FOURTEENTH CONGRESS OF THE
)
REPUBLIC OF THE PHILIPPINES
)
Third Regular Session
SENATE
S. B. No. ~H21
'}
Introduced by Senator Loren Legarda
EXPLANATORY NOTE
Article XII, Section 1 of the Philippine Constitution states that:
"The goals of the national economy are a more equitable distribution of
opportunities, income, and wealth; a sustained increase in the amount of
goods and services produced by the nation for the benefit of the people;
and an expanding productivity as the key to raising the quality of life for
all, especially the underprivileged."
Mindanao, located in the southernmost region of the Philippines, is the second
largest island in the country. It is very rich in human and natural resources. It boasts of
a versatile, adaptive and English-speaking work force. Mindanao also accounts for
more than 40% of the country's food requirements and over 30% of the national
agricultural output. It grows most of the Philippines' major crops as its rich soil and
evenly 4istributed tropical climate makes it ideal for year-round production. It is
likewise endowed with rich minerals
Its strategic location and characteristics have made it an emerging destination for
tourists and investors alike, especially for key markets in the Brunei-Indonesia-
Malaysia-Philippines-East ASEAN Growth Area (BIMP-EGEA), Singapore, India and
China.
Despite all this, 6 out of the 10 poorest Philippine provinces and the bottom 5
provinces in terms of the Human Development Index are in Mindanao. These problems,
along with Mindanao's unique socio-economic and peace issues call for an agency that
goes beyond a regional paradigm to spearhead and integrate peace and development
efforts at a Mindanao-wide perspective. While the Mindanao Economic Development
Council (MEDCo) has been doing this for the past 16 years, there is a need to strengthen
it and make it more permanent through the creation of the Mindanao Economic
Development Authority (MEDA), allowing for the prioritization of this development
agenda.
In view of the foregoing, the approval of this bill is earnestly sought.
~~
~
LOREN-I:EGARDA


SENATE
S. B. No.3421
FOURTEENTH CONGRESS OF THE
REPUBLIC OF THE PHILIPPINES
Third Regular Session
)
)
j,3L
. '"1
'
'
,
,
Introduced by Senator Loren Legarda
AN ACT
CREATING THE MINDANAO ECONOMIC DEVELOPMENT AUTHORITY
(MEDA), DEFINING ITS POWERS AND FUNCtIONS, AND PROVIDING FUNDS
THEREFOR, AND FOR OTHER PURPOSES
Be if 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 "Mindanao Economic
Development Authority (MEDA) Act of 2009."
SEC. 2. Declaration of Policy. -It is hereby declared the policy of the State to
accelerate the socio-economic growth and development of Mindanao, by encouraging
and increasing trade, tourism and investments, encouraging private enterprise, and
advancing efforts towards peace and development. Towards this end, an effective
institutional mechanism shall be established to address the need for a coordinative and
integrative approach for the formulation and implementation of various Mindanao-
wide, Mindanao-specific interregional development plans, programs and projects. The
government shall furthermore undertake efforts to promote the active participation of
Mindanao and Palawan in the Brunei Darussalam-Indonesia-Malaysia-Philippines-East
ASEAN Growth Area (BIMP- EAGA).
SEC. 3. Creation of the Mindanao Economic Development Authority. -The
Mindanao Economic Development Authority, hereinafter referred to as the Authority,
is hereby created, which shall promote, coordinate, and facilitate the active and
extensive participation of all sectors to effect the socio-economic development of
1


Mindanao. It shall also act as an implementing agency for
Mindanao-specific
interregional and Mindanao-wide programs and projects, whenever necessary.
SEC. 4. Coverage. -The Authority shall cover all the provinces and cities of
Regions IX, X, XI, XII, Caraga and the Autonomous Region in Muslim Mindanao
(ARMM).
SEC. 5. Principal Office and Term. -The Authority shall have its main office at
Davao City. It may establish area management offices (AMOS) as it may deem
necessary to achieve the objectives of this Act. The Authority shall have a term of fifty
(50) years from the effectivity of this Act, renewable for the same period unless
otherwise provided by law.
SEC. 6. Powers and Functions of MEDA.· -In the exercise of those activities
which are Mindanao-wide and!or Mindanao-specific in character, the Authority shall
have the following powers and functions:
(a)
Formulate an integrated development framework for Mindanao that is
consistent with the peace initiatives of the National Government;
(b)
Integrate,
prioritize, and
program Mindanao-wide, interregional
and
region- specific programs, activities and projects with Mindanao-wide
impact;
(c)
Advocate to the constituents of Mindanao, their elected representatives in
Congress, and the National Government, national policies that will foster
the integrated and balanced development of Mindanao;
(d)
Promote and facilitate investments in ~ny field which would enhance the
socio- economic development of Mindanao and uplift the living standards
of the people and their socio-political activities in .close coordination with
agencies primarily mandated to undertake such function;
2


