S RECEIVED %

r fa
TIME:

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. _6349

Introduced by:
REPRESENTATIVES PANTALEON D. ALVAREZ
and FRANCISCO JOSE F. MATUGAS II

AN ACT
CREATING THE SIARGAO DEVELOPMENT AUTHORITY,
PRESCRIBING ITS POWERS, FUNCTIONS AND _ DUTIES,
PROVIDING FUNDS THEREOF, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Siargao Island, located at the coordinates of 9°52'N, 126°03'E, is
composed of forty eight (48) islands and islets, which are politically divided
into nine (9) municipalities: Burgos, Dapa, Del Carmen, Gen. Luna, Pilar, San
Benito, San Isidro, Santa Monica, and Socorro. This group of Islands also
compose the First Legislative District of Surigao del Norte.

Siargao, and its surrounding islands, are famous destinations for local
and international tourists for their natural beauty: the largest mangrove
forest reserves are located in the Municipality of Del Carmen; Pansukian or
the “Naked Island”, is a long sand bar surrounded by massive coastal reefs;
and the intensified waves in the east coast of the Siargao Island are very
attractive to surfers here and abroad.

VNA/jco 8.31.17


The economic potential of Siargao is unquestionable. This bill seeks to
spur further growth by reclassifying and converting the land from the shore
lines of the main island of Siargao, and three (3) kilometers inwards, into
commercial, residential, and tourist areas. Further, this bill declares the
Siargao Island and all the surrounding islands therein as ecotourism zones.
To manage the development of the areas herein specified, this bill creates the
Siargao Development Authority to ensure the sustainable development of
the islands.

In view of the foregoing, the approval of this Bill is earnestly sought.

ak

P. "ALEON D/ALYAREZ FRANCISCO JOSE F. TUGAS II

VNA/jco 8.31.17


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 6349

Introduced by:
REPRESENTATIVES PANTALEON D. ALVAREZ
and FRANCISCO JOSE F. MATUGAS II

AN ACT
CREATING THE SIARGAO DEVELOPMENT AUTHORITY,
PRESCRIBING ITS POWERS, FUNCTIONS AND _ DUTIES,
PROVIDING FUNDS THEREOF, AND FOR OTHER PURPOSES

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

CHAPTER I
DECLARATION OF POLICY
AND CREATION OF THE AUTHORITY

SECTION 1. Short Title. - This Act shall be known as “Siargao Development
Authority Act.”

SECTION 2. Declaration of Policy. It is the policy of the State to undertake
measures to adopt sustainable and progressive development strategies of
forestlands, national parks, marine areas and sanctuaries, and the resources
therein, to promote the economic and social development of Siargao.

Page 1 of 13

VNA/jco 8.31.17


SECTION 3. Creation of the Siargao Development Authority. For the
purpose of carrying out the policy of this Act, a body corporate, granted the
powers of a corporation, is herein created to be known as the Siargao
Development Authority (“SDA”), hereinafter referred to as the “Authority.”

The Authority shall be organized within thirty (30) days after approval
of this Act. It shall have a term of fifty (50) years from its organization:
Provided, That Congress, by a joint resolution, may dissolve the Authority
whenever in its judgment the primary purpose for its creation has been
accomplished. It shall establish its principal office in the Siargao Islands
unless otherwise provided by the Authority and may put up such branches
as may be necessary.

SECTION 4. Purposes of the Siargao Development Authority. The Authority
shall have the following purposes:

a.)To adopt, prepare and implement a comprehensive and detailed
development plan embodying a list of projects to promote the
economic and social development of the Siargao Island and the
surrounding areas therein;

b.)To encourage the active participation of the private sector in
developing the Siargao Island into other productive and sustainable
uses;

c.) To establish a mechanism of consultation and coordination with the
local government units, and other stakeholders, regarding the plans,
programs and projects of the Authority for the islands of Siargao and
the surrounding areas therein; and

d.)To plan, program and undertake the adjustment, relocation, or
resettlement of the people living in the area as may be deemed
necessary and beneficial to the development of Siargao Islands, in
coordination with the appropriate government agencies and local
government units.

