REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No, 1214

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN III

EXPLANATORY NOTE

In 2009, the Philippines submitted before the United Nations Commission on the Limits of the
Continental Shelf its claim to the Benham Rise region. Said claim was based on the 1982 United
‘Nations Convention on the Laws of the Sea (UNCLOS) and the 2008 Archipelagic Baseline Law
(Republic Act No. 9522) which puts Benham Rise within the maritime boundary of the country.
In 2012, the United Nations (UN) Commission on the Limits of the Continental Shelf adopted
said submission, giving Philippines exclusive sovereign rights to explore and utilize the natural
resources within the exclusive economic zone (EEZ) and the continental shelf of the said area.

Previous studies conducted by the Department of Environment and Natural Resources (DENR)
on the Benham Rise area indicated large deposits of methane (in solid form) and manganese
modules. Additionally, the National Mapping and Resource Information Authority (NAMRIA)
speculates the presence of gas deposits in the area. However, despite this foreseen economic
potential and with more than four years since the decision of the UN, no exploration has been
conducted in Benham Rise area.

Therefore, there is an urgent need to look into this matter and initiate strategies to maximize the
economic potentials of the region at the country’s advantage. There is also a need to strengthen
the role of government agencies such as the DENR and the Department of Energy (DOE) in
conducting more extensive researches on the pool of natural resources available in the region
This urgency is also in light of the alleged plying of Chinese survey ships in the area.

If enacted into law, this bill seeks to create a Philippine Rise Development Authority (PRDA),
which will be tasked to spearhead the exploration and development, and to secure and galvanize
the rights of the country to the Benham Rise region.

In view of the forgoing, the passage of this measure is earnestly sought.

MANU! CHAN HL
Representati
Magdalo Para sa Pilipino Party-List


WONANAWNH

REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. lela

Introduced by MAGDALO Party-List Representative
HON, MANUEL DG, CABOCHAN III

AN ACT
CREATING THE PHILIPPINE RISE DEVELOPMENT AUTHORITY (PRDA),
DEFINING ITS POWERS AND FUNCTIONS, PROVIDING FUNDS THEREFOR AND
FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

Section 1. Short Title. - This Act shall be known as the "Philippine Rise Development
Authority Act" or "PRDA Act".

Sec. 2. Declaration of Policy. — It is hereby declared a policy of the State to tap and
accelerate the sound management and sustainable development of the Philippine Rise,
particularly on its potential to be a rich source of alternative energy and marine resources, and as
a possible tourism destination. Towards this end, an effective institutional mechanism with due
regard to the precautionary principle, as well as ecosystem-based and science-based approaches,
shall be established to address the need for a coordinated and integrated approach in the
formulation and implementation of various development plans, programs, and projects that will
optimize the full potential of the Philippine Rise while conserving its ecology and resources for
the benefit of future generations.

Sec. 3. Creation of the Philippine Rise Development Authority. - There is hereby created
a body corporate to be known as the Philippine Rise Development Authority, hereinafter referred
to as the Authority, which shall promote, coordinate and facilitate the active and extensive
participation of all sectors to effect the

exploration, study, and development, as well as the conservation and protection, of the natural
resources within the Philippine Rise.

The Authority shall also be the lead agency in conducting scientific research and
exploration and shall secure the rights of the State over the area. Explorations must be done in
partnership with the Department of Environment and Natural Resources-Biodiversity
Management Bureau (DENR-BMB), Department of Agriculture-Bureau of Fisheries and Aquatic
Resources (DA-BFAR), and academic institutions with the necessary competence to conduct
rigorous and comprehensive studies in the Philippine Rise area


The Authority shall be organized within one hundred eighty (180) days after the approval
of this Act. It shall have a term of fifty (50) years from its organization and may be renewed for
another fifty (50) years, unless otherwise provided by law. It shall be an attached agency to the
Office of the President. It shall establish its first office in the Aurora Pacific Economic and

Freeport Zone and may put up such other offices as may be necessary to achieve the objectives
of this Act.

Sec. 4. Coverage. — The PRDA shall cover all natural resources located in the undersea
feature known as the Philippine Rise Region, within the Philippine exclusive economic zone and
continental shelf, as well as the outer limits of the extended continental shelf pursuant to the
recommendations of the Commission on the Limits of the Continental Shelf (CLCS) issued on
April 12, 2012, and bounded by the coordinates 12°30'N to 20°30'N latitude and 122°30'E to
129°30 longitude, excluding the fifteen-kilometer municipal waters of adjacent coastal areas.

