Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

7
HOUSE BILL NO.

Introduced by Representative JOEY SARTE SALCEDA

AN ACT
INSTITUTIONALIZING THE NATIONAL ECONOMIC AND DEVELOPMENT
AUTHORITY AS THE INDEPENDENT ECONOMIC AND PLANNING AGENCY
OF THE PHILIPPINE GOVERNMENT, DEFINING ITS FUNCTIONS, AND
APPROPRIATING FUNDS THEREFOR, REPEALING FOR THE PURPOSE
EXECUTIVE ORDER NO. 230 SERIES OF 1987, ALSO KNOWN AS THE
REORGANIZATION ACT OF THE NATIONAL ECONOMIC AND
DEVELOPMENT AUTHORITY

EXPLANATORY NOTE

This bill seeks to institutionalize a new and truly independent department that will
implement long-term, continuing, integrated, and coordinated programs and policies for national
development. It will also enhance decentralization and strengthen the autonomy of units within the
various regions of the country to accelerate their economic and social growth and development.
Distressed communities will thus be empowered to revitalize, expand, and upgrade their physical
infrastructures to attract new industries, encourage business expansion in the countryside, diversify
local economics, and generate or retain long-term private sector jobs and investments.

Further, this bill institutionalize the National Economic and Development Authority
(NEDA) as a lead integrator of economic development programs and policies to achieve the
following objectives:

(1) Facilitate the planning, collaboration, and coordination among the relevant government
agencies;

(2) Improve access to national program information, data, and funding opportunities,
support research of leading edge, world class economic development practices and information
dissemination efforts;


(3) Ensure that economic resources are aligned and invested in support of identified and
well-defined timely strategies and projects in non-duplicative activities;

(4) Encourage strategic investments that strengthen competitiveness and foster job
creation;

(5) Promote energy independence, help fight poverty and build prosperity for the greatest
number of Filipinos; and

(6) Produce transformational economic diversification and work force development
outcomes for our country's long-term sustainable economic future.

In view of the foregoing, the immediate passage of this bill is earnestly soveht.

JOEY SARTE SALCEDA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

HOUSE BILL NO. __79

Introduced by Representative JOEY SARTE SALCEDA

AN ACT
INSTITUTIONALIZING THE NATIONAL ECONOMIC AND DEVELOPMENT
AUTHORITY AS THE INDEPENDENT ECONOMIC AND PLANNING AGENCY
OF THE PHILIPPINE GOVERNMENT, DEFINING ITS FUNCTIONS, AND
APPROPRIATING FUNDS THEREFOR, REPEALING FOR THE PURPOSE
EXECUTIVE ORDER NO. 230 SERIES OF 1987, ALSO KNOWN AS THE
REORGANIZATION ACT OF THE NATIONAL ECONOMIC AND
DEVELOPMENT AUTHORITY

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

CHAPTERI
INSTITUTIONALIZATION AND ORGANIZATION OF THE NATIONAL.
ECONOMIC AND DEVELOPMENT AUTHORITY

ARTICLE L. TITLE AND POLICY

SECTION 1. Short Title — This Act shall be known as “The National Economic and
Development Authority Act”.

SEC. 2. Declaration of Policies and Principles. ~The State shall adopt and implement
continuing integrated and coordinated long, medium, and short term development policies
and plans to achieve full employment towards sustainable and inclusive economic growth,
equitable distribution of opportunities, income, and wealth; and increase productivity and
innovation to elevate global competitiveness, as a key to raising the quality of life for all.
To this end, it is recognized that the formulation of socioeconomic policies and plans is a


vital process that calls for the participation of the public and private sectors at the national
and sub-national levels. To achieve these, the Constitution mandates Congress to create an

independent economic and planning agency.

ARTICLE I. THE NATIONAL ECONOMIC AND DEVELOPMENT
AUTHORITY

SEC. 3. The National Economic and Development Authority. — There is hereby
established an independent economic and planning agency, which shall be known as the
National Economic and Development Authority, hereafter referred to as NEDA. The
NEDA shall generate and provide impartial, objective, and evidence-based analyses and
recommendations for the socio-economic betterment of the nation, particularly to the
President of the Philippines, the Congress of the Republic of the Philippines, and Filipinos
in general. To this end, the NEDA shall be transparent and proactive in engaging all
Filipinos in the development of and discourse over the government’s socio-economic
policies, strategies, plans, programs and projects, and budgets.

The NEDA shall consist of two (2) distinct but functionally related entities, namely,
National Economic Development Board and the NEDA Secretariat, hereafter referred to as
the NEDB and the NEDA, respectively. The NEDB and the NEDA shall be structured
organizationally and functionally in accordance with the provisions of this Act, and shall
be drawn from the existing NEDA Board and NEDA Secretariat, which was reorganized
pursuant to Executive Order No. 230, s. 1987.

