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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
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First Regular Session 
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SEP -5 P 1 :59 
SENATE 
Senate Bill No. 154 5 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Public markets are the primary trading centers for all cities and 
municipalities. However. most of the public markets in the country are in a state 
of disrepair thus hampering their potential as hubs for efficient domestic retail 
trade. 
The enactment of this bill is intended to establish every public market as 
the primary foundation of Philippine trade and commerce. To ensure the 
achievement of this objective. the efforts for the development of each public 
market shall be hinged on the initiative of the local government units through its 
internal revenue allotment and counter-parted with more substantial support from 
the Departments of Trade and Industry. Agriculture and Finance. 
Specifically. this bill intends to set up a five-year plan to ensure an 
integrated approach to the development of public markets beginning 2010. This 
will be done through a menu of development modules consisting primarily of 
infrastructure improvements. micrO-financing projects. institutional support 
programs and other support services for consumer protection. Prioritization of 
initiatives shall begin within each local government unit and coordinated under 
the leadership of the Department ofTrade and Industry. 
The support of government financial institutions and agencies together 
with the Priority Development Assistance Fund of the Senators and 
Congressmen and the Social Fund of the President of the Republic of the 
Philippines are also encouraged in this bill. Incentives are also given to private 
persons who provide assistance in the implementation of this Act. 
It is hoped that after a period of five years there will be more public 
markets that will allow the efficient trading of goods for the benefit of the 
domestic economy. 
In view of the foregoing. approval of this bill is earnestly requested. 
OY EJERCITO ESTRADA 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 15 4 5 
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SEP -5 P 1 :59 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
TO PROVIDE FOR A FIVE-YEAR PUBLIC MARKETS PROGRAM INVOLVING 
INFRASTRUCTURE 
IMPROVEMENT, 
MICROFINANCING 
SUPPORT, 
INSTITUTIONAL ADVANCEMENT AND CONSUMER PROTECTION 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assent bled 
I.INTRODUCTION 
SECTION 1. Title. - This Act shall be known as the "Public Markets 
Infrastructure DeVelopment, Micro-Financing Support and Related Skills 
Training Program Act of 2013". 
SEC. 2. Declaration of Policy. - The State recognizes the vital role of 
public markets in providing an environment conducive to the sustained 
development of the national economy particularly its function as a trading and 
commercial post for the benefit .of small and medium sized enterprises. In 
furtherance thereof, the State hereby advocates the formulation of a set of 
development modules for the optimum integration and consolidation of all 
matters related to establishment and improvement of public markets within the 
next five years. 
SEC. 3. Definition of Terms. - For purposes of this Act, the definitions of 
the following terms are: 
(a) 
"Public Market" refers to a place, building or structure or any kind 
owned and/or operated by a city or municipality deSignated as such 
by their respective Sanggunians and dedicated to the service of the 
public in general and where basic food items and other commodities 
are displayed and offered for sale. The term also includes market 
stalls, tiendas, buildings, roads, subways, waterways, drainage, 
parking spaces, and other appurtenances that are an integral part 
thereof. 
(b) 
"Development Modules" refers to the whole package intended for 
the development of any public market which shall be comprised 
primarily of four aspects; namely, infrastructure improvement, 
extension of micro-financing services, institutional advancement and 
consumer protection. 


(c) 
"LGU" refers to local government units that may either be the local 
governments of highly urbanized cities, provinces, cities, and/or 
municipalities. 
(d) 
"Counter-parting" refers to the process by which funding for the 
execution of any of the public market development modules is shared 
and sourced from various government entities and/or even with the 
assistance of non-governmental organizations. 
(e) 
"Earmarking" refers to the automatic allocation of the proceeds of 
any revenues generated from the development of any public market 
for a specific purpose, which must be for the benefit of the operations 
of the said public market. 
