1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ____ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO ‘BRO. EDDIE’ C. VILLANUEVA 
AN ACT 
PROVIDING FOR THE CREATION OF PHILIPPINE EXTRACTIVE 
INDUSTRIES TRANSPARENCY INITIATIVE AND FOR OTHER 
PURPOSES 
EXPLANATORY NOTE 
The extractive industries have the capacity to contribute to the 
national growth and development, especially in resource-rich countries 
like the Philippines.  They have the potential to provide livelihood 
opportunities, create jobs, and channel additional government resources 
to host communities.  The gains from the oil, gas, and mineral resources, 
nevertheless, do not always translate to benefits for the general public. 
Across the globe, extractive industries are marred with various issues on 
environmental degradation, fiscal misconduct, poverty, and corruption. 
In response to these issues, the Extractive Industries Transparency 
Initiative (EITI) was launched to allow for full disclosure of and public 
access to information regarding the extractive industry.  The EITI is an 
internationally recognized framework and practice that monitors revenue 
and public benefit from mining and other extractive resources.  Composed 
of representatives from the government, extractive industry players, and 
civil society organizations, EITI provides a platform for the regular and 
systematic reporting, review, and assessment of information concerning 
January 30, 2023
8:00 am
6950


 
2 
the industry.  It also strengthens multi-sectoral participation in crafting and 
implementing regulatory policies governing the extractive industry. 
 
In the Philippines, the EITI was established on November 26, 2013 
pursuant to Executive Order No. 147 entitled “Creating the Philippine 
Extractive Industries Transparency Initiative.”  Since its inception, the 
Philippine EITI (PH-EITI) served as an effective platform for public 
disclosure of information on fees, taxes and other payments made by 
mining companies.  The later expansion of PH-EITI enabled the coverage 
of oil and gas industries.  Furthermore, regular reports published by the 
PH-EITI also later expanded to include publicly disclosed information on 
social and environmental impact of the extractive industries. 
 
Among the impacts of this initiative, the PH-EITI strengthened the 
capacity of local government units (LGUs) – as well as other stakeholders 
such as community groups, civil society organizations, and indigenous 
people – in monitoring the mining activities in their respective areas 
through regular disclosure of the share of LGUs in the revenues from 
extractive industries.  Over the years since its inception, PH-EITI data 
collection and reporting provided different stakeholders the instrument 
and proper platform to formulate real governance reforms on the ground. 
 
To ensure the continuation of the reforms introduced and 
established by the said initiative, this bill seeks to institutionalize the 
creation of the Philippine EITI.  Institutionalizing the PH-EITI will enable 
the multi-sectoral initiative not only to continue its efforts but also pursue 
other reforms that will allow the country to further maximize the benefits 
from the extractive industry. 
 
The immediate passage of this bill is earnestly sought. 
 
 
 
 
EDUARDO “BRO. EDDIE” C. VILLANUEVA 
 
 
 
 
 
 
 


3 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ____ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO ‘BRO. EDDIE’ C. VILLANUEVA 
AN ACT 
PROVIDING FOR THE CREATION OF PHILIPPINE EXTRACTIVE 
INDUSTRIES TRANSPARENCY INITIATIVE AND FOR OTHER 
PURPOSES 
 Be it enacted by the Senate and House of Representatives of the 
1 
Philippines in Congress assembled: 
2 
3 
CHAPTER I 
4 
GENERAL PROVISIONS 
5 
6 
SECTION 1. Title. – This Act shall be known as the “Philippine 
7 
Extractive Industries Transparency Initiative Act.” 
8 
9 
SEC. 2. Declaration of Principles. – All natural resources are 
10 
owned by Filipinos represented by the State. It shall be the responsibility 
11 
of the State to ensure that the present and future generations benefit from 
12 
these finite resources. The State must then establish a mechanism by 
13 
which the Filipino people are fully aware of how proceeds from their finite 
14 
resources are being utilized. 
15 
16 
SEC. 3. Definition of Terms. – 
17 
18 
a) Agreement means a contract between the Government and a
19 
Contractor, involving financial or technical matters;
20 
6950


 
4 
b) Contractor means a qualified person acting alone or in 
1 
consortium who is a party to a mineral agreement or to a financial 
2 
or technical assistance agreement; 
3 
 
4 
c) Extractive Industries refer to the mining, oil, gas and coal 
5 
sectors and all other sectors that require the extraction of non-
6 
renewable natural resources for commercial use; 
7 
 
8 
d) Financial or Technical Assistance Agreement (FTAA) means 
9 
a contract involving financial or technical assistance for large-
10 
scale exploration, development and utilization of mineral 
11 
resources; 
12 
 