SECTION 5. Powers of the Siargao Development Authority. To carry out its
objectives under this Act, the Authority is hereby vested with the following
powers:

Page 2 of 13

VNA/jco 8.31.17


A. To succeed in its corporate name, to sue and be sued in such corporate
name and to adopt, alter and use a corporate seal which shall be
judicially noticed;

B. To enter into, make, perform, and carry out contracts of every class,
kind, and description which are necessary or incidental to the
realization of its purposes with any person, firm or corporation,
private and public, and with foreign government entities;

C. To adopt, amend, and repeal its by-laws;

D. To contract loans, indebtedness, credit, and issue commercial papers
and bonds, in any local or convertible foreign currency from any
international financial institutions, foreign government entities, and
local or foreign private commercial banks or similar institutions under
terms and conditions prescribed by law, rules and regulations;

E. To construct, own, lease, operate and maintain public utilities as well
as infrastructure facilities;

F. To acquire, hold, administer, and lease real and personal properties,
including agricultural lands, property rights and interests and
encumber, lease, mortgage, sell, alienate, or otherwise dispose of the
same at fair market value it may deem appropriate;

G. To receive donations, grants, bequeaths, and assistance of all kinds
from local and foreign government and private sectors and utilize the
same;

H. To exercise the right to eminent domain;
I. To exercise oversight functions over the Siargao Islands declared
under this Act and by subsequent presidential proclamations within

the framework of the declared policies of this Act;

J. To identify, collect, and manage the fees (to be) collected, in relation to
its functions;

Page 3 of 13
VNAfco 8.31.17


K. To promulgate all necessary rules and regulations; and

L. To perform such other powers as may be necessary and proper to carry
out the purposes of this Act.

SECTION 6. Capitalization. The Authority shall have an authorized capital
of Two Hundred Million Pesos (Php 200,000,000.00) which may be fully
subscribed and paid up by the Republic of the Philippines.

SECTION 7. Composition of the Board. The powers and functions of the
Siargao Development Authority shall be exercised through its Board which
shall be composed of fifteen (15) members, as follows:

a.) The Authority shall be composed of one (1) representative from the
respective Planning and Development Offices (“PDO”) of the
following municipalities:

Burgos

Dapa

Del Carmen
General Luna
San Benito
Pilar

San Isidro
Santa Monica
Socorro

SAS Re Nis

b.) A representative of the Department of Tourism (“DOT”), the
Department of Environment and Natural Resources- Protected Areas
and Wildlife Bureau (“DENR-PAWB"), and the Department of
Agriculture - Bureau of Fisheries and Aquatic Resources (“DA-
BFAR’);

c.) Three (3) representatives from the private sector who are stakeholders
in the development of Siargao Islands; from the initial representatives
appointed, one shall serve for four (4) years, the others shall serve for
two (2) and one (1) year respectively, with no reappointment; after the
initial representatives shall have served their term, the subsequent

Page 4 of 13

VNA/jco 8.31.17


representatives shall serve for a period of five (5) years each without
reappointment.

SECTION 8. Qualifications of Board Members. No person shall be
appointed as a member of the Board unless he/she is a Filipino citizen, at
least twenty-five (25) years old, of good moral character, of unquestionable
integrity, and of recognized competence in relevant fields including, but not
limited to, economics, management, development, law or engineering. The
citizenship requirements shall not apply to the three (3) appointed
representatives from the stakeholders from the private sector.

SECTION 9. Chairman of the Board. The Chairman, who must be a Filipino
citizen, shall be appointed by the President from the members of the Board.
The Chair shall have no fixed term from the date of his/her appointment.
He/She must have demonstrated executive competence and experience in
the field of public administration, economic planning, environmental and
natural resource management, or in the establishment and management of
large agricultural, commercial or industrial enterprises. No person shall be
nominated as Chairman unless he/she is of unquestioned integrity and
competence. Finally, the Chairman shall be responsible to the Board and the
President of the Philippines for the efficient management and operation of
the Authority.