SEC. 4. Criteria of Development Modules. - The development modules 
shall be implemented based on the following minimum criteria: 
(a) On Infrastructure Improvements - This shall include at its minimum the 
following specific improvements on the infrastructure of any public market: 
(a.1) 
Constructive 
Repairs 
comprised 
of 
infrastructure 
refurbishments, 
construction of comfort rooms, directional signs and drainage systems. 
(a.2) Waste Disposal comprised of garbage bins, regular sanitation treatments 
and waste disposal maintenanCe. systems. 
(a.3) Ads Space comprised of the construction of advertisement spaces or 
billboards which shall be bid out by the local government unit to any supplier of 
goods traded in the public market; provided, that the lease payments from such 
shall be earmarked for the construction of more advertisement spaces or as 
payments for the regular sanitation of the public market. 
(b) On Micro-Financing Support - This shall include at its minimum the following 
conditions on micro-financing: 
(b.1) Unless otherwise prescribed by law, interest rates imposed for micro 
financing shall be based on prevailing market rates. 
(b.2) Collaterals shall not be required from any debtor who avails of a micro-
financing package as provided under this Act of not more than Fifty Thousand 
Pesos (P50,OOO.00). 
(b.3) Market Vendors Cooperatives shall be given priority to syndicate a part not 
exceeding eighty percent (80%) of the micro-financing package; provided, that it 
guarantees to pay the said loan as agreed upon and lends out the said loan in 
smaller portions to its members only subject to the condition imposed by the prior 
paragraph. 
(b.4) Sources of funds for micro-financing shall come from Government Financial 
Institutions. 
(c) On Institutional Advancement - This shall include at its minimum the 
educational and training programs on entrepreneurship, financial management. 
networking and such other subjects necessary for the enhancement of the skills 
of market vendors. 


(d) On Consumer Protection - This shall include at its minimum the following 
programs that will ensure consumer protection; namely, regular price monitoring, 
providing credible weighing scales, creating an awards system for market 
vendors in the public market, providing a responsive consumer desk where 
suggestions and complaints may be filed; among othem. 
SEC. 5. Timetable of Development - Within the first two years of this Act, 
priority should be given to the development of at least one public market located 
within every highly urbanized city and capital city. In the latter three years of this 
Act, the priority shall be given to the development of at least one public market 
looated Within any MUnlolpality wherein the cOi'lOerned LGU prOVides a 
development study that complies with the requirements set by the coordinating 
government agencies. 
II. DEVELOPMENT MODULES 
SEC. 6. Module of Public Markets Infrastructure Development, 
Financing Support and Training Program Module for Highly Urbanized 
Cities. - In the development of public markets located in highly urbanized cities, 
the local government unit shall take the initiative in the adoption of the provisions 
of this Act. It shall be done by the appropriate approval of an ordinance issued by 
the City Council and duly certifledby the· City Mayor of the area INhere the public 
market is located. The develgpment module shall comply with the following 
minimum requirements: 
. 
(a) On Infrastructure Improvement - a minimum of at least Twelve Million 
Pesos (P12,OOO,OOO.OOM) must be set aside to fund infrastructure related 
projects for public markets located within highly urbanized cities. 
(b) 01'1 Micro-financing -
a MiniMUM of at least Thirty Miltton pesos 
(P30,OOO,OOO.OO) must be set aside to fund micro-financing related 
projects of small and medium sized enterprises based in public markets 
located within highly urbanized cities. 
(c) On Institutional Advancement - a minimum or at least One Million Pesos 
(P1,OOO,OOO.OO) must be set aside to fund institutional development 
programs for public markets located within highly urbanized cities. 
(d) On CQnsumElr Protection - a minimum of at least Five Hyndred Thousand 
Pesos (P500,OOO.OO) must be set aside to fund consumer protection 
programs for public markets located within highly urbanized cities. 
