Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session
8201

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 xJ.”" 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 utilzation of science and technology.”2

Data from the World Bank tell us that in 2019, around 50,975,903° Filipinos belonged
to the Philippines’ urban population (47.149%* of the country's total inhabitants). The country's
urban population has been steadily increasing over the past years.’ The United Nations
Projects that, in 2050, the Philippine population will be around 148.3 million.® By then, the UN
figures, 68% of the world population will be living in urban areas.’ 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.

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

‘Const. art. XIV, § 10.

2 Const. art. XIV, § 12.

id World Bank, Urban population - Philippines, available at
https://data.worldbank.org/indicator/SP.URB, TOTL 7end=20 198locations=PH&.start=1961.

* World Bank, Urban population (% of total population) - Philippines, available at
https://data.worldbank.org/indicator/SP.URB, TOTL.IN.ZS?end=20198locations=PH&start=1961

S See Macrotrends, Philippines. Urban Population 1960-2020, available at
https://www macrotrends.net/countries/PHLiphilippines/urban-population. The annual percentage
growth rate has been about 1.9% for the past few years.

* Alden Monzon, Business World Online, United Nations population report sees 169 million Filipinos by
2100, available at https:/wmw.bworidonline.com/content, php?section=Economyatitle=United-Nations-
population-report-sees-169-million-Filipinos-by-21 008id=112636 (31 July 2015),

7 Department of Economic and Social Affairs, United Nations, 68% of the world population projected to
lve in urban’ areas_—stby 2050, _~—s says’ ~=—sSUN, ~—available.~— at
https://www_un.org/development/desa/eninews/population/20 18-revision-of-world-urbanization-
prospects.html (16 May 2018).



safety concems 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
concems. 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
@ computing platform that allows the communication of such information among the various
city services. ‘Intelligent’ refers to the inclusion of complex analytics, modelling, optimization,
and visualization services to make better operational decisions [x x x]."°

This measure establishes a Council for Smart Cities, which is the overall policy-making
and implementing body of the proposed Act. Itis 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.

Certain schools of thought in economics consider the overalll state of technology as a
factor of production aside from land, labor, and capital.’ 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.

® 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.

® IESE Business School, University of Navarra, IESE Cities in Motion Index, available at
https://media iese.edu/research/pdts/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).
"© See Michael Parkin & Gerardo Esquivel, Macroeconomia 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
hhttps://doi.org/10.1007/978-4-431-65865-8_7 (1997).



The urgent passage of this bill is earnestly sought.

Rep. PABI JOHN F. GARCIA.
3rd District, Province of Cebu


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

8201

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 |
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:

(2) Application means a software program created and implemented
by a government agency or instrumentality that can be run on a mobile phone,


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 intemal 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;

(4) 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;

(ph) DILG means the Department of Interior and Local Government;

() DOE means the Department of Energy:

() DOLE means the Department of Labor and Employment;

(Kk) DOST means the Department of Science and Technology;

()  DOTrmeans 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) [CT means Information and Communications Technology;

(0) 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
Intemet. The Internet of Things involves the convergence of multiple
technologies, real-time analytics, machine leaning, commodity sensors, and
embedded systems;

(p) LGU means local government unit, particularly a city or
municipality;

(a) NEDA means the National Economic Development Authority;
(nr) 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;

(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:

() 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;

(i) Aggregates and analyzes gathered data;


(i) 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;

()  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 It
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;


(ce) Arepresentative from the PIEP;

() A representative from the Department of Computer Science,
University of the Philippines-Diliman;

(9) _ 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 4 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 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’. 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;
(i) 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) Acompetent civil service and private workforce;

(2) Anopen 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 acti
that could negatively affect privacy; and

(4) Be aware of contemporary best practices and
international standards concerning the same;

ities

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.

(x) 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:

() Existing government programs and services related to this
Act including available technical assistance, education, training,
analysis, research and development, and the like;

(i) 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 multifunctional 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 fulfilment of this Act, information
such as barriers to Smart City technology adoption; what research or analyses
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 fulfilment 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’, shalll 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 shalll 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 amount 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 II
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 shalll 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
Leu
6 | Schools Number of public or private schools per LGU
7 | Theaters Number of theaters per LGU
8 | Expenditure on leisure and| Expenditure on leisure and recreation per
recreation capita
9 | Expenditure on leisure and| Expenditure on leisure and recreation In
recreation 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

1 A 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| This variable measures how the government
Situations of Slavery 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 required to start a|Number of calendar days needed so a

business

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 | Percentage of people involved in total

entrepreneurial activity 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 | Estimated annual GDP growth

(‘GDP") Estimate
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

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

a4

Government buildings

Number of government and

premises in the city

buildings

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 ("COz") | CO2 emissions from the burning of fossil fuels
emissions and other processes; Measured in kilotons

43. | CO2 emission index C02 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 CO? 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 | This measures environmental health and

Index ecosystem vitality; Scale from 4 (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,  COz
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 | Index of time based on how many minutes it

to work 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 | Percentage of the population with at least
with access to sanitation | sufficient access to facilities for the disposal
facilities of excreta that can efficiently avoid the contact

of humans, animals, and insects with excreta

64 |Number of people _ per | Number of people per household; Occupancy
household by household is measured compared to the

average; This makes it possible to estimate if
a LGU has overoccupied or underoccupied
households

65. | High-tise 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.)

a privil
brand

leged place in the world, Maintai

Section 18. International Outreach. - LGUs that want to progress must secure
ining global impact involves improving the LGU’s

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 | Number of international fast food franchises
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|Number of passengers per airport in
airport 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| Number of international conferences and
meetings 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 | Number of such branded stores in the LGU
technology and/or consumer
electronics .and/or computer
software stores
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 shalll 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;

() Degree of technology and knowledge base available;


(k) Class or category of the city or municipality; and

(1) 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 shalll 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)

employees;
0)
()
(h)

Salaries, wages, emoluments, per diems, or overtime pay of

Construction, repair, or refurnishing of administrative offices;
Loan guarantee; and

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)
(b)
(c)
(a)
(e)
0)
(9)
(h)
(i)
@
(k)
0)

‘Open data and content;

Excellent User Interface and User Experience;
Ease of internal and external data exchange;
User safety and privacy;

Economical use of budget and resources;
Multilingual Capability and intelligibility;
Correctness;

Dependability;

Efficiency;

Adaptability;

Wide-compatibility; and

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, focal-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,