(e)
Explore sources for financing priority Mindanao-wide and/ or Mindanao-
specific interregional programs, projects and activities;
(f)
Coordinate and facilitate the extension of necessary planning, management,
and
technical
assistance
to
prospective
and
existing
investors,
complementary and in support of agencies primarily mandated to execute
such functions;
(g)
Establish a comprehensive and integrated databases on Mindanao and
BIMP-EAGA necessary for planning and decision-making;
(h)
Monitor, evaluate and formulate recommendations on the implementation
of Mindanao-wide and/or Mindanao-.specific inter-regional development
programs, activities and projects;
(i)
Act
as
the
implementing
agency,
whenever
necessary,
for
the
accomplishment of Mindanao-specific interregional or Mindanao-wide
programs and projects, including Of£ic;ial Development Assistance (ODA)
projects, subject to such limitations prescribed by existing laws, rules, and
regulations;
0)
Provide strategic direction for Mindanao;
(k)
Oversee mega infrastructure programs and projects with Mindanao-wide
impact such as the Mindanao Super Region Program;
(1)
Establish appropriate mechanisms to ensure the timely implementation of
Mindanao-wide and Mindanao-specific interregional projects, whenever
necessary, including, but not limited to public-private partnership;
(m) Review
and
recommend
for
approval
by
the
National
Economic
Development
Authority
(NEDA)
Board
such
Mindanao-wide
and
Mindanao-specific inter-regional programs, projects, and plans by the
3


