary
landfill  and  related  facilities  and  the  implementation  of  other  alternative  programs
intended to reduce, reuse, and recycle solid waste;
(d)  Flood  control  and  sewerage  management,  which  include  the  formulation
and  implementation  of policies,  standards,  programs  and  projects for an  integrated
flood control] drainage and sewerage system;
(e)  Urban  renewal,  zoning,  land  use  planning  and  shelter  services,  which
include the formulation, adoption and implementation of policies, standards, rules and
regulations,  programs  and  projects to  rationalize and  optimize  urban  and  rural  land
use  and  provide  direction  to  urban  growth  and  expansion,  the  rehabilitation  and
development  of  slum  and  blighted  areas,  the  development  of  shelter  and  housing
facilities, and the provision of necessary social services thereof;
(f)  Agricultural   development  which   includes  the  formulation,   adoption   and
implementation of policies, standards, rules and regulations] programs and projects to
ensure food security and promote the well-being of agricultural producers, farmers and
workers;


(g)  Health  and  sanitation,  urban/rural  protection  and  pollution  control  which
include   the   formulation   and   implementation   of   policies,   rules   and   regulations,
standards,  programs and  projects for the promotion and  safeguarding of the health
and  sanitation  of the  area  and for the  enhancement of ecological  balance  and  the
prevention, control and abatement Of environmental pollution;
(h) Public safety, which includes the formulation and implementation of policies,
programs   and    procedures   operations,    in   coordination   with   national    agencies
concerned, to achieve said end, especially consumer protection and preparedness for
preventive  or  rescue  operations  during  times  of  calamities  and  disasters  such  as
conflagrations, earthquakes, flood and tidal waves, and mobilization of resources and
the implementation of contingency plans for the rehabilitation and relief activities; and
(i) Such other services which the  MNDA,  in  consultation with the  Metro Naga
constituents, may deem necessary and proper in promoting their welfare.
SEC. 6.  The Board of Di.rectors. - The governing  board and  policy-making body of
the  MNDA shall  be  the  MNDA  Board  of  Directors.  The  affairs  and  business  of the
MNDA shall be directed  and its properties managed  and  preserved  by the Board of
Directors, hereinafter referred to as "Board".
i.           Composition:
a. The mayors of the member-LGUs, as ex-off/.c/.o members;
b.   The Executive Director;
c.   Five       (5)      duly      accredited       non-government      organization
representatives,  with  existing  social  development  programs  being
implemented in Metropolitan Naga, whose manner of selection shall
be  in  conformity  with  NEDA  Board  Resolution  No.  6,  s.  1990,  as
officio members `
d.   Ten (10) representatives from duly organized sectoral associations,
such as, but not limited to, farmers, fishermen, businessmen, youth,
women,  and others,  as members, whose manner of selection shall
be  subsequently  provided   in  an  implementing  guideline  for  the
selection of said private sector representatives that will be drafted
and    promulgated   by   an    ad   hoe   committee   constituting   the
Metropolitan Naga Development Council; provided that said ad hoc
committee shall be composed, at the least, of the member mayors.
The   Chairperson   and   members   of  the   Board]   except   ex  offi.c/.o
members,  are  entitled  to  allowance  and  per  d/.ems  in  accordance  with
existing policies, rules and regulations on the matter.


ii.
Quorum and Voting
The Chairperson of the Board who shall have a term of three (3) years
shall be elected by the Board from among themselves. The members of the
Board  shall  have  one  (1)  vote  each.  A  majority  of  the  members  shall
constitute a quorum. A decision shall, as far as practicable, be reached by
consensus. If no consensus is reached, a decision shall be arrived at upon
a vote of the majority of all members of the Board constituting the quorum.
iii.         Functions of the Metropolitan Naga Development Board. The Board, as
the policy-making body of the MNDA, shall exercise the following functions:
a.        Formulate policies, develop programs, and promulgate rules and
regulations to carry out the powers and functions of the MNDA;
b.        Approve  each  year a  budget to  cover the operations  of MNDA
based upon the;
C.
i.     Income  from  the   MNDA's   investments  and   assets   in
member-LGUs;
ii.   Programs, projects, and activities to be implemented; and
iii.  Paid-up capital and additional  paid-up subscriptions.
Fix    compensations,    emoluments,    and    allowances    of    the
Executive Director and other officers and personnel of the MNDA;
d.        Approve appointment of all officers and employees of the MNDA
in accordance with the civil service law] rules and regulations; and
e.        Perform such  other functions as may be necessary to carry out
the purposes of this Act or as may be provided in other sections
of this Act.
SEC.  7.  Duties  and  Funcfl.ons  of the  Chal.xperson.  -  The  Chairperson,  shall
exercise the following functions:
a.   Call and preside at the meetings of the Board and shall see to it that
policies,    programs,    and   rules   and   regulations   developed   and
promulgated by it are properly implemented;
b.   Present for approval by the Board;
i.   The annual budget of the MNDA;


