SEVENTEENTH CONGRESS OF THE) 
REPUBLIC OFTHE PHILIPPINES 
) 
Second Regular Session 
)
SENATE
s.No. 
l b 2 7
-47 DEC - A
Introduced by Senator Ridiard ). Gordon
GITS
AN ACT CREATING THE LAKE LANAO DEVELOPMENT AUTHORITY, DEFL 
POWERS, FUNCTIONS, AND DUTIES, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Lake Laiiao is the largest freshwater lake in Mindanao, and the second largest 
freshwater lake in the Philippines. The rift lake is located in the Province of Lanao del Sur 
at 701.35 meters above sea level. Lake Lanao borders Marawi City and has an area of 
354.60 square kilometers and an average depth of 60.3 meters, the deepest being 112 
meters. The lake is fed by four rivers with only one outlet, the Agus River, which flows 
southwest into lligan Bay via two channels, the Maria Cristina Falls and the Linamon Falls.
The lake is one of the seventeen ancient lakes of the world and used to be home to 
eighteen endemic fish species of freshwater fish and supports a large number of waterfowl. 
Lake Lanao s rich marine resources provide the lisherfolks in the surrounding cities and 
municipalities a major source of livelihood. A hydroelectric plant is also installed in Lanao 
Lake and Agus River which generates 70% of the electricity used in Mindanao.
It is imperative that the determined preservation, proper utilization, and 
sustainable development of Lake Lanao be ensured for the benefit of the people of Lanao 
and of the Philippines, as well. This bill seeks to create an agency which shall be known as 
the Lake Lanao Development Authority (Authority) that is tasked to administer and 
implement the over-all development of Lake Lanao and its surrounding areas.
The Authority shall craft and implement a comprehensive and detailed Master Plan 
which is designed to promote the rapid social and economic development of Lake Lanao 
especially for the faster socioeconomic recovery of Mindanao. The Authority shall be 
governed by a Board of Directors with the assistance of an Executive Director. Moreover, 
the Authority shall undertake research and policy studies on the marine and natural 
resources, among others, of the lake and its surrounding areas. The bill also exempts the 
Authority from the payment of taxes imposed by the National Government to allow it to 
maximize the use of its funds for the development of Lake Lanao and its surrounding areas.
Given the great potential of Lake Lanao, having similar topography features with 
well-known lakes such as the Lake Geneva in Switzerland, Lake Tahoe in Sierra Nevada, 
Lake George in New York which is the "Queen of American Lakes", and Lake Michigan in 
North America which is surrounded by countless houses, cabins, inns, hotels, recreation 
centers, and numerous infrastructures, thus, it is but apt that the Lake Lanao Development 
Authority be created so as to initiate and promote the economic growth of Mindanao by 
encouraging entrepreneurship and, thereby, creating various jobs and business 
opportunities to the people. Therefore, the urgent passage of the bill i^'arnestly sought
/
)lARD J>TKrRDON
S f ^ a t o r


SKVENTI'ENTll CONGRESS OF THE) 
REPUBLIC OFTHE PHILIPPINES 
) 
Second Rccjular Session 
)
SENATE 
s. No. 
1 r>27
— Hilt; -4—p ’I \'/A
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Introduced by Sciuilor Richard J. Gordon
AN ACT CREATING THE LAKE LANAO DEVELOPMENT AUTHORITY, D E F IN iV/g  ITS 
POWERS, FUNCTIONS, AND DUTIES, AND FOR OTHER PURPOSES
Be it 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 “Lake Lanao Development 
Authority Act of 2017."
Sec. 2. Policy. - It is hereby declared the policy of the State to promote and accelerate 
a balanced growth and progress of Lake Lanao and its surrounding cities and 
municipalities, within the context of sustainable growth, for the development of Mindanao. 
The State lurther encourages and fosters the promotion of entrepreneurship, investments, 
infrastructures, tourism growth, and the creation of jobs and business opportunities for all.
