Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _____ 
___________________________________________________________________ 
Introduced by Representative PABLO JOHN F. GARCIA     
___________________________________________________________________ 
EXPLANATORY NOTE 
The Constitution provides that “Science and technology are essential for 
national development and progress. The State shall give priority to research and 
development, invention, innovation, and their utilization [x x x].”1 It likewise mandates 
that “The State shall regulate the transfer and promote the adaptation of technology 
from all sources for the national benefit. It shall encourage the widest participation of 
private groups, local governments, and community-based organizations in the 
generation and utilization of science and technology.”2 
Data from the World Bank tell us that in 2019, around 50,975,9033 Filipinos 
belonged to the Philippines’ urban population (47.149%4 of the country’s total 
inhabitants). The country’s urban population has been steadily increasing over the past 
years.5 The  United Nations projects that, in 2050, the Philippine population will be 
around 148.3 million.6 By then, the UN figures, 68% of the world population will be 
living in urban areas.7 This means that in thirty years, about one hundred million 
Filipinos will be living in cities and other urban areas—almost double what we have 
today.  
1 Const. art. XIV, § 10. 
2 Const. art. XIV, § 12. 
3
World 
Bank, 
Urban 
population 
-
Philippines,
available 
at 
https://data.worldbank.org/indicator/SP.URB.TOTL?end=2019&locations=PH&start=1961. 
4 
World 
Bank, 
Urban 
population 
(% 
of 
total population) 
- 
Philippines, 
available 
at 
https://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS?end=2019&locations=PH&start=1961. 
5
See 
Macrotrends, 
Philippines 
Urban 
Population 
1960-2020, 
available 
at 
https://www.macrotrends.net/countries/PHL/philippines/urban-population. The annual percentage 
growth rate has been about 1.9% for the past few years. 
6 Alden Monzon, Business World Online, United Nations population report sees 169 million Filipinos by 
2100, available at https://www.bworldonline.com/content.php?section=Economy&title=United-Nations-
population-report-sees-169-million-Filipinos-by-2100&id=112636 (31 July 2015). 
7 Department of Economic and Social Affairs, United Nations, 68% of the world population projected to 
live 
in 
urban 
areas 
by 
2050, 
says 
UN, 
available 
at 
https://www.un.org/development/desa/en/news/population/2018-revision-of-world-urbanization-
prospects.html (16 May 2018). 
July 4, 2022
10:30 am
1024


 
We do not have to look too far into the future to see why this might be a problem. 
Even today, pollution, poor infrastructure access, low mobility, inadequate utilities, and 
health and safety concerns are just some of the issues faced by many Filipinos living 
in dense metropolitan areas. Things will not improve on their own down the line if 
business goes on as usual. As populations increase, land areas remain the same and 
it takes time for resources, social services, and infrastructure to catch up. Efforts must 
be undertaken at the earliest possible time to ensure a good quality of life for all 
Filipinos. 
 
This bill aims to employ the proper application of technology to address these 
concerns. It aims to create a developmental, standardization, and incentivization 
framework for local government units to spur the creation of Smart Cities nationwide—
while respecting the principle of local autonomy. “[T]he term “smart city” denotes an 
‘instrumented, interconnected and intelligent city.’ ‘Instrumented’ refers to the 
capability of capturing and integrating live real-world data through the use of sensors, 
meters, appliances, personal devices, and other similar sensors. ‘Interconnected’ 
means the integration of these data into a computing platform that allows the 
communication of such information among the various city services. ‘Intelligent’ refers 
to the inclusion of complex analytics, modeling, optimization, and visualization services 
to make better operational decisions [x x x].”8  
 
This measure establishes a Council for Smart Cities, which is the overall policy-
making and implementing body of the proposed Act. It is tasked to create an Action 
Plan, a Resource Guide, and other activities such as providing technical support and 
the development of a workforce to achieve its aims. 
 
The bill also defines standards and criteria which the Council shall aim to 
champion nationwide. These criteria shall also form the basis for an incentivization 
program called Smart Innovation and City Acceleration Program or SICAP. These 
dimensions and their descriptions, as well as their indicators, were taken from a well-
studied conceptual model of the IESE Business School.9  
 
 
8 Vito Albino et al., Journal of Urban Technology, Smart Cities: Definitions, Dimensions, Performance, 
and Initiatives, available at https://doi.org/10.1080/10630732.2014.942092 (2015) citing Harrison et al., 
Foundations for Smarter Cities, 54:4 IBM Journal of Research and Development 1-16 (2010). See also 
Table 1 of Albino et al.’s work for further definitions and characterizations of Smart Cities. 
9 IESE Business School, University of Navarra, IESE Cities in Motion Index, available at 
https://media.iese.edu/research/pdfs/ST-0471-E.pdf (2018). See also Organisation for Economic Co-
operation and Development, Smart Cities and Inclusive Growth, Building on the outcomes of the 1st 
OECD 
Roundtable 
on 
Smart 
Cities 
and 
Inclusive 
Growth 
37, 
available 
at 
http://www.oecd.org/cfe/cities/OECD_Policy_Paper_Smart_Cities_and_Inclusive_Growth.pdf (2020). 


Certain schools of thought in economics consider the overall state of technology 
as a factor of production aside from land, labor, and capital.10 This bill aims to put the 
focus on technological innovation in urban areas given that the other factors are 
inflexible if not invariable like land. It is hoped that the stimulation of Smart Cities and 
Municipalities, in combination with other social and governmental efforts, will make 
Filipino metropolitan centers livable, safe, clean and happy places to live in. 
 
In view of the foregoing, the urgent passage of this bill is earnestly sought.  
 
