Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

SARA

House Bill No. 3464
Introduced By Representatives Maximo B. Dalog, Eric G. Singson Jr., Victor F. Ortega,
Randolph S. Ting, Cartos M. Padilla, Bernardo M. Vergara, Maria Jocelyn V. Bernos,
Teddy Brawner Baguilgt; Jr., Eufranio “Franny” C. Eriguel, M.D., Jose R. Ping-ay,
Datalina G, Leonen-Pizarro, Ana Cristina Siquian-Go, Eleanor C. Bulut-Begtang, Patricio
T. Antonio, Aurelio D. Gonzales, Jr., Jesus “Boying” F, Cpleste, Ma. Rachel J. Arenas,
Rodolfo C. Farinas, Imelda R. Marcos, Ronald V. Singson, ManuefS. Agyao, Henedina R.
Abad, Ronald M. Cosalan, Rodolfo B. Albano, Jr., NapoleonS. Dy, Georgidi B. Aggabao,
Dakila Carlo E. Cua, Juan C. Ponce Enrile, Jr., Leopoldo N. Bataoil, Ma. Georgina P. de
Venecia, Carmen Kimi S. Cojuangeo, Marlyn L. Primicias Agabas, Antonio M. Diaz,
Francisco Emmanuel R. Ortega Ill, Robert Raymund M. Estrella, Ma. Theresa B. Bonoan-
David, Vincent P. Crisologo, Romeo M. Acop, Vicente F. Belmonte, Jr. and Linabelle Ruth
R. Vill a

EXPLANATORY NOTE

This bill seeks to create the North Luzon Development Authority which shall be
responsible for the overall policy direction, coordination and supervision of the entire
development efforts in the North Luzon Growth Area and its proposed transborder economic
integration with neighboring East Asian economies.

It has been the policy of the government to disperse industries and economic growth
outside traditional centers of development in order to balance the growth of the different regions
of the country. In line with this policy, the three regions comprising North Luzon has been treated
asa special growth area whose development is expected to stimulate trade, investment and
tourism activities, all with the end-in-view of reducing the incidence of poverty in the area. The
envisioned economic integration of North Luzon is in line with the principle of inter-LGU
collaboration as embodied under the Local Government Code wherein “local government units
may group themselves, consolidate or coordinate their efforts, services and resources for purposes
commonly benelicial to them”

The northernmost part of Luzon, which is composed of Region 1, Region 2 and Cordillera
Administrative Region, is an area full of economic potential. With a total land area of 57,971.60
square kilometers thaf represents about 20% of the total land area of the Philippines, North Luzon
is a region endowed with bountiful man-made and natural resources. Its population of 10,034,426
(Statistical year 2007) which is roughly nine percent of the country’s population is a veritable
source of skilled manpower

‘The North Quad Master Plan, considered as the area's blueprint for development, was
completed on February 1994 by the Louis Berger International Inc, (LBII) with funding from the
United States Agency for Intemational Development (USAID), The Plan recommended
development objectives, strategies, policies and priority projects and also recommended the
“coordinating council/commission” model as the most appropriate structure of the North Quad
Development Program



Im 1999, with recommendation from the United Nations Industrial
Development Organization-Investment Promotion Service (UNIDO-IPS) based in
Tokyo, Japan and upon the popular clamor of other areas in North Luzon to
participate in the North Quad Development Program (as manifested in various
‘municipal, provincial and regional resolutions), the North Quad’s coverage area was
expanded to include the whole of Region 1, Region 2 and CAR. With the issuance of
Executive Order No. 114, the North Luzon Growth Area was bom, covering 15
provinces with 289 municipalities and 11 cities.

‘The integration of the three regions of North Luzon into a single growth area
is not an end in itself, rather, it is means to a greater end. It is North Luzon’s response
to the proven success of subregionalism and economic cooperation in engendering
higher growth in the Asia-Pacific region. The creation of a larger tri-regional growth
area is a necessary first step in an effort to establish transbordes economic cooperation
with countries in East Asia, linking economically North Luzon with Taiwan in the
medium-term and the rest of East Asia (Japan, Korea, and Southern China including
Hong Kong). This concept is largely patterned after existing “growth triangles”, such
as the Singapore-Johor-Ria Growth Triangle or SUORI, the Northem ASEAN
Growth Triangle consisting of Indonesia, Malaysia and Thailand, the Southem China
Growth Triangle integrating southem China, Hong Kong and Taiwan; and the East
ASEAN Growth Area or EAGA covering Brunei, Indonesia, Malaysia and Southem
Philippines. These are cases in point to illustrate that regional economic cooperation
has indeed bred prosperity in the Asia-Pacific.

