NINETEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES)
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No, 1185

Introduced by Representative Christian Tell A. Yap

Transport is a key sector in the Philippine economy, linking population and economic centers
across the archipelago. While the transport infrastructure has been developed and spread across the
country — about 215,000 kilometers of roads ~ the level of service has not been sufficient due to the

lack of sustainable financing

The large part of the Philippine road network remains in poor condition and integration is
generally weak, Poor local roads make it expensive to move people and goods, hurting competitiveness
and preventing the full potential for sustained economic growth. The poor condition of local roads is
a result of low investment by the local government units (LGUs) as the responsibility of local road
management was devolved as per Local Government Code of 1991, without appropriate transfer of

capacities and resources to take care of its local road network.

In addressing this issue, the Conditional Matching Grant to Provinces (CMGP) Program
provided for the apportioning of funds for the repair, rehabilitation, improvement of core provincial,
municipal, and barangay roads by the provincial governments. Formerly known as Konkreto at Ayos
na Lansangan ang Daan Tungo sa Pangkalahatang Kaunlaran (KALSADA), the CMGP is a
partnership program between the Department of the Interior and Local Government (DILG) and
Department of Budget and Management for Provincial LGUs in response to the needed infrastructure

support, as well as reforms in local roads management and public financial management

According to the DILG, 316 CMGP road projects totaling to 1,192 kilometers in the amount
of P17.6 billion have reached 92.5% of physical accomplishment in 2017. Notwithstanding this
accomplishment, the budget for the CGMP was drastically reduced to 8.2 billion or more than half the

following year.

This bill seeks to institutionalize the CMGP to support LGUs by providing the necessary

funding of provincial road works to all provincial governments annually, as well as the provision of


capacity development and quality assurance measures for local road management to ensure the

continuous development, improvement, and maintenance of local road networks.

In view of the foregoing reasons, the approval of the bill is earnestly sought,
,



NINETEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —_)
First Regular Session )

HOUSE OF REPRESENTATIVES

1185

House Bill No.

Introduced by Representative Christ

AN ACT
PROVIDING FOR THE INSTITUTIONALIZATION OF THE CONDITIONAL
MATCHING GRANT TO PROVINCES (CMGP) FOR ROAD AND BRIDGE REPAIR,
REHABILITATION, AND IMPROVEMENT

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

1 SECTION 1. Title, - This Act shall be known as the “Local Road Repair, Rehabilitation,
2 and Improvement Act of 2022.”

4 SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State that local
5 government units (LGUs) shall be responsible for providing basic services and facilities, such as
6 local roads and bridges, and that the higher levels of governments shall provide or augment such
7 services and facilities assigned to lower levels of LGUs when these are not made available or, if

& — made available, are inadequate to meet the requirements of its inhabitants.

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0 SEC 3. Definition of Terms.~ The following terms shall be defined as follows

un (a) Local Road Management refers to planning, prioritizing, and sustainably managing '
Rn the local road network in consideration of the envisioned socio-economic |
B development of the local government unit;

4 (b) Local Roads refer to provincial, municipal and barangay roads or roads that (i)

1s connect cities and municipalities without traversing national roads; (ii) connect

16 national roads to barangays through rural areas, and (iii) connect to major provincial

7 government infrastructure;

18 (6) Core Local Roads refer to the minimum road network required to support economic |
» and social development by providing linkages between the majority of population

0 and the basic services and facilities within the province. Core local roads also serve

2 as the primary drivers of local economic growth;

2 (4) Local Road Network Development Plan refers to a transparent and predictable
2 multi-year development program of local road networks, including provincial, city,

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i)

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municipal, and barangay roads, that need to be improved or rehabilitated in the next
five years to support local economic drivers, particularly agriculture, trade, logistics,

and tourism hubs.

SEC. 4. The Conditional Matching Grant to Provinces (CMGP) Program. - There is
hereby established a regular National Government Program to be known as the Conditional
Matching Grant to Provinces (CMGP) Program, The CMGP shall annually (i) apportion funds for
the repair, rehabilitation, and improvement of core provincial, municipal, and barangay roads by the
provincial governments, as identified in the provinces’ Local Road Network Development Plan; (ii)
provide capacity development activities and develop and roll-out systems and tools for the
improvement of the provinces’ local road management; (iii) administer the funds apportioned to the
provincial governments; (iv) safeguard the fund downloaded to the provincial governments.