 
 
 
Rep. PABLO JOHN F. GARCIA 
3rd District, Province of Cebu 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10 See Michael Parkin & Gerardo Esquivel, Macroeconomía 160 (1999, 5th ed.). See generally Ifo 
Institute for Economic Research, Sakura Institute of Research, Factors of Production: Technology, A 
Comparative 
Analysis 
of 
Japanese 
and 
German 
Economic 
Success, 
available 
at 
https://doi.org/10.1007/978-4-431-65865-8_7 (1997). 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _____ 
___________________________________________________________________ 
Introduced by Representative PABLO JOHN F. GARCIA     
___________________________________________________________________ 
AN ACT 
ESTABLISHING A DEVELOPMENTAL, STANDARDIZATION, AND 
INCENTIVIZATION FRAMEWORK FOR THE ESTABLISHMENT OF SMART 
CITIES AND MUNICIPALITIES NATIONWIDE, APPROPRIATING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the House of Representatives and the Senate of the Congress of the 
Philippines in session assembled: 
CHAPTER I 
GENERAL PROVISIONS 
Section 1. 
Short Title. - This Act shall be known as the “Smart Cities and 
Municipalities Act”. 
Section 2. 
Declaration of Policy. - It is hereby declared the policy of the 
State to recognize science and technology as essential for national development and 
progress. Accordingly, the State shall give priority to research and development, 
invention, innovation, and their utilization to ultimately uplift the quality of Filipino life. 
The State shall also regulate the transfer and promote the adaptation of technology 
from all sources for the national benefit. Lastly, it is hereby declared the policy of the 
State to harmoniously employ reliable smart technologies to establish energy-efficient, 
clean, free-flowing, livable, and safe cities and municipalities nationwide while 
respecting local autonomy, data security, personal privacy, and a balanced and 
healthful ecology. 
Section 3. 
Definition of Terms. - For purposes of this Act, the following 
terms shall be defined as follows: 
(a)
Application means a software program created and implemented
by a government agency or instrumentality that can be run on a mobile phone, 
1024


tablet, laptop, desktop, or other similar device and is designed to provide or 
facilitate the acquisition of government information, services, or some other 
benefit relating to Smart City technologies and practices. An application may be 
agency-centric or citizen-centric. Agency-centric applications are intended for 
the internal use of a government agency or instrumentally to improve its 
efficiency and effectiveness. Citizen-centric applications are for the general 
public to enable real-time public engagement and service; 
 
(b) 
Big Data means large data sets that may be analyzed 
computationally to reveal patterns, trends, and associations, especially relating 
to human behavior and interactions; 
 
(c) 
Council refers to the Smart Cities Council as constituted in 
Section 4 of this Act; 
 
(d) 
Cybersecurity refers to the collection of tools, policies, risk 
management approaches, actions, training, best practices, assurance and 
technologies that can be used to protect digital environments and assets; 
 
(e) 
DENR means the Department of Environment and Natural 
Resources; 
 
(f) 
DHSUD means the Department of Human Settlements and Urban 
Development; 
 
(g) 
DICT means the Department of Information and Communications 
Technology; 
 
(h) 
DILG means the Department of Interior and Local Government; 
 
(i) 
DOE means the Department of Energy; 
 
(j) 
DOLE means the Department of Labor and Employment; 
 
(k) 
DOST means the Department of Science and Technology; 
 
(l) 
DOTr means the Department of Transportation; 
 
(m) 
Green Engineering is the design, commercialization, and use of 
processes and products in a way that reduces pollution, promotes sustainability, 
and minimizes risk to human health and the environment without sacrificing 
economic viability and efficiency. Green engineering embraces the concept that 
decisions to protect human health and the environment can have the greatest 


impact and cost-effectiveness when applied early, in the design and 
development phase of a process or product; 
 
(n) 
ICT means Information and Communications Technology; 
 
(o) 
Internet of Things means the network of physical objects that are 
embedded with sensors, software, and other technologies for the purpose of 
connecting and exchanging data with other devices and systems over the 
Internet. The Internet of Things involves the convergence of multiple 
technologies, real-time analytics, machine learning, commodity sensors, and 
embedded systems; 
 
(p) 
LGU means local government unit, particularly a city or 
municipality; 
 
(q) 
NEDA means the National Economic Development Authority; 
 
(r) 
NPC means the National Privacy Commission; 
 
(s) 
Smart City/Municipality means a city or municipality, as the case 
may be, in which innovative, advanced, and trustworthy information, 
communication, and energy technologies and related mechanisms are applied 
to: 
 
(i)  
Improve the health and quality of life of residents; 
 
(ii)  
Increase the efficiency and cost-effectiveness of civic 
operations and services; 
 
(iii)  
Promote economic growth;  
 
(iv)  
Create a community that is safer and more secure, 
sustainable, resilient, livable, and workable; and 
 
(v) 
Develop areas such as but not limited to urban agriculture, 
energy management, ICT, asset monitoring and control, security and 
surveillance, public transportation, water and power supply, sanitation, 
solid waste management, education, urban mobility, architecture, e-
governance, and citizen participation. 
 