SECTION 10. Duties and Responsibilities of the Chairman of the Authority.
The Chairman shall have the following duties and functions:

a.) Call and preside over the meetings of the Board and see to it that the
policies, programs and rules and regulations are implemented
efficiently and effectively;

b.) Call on stakeholders in the formulation and implementation of a
comprehensive and integrated plan for the development of the
Siargao Islands;

Page 5 of 13

VNAfco 8.31.17


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

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

e.) Call on any agency, group, individual member of the Board, local
government unit, and host community to address issues and concerns
relating to implementation of major programs, projects and activities;

SECTION 11. Functions of the Board. The Board shall be the policy-making
and implementing body of the Authority and shall perform the following
functions:

a.) Determine the organizational structure of the Authority, define the
duties and responsibilities of all officials and employees and adopt a
compensation and benefit scheme.

b.) Prepare the annual and supplemental budgets of the Authority;

c.) Submit an annual report of the operation and accomplishments to the
President of the Philippines, Senate of the Philippines, and House of
Representatives.

SECTION 12. Meetings and Quorums. The Board shall meet regularly once
every month at its principal office. There must be notice to all members of
the Board, sent through electronic or traditional means, at least three (3) days
before said meeting. The Board may also conduct special meetings whenever
necessary.

A majority of the members shall constitute a quorum for the
transaction of corporate business, and every decision of at least a majority of
the members present, at which there is a quorum, shall be valid as a
corporate act, except for the election of officers which shall require the vote
of a majority of all the members of the board.

Page 6 of 13

VNA/jco 8.31.17


SECTION 13. Executive Director. The Executive Director shall be appointed
by the President of the Philippines, from the persons recommended by the
Board, who shall serve as the Authority’s Chief Operating Officer for a term
of three (3) years with reappointment for another term.

SECTION 14. Qualifications of the Executive Director. The Executive
Director (“Director”), who shall not be a member of the Board, must be at
least twenty-five (25) years of age at the time of his/her appointment by the
Board and must possess at least three (3) years of substantial executive and
management experience. He/She shall serve at the pleasure of the President.

SECTION 15. Duties and Responsibilities of the Director of the Authority.

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

b.) Supervise the monitoring and timely implementation of Mindanao-
wide and/or Mindanao-specific inter-regional programs, projects and
activities

c.) Execute and administer the policies and measur approved by the
Board;

d.) Appoint all employees of the Authority and, with approval of the
Board to remove, dismiss or otherwise discipline for cause, such
employees in accordance with the standard guidelines for recruitment,
employment, and discipline in the Civil Service Code;

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

f.) Sign agreements and/or contracts on behalf of the Authority,
including those for expert and consultant services and other reports of
accountabilities emanating from the Authority; and

g-) Perform such other functions that the Board may direct to carry out
the provisions of this Act.
Page 7 of 13

VNA/jco 8.31.17


CHAPTER II
DEVELOPMENT OF THE SIARGAO ISLANDS

SECTION 16. Conversion and Reclassification of Lands. There shall be an
easement from the low water line along the coast and extending up to twenty
(20) meters into the coast along the entire Siargao Island covering the coasts
of the municipalities of Burgos, Dapa, Del Carmen, General Luna, San
Benito, Pilar, San Isidro, Santa Monica, and Socorro. The metes and bounds
of the area covered by this Section shall be determined by the DENR.

The respective shorelines beginning at the end of the easement
specified in the immediately preceding paragraph, and extending inwards
for a distance of three (3) kilometers, is hereby converted and classified into
commercial, and residential purposes. Constructions of ports and related
facilities, as approved by the Authority, shall not be subject to the
construction limitations imposed by the shoreline easements.

The entirety of the Siargao Islands is exempted from the coverage of
Republic Act (“RA”) 6657, otherwise known as “Comprehensive Agrarian
Reform Law of 1988”, as amended by RAs 7881, 7905, 8532 and 9700,
respectively.

SECTION 17. Siargao Islands Special Economic Freeport Zone. - There is
hereby created the Siargao Islands Special Economic and Freeport Zone,
hereinafter referred to as the Freeport Zone, consisting of the municipalities
of Burgos, Dapa, Del Carmen, General Luna, Pilar, San Benito, San Isidro,
Santa Monica, and Socorro.

