Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

11

HOUSE BILL NO.

Introduced by Rep. Raul V. Del Mar

EXPLANATORY NOTE

WHEREAS, Article X, Section 13 of the 1987 Constitution states that “local
govemment units may group themselves, consolidate or coordinate their efforts,
services, and resources for purposes commonly beneficial to them in accordance with
law.”

WHEREAS, Article X, Section 14 of the 1987 Constitution states that ‘the
President shall provide for regional development councils or other similar bodies
composed of local government officials, regional heads of departments and other
offices, and representatives from non-government organizations within the region for
purposes of administrative decentralization to strengthen the autonomy of units therein
and to accelerate the economic and social development of the units in the region.”

WHEREAS, consistent with these mandates, inter-local cooperation, public-
private sector collaboration, and other cooperative arrangements with and among local
government units, national government agencies and other government offices,
private and business sector, and people's, non-government and civil society
organizations are essential in order to coordinate efforts, services, and resources for
common beneficial purposes.

WHEREAS, founded on the need to promote and develop shared assets and
address trans-boundary issues and challenges attendant to a growing and rapidly
urbanizing metropolis, public and private sector leaders and stakeholders of Cebu
subscribe to the principles and premises of Primus Inter Pares (First Among Equals),
inter-local and city region coordination, public-private sector partnership and
collaboration, and citizen and civil society engagement for metropolitan development.

WHEREAS, anchored on the big picture, holistic, and long-term perspective of
development, leaders and stakeholders emphasized the importance of evidence-
based and expertise-supported planning, policy and decision-making.


WHEREAS, stakeholders in Metropolitan Cebu and surrounding areas in the
Province of Cebu envision and aspire for a “Wholesome, Advanced, Vibrant,
Equitable, and Sustainable (W.A.V.E.S.) Cebu in 2050 thru alignment of public and
private sector efforts with the development strategy of competitiveness, liveability,
mobility, and metropolitan management and the implementation of a roadmap for
sustainable urban development.

WHEREAS, building and capitalizing on the gains of collaboration and
engagement and in the pursuit of the Mega Cebu 2050 Vision, there is a need to
establish the Mega Cebu Development Authority (MCDA) to initiate efforts, provide
services, and coordinate policies, plans, programs, and projects with concerned local
government units (LGUs), national government agencies (NGAs), government owned
and controlled corporations (GOCCs), private sector and civil society, and constituent
communities with regard to the development and promotion of shared assets and
resources, delivery of common services and functions, all trans-boundary in nature, to
achieve integrated, inclusive, and sustained development.

PURSUANT THERETO, stakeholders of highly urbanized cities of Cebu,
Mandaue and Lapu-Lapu as well as the component cities of Danao, Talisay, Naga and
Carcar, and the municipalities of Consolacion, Liloan, Compostela, Cordova,
Minglanilla and San Femando comprising the Metropolitan Cebu area, and
surrounding cities and town in the Province of Cebu, civil society and private sector
organizations aspire for a permanent, appropriate, and responsive institutional
platform that commits to and is reflective of the principles and framework of inter-local
and city-region collaboration, public-private sector partnership, citizen and civil society
engagement, and evidence-based and expert-assisted planning and development.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

11
HOUSE BILLNO._____

Introduced by Rep. Raul V. Del Mar

AN ACT
CREATING THE MEGA CEBU DEVELOPMENT AUTHORITY, PRESCRIBING
ITS FUNCTIONS AND DUTIES, AND PROVIDING FUNDS THEREFOR

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

SECTION 1. Short Title.- This Act shall be known as the "Mega Cebu
Development Authority Act.”

SEC. 2. Declaration of Policies and Principles.- Its hereby the declared
policy of the State to promote and accelerate the sustainable development and
balanced growth of the Province of Cebu and the highly urbanized cities of Cebu,
Mandaue, and Lapu-Lapu, within the context of national policies for economic,
social, and environmental well-being.

It is likewise hereby declared to be the policy of the State to treat
Metropolitan Cebu and the Province of Cebu as a special development and
administrative area where certain policies, programs, and services affecting or
involving the Metropolitan Cebu area and the Province of Cebu, on a metro-wide
or multi-local government unit (LGU) level, are more efficiently and effectively
planned, supervised, implemented, and coordinated by a development authority as
created herein, without prejudice to the autonomy of the affected LGUs.

