Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
HoUsEBILLNo.    9933
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Introduced by Representative Crispin Diego "Ping" D. Remulla
AN ACT
STRENGTHENING THE FARM-TO-MARKET ROAD DEVELOPMENT
PROGRAM AND PROVIDING FOR A SUSTAINED REGULAR FUNDING
SUPPORT T0 ACCELERATE ITS IMPLEMENTATI0N
EXPLANATORY NOTE
Farm-to-Market Roads, or FMRs, are vital to agriculture because they are a catalyst for
enhancing rural economies and reducing poverty levels in local communities. In addition, they
are key in the increased transportation of people, goods, and services that are necessary to
increase food production and lower the price of agricultural products. Moreover, FMRs aid in
accessing job opportunities, social services, boosting local trade, productivity, and reducing the
cost of transportation and post-harvest losses.
The  World  Bank,  however,  identified  a  crucial  issue  in  the  Mandanas  Ruling
concerning the FMR Development Program (FMRDP). These include potential underfunding
for operations, repairs, rehabilitation, and maintenance of FMRs. With this, it is essential that
the FMRDP receive sufficient funding support to ensure its effective implementation.


In view of the foregoing, the approval of this measure is earnestly sought.
-,jf  &
CRISPIN DIEGO "PING" D. REMULLA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
HousE BILL No.  993 3
Introduced by Representative Crispin Diego "Ping" D. Remulla
AN ACT
STRENGTHENING THE FARM-TO-MARKET ROAD DEVELOPMENT
PROGRAM AND PROVIDING FOR A SUSTAINED REGULAR FUNDING
SUPPORT T0 ACCELERATE ITS IMPLEMENTATI0N
Be it enacted by the Senate and the House Of Representatives Of the Philippines in Congress
assembled:
1                   SECTION  1. Short Title. - This act shall be known as the "Farm-to-Market Road
2      Development and Acceleration Act of2024. "
3                   SEC. 2.            Declaration of policy. -The state recognizes the vital importance and
4      contribution  of farm-to-market  roads  in  providing  connectivity  for  transporting  inputs  to
5      farmers and bringing their production areas to distant markets, facilitating the transport of
6      produce and goods in an efficient, cost-effective, and convenient manner, thus helping achieve
7      national food security and improve the lives offarmers and fisher folks.
8      Given this, the state shall strengthen the Farm-to-Market Roads Development program and
9      provide adequate funding support to accelerate its implementation.
10                   SEC. 3. Definition of Terms. -For purposes of this Act, the following terms shall be
11       defined as follows:
1


1      a.          Farm-to-Market  Roads  (FMR)  -shall  refer to  public  infrastructure  projects  within
2      agricultural, livestock, and fishery production, marketing, and processing areas linked to all-
3      weather  or  higher  road  class  such  as  municipal,  city,  provincial,  national  primary,  and
4      secondary roads.  These are either barangay roads, purok or sitio roads, and other farm-access
5       roads.
6      b.          Farm Access Roads-shall refer to existing road access within agricultural production,
7      processing, and related infi.astructure including private roads, trails, and tire-path, which are
8      not yet classified as a municipal, city, provincial, national prinary, and secondary roads.
9                   SEC. 4. Strengthening the Farm-to-Market Road Development Program. -The
10      Farm-to-Market Road Development program (FMRDP) of the Department of Agriculture is
11       hereby strengthened with the following objectives:
12      a)         Fomulate and update the National Fain-to-Market Road Modernization Network plan;
13      b)         Strengthen the identification, validation, and prioritization of FMRs to ensure rational
14      and equitable funding allocation;
15      c)         Accelerate the construction of climate-smart and standards-compliant farm-to-market
16      roads in key agricultural and fisheries production areas;
17      d)          Strengthen  the  support  services  at  the  national  and  local  levels  relative  to  the
18      implementation ofFMRs;
19      e)          Institute convergence and coordination among concerned national government agencies
20      and local government units insofar as to the planning and implementation of farm-to-market
