Philippine Rise Development Authority (Prda) Act

Selli ve office of tir strung TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 AUG -7 P2 52 First Regular Session ] SENATE RECEIVED BY: S.B. No. 1103 Introduced by SEN. WIN GATCHALIAN AN ACT CREATING THE PHILIPPINE RISE DEVELOPMENT AUTHORITY, DEFINING ITS POWERS AND FUNCTIONS, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES EXPLANATORY NOTE One of the greatest blessings bestowed upon the Filipino people is the abundance of ecological diversity and natural wealth found throughout the islands and seas of the Philippines. Unfortunately, despite the best efforts of many in advocating for the preservation and responsible development of these rich natural resources, our country's natural wealth has continually declined due to unjust exploitation and, at times, pure negligence. Since the beginning, the Philippine scientific community and the Government of the Republic of the Philippines have worked hand-in-hand to establish and solidify our claim to sovereign rights over the Philippine Rise and the waters surrounding it. After 11 long years of scientific research and international legal advocacy, the United Nations Commission on the Limits of the Continental Shelf finally approved the claim of the Philippines in 2012 and recognized our sovereign rights over 13 million hectares of the Philippine Rise region as part of the Philippine Extended Continental Shelf. With 11.4 million hectares of the Rise already falling within our Exclusive Economic Zone, this brought the entire 24.4 million hectares of the Rise under our jurisdiction.

Truly, the Philippines has been made richer by its successful claim over the Philippine Rise. The reefscapes and varieties of fish found in the shallower Benham Bank, and throughout the entire Philippine Rise region, are important for their contributions to marine biodiversity. This is significant not only for ecological purposes, but also for bioprospecting. Meanwhile, the large volume of various tuna species found in the region showcases a huge potential for commercial fishing as well. Last, but certainly not least, the seabed of the Philippine Rise holds a potentially massive treasure trove of rare and precious mineral resources, the most impactful of which may be methane gas hydrates which are composed of natural gas encased in ice and usually found deep under the ocean in the seabed. They are highly touted for their potential as the so-called "fuel of tomorrow". This measure takes a responsible, proactive, and forward-looking approach to developing the natural resources of the Philippine Rise by establishing the institutional mechanism needed to facilitate a coordinated and integrated approach to optimizing the full potential of the Philippine Rise, while conserving its ecology and resources for the benefit of future generations. This institutional mechanism comes in the form of the Philippine Rise Development Authority (PRDA) - a coordinating, policymaking, and regulatory body which will serve as a sort of "one-stop-shop" for everything concerning the Philippine Rise. The 15-member Board of the PRDA will be chaired by the President of the Philippines and will include representatives from pertinent cabinet departments and technical agencies. The numerous areas of interest to be covered by the PRDA - policy formulation and advocacy, coordination and support for scientific research and exploration, environmental protection, and investments promotions - backs up the necessity of its creation. This is a forward-looking piece of legislation that immediately creates this institutional mechanism, now while the Philippine Rise remains pristine and undeveloped, so that we will be prepared to meet threats of ecological degradation and irresponsible development when they present themselves in later years. Similarly, this measure intends to anticipate and address foreign acts threatening the sovereign

- - rights of the Philippines over its territory and natural resources, as in the case of reported foreign incursions in the Philippine Rise in 2022.1 In view of the foregoing, the immediate passage of this bill is earnestly sought. WIN GATCHALIAN ' Philippine Daily Inquirer. "DA to protest incursions in Philippine Rise, says Palace." https://qlobalnation.inguirer.net/203038/dfa-to-protest-incursions-in-philippine-rise-says- palace#ixzz7W3dJVMXE

Scinatt Olive of the Seclarp TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25. 14G -7 P2.52 First Regular Session RECEIVED BY: SENATE S. B. No. 1103 Introduced by SEN. WIN GATCHALIAN AN ACT CREATING THE PHILIPPINE RISE DEVELOPMENT AUTHORITY, DEFINING ITS POWERS AND FUNCTIONS, 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. Short Title. - This Act shall be known as the "Philippine Rise

Development Authority Act" or "PRDA Act".

SEC. 2. Declaration of Policy. - It is hereby declared a policy of the State

to tap and accelerate the sound management and sustainable development of the Philippine Rise, particularly on its potential to be a rich source of alternative energy and marine resources, and as a possible tourism destination. Towards this end, an effective institutional mechanism with due regard to the precautionary principle, as well as ecosystem-based and science-based approaches, shall be established to address the need for a coordinated and integrated approach in the formulation and implementation of various development plans, programs, and projects that will optimize the full potential of the Philippine Rise while conserving its ecology and resources for the benefit of future generations.

