Republic of the Philippines 7
HOUSE OF REPRESENTATIVES ,.~¢P RE SE
Geer RE SE
Quezon City ae ~ N

Nineteenth Congress
First Regular Session

HOUSE BILL No. _ 81

Introduced by: Rep. RACHEL MARGUERITE “CUTIE” Del Mar

EXPLANATORY NOTE

WHEREAS, Article X, Section 13 of the 1987 Constitution states that
“local government units may group themselves, consolidate or coordinate
their efforts, services, and resources for purposes commonly beneficial to
them in accordance with law.”

WHEREAS, Article X, Section 14 of the 1987 Constitution states that
“the President shall provide for regional development councils or other
similar bodies composed of local government officials, regional heads of
departments and other offices, and representatives from non-government
organizations within the region for purposes of administrative
decentralization to strengthen the autonomy of units therein and to
accelerate the economic and social development of the units in the region.”

WHEREAS, consistent with these mandates, inter-local cooperation,
public-private sector collaboration, and other cooperative arrangements with
and among local government units, national government agencies and other
government offices, private and business sector, and people’s, non
government and civil society organizations are essential in order to
coordinate efforts, services, and resources for common beneficial purposes.

WHEREAS, founded on the need to promote and develop shared
assets and address trans-boundary issues and challenges attendant to a
growing and rapidly urbanizing metropolis, public and private sector leaders
and stakeholders of Cebu subscribe to the principles and premises of Primus
Inter Pares (First Among Equals), inter-local and city region coordination,
public-private sector partnership and collaboration, and citizen and civil
society engagement for metropolitan development.


WHEREAS, anchored on the big picture, holistic, and long-term
perspective of development, leaders end stakeholders emphasized the
importance of evidence-based and expertise-supported planning, policy and
decision-making.

WHEREAS, stakeholders in Metropolitan Cebu and surrounding areas
in the Province of Cebu envision and aspire for a “Wholesome, Advanced,
Vibrant, Equitable, and Sustainable (W.A.V.E.S.) Cebu in 2050 thru
alignment of government and private sector efforts with the development
strategy of competitiveness, liveability, mobility, and metropolitan
management and the implementation of a roadmap for sustainable urban
development.

WHEREAS, building and capitalizing on the gains of collaboration and
engagement and in the pursuit of the Mega Cebu 2050 Vision, there is a need
to establish the Mega Cebu Development Authority (MCDA) to initiate efforts,
provide services, and coordinate policies, plans, programs, and projects with
concerned local government units (LGUs), national government agencies
(NGAs}, government owned and controlled corporations (GOCCs}, private
sector and civil society, and constituent communities with regard to the
development and promotion of shared assets and resources, delivery of
common services and functions, all trans-boundary in nature, to achieve
integrated, inclusive, and sustained development.

PURSUANT THERETO, stakeholders of highly urbanized cities of Cebu,
Mandaue and Lapu-Lapu as well as the component cities of Danao, Talisay,
Naga and Carcar, and the municipalities of Consolacion, Liloan, Compostela,
Cordova, Minglanilla and San Fernando comprising the Metropolitan Cebu
area, and surrounding cities and town in the Province of Cebu, civil society
and private sector organizations aspire for a permanent, appropriate, and
responsive institutional platform that commits to and is reflective of the
principles and framework of inter-local and city-region collaboration, public-
private sector partnership, citizen and civil society engagement, and evidence-
based and expert-assisted planning and development.

The attached bill was originally filed by my father, the late Raul V, Del
Mar during the 16th, 17th and 18th Congresses and was approved by the
Committee on Government Enterprises & Privatization and was referred to
the Committee on Appropriations. Hence, refiling of this bill with the earnest
hope that approval of the same be given the highest priority it deserves.

Cpt

RACHEL (GUERITE “CUTIE” DEL MAR


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Nineteenth Congress
First Regular Session

8]

HOUSE BILL NO.

