Philippine Rise Development Authority Act

Senate Oilice of the Secretarp TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session MAR 24 P1:06 So. 2010 RECEIVED BY: S.B. No. Introduced by SENATOR IMEE R. MARCOS AN ACT CREATING THE PHILIPPINE RISE DEVELOPMENT AUTHORITY, DEFINING ITS POWERS AND FUNCTIONS, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES EXPLANATORY NOTE Article II, Section 7 of the 1987 Constitution provides that, "the State shall pursue an independent foreign policy. In its relations with other states, the paramount consideration shall be national sovereignty, territorial Integrity, national interest, and the right to self-determination." Further, Article XII, Section 2, paragraph 2 mandates that, "the State shall protect the nation's marine wealth in its archipelagic waters, territorial sea, and exclusive economic zone, and reserve its use and enjoyment exclusively to Filipino citizens." The "Philippine Rise", formerly known as the "Benham Rise," per Executive Order No. 25, series of 2017, is a twenty-four (24)-million hectare undersea feature sea region located within the Philippine exclusive economic zone (EEZ) and continental shelf, as well as the outer limits of the continental shelf. In April 2012, the United Nations Commission on the Limits of the Continental Shelf (CLCS) adopted in full the country's submission declaring it as part of the Philippine extended continental shelf (ECS), granting the Philippines exclusive sovereign rights for exploration and resource exploitation. Strategically, the Rise serves as a "gateway" to the Pacific, offering a critical navigation point that can reduce travel expenses and logistical challenges for regional maritime trade. Beyond its location, the underwater plateau contains untapped natural gas and heavy metals according to the University of the Philippines - Institute of Maritime Affairs and Law of the Sea (UP-IMLOS) Director Jay Batongbacal. In addition, the area is rich in manganese deposits which is a vital component of steel production and as an ingredient of fertilizers and ceramics. Meanwhile, Armed Forces of the Philippines (AFP) Researcher Rowena Tatad reported presence of methane hydrate in

the Benham Bank, the shallowest part of the plateau, to which Geologist Hobart King anticipates to be a "next energy game changer" in the coming years, since it stores an immense amount of energy when harnessed. Aside from that, the bank also houses a diverse community of marine life, including various soft and hard corals, algae, sponges, and fish. Despite this immense potential, the region needs a coherent and integrated institutional mechanism to ensure that the area is explored, utilized, and protected in a manner consistent with national interest and environmental sustainability. Recognizing its importance and its substantial size and the existence of marine, oil, and other natural resources, former President Rodrigo Roa Duterte ordered the conduct of extensive research and exploration to tap and accelerate the sound and sustainable development of the Philippine Rise particularly on its potential to be a tourism destination and possible source of alternative energy and marine resources. He also directed the relevant naval forces to protect the area from external threats. In view of its immense ecological, economic, and strategic significance, there is a compelling need to establish an effective institutional mechanism that will provide an integrated and coordinated approach to the formulation and implementation of plans, programs, and projects for the Philippine Rise. Hence, this bill seeks to create the Philippine Rise Development Authority, which shall promote, coordinate, and facilitate the active participation of all sectors in the exploration, study, utilization, development, management, and protection of the Philippine Rise. The Authority shall likewise serve as the lead agency in enforcing and advancing the State's sovereign rights over the area. The same measure was likewise filed by the undersigned during the 18th and 19th Congress, reflecting the continuing recognition of the urgent need to institutionalize a dedicated body for the sustainable development and protection of the Philippine Rise. Thus, the immediate passage of this bill is earnestly sought. Free h. Maver IMÉE R. MARCOS

Senate Office of the Secretary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) MAR 24 P1:06 First Regular Session SENATE RECEIVED BY: S.B. No. _ 2010 Introduced by SENATOR IMEE R. MARCOS 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 House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title. - This Act shall be known as "Philippine Rise Resource

Development Authority Act".

SEC. 2. Declaration of Policy. - It is the policy of the State to give paramount

4 consideration to the State's national sovereignty, territorial integrity, national interest, and the right to self-determination. The "Philippine Rise", formerly known as the "Benham Rise," as per Executive Order No. 25, series of 2017, is a twenty-four (24)- 7 million hectare undersea feature sea located within the Philippine exclusive economic zone (EEZ) and continental shelf, as well as the outer limits of the continental shelf in accordance with the recommendations of the United Nations Commission on the Limits of the Continental Shelf (CLCS) which has a rich source of alternative energy, marine resources and a possible tourism destination. The creation of a Philippine Rise Resource Development Authority shall promote, coordinate, and facilitate the active and extensive participation of all sectors to effect the exploration, study, utilization, and development of the Philippine Rise.