SEC. 4. Powers, Functions, and Duties of the NEDA. — The NEDA shali perform the

following powers, functions and duties:

(a) Formulate, in consultation with public agencies, civil society organizations,
non-government organizations, people’s organizations, the academe, the private
sector, and local government units, continuing integrated and coordinated
policies, plans and programs for national and regional development, such as:
(1) Long-term national development plans;

(2) Medium-term and short-term national and regional development plans;
(3) Medium-term national and regional public investment programs;


(4) Sectoral inter-sectoral and programs; and
(5) Evaluation agenda;

(b) Ensure the harmonization of national and regional plans and programs by
prescribing standards, guidelines, and compliance and accountability
mechanisms to ensure continuing integrated and coordinated programs and
policies for national development;

(c) Help ensure and coordinate the integration of national, regional, sub-national
and spatial plans and programs for consistency and alignment with the overall
development objectives of the country;

(@) Prioritize policies and strategies, with corresponding programs, activities and
projects, and funding from the national government, official development
assistance (ODA), public-private partnerships, and other viable sources of
funding, as basis for budget expenditure policies and budget formulation, in
coordination with implementing agencies, and for reporting to the NEDB and
its committees;

(e) Oversee, monitor, and evaluate the implementation of national and regional
programs and projects of government, funded by the national government,
public-private partnerships, ODA, and programs vested with public interest;

(£) Review, monitor and assess the impact of policies, regulations, and programs of
the government, and recommend to concerned government agencies and
instrumentalities strategies and measures, including proposed legislation, to
achieve development goals;

(g) Recommend policies that would encourage investments to ensure that the
economic and business environments and regulatory frameworks are consistent
with the development agenda and plans of the country;

(h) Report to the people, Congress, the Cabinet, and the President on the economic
performance of the country, including the status and the directions of the fiscal
and monetary policies of the government in coordination with the BSP and the
Department of Finance; and prospects in the macro-economy and labor market,
and other relevant information that may be requested, for purposes of

transparency and accountability; and


(i) Provide technical, advisory and secretariat support services to the NEDB and its
committees, the Regional Development Councils, and other stakeholders

SEC. 5, Organization and Staffing. - The organizational structure and staffing
modifications, as necessary, shall be submitted by the NEDA to the DBM for review and
approval.

Appointments in NEDA, including those which are policy-determining, primarily
confidential or highly technical in nature, shall be made only according to the Civil Service

Law, rules and regulations.

SEC. 6. Organization of NEDA. ~ The NEDA shall consist of the Office of the
Secretary, the Offices of the Undersecretaries and Assistant Secretaries, technical and
sectoral staffs, operations support staffs, and regional offices.

SEC. 7. Office of the Secretary of NEDA. ~ The Office of the Secretary of NEDA
shall consist of the Secretary, four (4) Undersecretaries, eight (8) Assistant Secretaries, the
Internal Audit Service, and the Legislative Liaison Office.

SEC. 8. Secretary of the NEDA. ~ The NEDA shall be headed by a Secretary, who
shall be the Vice-Chairperson of the NEDB. The NEDA Secretary shall be a member of
the Cabinet.
‘The NEDA Secretary shall have the following functions:
(a) Provide executive direction and supervision over the entire operations of the
NEDA;
(b) Establish policies and standards for the effective, efficient, and economical
operations of the NEDA, in accordance with the programs of the government;
(c) Promulgate rules, regulations, and other issuances as necessary in carrying out
the NEDA’s mandate, objectives, policies, plans, programs and projects;
(d) Establish effective linkages with provincial and municipal planning and
development offices;


(©) Advise the President of the Philippines on the promulgation of executive or
administrative orders, and the formulation of regulatory and legislative
proposals, pertaining to matters of national economic and social development;

(£) Promulgate such rules and regulations, and exercise such other powers as may
be required to implement the objectives of this Act; and

(g) Perform such other tasks as may be provided by law or assigned by the President
of the Philippines

SEC. 9. Representation to the Monetary Board, ~ Whenever unable to a meeting of
the Monetary Board, the NEDA Secretary may designate a representative from among the
four (4) Undersecretaries

SEC. 10. Term of Office of the Secretary. ~The Secretary of National Economic and
Development Authority shall be appointed by the President with the consent of the
Commission on Appointments, at the beginning of his/her term of office, and shall hold
office, unless sooner removed, until the expiration of his/her term of office, or until his/her
successor shall have been appointed and qualified.

SEC. 11. Undersecretaries and Assistant Secretaries. - The Secretary shall be
assisted by four (4) Undersecretaries and eight (8) Assistant Secretaries, who are appointed
by the President of the Philippines, upon recommendation by the Secretary.

The Secretary shall have the flexibility to determine the respective assignments of
the Undersecretaries and Assistant Secretaries, depending on the Secretary’s strategic

directions and/or on emerging development trends affecting the country’s economy.

ARTICLE IIL. NATIONAL ECON

IC DEVELOPMENT BOARD

SEC. 12. The National Economic Development Board (NEDB).—The NEDB shall be
composed of the following:

(a) President of the Philippines, as Chairperson of the NEDB;

(b) Secretary of the NEDA, as Vice-Chairperson;

(©) Secretary of the Department of Finance;


(d) Secretary of the Department Budget and Management;

(e) Secretary of Interior and Local Government,

(f) Secretary of Trade and Industry;

(g) Secretary of Transportation;

(h) Secretary of Social Welfare and Development;

(i) Secretary of Education;

(j) Secretary of Health;

(k) Secretary of Agriculture;

(I) Secretary of Public Works and Highways; and

(m) Governor of the Bangko Sentral ng Pilipinas (BSP), as a resource institution.