‘Through the North Luzon Growth Quadrangle Area-Program Management
Office (NLGQA) and its forerunners, the North Luzon Growth Commission (NLGC)
and the Northwestern Luzon Growth Quadrangle (NWLGQ), North Luzon has been
the subject of interregional planning and project cooperation involving the Regional
Development Councils of Regions 1, 2 and CAR. This area has special growth centers
/ economic zones (John Hay, Poro Point, Baguio Export Processing Zone, CEZA,
etc.) that can jumpstart transborder economic cooperation. The countries within
Central East Asia (to include but not limited to Taiwan, Southem China, Japan, South
Korea) represent economies that are dynamic and expanding with dollar surpluses for
investment as well as official development assistance which provide
complementarities for the formation of an economic cooperation with the NLGA as a
member economy.

The management of the North Luzon Growth Area including the establishment
of a transborder economic cooperation requires a permanent high level coordinating
body operating directly under the Office of the President which shall exercise
leadership in effectively mobilizing local support as well as national leadership
assistance in developing the growth area and forging transnational relations. The
creation of the North Luzon Development Authority is imperative as this will provide
continuity of programs and projects and ensure a sustained development of the area.

Passage of this bill is therefore respectfully recommended.

Bue Sm gypsn th
ERIC G. SINGSON, Jr.

ict, Mountain Province Second District, locos Sur



VICTOR FRANCISCO C. ORTEGA
First District, La Union

Lf j-—

CARLOS M. PADILLA
he District, Nueva Vizcaya

Bo RIA JOCELYN V. BERNOS: TEDDY BRAWNER BAGUILAT, JR.

Lone District, Abra Lone District, Ifuga:

“RNARDO M. VERGXRA
Lone District, Baguio City

ON
yoo
ANA CRISTINA SIQUIAN-GO.
Second District, Isabela

CATALINA G. LE!
ABS, Partylist

PATRICIO T. ANTONIO.
Agbiag, Partylist

JESUS “Boying” F. CELESTE

Third District, Panfpanga First District, Pangasinan

MA. RACHEL J. ARENAS plied nd

Third District, P: FirSt District, locos Norte

Byte. btn —

IMELDA R. MARCOS: RONALD V. SINGSON
Second District, Ilocos Norte First district, Hocos Sur

MANUEL S. AGYAO HENED) NA R. ABAD
Lone District, Kalinga Lone Djstrict, Batanes


|ALD M. COSALA!
District, Benguet

NAPOLEON S. DY
Third District, Isabela

ILA CARLO E, CUA
fone District, Quirino

ft hs Wea —
MA. GRPRGINA P. DE! SIA

Fourth istrict, Pangasinan

Ky. f
L. PRIMICIAS AGABAS
Sixth District, Pangasinan

2
EN
EDLY >
RODOLFO B. ALBANO
First District, Isabela

Sonthe nerasao

Fourth District Asab:

ATAOIL

Sed Pangasinan

Y
CARMEN KIMI §. COJANGCO
Fourth Distt, Pangasifian

ANTONIO M. DIAZ
Second District, Zambales

=

ee
FRANCISCO EMMANUEL R. ORTEGA
Abono, Partylist

MA. THERESA B. BONOAN-DAVID
Fourth District, Manila

(OMEO M. ACO
Second District, Antipolo City

A kMareae
LINABELLE RUTH R. VILLARICA
Fourth District, Bulacan

a

First District,Quezon City

VICENTE F. BELMONTE, JR.
Lone District, Higan City



10
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

A

Introduced By Representatives Maximo B. Dalog, Eric G. Singson Jr., Victor F, Ortega,
Randolph S. Ting, Carlos M. Padilla, Bemardo M. Vergara, Maria Jocelyn V. Bernos,
Teddy Brawner Baguilat, Jr., Eufranio “Franny” C. Eriguel, M.D., Jose R. Ping-ay,
Catalina G. Leonen-Pizarro, Ana Cristina Siquian-Go, Eleanor C, Bulut-Begtang, Patricio
T. Antonio, Aurelio D. Gonzales, Jr., Jesus “Boying” F. Celeste, Ma. Rachel J. Arenas,
Rodolfo C. Farinas, Imelda R. Marcos, Ronald V. Singson, Manuel S. Agyao, Henedina R.
Abad, Ronald M. Cosalan, Rodolfo B. Albano, Jr., Napoleon S. Dy, Georgidi B. Aggabao,
Dakila Carlo E. Cua, Juan C, Ponce Enrile, Jr., Leopoldo N. Bataoil, Ma. Georgina P. de
Venecia, Carmen Kimi S, Cojuangco, Marlyn L. Primicias Agabas, Antonio M. Diaz,
Francisco Emmanuel R. Ortega II, Robert Raymond M. Estrella, Ma. Theresa B.
Bonoan-David, Vincent P. Crisologo, Romeo M. Acop, Vicente F. Belmonte, Jr. and
Linabelle Ruth R. Villarica

AN ACT
CREATING THE NORTH LUZON DEVELOPMENT AUTHORITY, PROVIDING
FUNDS THEREFOR, AND FOR OTHER PURPOSES

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

SECTION 1. Title. - This Act shall be known as the “North Luzon Development
Authority Act of 2010.”

SEC. 2. Declaration of Policy. — 11 is hereby declared the policy of the State to foster

and accelerate the integrated and balanced growth of North Luzon (Region 1, Region IT and the
Cordillera Administrative Region) and link North Luzon with the East Asian region to stimulate
trade, investment and tourism, expand businesses: generate jobs; develop infrastructure; protect,
hamess and enhance environment and natural resources; and create export markets for local
produce, all with the end-in-view of reducing the incidence of poverty in the area, North
Luron’s strategic direction will be efficiently and effectively planned, supervised and
coordinated by a development authority as created therein, without prejudice to the authority of

the affected local government units and regions within the context of national plans and policies.


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Pursuant to this policy, the North Luzon Growth Quadrangle Area - Project
Management Office (NLGQA-PMO) established under Executive Order No. 114, series of
1999, is hereby constituted as an office to handle special strategic growth area in the country
as well as in the East Asian region subject to the direct supervision of the President of the
Philippines.

SEC. 3. Creation of the North Luzon Development Authority. — There is hereby
created the North Luzon Development Authority, hereinafter referred to as Authority, to be
headed by a Chairman appointed by the President. It shall be organized within one hundred
and twenty (120) days after the approval of this Act. The Authority shall be responsible in
close cooperation with the Local Government Units (LGUs) and line agencies for the overall
policy direction and coordination of the entire North Luzon Growth Area development
efforts, execute the powers and functions herein vested and conferred upon it in such a
manner as will, in its judgment, aid to the fullest possible extent in carrying out the purposes
and objectives set forth.

SEC. 4. Objectives of the Authority. - The Authority shalt have the fotlowing
objectives

a. To establish the legal framework and mechanisms for the integration and
coordination of the regions composing the North Luzon Growth Area;

b. To develop world competitive industries and commodities to establish and
facilitate North Luzon’s transborder economic relations with East Asian

economies;

¢. To transform the Regions in the North Luzon Growth Area into highly
developed and sustainable centers of agriculture, natural resources, commerce,
education, tourism, banking, investment and finance, ICT knowledge-based
industries and other appropriate industries of the region;

4. To engage local and foreign investments with the active participation of LGUs
in providing attractive business climate thereby creating mass employment for
the people of North Luzon.


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SEC. 5. Jurisdiction. — The Authority shall have jurisdiction encompassing the
provinces, cities and municipalities of Region 1, Region II and the Cordillera Administrative
Region (CAR).

SEC. 6. Principal Office. - The Authority shall maintain its principal office in San
Fernando La Union in Region I, and establish branch offices in Tuguegarao, Cagayan for
Region II and in Baguio City for CAR, for the proper conduct of its business.