Pursuant to these national policies, the following aspirations and principles
are hereby declared:


(a) To recognize a more institutionalized approach to metropolitan or multi-
LGU integrated development planning that is expertise-supported and
evidence-based, participatory, responsible, accountable, and necessary
for all or part of its community;

(b) To foster cooperative relations between and among the metropolitan
area and surrounding cities and towns in order to efficiently and
effectively sustain efforts and meet the needs, promote and develop
shared assets and resources, and provide services that transcend
geopolitical municipal and city boundaries without prejudice to the
autonomy of the affected LGUs;

(c) To ensure active participation by the private, business, and civil society
sectors in the governance, planning, implementation, monitoring and
evaluation of plans, policies, standards, programs, projects, and
services; and,

(d) To implement a national government-approved Metropolitan Cebu
Roadmap and other subsequent and related metro-wide or multi-LGU
roadmaps and plans that ensure long-term, sustainable, and continuing
directions, priorities, and programs for and by the constituent local and
national government agencies and units, and private, business, and civil
society sectors.

SEC. 3. Definition of Terms.- As used in this Act:

(a) Business Sector refers to for-profit and commercial enterprises or
businesses and business associations and coalitions; cross-industry,
multi-issue groups; cross-industry, issue-specific initiatives; industry-
focused initiative; including corporate philanthropic foundations.

(b) Private Sector refers to entities of the economy that are owned by private
citizens and not by the State, including those enterprises created either
for profit or non-profit and households.

(©) Metropolitan Cebu Area or Metro Cebu refers to the highly urbanized
cities of Cebu, Mandaue, and Lapu-Lapu, the cities of Danao, Talisay,
Naga, and Carcar, and the municipalities of Consolacion, Liloan,
Compostela, Cordova, Minglanilla, and San Fernando, all in the Province
of Cebu


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(4) Mega Cebu refers to the platform for inter-local cooperation, public-
private sector partnership, and  local-regional-national-integration
promoting the “big picture perspective," i.e., long term, multi-LGU, metro-
wide, and advancing collaborative planning and action on shared assets
and common trans-boundary concems towards a sustainable, smart,
and inclusive Cebu. It is anchored on and considers the island-wide or
larger provincial area or whole of Cebu, and regional area or Visayas
context, while starting out its on-ground engagement and intervention at
the Metropolitan Cebu level. Conceptually, thus, Mega Cebu is larger
than Metro Cebu and considers the population of the entire ‘province’ or
‘islands’ of Cebu in the year 2050, which is projected to reach more than
Ten (10) Million, the technical definition of a mega population being Ten
(10) million or more.

(e) Metropolitan Cebu Roadmap refers to the ‘Roadmap Study for
Sustainable Urban Development in Metro Cebu’ that was commissioned
and subsequently adopted by the Metro Cebu Development and
Coordinating Board (MCDCB), was funded by the Government of Japan,
and completed by a team from the Japan Intemational Cooperation
Agency (JICA).

SEC. 4. Creation of the Mega Cebu Development Authority.- There is
hereby created a special body to be known as the Mega Cebu Development
Authority, hereinafter referred to as “MCDA” or “Authority’, which shall be
organized within thirty (30) days after the approval of this Act, to coordinate and
promote socio-economic growth and sustainable development within Metro Cebu
and the Province of Cebu.

The MCDA shall execute the powers and functions herein vested which
shall, however, in no way diminish the autonomy of the LGUs in the Metropolitan
Cebu area and the Province of Cebu concerning purely local matters within the
framework and subject to the mandate and limitations of the Philippine
Constitution, pertinent provisions of the Local Government Code, and Section 5
hereof.

SEC. 5. Constitution and Jurisdiction of the Mega Cebu Development
Authority.- For the purposes of this Act, the MCDA shall comprise the core
metropolitan area embracing the highly urbanized cities of Cebu, Mandaue, and

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Lapu-Lapu, the cities of Danao, Talisay, Naga and Carcar, as well as the
municipalities of Consolacion, Liloan, Compostela, Cordova, Minglanilla, and San
Fernando, and such other cities and municipalities as shall be included from time
to time under this Section or conferred by this Act, determined in accordance with
the procedures and requirements to be outlined in its implementing rules and
regulations.