All members of the NEDB, except the Governor of the BSP, shall be voting
members, The presence of the Chairperson or Vice-Chairperson, and at least three (3) other
voting members shall constitute a quorum. The NEDB may solicit inputs from the private
sector.

‘The President of the Philippines may designate additional members to the NEDB.

SEC. 13. Meetings. - The NEDB shall meet at least once every quarter. A special
meeting of the NEDB may be convened by the President of the Philippines to address
urgent concerns, emergencies such as natural disasters, calamities, global financial crises,
or other extraordinary circumstances that would affect the economy and national
development.

The NEDA shall maintain and preserve a complete record of the proceedings and
deliberations of the NEDB, including the recordings and transcripts, either in their original
form, or in any secured digital format.

SEC. 14. Full Disclosure Rule. —In addition to the requirements of Republic Act No.
6713, otherwise known as the “Code of Conduct and Ethical Standards for Public Official
and Employees”, any member of the NEDB with personal or pecuniary interest in any
matter in the agenda of the NEDB shall disclose the interest to the Board and shall withdraw
from the meeting when the matter is taken up. The decision taken on the matter shall be
made public. The minutes shali reflect the disclosure made and the retirement of the
member concerned from the meeting.


SEC. 15, Exercise of Authority. — In the exercise of its authority, the NEDB shall

(a) Direct the formulation and implementation of policies and strategies that would
promote economic development and address development concerns of national
importance;

(b) Issue rules and regulations necessary for the effective discharge of the powers
and functions vested upon the NEDA;

(c) Ensure, together with the Department of Budget and Management and other
relevant government oversight agencies, that the annual and multi-year
appropriations for programs and projects are aligned with the development
strategies in the national and regional development plans and public investment
programs, herein referred to as Philippine Development Plan (PDP)/ Public
Investment Program (PIP) and the Regional Development Plans (RDPs)/
Regional Development Investment Programs (RDIPs);

(d) Approve and endorse to Congress the integrated development plans and
programs which will serve as bases for the annual and multi-year budget review
and deliberation;

(e) Determine the level of annual government expenditures, as well as projections,
forecast, resource requirement, and the ceiling of government spending for
social and economic development, national defense, government debt service,
and the proper allocation of expenditures for each development activity between
current operating expenditures and capital outlay;

(0) Ensure the efficient and effective evaluation of major capital programs and
projects of the country by determining levels of acceptability and viability
relative to overall economic and fiscal conditions of the country;

(g) Approve or confirm projects, programs, and plans as required under existing
laws, orders, rules and regulations, and other issuances; and

(h) Direct the reorganization, or establishment of NEDB Committees, including the
modification of its membership, structures, powers, and functions.


SEC. 16. NEDB Committees. — There shall be created fourteen (14) Committees to
act as primary advisory bodies to the NEDB. They shall submit recommendations on
matters involving their concerns to the NEDB for approval.

The NEDB shall designate the Chairperson of these Committees, including the
Secretariat, unless otherwise specifically provided herein.

The NEDB may create other committees, or modify existing ones in respect to their
structures, compositions, powers, and functions. It may also create sub-committees,
whenever appropriate, for the purpose of dispensing with any of their respective functions.

The following shall be the NEDB Committees:

(a) Development Budget Coordination Committee (DBCC). ~ The DBCC, to be
composed of the Secretaries of Budget and Management, National Economic
and Development Authority, Finance, and Trade and Industry, the Executive
Secretary and the Governor of the BSP, shall discharge the following functions:
(1) Recommend for presidential approval the level of annual government

expenditures and the ceiling of government spending for economic and
social development, national defense, and government debt service;

(2) Recommend the budget to be allocated for current operating expenditures
and capital outlays of government programs and projects;

(3) Assess the overall economic situation of the country, which includes
economic growth, monetary, fiscal, and possible economic risks which may
require policy reforms;

(4) Formulate and review the guidelines for the regional allocation of agency
budgetary resources;

(5) Ensure that the regional allocations are responsive to poverty, development
gaps, and economic opportunities;

(6) Conduct periodic review of macroeconomic targets, and the revenue and
expenditure projections of the government;

(7) Prepare a strategic multi-year fiscal program which supports the long-term
and medium-term development objectives of the country; and

(8) Conduct periodic review of fiscal and macroeconomic targets, and the

revenue and expenditure projections of the government.


(b) Investment Coordination Committee (ICC). - The ICC, to be composed of the
Secretaries of Finance, National Economic and Development Authority, Budget
and Management, Interior and Local Government, and Trade and Industry, the
Executive Secretary, and the Governor of the BSP, shall discharge the following
functions:

(1) Review and submit to the President of the Philippines a status of the fiscal,
monetary and balance of payment (BOP) implications of major capital
programs and projects;

(2) Recommend to the NEDB the timetable of the implementation of major
capital programs and projects on a regular basis;

(3) Review and evaluate specific major capital programs and projects with
respect to technical, financial, economic, social, environmental, legal,
institutional, feasibility, and viability as well as from the context of sectoral
plans and geographical strategies, as may be required by law, orders, and
other legal issuances; and

(4) Review and approve, for final approval of the NEDB, major capital projects
based on a cost threshold as may be set by the NEDB.