Introduced by: Rep. RACHEL MARGUERITE “CUTIE” DEL MAR

AN ACT
CREATING THE MEGA CEBU DEVELOPMENT AUTHORITY,
PRESCRIBING ITS FUNCTIONS AND DUTIES, AND PROVIDING
FUNDS THEREFOR

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 “Mega
Cebu Development Authority Act.”

SEC. 2. Declaration of Policies and Principles. ~ It is hereby the
declared policy of the State 1o promote and accelerate the sustainable
development and balanced growth of the Province of Cebu and the highly
urbanized cities of Cebu, Mandaue, and Lapu-Lapu, within the context of
national policies for economic, social, and environmental well-being.

It is likewise hereby declared to be the policy of the State to treat
Metropolitan Cebu and the Province of Cebu as a special development
and administrative area where certain policies, programs, and services
affecting or involving the Metropolitan Cebu area and the Province of
Cebu, on a metro-wide or multi-local government unit (LGU) level, are
more efficiently and effectively planned, supervised, implemented, and
coordinated by a development authority as created herein, without
prejudice to the autonomy of the affected LGUs.


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Pursuant to these national policies, the following aspirations and

principles are hereby declared:

(a) To recognize a more institutionalized approach to metropolitan
or multi-LGU integrated development planning that is expertise-
supported and evidence-based, participatory, responsible,
accountable, and necessary for all or part of its community;

(b) To foster cooperative relations between and among the
metropolitan area and surrounding cities and towns in order to
efficiently and effectively sustain efforts and meet the needs,
promote and develop shared assets and resources, and provide
services that transcend geopolitical municipal and city
boundaries without prejudice to the autonomy of the affected
LGUs;

(c) To ensure active participation by the private, business, and civil
society sectors in the governance, planning, implementation,
monitoring and evaluation of plans, policies, standards,
programs, projects, and services; and,

(d)To implement a national government-approved Metropolitan
Cebu Roadmap and other subsequent and related metro-wide or
multi-LGU roadmaps and plans that ensure long-term,
sustainable, and continuing directions, priorities, and programs
for and by the constituent local and national government
agencies and units, and private, business, and civil society
sectors.

SEC. 3. Definition of Terms. ~ As used in this Act:

(a) Business Sector refers to for-profit and commercial enterprises
or businesses and business associations and coalitions; cross-
industry, muiti-issue groups; cross-industry, issue-specific
initiatives; industry-focused initiative; including corporate
philanthropic foundations.

(b) Private Sector refers to entities of the economy that are owned by
private citizens and not by the State, including those enterprises

created either for profit or non-profit and households


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(c) Metropolitan Cebu Area or Metro Cebu refers to the highly
urbanized cities of Cebu, Mandaue, and Lapu-Lapu, the cities of
Danao, Talisay, Naga, and Carcar, and the municipalities of
Consolacion, Liloan, Compostela, Cordova, Minglanilla, and San
Fernando, all in the Province of Cebu.

(d) Mega Cebu refers to the platform for inter-local cooperation,
public-private sector partnership, and local-regional-national-
integration promoting the “big picture perspective,” ie., long
term, multi-LGU, metro-wide, and advancing collaborative
planning and action on shared assets and common trans-
boundary concerns towards a sustainable, smart, and inclusive
Cebu. It is anchored on and considers the island-wide or larger
provincial area or whole of Cebu, and regional area or Visayas
context, while starting out its on-ground engagement and
intervention at the Metropolitan Cebu level. Conceptually, thus,
Mega Cebu is larger than Metro Cebu and considers the
population of the entire ‘province’ or ‘islands’ of Cebu in the year
2050, which is projected to reach more than Ten (10) Million,
the technical definition of a mega population being Ten (10)
million or more.

(€) Metropolitan Cebu Roadmap refers to the “Roadmap Study for

Sustainable Urban Development in Metro Cebu” that was
commissioned and subsequently adopted by the Metro Cebu
Development and Coordinating Board (MCDCB), was funded by
the Government of Japan, and completed by a team from the
Japan International Cooperation Agency (JICA).