SEC. 7. Module of Public Markets Infrastructure Development, 
Financing Support and Training Program Module for Cities. -
In the 
development of public markets located in capital cities, the local government unit 
shall tale the initiative in the adoption of the provisions of this Act, It shall be done 
by the appropriate approval of an ordinance issued by the City Council and duly 
certified by the City Mayor of the area where the public market is located. the 
development module shall comply with the following minimum reqUirements: 


(a) On Infrastructure Improvement - a minimum of at least Five Million Pesos 
(P6.;OOO,OOO,OOm) must be set aside to fund infrastructure related projects 
for public markets located within provincial cities. 
(b) On Micro-financing - a minimum ¢ at least Fifteen Million Pesos 
(P15,000,000.00) must be set aside to fund micro-financing related 
projects of small and medium sized enterprises based in public markets 
located within provincial cities. 
(c) On Institutional Advancement - a minimum of at least Five Hundred 
Thousand Pesos (P500,000.00) must be set aside to fund institutional 
development programs for public markets located within provincial cities. 
(d) On Consumer Protection - a minimum of at least Three Hundred 
Thousand Pesos (P300,000.DO) must be set aside to fund consumer 
protection programs for public markets located within provincial cities. 
SEC. 8. Module of Public Markets Infrastructure Development, 
Financing Support and Training Program Module for Municipalities . • In the 
development of public markets located in municipalities, the local government 
unit shall take the initiative in the adoption of the provisions of this Act. It shall be 
done by the appropriate approval Of an ordinance Issued by the Munlolpal 
Council and duly certified by the Municipal Mayor of the area where the public 
market is located. The development module shall comply with the following 
minimum requirements: 
'. 
(a) On Infrastructure Improvement - a minimum of at least Three Million 
Pesos (P3,OOO,OOO.OO) must be set aside to fund infrastructure related 
projects for public markets located within provincial municipalities. 
(b) Qn Mi(;fQ-financing - a minimum of at lealilt Seven Million Pesos 
(P7,000,000.00) must be set aside to fund micro-financing related projects 
of small and medium sized enterprises based in public markets located 
with,n provincial municipalities. 
(c) On Institutional Advancement - a minimum of at least Three Hundred 
Thousand Pesos (P300,OOO.OO) must be set aside to fund institutional 
development prografTIs for P!Jblic markets located within provincial 
municipalities. 
(d) On Consumer Protection - a minimum of at least Two Hundred Thousand 
Pesos (P200,000.00) must be set aside to fund consumer protection 
programs for public markets located within provincial municipalities. 
III. PARTICIPANTS 
SEC, 9. Role of Local Government Units. - All local government units of 
cities and municipalities must adopt and choose at least one public market in its 
area of responsibility as the pioneer public market for development based on the 
provisions of this Act. Each local government unit must prepare a comprehensive 
fealilibility stydy for the developm~nt ('jf the pUblic markl(rt it haS chosen ta benefit 
under the provisions of this Act. Each local government unit must find through its 
internal revenue allotment at least thirty percent (30%) of the total funding cost 


related to public market infrastructure improvements, institutional advancement 
and consumer protection. 
The provincial government must choose as priority projects at least one 
public market within its capital city and at least another one within any of the 
municipalities within its jurisdiction. It must likewise fund through its internal 
revenue allotment at least thirty percent (30%) of the total finding cost related to 
pUblic market Infrastructure Improvements, Institutional advancement and 
consumer protection. 
SEC. 10. Role of Government Financial Institutions. - All government 
financial institutions shall set aside funding for micro-financing operations related 
to the purposes of this Act. Each government financial instifution must fund at 
least twenty one (21) micro-financing project for the benefit of public markets 
identified under this Act; provided, that this shall be distributed evenly at seVen 
(7) public markets each for. Luzon, Visayas and Mindanao, respectively. The 
participating government linaiicial institutions shall include the Development Bank 
of the Philippines (OBP), Land Bank of the Philippines (LBP) and other 
government financial institutions. 
