NINETEENTH CONGRESS OF THE PHILIPPINES 
REPUBLIC OF THE PHILIPPINES
First Regular Session
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72 JUL 12 A8 S3
S. B. No. 300
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INTRODUCED BY SENATOR ALAN PETER' COMPANERO" S. CAYETANO
AN ACT
DECENTRALIZING ECONOMIC DEVELOPMENT TO FACILITATE FURTHER 
GROWTH IN OTHER AREAS OF THE PHILIPPINES, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Philippines is among the fastest growing economies in Asia. The 
Philippines is also one of the world's fastest growing nations with an estimated 
population of 110.8 million for 20211 and is projected to reach almost 111.5 million 
by mid-year 2022 and 115.3 million by mid-year 2025.2 The government must 
institutionalize proper measures to ensure that economic growth is inclusive and 
enjoyed by every Filipino.
We all saw the success story of Clark in Pampanga. The former air base was 
transformed into a developed urban area comprising the Clark Freeport Zone, Clark 
International Airport, Clark Global City, and New Clark City.3 The Clark Development 
Corp. CCDC) reported that it has attracted Php 3.68 billion of foreign investments in 
2021, 43% higher than the Php 2.6 billion approved foreign investments in 2020. In 
addition, the number of Filipino investments in CDC increased by 16% in the same 
period.4 Clark is an embodiment of how development can go beyond Metro Manila. 
The Government should take on the job of facilitating the development of “Metros" 
outside of Manila.
Through the years, Metro Manila or the National Capital Region [NCR) has been 
the center of development and national progress. In 2021,18.6% or 201,080 business 
establishments were in NCR and more than one-third (33.6%) of the total 
employment was generated by these establishments. Majority of Micro, Small, and 
Medium Enterprises (MSMEs) in 2021 are also in NCR with 199,170 establishments, 
which again is followed by Region IV-A and Region HI with 159,329 and 137,196 
establishments respectively.5 As such, NCR has become the most congested region in 
the Philippines with a population density of 21,765 Filipinos per square kilometer. In
1https://popcom.gov.ph/popcom-number-of-filipinos-in-2021-estimated-at-110-8-million-sizes-of-families-
trending-Iower-at-4-
members/#:~:text=POPCOM%3A%20Number%20of%20Filipinos%20in;Commission%20on%20Population
%20and%20Development
2bttps://psa.gov.pb/content/updated-projected-mid-year-population-pbilippines-2020-2025
3 bttps://bcda.gov.pb/sites/default/files/2021-03/Clark%20Primer.pdf
4 bttps://www.pna.gov.pb/artides/1168331
5bttps://psa.gov.pb/content/more-108-million-establisbments-operated-2021-wbicb-generated-total- 
employment-85 7-million


contrast, Regions IV-A and III, which ranks as the 2nd and 3rd most populated regions 
in the Philippines, only have a population density of 977 and 567 Filipinos per square 
kilometer, respectively; as of 2021.6
As of 2018, NCR-centrism has brought with it overcrowding, horrendous traffic 
jams costing Php 3.5 billion in lost opportunities per day7, uncontrolled flooding, and 
alarming social costs. Moreover, NCR-centrism has produced hurdles to development 
in other regions as businesses, world class health facilities and the Philippines' best 
educational institutions, are located in Metro Manila. The problems brought about by 
this level of concentration cannot be solved by continually building new 
infrastructure and devoting more resources to the perceived “imperial Manila". It is 
high time that every part of the Philippines becomes as much a priority as Metro 
Manila.
Article XII, Section 1 of the 1987 Philippine Constitution provides that11 ...all 
sectors of the economy and all regions of the country shall be given optimum 
opportunity to develop. Private enterprises, including corporations, cooperatives, and 
similar collective organizations, shall be encouraged to broaden the base of their 
ownership...". In this regard, there is a need for the State to encourage, promote, and 
maximize use of existing infrastructure so as to accelerate economic and social 
development to all parts of the Philippines.