(c) Resource Mobilization and Other Fiscal Matters Committee (RMFMC). ~ The
RMEMC, to be composed of the Secretaries of Finance, National Economic and
Development Authority, Budget and Management, Interior and Local
Government, and Trade and Industry, Governor of the Board of Investments,
Chairperson of the Governance Commission for GOCCs, the Executive
Secretary, and the Governor of the BSP, shall discharge the following functions:
(1) Review and recommend to the NEDB a domestic and foreign borrowing

program;

(2) Pursue and recommend Public-Private Partnerships (PPP), privatization, and
other funding options to augment government's financing capacity,

(3) Propose and recommend tax reform measures; and

(4) Review and recommend modalities of development financing and capital
market development in support of long-term programs and projects for both
national and local government, and government-owned and/or —controlled

corporations (GOCCS),


(a) Infrastructure Committee (INFRACOM). ~ The INFRACOM, to be composed
of the Secretaries of National Economic and Development Authority, Public
Works and Highways, Budget and Management, Finance, Information and
Communications Technology (ICT), Transportation, Trade and Industry,
Energy, Agriculture, and Tourism, and the Executive Secretary, shall discharge
‘the following functions:

(1) Formulate a national infrastructure development strategy that will
coordinate, integrate and accelerate the development initiatives across all
infrastructure subsectors in the country;

(2) Advise the President and the NEDB, on all matters concerning infrastructure
development, including: roads, highways, and bridges; airports, seaports,
offshore infrastructure and shore protection; railways and subways; power
generation, transmission and distribution, ICT, telecommunications,
irrigation, flood control and drainage; water supply, sewerage and sanitation;
national buildings for government offices; hospitals and related buildings;
state colleges and universities, elementary and secondary school buildings,
reclamation; and other public works, whether procured or financed through
traditional means, PPP, or any other method; and

(3) Coordinate the activities of agencies, including government-owned and/ or
controlled corporations involved in infrastructure development.

(e) Social Development Committee (SDC). — The SDC, to be composed of the
Secretaries of Social Welfare and Development, National Economic and
Development Authority, Budget and Management, Education, Agrarian Reform,
Agriculture, Health, Interior and Local Government, and Labor and
Employment, and the Executive Secretary, shall discharge the following
functions:

(1) Formulate policies, programs and projects that will enhance the welfare and
reduce risks of Overseas Filipino Workers, elderly people, differently-abled
persons, children, women, indigenous peoples, marginalized farmers and
fisher folk, informal urban and upland settlers;


(2) Formulate and recommend government policies, programs and projects on
social development that are appropriate and consistent with national
development and priorities;

(3) Advise the NEDB on matters concerning social development, including
education, skills development, health and nutrition, population and family
planning, housing, human settlements, social protection, and the delivery of
other social services; and

(4) Coordinate the activities of government agencies concerned with social
development.

(f) Committee on Tariff and Related Matters (CTRM). - The CTRM, to be
composed of the Secretaries of Trade and Industry, National Economic and
Development Authority, Agriculture, Budget and Management, Environment
and Natural Resources, Finance, Foreign Affairs, Information and
Communications Technology, Transportation, the Executive Secretary, the
Governor of the BSP, and the Chairpersons of the Tariff Commission and
Philippine Competition Commission, shall discharge the following functions:
(1) Recommend to the NEDB a continuous rationalization policy and program

for the country’s tariff structure;

(2) Advise the NEDB on tariff and related matters, as well as the effects of
various international developments on the country; and

(3) Coordinate government agency positions and recommend national positions
for international economic negotiations.

(g) Regional Development Committee (RDCom). ~The RDCom, to be composed of
the Secretaries of National Economic and Development Authority, Interior and
Local Government, Budget and Management, and Trade and Industry, three (3)
Regional Development Council Chairpersons representing Luzon, Visayas and
Mindanao, and one (1) representative from the Union of Local Authorities of
the Philippines, shall discharge the following functions:

(1) Advise the NEDB on matters concerning regional development;

(2) Formulate and monitor the implementation of policies that reduce regional
growth disparities;


(3) Promote equitable allocation of resources among regions by strengthening
the linkage between national and regional/local planning, investment
programming, and budgeting, and providing recommendations to the DBCC
on the guidelines for the regional allocation of budgetary resources;

(4) Serve as a clearing house for key regional development policy proposals that
have impacts on at least two (2) regions;

(5) Formulate and monitor the implementation of the framework for regional
development of the medium-term development plan; and

(6) Periodically review the viability of the regional configuration of the country,
and recommend to the NEDB the re-delineation of regions, as may be
necessary.

(h) Marine Resource and Land Use Committee (MRLUC). ~ The MRLUC, to be
composed of the Secretaries of National Economic and Development Authority,
Agrarian Reform, Agriculture, Energy, Environment and Natural Resources,
Information and Communications Technology, Interior and Local Government,
Justice, Public Works and Highways, Science and Technology, Trade and
Industry, Transportation, and Tourism, the Chairperson of the Housing and
Urban Development Coordinating Council or the Housing and Land Use
Regulatory Board, the Chairperson of the National Commission on Indigenous
Peoples, the Chairperson of the National Coast Watch Council, and the
presidents of Leagues of provinces, municipalities and cities, shall discharge
the following functions:

(1) Advise the NEDB on matters concerning Marine Resource Use Planning and
Land Use Physical Planning;

(2) Formulate a national physical framework policy and other inter-sectoral
plans and programs that guide the rational utilization management of the
country’s marine resources, land resources and other physical resources, and
the preparation of sub-national physical framework plans;

(3) Ensure the integration of marine resource use, land use and physical
planning policies, plans, and programs, including disaster risk management,
into national socioeconomic plans and programs;


(4) Recommend resolutions concerning marine resource use and land use policy
conflicts among agencies of the national government;

(5) Oversee, in conjunction with concerned government agencies, the
establishment and maintenance of a database system that will identify and
classify the present and possible uses of specific maritime rights, as well as
iand areas, public and private, comprising the total land resource of the
country; and

(6) Provide policy directions to the Regional Marine Resource and Land Use
Committees in the performance of their respective physical planning
functions.