national government and donor agencies subject to existing laws, rules and
regulations;
(n)
Act as the official and permanent Philippine Coordinating Office for BIMP-
EAGA (PCOBE) and as lead agency of the government in coordinating the
formulation and implementation of policies and programs and monitoring
of all activities related thereto;
(0)
Represent and strengthen the participation of the Philippine focus areas for
BIMP- EAGA which are Mindanao and Palawan;
(p)
Closely coordinate with the private sector in all policy deliberations
concerning BIMP-EAGA;
(q)
Act as a data bank for BIMP-EAGA and other related data by collecting,
consolidating and processing data and analyzing the resulting information
and thereafter disseminating the information gathered to various groups;
(r)
Initiate
and
coordinate
the
establishment
of
BIMP-EAGA
desks
in
concerned
national
agencies,
local
government
units
and
private
enterprises;
(s)
Undertake advocacy for the adoption!approval of new policies or policy
changes and the promotion of initiatives for the growth of the BIMP-EAGA;
(t)
Formulate and develop new plans and!or programs for the Philippine
participation in the BIMP-EAGA based on the consensus of the BIMP-
EAGA Clusters and Working Groups, and! or Heads of State; Signing
Ministers and Senior Officials;
(u)
Initiate and facilitate sourcing of technical and other forms of assistance to
BIMP-EAGA projects initiatives;
(v)
Monitor developments in the BIMP-EAGA and follow through agreements
entered into by the Philippine parties;
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(w) Ensure efficient and effective technical and administrative support services
for the Philippines' BIMP-EAGA operations and coordinate budgetary
requirements for this purpose;
(x)
Engage or invest on or enter into joint venture with Filipino and foreign
investors in such Mindanao-wide and/ or interregional projects as it may
deem proper and necessary or contributory to the economic development of
Mindanao;
(y)
Receive and administer donations, contributions, grants, bequest or gifts in
cash or in kind from foreign governments, international agencies, private
entities, and other sources, including ODA agencies, for purposes that
would contribute to the development of Mindanao, subject to existing laws,
rules and regulations;
(z)
To sue and be sued, enter into contracts, acquire, purchase, hold, lease,
transfer, dispose of property of any kind or nature necessary to carry out
the purposes of this Act;
(aa) Discharge other functions which may be deemed necessary or as may be
provided by law. The Authority, through the MEDA Chairperson, shall
submit to the President and both Houses of Congress annual reports on its
accomplishments and activities.
SEC. 7. Chairperson. -The MEDA Chairperson, hereinafter referred to as the
Chairperson, shall be appointed by the President of the Philippines with a cabinet rank
and shall act as the head of office. He/she shall serve a term of six (6) years from the
date of his appointment unless removed for cause. He/she shall also be the Philippine
Senior Official for BIMP-EAGA. He/she shall likewise be a member of the NEDA
Board.
The Chairperson shall have the following duties and functions:
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(a)
Call and preside at the meetings of the MEDA Advisory Board and see to it
that the policies, programs, and rules and regulations developed and
promulgated by it are implemented properly;
(b)
Call on development players in the formulation and implementation of a
comprehensive and integrated development plan for Mindanao, investment
programs
including
the
preparation
of
a
system
of
investment
programming priorities, annual reports and other pertinent documents
approved by the MEDA;
(c)
Identify solutions to key issues and c:;oncerns taking into account-related
risks, affected parties and impact, in coordination with the Board and key
stakeholders, whenever necessary;
(d)
Advocate the Authority's work for Mindanao among the various concerned
sectors and stakeholders;
(e)
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:
(f)
Supervise the monitoring and timely implementation of Mindanao-wide
and!or Mindanao-specific inter-regional programs, projects and activities;
(g)
Endorse to the MEDA Advisory Board all policy recommendations, plans,
programs, and projects for approval;
(h)
Represent the MEDA Advisory Board in regular and Special Cabinet
Meetings;
(i)
Convene the BIMP-EAGA Advisory Board to discuss issues and concerns,
and recommend policies and programs to ensure the widest participation of
Mindanao and Palawan in BIMP-EAGA;
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G)
Accept, in behalf of the MEDA, donations, contributions, grants and
bequests or gifts, in cash or in kind, from members, foreign governments,
international offices, private entities or any individual for purposes that will
realize the functions of the Authority;
(k)
Supervise administrative operations inCluding disbursement of any fund of
the MEDA subject to usual accounting and auditing procedures, and submit
reports thereon;
(1)
Execute and administer the policies and measures approved by the MEDA
Advisory Board;
(m) 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 the rules and
regulations of the Civil Service Commission;
(n)
Represent the Authority in all dealings with other offices, agencies, and
instrumentalities of the Government' and with all persons and entities,
public or private:
(0)
Sign agreements and/or contracts in behalf of the Authority, including
those of accountabilities for expert and consultant services and other reports
emanating from the Authority;
(p)
Perform such other functions that the MEDA Advisory Board may direct to
carry out the provisions of this Act.
SEC. 8. Executive Director. -An Executive Director shall be appointed by the
President of the Philippines upon recommendation by the Chairperson. He/she shall
possess the requisite eligibilities for third (3rd) level career service position. He/she
shall assist the Chairperson in carrying out the functions of Authority and shall likewise
serve as the Secretary of the MEDA Advisory Board.
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SEC.9. MEDA Advisory Board. -The Authority's overall directions and thrusts
shall be provided and approved, unless provided otherwise in this Act, by the MEDA
Advisory Board, hereinafter referred to as the Board. It shall be composed of the
following members:
a) The MEDA Chairperson;
b) The Chairpersons of the Regional Development Councils (RDCs) of Regions
IX, X, XI, XII and XIII, and the Regional Economic Development and
Planning Board (REDPB) of ARMM;
c) The Chairperson of the House Committee on Mindanao Affairs;
d) The Chairperson of the House Committee on BIMP-EAGA Affairs;
e) The Vice President for Mindanao of the Union of Local Authorities of the
Philippines (ULAP);
f)
The President of the Mindanao Confederation of Governors', City Mayors'
and Municipal Mayors' League Presidents;
g) The Administrator of the Southern P.hilippines Development Authority
(SPDA); and,
h) The three (3) representatives from the Private Sector to be appointed by the
President, upon the recommendation of the Chairperson and Board members,
comprising of one representative each from the:
i. Mindanao Business Sector
ii. Mindanao Academe Sector
iii. Mindanao Non-Government Organization (NGO) Sector
Members of the Board shall receive a per diem of not more than Five Thousand
Pesos (P5,OOO) for every board meeting: Provided, however, that the per diem
collected per month does not exceed the equivalent of four (4) meetings. Provided,
further, that the amount of per diem for every board meeting may be increased by the
8