SEC. 4. Creation of the Mega Cebu Development Authority. -
‘There is hereby created a special body to be known as the Mega Cebu
Development Authority, hereinafter referred to as “MCDA” or “Authority”,
which shall be organized within thirty (30) days after the approval of this
Act, to coordinate and promote socio-economic growth and sustainable

development within Metro Cebu and the Province of Cebu.



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The MCDA shall execute the powers and functions herein vested
which shall, however, in no way diminish the autonomy of the LGUs in
the Metropolitan Cebu area and the Province of Cebu concerning purely
local matters within the framework and subject to the mandate and
limitations of the Philippine Constitution, pertinent provisions of the
Local Government Code, and Section 5 hereof.

SEC. 5. Constitution and Jurisdiction of the Mega Cebu
Development Authority. - For the purposes of this Act, the MCDA shall
comprise the core metropolitan area embracing the highly urbanized
cities of Cebu, Mandaue, and Lapu-Lapu, the cities of Danao, Talisay,
Naga and Carcar, as well as the municipalities of Consolacion, Liloan,
Compostela, Cordova, Minglanilla, and San Fernando, and such other
cities and municipalities as shall be included from time to time under
this Section or conferred by this Act, determined in accordance with the
procedures and requirements to be outlined by the Mega Cebu
Development Board (MCDB)

SEC. 6. Functions of the Mega Cebu Development Authority. -
Subject to the approval of the LGUs concerned, the Authority shall
primarily exercise the following functions and services:

(a) Formulate, coordinate, regulate and monitor the short, medium,
and long-term plans, policies, and programs for the sustainable
development and integration of the Metropolitan Cebu area and
the Province of Cebu, including investment programs for the
delivery of multi-LGU or Metropolitan Cebu and the Province of
Cebu services, land use, spatial, and physical development
using strong, coherent governing values and shared vision, with
focus on integrated systems for urban development;

(b) Render services that have multi-LGU or metropolitan wide
coverage and impact, transcending local geopolitical boundaries
or entailing substantial expenditures including, but not limited
to: integrated and infrastructure development and planning;

transport and traffic management; solid waste disposal and


1 management; water, septage, sewerage and storm water
2 management; and disaster risk reduction and management;

3 {c) Ensure that plans, policies, programs and services are pursued
4 for the purpose of realizing the Mega Cebu 2050 Vision of a
5 Wholesome, Advanced, Vibrant, Equitable, and Sustainable
6 (W.A.V.E.S.) Cebu, executing the Mega Cebu development
7 strategy of competitiveness, livability, mobility, and metropolitan
8 management and implementing the Metropolitan Cebu
9 Roadmap, which are hereby adopted, and other subsequent and
10 related roadmaps for Metro Cebu and the Province of Cebu;

u (d) Ensure continuing research, evaluation, and monitoring to
2 enhance plans, policies, programs, services, and efforts to
B anticipate or respond to the dynamic and changing realities and
14 needs of metropolitan development; and

15 (e) Perform other related functions required to achieve the Mega
16 Cebu 2050 Vision and the objectives of the MCDA, including the
v7 undertaking of delivery of services to the LGUs, when deemed
18 necessary and subject to prior coordination and consent of the
19 LGU concerned.

20 SEC. 7. Scope of Services of the Mega Cebu Development
21. Authority. ~ In coordination with appropriate government units and

22 agencies and relevant private sector organizations, the scope of the
23 services of the MCDA shall include:

24 (a) Spatial and integrated planning and infrastructure planning
35 and development, which includes the formulation, adoption,
26 and implementation of plans, policies, programs, projects,
ry standards, rules, and regulations to rationalize and optimize
28 land use; conserve and protect natural resources, provide
29 direction to urban growth and expansion within the context of
30 smart, connected, compact and sustainable growth; and the
31 provision of necessary services;

32 (b) Transport and traffic management, which includes the
33 formulation, coordination, and monitoring of _ policies,