The CMGP shall be managed by the Department of the Interior and Local Government
(DILG), being the national government agency mandated to strengthen local government capability
for effective delivery of basic services to the citizenry. Its principal office shall be in Metro Manila,
but it may establish other branches or offices elsewhere in the Philippines as may be necessary or

proper for the accomplishment of its purposes and objectives

SEC. 5. Powers and Functions ~ The CMGP Program shall be a partnership program of the
DILG and the Department of Budget and Management (DBM) for provincial governments. The
aforementioned agencies shall have the following powers and functions
a) The DILG shall

1. administer the funds and manage the operations of the CMGP Program,

2. monitor the provincial governments’ compliance with the provisions of
the Implementing Rules and Regulations of the CMGP Program, and set-
up a database of the provincial governments’ performance and
accomplishments.,

3. organize and develop continuing training programs, coaching, and
mentoring for provincial governments on local road management and
public financial management,

4. continuously develop tools and systems for LGUs that will support the
continuous development and improvement of the management of local
roads;

5. plan and implement research and development activities as a center of
knowledge and services in the area of local road management;

6. develop a set of criteria for the annual allocation of funds provided by the
National Government for the repair, rehabilitation and improvement of

local roads to be approved by the Program Steering Committee;


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formulate policies that would support the efficient implementation and
achievement of the CMGP Program's goals and objectives, for approval
and concurrence of the Steering Committee:

forge partnerships with, and receive from any person and/or government
and private entities, whether foreign or domestic, services relevant to the
purpose and objectives of the CMGP Program;

as the lead implementor of the CMGP Program, exercise such other
powers and functions, and perform such other acts as may be necessary,
proper, or incidental to the attainment of the Program's purposes and

objectives

b) The DBM shall

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issue the Special Allotment Release Order (SARO) and Notice of Cash
Allocation and coordinate with the Bureau of Treasury for the direct
download of funds to the provinces,

assist the provincial governments in matters relevant to public financial
management, and

develop tools and systems for LGUs that will support the continuous

development and improvement in the management of public finances

c) The Provincial Governments shall
1.

undertake the implementation of provincial road works subject to the
provisions of the IRR of the CMGP:

undertake the implementation of road works on municipal and barangay
roads as identified in the Local Road Network Development Plan and in
coordination with the municipal and barangay government units,

provide capacity development to municipal and barangay governments
under its territorial jurisdiction on Local Road Management and Public
Financial Management; and

may undertake road works for municipalities and barangays by

administration

SEC. 6. CMGP Program Steering Committee - The governance and policy direction of the
CMGP Program shall be vested in, and its powers exercised by, a Program Steering Committee,

which shall be composed of seven (7) members, as follows’

(a) The Undersecretary for Local Government of the DILG as Chairman,

(b) The Secretary General of the League of Provinces of the Philippines (LPP);


(c) The Undersecretary for Local Government and Regional Operations Group
of the DBM;

(@) The Undersecretary for Budget Preparation and Execution Group of the
DBM:

(c) The Undersecretary for Investment Programming of the National Economic
and Development Authority (NEDA);

() The Undersecretary for Planning and Public-Private Partnership of the
Department of Public Works and Highways (DPWH), and

(@) The Undersecretary for Domestic Finance Group and Legislative Liaison or
the Executive Director of the Bureau of Local Government Finance of the

Department of Finance (DOF).

SEC. 7. Functions and Responsibilities of the Program Steering Committee.
The Committee shall have the following functions
(a) To formulate and adopt policies and measures for the management and
operation of the CMGP Program,
(b) To approve, through its Chairman, the staffing pattern of the CMGP
Program Management Office;
(c) To promulgate rules and regulations for the discharge of its powers and
functions and the internal operations of the CMGP Program Management
Office, Provided, That the Chairman of the Committee shall exercise the
power to appoint, promote, discipline, or remove the personnel of the CMGP
Program;
(d) To oversee the financial affairs of the CMGP Program according to its
requirements, and
(©) To periodically monitor and review the operations and accomplishments of
the CMGP Program.

SEC. 8. Management and Staffing of the Program. - The Program shall be administered
by a Program Manager engaged by the DILG, and shall receive such salary and remuneration as
may be determined by the Steering Committee Chairman, The Program Manager shall be
responsible for forming a team for carrying-out Program operations, project monitoring, technical

assistance, and capacity development for provincial governments. The qualifications, competencies,

salaries, and compensation of the Program staff shall likewise be evaluated and determined by the

Committee Chair.


SEC. 9. Government Coordination. - The CMGP Program Management Office shall assist,
cooperate, and coordinate with other government agencies for the attainment of the purposes and

objectives of this Act.

SEC. 10. Appropriations. - The amount necessary to carry out the provisions of this Act
shall be included in the General Appropriations Act of the year following its enactment into law and

thereafter.

SEC. 11. Implementing Rules and Regulations. - Within thirty (30) days from the
completion of their appointments, the Program Steering Committee shall convene, and with the
existing CMGP Program Management Office, and the Office of the Project Development Services
where the Program is lodged, shall draft the Program guidelines, and IRR, as necessary, for the
implementation of this Act. The rules and regulations shall be issued within one hundred eighty

(180) days from the date of the Committee's initial meeting,

SEC. 12. Repealing Clause. - All laws, executive orders, presidential decrees, presidential
proclamations, letters of instruction, rules and regulations or parts thereof which are inconsistent

with the provisions of this Act are hereby repealed or modified accordingly

SEC. 13. Separability Clause. - \f any provision of this Act is declared unconstitutional or
invalid, other parts of provisions hereof not affected thereby shall continue to be in full force and

effect.

SEC. 14. Effectivity. - This Act shall take effect fifteen (15) days following its publication
in the Official Gazette, or in two (2) newspapers of general circulation in the Philippines.

Approved,

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