SEC. 6. Functions of the Mega Cebu Development Authority.- Subject
to the approval of the LGUs concerned, the Authority shall primarily exercise the
following functions and services:

(a) Formulate, coordinate, regulate and monitor the short, medium, and
long-term plans, policies, and programs for the sustainable development
and integration of the Metropolitan Cebu area and the Province of Cebu,
including investment programs for the delivery of multi-LGU or
Metropolitan Cebu and the Province of Cebu services, land use, spatial,
and physical development using strong, coherent governing values and
shared vision, with focus on integrated systems for urban development;

(b) Render services that have multi-LGU or metropolitan wide coverage and
impact, transcending local geopolitical boundaries or entailing
substantial expenditures including, but not limited to: integrated and
infrastructure development and planning; transport and_ traffic
management; solid waste disposal and management; water, septage,
sewerage and storm water management; and disaster risk reduction and
management;

(©) Ensure that plans, policies, programs and services are pursued for the
purpose of realizing the Mega Cebu 2050 Vision of a Wholesome,
Advanced, Vibrant, Equitable, and Sustainable (W.A.V.E.S.) Cebu,
executing the Mega Cebu development strategy of competitiveness,
livability, mobility, and metropolitan management and implementing the
Metropolitan Cebu Roadmap, which are hereby adopted, and other
‘subsequent and related roadmaps for Metro Cebu and the Province of
Cebu;

(d) Ensure continuing research, evaluation, and monitoring to enhance
plans, policies, programs, services, and efforts to anticipate or respond


to the dynamic and changing realities and needs of metropolitan
development; and

(€) Perform other related functions required to achieve the Mega Cebu 2050
Vision and the objectives of the MCDA, including the undertaking of
delivery of services to the LGUs, when deemed necessary and subject
to prior coordination and consent of the LGU concerned

SEC. 7. Scope of Services of the Mega Cebu Development Authority.-

In coordination with appropriate government units and agencies and relevant
private sector organizations, the scope of the services of the MCDA shall include:

(a) Spatial and integrated planning and infrastructure planning and
development, which includes the formulation, adoption, and
implementation of plans, policies, programs, projects, standards, rules,
and regulations to rationalize and optimize land use; conserve and
protect natural resources, provide direction to urban growth and
expansion within the context of smart, connected, compact and
sustainable growth; and the provision of necessary services;

(b) Transport and traffic management, which includes the formulation,
coordination, and monitoring of policies, standards, plans, programs and
projects, including its implementation and its integration with land use,
rationalization of the existing transport operations, infrastructure
requirements, and use of thoroughfares; promotion of safe and
convenient movement of persons and goods; provision for and
maintenance of mass transport system, road infrastructure, and
institution of a people-centered network of mobility, — including
pedestrianization and non-motorized forms of transport, as well as a
system to regulate road users; and the administration and
implementation of traffic enforcement operations, traffic engineering
services, and traffic education programs, including the institution of a
single ticketing system;

(c) Solid waste management, which includes the formulation and
implementation of policies, standards, plans, programs, and projects for
proper and sanitary waste disposal; the establishment and operation of
sanitary landfill and related facilities; the establishment and operation of
altemative waste management facilities; and the implementation of

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appropriate programs, projects, and services intended to manage,
dispose, reduce, reuse, and recycle solid waste;

(d) Water, septage and sewerage, and storm water management, which

includes the formulation and implementation of policies, standards,
plans, programs, and projects for water supply and water resources
management; integrated storm water management, drainage and flood
control; and septage and sewerage management system; and

(e) Disaster risk reduction and management, which includes the formulation

and implementation of plans, programs, projects, policies, standards,
and procedures to achieve public safety, especially preparedness for
preventive or rescue operations during times of calamities and disasters;
management of information; coordination and mobilization of resources;
and recovery, rehabilitation, and relief operations.

