FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
Second Regular Session 
1 
SENATE 
S.No. 3260 
Y 
. . 
~ ~ ~ : ~ : i v ~ ~ ~ ~
9~ 
I -. 
Introduced by Senator Richard J. Gordon 
EXPLANATORY NOTE 
Art. XII, Section 1 of the Constitution provides that the State shall promote 
industrialization and full employment based on sound agricultural development and agrarian 
reform, through industries that make full and efficient use of human and natural resources, 
and which are competitive in both domestic and foreign markets. In the pursuit of these 
goals, all sectors of the economy and all regions of the country shall be given optimum 
opportunity to develop. Private enterprises, including corporations, cooperatives, and similar 
collective organizations, shall be encouraged to broaden the base of their ownership. 
In 1992, Executive Order No. 512 created the Mindanao Economic Development 
Council (MEDCo) to serve the functions of promoting the socio-economic development of 
Mindanao through a wholistic and integrative coordination of all active sectors in the island's 
economy. 
With a land area of 102,043 square kilometers and occupying one-third of the 
Philippines' total land area, Mindanao is strategically located within the East Association of 
Southeast Asian Nations (ASEAN) region. It is almost equidistant to the eastern sections of 
Indonesia, Malaysia and Brunei Darussalam. This key geographic location underscores its 
potential to be a major transshipment point and center of trade in the region. 
Mindanao's rich soil accounts for bountiful harvests of a variety of farm products. It 
grows most of the Philippines' major crops such as rubber (100% of national production), 
pineapple (91%), cacao (90%) as well as banana, coffee, corn and coconut (over 50%). The 
island also produces exotic fruits like pomelo, mangosteen and durian. Mindanao accounts 
for over 40% of the Philippines' food requirements and contributes more than 30% to the 
national food trade. The island's evenly distributed tropical climate makes it ideal for year- 
round crop production. 
Mindanao is likewise endowed with rich mineral resources. Its metallic deposits 
include lead, zinc, ore, iron, copper, chromite, magnetite and gold. Gold mined in Mindanao 
accounts for nearly half of the national gold reserves. Its non-metallic mineral resources 
include marble, salt, sand, gravel, silica, clay, and limestone. 
Cultural diversity and the island's natural beauty make Mindanao one of Asia's 
favored tourist destinations. White sand beaches, scenic volcanoes, vast orchid gardens, 
and various ethnic festivals are only some of its unique tourist attractions. 


Mindanao's economy grew at an average of 3% in 1995-1997. This dipped to 0.5 YO 
in 1998 due to the Asian financial crisis but improved to nearly 2% in 1999. Its Gross 
Regional Domestic Product (GRDP) in 2000 grew a noteworthy 4.95%, higher than the 
national growth rate of 4.01%. This was due to the bullish performance of its agriculture 
sector (5.84%) and industry sector (5.09%). 
However, decades of armed conflict have taken its toll on Mindanao. Overall, the 
overlay of conflict areas with poverty incidence in the country shows that 45% of 
consistently poor provinces are in Mindanao. 
In order to effect a serious and comprehensive long-term program for socio- 
economic development, commensurate to the demands of 
the passage 
of this measure is earnestly sought. 
