HOUSE °F REPRESENTATIVES

REPUBLIC OF THE PHILIPPINES ECEIVED
HOUSE OF REPRESENTATIVES 22 AUG 2016
Quezon City DATE

TIME:
BY:

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 3147 REGISTRATION UNIT
BILLS AND INDEX SERVICE

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO.

Explanatory Note

Article Il, Section 16 of the Philippine Constitution provides, “The State shall protect and
advance the right of the people to a balanced and healthful ecology in accord with the rhythm
and harmony of nature.”

Lake Lanao is the second largest freshwater lake in the Philippines. It is located in the Province
of Lanao del Sur and stands at 701.35 meters above sea level. It has an area of 354.60 square
kilometres and a mean depth of 60 meters, with the deepest part at 112 meters. It is home to 18
endemic species of freshwater fish and supports a large number of water fowl.

‘The lake is known as one of the world’s 17 ancient lakes, hence, its historical, cultural,
economic, and ecological importance to the country, more importantly to the Maranao people
who continue to live in its surroundings. It is highly suitable for fishing development and is a
major source of livelihood among fisherfolks in the surrounding cities and municipalities of the
lake. Lake Lanao is more importantly known, however, as a major source of energy in
Mindanao. It supplies water to existing hydroelectric power plants in the area generating up to
70% of the island energy needs.

However, experts have expressed their concern with regard the deteriorating condition of the
lake, Reportedly, a number of fish species endemic to the lake have gone extinct, The water
quality has deteriorated due to a number of factors such as illegal logging, pollution, and other
environmental activities in the area. Likewise, the absence of a clear framework to manage Lake
Lanao also contributed to its current poor state.

This proposed measure therefore creates a Lake Lanao Development Authority that shall make
and implement a comprehensive development plan designed to promote the rapid social and
economic development of Lake Lanao as well as its protection and conservation, The Authority
shall be governed by a Board of Directors who shall exercise the corporate powers granted under
this bill. Moreover, the Authority is tasked to establish research centers to undertake studies on
the marine and natural resources of Lake Lanao for policy or plan formulation. Finally, the
Authority shall be exempt from taxes to allow the optimal use of its funds for the development of
Lake Lanao.

In view of the foregoing, approval of this measure is earnestly sought.



CREATING THE LAKE LANAO WATERSHED DEVELOPM.

REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
irst Regular Session

House Bill No. 3147

Introduced by MAGDALO Party-List Representative
HON. GARY C, ALEJANO

AN ACT

T AUTHORITY AND

PROVIDING FUNDS THEREFOR

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

assembled:
1 SECTION 1. Title. - This Act shall be known as the "Lanao Lake
2 Watershed Development Authority Act of 2016”
3
4 SEC. 2. Declaration of Policy. - It is hereby declared to be the national policy
5 to promote, and accelerate the development and balanced growth of the Lake Lanao
6 — Watershed area consistent with the national and regional plans and policies for social
7 and economic development and to carry out a comprehensive development plan of the
8 Lake Lanao Watershed area, within the context of adequate provisions for
9 environmental management and control, preservation of the quality of human life,
10 environment and ecological systems
uw It is further declared to be the policy of the State that the development plan of
12 Lake Lanao Watershed shall likewise promote higher productivity, increase income,
13 alleviate poverty, create more employment opportunities, encourage sustainable
14 development and people empowerment
15
16 SEC. 3. Creation of Lake Lanao Watershed Development Authority. «
17 For the purpose of carrying out and effecting the declared policy, as provided
18 for in Section one hereof, there is hereby created a body corporate to be
19 known as the Lake Lanao Watershed Development Authority,
20 hereinafter referred to as the Authority, which shall be organized within
21 one hundred twenty (120) days after the approval of this Act. The
22 Authority shall execute the powers and functions herein vested and conferred
23° upon it in such a manner as will aid to the fullest possible extent in carrying
24 — out the purposes set forth below


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SEC. 4. Supervision. - The Authority shall be under the supervision of the
Office of the President.

SEC. 5. Territorial jurisdiction. - Except as herein otherwise provided,

the Authority shall cover the Lake Lanao Watershed Area.

SEC,

. 6. Principal Office. - The principal office of the Authority shall
be located in Marawi City or any of its adjacent municipalities
However, whenever it deems necessary, it may establish such branches,
subsidiaries, offices or agencies, in any municipality, or barangay in

Lanao del Sur or any focal gov

‘nment unit within the territorial jurisdiction

‘of Muslim Mindanao.