SEC. 8. Composition of the Mega Cebu Development Board (MCDB).
The governing and policy setting powers of the MCDA shall be vested in and
exercised by the Mega Cebu Development Board, hereinafter referred to as MCDB

or Board,

which shall be composed of fifteen (15) ex-officio members and six (6)

regular members, as follows:

(a)
(b)
(©)
(a)
(e)

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Governor of the Province of Cebu, ex-officio;

Mayors of the seven (7) cities of Metro Cebu, ex-officio;

Mayors of the six (6) municipalities of Metro Cebu, ex-officio;
President of the League of Municipalities of Cebu, ex-officio;

Five (5) regular members from the private sector: three (3) from the
business sector and two (2) from the general public; and

The General Manager of the Authority, to be appointed by majority vote
of the ex-officio members and regular members of the Board, who shall
be the sixth private sector representative in the Board, and shall serve
as the Chief Operating Officer of the MCDA.

The officers of the MCDB shall consist of one (1) Chairperson; one (1) co-
Chairperson representing the public sector and one (1) Co-Chairperson

representing the private sector. The Chairperson and the Co-Chairperson
representing the public sector shall be elected by majority vote of the Governor of
the Province of Cebu and the seven (7) mayors of the cities of Metro Cebu from


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‘among themselves. The co-chairperson representing the private sector shall be
elected by the five (5) regular members representing the private sector.

All regular members of the MCDB including the General Manager must have
been residents of the cities of Cebu or Province of Cebu for at least three (3) years
preceding their appointment. They shall serve for a term of one (1) year until their
re-election or successors shall have been elected, unless sooner removed for
cause. In case of removal of a member for cause, the replacement shall only serve
the unexpired portion of the term.

Each member, ex officio or regular, shall have equal voting rights and shall
participate during the deliberations of the regular and special meetings of the
MCDB: Provided, That eleven (11) members of the MCDB shall constitute a
quorum for the conduct of regular and special meetings: Provided, further, That the
implementation of plans, projects, and activities affecting a particular LGU must
have the affirmative vote of the Mayor of the concemed LGU.

SEC. 9. Functions of the Mega Cebu Development Board.- Subject to
the approval of the LGUs concerned, the MCDB shall perform the following
functions and powers:

(a) Adopt and approve rules and regulations to govern the conduct of
business of the Board;

(b) Approve the multi-LGU or metropolitan-wide short, medium, and long
term development plans, policies, and programs, and such projects
developed and packaged by its Research, Program, and
Organizational Development- Technical, Operations, and Planning
Office (RPOD-TOPO), the various committees, and respective project
management offices;

(c) Promulgate policies and standards for metropolitan-wide application
governing the delivery of services, prescription and collection of
service and regulatory fees, and the imposition and collection of fines
and penalties, including the assessment and collection of
contributions, fees, and charges for the operation of the MCDA or use
Of its facilities or services, as may be deemed necessary and proper;

(d) Approve the organizational structure of the Authority and, as endorsed
by the General Manager, confirm or define the duties and


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responsibilities of all officers and employees, including the
appointment of key officials of the Authority, and fix the compensation
and benefits of officers and personnel, including the granting of
incentives;

Create a Conflict Management Committee (CMC) to address any
controversy primarily between and among members from the LGUs,
national government agencies, private and business sectors, and civil
society. The CMC shall enjoin parties to settle the dispute through
dialogue. If a settlement is not reached, any unresolved controversy
shall be settled thru mediation and arbitration by the CMC. Any of the
parties may appeal the CMC resolution to the Board, whose decision
shall be final and executory.

Appoint or remove the General Manager, Assistant General Managers,
or the heads of the different offices, in accordance with law;
Incorporate and endorse the plans, policies, programs, and projects
formulated by LGUs and other public sector agencies, including those
areas and services which were not included in the Metropolitan Cebu
Roadmap, after proper consultation and coordination;

Submit to the National Economic Development Authority (NEDA)
Board its plans, programs, projects, and activities to enable adoption,
endorsement, approval, integration, or progressive roll out of
integrated and system-wide plans, programs, projects, and spatial
urban and rural design decisions;

Form, establish, organize, and maintain offices or service units to
provide multi-LGU or metropolitan wide services, in accordance with
relevant Philippine laws;

Enter into contract and own properties; receive funding, payments,
grants, contributions, and donations; sue and be sued in order to carry
ut its duties and functions as provided for in this Act;

Establish a conflict management committee to address conflicts to
which all entities or individuals will resort to, at the first instance;
Perform any and alll related acts to carry out its mandate and perform
its objectives, including the undertaking of delivery of services to the
LGU concemed;


evaunewne

(m) Adopt, alter, and use a corporate seal; and,

(n)

Carry out the purposes and provisions of this Charter.