2 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
Second Regular Session 
1 
,fs$l$i<.i i,,: , .::- ;::,,,!. L 
I - ' &  
< 
9 
NAY 19 P 2 3 4  
SENATE 
S. No. 
~
~
~
~
~
AV : 
I/ 
Introduced by Senator Richard J. Gordon 
AN ACT 
CREATING THE MINDANAO ECONOMIC DEVELOPMENT AUTHORITY (MEDA), 
DEFINING ITS POWERS AND FUNCTIONS, AND PROVIDING FUNDS THEREFOR, AND 
FOR OTHER PURPOSES 
Be if enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. -This Act shall be known as the "Mindanao Economic 
Development Authority (MEDA) Act of 2009." 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to 
accelerate the socio-economic growth and development of Mindanao, by encouraging and 
increasing trade, tourism and investments, encouraging private enterprise, and advancing 
efforts towards peace and development. Towards this end, an effective institutional 
mechanism shall be established to address the need for a coordinative and integrative 
approach for the formulation and implementation of various Mindanao-wide, Mindanao- 
specific interregional development plans, programs and projects. The government shall 
furthermore undertake efforts to promote the active participation of Mindanao and Palawan 
in the Brunei Darussalam-Indonesia-Malaysia-Philippines-East ASEAN Growth Area (BIMP- 
EAGA). 
SEC. 3. Creation of the Mindanao Economic Development Authority. -The 
Mindanao Economic Development Authority, hereinafter referred to as the Authority, is 
hereby created, which shall promote, coordinate, and facilitate the active and extensive 
participation of all sectors to effect the socio-economic development of Mindanao. It shall 
also act as an implementing agency for Mindanao-specific interregional and Mindanao-wide 
programs and projects, whenever necessary. 
IX, X, XI, XII, Caraga and the Autonomous Region in Muslim Mindanao (ARMM). 
SEC. 4. Coverage. -The Authority shall cover all the provinces and cities of Regions 
3 


1 
2 
3 
4 
5 
6 
I 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
21 
28 
29 
30 
31 
32 
33 
SEC. 5. Principal Office and Term. - The Authority shall have its main office at 
Davao City. It may establish area management offices (AMOS) as it may deem necessary 
to achieve the objectives of this Act. The Authority shall have a term of fifty (50) years from 
the effectivity of this Act, renewable for the same period unless otherwise provided by law. 
SEC. 6. Powers and Functions of MEDA. -In the exercise of those activities which 
are Mindanao-wide andlor Mindanao-specific in character, the Authority shall have the 
following powers and functions: 
(a) Formulate an integrated development framework for Mindanao that is consistent with 
the peace initiatives of the National Government; 
(b) Integrate, prioritize, and program Mindanao-wide, interregional and region- specific 
programs, activities and projects with Mindanao-wide impact; 
(c) Advocate to the constituents of Mindanao, their elected representatives in Congress, 
and the National Government, national policies that will foster the integrated and 
balanced development of Mindanao; 
(d) Promote and facilitate investments in any field which would enhance the socio- 
economic development of Mindanao and uplift the living standards of the people and 
their socio-political activities in .close coordination with agencies primarily mandated 
to undertake such function: 
(e) Explore sources for financing priority Mindanao-wide andlor Mindanao-specific 
interregional programs, projects and activities: 
(f) Coordinate and facilitate the extension of necessary planning, management, and 
technical assistance to prospective and existing investors, complementary and in 
support of agencies primarily mandated to execute such functions; 
(9) Establish a comprehensive and integrated databases on Mindanao and BIMP-EAGA 
necessary for planning and decision-making; 
(h) Monitor, evaluate and formulate recommendations on the implementation of 
Mindanao-wide andlor Mindanao-specific inter-regional development programs, 
activities and projects; 
(i) Act as the implementing agency, whenever necessary, for the accomplishment of 