(i) Economic Development Committee (EDC). ~The EDC shall be composed of the
Secretaries of Finance, National Economic and Development Authority, Trade
and Industry, Budget and Management, Public Works and Highways,
‘Transportation, Information and Communications Technology, Energy, Science
and Technology, Tourism, Agriculture, and Interior and Local Government,
Chairperson of the Philippine Competition Commission, the Governor of the
BSP, and the Executive Secretary. It shall be the main coordinating mechanism
that ensures that the policy environment is conducive to the promotion of rapid,
inclusive, and sustained economic growth. In particular, it shall:

(1) Formulate policies that promote sustainable economic development and
inclusive growth;

(2) Promote an environment conducive to growth and competitiveness of private
enterprises and human capital resources, and the creation of jobs that will
empower people and provide them with opportunities to rise above poverty;

(3) Recommend to the President of the Philippines and NEDB policies that
would ensure equitable distribution of economic opportunities and benefits
to Filipinos;

(4) Recommend policy directions towards the development of farms and rural
enterprises which are vital to achieving food security and more equitable
growth; and

(5) Monitor and evaluate continuous improvements in national productivity and
competitiveness of domestic products and services.


(i) Science, Technology and Innovation Committee (STIC). — The STIC, to be
composed of the Secretaries of Science and Technology, National Economic and
Development Authority, Information and Communications Technology, Trade
and Industry, Finance, Budget and Management, Labor and Employment,
Agriculture, and Education, the Chairperson of the Commission on Higher
Education, and the Executive Secretary, shail discharge the following functions:
(1) Recommend policies and programs that will promote a culture of research,
planning and innovation, and encourage knowledge creation, dissemination
and utilization to support the country’s sustainable economic development,
food security and safety, industrialization, defense and security, and
competitiveness; and

(2) Oversee and coordinate the preparation of a national agenda that would
provide the framework and strategies for research and development, and
innovation in the country.

(k) Sustainable and Resilient Development Committee (SRDC). - The SRDC, to be
composed of the Secretaries of Environment and Natural Resources, National
Economic and Development Authority, Agrarian Reform, Agriculture, Energy,
Interior and Local Government, and Science and Technology, the
Administrator/ Executive Director of the Office of Civil Defense/ National
Disaster Risk Reduction and Management Council, and the Chairperson of the
Climate Change Commission, shall discharge the following functions:

(1) Recommend policies that will promote the conservation of the environment,
and the sustainable utilization of the country’s natural resources;

(2) Oversee the preparation of policies, strategies and other measures to promote
disaster resilience; and

(3) Monitor and evaluate the impact of environmental programs and projects to
the Philippine economy in general, and the utilization of the nation’s
resources,

(1) Governance Committee (GovCom). ~ The GovCom, to be composed of the
Secretaries of Interior and Local Government, National Economic and
Development Authority, Budget and Management, Finance, Trade and Industry,
and Justice, the Chairperson of the Commission on Audit, and the Chairman of

“


the Governance Commission for Government Owned or Controlled

Corporations, shall discharge the following functions:

(1) Formulate and recommend policies that promote _ transparency,
accountability, and participatory governance, and strengthen public
institutions to effectively and efficiently implement their respective
mandates;

(2) Recommend policies that would capacitate national government agencies in
linking its respective budget with performance outcomes;

(3) Recommend policies, plans and programs that would ensure an improved
policy and regulatory environment to reduce cost of doing business in the
country and improve market competition;

(4) Facilitate the resolution of governance issues in development planning, the
participation of various sectors in the governance processes, and the
development of capacities in the identification, development,
implementation and evaluation of critical governance reforms; and

(5) Review and conduct studies on reforms in the country’s system of
governance within the larger context of national economic development.

(m) Human Resource and Cultural Development Committee (CultureCom). ~ The

CultureCom, to be composed of the Secretaries of Education and National

Economic and Development Authority, the Chairpersons of Commission on

Higher Education, National Commission for Culture and the Arts, National

Historical Commission of the Philippines, National Commission on Indigenous

Peoples, National Commission on Muslim Filipinos, and Philippine Sports

Commission, shall:

(1) Coordinate the development of research programs and recommend policies,
programs, and projects related to culture, which encompasses history, arts,
values and sports, consistent with development objectives and priorities, and

(2) Monitor and evaluate the implementation of projects, activities and
programs on culture.

‘The President of the Philippines may designate a representative from the local
government units to sit as member in any or all of the NEDB Committees, and may modify


the membership of the NEDB Committees, whenever necessary, for the effective
performance of each of the committees’ respective functions.