Within thirty (30) days after the approval of this Act, each LGU
comprising the Freeport Zone shall submit its resolution to the Office of the
President on its concurrence to be part of the Freeport Zone and shall
identify a contiguous area in their respective jurisdiction that shall form part
of the Freeport zone. Thereafter, the President of the Philippines shall issue

Page 8 of 13

VNA/jco 8.31.17


a proclamation defining the metes and bounds of the Freeport Zone as
provided herein.

SECTION 18. Governing Principles of the Siargao Islands Special Economic
Zone. - The Freeport Zone shall be managed and operated within the
framework and subject to the mandate and limitations of the 1987
Constitution and the pertinent provisions of Republic Act No. 7160, also
known as the “Local Government Code of 1991.” The Freeport Zone shall be
developed into a self-sustaining, industrial, commercial, financial, agro-
industrial, banking and investment center to generate employment
opportunities in and around the Freeport Zone and to attract and promote
productive local and foreign investments.

The Authority, in the management of the Freeport Zone shall be guided
by the following policies:

(a) The Freeport Zone shall continue to be provided with transportation,
telecommunications and other facilities needed to attract legitimate and
productive investments, generate linkage industries and employment
opportunities for the people residing in the areas comprising the
Freeport Zone and its neighboring towns and cities;

(b)The Freeport Zone may establish mutually beneficial economic
relations with other entities or enterprises within the country or with
foreign entities or enterprises;

(c) The Freeport Zone shall be managed and operated as a separate
customs territory ensuring free flow or movement of goods and capital
within, into and out of its territory;

(d)The Freeport Zone shall provide incentives such as tax and duty-free
importations of raw materials, capital and equipment to registered
enterprises located therein. However, exportation or removal of goods
from the territory of the Freeport Zone to the other parts of the

Page 9 of 13

VNAfco 8.31.17


Philippines shall be subject to customs duties and taxes under the Tariff
and Customs Code of the Philippines, as amended, and the National
Internal Revenue Code (NIRC) of 1997, as amended;

(e) The Bangko Sentral ng Pilipinas, through the Monetary Board, shall
supervise and regulate the operations of banks and other financial
institutions within the Freeport Zone;

(f)Banking and finance shall be liberalized with the establishment of
foreign currency depository units of local commercial banks and
offshore banking units of foreign banks, subject to regulations by the
Bangko Sentral ng Pilipinas;

(g) The areas comprising the Freeport Zone may be expanded or reduced
when necessary. For this purpose, the Authority, with the concurrence
of the LGUs comprising the Freeport Zone and in accordance with
existing laws and local ordinances, shall have the power to acquire
either by purchase, negotiation or condemnation proceedings, any
private lands within or adjacent to the area comprising the Freeport
Zone for the following purposes:

(1) Consolidation of lands for development by the Authority;

(2) Acquisition of right of way by the Authority; and

(3) Protection of watershed areas and the maintenance and
improvement of its yield and natural assets valuable to the
prosperity of the Freeport Zone, the management of solid and
water waste and its impact to adjacent areas within the LGU
concerned.

The Authority and the LGUs comprising the Freeport Zone shall
provide for a mechanism to address inappropriate exploitation of the natural
environment and disruptive land use within the jurisdiction of the
Authority.

Page 10 of 13

VNA/jco 8.31.17


(h) Goods manufactured by enterprises within the Freeport Zone shall be
made available for immediate retail sale in the domestic market, subject
to the payment of corresponding taxes on raw materials and other
regulations that may be formulated by the Authority, together with the
Philippine Economic Zone Authority (PEZA), the Bangko Sentral ng
Pilipinas, the Department of Finance, the Bureau of Customs (BOC) and
the Department of Trade and Industry, in accordance with the NIRC of
1997, as amended, and the Tariff and Customs Code of the Philippines,
as amended. However, in order to protect the domestic industries, a
negative list of industries shall be drawn up and regularly updated by
the PEZA. Enterprises engaged in industries included in such negative
list shall not be allowed to sell their products locally; and

(i)The defense of the Freeport Zone and the security of its premises shall
be the responsibility of the National Government in coordination with
the Authority and the LGUs comprising the Freeport Zone.