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

is hereby created a "Philippine Rise Resource Development Authority", hereinafter referred to as the "Authority", which shall promote, coordinate, and facilitate the active and extensive participation of all sectors to effect the exploration, study, utilization, and 5 development of the Philippine Rise. The Authority shall also be the lead agency to 6 enforce the rights of the State over the area, including the conduct of research and 7 exploration. It shall be an attached agency to the Department of Economy, Planning, and 9 Development (DEPDev) and shall establish its principal office in the Aurora Pacific 10 Economic and Freeport Zone otherwise known as the "APECO" and may put up such branches as may be necessary to achieve the objectives of this Act.

SEC. 4. Coverage. - The Authority shall cover all natural resources located at the

Philippine Rise, encompassing more or less thirteen (13)-million hectare underwater plateau within coordinates 119030'E to 132°00,E and 12010'N to 20°30'N latitude, as provided in the decision of the United Nations Convention on the Law of the Sea (UNCLOS) which states that the aforementioned landmass is part of the Philippine's continental shelf and territory.

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

Authority. - In the exercise of its mandate, the Authority shall have the following powers and functions: a) Formulate an integrated development framework for the Philippine Rise that is consistent with the development initiatives of the national government, as far as practicable; b) Integrate, prioritize, program, and implement, whenever allowed and authorized by applicable laws, programs, activities, and projects at the Philippine Rise, including Official Development Assistance (ODA) projects, subject to such limitations prescribed by existing laws, rules and regulations; c) Recommend to and, whenever necessary, call upon the proper agencies on the technical support, physical assistance and, generally, the level of priority

to be accorded to environmental, agricultural, fisheries, energy, industrial, commercial. Infrastructure, tourism, technological and scientific programs and projects soliciting or requiring direct or indirect help from or through the national government or any of its agencies or instrumentalities; d) Advocate national policies that will foster the integrated, balanced, and sustainable development of the Philippine Rise; e) Promote and facilitate public and private investments in any field that would enhance the economic development of the Philippine Rise in close coordination with agencies primarily mandated to undertake such functions; f) Explore other sources of financing, if applicable or necessary, for priority Philippine Rise-related programs, projects and activities; g) Coordinate and facilitate the extension of necessary planning, management and technical assistance to prospective and existing investors, complementary and in support of agencies primarily mandated to execute such functions; h) Establish a comprehensive and integrated database on the Philippine Rise needed for planning and decision making; i) Monitor, evaluate and formulate recommendations in the implementation of development programs, activities and projects involving the Philippine Rise; j) Provide strategic direction for the sustainable and long-term development of the Philippine Rise; k) Establish appropriate mechanisms to ensure the timely implementation of the Philippine Rise projects, whenever necessary, as far as practicable, including, but not limited to, public-private partnership; 1) Review and recommend for approval by the DEPDev Board such Philippine Rise programs, projects, and plans by the national government and donor agencies subject to existing laws, rules and regulations; m) Act as the official and permanent lead agency of the government in coordinating the formulation and implementation of policies and programs;

n) 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 ODA, to be used in the development of the Philippine Rise, subject to existing laws, rules and regulations; o) To sue and be sued, enter into contracts, acquire, purchase, hold, lease, transfer, dispose of property of any kind or nature to carry out the purposes to this Act; and, P) Any other function/s that may be deemed necessary or as may be provided by law. The Authority, through the Administrator, shall submit to the President and Congress annual reports on its accomplishments and activities.

SEC. 6. Board of Directors. - The power of the Authority 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 of the Authority. It shall be composed of the following: a) The DEPDev Secretary, which shall act as the Chairman of the Board; b) The Administrator of the Authority, which shall act as the Vice-Chairman of the Board; and c) Nine (9) other members composed of the following: i. The Department of Environment and Natural Resources (DENR) Secretary or his/her duly authorized representative; ii. The Department of Energy (DOE) Secretary or his/her duly authorized representative; iii. The Department of Agriculture (DA) Secretary or his/her duly authorized representative; iv. The Department of Science and Technology (DOST) Secretary or his/her duly authorized representative; v. The Department of Finance (DOF) Secretary or his/her duly authorized representative

vi. The Philippine Coast Guard (PCG) Commandant or his/her duly authorized representative; vii. Three (3) representatives from the private sector to be appointed by the President, upon the recommendation of the other members of the Board, comprising of one (1) representative each from the following: 1) Business Sector; 2) Academic Sector; and 3) Science Sector The term of the three (3) representatives from the private sector shall be six (6) 10 years: Provided, That at the initial appointment of such members, the second member to be appointed shall only serve a term of four (4) years and the third member to be appointed shall only serve a term of two (2) years: Provided, further, That they shall continue to hold office until their successors shall have been appointed. All vacancies, prior to the expiration of the term, shall be filled for the unexpired term only. Members of the Board shall receive a per diem at a rate to be determined by the Governance Commission for Government-Owned or -Controlled Corporations (GCG), in accordance with existing rules and regulations. Provided, however, 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 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 Authority's work and thrusts for the Philippine Rise; b) Ensure that the goals and policies of the Authority are consistent with the overall national development goals and objectives; c) Ensure that the programs of the Authority are consistent with regional and local development plans, programs, and projects and vice versa for purposes of harmonization;