SEC. 7. Term. - The Authority shall have a term of fifty (50) years from

the effectivity of this Act renewable for the same period unless otherwise

provided by law,

SEC. 8. Special Powers and Functions. - ‘The Authority shall exercise and
perform the following powers and functions

1. To gather and collate planning data, research references, statistics, as well
as their relevant and essential elements, and on the basis of such materials, draft a

holistic, rational, systematic, comprehensive plan consisting of the short, medium and

long-term programs for the development of the Lake Lanao area, after carefully
evaluating the present social and economic conditions, available resources and
opportunity costs, problems and difficulties, as well as the existing national and

regional policies and plans for the area and providing for

such safeguards as are
necessary for ecological balance and environmental protection;
2. To monitor and coordinate the implementation of such plan according to

the Authority's multi-level and multi.

.ctoral programs, particularly, such part of the

Plan as will benefit the preservation and conservation of the ecological system, as

well as the protection and advancement of the environmental condition in the area, to
preserve life, protect public health and safety: and to maximize the utilization of the
area's spatial land, manpower resources and indigenous raw materials for agricultural,
industrial and commercial uses; water resources for fisheries and fishing; unique arts,
cultural designs and scenic landscapes for tourism; and to induce and engender higher

production, employment, income, savings and investments in the area for Its

economic growth and social progr


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3. To plan and coordinate the establishment of such economic and social
structures as may be necessary for entrepreneurial mobilization as will provide local
traders, craftsmen, farmers, fishermen, and workers access to credit facilities,

equipment and machineries, raw materials and agri-inputs, transportation and

communications, storage and drier, skills training and tax exemptions to fast-track the
development of the area by means of higher productivity in farming, manufacturing,
trading and fishing, stimulate the efficient use of the factors of production;

4, To identify and recommend viable areas which will be given priority

industrial and commercial development, as well as their possible sources of financing,

whether domestic or foreign; to encourage their early utilization and development for
economic growth and expansion through government action or by private initiative,
and to promote the use or appreciation of such modern technology, facilities and
equipment, methods and processes as are available for their maximum and
economical use:

5. To adopt workable and long-range policies for the intensification of local
products for export; to sustain agricultural, industrial and commercial development in
the area; to pave the way for the expansion of its domestic market structure, and to
support the internal growth of income and the accumulation of savings for local
investment;

6. To encourage people's participation in the organization and development of
cooperatives, nongovernmental organizations, neighborhood organizations and other
groups for the development of livelihood projects and for the economic upliftment
and amelioration of the members thereof through entrepreneurship development and

the provision of such technical and financial aids, as may be necessary, to make them

self-supporting, self-sustaining or self-reliant economic entities, especially such

sectoral livelihood projects or income generating activities which are capital-starved

but are otherwise profitable, labor-intensive and are utilizing indigenous local raw

materials and traditional skills, arts and designs to promote the expansion of micro-
enterprises in the area;

7. To coordinate and monitor the building, operation and transfer of projects
involving the construction of abattoirs, dams, reservoirs, roads, wharfs, telephones,

transmission projects as are necessary including pipes along rivers or its tributaries

subject to the approval of the President of the Philippines and upon the
recommendation of the department head concerned;
8, To propose the zonification and reclassification of land to the local

government units concerned;


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9. To reclaim lands or cause the reclamation of portions of the lake including
foreshore and submerged areas by dredging, filling or other means, or acquire
reclaimed lards in joint venture with private entities under a sharing agreement,

10. To rationalize the uses of, or to hold, administer, utilize, encumber or
otherwise deal with public lands and/or to acquire, by purchase urban idle lands,
whether public or private for the underprivileged, displaced or homeless citizens; to

make available to them decent housing at affordable costs with appropriate basic

services and ai to employment opportunities and/or “growth center” for

livelihood projects or income-generating projects

11. To formulate and recommend plans, programs and projects and monitor
the issuance of licenses, franchises or concession relating to or for the utilization and
development of the natural resources of the area or any of the places within its
territorial jurisdiction subject to such limitations as are provided for by law or the
Constitution and to promulgate such rules and regulations as are necessary for the
preservation, conservation and advancement of the natural resources of the area,
prescribing therein the form and manner through which their uses or utilization may
be authorized particularly its timber, mineral land, water and fisheries resources
subject to the approval of the President, and upon the recommendation of the

Secretary of the Department of Environment and Natural Resources and the Secretary

of the Department of Agrarian Reform;

12, To coordinate programs, projects or activities pertaining to the
construction of infrastructure program such as river flood control, sewerage work,
water supply, irrigation and such other related public works as may be required under
its development plan or programs including the readjustment, relocation or restoration
of population within the area as may be necessary; and

13, To extend the Authority's expertise on planning, management and such

other facilities as may be necessary to prospective and present investors.

