THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
OF THE PHILIPPINES 
S E N A T  
S. No. 
Introduced by Senator S. R. OsmeAa 111 
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EXPLANATORY NOTE 
Article XI Sec. 1 I 
of the 1987 Constitution provides that “The Congress 
may, by law, create special metropolitan political subdivisions, subject to a 
plebiscite, The jurisdiction of the metropolitan authority that will thereby be 
created shall be limited to basic services requiring coordination. 
Pursuant 
thereto, this bill seeks to create a special political subdivision to be known as the 
Metropolitan Cebu. 
Over the years, Cebu has developed into a bustling metropolis. It is 
second to Metro Manila in terms of level of urbanization and economic growth. 
As in any other urbanized area, the demands for more effective delivery of basic 
services is tremendous. 
Immediate response to these needs is key to a 
sustained development of the Metropolitan Cebu Area. This bill therefor proposes 
the creation of an entity that will coordinate and best administer the efficient 
delivery of basic services. 
In view of the foregoing, early passage of this bill is earnestly requested. 
h, 
SERGIO OSMENA 111 
Senator 
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THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
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S E N A T  
S. No. 
Introduced by Senator S. R. OsmeAa 111 
AN ACT 
CREATING METROPOLITAN CEBU, ESTABLISHING THE METROPOLITAN 
CEBU DEVELOPMENT AUTHORITY, 
DEFINING ITS 
POWERS AND 
FUNCTIONS PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES ‘ 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
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SECTION I. 
Declaration OF Policies.- It is the declared policy of the 
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State to accelerate the improvement of the physical, economic and social 
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structure of local government units and consistent therewith, services and 
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SECTION 2. Creation and Jurisdiction of Metropolitan Cebu: the 
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Metropolitan Cebu Development Authority.- There 
is 
hereby 
created 
a 
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special metropolitan political subdivision to be known as Metropolitan Cebu, 
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embracing the cities of Cebu, Mandaue, Lapu-Lapu and Talisay and the 
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Municipalities of Cordova, Consolacion, Liloan, Compostela, Minglanilla and 
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Naga. 
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The affairs of Metropolitan Cebu shall be administered by the Metropolitan 
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Cebu Development Authority, hereinafter referred to as “MCDA”. 
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SECTION 
3. Scope of MCDA Services.- The MCDA shall primarily 
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render services that have metro-wide impact, transcending local political 
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boundaries of entailing huge expenditures, such that it would not be viable for 
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said services to be provided by the individual local government units (LGUs) 
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comprising Metropolitan Cebu. These services shall include: 
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a) Development planning that includes the preparation of medium and 
long term development plans, the development and evaluation projects and 
investment programs, the coordination of plans, programs and projects, and the 
monitoring and evaluation of the progress and effects of project implementation; 
b) Transport and traffic management designed to promote the safe and 
convenient movement of persons and goods, which shall include the formulation, 
coordination, and monitoring of policies, standards, programs and projects to 
rationalize transport and traffic management operations and services, their 
infrastructure requirement, provisions for the mass transport system and the 
institution of a system to regulate road users; 
c) Solid waste disposal and management that includes the formulation 
and implementation of policies, standards, programs and projects for proper 
sanitary waste disposal. It shall likewise include the establishment and operation 
of sanitary land fill and related facilities and implementation of other alternative’ 
programs intended to reduce, reuse and recycle solid waste; 
d) Flood control and sewerage management that includes the formulation 
and implementation of policies, standards, programs and projects for an 
integrated flood control, drainage and sewerage system; 
e) Urban renewal, zoning and land use planning, and shelter services that 
shall include the formulation, adoption and implementation of policies, guidelines, 
standards, rules and regulations, programs and projects to rationalize and 
optimize urban land use and provide direction to urban growth and expansion, 
the rehabilitation and development of slum and blighted areas, the development 
of shelter and housing facilities and the provision of necessary social services; 
f) Health and sanitation and environment pollution control that includes 
the formulation and implementation of policies, rules and regulations, standards, 
programs and projects for the promotion and safeguarding of the health and 
sanitation of the region and for the enhancement of ecological balance; 
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g) Public safety that includes the formulation and implementation of 
programs and policies and procedures to achieve public safety, especially 
preparedness for preventive or rescue operations during times of calamities and 
disasters such as conflagration, earthquakes, flood and tidal waves, and 
coordination and mobilization of resources and the implementation of 
contingency plans for the rehabilitation and relief operations in coordination with 
national agencies concerned. 