See. 5. Powers and Functions of the Philippine Rise Development Authority. - In the
exercise of its mandate, the Authority shall have the following powers and functions:

a) Formulate and advocate national policies that will foster the integrated, balanced, and
sustainable development framework for the Philippine Rise that is consistent with the
development initiatives of the national government, as far as practicable;
Develop, plan, program, prioritize, integrate, and implement, whenever allowed and
authorized by applicable laws, programs, projects, and activities at the Philippine Rise;
Recommend to or coordinate with the proper government agencies programs, projects,
and activities soliciting or requiring their direct or indirect assistance including, but not
limited to, technical support and physical assistance for the prioritization of the region's
environmental, agricultural, fisheries, marine and non-marine biodiversity, energy,
industrial, commercial, infrastructure, tourism, technological, and scientific concerns;
Review Philippine Rise programs, projects, and activities by the national government and
donor agencies, subject to existing laws, rules, and regulations, for the purpose of
ensuring consistency with national policies and plans, as well as monitor, evaluate, and
formulate recommendations in the implementation of such programs, projects, and
activities;
Establish a complete, comprehensive, and integrated database on the Philippine Rise
prior to the conduct of any exploration activities, whenever possible. For this purpose, the
Authority may coordinate with academic institutions concerned to conduct
comprehensive survey and assessment and generate resource map of the Philippine Rise
which shall be the underlying foundation for all policy and management decisions;
f) Create an area research plan and coordinate research initiatives and exploration in the
Philippine Rise region, establish a repository of research data, and provide incentives for
such research and exploration activities;
Promote the protection and conservation of important marine biodiversity and fishery
resources, including marine genetic resources, which are important for ensuring climate
change resiliency and food security;
Promote and facilitate public and private investments that would enhance the integrated,
balanced, and sustainable development of the Philippine Rise, and explore other sources

b

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d)

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of financing for priority Philippine Rise related programs, projects, and activities, in close
coordination with agencies primarily mandated to undertake such functions;

i) Receive and administer donations, contributions, grants, bequests, or gifts, in cash or in
kind, from foreign governments, international agencies, private entities, and other
sources, including Official Development Assistance, subject to existing laws, rules, and
regulations;

j) Sue and be sued, and as approved by the Board, enter into contracts, acquire, purchase,
hold, lease, transfer, or dispose of properties of any kind or nature to carry out the

purposes of this Act;

Issue clearances, including the necessary rules and standards, for all proposals, plans,

programs, projects, or any activity involving the Philippine Rise Region including, but

not limited to, marine science research, exploration, and exploitation, whether conducted
by Filipino or foreign nationals, in accordance with Sec. 7 of this Act;

1) Request the President of the Philippines and other government agencies for any needed
assistance in the enforcement of all applicable laws, rules, and regulations, the
exploration and scientific study of the entire region, the sustainable exploitation of its
natural bounties, and the protection of national security and national interests, including
law enforcement against illegal intruders and poachers; and

m) Discharge such other functions as may be deemed necessary to carry out its mandate
under this Act or as may be provided by law.

k)

The Authority, through its Administrator, shall submit to the President and both Houses of
Congress annual reports on its accomplishments and activities.

Sec. 6. Board of Directors. — The power of the Authority shall be vested in and exercised
by a Board of Directors, hereinafter referred to as the Board, which shall manage and supervise
the overall directions and thrusts. It shall be composed of the following:

a) The President of the Philippines who shall act as the Chairperson of the Board;
b) The Administrator of the Philippine Rise Development Authority who shall act as the
Vice-Chairperson of the Board; and
©) Thirteen (13) other members composed of the following:
1. The NEDA Director-General or the duly authorized representative;
2. The Department of Environment and Natural Resources (DENR) Secretary or the
duly authorized representative;
3. The Department of Energy (DOE) Secretary or the duly authorized representative;
4, The Department of Agriculture (DA) Secretary or the duly authorized
representative;
5. The Department of Science and Technology (DOST) Secretary or the duly
authorized representative;
6. The Department of Finance (DOF) Secretary or the duly authorized
representative;
7. The Department of Budget and Management (DBM) Secretary or the duly
authorized representative;
8. The Department of National Defense (DND) Secretary or the duly authorized
representative;


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9. The Department of Foreign Affairs (DFA) Secretary or the duly authorized
representative;