ii.  The   rules   and   regulations   needed   to   carry   out   the
provisions of this Act and the amendment thereto;
iii. Other matters which he deems necessary or proper in the
effective implementation of this Act;
iv.The  annual  report  on  the  activities  and  finances  of  the
MNDA;  and
c.   Appoint,   subject  to  civil   service   laws,   rules   and   regulations,   all
employees of the MNDA, who shall enjoy the security of tenure and
may be  removed  only for valid  cause  in  accordance with  law. The
chairperson  shall  have the  power to discipline  subordinate officials
and employees Of the MNDA subject to the existing provisions of law.
He     is     hereby     authorized     to     engage     the     services     of
experts/consultants either on full-time or part-time basis, as may be
required  in the performance of his functions and duties as  may be
determined by him;
d.   Represent the MNDA, upon approval by the Board, in all contractual
obligations entered into by it; and
e.   Perform such other functions which the Board may deem necessary
effectively carry out the provisions of this Act.
SEC. 8.  Ongani.zari.ona/ Slmcrure. -The Board shall determine the organizational
structure, staffing pattern, and salary scale of the officers and employees of the MNDA.
The  Board  may  reorganize the same  and  create or abolish divisions,  offices,  units,
branches or agencies therein, as it may deem necessary.
The  city/municipal  planning  and  development  coordinators/officers  of  each
member-LGU  shall  be incorporated  in  MNDA's planning  board or office that shall be
thereafter created.  They shall  provide technical  support,  perform  ancillary functions,
and   assist  in  the  conceptualization,   generation,   implementation,   monitoring,   and
evaluation of programs, projects and activities consistent with and pursuant to MNDA's
scope  of services.  These  personnel  shall  be  entitled  to  allowances,  per d/.ems and
other compensation  in accordance with existing  laws,  policies,  rules and  regulations
regarding the matter.
SEC. 9.  Tfle Execufi.ye Di.rector. -The MNDA shall have an Executive Director who
shall  be  recommended  by the  members  of the  Board.  He  shall  have  the  following
powers, duties, and responsibilities:
(a)     To execute and administerpolicies and measures approved bythe Board;
(b)      To draft the programs, projects and activities of the MNDA in consultation
with    its member-LGUs;


(c)     To  coordinate the  projects  and  activities  of the  MNDA with  its  member-
LGUs and government agencies;
(d)    To submit to the Board, through the Chairperson,  policies and measures
which  in  his judgement,  are  necessary to carry out the  purposes of this
Act;
(e)    To prepare the budget of the MNDA for approval by the Board;
(f)      To   coordinate  joint   undertakings  with   non-government  organizations,
people`s organizations, and other private sector groups;
(g)    To represent the MNDA in all its dealings with other offices, agencies, and
instrumentalities of the government and with other persons and entities,
public or private;
(h)    Subject   to   the   approval   of  the   Board,   to   determine   the   rates   of
compensation,    allowances,    honoraria.    and    such    other    additional
compensation which the MNDA is hereby authorized to grant its officers,
technical    staff,    and    consultants    including    the    necessary    detailed
personnel;
(i)    To direct and  supervise the  operations  and  internal  administration  of the
MNDA.  He  may  delegate  certain  administrative  responsibilities  to  other
officers of the MNDA subject to the rules and regulations of the Board;
ti)    To prepare an annual report on the accomplishments of the MNDA at the
close of each calendar year for submission to and evaluation by the Board;
and
(k)   To  perform  such  other  duties  and  functions  as  may  be  directed  by  the
Chairperson of the Board.
SIC.  10.  Powers,  Duties  and  Functions  of  the  Metro  Naga  Development
AufhorJ-fy. -The MNDA shall exercise the following functions:
(a)  Approve  metro-wide  plans,  programs  and  projects  and  issue  rules  and
regulations and resolutions deemed necessary by the Board to carry out the
purposes of this Act.
(b)  Promulgate  rules  and  regulations and  set policies  and standard to  metro-
wide  application  governing  the  delivery  of  basic  services,  prescribe  and