d) Explore sources for financing of priority Philippine Rise plans, programs, projects and activities; e) Create committees/task forces as may be deemed necessary in the accomplishment of duties and functions; f) Determine schedules, establish voting procedures, criteria for the constitution of a quorum and other rules and regulations in the conduct of Board meetings; and g) Perform such functions, as may be necessary, to carry out the purposes of this Act.

SEC. 7. Administrator. - The Authority shall be headed by an Administrator which

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

SEC. 8. Powers and Duties of the Administrator. - The Administrator shall have

the following powers and duties: a) To direct and manage the affairs of the Authority in accordance with the policies of the Board; b) Call and preside meetings of the Board and see to it that the policies, programs and rules and regulations are implemented properly; c) Call on outstanding and credible individuals in the formulation and implementation of a comprehensive and integrated development plan for the Philippine Rise, the preparation of investment programming priorities, annual reports, and other pertinent documents approved by the Authority;

d) Identify solutions to key issues and concerns, taking into account related risks, affected parties and impact, in coordination with the Board and key stakeholders; e) Advocate the Authority'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 the Philippine Rise related programs, projects and activities; h) Endorse to the Board all policy recommendations, plans and programs for approval; i) Accept, on behalf of the Authority, donations, contributions, grants and bequests or gifts, in cash or in kind, from members, foreign governments, international agencies, private entities or any individual for purpose that will realize the functions of the Authority; j) Supervise administrative operations including disbursement of any fund of the Authority, subject to the usual accounting and auditing procedures, and submit reports thereon; k) Execute and administer the policies and measures approved by the Board; I) Appoint all employees of the Authority, and remove, dismiss or otherwise discipline for any authorized cause, such employees in accordance with the standard guidelines for recruitment, employment, and discipline in the Civil Service Code; m) Represent the Authority 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 Authority, including those for expert and consultant services and other reports of accountabilities emanating from the Authority; and o) Such other functions that the Board may direct to carry out the provisions of this Act or which are necessary or incidental to his/her office.

SEC. 9. Secretariat. - A Secretariat is hereby established to serve and assist the

7 Board in the effective implementation of this Act. The Secretariat shall be headed by the Administrator which shall be assisted by four (4) Deputy Administrators. Provided, 9 That no person shall be appointed as a Deputy Administrator unless he/she is a holder 10 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 relevant experience In said fields: Provided, further, That he/she shall be a resident of the Philippines for at least five (5) years prior to his/her appointment and has the requisite eligibilities for third level career service position pursuant to the career executive rank system. Upon recommendation of the Administrator, the Board shall approve the appointment of the Deputy Administrators.

SEC. 10. Organizational Structure. - The Administrator shall determine the

organizational structure, staffing pattern and pay scales of the Authority, as may be approved by the Board, subject to existing civil service and compensation laws. The Administrator, in coordination and with approval of the Board, may also reorganize the Authority and may create or abolish divisions, units or branches therein as the exigencies of the affairs of the Authority may require.

SEC. 11. Merit System. - All officials and employees of the Authority 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, and dismissal of all its personnel including temporary workers shall be governed by a merit system that will be established by the Authority In compliance with existing laws, rules and regulations.

SEC. 12. Appropriations. - The amount necessary to implement this Act shall be

included In the General Appropriations Act (GAA).

SEC. 13. Implementing Rules and Regulations. - The Administrator, in

coordination with the DENR, DOE, DA, DOST, DOF, PCG, and DEPDev and in consultation with other stakeholders shall, within ninety (90) days from the date of effectivity of this Act, promulgate and publish the rules and regulations for the effective and 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 9 effectivity.

SEC. 14. Separability Clause. - If, for any reason or reasons, any part or provision

of this Act shall be declared as unconstitutional or invalid, the other parts or provisions hereof which are not affected thereby shall continue to be in full force and effect.

Sec. 15. Repealing Clause. - All provisions of existing laws, orders, rules and

regulations or parts thereof which are in conflict or inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly.

Sec. 16. Effectivity Clause. - This Act shall take effect after fifteen (15) days

following its publication in the Official Gazette or in a newspaper of general circulation in the Philippines. Approved,