SEC. 10. Creation of the Office of the MCDA General Manager.- There
is hereby created the Office of the MCDA General Manager, to be headed by the
General Manager and vested with executive powers to manage the affairs and
further the purposes of the MCDA.

SEC. 11. Functions of the General Manager.- The General Manager of
the MCDA shall have the following functions

(a)

(b)

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(@)

@)

Formulate, prescribe, amend, and endorse rules and regulations to
govern the conduct of the Office of the General Manager;

Endorse to the MCDB for approval, the creation and organization of
the Institutional Development Office (IDO), Public Service Offices
(PSOs), and other offices as may be necessary to fulfil the mandate of
the Authority;

Identify, select, appoint, suspend, remove, or discipline the officers and
personnel below the positions of Assistant General Managers and the
managers or heads of offices or services, subject to approval by the
MCDB;

Indorse for approval of the Board, the compensation, benefits, and
incentives of key officials and other staff of the MCDA who will perform
the following: finance and administration, to include human resources
management, audit, legal, reputation and risk management, and
information technology (IT); research and knowledge management, to
include monitoring and evaluation, education, communications, and
stakeholder relations; planning, development, and technical support,
to include project development; and operations and services, to include
project management and service delivery;

Endorse to the MCDB the multi-LGU or metropolitan-wide short,
medium, and long-term development plans and programs which
includes the formulation and coordination of related activities in
Metropolitan Cebu;

Endorse the annual and supplemental budgets of the Authority to the
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(g) Perform such other acts and assume such other functions as may be
necessary to carry out the provisions of this Charter.

SEC. 12. Creation of Institutional Development Office.- There shall be
created an Institutional Development Office (IDO) in the Office of the General
Manager to provide support in the operations and implementation of the internal
programs and requirements of the MCDA. The IDO shall oversee the various
components, operations, and processes of MCDA such as: finance and
administration, to include human resources management, audit, legal, reputation
and risk management, and information technology (IT); research and knowledge
management, to include monitoring and evaluation, education, communications,
and stakeholder relations; planning, development, and technical support, to include
project development; and operations and services, to include project management
and service delivery.

The head of the IDO, as Assistant General Manager, shall report directly to
the General Manager.

SEC. 13. Creation of Public Service Offices.- There shall be created a
Public Service Office (PSO) for each of the five (5) initial focal areas of MCDA, as
follows: Integrated Development and Spatial Planning (DSP); Transport and
Traffic Management (TTM), Solid Waste Management (SWM); Water Supply
Management, including septage and sewerage, and storm water management,
(WSM); and Disaster Risk Reduction and Management (ORRM).

Each PSO shall be headed by an Assistant General Manager, who shall
report directly to the General Manager. National government agencies (NGAs),
GOCCs, LGUs and other organizations mandated to provide services in these focal
areas shall be invited to coordinate their programs and projects with the
appropriate PSO.

SEC. 14, Creation of the Research, Program, and Organizational
Development- Technical, Operations, and Planning Office.- There shall be
created a Research, Program and Organizational Development — Technical,
Operations, and Planning Office (RPOD-TOPO) which is necessary to deliver the
MCDA’s mandate, provide support and management of its operations. The RPOD-
TOPO shall serve as the coordinating and operations office and process facilitator

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for the Authority, providing finance and administration, research, knowledge
management and planning expertise and services; technical support, operations,
service delivery and project management as well as guidance to the Board, the
General Manager, and other offices or services; facilitate the organization,
integration, and complementation of the Authority's various functions, structures,
plans, programs, projects and services; and provide secretariat support to the
MCDB, other offices and services, and to keep a record and have custody of the
proceedings of all sessions of the MCDB or meetings of the PSOs.