9. Corporate Powers, ~ As a corporate body, the Authority shall

exer specific powers and functions as follows

1) To succeed on its corporate name;

2). To sue and be sued in such corporate name;

3) To adopt, alter and use a corporate seal,

4) To adopt, amend, and repeal its by-laws:

5) To enter into contracts of any kind and description, to enable it to carry
out its purposes and functions under this Act;

6) To acquire, buy, purchase, hold or tease, such personal and real property

as it deems necessary or convenient in the transaction of its business and/ or in


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relation with carrying out its purposes under this Act; and to lease, mortgage, sell,
alienate, or otherwise encumber, utilize, exploit or dispose and such personal and real

property held by it, subject to prior or existing individual or communal right of

private parties or of the government or any agency or enterprise thereof.

7) To exercise the right of eminent domain whenever the Authority deems it
necessary for the attainment of the objectives of the Authority under this Act:

8) To borrow funds from any local or foreign financial institutions
independent of the bonds it may issue or may continue to issue, to cary out the
purposes of this Authority under this Act;

9) To purchase, hold, alienate, mortgage, pledge or otherwise dispose of the
shares of the capital stock of, or any bond, securities, or other evidence of
indebtedness created by any other corporation, partnership, or government agencies

or instrumentaliti

es, and with, the owner of said stock, to exercise all the rights of
ownership, including the right to vote thereon; Provided, That the authority shall not
invest its funds in any highly risky debt instruments issued without recourse to
commercial banks or investment houses as well as in any highly speculative stocks

10) For carrying on its business, or for the purpose of attaining or furthering
any of its objectives, to perform any and all acts which a corporation, partnership, or
natural person is authorized to perform under the laws now existing or which may be
enacted hereafter

11)To coordinate and integrate multi-sectoral participation and activities
relating to the utilization of Lake Lanao within the context of national plans and
policies for social and economic development;

12)To issue such rules and regulations as may be necess

‘ary to effectively

carry out the powers and purposes herein; provided including the plans, programs and

projects of the Authority, subject to the approval of the board of directors;
13)To undertake survey, inventory and appraisal of the lake watershed area

and develop comprehensive plan for its protection, conservation and development;
14)To address the concerns on land use planning and management and

flooding around the lak

15) To conduct and/or promote special studies and researches with other
government or private agencies on all related aspects of water resources development,
such as but not limited to weather modification and environmental quality:

16)To exercise such powers and perform such other acts as may be necessary

to effectively carry out the provisions of this Act

SEC. 10. Capital Stock.
stock of Two Hundred Million Pesos (P200,000,000.00) to be divided into

The Authority shall have an authorized capital


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two million shares (2,000,000) shares of stocks with a par value of One
Hundred Pesos (P100,00) per share; Provided, That majority of the authorized
capital stock shall be subscribed by the national government and any of its
instrumentalities and the balance to be subscribed and paid by the private
sector: Provided further, That in the case of the national government,
the initial amount necessary to subscribe and pay for the initial shares of

stock shall be included in the annual General Appropriations Act

SEC. 11. Operating Expenses. - The amount of Fifty Million Pesos
(P50,000,000,00) for the initial operating expenses of the Authority shall

be included in the General Appropriations Act. Thereafter, the Authority

shall provide for its operations and maintenance

See. 12. Power to Incur Debts and to Issue Bonds, - Whenever the Board of
Directors may deem it necessary for the Authority to incur indebtedness or to issue
bonds to carry out the provisions of this Act, it shall by resolution so declare and state
be confirmed by the affirmative vote of the stockholders representing a majority of
the subscribed capital stock outstanding and entitled to vote

The authority shall submit to the NEDA Board and the Monetary Board of
Central Bank, for approval, its proposal to incur indebtedness or to issue bonds, This

shall be considered authorized upon approval of the President of the Philippines

SEC. 13. Sinking Fund Account, - A sinking fund shall be established in
such manner that the total annual contribution thereto accrued at such rate of interest

as may be determined by the Board of Directors as confirmed by the stockholders

representing a majority of the subscribed capital stock outstanding and entitled to
vote, shall be sufficient to redeem at maturity the bonds issued under this Act