13 
e) Independent Firm refers to an accounting or auditing firm that 
14 
has no existing relationship with either the Government or any of 
15 
the companies that are part of the Philippines-Extractive 
16 
Industries Transparency Initiative (PH-EITI); 
17 
 
18 
f) Mineral Production Sharing Agreement (MPSA) means an 
19 
agreement where the government grants to the contractor the 
20 
exclusive right to conduct mining operations within a contract 
21 
area and shares in the gross output. The contractor provides the 
22 
financing, technology, management and personnel necessary for 
23 
the implementation of the agreement; 
24 
 
25 
g) Multi-stakeholder Group (MSG) shall have the meaning given 
26 
to it under Section 14 of this Act; and 
27 
 
28 
h) State refers to the Republic of the Philippines. 
29 
 
30 
CHAPTER II 
31 
ESTABLISHMENT OF THE PHILIPPINE 
32 
EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATITVE 
33 
 
34 
SEC. 4. Creation of PH-EITI. – There is hereby created the 
35 
Philippine Extractive Industries Transparency Initiative (hereinafter 
36 
referred to as PH-EITI).  
37 
 
38 
SEC. 5. Composition. – The PH-EITI shall be composed of a broad 
39 
coalition of stakeholders, including representatives from the government, 
40 
the private sector, the indigenous community, and non-governmental 
41 
organizations.  The PH-EITI shall be governed by a multi-stakeholder 
42 


 
5 
body (hereinafter referred to as PH-EITI MSG), which shall be constituted 
1 
in accordance with the provisions of Chapter V of this Act. 
2 
 
3 
CHAPTER III 
4 
OBJECTIVES OF THE PH-EITI 
5 
 
6 
SEC. 6. General Objectives. – The general objective of the PH-
7 
EITI is to improve governance and management of the natural resources 
8 
in the country and ensure that all of what is due to the Filipino people and 
9 
the Government on account of the exploitation and/or extraction of the 
10 
country’s mineral, oil, gas and other natural resources are (a) verifiably 
11 
paid; (b) duly accounted for; and (c) judiciously utilized for the benefits of 
12 
all Filipinos and on the basis of intergenerational equity and sustainability. 
13 
  
14 
SEC. 7. Specific Objectives.  – The specific objectives of the PH-
15 
EITI shall include, but not be limited, to the following:  
16 
 
17 
a) 
Ensure sustained political commitment for the initiative and 
18 
mobilize resources to sustain its activities and goals; 
19 
 
20 
b) 
Require all companies engaged in the extraction of natural 
21 
resources to participate in such initiative; 
22 
 
23 
c) 
Promote genuine participation of civil society in the design, 
24 
implementation, evaluation and modification of policies and 
25 
actions of the Government associated with resource 
26 
governance in the Philippines; 
27 
 
28 
d) 
Implement and ensure compliance to the standards and 
29 
policies of the global initiative;  
30 
 
31 
e) 
Ensure that the initiative is effectively integrated in other 
32 
related government reform agenda; and 
33 
 
34 
f) 
Promote better understanding of the public on the nature of 
35 
extractive industries and the benefits of transparent and 
36 
accountable governance of our natural resources. 
37 
 
38 
CHAPTER IV 
39 
SCOPE AND FOCUS OF THE PH-EITI 
40 
 
41 
SEC. 8. Applicability. – This Act shall apply to all extractive 
42 
industries, government agencies at the national and local level in the 
43 


 
6 
country. National and local governments shall be mandatorily required to 
1 
participate in reporting relevant data pursuant to this Act. 
2 
 
3 
SEC. 9. Scope. – The scope of the PH-EITI shall include:  
4 
 
5 
a) Revenue transparency, which means the timely disclosure, 
6 
reconciliation or audit and publication of all data of material 
7 
national and local payments and revenues sourced from the 
8 
extractive activities covered by the scope of the PH-EITI;  
9 
 
10 
b) Contract transparency, which means public accessibility of all 
11 
concessions, contracts/licenses, agreements and joint ventures 
12 
that the Government enters into related to the extractive sectors 
13 
within the scope of the PH-EITI including related documents and 
14 
attachments to the contracts; and  
15 
 
16 
c) Accessibility of data, information and reports on the extractive 
17 
industries, which means public release of data, documents, and 
18 
information in a format that allows the public to freely use, re-use 
19 
and redistribute them, for any purpose, without restrictions. 
20 
 