SEC. 7. Powers and Functions of the Authority. - The Authority shall have the
following powers and functions:

a, Update the comprehensive and integrated North Luzon Growth Area development
plan to guide regional agencies and local development plans in the area;

b. Promote foreign investments, trade and tourism in North Luzon which would enhance
socio-economic development in the area with focus on, but not limited to, developing
transborder economic cooperation with countries in East Asia;

¢. Initiate and/or undertake, in coordination with concemed agencies and LGUs,
development and/or business projects in social and/or economic fields, whether in
agriculture, infrastructure, education, manufacturing, human resource, information
technology, natural resources, energy, public utilities, housing, land development and
other related fields;

d. Cause the preparation of project feasibility studies, master plans and other pre-
investment studies that will support and encourage North Luzon-wide economic and
social development;

e. Coordinate the related activities of concerned departments, Regional Development
Councils and specialized government devetopment agencies in North Luzon, and
ensure their active, but coordinated participation in the program;

£ Advocate to the constituents of North Luzon, their elected representatives in
Congress, and the National Government national policies that will foster the

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integrated and balanced development of North Luzon;

g. Provide the mechanism for extending the necessary planning, management and
technical assistance to prospective and existing investors in North Luzon;

h. Mobilize private sector participation as the primary actor for the development of
North Luzon;

i. Negotiate for sources of funds to include the Overseas Development Assistance on a
bilateral or multilateral basis in accordance with existing rules and regulations;

j. Receive and administer donations, contributions, grants, requests or gifts in cash or in
kind from foreign governments, international agencies, private entities and others,
including internal sources, for purposes that would contribute to the development of
North Luzon, subject to existing laws, rules and regulations;

k. Monitor, evaluate and formulate recommendations on the implementation of
development plans and programs in North Luzon;

1 Adopt rules, systems and procedures, and structures which the Authority may deem fit
to carry out its functions;

m. Perform such other functions and responsibilities as the President may direct.

SEC. 8. The North Luzon Development Council. ~ The policy-making body of the
Authority shall be the North Luzon Development Council, hereinafter referred to as Council,
which shall be composed of the Chairmen of the Regional Development Councils of Region
1, Region I and CAR ‘

The Council shalt be headed by a Chairman who shall be appointed by the President and
who shall continue to hold office at the discretion of the appointing authority. He shall be
vested with the rank, rights, privileges, disqualifications and prohibitions of a cabinet

member.


The Chairman and members of the Council shall be entitled to allowance and per diems
in accordance with the existing policies, rules and regulations on the matter.

SEC. 9. Powers, Functions and Duties of the Council, ~ The Council shall have the
following powers, functions and duties:

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To serve as the policy-making body of the Authority;

. To approve and promulgate guidelines, standards, rules and regulations in order to

encourage, and stimulate the growth and development of, infrastructure, tourism,
human resource, information technology, natural resources, education and trade
and commerce within the area of operations of the Authority;

To approve contracts such as leases, memoranda of agreements and other
arrangements to promote tourism and growth of business and industry in Region I,

Region II and CAR, upon recommendation of the Chairman of the Authority;

To approve a lean and efficient organizational and appropriate budget structures;

. To determine the rate of the allowances and per diems of the members of the

Council as it deems necessary, to be effective during the term of the succeeding
Council;

To approve the annual budget of the Authority and submit it to the Office of the

President for inclusion;
To recommend to the President of the Philippines the Chairman of the Authority;
To exercise such powers and perform such functions which are proper and

necessary to implement the objectives of the Authority to carry out the provisions
of this Act.

SEC. 10. Functions and Term of Office of the Chairman of the Authority — The
Chairman of the Authority shall have the following functions:

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To appoint, subject to civil service laws, rules and regulations, all subordinate
officers and employees of the Program Management Office of the Authority. The
Chairman is hereby authorized to engage the services of experts/consultants either
on full time or part-time basis as may be required in the performance of his
functions and duties as may be determined by him;

To execute the policies and measures approved by the Council and be responsible
for the efficient and effective day-to-day management of the operations of the
Authority;

. To receive local or foreign aid and donations and to source out funds for the

projects of the North Luzon Growth Area;

| To recommend the annual budget for the operations of the Authority for approval

of the Council;

To submit for consideration and approval of the Council such other policies and

measures as he may deem necessary to carry out the purposes and provisions of
this Act,

To prepare the staffing pattem and fix the number of subordinate officials and
employees of the Authority, subject to the guidelines and policies set by the
Council, and exercise the power to discipline subordinate officials and employees

under the provisions of law;

. To prepare an annual report on the accomplishments of the Authority at the close

of each year for submission to the Council, to Congress and to the President of the
Republic of the Philippines;

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‘To create the various offices necessary to achieve its desired goals and objectives
and shall organize and expand its working staff, fix the salaries and remuneration
including per diems benefits and allowances of the personnel subject to existing

requirements.


eC eavanrune

‘The Chairman of the Authority shalt have a four (4) year term of office, subject to re-
appointment.