SEC. 11. Primary Coordinating Government Agencies. -
The 
Department of Trade and Industry shall be the lead agency which will ensure the 
implementation of nus Act. Tile Departments of AgricUlture, Finance aM PUolic 
Works and Highways and the Commission on Audit shall also assist in the 
evaluation and coordination of all. public market improvements. 
SEC. 12. Role of Public Market Vendors Cooperatives. - Only duly 
registered market vendors cooperatives shall be recognized for purposes of this 
Act. Subject to the supervision of the primary coordinating government agencies, 
public market vendors' cooperatives shall be given the first priority in availing of 
the mloro-flnanclng services and institutional development programs provided 
herein. However, such services shall never exclusively benefit public market 
vendors' cooperatives. 
SEC. 13. Public Consultation. - Prior to the final approval of any 
development of any public market under this Act, the lead and other coordinating 
government agenCies must hold public consultations with all interested parties at 
the city or municipality where the said public market is located. The Regional 
H~ad Qf 
th~ Q~artment Qf Trade and tm;lu&try Qr his duty designated 
representative shall chair and convene the consultations with the public. A notice 
informing such shall be posted in a conspicuous place in the city or municipal hall 
for a period of two (2) consecutive weeks prior to the date of the hearing. 
IV. PROJECT IMPLEMENTATION 
SEC. 
14. 
Technical 
Assistance 
and Resource 
Mobilization 
Coordinating Council on Public Markets Development. • To facilitate the 
implementation of this Act, a technical assistance and resource mobilization 
coordinating council shall be formed to support, promote, and encourage the 
LGUs in the development of any pUblic market based on the proviSions Of thiS 
Act. The following shall be the members of the committee: 


(a) 
The Secretary of the Department of Trade and Industry or his duly 
authorized representative who must have the rank of undersecretary, 
as Chairman; 
(b) 
The Secretary of the Department or Agriculture or his duly authoriz~d 
representative who must have the rank of undersecretary, as Vice-
chairman; 
(c) 
The Secretary of Finance or his duly authorized representative who 
must have the rank of undersecretary, as member; 
(d) The Secretary of Public Works and Highways or his duly authorized 
representative who must have the rank of undersecretary, as 
member; 
(e) 
The Secretary of the Department of Interior and Local Government or 
his duly authorized representative who must have the rank of 
undersecretary and, as may be necessary and upon proper invitation, 
the President, or his representative, of national LGU officers 
Qrganizmicms; 
(f) 
The President of the Development Bank of the Philippines or his duly 
authorized representative, as member; and, 
(g) 
The President of the Land Bank of the Philippines or his duly 
authorized representative, as member. 
The committee shall have the following functions: 
(a) 
Provide technical assistance and resource mobilization to local 
government 
units 
qualified 
to 
undertake 
the 
establishment, 
maintenance; and development of public markets in accordance with 
this Act; 
> 
• 
(b) 
Coordinate and facilitate the procurement of micro-financing 
operations and the hiding of at least seventy percent (70%) of the 
total 
funding 
cost 
related 
to 
public 
market 
infrastructure 
improvements, institutional advancement and consumer protection in 
accordance with this Act; 
(c) 
Screen and determine local government units qualified to undertake 
public market development through the compliance 
of the 
requirements provided under Section 9 of this Act; and, 
(d) 
Monitor, evaluate, and submit annual reports to the President of the 
Philippines, the President of the Senate and the Speaker of the 
Mouse of Representatives, an annual accomplishment report on 
projects covered in this Section, which shall include the total amount 
of micro-financing released as of the end of the calendar year, local 
government units granted micro-financing and the amount thereof, 
and a list and description of accomplished and pending public market 
development projects. 
SEC. 15. Engineering and Administrative Overhead Expenses. -
Appropriations for projects authorized in this Act shall be used solely for project 


implementation which shall include direct engineering, consulting and/or 
adminil,trative overhead expenditures incidental thereto, including but not limited 
to salaries of employees who may be hired for the duration of the project, office 
supplies and similar operational costs. These engineering and administrative 
overhead ~xp~nditur~s §hlill !le reflec:;ted in the proQram ¢ work for th~ project 
concerned and shall not exceed four percent (4%) of the amount actually 
released for the project; Provided, that the said percentage shall be reduced as 
the total project cost increases. 