21 
SEC. 10. Sectors Covered. –  For the purpose of this Act, the 
22 
following sectors shall be covered by and within the scope of the PH-EITI: 
23 
(a) the mining sector; (b) the oil and gas sector; (c) the coal sector; and 
24 
(d) such other sectors as the multi-stakeholder group may subsequently 
25 
determine and deem necessary.  The covered sectors shall submit 
26 
relevant data, including, but not limited, to the cost of their operations, 
27 
amount minerals sold, which shall be disaggregated per transaction, and 
28 
include such information as the name of the buyer/s, country of 
29 
destination, among others, and other related costs, which shall also be 
30 
disaggregated.  
31 
 
32 
SEC. 11. Annual Report. – The PH-EITI shall submit an annual 
33 
report to the President and Congress, in any case not later than April 30 
34 
of each year. The annual report to be prepared, submitted and published 
35 
by the PH-EITI shall comply with the international standards of EITI and 
36 
include additional reporting requirements as agreed upon by the PH-EITI 
37 
MSG. 
38 
 
39 
SEC. 12. Monitoring of Payments. – The payment and utilization 
40 
of taxes, fees, surcharges, and similar charges made by extractive 
41 
companies and/or contractors shall be closely monitored by the PH-EITI. 
42 
All fiscal payments and mandatory expenditures by contractors shall be 
43 


 
7 
disclosed to the PH-EITI MSG for the production of the annual EITI report. 
1 
National and local governments shall also submit a report on how the 
2 
proceeds from the extraction of resources were utilized. 
3 
 
4 
CHAPTER V 
5 
CREATION OF MULTI-STAKEHOLDER GROUP 
6 
 
7 
SEC. 13. Composition. – In accordance with the EITI International 
8 
Standards and with due regard to the Philippine context, there shall be 
9 
created a multi-stakeholder group (MSG) that will be in charge of PH-EITI.  
10 
The PH-EITI MSG shall be headed by a Chairperson to be appointed by 
11 
the President of the Philippines, who must be either: (1) a Cabinet 
12 
secretary, (2) the head of the interagency coordinating council on the 
13 
extractive sector, or (3) a presidential adviser. The functions of the 
14 
Chairperson shall include convening the group and organizing a 
15 
secretariat. 
16 
 
17 
The PH-EITI MSG shall consist of representatives from the following 
18 
sectors: 
19 
 
20 
a) Government Representatives. The government representatives 
21 
shall be composed of (1) senior officials from concerned agencies 
22 
appointed by the President of the Philippines, (2) representatives 
23 
from local government units, which shall be the president of the 
24 
leagues of various local government units; and (3) representatives 
25 
from the Congress, to ensure that the findings of the EITI will be 
26 
used for more effective and more responsive policies; 
27 
 
28 
b) Industry Representatives. The industry representatives shall be 
29 
composed of officials from the extractive industries included in the 
30 
EITI; 
31 
 
32 
c) Civil Society Organizations (CSOs) Representatives. The civil 
33 
society shall independently select their representatives in the EITI; 
34 
and 
35 
 
36 
d) Indigenous Peoples (IPs) Representatives. The IP representative 
37 
shall be selected by a caucus of IP organizations affected by mining 
38 
operations. 
39 
 
40 
Provided, that groups representing items (b), (c) and (d) above shall 
41 
designate a permanent and alternate representative to PH-EITI MSG. 
42 
Each organization, upon the decision of its members and through its 
43 


 
8 
independent process, can replace their representatives in the MSG any 
1 
time following their own governance mechanism. 
2 
 
3 
SEC. 14. Regular Meeting of PH-EITI MSG. – The PH-EITI MSG 
4 
shall meet once a quarter or as often as necessary. For urgent matters 
5 
where decision is needed, necessary information shall be circulated 
6 
through email so that decisions can be made electronically by consensus.  
7 
Fifty percent (50%) of the members, with at least one representative from 
8 
the government, CSOs, IPs, and business sector shall constitute a 
9 
quorum for the transaction of business of PH-EITI MSG. The MSG, shall, 
10 
in good faith, make decisions by consensus. 
11 
 
12 
SEC. 15. Annual Meeting of PH-EITI MSG Members. – The 
13 
members of PH-EITI MSG shall hold their annual meeting on the month 
14 
of April of each year.  The agenda of the meeting shall include, but not be 
15 
limited to, the approval of the activities, reports, accounts and the activity 
16 
plan of the PH-EITI, and any other acts or matters which may be brought 
17 
to the attention of the PH-EITI in pursuit of its mandate as provided under 
18 
this Act and relevant regulations. 
19 
 
20 
SEC. 16. Notice of Meetings. – The Chairperson shall call and 
21 
preside over the meetings. Notices shall be sent out by the PH-EITI 
22 
secretariat at least one week before the date of the meeting. The 
23 
secretariat shall handle the documentation and preparations of the 
24 
minutes of the meeting. 
25 
 