In addition, due regard and adequate safeguards for the protection on the quality of 
life, environmental management and control such as the preservation of ecological 
systems, prevention of undue ecological disturbances and deterioration, among others 
must be regarded.
Sec. 3. Lake Lanao Development Authority. - The Lake Lanao Development Authority 
is hereby created under the Office of the President liereinafter referred to as the 
"Authority".
The Authority shall consist of a Board of Directors, hereinafter referred to as the 
"Board", which shall be composed of a Chairman and six (6) Members, to be appointed by 
the President. Provided that, majority of the Members of the Board must be residents of 
Lanao del Sur and Lanao del Norte. The term of office for the Board shall be for six (6) 
years, unless sooner removed or incapacitated.
In case of any vacancy in the Board, the same shall be f illed by the President for the 
unexpired term. No person shall be appointed as Chairman or Member of the Board, unless 
he or she is a natural-born citizen, at least thirty (30) years of age, and of proven 
competence, probity, and integrity.
For purposes of this act, the Authority created under this Section shall identify the 
surrounding cities and municipalities within its jurisdiction which shall be known as the 
"Area".


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Sec. 4. Powers and Functions of the Board. - The Authority through the Board shall 
have the following powers and functions:
a) To make a comprehensive survey of the physical and natural resources and 
potentialities of Lake Lanao and the Area, particularly its social, cultural, 
historical, and economic conditions, hydrologic characteristics, power potentials, 
scenic and tourist spots, conservation of water resources and such other areas of 
concerns, and thereafter, craft a comprehensive and detailed Master Plan, as 
provided in Section 10 of this Act, to promote its rapid social and economic 
development; Provided that, the implementation of all fisheries plans, projects, 
and programs of the Authority shall require prior consultation with the Bureau 
of Aquatic Resources to ensure that such plans, programs, and projects are 
consistent with the national fisheries plans and programs;
b) To undertake other plans, programs, and projects to further the socioeconomic- 
development of the Area and of the Philippines thereafter;
c) To promote or engage in agricultural, industrial, tourism, commercial, or other 
activities necessary or directly contributory to the socioeconomic development 
of the Area, and, for this purpose, whether by itself or in cooperation with 
private entities, may organize, finance, invest in, and operate subsidiary 
corporations;
d) To study and approve all plans, programs, and projects proposed by the local 
government units, public corporations, and private entities which is related to 
the utilization of the resources and the development of Lake Lanao and the 
surrounding Area, and monitor the proper implementation of said plans, 
programs, and projects, consistent with the objectives and purposes of this Act, 
in coordination and mandatory prior consultation with the Department of 
Environment and Natural Resources (DENRJ;
e) To plan, program, finance, and/or undertake infrastructure projects such as 
flood control, sewerage, water supply, roads, pot works, irrigation, housing and 
other related works, as may be deemed necessary, when so required within the 
context of its plans and programs, including the readjustment, relocation, 
restoration, or resettlement of concerned residents, as may be deemed 
necessary in the best interest of the public: Provided that, should any project be 
Financed wholly or in part by the Authority, it is hereby authorized to collect 
reasonable fees and tolls as may be fixed by its Board from users and/or 
beneficiaries thereof to recover costs of construction, operation, and 
maintenance thereof;


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0 To undertake reclamation projects which may be necessary to accomplish the 
approved plans and projects of the Authority. Provided that, the land so 
reclaimed shall be the property of the Authority and title thereto shall be vested 
solely to the Authority: Provided further that, the resulting' lakeshore area shall 
continue to be owned by the National Government as provided in Section 4 (d) of 
this Act;
j') To establish research centers to undertake studies on the marine and other 
natural resources of Lake Lanao for policy and plan formation;
h) To preserve and enrich the history and culture of the people in Mindanao by 
establishing museums, historical sites, among others;
i) To implement projects and undertake studies on the improvement and 