collect  service  and  regulatory  fees,   and  impose  and  collect  fines  and
penalties.
(c)  Formulate, coordinate and regulate the implementation of medium and long-
term plans and programs for the delivery of metro-wide services,  land use
and   physical   development   within   Metropolitan   Naga,   consistent   with
national development objectives and priorities;
(d)  Prepare,   coordinate   and   regulate  the   implementation   of  medium-term
programs for metro-wide services which shall indicate sources and uses of
funds  for  priority  programs   and   projects,   and  which   shall   include  the
packaging of projects and presentation to funding institutions;
(e)  Undertake  and  manage on  its own  metro-wide  programs  and  projects for
the delivery of specific services under its jurisdiction, subject to the approval
of  the  Board.   For  this   purpose,   MNDA  can  create  appropriate  project
management offices;
(f)   Coordinate  and  monitor the  implementation  of such  plans,  programs  and
projects  in  Metropolitan  Naga;  identify  bottlenecks  and  adopt solutions  to
problems of implementation;
(g)  Encourage  investments  in the area  by extending the  necessary planning,
management]    and   technical   assistance   to   prospective   and   existing
investors;
(h)  Recommend to the proper agencies the nature and kind of assistance and
level  of priority to  be  accorded  to  agricultural,  industrial,  commercial  and
infrastructure projects, soliciting or requiring direct or indirect support from
or through the government or any of its instrumentalities;
(i)    Establish,   operate   and/or  contract  to   operate   such   agencies,   offices,
functional   units  and  instrumentalities  which   may  be  necessary  for  the
furtherance of this Act;
ti)   To sue and be sued; and
(k)  Perform  other  related  functions  required  to  achieve  the  objectives  of the
MNDA,  including the undertaking  of delivery of basic services to the  local
government  units,  when  deemed  necessary  subject to  prior coordination
with and consent of the local government unit concerned.
SEC.11. /nsfi.rufi.ona/ [fnkages of ffle MNDA. The MNDA shall]  in canying out its
functions, consult, coordinate and work closely with the LGUs, National Economic and
Development  Authority  (NEDA)  and  other  government  agencies  such  as,  but  not
limited to, the following: Department of Finance (DOF), Department of the Interior and


Local Government (DILG),  Department of Social Welfare and Development (DSWD),
Department of Education (DepEd),  Department of Science and Technology (DOST),
Department   of   Energy   (DOE),   Department   of   Foreign   Affairs   (DFA),   Technical
Education  and   Skills   Development  Authority   (TESDA),   Bureau   of  Fisheries  and
Aquatic Resources (BFAR), Commission on Higher Education (CHED), National Anti-
Poverty Commission  (NAPC),  Department of Transportation  (DOTR),  Department of
Information  and  Communications  Technology  (DICT),  Department  of  Public  Works
and  Highways  (DPWH),  Department of Tourism  (DOT),  Department of Budget  and
Management (DBM),  Department of Health  (DOH),  Department of Agriculture  (DA),
Department  of  Agrarian  Reform  (DAR),   Department  of  Trade  and  Industry  (DTI),
Department  of  Labor  and  Employment  (DOLE),   Department  of  Environment  and
Natural Resources (DENR), Cooperative Development Authority (CDA), the Philippine
National  Police (PNP), which shall  provide the necessary assistance asked for;  and
accredited  people's  organizations  (POs),  nongovernmental  organizations  (NGOs),
and  the  private  sector  operating  in  Metropolitan  Naga.    The  MNDA,  at  its  sound
discretion, may call upon the attendance of the government agencies concerned in its
Board meetings.
The MNDA shall  have a  master plan that will serve as the framework for the
local development plans of the component LGUs.
The MNDA shall submit its development plans and investment programs to the
NEDA for integration into its development and public investment program.
The  implementation  of  the  MNDA's  plans,  programs,  and  projects  shall  be
undertaken by the member-LGUs, the concerned national government agencies, the
Pos,  NGOs,  the  private  sector and/or the  MNDA  itself where  appropriate.  For this
purpose,  the  MNDA may enter into contracts,  memoranda of agreement and  other
cooperative arrangements with these bodies for the delivery of the required services
within Metropolitan Naga.
The MNDA shall, in coordination with the NEDA and the Department of Finance
(DOE),   interface  with  foreign   assistance  agencies  for  the   purpose   of  obtaining
financing support, grants and donations in support of its programs and projects.
SIC.12. Souroes of Funds and Operating Budget of the MNDA. -
1.   To carry out the purposes of this Act, the amount of FIFTY MILLION  PESOS
(P50,000,000.00)   is   hereby   authorized   to   be   appropriated   for   the   initial
operation  of the  MNDA. Thereafter,  the annual expenditures including  capital
outlays of the MNDA shall be provided in the General Appropriations Act.
2.   The MNDA is likewise empowered to levy fines, and impose fees and charges
for various services rendered.
3.   The MNDA member-LGUs shall continue to remit annually two percent (2%) of
their  Economic  Development  Fund  to  the  Metropolitan  Naga  Common  Fund
which forms  part of the sources of funds of MNDA.  In  case of failure to remit