SEC. 3. Creation of the Philippine Rise Development Authority. - There

2 is hereby created a body corporate to be known as the Philippine Rise 3 Development Authority (PRDA), which shall promote, coordinate and facilitate 4 the active and extensive participation of all sectors to effect the exploration, 5 study, and development, as well as the conservation and protection, of the 6 natural resources within the Philippine Rise. The PRDA shall also be the lead agency in conducting scientific research 8 and exploration and shall secure the rights of the State over the area. 9 Explorations must be done in partnership with the Department of Environment 10 and Natural Resources - Biodiversity Management Bureau (DENR-BMB), Department of Agriculture - Bureau of Fisheries and Aquatic Resources (DA- BFAR), and academic institutions with the necessary competence to conduct rigorous and comprehensive studies in the Philippine Rise area. The PRDA shall be organized within one hundred eighty (180) days after the approval of this Act. It shall have a term of fifty (50) years from its organization and may be renewed for another fifty (50) years, unless otherwise provided by law. It shall be an attached agency to the Office of the President. It shall establish its first office in the Aurora Pacific Economic and Freeport Zone and may put up such other offices as may be necessary to achieve the objectives of this Act.

SEC. 4. Coverage. - The PRDA shall cover all natural resources located

in the undersea feature known as the Philippine Rise Region, within the Philippine exclusive economic zone and continental shelf, as well as the outer limits of the extended continental shelf pursuant to the recommendations of the Commission on the Limits of the Continental Shelf (CLCS) issued on April 12, 2012, and bounded by the coordinates 12°30'N to 20°30'N latitude and 122°30'E to 129º30'E longitude, excluding the fifteen-kilometer municipal waters of adjacent coastal areas.

SEC. 5. Powers and Functions of the Philippine Rise Development

2 Authority. - In the exercise of its mandate, the Authority shall have the following powers and functions: (a) Formulate and advocate national policies that will foster the integrated, balanced, and sustainable development framework for the Philippine Rise that is consistent with the development initiatives of the national government, as far as practicable; (b) Develop, plan, program, prioritize, integrate, and implement, 9 whenever allowed and authorized by applicable laws, programs, projects, and activities at the Philippine Rise; (c) Recommend to or coordinate with the proper government agencies programs, projects, and activities soliciting or requiring their direct or indirect assistance including, but not limited to, technical support and physical assistance for the prioritization of the region's environmental, agricultural, fisheries, marine and non-marine biodiversity, energy, industrial, commercial, infrastructure, tourism, technological, and scientific concerns; (d) Review Philippine Rise programs, projects, and activities by the national government and donor agencies, subject to existing laws, rules, and regulations, for the purpose of ensuring consistency with national policies and plans, as well as monitor, evaluate, and formulate recommendations in the implementation of such programs, projects, and activities; (e) Establish a complete, comprehensive, and integrated database on the Philippine Rise prior to the conduct of any exploration activities, whenever possible. For this purpose, the PRDA may coordinate with academic institutions concerned to conduct comprehensive survey and assessment and generate resource map of the Philippine Rise which shall be the underlying foundation for all policy and management decisions; (f) Create an area research plan and coordinate research initiatives and exploration in the Philippine Rise region, establish a repository of research data, and provide incentives for such research and exploration activities;

(g) Promote the protection and conservation of important marine 2 biodiversity and fishery resources, including marine genetic resources, which are important for ensuring climate change resiliency and food security; (h) Promote and facilitate public and private investments that would 5 enhance the integrated, balanced, and sustainable development of the Philippine Rise, and explore other sources of financing for priority Philippine Rise related programs, projects, and activities, in close coordination with 8 agencies primarily mandated to undertake such functions; (i) Receive and administer donations, contributions, grants, bequests, or gifts, in cash or in kind, from foreign governments, international agencies, private entities, and other sources, including Official Development Assistance, subject to existing laws, rules, and regulations; (j) Sue and be sued, and as approved by the Board, enter into contracts, acquire, purchase, hold, lease, transfer, or dispose of properties of any kind or nature to carry out the purposes of this Act; (k) Issue clearances, including the necessary rules and standards, for all proposais, plans, programs, projects, or any activity involving the Philippine Rise Region including, but not limited to, marine science research, exploration, 19 and exploitation, whether conducted by Filipino or foreign nationals, in accordance with Section 7 of this Act; (1) Request the President of the Philippines and other government agencies for any needed assistance in the enforcement of all applicable laws, rules, and regulations, the exploration and scientific study of the entire region, the sustainable exploitation of its natural bounties, and the protection of national security and national interests, including law enforcement against illegal intruders and poachers; and (m) Discharge such other functions as may be deemed necessary to carry out its mandate under this Act or as may be provided by law. The PRDA, through its Administrator, shall submit to the President and both Houses of Congress annual reports on its accomplishments and activities.

SEC. 6. Board of Directors. - The power of the PRDA shall be vested in

and exercised by a Board of Directors, hereinafter referred to as the Board,

which shall manage and supervise the overall directions and thrusts. It shall be composed of the following: (a) The President of the Philippines who shall act as the Chairperson of the Board; (b) The Administrator of the PRDA who shall act as the Vice-Chairperson of the Board; (c) Thirteen (13) other members composed of the following: (1) The Department of Economy, Planning, and Development (DEPDev) Secretary or the duly authorized representative; (2) The Department of Environment and Natural Resources (DENR) Secretary or the duly authorized representative; (3) The Department of Energy (DOE) Secretary or the duly authorized representative; (4) The Department of Agriculture (DA) Secretary or the duly authorized representative; (5) The Department of Science and Technology (DOST) Secretary or the duly authorized representative; (6) The Department of Finance (DOF) Secretary or the duly authorized representative; (7) The Department of Budget and Management (DBM) Secretary or the duly authorized representative; (8) The Department of National Defense (DND) Secretary or the duly authorized representative; (9) The Department of Foreign Affairs (DFA) Secretary or the duly authorized representative; (10) The Department of Transportation (DOTr) Secretary or the duly authorized representative; (11) The National Coast Watch Council (NCWC) Executive Director or the duly authorized representative; (12) The National Security Council (NSC) National Security Adviser and Director General or the duly authorized representative; and

(13) The University of the Philippines (UP) President or the duly authorized representative. The members of the Board shall receive a per diem at a rate to be determined by the Governance Commission for Government Owned or 5 Controlled Corporations (GCG), in accordance with existing rules and regulations: Provided, That the per diem collected per month does not exceed the equivalent per diem of four (4) meetings: Provided, further, That the amount of per diem for every Board meeting may be increased by the President 9 or GCG but such amount shall not be increased within two (2) years from its last increase. The Board shall have the following functions: (a) Provide direction and guidance for the PRDA's work and thrusts for the Philippine Rise; (b) Ensure that the goals and policies of the PRDA are consistent with the overall national development goals and objectives, and that the programs of the PRDA are consistent with regional and local development plans, programs, and projects, and vice versa, for purposes of harmonization; (c) Explore sources for financing of priority Philippine Rise plans, programs, projects, and activities; (d) Create committees or task forces as may be deemed necessary in the accomplishment of its functions; (e) Determine schedules, establish voting procedures, criteria for the constitution of a quorum, and other rules and regulations in the conduct of Board meetings; (f) Approve contracts and enter into agreements to carry out the purposes of this Act, except when authority to sign such contracts and/or agreements is vested in a specific government officer or entity; and (g) Perform such other functions as may be necessary to carry out the purposes of this Act.

SEC. 7. Issuance of Clearances by the PRDA. - No proposals, plans,

programs, projects, or activities involving the Philippine Rise Region, including

I but not limited to marine science research, exploration, and exploitation, 2 whether conducted by Filipino and foreign nationals, shall be carried out, nor shall any license or permit be issued in relation to the same, without the clearance of the PRDA The PRDA shall issue the necessary clearance for all approved proposals, 6 plans, programs, projects, or activities within twenty (20) calendar days from 7 submission thereof. In cases where the PRDA fails to act within the same 20- 8 day period, the submissions shall be deemed approved. Any decision of 9 disapproval by the PRDA may be appealed within fifteen (15) calendar days from receipt thereof to the Office of the President whose decision shall be final. The PRDA shall issue rules and standards concerning the clearance required under this section: Provided, That, such clearance must be secured before all other permits and/or licenses required under existing and applicable laws shall be issued: Provided, further, That the grant or denial of an application for clearance shall be made on the basis of this Act, other laws and regulations applicable to the Philippine Rise, and the integrated, balanced, and sustainable development framework formulated under Sec. 5(a) of this Act.

SEC. 8. Accrual of Revenues and Receipts to the General Fund. - All

revenues and receipts from any and all sources including the government share representing royalties, rentals, production share on service contracts, and similar payments on the development, exploration, and exploitation of energy resources within the Philippine Rise shall be remitted to the National Treasury and shall accrue to the General Fund.

SEC. 9. Advisory Panel of Technical Experts. - The PRDA shall constitute

an advisory panel of technical experts consisting of practitioners in disciplines that are related to oil and gas extraction and processing, hydrography, marine ecology, surveying, hydrology, including, but not limited to, oceanography. The Advisory Panel shall perform research and development, and provide technical advice to the PRDA in maritime science, technologies, and best practices for the extraction and development of oil and gas fields.

The PRDA shall set the qualifications and compensation for the technical 2 experts. It shall provide resources for the operations and activities of the Advisory Panel.

SEC. 10. Administrator. - The PRDA shall have an Administrator who

shall be appointed by the President of the Philippines, upon recommendation of the Board. The Administrator shall serve a term of six (6) years from the date of their appointment unless sooner separated from service due to death, 9 voluntary resignation, or removal for cause: Provided, That no person shall be appointed as Administrator unless they are a Filipino citizen, holder of a degree in law or a masters degree in any of the following fields: economics, business, public administration, law, management, or their equivalent, and have at least ten (10) years of relevant experience in said fields: Provided, further, That they shall be a resident of the Philippines for at least five (5) years before the appointment.

SEC. 11. Powers and Duties of the Administrator; Secretariat. - The

Administrator shall have the following powers and duties: (a) Direct and manage the affairs of the PRDA in accordance with the policies of the Board; and (b) Call and preside over meetings of the Board in the absence of the Chairperson, and supervise and direct its Secretariat. A Secretariat is hereby established to serve and assist the Board in the effective implementation of this Act. The Head of the Secretariat shall be appointed by the Administrator upon recommendation by the Board: Provided, That no person shall be appointed as Head of the Secretariat unless they are a Filipino citizen, holder of a degree in any of the following fields: economics, business, public administration, law, management, or their equivalent, and have at least five (5) years of relevant experience in said fields: Provided, further, That they shall be a resident of the Philippines for at least five (5) years prior to their appointment and has the requisite eligibilities for third level career service position pursuant to the career executive service rank system;

(c) Ensure the proper implementation of applicable policies, programs, 2 and rules and regulations, including the resolutions of the Board; (d) Identify solutions to key issues and concerns, taking into account 4 related risks, affected parties, and impact, in coordination with the Board and 5 key stakeholders; (e) Advocate the PRDA's work among the various concerned sectors and stakeholders; (f) Call on any agency, group, individual member of the Board, local government unit, and host community to address issues and concerns relating to the implementation of major programs, projects, and activities; (g) Supervise the monitoring and timely implementation of Philippine Rise related programs, projects, and activities; (h) Endorse to the Board all policy recommendations, plans, and programs for approval; (i) Accept, on behalf and upon approval of the PRDA, donations, contributions, grants, gifts, bequests, or devises, in cash or in kind, from members, foreign governments, international agencies, private entities, or any individual for purposes that will realize the functions of the PRDA; i) Supervise administrative operations, including disbursement of any fund of the PRDA, subject to the usual accounting and auditing procedures, and submit reports thereon; (k) Execute and administer the policies and measures approved by the Board; (1) Appoint all employees of the PRDA, and remove, dismiss, or otherwise discipline for cause, such employees in accordance with the standard guidelines for recruitment, employment, and discipline under civil service law, rules, and regulations; (m) Represent the PRDA in all dealings with other offices, agencies, and instrumentalities of the government and with all persons and entities, public or private; (n) Sign agreements and/or contracts, on behalf of the PRDA and upon the Board's approval, including those for expert and consultant services and

I other reports of accountabilities emanating from the PRDA, except when 2 authority to sign such agreements, contracts, or reports is vested in a specific government entity; and (o) Perform such other functions that the Board may direct to carry out 5 the provisions of this Act or which are necessary or incidental to their office.

SEC. 12. Organizational Structure. - The Administrator shall determine

8 the organizational structure, staffing pattern, and pay scales of the PRDA 9 subject to existing civil service and compensation laws. Subject to the approval 10 of the Board, the Administrator may reorganize the PRDA and may create or abolish divisions, units, or branches therein as the exigencies of the affairs of the PRDA may require.

SEC. 13. Merit System. - All officials and employees of the PRDA shall

be selected and appointed on the basis of merit and fitness in accordance with civil service law, rules, and regulations. The recruitment, transfer, promotion, 17 and dismissal of all its personnel, including temporary workers, shall be governed by a merit system that will be established by the PRDA in compliance with existing laws, rules and regulations.

SEC. 14. Appropriations. - Such amounts necessary to finance the initial

implementation of this Act shall be sourced from the unprogrammed funds in the current General Appropriations Act (GAA). Thereafter, such amounts necessary for its continued implementation shall be included in the annual GAA.

SEC. 15. Implementing Rules and Regulations.. - The PRDA, subject to

the approval of the Board and in consultation with other stakeholders shall, within sixty (60) days from the date of effectivity of this Act, promulgate and publish the rules and regulations for the effective and faithful implementation of this Act: Provided, That the failure of the promulgation of the said rules and regulations shall not prevent the implementation of this Act upon its effectivity.

• •

SEC. 16. Separability Clause. - If any portion or provision of this Act is

subsequently declared invalid or unconstitutional, other provisions hereof which are not affected thereby shall remain in full force and effect.

SEC. 17. Repealing Clause. - All other laws, acts, presidential decrees,

executive orders, presidential proclamations, issuances, rules and regulations, or parts thereof which are contrary to or inconsistent with any of the provisions of this Act are hereby repealed, am ended, or modified accordingly.

SEC. 18. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in at least two (2) newspapers of general circulation. Approved,