Mindanao-specific interregional or Mindanao-wide programs and projects, including 
Official Development Assistance (ODA) projects, subject to such limitations 
prescribed by existing laws, rules, and regulations; 
(j) Provide strategic direction for Mindanao; 
4 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
(k) Oversee mega infrastructure programs and projects with Mindanao-wide impact 
(I) Establish appropriate mechanisms to ensure the timely implementation of 
Mindanao-wide and Mindanao-specific interregional projects, whenever necessary, 
including, but not limited to public-private partnership; 
such as the Mindanao Super Region Program; 
(m) Review and recommend for approval by the National Economic Development 
Authority (NEDA) Board such Mindanao-wide and Mindanao-specific inter-regional 
programs, projects, and plans by the national government and donor agencies 
subject to existing laws, rules and regulations; 
(n) Act as the official and permanent Philippine Coordinating Office for BIMP-EAGA 
(PCOBE) and as lead agency of the government in coordinating the formulation and 
implementation of policies and programs and monitoring of all activities related 
thereto; 
(0) 
Represent and strengthen the participation of the Philippine focus areas for BIMP- 
(p) Closely coordinate with the private sector in all policy deliberations concerning BIMP- 
EAGA which are Mindanao and Palawan; 
EAGA; 
(9) Act as a data bank for BIMP-EAGA and other related data by collecting, 
consolidating and processing data and analyzing the resulting information and 
thereafter disseminating the information gathered to various groups; 
(r) Initiate and coordinate the establishment of BIMP-EAGA desks in concerned national 
(s) Undertake advocacy for the adoptionlapproval of new policies or policy changes and 
agencies, local government units and private enterprises; 
the promotion of initiatives for the growth of the BIMP-EAGA; 
(t) Formulate and develop new plans andlor programs for the Philippine participation in 
the BIMP-EAGA based on the consensus of the BIMP-EAGA Clusters and Working 
Groups, andlor Heads of State; Signing Ministers and Senior Officials; 
(u) Initiate and facilitate sourcing of technical and other forms of assistance to BIMP- 
(v) Monitor developments in the BIMP-EAGA and follow through agreements entered 
EAGA projects initiatives; 
into by the Philippine parties; 
5 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
(w) Ensure efficient and effective technical and administrative support services for the 
Philippines' BIMP-EAGA operations and coordinate budgetary requirements for this 
purpose; 
(x) Engage or invest on or enter into joint venture with Filipino and foreign investors in 
such Mindanao-wide andlor interregional projects as it may deem proper and 
necessary or contributory to the economic development of Mindanao; 
(y) Receive and administer donations, contributions, grants, bequest or gifts in cash or 
in kind from foreign governments, international agencies, private entities, and other 
sources, including ODA agencies, for purposes that would contribute to the 
development of Mindanao, subject to existing laws, rules and regulations; 
(z) To sue and be sued, enter into contracts, acquire, purchase, hold, lease, transfer, 
dispose of property of any kind or nature necessary to carry out the purposes of this 
Act; 
Discharge other functions which may be deemed necessary or as may be 
provided by law. The Authority, through the MEDA Chairperson, shall submit to the 
President and both Houses of Congress annual reports on its accomplishments and 
activities. 
SEC. 7. Chairperson. - The MEDA Chairperson, hereinafter referred to as the 
Chairperson, shall be appointed by the President of the Philippines with a cabinet rank and 
shall act as the head of office. Helshe shall serve a term of six (6) years from the date of his 
appointment unless removed for cause. Helshe shall also be the Philippine Senior Official 
for BIMP-EAGA. Helshe shall likewise be a member of the NEDA Board. 