the said fixed contribution, the DBM shall cause the automatic disbursement of
the  same  to  the  MNDA  chargeable  against  the  lntemal  Revenue  Altotment
(IRA) of the city or municipality concerned, the provisions of Section 286 of RA
ZJQQ to the contrary notwithstanding.
SEC. 13. Fore;gn Loans. -The MNDA is hereby authorized to contract from time to
time  loans,  oredits,  and  indebtedness  repayable  in  foreign  currencies  from  foreign
governments  or any  international financial  institution,  or fund  sources for use  in  the
development of Metropolitan Naga.
The  President  of  the  Philippines,   by  himself,  or  through  the  Secretary  of
Finance,  is hereby further authorieed to guarantee,  on behalf of the  Republic of the
Philippines, the payment of any loan herein authorized, as well as the performance of
any  other obligations  undertaken  by the  MNDA,  pursuant to  loan  agreements  with
foreign governments or international financial institutions.
In  negotiation and  contracting  of any lean,  credit,  or indebtedness  under the
section,  the  provisions  of  Section  4  of  RA  4860  and  Section  5  of  RA  6142,  as
amended, shall apply.
The  loans,  credits,  and  indebtedness  contracted  under this  subsection  and
payment of principal,  interest, and other charges thereon, as well as the importation
of  machinery,   equipment,   materials   and   supplies   by  the   MNDA,   paid   from   the
proceeds of any foreign loan, credit or indebtedness incurred under this Act, shall be
exempt from all taxes, fees, imposts, other charges, and restrictions imposed by the
Republic of the Philippines, or any Of its agencies and political subdivisions.
SEC. 14.  Transflory Provisi.ons. -To prevent disruption in the delivery of the basic
services pending the full implementation of the MNDA's organizational structure and
stafflng  pattern,  all  officials  and  employees  of the  interim  Metro  Naga  Development
Council (MNDC) shall continue to exercise their duties and functions and receive their
salaries and  allowances  until they have  been  given  notice Of change of duties and
functions,  and  of  being  transferred  to  another  office  or  position.  They  shall  enjoy
special preference in case MNDA adds personnel.
Upon   the   effectivity   of  this   Act,   MNDC's   existing   Executive   Committee7
consisting  of the  Metro  Naga  mayors and  MNDC's  Exeoutive  Officer,  shall  convene
and  shall  serve  as  ad hoe  commfrfee that will  promulgate,  in  consultation  with  the
NEDA,   an   implementing   rules   and   guidelines   in   the   selection   Of  private   sector
representatives in the MNDA. When the necessary nonngovemment and private sector
representatives, who shall form part of the board of directors, had been identified and
finally  adjudged  as  qualified  by  the  ad  hoc  commifee,   in  consultation  with  and
approved by the NEDA] provided that failure on the part of the NEDA to act within 60
days after such recommendation by the ad hoe commifee shall be deemed approval
thereof,  an election for the chairperson  of the board, with  a term  of three (3) years,


shall be called for and whoever is elected as such shall immediately carry out his/her
functions as mandated by this Act.
All  assets  and  properties  presently in  use  or under the  accountability of the
interim MNDC and all its obligations, indebtedness, or liabilities shall be transferred to
and assumed by the MNDA created under this Act, subject to the conditions that may
be established  by the  Department of Budget and  Management and  Commission on
Audit.
SEC.  15.  Separabi./J.fy C/ause.  -lf any  provision  or  part  hereof,  is  held  invalid  or
unconstitutional, the remainder of the law or the provision not otherwise affected shall
remain valid and subsisting.
SEC.16. Rapes//.ng C/ause. All laws, decrees, executive orders, proclamations, and
administrative regulations or parts thereof inconsistent herewith are hereby repealed
or modified accordingly.
SEC.17.  Erfecfjvi.fy C/arse.  -This  Act shall take  effect fifteen  (15)  days  after its
publication   in   the   Official   Gazette   or   in   a   newspaper   of   general   circulation.
Approved,