10. The Department of Transportation (DOTr) Secretary or the duly authorized
representative;

11. The National Coast Watch Council (NCWC) Executive Director or the duly
authorized representative;

12. The National Security Council (NSC) National Security Adviser and Director
General or the duly authorized representative; and

13. The University of the Philippines (UP) President or the duly authorized
representative.

The members of the Board shall receive a per diem at a rate to be determined 28 by the
Governance Commission for Government Owned or Controlled Corporations 29 (GCG), in
accordance with existing rules and regulations: Provided, however, That the 30 per diem
collected per month does not exceed the equivalent per diem of four (4) 31 meetings: Provided,
further, That the amount of per diem for every Board meeting 32 may be increased by the
President or GCG but such amount shall not be increased 33 within two (2) years from its last
increase.

The Board shall have the following functions:

a)

Provide direction and guidance for the Authority's work and thrusts for the Philippine

Rise;

Ensure that the goals and policies of the Authority are consistent with the overall national

development goals and objectives, and that the programs of the Authority are consistent

with regional and local development plans, programs, and projects, and vice versa, for

purposes of harmonization;

Explore sources for financing of priority Philippine Rise plans, programs, projects, and

activities;

Create committees or task forces as may be deemed necessary in the accomplishment of

its functions;

Determine schedules, establish voting procedures, criteria for the constitution of a

quorum, and other rules and regulations in the conduct of Board meetings;

f) Approve contracts and enter into agreements to carry out the purposes of this Act, except
when authority to sign such contracts and/or agreements is vested in a specific

government officer or entity; and

Perform such other functions as may be necessary to carry out the purposes of this Act.

b)

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d)

é)

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Sec. 7. Issuance of Clearances by the Authority. - No proposals, plans, programs,
projects, or activities involving the Philippine Rise Region including, but not limited to, marine
science research, exploration, and exploitation, whether conducted by Filipino and foreign
nationals, shall be carried out, nor shall any license or permit be issued in relation to the same,
without the clearance of the Authority

The Authority shall issue the necessary clearance for all approved proposals, plans,
programs, projects, or activities within twenty (20) calendar days from submission thereof, In


cases where the Authority fails to act within the same 20-day period, the submissions shall be
deemed approved. Any decision of disapproval by the Authority may be appealed within fifteen

(15) calendar days from receipt thereof to the Office of the President whose decision shall be
final.

The Authority shall issue rules and standards concerning the clearance required under this
section: Provided, that, Such clearance must be secured before all other permits and/or licenses
required under existing and applicable laws shall be issued: Provided, further, That the grant or
denial of an application for clearance shall be made on the basis of this Act, other laws and
regulations applicable to the Philippine Rise, and the integrated, balanced, and sustainable
development framework formulated under Sec. 5(a) of this Act.

Sec. 8. Accrual of Revenues and Receipts to the General Fund. All revenues and
receipts from any and all sources including the government share representing royalties, rentals,
production share on service contracts, and similar payments on the development, exploration,
and exploitation of energy resources within the Philippine Rise shall be remitted to the National
‘Treasury and shall accrue to the General Fund.

Sec. 9. Advisory Panel of Technical Experts. ~ The Authority shall constitute an
advisory panel of technical experts consisting of practitioners in disciplines that are related to oil
and gas extraction and processing, hydrography, marine ecology, surveying, hydroiogy,
including, but not limited to, oceanography.

The Advisory Panel shall perform research and development and provide technical
advice to the Authority in maritime science, technologies, and best practices for the extraction
and development of oil and gas fields.

The Authority shall set the qualifications and compensation for the technical experts. It
shall provide resources for the operations and activities of the Advisory Panel.

Sec. 10. Administrator. - The Authority shall have an Administrator who shall be
appointed by the President of the Philippines, upon recommendation of the Board. The
Administrator shall serve a term of six (6) years from the date of his/her appointment unless
sooner separated from service due to death, voluntary resignation, or removal for cause:
Provided, That no person shall be appointed as Administrator unless he/she is a Filipino citizen,
holder of a degree in law or a masters degree in any of the following fields: economics, business,
public administration, law, management, or their equivalent, and have at least ten (10) years of
relevant experience in said fields: Provided, further, That he/she shall be a resident of the
Philippines for at least five (5) years before the appointment