21       roads;and
22      I)          Improve and sustain the maintenance offarm-to-market roads by the Local Government
23       Units.
24                   SEC. 5. Implementation of FMRDP. I The Department of Agriculture (DA) through
25      its Bureau of Agricultural and Fisheries Engineering (BAFE) shall oversee and manage the
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1      FMRDp and develop a state-of-the-art system to effectively monitor its implementation. The
2       DA shall likewise:
3      a)         Serve as the lead inplementing agency and fund administrator of the FMRDp and is
4      hereby authorized to issue the necessary and appropriate operational guidelines and policies to
5      fully implement the program;
6      b)         In collaboration with DPWH and other concerned entities and agencies, shall formulate
7      a strategy to ensure the timely implementation of projects, such as but not limited to the setting
8      of technical specifications, clustering, and geo-tagging of projects for cost efficiency in the
9      procurement thereof and effective management and implementation of projects; and
10      c)         Submit annual  reports of its  implementation  status to the  congressional  oversight
11       Committee on Agriculture and Fisheries Modernization.
12                   Towards this end, the BAFE is hereby strengthened and operates as a line bureau of
13      DA and establishes its regional and field offices to implement this program effectively and
14      efficiently, as well as its mandates on agri-fisheries mechanization and infrastructures. The
15      BAFE is further given the mandate and authority to implement, conduct procurement and
16      supervise contractors of the GAA-funded FMR projects as well as foreign-assisted projects
17      following  the  provisions  of Republic  Act  9184  and  other  applicable  laws,  adapting  the
18      guidelines to be promulgated by the DA, and using the relevant methodologies and tools of the
19      Philippine Rural Development project.
20                  SEC.  6.  Formulation  and  Updating  of Farm-to-Market  Road  Modernization
21      Network plan. -The Department of Agriculture (DA) through the Bureau of Agricultural and
22      Fisheries  Engineering  (BAFE)  in  coordination  and  consultation  with  concerned  national
23      goverrment agencies, local government units, farmer and fisher folk groups, private sector,
24      civil society organizalons, and other stakeholders shall formulate a 20-year Farm-to-Market
3


1      Road Modernization Network plan (FMRMNP) which shall be reviewed and updated every
2      year from the effectivity of this Act.
3                   The FMRMNP shall list all priority farm-to-market road projects for opening, repair,
4      rehabilitation, and upgrading to higher road pavement class in the philippines interfaced with
5      the Local Road Network plan formulated by the concerned local government units. This plan
6      shall also contain the validated FMR project proposals by the DA to be funded annually by the
7      national government based on formulated science-based tools and prioriti2ation criteria, and
8      operational guidelines to be issued by the secretary of Agriculture.
9                   The DA shall submit to the Department of Budget and Management (DBM) within one
10      (1) year from the effectivity of this Act and within the budget preparation call of every year
11      thereafter, an annual national Farm-to-Market Road Modernization Network plan of the public
12      Investment program (PIP).
13                   SEC. 7. Incorporation of Existing Farm-to-Market Road projects. -All continuing
14      and  existing  farm-to-market road projects being  funded and  implemented by the  national
15      government are hereby incorporated in the FMRMNP under this Act.
16      The continuing appropriations for all FMR projects being funded and implemented by the
17      national  government  prior  to  the  effectivity  of this  Act,  except  those  funded  under  the
18      Grassroots Participatory Budgeting (GPB) program or any other similar programs and are
19      included in the Plan, shall be considered part of the Program's appropriation as provided in
20       Section 20.
21                   New FMR programs and proj ects to be funded through official development assistance
22      after the effectivity of this Act are encouraged to be incorporated into the plan.
23                   SEC. 8. Identification and prioritization criteria. -The Department shall coordinate
24      with the LGUs and the resident farmers and fisherfolk to identify priority locations of farm-to-
25      market roads that take into account the number offamiers and fisherfolk and their families who
4


1      shall benefit there from and the amount, kind,  and importance of agricultural and fisheries
2      products produced in the area.
3       The prioritization ofFMRs shall be based on the following criteria:
4      (a) Agro-industrial potential of the area;
5      (b) Socio-economic contributions of the investments in the area;
6      (c) Absence of public investments in the area; and
7      (d) Presence of agrarian reform beneficiaries and other small farmers and fisher folk in the
8       area.
9                   Farm-to-market road investments shall give preference to the kind, type, and design of
10      facilities  that  are  cost-effective  and  will  be  useful  for  the  production,  conservation,  and
11      distribution  of most  commodities  and  should  benefit the  most  number  of agriculture  and
12      fisheries producers and processors.