The term Smart City/Municipality also includes a city or 
municipality that: 
 


(i) 
Gathers and incorporates data from systems, devices, and 
sensors embedded in civic systems and infrastructure to improve the 
effectiveness and efficiency of civic operations and services; 
 
(ii) 
Aggregates and analyzes gathered data; 
 
(iii) 
Communicates the analysis and data in a variety of 
formats; 
 
(iv)  
Makes corresponding improvements to civic systems and 
services based on gathered data; 
 
(v)  
Coordinates with relevant public and private sector entities 
(including entities providing electric, water, telecommunications, energy, 
transportation services, and other public utilities) to leverage the 
activities carried out by those entities; and 
 
(vi) 
Integrates measures to: 
 
(1) 
Ensure the resilience of civic systems against 
cybersecurity threats and physical vulnerabilities and breaches; 
 
(2) 
Fully protect the data and privacy of residents; 
 
(3) 
Help 
determine 
the 
impact 
of 
Smart 
City 
technologies on the effectiveness and efficiency of civic 
operations and services; and 
 
(4) 
Promotes the interoperability and coordination of 
the activities described in the clauses above with other Smart 
Cities; 
 
In general use, Smart City shall pertain to both cities and 
municipalities unless otherwise indicated; 
 
 
 
(t) 
PIEP means Philippine Institute of Environmental Planners; and 
 
(u) 
White Hat Hackers mean computer security experts who 
specialize in penetration testing and in other testing methodologies that ensure 
the security of an information system  
 
 
 
 


CHAPTER II 
ORGANIZATION AND MANAGEMENT 
 
Section 4. Smart Cities Council. - There is hereby established a Smart Cities 
Council composed of the following members: 
 
(a) 
The Secretary of the DILG as Chairperson; 
 
(b) 
The Secretaries of the DENR, DHSUD, DICT, DOE, DOLE, 
DOST, DOTr, and NEDA; 
 
(c) 
The Chairperson of the NPC; 
 
(d) 
The Presidents of the League of Cities of the Philippines and the 
League of Municipalities of the Philippines; 
 
 
(e) 
A representative from the PIEP; 
 
(f) 
A representative from the Department of Computer Science, 
University of the Philippines-Diliman; 
 
(g) 
A representative from the University of the Philippines School of 
Urban and Regional Planning; and 
 
(h)  
Three (3) members representing Smart City or ICT professional 
or advocacy organizations to be selected by the Chairperson of the Council 
from among a list of nominees submitted by Philippines-based Smart City or 
ICT professional or advocacy organizations. Nominees shall be individuals, at 
least one of whom shall be experienced in managing or implementing city- or 
large-scale information technology projects 
 
Any member of the Council is prohibited from engaging, directly or indirectly, 
with any entity that advocates, markets, imports, produces or in any manner handles 
any product, device, software, hardware, arrangement, or any service that may be 
used for the fulfillment of this Act for personal gain. Any relation by any member of the 
Council to a person connected with such entities, by affinity or consanguinity within the 
fourth civil degree, is also prohibited. Should any of these prohibited situations arise 
at any time during the incumbency of a member, the designation or appointment of 
that member shall ipso facto be terminated. In such case, the Chairperson shall 
forthwith appoint a suitable replacement consistent with this Section. 
 
Any violation of the immediately preceding paragraph shall disqualify the 
member from the Council and shall be penalized in accordance with Republic Act No. 


3019, otherwise known as the Anti-Graft and Corrupt Practices Act, and/or other 
related laws. 
 
The Council may avail itself of the expertise and services of local or international 
resource persons who are of known independence, competence, and probity, and do 
not possess the disqualifications mentioned above. The resource persons shall also 
be subject to the same prohibitions and penalties as the members of the Council. 
 
The Council shall be entitled to a just and reasonable amount of per diem 
allowances and/or honoraria to cover the expenses of the services rendered 
chargeable against the budgets of the Council in accordance with existing laws, rules, 
and regulations. 
 
In any endeavor or provision concerning this Act, the Chairperson shall 
designate the Council member with the relevant expertise or jurisdiction to spearhead 
the same whenever appropriate. 
 
Section 5. Lead Agency. - The DILG shall be the primary government agency 
responsible for the implementation and enforcement of this Act and the advancement 
of the declared policies in Section 2. It shall ensure that the mandates provided in this 
Act are fulfilled and that interagency cooperation and the proper public and private 
linkages, local and international, are established for their accomplishment.  
 
Section 6. Functions and Duties of the Council. - The Council shall act as 
the overall policy-making and advisory body for the fulfillment of this Act and shall: 
 
(a) 
Formulate, publish, and implement a National Smart City Action 
Plan to encourage the establishment of Smart Cities nationwide, consistent with 
the principle of local autonomy, within six (6) months from the effectivity of this 
Act. The Action Plan shall contain and prioritize activities which: 
 
(i) 
Demonstrate Smart City technologies in repeatable ways 
that can rapidly be scaled; 
 
(ii) 
Encourage public, private, local, provincial, regional, 
national, and international sharing of data; 
 
(iii) 
Foster the creation of best practices by carrying out 
activities such as grants, contracts, challenges, prize competitions, 
public-private partnerships, and other innovative mechanisms; 
 
(iv) 
Stimulate private sector innovation by promoting industry-
driven technology standards, open platforms, technology-neutral 
requirements, and interoperability; 


 
(v) 
Promote, as regards Smart City technologies and 
practices: 
 
(1) 
A  competent civil service and private workforce; 
 
(2) 
An open and competitive market; 
 
(3) 
Inclusion and intelligibility; and 
 
(4) 
Protocols and standards that allow for the 
measurement and validation of the cost savings and performance 
improvements associated with the installation and use of such 
innovations;  
 
(vi) 
Spur the growth of the Smart City industry and workforce 
in the country; 
 
(vii) 
Encourage the adoption of Smart City technologies and 
practices in LGUs; 
 
(viii) 
Safeguard cybersecurity, data security, and personal 
privacy by promoting industry practices regarding these. For these 
purposes, the Council shall: 
 
(1) 
Be mindful of existing laws, rules and regulations 
such as but not limited to Republic Act No. 10173 or the Data 
Privacy Act of 2012 as well as pertinent jurisprudence; 
 
(2) 
Take into consideration software quality, especially 
as that quality impacts reproducibility, maintainability, reliability, 
and security, especially of high-confidence systems;  
 
(3) 
Conduct privacy impact assessments for activities 
that could negatively affect privacy; and 
 
(4) 
Be aware of contemporary best practices and 
international standards concerning the same; 
 
The Council may also establish working groups which focus on 
achieving these purposes and which may be constituted by relevant 
Smart City stakeholders, industry experts, representatives of consumer 
groups, ICT or cybersecurity experts, white hat hackers, law 
enforcement officials, and such other representatives as the Council may 
deem appropriate.  