With the approval of the President of the Philippines, any of the NEDB Committees
may invite the Senate President and the Speaker of the House or their representative to sit
as observer or resource person during Committee deliberations.

The NEDB committees may create sub-committees, whenever appropriate, for the
purpose of dispensing with any of their respective functions.

SEC. 17. Meetings and Reports of the NEDB Committees. ~ The NEDB Committees
shall meet regularly, but may be convened to such special meetings as may be necessary. The
members of the NEDB shall be duly notified of any meeting in advance, The NEDA shall serve
as the secretariat to each NEDB Committee.

The NEDB Committees shall furnish the NEDB their respective reports and outputs
during such meetings.

ARTICLE IV, THE NEDA SECRETARIAT

SEC. 18. Offices and Staff: - The NEDA shall be composed of the following
technical and sectoral staffs, administrative and support staffs, and regional offices:

(a) National Policy and Planning Staff;

(b) Public Investment Staff;

(c) Social Infrastructure Staff;

(d) Connectivity Infrastructure Staff

(e) Social Development Staff,

(f) Trade, Services, and Industry Staff,

(g) Spatial Planning and Regional Development Staff:

(h) Monitoring and Evaluation Staff;

(i) Agriculture, Natural Resources, and Environment Staff;

(j) Culture Staff;

(k) Science, Technology, and Innovation Staff;

(1) Governance Staff;

(m)Administrative Staff,


(n) Knowledge Management and Development Communication Staff:

(0) Financial Planning and Management Staff;

(p) Information and Communications Technology Staff;

(q) Legal Staff;

(1) Internal Audit Service;

(s) Legislative and Liaison Office; and

(8) Regional Offices in all the administrative regions of the country, except those

with planning offices created by law.

The Secretary may recommend to the DBM for approval, the creation of additional

positions or staffing modifications as may be necessary.

SEC. 19. NEDA Regional Offices (NROs). - The NROs shall have the following

functions:

(a) Oversee the integration of plans and programs of regional agencies, state
universities and colleges (SUCs), GOCCs, and local government units (LGUs)
into the regional and national plans. The NROs shall provide assistance to
regional line agencies, LGUs, SUCs and GOCCs in identifying and developing
programs and projects;

(b) Evaluate and review proposed policies, land use plans, programs and projects in
the region;

(c) Monitor and evaluate the implementation of plans, policies, programs and
projects;

(d) Provide technical and secretariat services to their respective Regional
Development Councils;

(¢) Undertake research and ensure knowledge utilization for regional development
and productivity; and

(f) Provide technical assistance to development partners in the region in accordance
with NEDA’s functions.

SEC. 20. Attached Agencies. — The agencies attached to the NEDA shall continue

to operate and function in accordance with the respective charters, laws, or order creating


them, except as otherwise provided in this Act, the Administrative Code of 1987, and
subsequent laws.
A. The following agencies shall continue to be attached to the NEDA for policy
and program coordination, and budgetary purposes:
(a) Philippine Institute for Development Studies (PIDS);
(b) Philippine National Volunteer Service Coordinating Agency (PNVSCA);
(c) Philippine Statistics Authority (PSA);
(d) Philippine Statistical Research and Training Institute (PSRTI); and
(e) Commission on Population and Development (POPDEVCOM).
B. The following agencies shall continue to be attached to the NEDA for budgetary
purposes and administrative supervision:
(a) Public-Private Partnership Center of the Philippines (PPPC); and
(b) Tariff Commission (TC).

SEC. 21. Legislative-Executive Development Advisory Council (LEDAC). — The
NEDA shall continue to serve as the principal secretariat of the LEDAC, consistent with
Republic Act No. 7640, otherwise known as “An Act Constituting the Legislative-
Executive Development Advisory Council”. It shall perform the following functions under
Sec. 3 thereof, including the preparation of the budget and administration of the funds of
the Council:

(a) Determine and recommend socioeconomic development goals in pursuance of
established policies which shall guide the formulation and implementation of
the national development plan;

(b) Provide policy advice to the President of the Philippines on vital issues affecting
the socioeconomic development of the country;

(c) Direct the study of measures to ensure that regional development plans and
programs are integrated into the national development plan;

(d) Receive, and in appropriate cases, require reports on, and study measures to
improve the implementation of official development assistance from
multilateral and bilateral entities;

(e) Assess effectiveness of implementation of the national development plan;


(f) Integrate environmental concepts, principles and practices into the national
development plan for a balanced and cohesive approach to national
development;

(g) Pursue the integration and harmonization of the national development plan and
the legislative agenda priorities of Congress; and

(h) Study and recommend to the President of the Philippines and to Congress
sources of revenue as well as measures to reduce unnecessary expenditures to

the end that the resources of the Government will be used to the optimum

CHAPTER I
HARMONIZATION AND SYNCHRONIZATION OF DEVELOPMENT
PLANNING, INVESTMENT PROGRAMMING, BUDGETING, AND
MONITORING AND EVALUATION PROCESSES OF GOVERNMENT

ARTICLE I. DEVELOPMENT PLANS AND PROGRAMS, REPORTS
AND PUBLICATIONS

SEC. 22. Long-Term Development Plan. ~The NEDA, in consultation with regional,
local and other stakeholders, shall formulate a long term development plan which will
provide the overall direction to the medium-term and short-term development plans of the
country, to ensure consistency of government strategies, policies, programs, and projects
across political administrations. The long-term development plan shall contain the
development goals and milestones each administration should attain to realize the long-
term vision of the Filipino people.