13                   Sec. 9. Management Information system. -The existing Agricultural and Biosystems
14      Engineering Management Information system (ABEMIS) shall be strengthened to monitor the
15      project implementation ofFMRs which include the following:
16      a)         pre-implementation activity such as survey, detailed engineering design, a program of
17      work, right-of-way acquisition, feasibility study;
18      b)procurement;
19      c) progress construction monitoring;
20      d) operation and maintenance audit; and
21       e) completed inventory list.
22                  SEC.10.  Design and construction standards. -All FMRs to be implemented shall
23       conform to the existing, developed, and adopted design and construction standards by the DA
24      and DPWH, PNsmABES, and other relevant standards.
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1                   SEC.11.   FMR Monitoring and Evaluation. -All procuring entities implementing
2      FMR projects shall require the evaluation of the performance of their constructors following
3      the  NEDA-approved  Constructors  Performance  Evaluation  System  (CPES)  Guidelines  to
4      ensure conformance to the specified requirements. The funding/inplementing agency's CPES-
5      Implementing  Unit  shall  be  responsible  for  the  implementation  of  CPES  Implementing
6      Guidelines and the conduct ofcpEs methodology for their ongoing FMR projects.
7      The BAFE shall likewise undertake the monitoring and evaluation ofFMRs.
8                   SEC.12.  Research and Development for FMRs. -The DA-BAFE shall formulate a
9      Research and Development Agenda for Agricultural Infrastructure  Program encompassing
10      among others the following thematic areas:
11      a)          Periodic preparation of a National  Research,  Development &  Engineering  (RD&E)
12      Agenda for Agricultural Infrastructure aligned to formulated commodity roadmaps and the
13      national development plans;
14      b)         Formulation of locally applicable measurement and monitoring tools for improving
15      Accessibility, Road Influence Area Estimation among others;
16      c)         Conduct   of  National   Impact   Assessment/Evaluation   on   FMR   contribution   to
17      agricultural potential, productivity, and competitiveness by 2020;
18      d)         FMR Road condition survey nationwide;
19      e)         Analyze the implication of average daily traffic count in the prioritization and selection
20      of road design for FMR in light of limited & competing needs for government budget;
21      I)          Identify institutions such as state universities and colleges (SUCs), Bureau of soils
22      and water Management (BSWM), and National Irrigation Administration (NIA), among others
23      to conduct these R&Ds related to FMR and other agricultural infrastructures.
24      g)         FMR Road Accessibility Index; and
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1      h)         Other aspects and issues on FMR and other agricultural infrastructures in relation to
2      economic development; and
3                    The DA-Bureau of Agricultural  Research shall  integrate the  identified researchable
4      themes in its plans and programs and shall allocate a portion from its yearly R&D budget to
5      implement this provision in addition to the available funds provided in section 24 of this Act.
6                   SHC.13. Human Resource Development. -The DA through BAFE in collaboration
7      with  Technical  Education  and  Skills  Development  Authority  (TESDA),  Commission  on
8      Higher Education (CHED),  and other concerned government agencies  shall  formulate and
9      implement a Human Resource Development progran to support the FMRDP. This includes
10      the  conduct  of  training  and  other  capacity  development  activities  for  agricultural  and
11      biosystems engineers, construction workers, barangay Local Government units (LGUs) for the
12      maintenance ofFMRs, and other FMR workforce.
13                   The DA and the Department of public works and Highways (DPWH) shall provide the
14      necessary skills and capacity development to all agencies implementing FMR including the
15      LGUs  in  the  preparation  of  engineering  designs,  plans,   specifications,  project  studies,
16      feasibility studies, and estimates, and the supervision, and management and monitoring of the
17      construction. The Department of Labor and Employment (DOLE), through the occupational
18      Safety  and Health Center,  shall maintain and monitor the implementation of occupational
19      safety and health standards on the construction site.
20                   SEC.14. Climate smart FMRs. -Climate-Smart FMRs shall be pursued through the
21      provision of slope protection structures using coco net or bioengineering technologies and the
22      integration of polymer-based soil stabilizers, as necessary in the detailed engineering design of
23       FMRs, which will ensure compactness and stability of sub-basefoase course.
24                   SEC.15. Roles and Responsibilities of the Local Government units. -The Local
25       Government units shall have the following roles and responsibilities:
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1      a)         Identify proposed FMR project sites in coordination and consultation with farmers'
2      organizations and other stakeholders.