Such fund shall be under the custody of the treasurer of the Authority who
shall invest the same in such manner as the Board of Directors may direct, charge
expenses of investment to said sinking fund, and credit the same with the interest on

investment and other income according thereto

SEC, 14. Authority to Contract Foreign Loan, - The Authority is hereby
authorized to contract loans, credits or indebtedness in any convertible foreign
currency or capital goods from time to time from foreign governments or any
international financial institutions or fund sources

With the prior concurrence of the Monetary Board and in accordance with

Section 20 of Article VII of the Constitution, the President of the Philippines is


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hereby further authorized to guarantee, in the name and/or behalf of the Republic of

the Philippines, the payment of any loans herein authorized, as well as the

performance of all or any of the obligations undertaken by the Authority, pursuant to
loan agreements entered into with foreign governments or any international financial
institutions.

In the negotiation and contracting of any loan, eredit or indebtedness under

this section, the provision of Section 4 of Republic Act No, 4860, as provided in
Section 5 of Republic Act No. 6142, as amended, shall apply,

The foreign loans, credits or indebtedness contracted under this subsection
and the payment of the principal Interest and other charges thereon, as well as the
importation of machineries, equipment, materials and supplies by the Authority, paid
from the proceeds of any loan, credit or indebtedness, incurred under this Act shall be
exempt from all taxes, fees, imposts, other charges and restrictions imposed by the

Republic of the Philippines or any of the agencies and political subdivisions

SE

15. Tax exemption. — Within five (5) years from the effectivity of this
Act, the Authority shall be exempt from the payment of income taxes, franchise taxes,
realty taxes, and all kinds of taxes and licenses to the national government, its
provinces, cities and municipalities and other government agencies and
instrumentalities; Provided, That its subsidiary corporation shall be subject to all said
taxes five (5) years after their establishment under graduated scale. Such exemption
shall include any tax or fee imposed by the 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 its principal and interest

SE

. 16, Structure, Staffing and Pay Scale. - The Board shall determine the
organizational structure, staffing pattern and pay scale of the Authority, and the
officers and employees thereof conformably to that of existing government-owned or
controlled corporations and subject to existing rules and regulations of the Civil

Service Commission and the Department of Budget and Management

SEC. 17. Subsidiary Corporation. - The Authority may, for the attainment of
its purpose and objectives, establish and maintain one or more subsidiary corporations
subject to the approval of the Securities and Exchange Commission, ‘The Chief
Executive Officer of the Authority or his representative shall be ex officio member of

the Board of Directors of said subsidiary corporation.


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SEC. 18. Merit System. - All officials and employees of the Authority and its
subsidiary corporation shall be selected and appointed on the basis of merit and
fitness, in accordance with a comprehensive and progressive merit system, which
shall be established by the Authority immediately upon its organization. The
recruitment, transfer, promotion and dismissal of its personnel including contractual
workers shall be governed by such merit system in accordance with existing laws,

rule and regulations

BY

Authority shall be vested in and exercised by a Board of Directors, hereinafter

'C. 19. Board of Directors. - The corporate powers and functions of the

referred to as the Board, which shall be composed of eleven (11) members as follows:

1) Secretary, Department of Energy, as ex officio chairman;

2) Regional Governor, Autonomous Region In Muslim Mindanao as ex-
officio, Vice-Chairman;

3) President, National Power Corporation, as ex-officio member;

4) Provincial Governor, Lanao del Sur, as ex-offlcio member:

5) Representative, Ist District of Lanao del Sur;

6) Represetative of the Congressman, First District of Lanao del Sur

7) City Mayor, Marawi City, as ex officio member:

8) Representative, Department of Environment and Natural Resources:

9) Representative, Department of Agriculture;

10) Representative, Department of Trade and industry; and

11) One (1) representative from the private sector, either from the cooperative
federation or union, nongovernmental organization or any duly registered
association to be appointed by the President of the Philippines who shall
serve for a term of three (3) years; Provided, That in the event of vacancy,
the successor appointed to fill the same shall serve only the unexpired

portion of the term of the member he succeeds.

SEC. 20. Quorum. - The presence of a majority of the members of
the board shall constitute a quorum for the transactions of the business the

board.