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(c) Solid waste management, wi

standards, plans, programs and projects, including its
implementation and its integration with land use,
rationalization of the existing transport _ operations,
infrastructure requirements, and use of thoroughfares;
promotion of safe and convenient movement of persons and
goods; provision for and maintenance of mass transport system,
road infrastructure, and institution of a people-centered
network of mobility, including pedestrianization and non-
motorized forms of transport, as well as a system to regulate
road users; and the administration and implementation of
traffic enforcement operations, traffic engineering services, and
traffic education programs, including the institution of a single
ticketing system;

ich includes the formulation and
implementation of policies, standards, plans, programs, and
projects for proper and sanitary waste disposal; the
establishment and operation of sanitary landfill and related
facilities; the establishment and operation of alternative waste
management facilities; and the implementation of appropriate
programs, projects, and services intended to manage, dispose,

reduce, reuse, and recycle solid waste;

(d) Water, septage and sewerage, and storm water management,

which includes the formulation and implementation of policies,
standards, plans, programs, and projects for water supply and
integrated storm water

water resources management;

management, drainage and flood control; and septage and

sewerage management system; and

{e) Disaster risk reduction and management, which includes the

formulation and implementation of plans, programs, projects,
policies, standards, and procedures to achieve public safety,
especially preparedness for preventive or rescue operations

during times of calamities and disasters; management of


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information; coordination and mobilization of resources; and
recovery, rehabilitation, and relief operations.

SEC. 8. Composition of the Mega Cebu Development Board
(MCDB). - The governing and policy setting powers of the MCDA shall be
vested in and exercised by the Mega Cebu Development Board,
hereinafter referred to as MCDB or Board, which shall be composed of
fifteen (15) ex-officio members and six (6) regular members, as follows:

(a) Governor of the Province of Cebu, ex-officio;

(b} Mayors of the seven (7) cities of Metro Cebu, ex-officio;

(c) Mayors of the six (6) municipalities of Metro Cebu, ex-officio;

(4) President of the League of Municipalities of Cebu, ex-officio;

(e) Five (5) regular members representing the private sector to be

appointed by majority vote of the ex-officio Board Members: one
(1) upon the written recommendation of the Metro Cebu
Development and Coordinating Board (MCDCB); one (1) upon
the written recommendation of the Cebu Chamber of
Commerce and Industry (CCCI); one (1) upon the written
recommendation of the Mandaue Chamber of Commerce and
Industry (MCCI); one (1) upon the written recommendation of
the Cebu Uniting for Sustainable Water Foundation, Inc
(CUSW); and one (1) upon the written recommendation of
Pagtambayayong-A Foundation for Mutual Aid, Inc. (PF);

The foregoing private sector organizations may in the future
recommend in writing the appointment of another person to replace their

earlier recommendee as member of the Board.

In the event any of the foregoing private sector organizations
ceases to function and operate, or voluntarily relinquishes its authority to
recommend in writing its representative for appointment as member of
the Board, the Board by majority vote of all its members shall be
authorized to appoint another private sector organization to take its place
to recommend in writing the appointment of its representative (in) to the
Board.


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(9) The General Manager of the Authority, shall be the sixth (6th)
regular member of the Board to be appointed by majority vote
of the ex-officio members and the five (5) regular members
above-mentioned in the immediately preceding sub-section
letter (e). The General Manager shall serve as the Chief
Operating Officer of the MCDA.

There shall be one (i) Chairman, one (1) Vice Chairman
representing the government sector and one (1) Vice Chairman
representing the private sector. The Chairman and the Vice Chairman
representing the government sector shall be elected by majority vote of
the ex-officio members of the Board from among themselves. The Vice
Chairman representing the private sector shall be elected by the five (5)
regular members of the Board, above-mentioned in sub-section letter (e),
from among themselves.

All regular members of the MCDB including the General Manager
must have been residents of the cities of Cebu or Province of Cebu for at
least three (3) years preceding their appointments.

SEC. 9. Term of Office of the MCDB Members. - The ex-officio
members shall serve until the end of their terms of office, unless sooner
removed for cause by majority vote of the members of the Board. Their
successors in office shall serve only the unexpired portion of their terms.

The five (5) regular members above-mentioned in sub-section letter
(e} of Section 8 shall serve also until the end of the terms of office of the
ex-officio members, unless sooner removed for cause by majority vote of
the members of the Board or until their replacements recommended in
writing by their respective organizations are approve(d) by majority vote
of the members of the Board.

‘The General Manager of the Authority shall be appointed by the

Board and shall continue to serve until he is replaced by the majority
vote of the members of the Board.


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SEC. 10. Board Meetings. - Eleven (11) members of the Board
shall constitute a quorum for the conduct of regular and special board
meetings. Thé Board shall hold regular meetings once every two (2)
months at a place and time specified. Special meetings shall be held as
may be decided by the majority vote of the members of the Board.

All members of the Board, ex-officio and regular, shall have equal
voting rights in all deliberations of the board. Provided, That the approval
and implementation of plans, projects and activities affecting or involving
a particular LGU must have the affirmative vote of the Mayor of the

concerned LGU.

SEC. 11. Functions of the Mega Cebu Development Board. —
Subject to the approval of the LGUs concerned, the MCDB shail perform
the following functions and powers:

(a) Adopt and approve rules and regulations to govern the
conduct of business of the Board;

(b} Approve the multi-LGU or metropolitan-wide short, medium,
and long-term development plans, policies, and programs, and
such projects developed and packaged by its Research,
Program, and Organizational Development- Technical,
Operations, and Planning Office (RPOD-TOPO), the various
committees, and respective project management offices;

(c) Promulgate policies and standards for metropolitan-wide
application governing the delivery of services, prescription and
collection of service and regulatory fees, and the imposition
and collection of fines and penalties, including the assessment
and collection of contributions, fees, and charges for the
operation of the MCDA or use of its facilities or services, as
may be deemed necessary and proper;

(4) Approve the organizational structure of the Authority and, as
endorsed by the General Manager, confirm or define the duties
and responsibilities of all officers and employees, including the

appointment of key officials of the Authority, and fix the

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(e)

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compensation and benefits of officers and personnel, including
the granting of incentives;

Create a Conflict Management Committee (CMC) to address
any controversy primarily between and among members from
the LGUs, national government agencies, private and business
sectors, and civil society. The CMC shall enjoin parties to
settle the dispute through dialogue. If a settlement is not
reached, any unresolved controversy shall be settled thru
mediation and arbitration by the CMC. Any of the parties may
appeal the CMC resolution to the Board, whose decision shall
be final and executory.

Appoint or remove the General Manager. Appoint or remove
the Assistant General Managers, or the heads of the different
offices upon the recommendation of the General Manager in
accordance with law;

Incorporate and endorse the plans, policies, programs, and
projects formulated by LGUs and other public sector agencies,
including those areas and services which were not included in
the Metropolitan Cebu Roadmap, after proper consultation
and coordination;

Submit to the National Economic Development Authority
(NEDA) Board its plans, programs, projects, and activities to
enable adoption, endorsement, approval, integration, or
progressive roll out of integrated and system-wide plans,
programs, projects, and spatial urban and rural design
decisions;

Form, establish, organize, and maintain offices or service units
to provide multi-LGU or metropolitan wide services, in
accordance with relevant Philippine laws;

Enter into contract and own properties; receive funding,
payments, grants, contributions, and donations; carry out its

duties and functions as provided for in this Act;

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(k)

1)

Establish a conflict management committee to address
conflicts to which all entities or individuals will resort to, at
the first instance;

Perform any and all related acts to carry out its mandate and
perform its objectives, including the undertaking of delivery of
services to the LGU concerned;

(m) Adopt, alter, and use a corporate seal; and,

(n)

Carry out the purposes and provisions of this Act.

SEC. 12. Creation of the Office of the MCDA General Manager.
~ There is hereby created the Office of the MCDA General Manager, to be

headed by the General Manager and vested with executive powers to

manage the affairs and further the purposes of the MCDA.
SEC. 13. Functions of the General Manager. — The General
Manager of the MCDA shall have the following functions:

a)

(o)

(a)

Formulate, prescribe, amend, and endorse rules and
regulations to govern the conduct of the Office of the General
Manager;

Endorse to the MCDB for approval, the creation and
organization of the Institutional Development Office (IDO),
Public Service Offices (PSOs), and other offices as may be
necessary to fulfil the mandate of the Authority;

Identify, select, appoint, suspend, remove, or discipline the
officers and personnel below the positions of Assistant General
Managers and the managers or heads of offices or services,
subject to approval by the MCDB;

Endorse for approval of the Board, the compensation, benefits,
and incentives of key officials and other staff of the MCDA who
will perform the following: finance and administration, to
include human resources management, audit, legal, risk
management, and information technology (IT); research and
knowledge management, to include monitoring and evaluation,

education, communications, and stakeholder relations;

cel


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planning, development, and technical support, to include
project development; and operations and services, to include
project management and service delivery;

(e) Endorse to the MCDB the multi-LGU or metropolitan-wide
short, medium, and long-term development plans and
programs which includes the formulation and coordination of
related activities in Metropolitan Cebu;

() Endorse the annual and supplemental budgets of the
Authority to the Board; and

(@) Perform such other acts and assume such other functions as

may be necessary to carry out the provisions of this Act.

SEC. 14. Creation of Institutional Development Office. - There
shall be created an Institutional Development Office (IDO) in the Office of
the General Manager to provide support in the operations and
implementation of the internal programs and requirements of the MCDA.
The IDO shall oversee the various components, operations, and processes
of MCDA such as: finance and administration, to include human
resources management, audit, legal, risk management, and information
technology (IT); research and knowledge management, to include
monitoring and evaluation, education, communications, and stakeholder
relations; planning, development, and technical support, to include
project development; and operations and services, to include project

management and service delivery.

The head of the IDO, as Assistant General Manager, shall report
directly to the General Manager.

SEC. 15. Creation of Public Service Offices. - There shall be
created a Public Service Office (PSO) for each of the five (5) initial focal
areas of MCDA, as follows: Integrated Development and Spatial Planning
(IDSP); Transport and Traffic Management (TTM), Solid Waste
Management (SWM); Water Supply Management, including septage and
sewerage, and storm water management, (WSM); and Disaster Risk

Reduction and Management (DRRM).

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Each PSO shall be headed by an Assistant General Manager, who
shall report directly to the General Manager. National government
agencies (NGAs), GOCCs, LGUs and other organizations mandated to
provide services in these focal areas shall be invited to coordinate their

programs and projects with the appropriate PSO.

SEC. 16. Creation of the Research, Program, and
Organizational Development. Technical, Operations, and Planning
Office. — There shall be created a Research, Program and Organizational
Development - Technical, Operations, and Planning Office (RPOD-TOPO)
which is necessary to deliver the MCDA’s mandate, provide support and
management of its operations. The RPOD-TOPO shall serve as the
coordinating and operations office and process facilitator for the
Authority, providing finance and administration, research, knowledge
management and planning expertise and services; technical support,
operations, service delivery and project management as well as guidance
to the Board, the General Manager, and other offices or services; facilitate
the organization, integration, and complementation of the Authority’s
various functions, structures, plans, programs, projects and services;
and provide secretariat support to the MCDB, other offices and services,
and to keep a record and have custody of the proceedings of all sessions
of the MCDB or meetings of the PSOs.

The RPOD-TOPO shall be headed by an Assistant General
Manager, supported by appropriate supervisory and other officers of the
MCDA. The Assistant General Manager (AGM) for the RPOD-TOPO,
appointed on the basis of defined competence and qualities, shall:

{a) Assist in the administration of the MCDA and supervision of
subordinate personnel;

(b) Assist in the supervision of the operation of the various
committees and offices of the MCDA;

(c) Assist in the preparation and review of plans and programs of
the MCDA for approval by the Board; and

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(a) Perform such other duties and functions as may be lawfully

delegated or assigned from time to time.

‘There shall be appointed managers for finance and administration;
research and knowledge management; planning, development, and
technical support; and operations and service delivery who shall be
chosen based on academic qualifications, competence, and experience.

These departments shall be staffed by appropriately qualified
personnel with relevant academic backgrounds and work experiences
consistent with the purpose, functions, requirements, and scope of the
Authority.

All employees of the MCDA shall be subject to periodic monitoring
and evaluation.

SEC. 17. Institutional Linkages. - The MCDA shall establish
institutional linkages and relations with appropriate government agencies
and units and the private sector at the local, regional, national, and
international levels concerning matters of import and relevance to Mega
Cebu or the Metropolitan Cebu area.

For this purpose and guided by rules and regulations, the MCDA
shall carry out its functions in consultation and close coordination with
the LGUs, government agencies, the private sector, and civil society
organizations. To facilitate coordination and alignment, LGUs, NGAs,
GOCCs and other relevant organizations shall submit their policies, plans
and programs, and projects, particularly relating to the initial five (5)
focal areas outlined in Section 7 hereof, that may affect or have an

impact on the Mega Cebu or the Metropolitan Cebu area.

The MCDA shall submit its development plans and investment
programs to the National Economic and Development Authority (NEDA)
for integration into the Medium-Term Philippine Development Plan
(MTPDP) and public investment program.

In the implementation of MCDA’s plans and programs utilizing
local, national, and other funds, which shall be undertaken either by the

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local government unit, national government agency, or other public and
private sector organizations responsible for the delivery of such services,
the MCDA may enter into contracts, memoranda of agreement and other
cooperative arrangements with these entities for the delivery of the

required services.

The MCDA shall also coordinate and interface with foreign
assistance and other agencies for the purpose of obtaining financing and
technical support, and securing contributions, grants and donations
from various sources to support its operations or undertake its programs

and projects.

SEC. 18. Appropriations and Financing. ~ For the organizational
and operating expenses of the Authority, an initial fund of One Billion
Pesos (P1,000,000,000.00) shall be appropriated by the National
Government. Thereafter, the National Government shall allocate in the
annual General Appropriations Act the funds needed by the MCDA for
personnel, capital expenditures, maintenance and other operating
expenses and for the continued implementation of this Act.

‘The operations of the MCDA shall likewise be supported through
financial contributions and technical assistance from member LGUs,
NGAs, and GOCCs and the private sector, and other local and
international organizations in the form of grants, donations,
contributions, payments, penalties, fees and charges.

The MCDA is likewise empowered to levy fines, and impose fees
and charges for various services rendered.

The MCDB shall undertake continuing negotiations among the
member LGUs and GOCCs to commit annual financial contributions for
the operations of the MCDA.

SEC. 19. Use of Income. - To carry out the purposes of this Act,
the MCDA is hereby authorized, in addition to its allocation from the
annual General Appropriations Act, revenues generated from various
ns from LGUs, to retain and

services rendered, and annual contribut
utilize its income: Provided, That nothing herein shall be deemed to

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exempt the MCDA to the auditing requirements, standards, and
procedures of existing laws,

SEC. 20. Good Governance Clause. - The MCDA adheres to the
principles of good governance that ensures commitment to values and
ethical conduct of its business; transparency in transactions; an effective
audit system; statutory and legal compliance; adequate disclosures; and
effective decision-making to achieve its objectives.

SEC. 21. Separability Clause. ~ If any provision or part hereof is
held invalid or unconstitutional, the other provisions not otherwise
affected shall remain in full force and effect.

SEC. 22. Effectivity Clause. - This Act shall take effect fifteen
(15) days following completion of its publication in at least one (1)
newspaper of general circulation.

Approved,

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