26 
SEC. 17. Review of the MSG. – The composition and number of 
27 
representatives shall be subject to regular review by the MSG. Other 
28 
agencies may form part of the MSG subject to the evolving needs and 
29 
scope of the EITI implementation; Provided, That all sectors should be 
30 
adequately represented in the MSG at all times; Provided further, That the 
31 
existing PH-EITI created under Executive Order No. 147, s. 2013 shall be 
32 
henceforth constituted under the provisions of this Act. 
33 
 
34 
CHAPTER VI 
35 
SECRETARIAT OFFICE AND FUNDING 
36 
 
37 
SEC. 18. PH-EITI Office. – There is hereby created the PH-EITI 
38 
Office under the Office of the President, to be headed by a National 
39 
Coordinator selected by the PH-EITI MSG. The staffing pattern, including 
40 
the 
duties, 
qualifications, 
responsibilities 
and 
functions, 
and 
41 
compensation scheme of the personnel of the PH-EITI Office shall be 
42 
determined by the MSG, upon the recommendation by the National 
43 


 
9 
Coordinator. For this purpose, the creation of the corresponding plantilla 
1 
positions is hereby authorized. 
2 
 
3 
SEC. 19. Funding. – The Congress shall allocate adequate funding 
4 
for the implementation of PH-EITI in the General Appropriations Act; 
5 
Provided, That the said amount shall not be less than the amount 
6 
equivalent to one percent to two percent (1% to 2%) of the gross proceeds 
7 
of the sectors covered by and within the scope of the PH-EITI, as defined 
8 
in Section 10 of this Act. 
9 
The PH-EITI Office shall have the authority to receive, disburse, and 
10 
manage financial aid or grants from foreign and domestic entities to be 
11 
utilized for the implementation of the objectives of PH-EITI, subject to the 
12 
usual accounting and auditing rules and regulations of the government. 
13 
 
14 
CHAPTER VII 
15 
EXEMPTION FROM CONFIDENTIALITY CLAUSES 
16 
 
17 
SEC. 
20. 
Exemption 
from 
Confidentiality 
Clauses. 
– 
18 
Confidentiality provisions stated under applicable laws, including, but not 
19 
limited, to the provisions of Section 270 of the National Internal Revenue 
20 
Code, Article 81 of the Omnibus Investments Code, among others, shall 
21 
not be applicable to extractive companies insofar as their participation in 
22 
the PH-EITI process is concerned. 
23 
 
24 
CHAPTER VIII 
25 
PENALTIES 
26 
 
27 
SEC. 21. Penalties. – Failure to participate in PH-EITI shall be a 
28 
ground for suspension of the contractor’s permit to operate and 
29 
blacklisting for future projects. A contractor that, without justifiable cause, 
30 
unreasonably delays or causes the delay of submission of the reporting 
31 
template within the deadline set by PH-EITI, shall be imposed a fine of 
32 
One Million Pesos (Php1,000,000.00). Sanctions provided under this Act 
33 
shall be imposed by the responsible regulatory agency, as the case may 
34 
be, pursuant to the concerned agency’s internal rules and regulations. 
35 
 
36 
CHAPTER IX 
37 
TRANSITORY AND MISCELLANEOUS PROVISIONS 
38 
 
39 
SEC. 22. Implementing Rules and Regulations. – Within sixty 
40 
(60) days from the effectivity of this Act, the Secretaries of Finance, 
41 
Budget and Management, Environment and Natural Resources, Interior 
42 
and Local Government, and Energy, in consultation with relevant 
43 


 
10 
stakeholders, shall promulgate the necessary rules and regulations for the 
1 
effective implementation of this Act. 
2 
 
3 
SEC. 23. Separability Clause. – If any provision of this Act is 
4 
declared unconstitutional or invalid, other parts or provisions hereof not 
5 
affected thereby shall continue to be in full force and effect. 
6 
 
7 
SEC. 24. Repealing Clause. – All laws, decrees, executive orders, 
8 
rules and regulations or parts thereof which are contrary to or inconsistent 
9 
with this Act are hereby repealed, amended or modified accordingly; 
10 
provided, that nothing in this Act shall be construed as a diminution of 
11 
local autonomy or in derogation of ancestral domain rights under the 
12 
Indigenous Peoples’ Right Act of 1997. 
13 
 
14 
SEC. 25. Effectivity. – This Act shall take effect fifteen (15) days 
15 
after its publication in this Official Gazette or in any two newspapers of 
16 
general circulation. 
17 
 
18 
 
Approved, 
19