See. 11. Powers and Duties of the Administrator; Secretariat. - The Administrator shall
have the following powers and duties:

a) Direct and manage the affairs of the Authority in accordance with the policies of the
Board;


b) Call and preside over meetings of the Board in the absence of the Chairperson, and
supervise and direct its Secretariat; A Secretariat is hereby established to serve and assist
the Board in the effective implementation of this Act. The Head of the Secretariat shall be
appointed by the Administrator upon recommendation by the Board: Provided, That no
person shall be appointed as Head of the Secretariat unless he/she is a Filipino citizen,
holder of a degree in any of the following fields: economics, business, public
administration, law, management, or their equivalent, and have at least five (5) years of
relevant experience in said fields: Provided, further, That he/she shall be a resident of the
Philippines for at least five (5) years prior to his/her appointment and has the requisite
cligibilities for third level career service position pursuant to the career executive rank
system;

°)

Ensure the proper implementation of applicable policies, programs, and rules and
regulations, including the resolutions of the Board;

d) Identify solutions to key issues and concerns, taking into account related risks, affected
parties, and impact, in coordination with the Board and key stakeholders;

é)

Advocate the Authority's work among the various concerned sectors and stakeholders;

£) Call on any agency, group, individual member of the Board, local government unit, and
host community to address issues and concerns relating to the implementation of major

programs, projects, and activities;

2) Supervise the monitoring and timely implementation of Philippine Rise related programs,
projects, and activities;

bh

Endorse to the Board all policy recommendations, plans, and programs for approval;

i) Accept, on behalf and upon approval of the Authority, donations, contributions, grants,
gifts, bequests, or devises, in cash or in kind, from members, foreign governments,
international agencies, private entities, or any individual for purposes that will realize the
functions of the Authority;

i) Supervise administrative operations, including disbursement of any fund of the Authority,
subject to the usual accounting and auditing procedures, and submit reports thereon;

=

Execute and administer the policies and measures approved by the Board;

1) Appoint all employees of the Authority, and remove, dismiss, or otherwise discipline for
cause, such employees in accordance with the standard guidelines for recruitment,
employment, and discipline under civil service law, rules, and regulations;

m) Represent the Authority in all dealings with other offices, agencies, and instrumentalities
of the government and with all persons and entities, public or private;


n) Sign agreements and/or contracts, on behalf of the Authority and upon the Board's
approval, including those for expert and consultant services and other reports of
accountabilities emanating from the Authority, except when authority to sign such
agreements, contracts, or reports is vested in a specific government entity; and

°)

Perform such other functions that the Board may direct to carry out the provisions of this
Act or which are necessary or incidental to his/her office.

Sec. 12. Organizational Structure. - The Administrator shall determine the
organizational structure, staffing pattern, and pay scales of the Authority subject to existing civil
service and compensation laws. Subject to the approval of the Board, the Administrator may
reorganize the Authority and may create or abolish divisions, units, or branches therein as the
exigencies of the affairs of the Authority may require.

Sec. 13. Merit System. — All officials and employees of the Authority shall be selected
and appointed on the basis of merit and fitness in accordance with civil service law, rules, and
regulations. The recruitment, transfer, promotion, and dismissal of all its personnel, including
temporary workers, shall be governed by a merit system that will be established by the Authority
in compliance with existing laws, rules, and regulations.

Sec. 14. Appropriations. - Such amounts necessary to finance the initial implementation
of this Act shall be sourced from the unprogrammed funds in the current General Appropriations
‘Act (GAA). Thereafter, such amounts necessary for its continued implementation shall be
included in the annual GAA.

Sec. 15. Implementing Rules and Regulations. — The Authority, subject to the approval
of the Board and in consultation with other stakeholders shall, within sixty (60) days from the
date of effectivity of this Act, promulgate and publish the rules and regulations for the effective
and faithful implementation of this Act: Provided, That the failure of the promulgation of the
said rules and regulations shall not prevent the implementation of this Act upon its effectivity.

Sec. 16, Separability Clause. - If any portion or provision of this Act is subsequently
declared invalid or unconstitutional, other provisions hereof which are not affected thereby shall
remain in full force and effect.

See. 17. Repealing Clause. - All other laws, acts, presidential decrees, executive orders,
presidential proclamations, issuances, rules and regulations, or parts thereof which are contrary
to or inconsistent with any of the provisions of this Act are hereby repealed, amended, or
modified accordingly.

Sec. 18. Effectivity. ~ This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in at least two (2) newspapers of general circulation

Approved,