Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SEVENTEENTH CONGRESS
Second Regular Session

7209

Introduced by: “KUYA” JOSE ANTONIO R. SY-ALVARADO-

HOUSE BILL NO.

EXPLANATORY NOTE

Siargao is a tear-drop shape island in the Philippine Sea situated 800 kilometers southeast of
Manila in the province of Surigao del Norte. It has a land mass of approximately 437 square kilometres. It
is also composed of different municipalities namely; Burgos, Del Carmen, General Luna, San Benito, San
Isidro, Santa Monica, Socorro, Dapa and Pilar.

Siagao island is a great destination spot for local and international tourist. It contains the largest
mangrove forest and white sand beaches that tourists love. It is also a great place for surfers. This island
can be truly classified as a paradise for families and individuals who wants to escape from the busy streets
of the metro,

‘The economic progress and development of this island can be achieved with the assistance of the
‘National Government. This bill seeks to convert the land from the shore lines of the main island of Siargo
info a commercial, residential, and tourist areas, This bill also seek to establish the Siargao Development
Authority to manage the improvement that will be introduce to the island.

In consideration of the foregoing premises, the passage of the bill is urgently sought.

ae

“KUYA” JOSE ANTONIO R. SY-ALVARADO
/ Representative
First District of Bulacan


Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

7209

HOUSE BILL NO.

Introduced by: “KUYA” JOSE ANTONIO R. SY-ALVARADO-

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.

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:

2.) 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;

¢.) 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

4.) 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:

‘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;
1. 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;
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. Capitatization. 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

Ser aveene

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 ("DABFAR");

.) 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 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;

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

4.) 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,

¢.) 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 1. 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,

¢.) 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.

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

¢.) Execute and administer the policies and measures approved by the
Board;


4.) 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,

¢.) 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

.) Perform such other functions that the Board may direct to carry out the provisions of this Act.

CHAPTER IT
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 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,

(©) 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,

(@) 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 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;

(©) 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;

() 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 concemed.

‘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.

(b) 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

() 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 SANCTULARY 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 ("BF AR") of the Department of Agriculture
("DA"), the

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 beliable for prosecution under the Republic Act No. 3019, otherwise
known as the "Anti-Graft and Corrupt Practices Act" and Republic Act No. 6713, 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 Aét shall take effect immediately after its publication in the Official
Gazette or in two (2) newspapers of g€neral circulation.

Approved,