SECTION 4. Metro Cebu Council.- The governing board and policy 
making body of the MCDA shall be the Metro Cebu Council, hereinafter referred 
to as the “Council”, composed of the mayors of the cities and municipalities 
enumerated in Section 2 hereof and two (2) representatives from the private 
sector to be appointed by them. 
The heads of the Department of Transportation and Communications 
(DOTC) Department Works and Highways (DPWH), Department of Tourism 
(DOT), Department of Budget and Management (DBM), Housing and Urban 
Development Coordinating Committee (HUDCC), and Philippine National Police 
(PNP) or their duly authorized representatives, shall attend meetings of the 
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council as non-voting members. 
The Council shall be headed by a Chairman who shall be annually elected 
from among its members, including the private sector representatives, He shall 
be vested with the rank, rights and privileges, and subject to the disqualifications 
and prohibitions of a cabinet member. 
The Chairman shall be assisted by a general manager, an assistant 
general manager for finance and administration, an assistant general manager 
for planning and an assistant general manager for operations, all of whom shall 
be appointed by the President with the consent and concurrence of the majority 
Council, subject to civil service laws, rules and regulations. They shall enjoy 
security of tenure and may be removed only for cause in accordance with law. 
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The chairman and members of the Council shall be entitled to allowances 
and per diems in accordance with existing policies, rules and regulations. 
SECTION 5. Functions and Powers of the Metro Cebu Development 
Authority.- The MCDA shall have the .following functions and powers: 
a) Formulate, coordinate and regulate the implementation of medium and 
long-term plans and programs for the delivery of metro-wide services, land use 
and physical development within Metropolitan Cebu, consistent with national 
development objectives and priorities; 
b) Prepare, coordinate and regulate the implementation of medium-term 
investment programs for metro-wide services which shall indicate the sources 
and used of funds for priority programs and projects, and shall include the 
packaging of projects and their presentation of funding institutions; 
c) Undertake and manage, through appropriate project management 
offices it may create, metro-wide programs and projects for the delivery of 
specific services under its jurisdiction, subject to the approval of the Council; 
d) Coordinate and monitor the implementation of such plans, programs 
and projects in Metro Cebu; identify bottlenecks and adopt solutions to problems 
of implementation; Promulgate policies concerning traffic in Metro-Cebu and 
coordinate and regulate the implementation of all programs and projects 
concerning traffic operation, enforcement and management and other activities 
and undertakings allied thereto; 
e) Install and administer a single ticketing system, fix, impose and collect 
fines and penalties for all kinds of violations of traffic rules and regulations, 
whether moving or non-moving in nature, and confiscate and suspend or revoke 
drivers licenses in the enforcement of such traffic laws and regulations, the 
provisions of Republic Act No. 4136 and Presidential Decree No. 1605 to the 
contrary notwithstanding. For this purpose, the Authority shall enforce all traffic 
laws and regulations in Metro Cebu, through its traffic operation center, and may 
deputize members of the PNP, traffic enforces of all local government units, duly 
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licensed security guards, or members of non-governmental organizations to 
whom may be delegated certain authority, subject to such conditions and 
requirements as the Authority may impose; 
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9 Assess, levy and collect fees and charges for the use of facilities or 
services rendered and impose such fines as it may deem necessary and proper 
in connection therewith; 
g) Perform other related functions required to achieve the objectives of 
MCDA, including the undertaking of delivery of basic services to the local 
government units when deemed necessary, subject to prior coordination with 
and consent of the local government unit concerned. 
SECTION 6. Function of the Metro Cebu Council.- The Council shall 
have the following powers and functions: 
a) Approve metro-wide plans, programs and projects and issue rules and 
regulations and resolutions deemed necessary by the MCDA to carry our the 
purposes of this Act; 
b) Increase the rate of allowance and per diems of the members of the 
Council to be effective during the term of the succeeding Council: 
c) Fix the compensation of the officers and personnel of the MCDA, and 
approve the annual budget thereof for submission to the (DBM); and 
d) Promulgate rules and regulations and set policies and standards for 
metro-wide application governing the delivery of basic services, the assessment, 
levy and collection of service and regulatory fees, and the imposition and. 
collection of fines and penalties. 