The program of work shall include, among others, estimates of the work 
item~, quantities and 
COS~, ,me:! 
th~ schee:!ul~ of proja!;t activities and 
disbursements. 
SEC. 16. Program of Work. - The development of any public market 
must begin with the initiative of the local government unit through its 
endorsement of a feasibility study for public consultation. After the completion of 
the said public consultation, a copy of the feasibility study shall be submitted to 
the Teohnical Assistance and Resource Mobilization COQrdinating Council fQr 
technical endorsement. Thereafter, the bidding out of the project shall be done 
before the concerned local government unit where the public market is located, in 
aocordanoe with the harmonized procedures on procurement under Republic Act 
9 184 or the Government Procurement Reform Act. Once these are done, the 
actual implementation shall begin with the introduction of infrastructure 
improvements and followed by the implementation, as deemed necessary, oHhe 
micro financing project, the institutional development program and the consumer 
proWQtion project. 
" 
SEC. 17. Public Bidding. - Once the development plan of any public 
market is cleared for implementation, all projects covered under this Act shall be 
implemented by contract awarded after competitive public bidding open to all 
qualified bidders and shall be awarded to the bidder who submits the lowest 
evaluated bid that is most advantageous to the government based on existing 
laws and regulations. A notice of the schedule of the bidding must be published 
for three (3) consecutive weeks in a conspicuous place within the city or 
municipal shall where the public market is located. 
SEC. 
18. Negotiated Contracts. - No project in this Act shall be 
implemented by negotiated contract except in any of the following cases: (a) 
when there is an emergency arising from natural calamities or where immediate 
actions is necessary to comply with government commitments; (b) when there is 
failure to award a contract after cqmpetjtive 'Public bidding fora valtd cause: (0) 
upon the termination or rescission of contract; (d) when the project is to be 
implemented in areas with critical peace and order problems as certified by the 
Department of National Defense; or (e) as expressly authorized by the "'resident 
of the Philippines when national interest so requires. 
The authority to negotiate and approve contracts under this section she;1I1 
be obtained by them from the Secretary of the Department of Trade and Industry. 
SEC. 19. Publication and Posting of Public Markets Development 
Contracts. - All contracts for publio market development projects sh_sn be 
published three times on three separate days once a week for three consecutive 
weeks in a newspaper with a general circulation at the region where the said 


public market is located. In addition thereto, a copy thereof shall be posted in a 
public place in the province, city or municipality where the project will be 
implemented. 
$lIch PlJbli~a~ion f;hall ~ontain the sllbj~qt m~~r of the ~ontiact, including 
the persons authorized by the government to give consent in its behalf; the type 
of materials used; the contract time; the bidders, if public bidding is undertaken 
before granting the contract; and other terms of the contract. 
For purposes of this Act, the local government unit concerned shall allow 
interested parties to inquire into the particylar contract, Such inqyiry shall p~ 
made in writing during regular office hours and the same shall be for a legitimate 
purpose stated therein. The copies of the documents, papers and records 
pertinent to the public markets development contract that is the subject of inquiry 
shall be made available at the expense of the interested parties. 
V. SOURCES OF FUNDS AND INCENTIVES 
SEC. 20. Sources of Funding. - The development of any public market 
under the provisions of this Act shall be funded through the counter parting of 
funds from various government offices, entities or agencies; provided, that each 
local government unit must fund through its internal revenue allotment at least 
thirty percent (30%) of the total funding cost related to public market 
infrastructure improvements, institutional advancement and consumer protection. 
' .. 