 
 
 
 
(ix) 
Establish parameters and best practices for the full life 
cycle management of all types of Smart City data, including collection, 
storage, ownership, and sharing of data;  
 
(x) 
Ensure 
that 
environmental 
preservation, 
green 
engineering, and the right to a balanced and healthful ecology is 
championed in all aspects and endeavors concerning this Act; and 
 
(xi) 
Fulfill other objectives as may be determined by the 
Council in the Implementing Rules and Regulations that are consistent 
with the provisions and declared policies of this Act; 
 
(b) 
Create, publish, distribute, and maintain, within one (1) year after 
the effectivity of this Act, a Smart City Resource Guide (“Guide”) designed to 
assist private and public stakeholders in developing and implementing Smart 
City programs. The Council shall regularly update and determine what pieces 
of information shall be included in the Guide. The Guide shall be maintained 
electronically on a website aside from having printed copies. 
 
The Council may include information such as: 
 
(i) 
Existing government programs and services related to this 
Act including available technical assistance, education, training, 
analysis, research and development, and the like; 
 
(ii) 
Examples or case studies of local governments, here or 
abroad, which have partnered with private entities in order to achieve 
Smart City goals; 
 
(iii) 
Available and appropriate examples of proven methods for 
local governments and public utilities to facilitate integration of Smart 
City technologies with new and existing infrastructure and systems;  
 
(iv) 
Best practices and lessons learned from technology 
demonstrations, including return on investment and performance 
information to help cities decide how to initiate integration of Smart City 
innovations;  
 
(v) 
Best practices and lessons concerning cybersecurity, 
personal privacy, and proper data management; 
 
(vi) 
Technical specifications of the more common and useful 
Smart City technologies and utilities;  


 
(vii) 
Sample Smart City Technologies, applicable either for a 
particular or multiple LGUs, such as but not limited to: 
 
(1) 
An Internet of Things which aids or is involved in 
areas such as agricultural automation, telemedicine, energy 
management, embedded systems, building management, vehicle 
and pet control, asset monitoring, or security and surveillance; 
 
(2) 
Public Wireless Fidelity (Wi-Fi) internet access; 
 
(3) 
LGU broadband services; 
 
 
(4) 
Methods for the gathering and processing of Big 
Data for proper policy- or decision-making; 
 
(5) 
Smart motion sensors that help conserve energy for 
street lights by turning them on only when oncoming vehicles 
and/or pedestrians are detected at night; 
 
(6) 
A system that measures and alerts citizens of air 
quality, traffic congestion, noise levels, crowd density and other 
pertinent data which feeds LGUs with real-time information to 
enact decisions; 
 
(7) 
A monitoring system that can alert authorities of 
possible smoking, littering, or parking violations or the general 
movement of crowds and/or vehicles; 
 
(8) 
A multi-functional Smart City mobile phone 
application available for residents or tourists of a certain LGU that 
is, for example, able to crowdsource data for the city or 
municipality via consented tracking or reporting; electronically pay 
for city services like postal fees or accountabilities like parking 
tickets; call taxis; pay bills; track items or deliveries; locate banks, 
hospitals, police stations, and other points of interest; help in the 
processing of LGU services; assist in the recording and reporting 
of violations; track the status of services applied for; and other 
similar features; 
 
(9) 
Sensors in parking spaces that can inform Smart 
City drivers of availability via an interface; 
 
(10) 
Live traffic monitoring; 


 
 
(11) 
Electric vehicle charging stations; 
(12) 
Disaster risk reduction, resilience, and mitigation 
technologies such as flood, earthquake, and typhoon monitoring 
systems; 
 
(13) 
Sensors for gunshot and explosive sounds and/or 
possible crimes against public order; 
 
(14) 
Energy-efficient systems and environmentally-
friendly energy programs that are low on carbon emissions, 
efficient with distribution, and optimized with consumption; and  
 
(15) 
Any other example the Council deems fit for 
inclusion which touch on areas such as urban agriculture, 
healthcare, energy management, ICT, asset monitoring and 
control, security and surveillance, public transportation, water and 
power supply, sanitation, solid waste management, education, 
urban 
mobility, 
architecture, 
e-governance, 
and 
citizen 
participation; and 
 
(viii) 
Such other topics and information as may be determined 
by the Council in the Implementing Rules and Regulations that are 
consistent with the provisions and declared policies of this Act; 
 
(c) 
Conduct consultations with the private sector and LGU 
stakeholders to determine, for the effective fulfillment of this Act, information 
such as barriers to Smart City technology adoption; research or analyses which 
must be undertaken; and other pertinent endeavors; 
 
(d) 
Espouse a scientific approach in its decision-making and shall 
always keep abreast of contemporary scientific findings, researches, and 
developments; 
 
(e) 
Monitor and require compliance from government agencies and 
instrumentalities with respect to the Smart City policies, guidelines, and 
standards prescribed by it;  
 
(f) 
Conduct periodic reviews of the administration, operation, 
policies, rules, and regulations governing this Act, and update the same in order 
to reflect the best practices and standards, always adhering to local autonomy;  
 


(g) 
Provide technical support, knowledge, assistance, and identify 
gaps for capacity-building for LGUs desiring to plan, develop, and/or implement 
Smart City technologies or practices; 
 
(h) 
Create programs and partner with entities such as State 
Universities and Colleges, the Technical Education and Skills Development 
Authority, and other similar institutes of learning to cultivate professionals and 
workers adept with Smart City technologies via technology-based job training 
and educational courses that provide industry-recognized credentials; and 
 
(i) 
Undertake any other such function as the Council may deem 
necessary for the fulfillment of this Act, consistent with its provisions and 
declared policies. 
 