maintenance of the desirable water quality of Lake Lanao, and in pursuance 
thereof, prepare a water quality management program on a continuing basis, 
which the Authority shall carry out with the assistance and support of the 
national and local government units involved in water quality management;
j) To invest in or otherwise acquire, own, hold, use, operate, sell, assign, transfer, 
exchange, mortgage, pledge, lease, develop, or otherwise deal in, real or 
personal, including shares of stock, bonds, debentures, notes, evidence of 
indebtedness, and other securities. Provided that, no land within the shore area 
may be sold to any person, natural or juridical, such land shall only be available 
for lease for a renewable period of five (5) years, unless sooner terminated by 
the government for just causes;
k) To exercise the right of eminent domain or acquire by purchase, privately- 
owned land within the area for purposes of implementing plans and projects of 
the Authority;
l) To require the local government units embraced within the Area to pass 
appropriate zoning ordinances and regulatory measures and to enforce the same 
with the assistance of the Authority;
m) To provide, establish, and accredit security and firefighting forces;
n) To formulate and implement public safety measures to ensure preservation of 
peace and order within the Area by establishing Peace and Order Rangers having 
concurrent jurisdiction with the law enforcement authorities within the Area;
o) To borrow funds from any local or foreign financial institution to carry out the 
plans and projects of the Authority;
p) To accept grants, donations, gifts, bequests, funds, and/or properties in 
whatever form and whatever source in coordination with the appropriate 
agency and administer the same in accordance with the terms thereof, or in the


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absence of any condition, in such manner consistent with the policy and powers 
of the Authority provided for in this Act;
q) To enter into contract/s to carry out its purposes and objectives;
r) To sue and he sued;
s) To issue rules and regulations as may be necessary to effectively carry out the 
powers herein provided, including the plans, programs, and projects of the 
Authority. Such rules and regulations shall take effect fifteen (15) days after 
publication thereof, in a newspaper of general circulation; and
t) To perform any other act/s as may be deemed necessary by the Board, upon 
majority vote, to undertake the plans, programs, and projects of the Authority.
Sec. 5. Executive Director. - In addition to the Board, an Executive Director shall be 
appointed by the President to who shall come from the private sector and shall have 
demonstrated executive competence and experience for at least ten (10) years in the 
management of agricultural, industrial, tourism, or commei'cial enterprises and 
knowledgeable of the socio-economic conditions of Lake Lanao and its surrounding cities 
and municipalities. Further, no person may be appointed as an Executive Director unless he 
or she is a natural-born citizen, at least forty (40) years of age, and of proven competence, 
probity, and integrity.
Sec. 6. Powers and Functions of the Executive Director. The Executive Director shall 
have the following powers and functions:
(a) 
To assist in the administration and management of the Authority;
(h) 
To assist in the development and improvement of the Master Plan;
(c) 
To promote trade, tourism, and agriculture enterprises within the Area so as 
to encourage more investments;
(d) 
To ensure that Rules and Regulations established by the Authority are 
enforced and implemented; and
(e) 
To guarantee tliat safety and security measures are properly implemented 
within the areas covered by the Authority.
Sec. 7. Prohibition against Conflict of Interest. - The Board and the Executive 
Director shall not be allowed to have any financial interest, directly or indirectly, in any 
contract entered into by the Authority or in any special privilege granted by the Authority 
during his or her term of office. All contracts entered into by any member of the Board, the 
Chairman, or the Executive Director, in violation of this Section shall be immediately voted 
upon by the Board, no more than five (5) days after its discovery, and by two-thirds (2/3) 
vote thereof, the contract may be voided. Further, the member of the Board, the Chairman, 
or the Executive Director who violated this Section shall be disqualified from serving his or 
her unexpired term and shall be perpetually disqualified in any position in the Authority.


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Sec. 8. Quorum. - The presence of four (4) Members of the Board, including the 
Chairman, shall constitute a quorum for the transaction of business.