CHAPTER III
DECLARATION OF MARINE SANCTUARY AND PROTECTED AREAS

SECTION 19. Marine Protected Area Declared. For the purpose of the
sustainability of the marine resources in the Siargao Island and the
surrounding islands therein, it shall be declared as a Marine Protected Area
(“MPA”) under the jurisdiction and management of the Authority.

SECTION 20. Siargao Master Plan. The SDA, in coordination with DENR
and DOT, must conduct a full survey of the flora and fauna, both in land and
water, found within the Islands within one hundred twenty (120) days from
the effectivity of this Act. The aforementioned must thereafter provide a
master plan for the development of the area and the conservation of the flora
and fauna in the area within six (6) months from the conduct of the full
survey described herein.

SECTION 21. Responsible Entities. - The concerned LGU, along with
members of the community and civil society, the Bureau of Fisheries and
Aquatic Resources (“BFAR”) of the Department of Agriculture (“DA”), the

Page 11 of 13

VNA/jco 8.31.17


Protected Areas and Wildlife Bureau (“PAWB”) of the Department of
Environment and Natural Resources (“DENR”), the Fisheries and Aquatic
Resources Management Councils (“FARMCs”), the Philippine Coast Guard
(“PCG”) and the private sector, as well as the Authority, shall be responsible
for the designation, establishment and management of the MPAs within
municipal waters, based on a co-management scheme that considers the
interests of all the stakeholders involved.

SECTION 22. Funding of the Management of Marine Protected Areas. - The
funding for the establishment of the MPA shall be provided for by the
Authority and its budget from the General Appropriations Act.

SECTION 23. Management of Existing Marine Protected Areas - The DENR
shall manage MPAs established under the National Integrated Protected
Areas System (“NIPAS”) and all initial components of the System that have
passed the requirements pursuant to Republic Act No. 7586, otherwise
known as the National Integrated Protected Areas System Act of 1992.

All marine protected areas, fishery reserves, fishery refuges or
sanctuaries and mangrove swamp forest reserves previously declared or
proclaimed by the President, or legislated as such by the Congress of the
Philippines, shall continue to be supervised by the agency charged with its
administration. Should there be jurisdictional conflicts, however, the
decision of the Authority shall prevail.

SECTION 24. Violations and Sanctions. - Unless otherwise allocated in
accordance with this Act, the NIPAS Law, and the Wildlife Act (Republic
Act No. 9147), it shall be unlawful for any person to willfully and knowingly
exploit, damage or destroy MPAs and/or any of its parts. Violators shall be
subject to the applicable fines and penalties as provided for in the NIPAS
Law, and Republic Act no. 9147, otherwise known as the "Wildlife Resources
Conservation and Protection Act,” and other related laws, rules and
regulations.

Should an LGU fail to maintain an existing MPA as herein provided,
the mayor, the vice mayor and the members of the Sanggunian shall be liable
for prosecution under the Republic Act No. 3019, otherwise known as the
“Anti-Graft and Corrupt Practices Act” and Republic Act No. 6713,

Page 12 of 13

VNA/jco 8.31.17


otherwise known as the “Code of Conduct and Ethical Standards for Public
Officials and Employees” or other applicable laws.

CHAPTER IV
CLARIFICATION OF JURISDICTION

SECTION 25. Defense and Security. - The “Authority” shall be assigned a
special patrol unit from the Philippine National Police and the PCG.

SECTION 26. Separability Clause. - If any provision or part thereof is
declared unconstitutional, the remainder of this Act or any provision not
affected shall remain in full force and effect.

SECTION 27. Repealing Clause. - All law, presidential decrees, executive
orders, rules and regulations, including but not limited to DENR
Memorandum Order 2011-04, dated 03 November 2011, or parts thereof
inconsistent with the provisions of this Act are hereby repealed, amended or
modified accordingly.

SECTION 28 Effectivity. - This Act shall take effect immediately after its
publication in the Official Gazette or in two (2) newspapers of general
circulation.

Approved,

Page 13 of 13

VNA/jco 8.31.17