The Chairperson shall have the following duties and functions: 
(a) Call and preside at the meetings of the MEDA Advisory Board and see to it that the 
policies, programs, and rules and regulations developed and promulgated by it are 
implemented properly; 
(a4 
(b) Call on development players in the formulation and implementation of a 
comprehensive and integrated development plan for Mindanao, investment 
programs including the preparation of a system of investment programming 
priorities, annual reports and other pertinent documents approved by the MEDA; 
(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, 
whenever necessary; 
6 


1 
2 
and stakeholders; 
3 
4 
5 
6 
7 
8 
9 
and projects for approval; 
10 
11 
12 
13 
and Palawan in BIMP-EAGA; 
14 
15 
16 
17 
Authority; 
18 
19 
20 
thereon; 
21 
22 
Board; 
23 
24 
25 
26 
Service Commission; 
27 
28 
29 
private: 
30 
31 
32 
from the Authority; 
(d) Advocate the Authority’s work for Mindanao among the various concerned sectors 
(e) Call on any agency, group, individual member of the Board, local government unit, 
and host community to address issues and concerns relating to the implementation 
of major programs, projects and activities: 
(f) Supervise the monitoring and timely implementation of Mindanao-wide andlor 
Mindanao-specific inter-regional programs, projects and activities; 
(9) Endorse to the MEDA Advisory Board all policy recommendations, plans, programs, 
(h) Represent the MEDA Advisory Board in regular and Special Cabinet Meetings; 
(i) Convene the BIMP-EAGA Advisory Board to discuss issues and concerns, and 
recommend policies and programs to ensure the widest participation of Mindanao 
(j) Accept, in behalf of the MEDA, donations, contributions, grants and bequests or 
gifts, in cash or in kind, from members, foreign governments, international offices, 
private entities or any individual for purposes that will realize the functions of the 
(k) Supervise administrative operations including disbursement of any fund of the 
MEDA subject to usual accounting and auditing procedures, and submit reports 
(I) Execute and administer the policies and measures approved by the MEDA Advisory 
(m) Appoint all employees of the Authority, and remove, dismiss or otherwise discipline 
for cause, such employees in accordance with the standard guidelines for 
recruitment, employment, and discipline under the rules and regulations of the Civil 
(n) Represent the Authority in all dealings with other offices, agencies, and 
instrumentalities of the Government and with all persons and entities, public or 
(0) Sign agreements andlor contracts in behalf of the Authority, including those of 
accountabilities for expert and consultant services and other reports emanating 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
(p) Perform such other functions that the MEDA Advisory Board may direct to carry out 
the provisions of this Act. 
SEC. 8. Executive Director. - An Executive Director shall be appointed by the 
President of the Philippines upon recommendation by the Chairperson. Helshe shall 
possess the requisite eligibilities for third (3rd) level career service position. Helshe shall 
assist the Chairperson in carrying out the functions of Authority and shall likewise serve as 
the Secretary of the MEDA Advisory Board. 
SEC. 9. MEDA Advisory Board. -The Authority's overall directions and thrusts shall 
be provided and approved, unless provided otherwise in this Act, by the MEDA Advisory 
Board, hereinafter referred to as the Board. It shall be composed of the following members: 
a) The MEDA Chairperson; 
b) The Chairpersons of the Regional Development Councils (RDCs) of Regions IX, X, 
XI, XI1 and XIII, and the Regional Economic Development and Planning Board 
(REDPB) of ARMM; 
c) The Chairperson of the House Committee on Mindanao Affairs; 
d) The Chairperson of the House Committee on BIMP-EAGA Affairs; 
e) The Vice President for Mindanao of the Union of Local Authorities of the Philippines 
(ULAP); 
9 The President of the Mindanao Confederation of Governors', City Mayors' and 
Municipal Mayors' League Presidents; 
g) The Administrator of the Southern Philippines Development Authority (SPDA); and, 
h) The three (3) representatives from the Private Sector to be appointed by the 
President, upon the recommendation of the Chairperson and Board members, 
comprising of one representative each from the: 
I. 
Mindanao Business Sector 
ii. 
Mindanao Academe Sector 
iii. 
Members of the Board shall receive a per diem of not more than Five Thousand 
Pesos (P5,OOO) for every board meeting: Provided, however, that the per diem 
collected per month does not exceed the equivalent of four (4) meetings. Provided, 
further, that the amount of per diem for every board meeting may be increased by 
the President but such amount shall not be increased within two (2) years after its 
last increase. 