Section 7. 
Role of Local Development Councils. - The Local Development 
Councils in every city and municipality as constituted by Section 106 of Republic Act 
No. 7160, otherwise known as the “Local Government Code”, shall be responsible for 
setting the direction, development, implementation and coordination of Smart City or 
Municipality programs within their respective territorial jurisdictions. 
 
Section 8.  Role of Local Planning and Development Coordinators. - The 
city and municipal Planning and Development Coordinators as described in Section 
476 of Republic Act No. 7160 shall primarily be responsible for providing technical 
support to the Local Development Councils on Smart City or Smart Municipality 
initiatives. 
 
The city and municipal Planning and Development Office shall have a Smart 
City or Smart Municipality Unit that shall be initially composed of three (3) regular staff 
responsible for (1) administration, (2) research and planning, and (3) development. 
 
Section 9.  Local Fund. - Starting from Fiscal Year 2022, each city and 
municipality shall set aside not less than five percent (5%) of its estimated internal 
revenue allotment to support Smart City and Municipalities initiatives under a fund that 
shall be known as the Local Smart City Fund (LSCF) or Local Smart Municipality Fund 
(LSMF). 
 
Unexpended LSCF or LSMF shall accrue to a special trust fund solely for the 
purpose of supporting Smart City and Municipality initiatives within the next five (5) 
years. Any such agricamount still not fully utilized after five (5) years shall revert back 
to the general fund and will be available for other social services to be identified by the 
local Sanggunian. 
 
 


CHAPTER III 
STANDARDS 
 
Section 10. Smart City Standards. -  Without prejudice to whatever additions 
and modifications the Council may include in the Implementing Rules and Regulations 
consistent with the provisions and declared policies of this Act, the Council shall 
standardize and promote the advancement of nine (9) Smart City dimensions, as 
defined and/or expounded upon hereunder, as well as their indicators as may be found 
in various researches and/or initiatives, for the creation of Smart Cities and 
Municipalities. 
 
 
Section 11. Human Resources. - The main goal of any smart city shall be to 
improve the quality of living of its human resources. A smart LGU with smart 
governance must be capable of attracting and retaining talent, of creating plans to 
improve education, and of promoting creativity and research.  
 
No. 
Indicator 
Description / Unit of Measurement 
1 
Higher education  
Proportion of population with secondary and 
higher education  
2 
Business schools  
Number of top business schools 
3 
Movement of students  
International 
movement 
of 
higher-level 
students; Number of students 
4 
Universities  
Number of universities in the city that are at 
the top nationally 
5 
Museums and art galleries  
Number of museums and art galleries per 
LGU 
6 
Schools  
Number of public or private schools per LGU 
7 
Theaters  
Number of theaters per LGU 
8 
Expenditure on leisure and 
recreation  
Expenditure on leisure and recreation per 
capita 
9 
Expenditure on leisure and 
recreation  
Expenditure on leisure and recreation In 
millions of Philippine pesos 
 
Section 12. Social Cohesion. - Social cohesion is a sociological dimension 
of LGUs that can be defined as the degree of consensus among the members of a 


social group or as the perception of belonging to a common situation or project. It is a 
measure of the intensity of social interaction within the group. Social cohesion in the 
urban context refers to the degree of coexistence among groups of people with 
different incomes, cultures, ages, and professions who live in an LGU. Concern about 
the LGU’s social setting requires an analysis of factors such as immigration, 
community development, care of the elderly, the effectiveness of the health system, 
and public inclusion and safety. 
 
The presence of various groups in the same space and mixing and interaction 
between groups are essential in a sustainable urban system. In this context, social 
cohesion is a state in which citizens and the government share a vision of a society 
based on social justice, the primacy of the rule of law, and solidarity. 
 
No. 
Indicator 
Description / Unit of Measurement 
10 
Mortality 
Ratio of deaths per 100,000 inhabitants 
11 
Crime Rate 
Crime rate 
12 
Health 
Health index 
13 
Unemployment 
Unemployment rate  
14 
Gini Index 
Measure of social inequality; It varies from 0 
to 100, with zero being a situation of perfect 
equality and 100 that of perfect inequality 
15 
Price of Property 
Price of property as percentage of income 
16 
Female Workers 
Ratio of female workers in the public 
administration 
17 
Global Peace Index 
An index that measures the peacefulness and 
the absence of violence in a country or region; 
High values indicate countries with a high 
level of violence 
18 
Hospitals 
Number of public and private hospitals and 
health centers per LGU 
19 
Happiness Index 
Happiness index of a country; The highest 
values on the index indicate countries that 
have a higher degree of overall happiness 
20 
Global Slavery Index 
Ranking that considers the proportion of 
people in a situation of slavery in the country; 


The countries occupying the top positions in 
the ranking are those with the highest 
proportion of the population in a situation of 
slavery 
21 
Government 
Response 
to 
Situations of Slavery 
This variable measures how the government 
deals with situations of slavery in the country 
The top positions in the ranking indicate 
countries that have a more effective and 
comprehensive response to slavery 
22 
Terrorism 
Number of terrorist acts of vandalism per LGU 
in the previous three years 
 
Section 13. Economy. - This dimension includes all aspects that promote the 
economic development of a territory: local economic development plans, transition 
plans, strategic industrial plans, and cluster generation, innovation and entrepreneurial 
initiatives.  
 