SEC. 21. Meetings, ~ The board shall meet preferably at its principal office
at least once a month and as frequently as necessary to discharge its duties and
responsibilities, The Board shall be convoked by the Chairman or upon the written

request of at least three (3) of its member, Except as otherwise provided for in this


Corona ya

Act, the votes 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,

The members of the Board shall receive per diem for every meeting actually
attended and shall be reimbursed by the Authority for actual expenses (including
travelling and subsistence expenses) incurred by them in the performance of their

duties in accordance with existing law.

SEC. 22. Powers and Functions — - The Board shall have the following

powers and functions,

1) To formulate policies, develop programs and establish projects, and

promulgate rules and regulations to govern the conduct of the affairs of the
authority;
2) To adopt and approve the annual or supplemental budget of the authority

to cover its financi

al operation;

3) To appoint and fix the compensation and allowances of all the officers and
employees of the Authority including the Deputy Administrator and
Assistant Deputy Administrator in accordance with existing laws,

4) Upon the majority vote of all members on the Board do suspend, remove
or otherwise discipline its officers and employees for just cause:

5) To submit an annual report to the President and render such special reports
as may be required or deemed necessary; and,

6) To perform such other functions as may be necessary to carry out the

provisions of this Act

SEC 23, Administrator, - The Board shall have an administrator to be
appointed by the President of the Philippines who shall be the Chief executive officer
of the Authority. The administrator shall serve for a term of four (4) years subject to

renewal upon recommendation of the Board and at the pleasure of the President.

The administrator shall be assisted by such Deputy Administrator and

Assistant Deputy Administrator as the Board may authorize and appoint, Their
tenure, qualification and compensation shall be determined and fixed by the board in
accordance with existing laws,

Preferably, the administrator shall possess, at least, a master’s degree in
economics or shall have attended an MBA course at a reputable institution of higher
learning for, at least, two (2) consecutive years. He must also have held for, at least
five (5) years an executive or managerial position, and he must be a native of the area

and is an actual resident thereof.


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SEC. 24. Duties and Functions of the Administrator. - The administrator
shall perform the following duties and functions:
1) Submit, for the consideration of the Board, the policies and measures
which he believes to be necessary to carry out the provisions of this Act;
2) Execute and administer the policies and measures approved by the board;
3) Direct and supervise the operation and internal administration of the

Authority. He may, for efficiency and effectiveness, delegate certain

administrative responsibilities to other officers of the Authority

ubject to
the rules and regulations of the Board;
4) Represent the Authority in all dealings with other offices, agencies and

instrumentalities of the government and with all other persons, entities ot

enterprises, whether public or private, domestic or foreign;

5) Sign contracts entered into or concluded by the Board, and such other
correspondence and documents of the Authority;

6) Represent the Authority, either personally or through counsel, in any legal
action or proceedings; and,

7) Exercise such other duties and functions as may be granted to him by the

Board.

SEC. 25. Service Departments. - There shall be created by the authority
the following service departments: Administration Operation, Finance
and Management, Planning and Programming, Legal, auditing, and such
other department, division, section or unit as the Board may deem
necessary to cary out its powers and functions, The tenure qualification
and compensation of the personnel of these departments or any of its unit

shall be determined and fixed by the Board in accordance with existing laws.

SEC. 26. Auditing. - The auditing department shall be headed by duly
appointed paid according to law All personnel of the auditing, department
shall be appointed and their number and salaries fixed by the Commission on

Audit in accordance with existing laws

SEC. 27. Miscellaneous Provision. - Within ninety (90) days upon the
ffectivity of this Act, the Authority shall be organized to carry out its purposes and
objectives: Provided, That the Authority shall, furthermore, within one (1) year upon
organization, formulate a comprehensive plan for the rapid and balanced development

of the Lake Lanao Area; Provided, finally, That the aforesaid plan shall be submitted

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to the President after proper evaluation and upon the recommendation of the National

Economic and Development authority,
SEC. 28, Applicable of the Corporation Law - The provisions of the
corporation law, as amended, insofar as they are not inconsistent with this Act
shall be applicable to the operations of the Authority
SEC.29. Repealing Clause. - All laws, decrees, orders, rules and
regulations or parts thereof inconsistent with the provisions of this Act are

hereby repealed, amended or modified accordingly

SEC. 30. Effectivity Clause. - This Act shall take effect fifteen (15) days after

its publication in the Official Gazette or in a newspaper of general circulation

Approved,

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