President but such amount shall not be increased within two (2) years after its last
increase.
The Board shall have the following functions:
a)
Provide direction and guidance for the Authority's work and thrusts for
Mindanao;
b)
Ensure that the goals and policies of the Authority are consistent with the
overall national development goals and objectives;
c)
Ensure that the programs of the Authority are consistent with regional and
local development plans, program and projects, and vice versa for purposes
of harmonization;
d)
Explore sources for financing of priority Mindanao-wide and/ or Mindanao-
specific inter-regional plans, programs" projects and activities;
e)
Create committees/task forces as may be deemed necessary in the
accomplishments of its duties and functions;
f)
Determine
schedules,
establish
voting
procedures,
criteria
for
the
constitution of a quorum, and other rules and regulations in the conduct of
Board meetings: and
g)
Perform such other functions as may be necessary to carry out the purposes
of this Act.
SEC. 10. Executive Committee. -The Board shall constitute an Executive
Committee, hereinafter referred to as the Execom, from among its membership to act for
and on its behalf when the Board is not in session;on urgent matters as may be deemed
necessary by the Chairperson. To ensure inter-regional representation and participation,
the following shall comprise the Execom:
(a) The MEDA Chairperson
(b) The Chairpersons of the RDCs and REDPB
9


(c) The Representative from the Mindanao Business Sector
(d) The Representative from the Mindanao Non-Government Organization
(NGO) Sector
The Executive Director, as the Board Secretary, shall provide technical assistance
to the Execom.
SEC. 11. BIMP-EAGA Advisory Board. -There is hereby constituted a BIMP- EAGA
Advisory Board to be composed of the following:
(a) The MEDA Chairperson as Head;
(b) Chairpersons of the RDCs of Regions IX, X, XI, XI1 and XIII, and REDPB of
ARMM;
(c) The City Mayor of Puerto Princesa;
(d) The Provincial Governor of Palawan; and,
(e) Two Philippine Country Representatives to the BIMP-EAGA Business
Council (BEBC).
The BIMP-EAGA Board shall convene, from time to time, to discuss issues and
recommend policies and programs to ensure the widest participation of Mindanao and
Palawan in the activities of BIMP-EAGA. It shall make recommendations to the
Chairperson, being the Head of the PCOBE. The PCOBE, in consultation with the BIMP-
EAGA Board, will draw up its own procedures for making recommendations, finalizing
decisions and overseeing implementation of BIMP-EAGA activities in Mindanao and
Palawan.
SEC. 12. Organizational Structure. -The Chairperson shall determine the
organizational structure, staffing pattern, and pay scales of the Authority subject to
existing civil service and compensation laws. The Chairperson 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.
10


SEC 13. Transitory Provisions. -The Mindanao Economic Development Council
(MEDCo), created under Executive Order 512, and Executive Order 244, as amended, is
hereby abolished.
The unexpended appropriations of the abovementioned agency are hereby
transferred to the MEDA including its existing records, properties, equipment, facilities
and other assets.
The MEDA shall absorb the existing plantilla positions and incumbent staff of
the MEDCo who shall continue to perform their respective duties and responsibilities
and receive the corresponding salaries and benefits, in the fulfilment of the powers and
functions of the MEDA.
SEC
14.
Appropriations.
-The
amount necessary
to
finance
the
initial
implementation of this Act shall be charged against the current year's appropriations of
MEDCo. Thereafter, the current budget shall be increased by 100%, which amount shall
be included in the Annual General Appropriations Act (GAA) for its continued
implementation. The current appropriations of MEDCo shall be transferred to the
MEDA to commence its activities.
SEC 15. Repealing Clause. -All laws, decrees, executive orders, rules and
regulations, or parts thereof inconsistent with or contrary to the provisions of this Act
are hereby repealed or modified accordingly.
SEC. 16. 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 3 continue to remain in full force and effect.
SEC. 17. Effectivity. -This Act shall take effect fifteen (15) days following
completion of its publication in at least two (2) newspapers of general circulation.
.
Approved,
11