Sec. 9. Meetings of the Board. - The Board shall meet preferably at its principal office 
at least twice a month and as frequently as necessary to discharge its duties and 
responsibilities properly. Tbe Board shall be convened by tbe Chairman or upon a written 
request by a majority of its Members. Except when otherwise provided for in this Act, the 
vote of a majority of the Members constituting a quorum shall be sufficient for the adoption 
of any rule, resolution, decision or any act of the Board.
Sec. 10. Lake Lanao Development Authority Master Plan- Immediately upon the 
creation of the Authority, coordination shall be made by the Board with the local 
government units, through active participation, to develop the Lake Lanao Development 
Authority Master Plan.
The Master Plan shall be detailed and comprehensive which shall contain long-term 
strategy and commitment to implement the same. The Master Plan shall not be subject to 
frequent policy changes unless essential when public safety and interest so requires.
Sec. 11. Establishment of Tourism Enterprise Zones. - The Authority may allow the 
establishment of Tourism Enterprise Zones (TEZs) in complete coordination and assistance 
with the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), as authorized by 
the Department of Tourism (DOT), and under the supervision of the President.
An entity may apply to qualify as an operator of a TEZ, as designated by the TIEZA, 
within the jurisdiction of the Authority under R.A. No. 9593 or otherwise known as the 
"Tourism Act of 2009.”
Competitive incentives extended to TEZs may be provided, upon qualification, in 
accordance with the abovementioned law.
Sec. 12. Exemption from Tax. - The Authority shall be exempt from payment of all 
taxes imposed by the National Government, its provinces, cities, municipalities, and other 
government agencies and instrumentalities. Provided that, subsidiary corporations, which 
may be created, shall be subject to all said taxes five (5) years after its establishment.
Such exemption shall include any tax or fee imposed by the National Government on 
the sale, purchase, or transfer of foreign exchange and all notes, bonds, and debentures, 
and other obligations issued by the Authority, both as to the, principal and interest.
Sec. 13. Representation of the Authority. - The Executive Director shall be the 
principal representative of the Authority. He or she shall be empowered, in such capacity, 
and in accordance and approval of the Board, by two-thirds (2/3) vote, on the following;
a) 
To represent the Authority in all dealings with other offices, agencies, and 
instrumentalities of the Government and with all other persons and entities, whether 
public or private, domestic or foreign;


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b) To sign contracts concluded by the Authority, annual reports, balance sheets, 
profit and loss statements, correspondences and other documents of the Authority; and
c) To represent the Authority, either personally or through counsel, in any legal 
proceedings or actions.
Sec. 14. Capitalization. - The Authority shall have an authorized capital of Two 
Billion Pesos (P 2,000,000,000.00] no par value shares, of which the amount of One Billion 
Pesos (P 1,000,000,000.00] shall be subscribed by the provinces, cities, and municipalities 
in the Area wherein twenty-five percent thereof (25%] shall be subscribed by the National 
Government.
Sec. 15. Departments. - The following departments shall be created within the 
Authority: Administrative, Legal, Operations, Financial and Management, Auditing, 
Planning and Programming, and such other departments as may be necessary to effectively 
carry out the functions of the Authority. The Mead of each Department shall be appointed 
by the Board, upon recommendation by the Executive Director.
Sec. 
16. Appropriations. 
- 
The 
sum 
of two 
hundred 
million 
pesos 
[PhP200,000,000.00] necessary for the initial operating expenses of the Authority is 
hereby charged to the appropriations authorized for the Regional Development Fund. 
Thereafter, the sum necessary for the continued operation and maintenance of the 
Authority shall be included in the annual budget under the Office of the President.
Sec. 17. Repealiiu] Clause. - All laws, decrees, orders, rules and regulations or other 
issuances or parts thereof inconsistent with the provisions of this Act are hereby repealed 
or modified accordingly.
Sec. 18. Separability Clause. - If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provision not affected thereby shall 
remain in force and effect.
Sec. 19. Effectivity. - This Act shall take effect after fifteen (15] days following the 
completion of its publication either in the Official Gazette or in a newspaper of general 
circulation in the Philippines.
Approved,