SECTION 7. Powers and Functions of the Chairman.- the Chairman of 
the Council shall have the following powers and functions: 
a) Appoint, subject to civil service laws, rules and regulations, all 
subordinate officers and employees, who shall enjoy security of tenure and may 
be removed only for cause in accordance with law; 
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b) Engage the services of experts/ consultants either on full time or part 
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time bases, as may be required in the performance of his functions and duties 
as may be determined by the Chairman; 
c) Execute and administer the policies, measures and decisions 
approved by the Council and be responsible for the efficient and effective day- 
to-day management of the operations of the MCDA; 
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d) Prepare the annual budget for the operations of the MCDA for 
submission to the Council; 
e) Submit for consideration of the Council such other policies and 
measures as he may deem necessary to carry out the purposes and provisions 
of this Act; 
9 Subject to the guidelines and policies set by the Council, prepare the 
staffing pattern and fix the number of subordinate officials and employees of the 
MCDA; and exercise the power to discipline subordinate officials and employees 
under the provisions of the law; 
g) Prepare an annual report on the accomplishments of the MCDA at the 
close of each calendar year for submission to the Council and to the President 
of the Philippines; and 
h) Perform such other duties as may be assigned to him by the President 
or by the Council. 
SECTION 
8. functions of the General Manager.- 
The general 
ma nag e r s h a I I : 
a) Assist the chairman in the administration of the MCDA and supervision 
of subordinate personnel; 
b) Assist the chairman in the supervision of the operation of the various’ 
operating centers and units of MCDA; 
c) Assist the chairman in the review of plans and programs for the MCDA 
and for the Metro Cebu in the preparation of the annual report of the activities 
and accomplishment of the MCDA; and 
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d) Perform such other duties and functions as may be lawfully delegated 
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or assigned by the Chairman from time to time. 
SECTION 9. Insfifufional Linkages of the MCDA.- The MCDA shall, in 
carrying out its functions, consult, coordinate and work closely with the local 
government units (LGUs), the National Economic and Development Authority 
(NEDA) and other national government agencies mentioned in Section 4 
hereof, and accredited people’s organization (POs), non-governmental 
organizations (NGOs), and the private sector operating in Metro Cebu, The 
MCDA chairman or his authorized representative from among the Council 
members, shall be ex-officio members of the boards of government 
corporations and committees of the department and offices of government 
whose activities are relevant to the objectives and responsibilities of the MCDA, 
and which shall include, but not be limited to, MCWD, DOTC, DPWH, HUDCC 
and the Department of Interior and Local Government (DILG). 
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The MCDA, upon consultation with the Regional Development Council 
(RDC), as far as practicable, shall have a master pian that shall serve as the 
framework for the local development plans of the component LGUs. 
The MCDA shall submit its development plans and investment programs 
to the NEDA for integration into the Medium-Term Philippine Development Plan 
(MTPDP) and public investment program. 
The implementation of the MCDA’s plans, programs and projects shall be 
undertaken by the LGUs, the concerned national government agencies, the 
POs, NGOs and the private sector and the MCDA itself where appropriate. For 
this purpose, the MCDA may enter into contracts, memoranda of agreement 
and other cooperative arrangements with these bodies for the delivery of the 
required services within Metropolitan Cebu. 
The MCDA, shall, in coordination with the NEDA and the Department of 
Finance, interface with the foreign assistance agencies for purposes of 
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obtaining financing support, grants and donations in support of its programs 
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and projects. 
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SECTION 10. Sources of Funds; Operafing Budget 
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carry out the purposes of this Act, the amount of THREE HUNDRED MILLION 
PESOS (P300,000,000.00) is hereby authorized to be appropriated for the initial 
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operation of the MCDA. Thereafter, the annual expenditures, including capital 
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In addition, to strengthen MCDA’S operational requirements, the proceeds 
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from the revenue-raising powers under Section 5 hereof shall accrue exclusively 
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to MCDA; 
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The MCDA shall also assess and collect from its member .local. 
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government units mentioned in Section 2 hereof the following fixed contributions. 
a. Five (5%) percent of the total annual gross revenue of the 
immediately preceding year including their IRA, in the case of municipalities; 
and 
b. Two and one-half (2 %) percent of the total annual gross revenue of 
the immediately preceding year including their IRA, in the case of the cities. 
The contributions shall accrue and become payable monthly to the MCDA 
by each city or municipality. In case of failure to remit the said contributions, the 
DBM shall cause the disbursement of the equivalent amount to the MCDA, 
chargeable against the IRA of the city or municipality concerned, the provisions 
of Section 286 of the Local Government Code to the contrary notwithstanding. 
SECTION 
11. Repealing Clause- All other 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. 
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SECTION 12. Separability Clause. - If any part of 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. 


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circulation. 
SECTION 13. Effectivity. - This Act shall take effect fifteen (15) days following 
the completion of its publication in at least two (2) newspapers of general 
Approved, 
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