SEC. 23. Philippine Development Plan (PDP) and Regional Development Plan
(RDP). ~ The NEDA, in consultation with appropriate public agencies, various private
sector and local government units, shall prepare an economic development blueprint for the
next six (6) years which shall be known as the Philippine Development Plan (PDP). The
PDP shall embody the government's socio-economic policies, strategies and programs in
support to and consistent with the development agenda of the President of the Philippines,
and geared towards the attainment of the development goals and objectives in the long-term
development plan.

At the regional level, the NEDA Regional Offices shall coordinate the preparation

of their respective regional development plans, consistent with the PDP. The RDPs shall
»


define the region’s development direction and identify policies, strategies and programs.

SEC. 24. Philippine Investment Program (PIP) and Regional Development
Investment Program (RDIP). — The preparation of the PIP and RDIPs shall be formulated
in support of PDPs and RDPs. The NEDA shall prepare a list of priority programs and
projects to be implemented by the national government, GOCCs, government financial
institutions (GFIs), and other national government offices and instrumentalities that will
contribute to the attainment of the sectoral goals and outcomes in the PDP and RDP.

The PIP and RDIPs shall be regularly updated. The NEDA, in consultation with
appropriate government agencies and stakeholders, shall prioritize sectoral and geographic
programs, projects and activities to be funded from government appropriations, ODA, PPP,
Tevenue sources generated by GOCCs, GFls, and other government bodies and
instrumentalities, and other viable sources of funding.

SEC. 25. National Physical Framework Plan (NPFP) and Regional Physical
Framework Plan (NPFP). — The NEDA shall prepare a framework which provides
analytical parameters for the planned allocation, use and management of the country’s land
and other physical resources. The NPFP shall help plan and manage these resources at the
national and subnational levels.

The NEDA Regional Offices shall coordinate the preparation of the sub-national
physical framework or physical development plans for the approval of their respective
RDCs.

The NPFP and sub-national physical framework or physical development plans
shall serve as the main reference documents in the preparation of the physical plans and
land use plans of provinces, cities, and municipalities in the country.

SEC. 26. Socio-Economic Reports (SERs) and Regional Development Reports
(RDRs). ~ To monitor the implementation of the PDP and RDP, the NEDA shall prepare
periodic socioeconomic reports. The SER and RDRs shall serve as inputs to policy and
decision makers in the formulation of policies, budgeting and implementation of programs
and projects, based on the development plans of the country.


SEC. 27. ODA Portfolio Review. - The NEDA shall review the status of all projects
funded by ODA, both multilateral and bilateral, and identify causes of implementation
problems and proposed solutions to bottlenecks, actual and prospective cost overruns, and
continued program or project viability. The NEDA shall submit to the President of the
Philippines and Congress a report on the outcome of the review not later than June 30 of

each year.

SEC. 28. Knowledge Management. ~ The NEDA shall establish a repository of data
and information, publication, research and analyses, and other information concerning the
Philippine economy and development. It shall manage, maintain, and make available such
information and documents to the public for the purpose of knowledge sharing.

ARTICLE I. LINKAGE AND ALIGNMENT OF PLAN
AND PROGRAM FORMULATION

SEC. 29, Planning and Program Formulation. — A Planning Call by the NEDB shall
be issued not later than two months after the newly elected President of the Philippines has
assumed office. The NEDA Secretary shall propose to the NEDB the standards and
guidelines for the Planning Call in the preparation of the PDP, RDPs, PIP and RDIPs,
including a timeline for the planning and investment programming activities preceding the
budget preparation activities to ensure that the strategic programs and projects identified
are provided with the required funding allocation.

The NEDA, in coordination with concerned government agencies and other
government instrumentalities, shall determine a timetable for the preparation and
formulation of sectoral plans and programs, to ensure that the policies and strategies
contained in the respective sectoral plans are considered and incorporated in the PDP. The
timetable for the formulation of the PDP/RDPs and PIP/RDIPs shall align with the
budgeting timetable to ensure that the strategic programs and projects identified are
provided with the required funding allocation.

SEC. 30. Planning, Programming, and Budgeting Linkage. - The NEDA shall
ensure a strong, efficient and effective linkage between development planning,
programming and budgeting.


The NEDA, together with the Department of Budget and Management and other
relevant government oversight agencies, shall ensure that the annual and multi-year
appropriations for programs and projects are aligned with the development strategies in the
PDP and RDPs.

SEC. 31. Adoption and Implementation of Plans and Investment Programs. — The
RDCs shall approve their respective RDPs and RDIPs for consideration in the PDP and
PIP. The NEDB shall approve the PDP and PIP for adoption and implementation of
government agencies.

SEC, 32. Integration of National, Regional and Local Plans and Programs. ~ The
NEDA shall integrate major regional and local development priorities into the PDP and
RDPs, respectively. Furthermore, the NEDA, through the NEDA Regional Offices, shall
oversee the formulation of provincial development and physical framework plans so that
local development thrusts are aligned with and shall contribute to the national and regional
level plans and programs.

The NEDA shall mainstream the inclusion of regional priorities in the programs and
projects of the national government agencies, and subsequently, in the respective budgets
of national agencies.

The NEDB, through the DBCC, shall identify and estimate the level of expenditure
program of national government agencies by region, in accordance with the approved
regional medium-term development plans and regional medium-term development
investment programs.

SEC. 33. Regional Development Council (RDC). — The NEDA Regional Offices
shall serve as secretariat of the Regional Development Councils (RDCs) composed of local
government officials, regional heads of departments and other government offices, and
representatives from non-governmental organizations within the regions, created pursuant
to Section 14, Article X of the Constitution. All District Representatives shall sit as non-
voting members of their respective RDCs.

To ensure that socioeconomic development programs and activities of government

are undertaken with extensive and active participation and support of various government

2


agencies, as well as private sector institutions at the national, regional and local levels, the
NEDA shall prepare and submit for presidential approval, policy proposals for the
strengthening of the RDCs to make them more effective in ensuring sustainable,
participatory and equitable development. The strengthening of the RDCs must also serve
the purpose of providing a responsive forum at the regions for the meaningful participation
and support of the concerned District Representatives.

SEC. 34. Consultations. - The NEDA shall aim to maximize participation of all
concerned local government units, community organizations and beneficiaries, civil
society organizations, non-government organizations, people’s organizations, the academe,
and other private organizations in order to reflect that the priority needs are incorporated
into the formulation of policies, plans, programs and projects. Civil society organization
Advisory Boards shall be organized at the national and regional levels, as an
institutionalized consultative mechanism at all planning levels and planning committees in
the formulation of the PDP and RDPs, respectively.

SEC. 35. Technical Assistance. — The NEDA shall provide technical assistance to
the local government units on how to localize national development strategies, particularly
in planning and investment programming to ensure alignment of local development plans
and strategies with the PDP and RDP. It shall also assist local government units in
identifying and developing programs and projects, and redirecting resources into more
productive activities to achieve the intended development outcomes in their respective

areas.

SEC. 36. Coordination with Autonomous and Administrative Regions. — The NEDA.
shall ensure effective coordination with autonomous and administrative regions that have
separate planning offices in the formulation of the PDP and in the conduct of other relevant
planning activities affecting said regions.

ARTICLE I. MONITORING AND EVALUATION OF
PLANS AND PROGRAMS

SEC. 37. Monitoring and Reporting on the Implementation of Plans and Programs.

2


~— The relevant NEDB Committees shall monitor the implementation of the PDP, RDP, PIP
and RDIPs, including sectoral plans and programs on an annual basis, to determine if the
targets identified in the plans and programs were achieved. The monitoring results shall be
reported to the NEDB, the House of Representatives and the Senate, and other concerned
agencies for purposes of adjustments in policies, programs and projects.

‘The NEDA shall facilitate the conduct of monitoring and evaluation of programs
and projects at the national level, complemented by the Regional Project Monitoring and
Evaluation System at the regional levels. The Department of the Interior and Local
Government shall complement NEDA’s monitoring, reporting and facilitation of programs
and projects at the sub-regional level through the Local Project Monitoring Committees.

SEC. 38. Evaluation of the Implementation of Plans and Programs. — A national
evaluation agenda shall be formulated consistent with a National Evaluation Framework
that shall provide for the purposive conduct of evaluation of plans and programs
implemented by the public sector. Relevant NEDB Committees shall identify and
commission, or instruct agencies to conduct public sector evaluation studies in support of

good governance, transparency, accountability, and evidence-based decision making

CHAPTER II
TRANSITORY AND OTHER MISCELLANEOUS PROVISIONS

SEC. 39. Transitory Provision. — The powers and functions, applicable funds and
appropriations, records, files, equipment, facilities, supplies, property, and personnel of the
current NEDA Secretariat are hereby transferred to the new NEDA. All officials and

employees of the current NEDA Secretariat shall be retained.

SEC. 40. Transfer of Rights and Obligations. — The NEDA shall, by virtue of this
Act, be subrogated to all the rights and assume all the obligations of the current NEDA
Secretariat, and all its liabilities that pertain to its pertinent funds and appropriations,
records, files, equipment, facilities, supplies, property, and personnel, including
unexpended portions of its members’ respective salaries.

SEC. 41. Appropriations. — The amount necessary to cover the initial

7


or

implementation of this Act shall be charged against the current year’s appropriations of the
NEDA. Thereafter, such sums as may be necessary for the continued implementation of
this Act shall be included in the annual General Appropriations Act.

SEC. 42. Implementing Rules and Regulations. ~ Within ninety (90) days from the
effectivity of this Act, the NEDA shall promulgate the rules and regulations, as well as the
issuances, necessary to ensure the proper implementation of the provisions of this Act.
These implementing rules and regulations shall take effect fifteen (15) days after the

completion of their publication in two (2) newspapers of general circulation

SEC. 43. Separability Clause. ~ If any provision or portion of this Act is declared
unconstitutional, the remainder of this Act or any provision not thereby affected shall

remain in full force and effect

SEC. 44. Repealing Clause. ~ Executive Order No. 230, series of 1987, is hereby
repealed. All laws, decrees, executive orders, ordinances, rules, regulations, and other
issuances, or parts thereof, which are inconsistent with any provision of this Act, are hereby
repealed, amended, and/ or modified accordingly.

SEC. 45. Effectivity. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or ina newspaper of general circulation.

Approved,