The Department (If Agric:;ulture sh~1I prQVide Cqunter p~rt fUn!1~ $OUrl3e!1 
from appropriations for post harvest facilities as provided under R.A. No. 8435, 
otherwise known as the Agriculture and Fisheries Modernization Act of 1997, as 
amended, as well as from RA. No. 8 118, otherwise known as the Agricultural 
Competitiveness Enhancement Fund as amended by R.A. No. 9496. At least 
twenty (20) public markets every year beginning from the approval of this Act 
must be provided with the counter part funds by the Department of Agriculture. 
Any government agency or instrumentality, including government owned 
and ,controlled corporations and/or the offices of any Senator and/or 
Congressman through their Priority Development Assistance Fund and/or the 
Social Fund of the President of the Republic of the Philippines, may also provide 
the oounter pM funds to finanoe any aspect Of thiS pr~je(lt. 
Only government financial institutions are required to fund all micro-
fin~ncing proj§lcts for the b~nefit of public markets. Subject to reasonable term!;! 
and conditions, nothing, however, prohibits private financial institutions from 
providing all or part of the funds needed to support the micro-financing projects 
8S provided in this Act. 
All government agencies and/or offices that have committed to support the 
QIo!lV§llopm§lnt of iilny public miilrket 5lhall §lxpre5l5l1y !>tate such on a Memorandum 
of Agreement that shall be executed per criteria. 
SEC. 21. Incentives for Private Support. - Any person may donate 
funds, equipment, materials or services for the use and benefit of any stage of 
the development modules. 
Such donations sharr be done through a 
Memorandum of Agreement (MOA) between the LGU and the donor. The MOA 
shall expressly state the market value of the donated funds, materials or 


-. 
services. The value of the donation shall be automatically exempt from all 
national internal revenue taxes including customs duties and other importation 
charges. if applicable. Subject to the issuance of the appropriate revenue 
regulations by the Bureau of Internal Revenue. the value of the donation shall 
\'I1~o be deQustiple \'II> \'In eXpenl>e in the determin\'lti~n of the 
taxable income of any donor .. 
SEC. 22. Valuation of Private Support. - Unless such donations are 
capable of pecuniary estimations, these contributions shall be based on the 
market value of the said goods that shall be stated on a Memorandum or 
Agreement to be executed between the donor and the local government unit 
where the concerned public market is located. 
VI. REPORTORIAL AND OVERSIGHT REQUIREMENTS 
SEC. 23. Reports. - The Secretary of the Department of Trade and 
Inqustry shall submit to the President of the Philippines, the President of the 
Senate and the Speaker of the House of Representatives. an annual 
accomplishment report on projects covered in this Act, which shall include the 
aPpropriation!i! rell'1alled all of the end of the PalanQar Year, the e)(tent qf the 
works accomplished, further works to be done, and any recommendations for 
additional appropriations or charges thereof. A detailed break report also as to 
the sources of counter-part funds utilized per public market project as 
implemented in this Act shall Ii~ewise be provided. 
SEC. 24. Implementing Rules and Regulations. - The Department of 
Tra<:ie and IndlJll~ry in conl;ultation with the Technical Assistance and Resource 
Mobilization Coordinating Council and the LGUs, shall prepare such rules and 
regulations for the proper and effective implementation of this Act, within sixty 
(60) days from the date of publication of this Act. The Department of Trade an<;l 
Industry shall publish once a week for two (2) consecutive weeks in two 
newspapers of general circulation the rules and regulations promulgated 
p\.lr§\.I~nt t9 this provi§i(;mi 
SEC. 25. Separability Clause. - Any portion or provisions of this Act that 
may be deolared unconstitutional or invalid shall not have the effect of nUJlifying 
other portions and provisions hereof as long as such remaining portion or 
provision can still subsist and be given effect in their entirety. 
SEC. 26. Repealing Clause. - All laws, decrees, executive orders, 
proclamations and administrative regulations, or parts thereof inconsistent 
herewith are hereby repealed or modified accordingly. 
SEC. 27. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its publication in at least two (2) national papers of general circulation or in 
the Official Gazette. 
Approved,