No less than President Rodrigo Roa Duterte himself also espouses this view 
and included Federalism as one of his priorities. This vision of decentralization is 
perfectly encapsulated in the President's statement, “...for what good will progress be 
if its benefits do not trickle down to the poorest of the poor. Let us bear in mind that 
the test of good government is not whether we can add more to the abundance of 
those who have much, but whether we can provide for those who have so little." It is 
with this reason that this Representation filed this bill in the 18th Congress.
This bill's objective is to create a more progressive Philippines for every 
Filipino through:
1. Conducting periodic comprehensive studies on focusing on challenges and 
opportunities for regional economic development;
2. Ensuring quality health and education facilities in all regions;
3. Establishment of Regional Centers of Excellence;
4. Determining the appropriate region and specific location to transfer selected 
National Government Agencies (NGA) including the transfer of the various 
NGAs;
5. Planning, bidding, and implementation of programs, activities, and projects, 
within the respective regions; and
6. Establishment of mechanisms of decentralization including procurement 
procedures implemented at a regional level, among others.
In view of the foregoing, approval of this bill is ear
ALAN P
ANERO'' S. CAY
ANO
6https://psa.gov.ph/content/highlights-population-density-philippines-2020-census-population-and- 
housing-2020-
cph#:~:text=The%20population%20density%20of%20the%20NCR,was%2019%2C137%20per%20square
%20kiIometer.&text=Aside%20from%20the%20NCR%2C%20five,per%20square%20kiIometer%20in%202
0
7https://www.cnnphilippines.com/transportation/2018/02/23/JICA-P3.5-biIlion-traffic.html


NINETEENTH CONGRESS OF THE PHILIPPINES 
REPUBLIC OF THE PHILIPPINES
First Regular Session
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'22 JUL 12 A8 S3
S. B. No. 300
Rl-CEIVED BY:
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INTRODUCED BY SENATOR ALAN PETER "COMPANERO'' S. CAYETANO
AN ACT
DECENTRALIZING ECONOMIC DEVELOPMENT TO FACILITATE FURTHER 
GROWTH IN OTHER AREAS OF THE PHILIPPINES; AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the "Progresibong 
Pilipinas Para sa Lahat ng Pilipino Act".
SECTION 2. Declaration of Policy. - It is the policy of the State to ensure the 
equitable distribution of wealth and opportunity to each Filipino through good 
governance in conjunction with consistent national policies, coordinated regional 
strategies, and a clear blueprint towards a progressive Philippines for every Filipino.
SECTION 3. Philippine Decentralization Committee. - There is hereby 
created a Philippine Decentralization Committee (PDC] to be chaired by the Executive 
Secretary with the following members:
a. Secretary of the Department of Public Works and Highways (DPWH};
b. Secretary of the Department of Finance [DOF);
c. Secretary of the Department of Budget and Management (DBM);
d. Secretary of the Department of Transportation (DOTr);
e. Director-General of the National Economic and Development Authority 
(NEDA];
f. Representative from the League of Governors;
g. Representative from the League of Cities; and
h. Experts from the private sector and the academe in the following, but not 
limited to, fields of expertise: urban planning and management, supply 
chain management, and agro-business, and industrial growth.
SECTION 4. Philippine Decentralization Plan. - The PDC shall formulate a 5 
year midterm, and a 10 year long-term plan within One Hundred Eighty (180} days 
from the effectivity of this Act, containing the following:
a. Comprehensive studies focusing on the challenges and opportunities for 
regional economic development; and


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b. Assessment of possible relocation sites for government offices and 
employees and provision of incentives and benefits therefor.
SECTION 5. Relocation of National Government Agencies (NGA). - The PDC
shall conduct a comprehensive feasibility study on the possibility of transferring or 
relocating NGAs, which will include the necessary infrastructure, technology, 
equipment, and other facilities to ensure effective and efficient communication and 
coordination between and among the various NGAs with the end view of enhancing 
the delivery of public goods and services in the regions/countryside. As far as 
practicable, each region must have at least one major NGA.