3      b)         Ensure the settlement of road right-of-way for the FMR projects submitted to the DA.
4      c)         Through its Agricultural and Biosystems Engineering office atthe provincial, city, and
5      municipal levels, assist the BAFE and Regional Agricultural Engineering Division (RAED) of
6      their respective region on the:
7       1.          Site survey and staking to ensure participatory validation and concurrence;
8      2.          Monitoring of completed FMRs;
9      3.          Establishment and updating of the FMR database in the ABEMIS;
10      4.          Preparation and updating of provincial, city, and municipal FMRNP which shall form
11      part  of the  LGUs  Local  Roads  Network  Development  Plans  (LRNDP)  and  share  their
12      respective shape file (.shp) and KMz file (.kmz) to BAFE; and
13       5.          Conduct joint inspections with RAED and DPWII District offices to ensure the full
14      delivery of the items/works specified in the contract and assess the status and condition of the
15       road;and
16      6.          Assist in the preparation of requirements prior to and after the site validation.
17      d)         Ensure  that  the  proposed  FMR  projects  are  included  in  the  Local  Development
18      Investment plan (LDIP) or Local Agriculture and Fisheries Modernization plan (AFMP) or
19      Provincial commodity Investment plan (PCIP).
20      e)         Responsible for repair and maintenance ofFMRs, as provided under section 16 of this
21       Act.
22                   SEC.16. Right of way and Road Maintenance. -All right-of-way issues including
23      the payment ofjust compensation to property owners shall be adequately addressed and settled
24      by the concerned Local Government Unit (LGU) where the road project is located and the
25      applicable provisions of the amended Road Right of way Act and other relevant laws.
8


1                   The LGU shall be responsible for the maintenance of farm-to-market roads upon its
2      completion and turn-over. Furthermore, the LGUs are hereby authorized to allocate not more
3      than 20% from their Development Fund for the maintenance of the FMRs within their teITitorial
4      jurisdiction.
5                   SEC.17. Incentive for Road Right of way Lot Donors. -Lot donors of Fami-to-
6      Market  Road  projects  throughout  the  country  including  those  that  are  not  yet  perfectly
7      segregated from the title or tax declaration of lot owners for earlier FMR projects funded by
8      the government which has a duly notarized deed of donation are hereby entitled to a 20-year
9      real property tax payment holiday to the specific lot parcel where the FMR right of way is
10      constructed as a form of incentives. The DA, Department of Interior and Local Government
11      (DILG), and Department of Finance (DOF) are hereby authorized to issue the corresponding
12      implementing rules and regulations of this provision.
13                    The pertinent provisions of Republic Act  10023, such other laws and implementing
14      guidelines issued to govern the issuance of special and free patents in favor of the philippine
15      government,   its  branches,   and  instrunentalities,  to   lot  parcels  used  and  intended  for
16      government projects, are hereby incorporated in this Act.
17                   SEC.18. Incentives for private sector participation in FMRDP. -The applicable
18      provisions ofRA 7718 (amended philippine Build operate Transfer-BOT-Law) are hereby
19      incorporated  specifically  the  inclusion  of farm-to-market road  among  the  eligible  projects
20      covered by this law and the corresponding incentives and modalities appropriate thereto.
21                   SEC.19. Inclusion  of Farm-to-Market Roads  in the Philippine Road Network
22      Classification System. - The DPWH, DILG, and the Local Government Units are hereby
23      mandated to include farm-to-market roads as a distinct and separate class from barangay roads
24      in the philippine Road network classification system. Towards this end, the concerned LGUs
9


1      shall  designate  the  FMRs  within  their respective jurisdiction  and  incorporate  them  in  the
2      updating of their Local Road Network Development plan.
3                   SEC. 20. Appropriations. -Annual appropriations for the program shall include the
4      amounts necessary to support and administer the implementation requirements of all farm-to-
5      market road infrastructure projects included in the plan.