SEC. 11. The Program Management Office. — The Program Management Office
(PMO) of the North Luzon Growth Commission created under Executive Order No. 114
dated June 28, 1999 and retained under Executive Order No. 239 dated September 24, 2003
shall be transformed into a PMO of NLDA to serve as the implementing arm as well as the
technical and administrative secretariat of the Authority. The PMO shall be headed by the
Chairman of the North Luzon Development Authority. The PMO shalll be strengthened and
expanded in proportion to the increase in its program coverage. Employee remuneration in
terms of salaries, allowances and other benefits shall also be increased in consultation with
and in accordance with existing DBM policies and guidelines. ‘The PMO employees shall
enjoy security of tenure and may be removed for cause in accordance with law.

SEC. 12. Advisory Committee. — An Advisory Committee composed of the different
District Representatives of Region I, Region Ht and CAR, and members of the Special
Committee on North Luzon Growth Quadrangle will be constituted. As such, they may
provide support and assistance for the implementation of programs and projects identified in
the North Luzon Development Plan,

SEC. 13. Technical Working Group. — A Technical Working Group composed of
representatives from key regional line agencies, Government-owned and Controlled
Corporations (GOCCs), LGUs, NGOs and the private sector shall provide additional
technical inputs to the NLDA.

SEC. 14, Role of the Implementing Bodies. - National line agencies in the region,
government-owned and controlled corporations, local government units, non-government
organizations and the private sector shall, as appropriate, serve as implementing entities of
projects and activities of the Authority. In case where a national line agency is designated as
Iead implementing entity, implementation shall be undertaken in close coordination with the
Authority through the PMO and concerned LGUs.

SEC. 15. Non-Profit Character of the North Luzon Development Authority. — The
Authority shalt be non-profit and shall devote the use of its funds for the furtherance and

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effective implementation of the policies provided for in this Act.

In consonance with this, the Authority is hereby declared exempt from the payment of all
taxes, duties, fees, imports, charges, costs and service fees in any court or administrative
proceedings in which it may be a party.

SEC. 16. Employee Benefits and Privileges. - The regular and professional personnel of
the Authority shall be permanent and career in status and they shall be entitled to the benefits
and privileges normally accorded to government employees. The Authority shall establish a
different pay scale for its consultants commensurate with prevailing rates in the government

and private sectors,

SEC. 17. Implementing Rules and Regulations. - The DTI, NEDA, and the Department
of Finance shall formulate the implementing rules and regulations of this Act within ninety
(90) days after its approval. Such rules and regulations shall take effect fifteen (15) days
after their publication in a newspaper of general circulation in the Philippines.

SEC. 18. Appropriations. ~The initial operational requirement of the Authority shall be
sourced from the existing budget of the NLGQA-PMO.

Appropriations for the succeeding operations of the Authority shall be incorporated in the
annual General Appropriations Act

SEC. 19. Transitory Provision. - To prevent disruption in the delivery of services
pending the full implementation of the North Luzon Development Authority’s organizational
structure and staffing pattern, the Authority shall absorb the existing plantilla positions and
incumbent staff of NLGQA-PMO who shall continue to perform their respective duties and
responsibilities and receive the corresponding salaries and benefits.

‘The unexpended appropriations of the NLGQA-PMO is hereby transferred to NLDA
including its existing records, properties, equipment, facilities and other assets.

SEC. 20. Construction. - The powers, authorities and functions of the Authority are
intended to establish decentralization of government functions and authority as well as

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efficient and effective working relationship between the Authority, the central government

and local government units.

SEC. 21. Separabitity Clause. — Yf any provisions or sections of this Act thereof are
declared unconstitutional, such declared of unconstitutionality shall not affect the validity of

the other provisions thereof.
SEC. 22. Repealing Clause. — All laws, acts, presidential decrees, executive orders,
proclamations and/or administrative regulations which are inconsistent with the provisions of

this Act are hereby amended, modified, superseded or repeated accordingly.

SEC. 23, Effectivity Clause. — This Act shall take effect aftey 15 days following its
complete publication in at least two (2) newspapers of general circulation.

Approved,