The RPOD-TOPO shall be headed by an Assistant General Manager,
supported by appropriate supervisory and other officers of the MCDA. The
Assistant General Manager (AGM) for the RPOD-TOPO, appointed on the basis
of defined competence and qualities, shall:

(@) Assist in the administration of the MCDA and supervision of
subordinate personnel;

(b) Assist in the supervision of the operation of the various committees and
offices of the MCDA;
Assist in the preparation and review of plans and programs of the MCDA
for submission to and endorsement of the Executive Committee, and
approval by the Board; and

(d) Perform such other duties and functions as may be lawfully delegated

or assigned from time to time.

There shall be appointed managers for finance and administration; research
and knowledge management; planning, development, and technical support; and
operations and service delivery who shall be chosen based on academic

(©

qualifications, competence, and experience.

These departments shall be staffed by appropriately qualified personnel with
relevant academic backgrounds and work experiences consistent with the
purpose, functions, requirements, and scope of the Authority.

All employees of the MCDA shall be subject to periodic monitoring and
evaluation.

SEC. 15. Institutional Linkages.- The MCDA shall establish institutional
linkages and relations with appropriate government agencies and units and the

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private sector at the local, regional, national, and international levels conceming
matters of import and relevance to Mega Cebu or the Metropolitan Cebu area.

For this purpose and guided by rules and regulations, the MCDA shall carry
out its functions in consultation and close coordination with the LGUs, government
agencies, the private sector, and civil society organizations. To facilitate
coordination and alignment, LGUs, NGAs, GOCCs and other relevant
organizations shall submit their policies, plans and programs, and projects,
particularly relating to the initial five (5) focal areas outlined in Section 7 hereof,
that may affect or have an impact on the Mega Cebu or the Metropolitan Cebu
area

The MCDA shall submit its development plans and investment programs to
the National Economic and Development Authority (NEDA) for integration into the
Medium-Term Philippine Development Plan (MTPDP) and public investment
program.

In the implementation of MCDA's plans and programs utilizing local,
national, and other funds, which shall be undertaken either by the local govemment
unit, national government agency, or other public and private sector organizations
responsible for the delivery of such services, the MCDA may enter into contracts,
memoranda of agreement and other cooperative arrangements with these entities
for the delivery of the required services.

The MCDA shall also coordinate and interface with foreign assistance and
other agencies for the purpose of obtaining financing and technical support, and
securing contributions, grants and donations from various sources to support its
operations or undertake its programs and projects.

SEC. 16. Appropriations and Financing.- For the organizational and
operating expenses of the Authority, an initial fund of One Billion Pesos
(P1,000,000,000.00) shall be appropriated by the National Government.
Thereafter, the National Government shall allocate in the annual General
Appropriations Act the funds needed by the MCDA for personnel, capital
expenditures, maintenance and other operating expenses and for the continued
implementation of this Act

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The operations of the MCDA shall likewise be supported through financial
contributions and technical assistance from member LGUs, NGAs, and GOCCs
and the private sector, and other local and intemational organizations in the form
of grants, donations, contributions, payments, penallies, fees and charges.

The MCDA is likewise empowered to levy fines, and impose fees and
charges for various services rendered.

The MCDB shall undertake continuing negotiations among the member
LGUs and GOCCs to commit annual financial contributions for the operations of
the MCDA.

SEC. 17. Use of Income.- To carry out the purposes of this Act, the MCDA
is hereby authorized, in addition to its allocation from the annual General
Appropriations Act, revenues generated from various services rendered, and
annual contributions from LGUs, to retain and utilize its income: Provided, That
nothing herein shall be deemed to exempt the MCDA to the auditing requirements,
standards, and procedures of existing laws.

SEC. 18. Good Governance Clause.- The MCDA adheres to the principles
of good governance that ensures commitment to values and ethical conduct of its
business; transparency in transactions; an effective audit system; statutory and
legal compliance; adequate disclosures; and effective decision-making to achieve
its objectives.

SEC. 19. Implementing Rules and Regulations.- Within six (6) months
from the approval of this Act, the rules and regulations to carry out the provisions
of this Act shall be formulated and approved by the MCDA.

SEC. 20. Separability Clause.- \f any provision or part hereof is held invalid
or unconstitutional, the other provisions not otherwise affected shall remain in full
force and effect.

SEC. 21. Effectivity Clause.- This Act shall take effect fifteen (15) days
following completion of its publication in at least one (1) newspaper of general
circulation.

Approved,

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