6      The  Program   shall  be  allocated  at  least  Php  20  billion  per  year  under  the  General
7      Appropriations Act (GAA).  Additional funds over and above the regular yearly budget of the
8      Department shall be sourced from:
9      a)  not  less  than  10%  of the  project  cost  from  the  development  fund  of LGUs  as  their
10       counterpart;
11       b) 30% of the 80% Special Road Support Fund collected under Republic Act 8794  (Motor
12      Vehicle user charge Law);
13      c)  20%  of the  80%  remaining  balance  of incremental  revenue  derived  from  RA  10351
14      (Restructuring the Excise Tax Rate for Cigars, Cigarette, and Alcoholic Beverages) and its
15      anendments;
16      d) 50% of the collected penalties imposed by Agri-Agra Law;
17      e) 20% of the interest and other earnings of the coconut Levy Fund to be allocated to coconut-
18      producing areas certified by the philippine coconut Authority;
19      I) Official Development Assistance (ODA) and such other sources as may be determined by
20      the national government and Local Government units upon effectivity of this Act.
21                   Provided,  and that  such allocation for the balance  appropriation thereafter shall be
22      determined by  Congress upon the recommendation of the  Secretary  of the Department of
23      Agriculture and the Department of Budget and Management.
24                   Provided further, that the appropriations to implement this Act shall be integrated into
25      the Department of Agriculture budget every fiscal year. An amount not exceeding l0% of the
10


1      annual allocation shall be earmarked for administrative expenses, developmental activities, and
2      capital outlays to be managed by the DA-BAFE for the administrative, overhead, research and
3      development, and capital expenses to implement the purposes of this Act.
4                   SEC. 21. Hquitable AIlocation of FMR projects. -Notwithstanding any provision of
5      the law to the contrary, the appropriations for farm-to-market road projects shall be allocated
6      anong provinces and municipalities in the following manner:
7      (a)  Thirty  percent  (30%)  of the  farm-to-market  road  appropriations  to  be  allocated  for
8      provinces;and
9      (b)  Seventy  percent  (70%)  of the  farm-to-market  road  appropriations  to  be  allocated  for
10       municipalities:
11      Provided, that the share of each province and municipality shall be determined based on the
12       following formula:
13      (a) Twenty-five percent (25%) of farm-to-market road appropriations to be allocated pro-rata
14      according to the population of the province or municipality in relation to the total population
15      ofthecountry;
16      (b)  Fifty  percent  (50°/o)  of  farm-to-market  road  appropriations  to  be  allocated  pro-rata
17      according to the land area of the province or municipality in relation to the total land area of
18      thecountry;and
19      (c)  Twenty-five  percent  (25%)  of farm-to-market  road  appropriations  are  to  be  allocated
20      equally among the provinces or municipalities.
21                    SHC.   22.   Congressional   Oversight  Committee.   -   There   is  hereby   created  a
22      Congressional  Oversight  Committee  to  monitor  and  oversee  the  implementation  of the
23      provisions of this Act. It shall be under the auspices of the congressional oversight committee
24      on Agricultural and Fisheries Modernization.
11


1                   SEC. 23. Periodic Review. -The congressional oversight committee shall conduct a
2      periodic review of the implementation of this Act every fifth year from its effectivity. The
3      periodic review shall cover a systematic evaluation of the accomplishments and impact of this
4      Act, the performance and organizational structure of its implementing agencies,  and other
5      funding sources for purposes of determining remedial legislation to fully cany out the intent of
6       this Act.
7                   SEC. 24. Implementing Rules and Regulations. -The secretary of Agriculture shall
8      issue rules and regulations as he or she may deem necessary for the implementation of this Act.
9                   SEC. 25. Penal provision. -Violation of any provision of this Act is hereby declared
10      a criminal offense. Any individual orjuridical entity in the private sector or government service
11      who caused or was involved in any violation of this Act shall be imposed with a penalty of one
12      Hundred  Thousand  Pesos  (Php   100,000.00)  and  imprisorment  per  offense  as  may  be
13      determined by a court ofcompetentjurisdiction.
14                   SEC. 26. Repealing clause. -All laws, decrees, executive orders, proclamations, rules,
15      and  regulations,  or  parts  thereof inconsistent  herewith  are  hereby  repealed  or  modified
16      accordingly.
17                   SEC. 27.  Separability Clause.  -If any provisions  of this Act are held invalid or
18      unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.
19                    SEC. 28. Effectivity. -This Act shall take effect fifteen (15) days after its publication
20      in at  least two  (2)  national  newspapers  of general  circulation and  shall  remain valid  and
21      effective up to twenty (20) years thereof.
Approved,
12