No. 
Indicator 
Description / Unit of Measurement 
23 
Productivity 
Labor productivity calculated as GDP per 
working population (in thousands) 
24 
Time to required to start a 
business 
Number of calendar days needed so a 
business can operate legally 
25 
Ease of starting a business 
The top positions in the ranking indicate a 
more favorable regulatory environment for 
creating and developing a local company 
26 
Headquarters 
Number of headquarters of publicly traded 
companies 
27 
Motivation 
for 
early-stage 
entrepreneurial activity 
Percentage of people involved in total 
entrepreneurial 
activity 
(TEA) 
who 
are 
motivated by an opportunity for improvement, 
divided by the percentage of TEA motivated 
by need; TEA: new entrepreneurs or 
owners/managers of a new business 
28 
Gross 
Domestic 
Product 
(“GDP”) Estimate 
Estimated annual GDP growth 


29 
GDP 
Gross domestic product in millions of pesos 
30 
GDP per capita 
Gross domestic product per capita 
 
Section 14. Smart Governance. - Governance is the term commonly used to 
describe the effectiveness, quality and sound guidance of State intervention. Given 
that the citizen is the meeting point for solving all the challenges facing LGUs, factors 
such as the level of the public’s participation, the authorities’ ability to involve business 
leaders and local stakeholders, and the application of e‑government plans should be 
taken into account. 
 
No. 
Indicator 
Description / Unit of Measurement 
31 
Reserves 
Total reserves in millions of current Philippine 
pesos 
32 
Reserves per capita 
Reserves in millions of current Philippine 
pesos 
33 
Embassies 
Number of embassies and consulates per 
LGU 
34 
International Organization for 
Standardization 
(“ISO”) 
37120 certification 
This establishes whether or not the LGU has 
ISO 37120 certification; Certified LGUs are 
committed to improving their services and 
quality of life; Variable is coded from 0 to 6; 
LGUs that have been certified for the longest 
time have the highest value; The value 0 is for 
LGUs without certification 
35 
Research centers 
Number of research and technology centers 
per LGU  
36 
Strength of legal rights 
The strength of legal rights index measures 
the degree to which collateral and bankruptcy 
laws protect the rights of borrowers and 
lenders and thus facilitate access to loans; 
The values go from 0 = low to 12 = high, 
where the highest ratings indicate that the 
laws are better designed to expand access to 
credit 
37 
Corruption perceptions 
Corruption perceptions index; Countries with 
values close to 0 are perceived as very 


corrupt and those with an index close to 100 
are perceived as very transparent 
38 
Open data platform 
This describes whether the city has an open 
data system. 
39 
E‑Government Development 
Index (“EGDI”) 
The EGDI reflects how a country is using 
information technology to promote access 
and inclusion for its people 
40 
Democracy 
Ranking where the places in the highest 
positions 
are 
those 
considered 
more 
democratic 
41 
Government buildings 
Number 
of 
government 
buildings 
and 
premises in the city 
 
Section 15. Eco-friendliness 
and 
the 
Environment. 
- 
Sustainable 
development of an LGU shall be defined as development that meets the needs of the 
present without compromising the ability of future generations to meet their own needs. 
In this respect, factors such as improving environmental sustainability through 
antipollution plans, support for green buildings and alternative energy, efficient water 
management, and the existence of policies that help counter the effects of climate 
change must be pursued to guarantee the long-term sustainability of LGUs. 
 
No. 
Indicator 
Description / Unit of Measurement 
42 
Carbon 
dioxide 
(“CO2“) 
emissions 
CO2 emissions from the burning of fossil fuels 
and other processes; Measured in kilotons  
43 
CO2 emission index 
CO2 emission index 
44 
Methane emissions 
Methane emissions that arise from human 
activities such as agriculture and the industrial 
production of methane; Measured in kilotons 
of CO2 equivalent 
45 
Access to the water supply 
Percentage of the population with reasonable 
access to an appropriate quantity of water 
resulting from an improvement in the water 
supply 
46 
PM2.5 
PM2.5 measures the number of particles in 
the air whose diameter is less than 2.5 


micrometers; Annual mean 
47 
PM10  
PM10 measures the number of particles in the 
air 
whose 
diameter 
is 
less 
than 
10 
micrometers; Annual mean 
48 
Pollution 
Pollution index 
49 
Environmental Performance 
Index 
This measures environmental health and 
ecosystem vitality; Scale from 1 (poor) to 100 
(good) 
50 
Renewable water resources 
Total renewable water sources per capita 
51 
Future climate 
Percentage of summer temperature increase 
in the LGU forecast for 2100 if carbon 
pollution continues to increase 
52 
Solid waste 
Average amount of municipal solid waste 
(garbage) generated annually per person 
(kilograms/year) 
 
Section 16. Mobility and Transportation. - The LGUs of the future have to 
tackle two major challenges in the field of mobility and transportation: facilitating 
movement through cities and access to public services. 
 
 
Mobility and transportation—both with regard to road and route infrastructure, 
the vehicle fleet, and public transportation, as well as to air transportation—affect the 
quality of life of an LGU’s inhabitants and is vital to the sustainability of LGUs over 
time.    
 
No. 
Indicator 
Description / Unit of Measurement 
53 
Traffic index 
Consideration of the time spent in traffic, the 
dissatisfaction 
this 
generates, 
CO2 
consumption and other inefficiencies of the 
traffic system 
54 
Inefficiency index 
Estimation of traffic inefficiencies (such as 
long journey times) 
55 
Index of traffic for commuting 
to work  
Index of time based on how many minutes it 
takes to commute to work 


56 
Bike sharing 
The bicycle-sharing system shows the 
automated services for the public use of 
shared bicycles that provide transport from 
one location to another within an LGU; The 
indicator varies between 0 and 8 according to 
how developed the system is 
57 
Metro length 
Length of the metro system per LGU 
58 
Metro stations 
Number of metro stations per LGU 
59 
Flights  
Number of arrival flights (air routes) in a LGU 
60 
Gas stations 
Number of gas stations per LGU 
61 
High-speed train 
Binary variable that shows whether the LGU 
has a high-speed train or not 
 
Section 17. Urban Planning. - The urban planning of an LGU has several 
subdimensions and is closely related to sustainability. To improve the habitability of 
any territory, it is necessary to take into account the local master plans and the design 
of green areas and spaces for public use, as well as opting for smart growth. The new 
urban planning methods should focus on creating compact, well-connected LGUs with 
accessible public services.  
 
