SBN 439
SBN 439
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AN ACT
INSTITUTIONALIZING THE "BUILD! BUILD! BUILD!" PROGRA?^
EXPLANATORY NOTE
In the past six years, the Filipino people have seen and experienced the impact
of the Philippines' Golden Age of Infrastructure. The "Build! Build! Build!" program of
the government resulted in the creation of hundreds of ports, thousands of roads and
bridges, and millions of jobs. As the country welcomes a new administration, it is
important to keep the momentum going by uniting behind this revolution and bringing
it to new heights not only for us, but also for the generations to come.
The bill lays down the policies and strategies to be pursued by the government,
identifies the initial core infrastructure projects to be given priority, provides various
modalities for the implementation and financing of projects, and defines the role of
implementing agencies in the development of essential transport, energy, water
resources, information and communications technology, social infrastructure systems,
and other basic overhead facilities in the country.
Given the foregoing, prompt approval of this bill is earnestly sought and
recommended.
MARK A. YILLAR
Senator
, '7
RHCElVcD BY;
SENATE
s.B.No. 439
AN ACT
INSTITUTIONALIZING THE "BUILD* BUILD* BUILD*" PROGRAM
1 Section 1. Short Title. -This Act shall be known as the "Build! Build! Build! Act"
2 Sec. 2, Declaration of Policy. -It is the policy of the State to provide an efficient
3 infrastructure system to promote sustainable and inclusive economic growth and
4 sound quality of life for all Filipinos. For this purpose, the Government shall adopt a
5 long-term National Infrastructure Program that will provide the framework in the next
6 30 years for the systematic and continuing development - across government
7 administrations - of essential transport, energy, water resources, information and
8 communications technology, social infrastructure systems, and other basic overhead
9 facilities in the country. This National Infrastructure Program shall be directed to
10 support the achievement of the overall long-term development vision for the
11 Philippines by the middle of the twenty-first century as a prosperous, predominantly
12 middle-class society, where no one is poor, and where Filipinos shall live long and
13 healthy lives, be smart and innovative, and live in a high-trust society. The Program
14 shall serve as the overall guide for the preferred locations, magnitude,
15 interrelationships, and timing of public and private investments in infrastructure in the
16 Philippines over the next three decades to maximize their impact to the economy and
1 society. The Program shall, therefore, provide an overall road map for investors, the
2 construction industry, and allied sectors in pursuing their respective long-term
3 strategies.
7
1 e) Optimize the use of funds through efficient transport infrastructure
2 maintenance and asset management, as well as applicable travel
3 demand management, before considering additional investments;
4 f) Make use of the comparative advantages and interconnectivity of the
5 different transport modes, and provide for healthy competition within
6 and between iransport modes to increase productivity, lower costs
7 and user charges, and improve services. Allocate resources to the
8 transport modes in accordance with their comparative advantages;
9 g) Apply the "user-pays" principle cost recovery where it is appropriate;
10 h) Improve road-based people-oriented transport to address traffic
11 congestion through engineering, enforcement, and education;
12 i) Encourage a shirt from private to public transport, especially on mass
13 transport, through promotion of active transport culture, cost-
14 effective public transport, and lower and/or zero carbon emissions
15 mobility solutions;
16 j) Improve the operational efficiency of airports and address constraints
17 to their optimal capacity utilization; and
18 k) Improve port facilities to ensure that inter-island shipping, including
19 a stronger roll-on roll-off (RORO) network as a viable option for
20 transporting people and cargo.
10
1 government assets, use of infrastructure across sectors, and
2 coordinated build for a shared utility corridor;
3 h) Avoid direct government investment in network infrastructure and
4 operations that would crowd out private investments in commercially
5 viable areas;
6 i) Provide the necessary infrastructure support to ICT projects,
7 especially in far-flung areas;
8 j) Streamline the process for permits for cellular towers, cable laying,
9 and network deployment;
10 k) Liberalize access to satellites for internet connectivity to help address
11 digital infrastructure gap in the countryside; and
12 l) Prepare for 5G and higher generation technology to facilitate digital
13 adoption across sectors.
11
1 services especially in underserved areas with limited physical access
2 to healthcare professionals;
3 c) Construct and improve social housing projects and resettlement
4 areas that adhere to climate change adaptation and disaster risk
5 reduction standards to ensure human, environmental, and ecological
6 safety, as well as access to livelihood opportunities and basic social
7 services, which include communal solar-powered electricity, potable
8 water and drainage, and water management systems. Identify
9 danger and no-build zones to reduce casualties and damages in the
10 event of natural disasters, such as typhoons and earthquakes;
11 d) Provide assistance to LGUs in complying with the requirements under
12 the Ecological Solid Waste Management Act, such as materials
13 recovery facilities, transfer stations, compost production, and waste-
14 ■ to-energy projects;
15 e) Promote proper waste management through public awareness
16 programs and disseminate information on the environmental
17 importance of waste minimization, separation, recycling, reuse, and
18 repurposing;
19 f) Encourage public-private cooperation and strategic investments in
20 cutting-edge technologies and facilities to generate economic value
21 and create livelihoods from waste products, including sustainable
22 production using recycled, reused, and repurposed materials;
23 g) Advocate the establishment of a national policy for sustainable waste
24 management and roadmap for circular economy development to
25 inform policy and infrastructure pipeline development;
26 h) Create an apex body with responsibility for implementing waste
27 management and circular economy policies, plans, programs, and
28 projects, including responsibility to perform the functions outlined in
29 items (d) to (g) herein; and
30 i) Construct, improve and renovate prison infrastructure to decongest
31 existing jails and provide humane accommodations, such as potable
12
water and proper sanitation facilities, complying with health
standards for person deprived of liberty.
13
1 i) Integrate renewable energy goals and standards in agri-fisheries
2 modernization and food logistics infrastructure; and
3 j) Update the irrigation master plan to set the direction for irrigation
4 development and a framework for capital and operations and
5 maintenance financing of irrigation.
14
1 xiii. Mindanao North-South Expressway along the Pan-Philippine
2 Highway Corridor, Surigao-Davao-General Santos-Cotabato-
3 Pagadian-Zamboanga City
4 xiv. Northern Mindanao East-West Expressway, Butuan-Cagayan
5 de Oro-Iligan-Pagadian
6 XV. Central Mindanao Expressway, Cagayan de Oro-Bukidnon-
7 Davao City
8 xvi. Davao City Coastal Road and Dav,ao City-Panabo Bypass Road
9 xvii. Road Network Development Project in Conflict-Affected Areas
10 in Mindanao
11 xviii. Major inter-island bridges/links - Bataan-Cavite, Batangas-
12 Mindoro, Sorsogon-Samar, Panay-Guimiaras-Negros, 4th Cebu-
13 Mactan, Cebu-Negros, Samal-Davao City
14 xix. Major RORO systems: Eastern, Central, and Western
15 Networks
16 b) Metropolitan and urban road and expressway systems:
17 i. Metropolitan Manila Circumferential 5 South Link Expressway
18 ii. Metropolitan Manila Circumferential 6 Expressway
19 iii. Metropolitan Cebu Expressway
20 iv. Bohol Bypass Road
21 V. Metropolitan Davao Expressway
22 vi. Metropolitan Manila Logistics Network, particularly Bridges
23 2. Rail and Other Mass Transport
24 a) Long-haul rail systems:
25 i. Manila to Clark Airport and other parts of North Luzon
26 ii. Manila to Bicol Region
27 iii. Subic-Clark Railway
28 iv. Mindanao Rail Network, Tagum-Davao-Digos, with extensions
29 to Butuan, Cagayan de Oro, General Santos, Iligan, Surigao
30 and Zamboanga
31 b) Urban commuter rail systems:
15
1 i. Metro Manila Subway, San Jose del Monte-Quezon City-
2 Makati-Taguig-Pasay-Parahaque-Las Pihas-Dasmarihas
3 ii. North-South Commuter Rail, Malolos-Calamba
4 iii. Light Rail Transit tLRT) 6, Bacoor-Dasmarihas
5 iv. Mass Rail Transit (MRT) 4, N. Domingo-Ortigas-Taytay
6 V. C5 MRT 10, Ninoy Aquino International Airport-
7 Commonwealth Ave., Quezon City
8 vi. MRT-11,- EDSA-Quirino San Jose del Monte
9 vii. Monorail from Guadalupe to Bonifacio Global City (BGC)
10 viii. Makati-BGC Sky train
11 ix. Cebu Monorail Transit, Central and Airport Lines
12 X. Davao City Monorail
13 c) Urban bus transit systems and other projects:
14 i. Metro Manila Bus Rapid Transit (BRT) Line 1, Quezon Ave-
15 Espaha
16 ii. Metro Manila EDSA BRT
17 iii. EDSA a' id Makati BGC Greenways
18 iv. Intelligent Transport Systems for Mega Manila, Metro Cebu,
19 Metro Davao, Angeles, Bacolod, Baguio, Cagayan De Oro,
20 General Santos, Iloilo
21 V. Cebu BRT
22 vi. Davao Public Transport Modernization Project, including
23 Intermodal Terminal
24 vii. Intermodal Terminals in Metro Manila - including Taguig
25 Integrated Terminal Exchange and North Philippine Dry Port
26 Container Rail Transport Service - Bocaue, Sta. Rosa, Baguio,
27 Cebu City, Iloilo City, Bacolod, General Santos, Clark, Lucena
28 3. Ports
29 a) Batangas and Subic Ports to complement Manila Ports
30 b) Iloilo Port
31 c) Cebu Container Port
32 d) Davao Sasa Port
16
1 e) General Santos Port
2 f) Other National Ports
3 4. Airports
4 a) Mega Mani!a Airport System
5 Improved Ninoy Aquino International Airport
6 Bulacan Airport
7 Sangley Airport
8 b) Regional Airports:
9 i. Puerto Princesa
10 ii. Iloilo
11 iii. Kalibo
12 iv. Bacolod-Silay
13 V. New Bonol (Panglao)
14 vi. New Zamboanga
15 vii. Laguindingan
16 viii. Davao
17 ix. New Dumaguete (Bacong)
18 X. General Santos
19 xi. Bicoi (New Legazpi International Airport)
20 xii. Mlang Central Mindanao
21 B. Energy Infrastructure
22 1. Generation
23 Required generating capacity as stated in the approved Philippine
24 Energy Plan
25 2. Transmission
26 Completion of the interconnection of main grids and connection of
27 off-grid, where feasible.
28 3. Distribution
29 100% national electrification coverage
30 C. Water Resources Infrastructure
31 1. Water Supply and Sanitation
32 a) Metro Manila
17
1 Kaliwa Dam, 600 million liters per day (MLD)
2 Kanan/Agos River, 3,800 MLD
3 111. Laguna Lake, 5,000 MLD
4 iv. New Wawa Dam, 400 MLD
5 b) Other Urban Areas: 100% Level III service coverage and
6 centralized wastewater treatment facilities
7 c) Rural Areas: at least 90% Level I service coverage and communal
8 wastewater treatment facilities
9 2. Irrigation
10 Total additional 1,400,000 hectares by 2050, including the following:
11 a) Ilocos Norte-IIocos Sur-Abra Irrigation Project
12 b) Ilocos Sur Trans Basin Project
13 c) Chico River Irrigation Project, Cagayan and Kalinga
14 d) Tumauini River Multipurpose Project, Isabela
15 e) Balog-Balog Multi-Purpose Project, Tarlac
16 f) Jalaur River Multi-Purpose Project, Iloilo
17 g) Panay-River Basin Integrated Development Project
18 h) Bohol Northeast Basin Multipurpose Project
19 i) Malitubog-Maridagao Irrigation Project, North Cotabato and
20 Maguindanao
21 j) Kabulnan-2 Multipurpose Irrigation and Power Project
22 3. Flood Control c.nd Drainage
23 a) Metro Manila and Surrounding Areas Flood Control, including the
24 following:
25 Pasig-Marikina River Channel Improvement
26 Marikina Multipurpose Dam
27 m. Parahaque Spillway
28 iv. Laguna Lakeshore Flood Protection
29 V. River Improvements of Other Rivers
30 vi. Urban Drainage Systems
31 b) Flood Conti ol in Other Major River Basins:
32 i. Agno
18
1 ii. Abra
2 iii. Abulog-Apayao
3 iv. Cagayan
4 V. Pampanga
5 vi. Bicol
6 vii. Pa nay
7 viii. Jalaur
8 ix. Ilog-Hilabangan
9 X. Tagaloen
10 xi. Cagayan de Oro
11 xii. Mindanao (Rio Grande)
12 xiii. Buayan-Malungon
13 xiv. Davao
14 XV. Tagum-Libuganon
15 xvi. Agus
16 c) Other Major Urban Areas, including Cavite Industrial Area and
17 Metro Cebu
18 D. ICT Infrastructure
19 1. National Broadband Network, with universal access and internet
20 connectivity
21 2. ICT Capability Development and Management Program
22 3. Activation of nodes using the National Grid's spare fiber to cascade
23 capacity to growth areas in Luzon, Visayas, and Mindanao
24 4. Cable landing stations with submarine cable to bring in more links to
25 the international gateway
26 E. Social Infrastructure
27 1. School Buildings
28 a) Additional K-12 public classrooms to cover 100% of children of
29 school age
30 b) Provision of digital infrastructure to all schools to support online
31 or distance learning
32 2. Hospitals and Health Facilities
19
1 a) Expansion of capacities and upgrading of service capabilities of
2 government hospitals and other facilities, in accordance with the
3 Philippine Health Facility Development Plan of the Department of
4 Health, to ensure functional Health Care Provider Networks as
5 provided in the Universal Health Care Act
6 b) Virology Science and Technology Institute of the Philippines
7 3. Waste Management and Circular Economy Infrastructure
8 a) Waste collection, transportation, and disposal facilities and
9 infrastructure
10 b) Waste sorting, aggregation, and transfer stations, including
11 markets and waste banks
12 c) Recycling and sustainable production facilities
13 d) Waste-to-energy and waste incineration installations
14 4. Penitentiary Infrastructure
15 Prisons in major urban centers
16 F. Agri-Fisheries Modernization and Food Logistics Infrastructure
17 1. Irrigation and soil and water conservation facilities
18 a) National irrigation projects - as listed in Section 12 C.2. of this
19 Act
20 b) Communal and small-scale irrigation projects
21 c) Soil and water conservation facilities including small water
22 impounding and bio-engineering projects
23 2. Farm-to-market and access roads
24 3. Production facilities including greenhouses/screenhouses,
25 hatcheries, and bio-safety facilities
26 4. Post-harvest facilities, including dryers and warehouses, regional fish
27 ports with cold storage, slaughterhouses and other meat facilities,
28 and post-harvest facilities
29 5. Agri-fishery marketing and distribution facilities
30 6. Renewable energy projects for agri-fisheries
20
1 As provided in Section 13 of this Act, the initial list of core national infrastructure
2 projects in this Section shall be regularly updated by the NEDA, to reflect changes in
3 development policies, in economic, physical and social, and social conditions, and in
4 the status of the projects in the Program, among other factors.
5 Sec. 13. Responsibility for Formulation, Updating and Monitoring of the Detailed
6 30-Year Program. - Pursuant to the policies, strategies, and other provisions in this
7 Act, the NEDA shall, in coordination with the concerned oversight and implementing
8 agencies and in consultation with concerned stakeholders, be responsible for the
9 formulation of the detailed 30-Year National Infrastructure Program, divided into
10 Medium-Term Programs. This shall include the selection, prioritization, and phasing of
11 the specific projects with their respective descriptions, scopes, cost estimates,
12 priorities, funding requirements, schedules, financing and implementation modalities,
13 and implementing agencies. The extent to which the proiects in the Program meet the
14 policies and strategies provided in Section 5 of this Act and the agency responsibilities
15 In Sections 6 to 11 of this Act shall generally determine their priority, phasing, and
16 schedule of implementation.
17 In coordination with the concerned agencies, the NEDA shall update the
18 Program at the end of the period of each Medium-Term Philippine Development Plan,
19 or as often as may be necessary, taking into account changes in development policies,
20 in economic, physical and social conditions, and in the status of the projects In the
21 Program, among other factors. This update may include addition or deletion of
22 projects or changes in their scopes and schedules, on the basis of actual physical,
23 social, and economic circumstances, with sufficient justifications, according to
24 detailed guidelines to be defined by the NEDA.
25 In all updates of the Program, priority shall be given to the core infrastructure
26 projects identified in this Act and in such updates.
21
1 financial performance of implementing agencies and tne socio-economic imipact of
2 program accomplishments.
3 Sec. 14. Minimum Budget Aiiocation for Infrastructure. - The NEDA and the
4 Department of Budget and Management (DBM) shall ensure that the total annual
5 budget allocation by the government for the Program is at least five percent (5%) of
6 the Gross Domestic Product; Provided, That the constitutional mandate for the State
7 to assign the highest budgetary priority to education is observed.
8 The budget aiiocation for the program shall be consistent with the long-term
9 expenditure framework of the government within the budget ceilings set by the
10 Development Budget Coordinating Committee (DBCC), as well as with realistic levels
11 of private sector investments under PPP schemes. The NEDA and the DBM shall also
12 establish the infrastructure budget allocation for each implementing agency, taking
13 into account the priorities of the projects as well as the absorptive capacity and
14 performance record of the agency in project implementation and budget utilization.
22
1 b) Design-Build-Scheme - This is generally applicable to non-financially
2 viable, but economically feasible projects where alternative design-build
3 technologies are feasible.
4 1. Financing of design, construction, operation and maintenance, and
5 right-of-way of the project is undertaken by the national government.
6 2. Design is undertaken by the private design-build contractor.
7 3. Construction is undertaken by the private design-build contractor.
8 4. Operation and maintenance is undertaken by the national
9 government, by itself or through a private operation and
10 maintenance contractor.
11 c) Public-Private Partnership Scheme - This is generally applicable to
12 financially viable and economically feasible projects, with cost recovery
13 from user charges or with value for money to the government/public.
14 1. Financing of right-of-way and allowable subsidy for the project is
15 undertaken by the national government. Financing of design,
16 construction, and operation and maintenance is undertaken by the
17 PPP concessionaire.
18 2. