FOURTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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S E N A T E  
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Senate Bill No. 5 5 5 
INTRODUCED BY SEN. JINGGOY EJEFiClTO ESTRADA 
EXPLANATORY NOTE 
The barangay has been historically viewed as a mere political unit tasked 
to organize the political life of a community. 
employment and income for its members, notably the unemployed. 
The barangay must now assume a more activist role in generating 
This bill seeks to empower the barangay by conferring upon it the right to 
participate with the right of fjrst refusal in all programs and projects, notably those 
concerning the delivery of basic services affecting its jurisdiction and members. 
By giving the barangay such right, it would be able to generate 
Immediate passage of this bill is earnestly sought. 
employment for its members. 
AGGO~EJERCITO 
ESTRADA 


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FOURTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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First Regular Session 
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S E N A T E  
Senate Bill No. 555 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
AUTHORIZING BARANGAYS TO ENTER INTO OFFICIAL CONTRACTS WITH 
NATIONAL GOVERNMENT AGENCIES AND LOCAL GOVERNMENT UNITS 
TO UNDERTAKE THE DELIVERY OF BASIC SERVICES FOR THE PURPOSE 
OF PROVIDING EMPLOYMENT TO BARANGAY RESIDENTS AND FOR 
OTHER PURPOSES 
Be if enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Title - This Act shall be known and cited as "The Barangay 
Economic Empowerment Act of 2007." 
SEC 2. Declaration of Policy- It is the policy of the State to transform the 
barangay into a self-reliant economic unit generating employment for its 
members and actively participating in publicly funded programs intended for the 
barangay. 
SEC 3. Coverage - All basic services being contracted out by the national 
government and local government units with private or public contractors and 
which affect the barangays are covered by this Act: Provided, however, That the 
amount of the basic services to be contracted out to the barangay shall not be 
more than One Million Pesos (PI ,000,000.00). 
SEC 4. Rigbt of First Refusal - The provisions of the Local Government 
Code and other laws to the contrary notwithstanding, local government units and 
national government agencies sh all give priority to the affected barangay in 
contracting out the delivery of basic services intended for or affecting said 
barangay. Such barangay shall have the right of first refusal before the project is 
bidded out. 
SEC 5. Basic Services - For purposes of this Act, basic services 
programs in which the affected barangay shall have priority right to undertake 
shall include: 
a) 
Implementation of community-based forestry programs and 
similar projects; management and control of communal forest 


with an area not exceeding fifty (50) square kilometers; 
establishment and maintenance of tree parks, green belts, and 
similar forest development project; 
Maintenance of community-based rehabilitation programs for 
vagrants, beggars, street children, scavengers, delinquents, and 
victims of violence and drug abuse; livelihood projects; 
Solid waste disposal system or services related to general 
hygiene and sanitation; 
Maintenance of public buildings, public parks, playgrounds and 
government sports facilities; 
Maintenance of roads, drainage systems, communal irrigation, 
small water impounding and othei- similar projects; seawalls, 
dikes, flood control; and street signage; 
Maintenance of public markets and slaughterhouses; 
Maintenance of public cemetery; 
Maintenance of tourism facilities and securing such facilities; 
and 
Other analogous undertakings. 
SEC 6. Preference of Barangay Labor and Materials - In the event that 
the barangay concerned is unable for any reason to participate in any project 
within its jurisdiction and/or affecting its residents, the local government unit or 
national government agency concerned shall exert every effort to source its labor 
and materials from within the affected barangay. 
SEC 7. Mode of Payment - A certification duly executed and signed by 
the chairman of the affected barangay and concurred in by the authorized 
signatory for the local government unit or national agency concerned shall form 
the basis of all claims for payment to the barangay. 
SEC 8. Unlawful Act - Any public official who bids and/or contracts out 
the delivery of basic services, as provided in Section 5 hereof, intended for or 
affecting a barangay without giving the affected barangay the opportunity to 
exercise its right of first refusal shall, upon conviction, be punished with 
imprisonment for not less than one (1) year and one (1) day to six (6) years and 
shall be immediately dismissed from the service. In addition, the public officer 
shall be liable to reimburse to the affected barangay an amount equal to what 
would have been realized by the barangay were it accorded its right under this 
Act. 
SEC 9. Implementing Rules and Regulafions - The Department of 
Interior and Local Government shall, within ninety (90) days from the effectivity of 
this Act, promulgate the appropriate rules and regulations for its effective 
implementation. 


SEC I O .  Repealing Clause - All laws, executive orders, administrative 
rules and regulations inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly. 
SEC 11. Effectivity Clause - This Act shall take effect fifteen (15) days 
after the completion of its publication in at least two (2) newspapers of general 
publication. 
Approved,