No. 
Indicator 
Description / Unit of Measurement 
62 
Bicycles for rent 
Number of bike-rental or bike-sharing points, 
based on docking stations where they can be 
picked up or dropped off 
63 
Percentage of the population 
with access to sanitation 
facilities 
Percentage of the population with at least 
sufficient access to facilities for the disposal 
of excreta that can efficiently avoid the contact 
of humans, animals, and insects with excreta 
64 
Number 
of 
people 
per 
household  
Number of people per household; Occupancy 
by household is measured compared to the 
average; This makes it possible to estimate if 
a LGU has overoccupied or underoccupied 
households 
65 
High-rise buildings 
Percentage of buildings that are considered 
high-rises; A high-rise is a building of at least 


12 stories or 35 meters high 
66 
Buildings 
The buildings variable is the number of 
completed buildings in the LGU; This includes 
structures such as high-rises, towers and 
smaller buildings but excludes other diverse 
structures and buildings in different states of 
completion (in construction, planned, etc.)   
 
Section 18. International Outreach. - LGUs that want to progress must 
secure a privileged place in the world. Maintaining global impact involves improving 
the LGU’s brand and its international recognition through strategic tourism plans, the 
attracting of foreign investment and representation abroad.  
 
No. 
Indicator 
Description / Unit of Measurement 
67 
International 
fast 
food 
franchises 
Number of international fast food franchises 
per LGU 
68 
Airports 
Number of points where flight operations take 
place within a 40 kilometer radius from the 
latitude and longitude defining the center of 
the LGU; It includes airports, aerodromes, 
airfields, 
and 
landing 
strips 
whether 
international, private, military or otherwise; 
Also included are the buildings used for 
processing passengers and cargo (terminals) 
69 
Number of passengers per 
airport 
Number 
of 
passengers 
per 
airport 
in 
thousands 
70 
Sightsmap 
Ranking of cities according to the number of 
photos taken in the LGU and uploaded to 
Panoramio 
(community 
for 
sharing 
photographs online); The top positions 
correspond to the LGUs with the most 
photographs 
71 
Number of conferences and 
meetings 
Number of international conferences and 
meetings that take place in a LGU 
72 
Hotels  
Number of hotels per capita 
 


Section 19. Technology. - Technology is an aspect of society that improves 
the present quality of life, and its level of development or spread is an indicator of the 
quality of life achieved or the potential quality of life. Technology shall be developed to 
allow LGUs to be sustainable over time and to maintain or extend the competitive 
advantages of their production system and the quality of employment.  
 
No. 
Indicator 
Description / Unit of Measurement 
73 
Social media variable 
Number of registered users of popular social 
media platforms in the LGU 
74 
Mobile phones  
Number of mobile phones in the LGU, using 
estimates in line with country-level data 
75 
Wi-Fi hotspot 
Number of wireless access points; These 
represent the options there are in the LGU for 
connecting to the Internet 
76 
Internationally 
branded 
technology and/or consumer 
electronics and/or computer 
software stores 
Number of such branded stores in the LGU 
77 
Innovation index 
The city’s innovation index; Valuation from 0 
= no innovation to 60 = a lot of innovation 
78 
Landline subscriptions 
Number of landline subscriptions per 100 
inhabitants. 
79 
Broadband subscriptions 
Broadband subscriptions per 100 inhabitants 
80 
Internet 
Percentage of households with access to the 
Internet 
81 
Mobile telephone 
Percentage of households with mobile 
phones in the LGU 
 
CHAPTER IV 
ACCELERATION PROGRAM 
 
 
Section 20. Smart Innovation and City Acceleration Program. - There is 
hereby established a Smart Innovation and City Acceleration Program (“SICAP”) to 
spur the adoption of Smart City technologies and practices nationwide. SICAP is an 


incentivization and assistance program to recognize, award, and honor LGUs which 
demonstrate a commitment to adopting and implementing Smart City initiatives.  
 
 
For this purpose, the Council shall evaluate the standardized dimensions and 
their aspects and indicators, as found in Chapter III of this Act, in assessing the 
performance of LGUs.  
 
The Council shall also take into consideration reasonable factors such as but 
not limited to the LGU’s ingenuity and creativity, the scalability and replicability of their 
projects, the profitability of the Smart City investment and return on investment, how 
much a Smart City program aligns with the LGU’s strategic goals, its constituents’ 
needs, or national development plans, and the LGU’s flexibility and adaptability to 
different circumstances. 
 
Section 21. Council Considerations for SICAP. - In undertaking SICAP and 
in generally dealing with LGUs with respect to the provisions of this Act, the Council 
shall always be mindful that not all are similarly situated. The Council shall thus take 
into account the following characteristics of the LGU in consideration: 
 
(a) 
Topography and Geography;  
 
(b) 
Predisposition to natural calamities; 
 
(c) 
Surrounding environment; 
 
(d) 
Size; 
 
(e) 
Population; 
 
(f) 
Existing physical, service, and ICT infrastructure;  
 
(g) 
Financial resources; 
 
(h) 
Level of urbanization; 
 
(i) 
Economic capability;  
 
(j) 
Degree of technology and knowledge base available;  
 
(k) 
Class or category of the city or municipality; and 
 
(l) 
Such other factors which contribute to fair and just assessments 
when it comes to the SICAP as shall be determined by the Council in the 
Implementing Rules and Regulations. 