Mindanao Non-Government Organization (NGO) Sector 
8 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
I 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
The Board shall have the following functions: 
a) Provide direction and guidance for the Authority's work and thrusts for Mindanao; 
b) Ensure that the goals and policies of the Authority are consistent with the overall 
national development goals and objectives; 
c) Ensure that the programs of the Authority are consistent with regional and local 
development plans, program and projects, and vice versa for purposes of 
harmonization; 
d) Explore sources for financing of priority Mindanao-wide and/or Mindanao- 
specific inter-regional plans, programs, projects and activities; 
e) Create committeesltask forces as may be deemed necessary in the 
accomplishments of its duties and functions; 
9 Determine schedules, establish voting procedures, criteria for the constitution of 
a quorum, and other rules and regulations in the conduct of Board meetings: and 
g) Perform such other functions as may be necessary to carry out the purposes of 
this Act. 
SEC. I O .  Executive Committee. - The Board shall constitute an Executive 
Committee, hereinafter referred to as the Execom, from among its membership to act for 
and on its behalf when the Board is not in session, on urgent matters as may be deemed 
necessary by the Chairperson. To ensure inter-regional representation and participation, the 
following shall comprise the Execom: 
(a) The MEDA Chairperson 
(b) The Chairpersons of the RDCs and REDPB 
(c) The Representative from the Mindanao Business Sector 
(d) The Representative from the Mindanao Non-Government Organization (NGO) 
Sector The Executive Director, as the Board Secretary, shall provide technical 
assistance to the Execom. 
SEC. 11, BIMP-EAGA Advisory Board, - There is hereby constituted a BIMP- 
EAGA Advisory Board to be composed of the following: 
(a) The MEDA Chairperson as Head; 
(b) Chairpersons of the RDCs of Regions IX, X, XI, XI1 and XIII, and REDPB of 
ARMM; 
(c) The City Mayor of Puerto Princesa; 
(d) The Provincial Governor of Palawan; and, 
9 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
(e) Two Philippine Country Representatives to the BIMP-EAGA Business Council 
(BEBC). 
The BIMP-EAGA Board shall convene, from time to time, to discuss issues and 
recommend policies and programs to ensure the widest participation of Mindanao and 
Palawan in the activities of BIMP-EAGA. It shall make recommendations to the 
Chairperson, being the Head of the PCOBE. The PCOBE, in consultation with the BIMP- 
EAGA Board, will draw up its own procedures for making recommendations, finalizing 
decisions and overseeing implementation of BIMP-EAGA activities in Mindanao and 
Palawan. 
SEC. 12. Organizational Structure. - The Chairperson shall determine the 
organizational structure, staffing pattern, and pay scales of the Authority subject to existing 
civil service and compensation laws. The Chairperson may reorganize the Authority and 
may create or abolish divisions, units, or branches therein as the exigencies of the affairs of 
the Authority may require. 
SEC. 13. Transitory Provisions. - The Mindanao Economic Development Council 
(MEDCo), created under Executive Order 512, and Executive Order 244, as amended, is 
hereby abolished. 
The unexpended appropriations of the abovementioned agency are hereby 
transferred to the MEDA including its existing records, properties, equipment, facilities and 
other assets. 
The MEDA shall absorb the existing plantilla positions and incumbent staff of the 
MEDCo who shall continue to perform their respective duties and responsibilities and 
receive the corresponding salaries and benefits, in the fulfillment of the powers and 
functions of the MEDA. 
SEC. 14. Appropriations. - The amount necessary to finance the initial 
implementation of this Act shall be charged against the current year's appropriations of 
MEDCo. Thereafter, the current budget shall be increased by loo%, which amount shall be 
included in the Annual General Appropriations Act (GAA) for its continued implementation. 
The current appropriations of MEDCo shall be transferred to the MEDA to commence its 
activities. 
SEC. 15. Repealing Clause. - All laws, decrees, executive orders, rules and 
regulations, or parts thereof inconsistent with or contrary to the provisions of this Act are 
hereby repealed or modified accordingly. 
10 


I 
2 
3 
4 
5 
6 
Approved, 
SEC. 16. 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. 
SEC. 17. Effectivity. - This Act shall take effect fifteen (15) days following 
completion of its publication in at least two (2) newspapers of general circulation. 
11