SECTION 6. Philippine Healthcare Development Program. -There is hereby 
established a Philippine Healthcare Development Program, which provides for an 
integrated and comprehensive approach to health development by ensuring 
adequate health facilities to support the improvement and sustainability of the 
healthcare system with the goal of providing effective and affordable services for the 
entire Philippine population and improving health outcomes. The program shall also 
provide for the establishment of specialty hospitals within Northern and Southern 
Luzon, Visayas and Mindanao similar to those currently existing in Metro Manila such 
as the Philippine Heart Center, Lung Center of the Philippines, National Kidney and 
Transplant Institute, and Philippine Orthopedic Center.
SECTION 7. Regional Centers for Excellence Development Program. -
There is hereby established Regional Centers for Excellence Development Program, 
which provides assured funding in the amount of 100 Billion Philippine Pesos (Php 
100,000,000,000) for the establishment and development of Regional Centers for 
Excellence outside of Metro Manila focusing on education and skills development to 
be determined by the Secretary of the Department of Education (DepEd), the 
Chairperson of the Commission on Higher Education (CHED) and the Director General 
Technical Skills and Development Authority (TESDA).
SECTION 8. Decentralization of Procurement Procedures for Major NGA 
Projects. - For major NGA projects located in areas outside Metro Manila, bidding 
and procurement mechanisms must be established to allow the aforementioned 
procedures to take place in the region/s involved.
Regional Offices of NGAs shall perform the planning, bidding, and 
implementation of programs, activities, and projects, within their regions.
SECTION 9. Provision of Tax Incentives for Industries Locating Outside 
NCR. - With purposes of attracting investments and dispersing industries to all 
regions outside NCR, the DOF shall be responsible for providing appropriate 
incentives to locators and investors who situate or relocate their businesses or 
enterprises outside Metro Manila.
SECTION 10. Appropriations and Period of Implementation. - The PDF
under this Act shall be implemented over a period of ten (10) years. Within ninety 
(90) days from the effectivity of this Act, and every year thereafter, the President, 
upon the recommendation of the PDC, shall prepare the list of specific priority 
programs, projects and activities that need to be funded for the year, and submit the 
same to Congress for its consideration and approval in a joint resolution of the House 
of Representatives and the Senate.


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The annual appropriations for the PDF shall be included in the National 
Expenditure Program which reflects the amounts necessary to support the funding 
requirements for all programs, activities and projects approved by Congress under 
the preceding paragraph. The funds to be appropriated by Congress under this Act 
shall be treated as a distinct and separate budget item from the regular appropriation 
of the implementing agencies and shall be administered by the heads thereof. For the 
next five (5) years, there shall be a periodic review of funding requirements to 
determine the need for adjustments as necessary.
The PDC shall have an initial funding of 100 Million Philippine Pesos (Php 
100,000,000) to conduct a comprehensive study referred to in Section 4 of this Act.
SECTION 11. Annual Reports. - The PDC shall coordinate with the relevant 
national government agencies and local government units and prepare a consolidated 
progress report of the implementation of all priority programs, projects and activities 
funded under this Act.
Within the first quarter of the succeeding year, the PDC shall submit an annual 
report to the Office of the President, the Senate, and the House of Representatives. 
Such report shall be made available to the public for scrutiny, copying, and 
reproduction, and shall also be uploaded in the PDC's website.
SECTION 12. Congressional Oversight Committee. - There is hereby created 
a Congressional Oversight Committee to monitor and oversee the implementation of 
the provisions of this Act. The Committee shall be composed of six (6) members from 
the Senate and six (6) members from the House of Representatives with the 
Chairpersons of the Committee on Civil Service, Government Reorganization and 
Professional Regulation of the Senate and the Committee on Government 
Reorganization of the House of Representatives as joint Chairpersons of this 
Committee. The five [5) other members from each Chamber are to be designated by 
the Senate President and the Speaker of the House of Representatives, respectively. 
The minority shall be entitled to pro rata representation but shall have at least two 
(2) representatives from each Chamber.
SECTION 13. Separability Clause. - If any provision of this Act is declared 
unconstitutional, the same shall not affect the validity and effectivity of the other 
provisions hereof.
SECTION 14. Repealing Clause. - All laws, decrees, orders, issuances or 
portion thereof, which are inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly.
SECTION 15. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in two (2) newspapers of general circulation.
Approved,