 
In the interest of fair and equal competition, the Council may create as many 
categories or divisions as it may deem fit to group together similarly situated LGUs for 
purposes of SICAP. The Council may from time to time revise such categories or 
divisions to spur creativity and advancement among LGUs. The Council may also 
determine which among the dimensions and their particular indicators in Chapter III 
will be reasonably used in analyzing LGUs belonging to particular categories or 
divisions. 
 
Section 22. SICAP Incentive Fund. - There is hereby created a special 
account in the General Appropriations Act called the SICAP Incentive Fund (“Fund”). 
The fund shall be utilized to pay out the incentives granted to LGUs exhibiting 
excellence with regard to Smart City technologies and practices. 
 
The Council is hereby authorized to determine the monetary incentives which 
shall be available to LGUs by virtue of SICAP and the activities mentioned in Section 
6(a)(iii), which shall be chargeable to the Fund. The Council is also authorized to revisit 
and increase the amounts, if necessary, provided that the Fund is sufficient enough at 
the time the increase is implemented. 
 
The use of the incentives paid out of the Fund shall be governed by the policies 
governing the utilization of the twenty percent (20%) of the annual Internal Revenue 
Allotment for local development projects, the Annual Investment Program, and the 
Local Development Investment Program. 
 
The incentives paid out of the Fund shall not be used for any of the following:  
 
(a)  
Financing credits and loans;  
 
(b)  
Travel expenses, whether domestic or foreign, except when the 
purpose is in furtherance of the purposes of this Act;  
 
(c)  
Administrative expenses of the LGU including, but not limited to, 
cash gifts, bonuses, food allowances, staff uniforms, communication bills, 
utilities, transportation costs, and the like;  
 
(d)  
Purchase, maintenance, or repair of any motor vehicles or 
motorcycles not directly used for the purposes of this Act;  
 
(e)  
Salaries, wages, emoluments, per diems, or overtime pay of 
employees;  
 
(f)  
Construction, repair, or refurbishing of administrative offices;  
 


(g)  
Loan guarantee; and 
 
(h)  
Analogous purposes 
 
 
 
The Fund shall be managed and administered by the DILG with the supervision 
of the Council. Appropriation to replenish the amount paid out from the Fund during 
the year and/or to augment the Fund shall be proposed by and included in the budget 
of the DILG under the General Appropriations Act. 
 
Section 23. Application Standards. - The Council shall ensure that all 
applications made available for mobile phones, tablets, laptops, desktops, and other 
similar devices shall, in the pursuit of the objectives of this Act, reflect the following 
standards: 
 
(a) 
Open data and content; 
 
(b) 
Excellent User Interface and User Experience; 
 
(c) 
Ease of internal and external data exchange;  
 
(d) 
User safety and privacy;  
 
(e) 
Economical use of budget and resources; 
 
(f) 
Multilingual Capability and Intelligibility; 
 
(g) 
Correctness; 
 
(h) 
Dependability; 
 
(i) 
Efficiency; 
 
(j) 
Adaptability; 
 
(k) 
Wide-compatibility; and 
 
(l) 
Any other standard or quality that will be set by the Council in the 
Implementing Rules and Regulations, which shall be consistent with this Act. 
 
 
 
 
 
 


CHAPTER V 
FINAL PROVISIONS 
 
 
Section 24. Public-Private Participation. - To promote an efficient and cost-
effective delivery of services, the DILG may partner with the private sector in the 
implementation of the Action Plan. 
 
 
Section 25. International Cooperation. - To foster dynamism, synergy, and 
the sharing of global best practices, the DILG may partner with foreign governments 
as well as international networks such as the ASEAN Smart Cities Network, World 
Smart Cities Organization, Smart Cities Council, and the Smart Cities Association. 
 
Section 26. Appropriations. - The SICAP Incentive Fund shall have an 
allocation of one billion pesos (Php 1,000,000,000.00) revolving fund starting from the 
effectivity of this Act.  
 
Section 27. Implementing Rules and Regulations. - The Council shall issue 
within ninety (90) days from the effectivity of this Act the necessary rules and 
regulations for the effective implementation of this Act.   
 
Section 28. Report to Congress. - The Council shall submit a report to 
Congress not later than March 30 of every year following the approval of this Act 
regarding the progress of nationwide Smart City efforts, including the status of relevant 
Smart City technology developments and applications, local and foreign, and shall 
make the necessary recommendations in areas where there is need for legislative 
action.   
Section 29. Joint Congressional Oversight Committee. - There is hereby 
created a joint congressional oversight committee to monitor the implementation of 
this Act. The committee shall be composed of three (3) senators and three (3) 
representatives to be appointed by the Senate President and the Speaker of the 
House of Representatives, respectively. The majority and minority parties shall, as far 
as practicable, be equally represented in the committee. The oversight committee shall 
be co-chaired by a senator and a representative designated by the Senate President 
and the Speaker of the House of Representatives, respectively. It shall convene at 
least once every year. 
The mandate given to the joint congressional oversight committee under this 
Act shall be without prejudice to the performance of the duties and functions by the 
respective existing oversight committees of the Senate and the House of 
Representatives. 


Section 30. Repealing Clause. - All laws, executive orders, proclamations, 
rules, regulations and other issuances or parts thereof which are inconsistent with the 
provisions of this Act are hereby repealed, amended, or modified accordingly. 
 
Section 31. Separability Clause. - If any part or provision of this Act is held 
unconstitutional or invalid, other parts or provisions thereof which are not affected shall 
continue to remain in full force and effect. 
Section 32. Effectivity. - This Act shall take effect fifteen (15) days following 
completion of its publication in at least two (2) newspapers of general circulation. 
 
Approved,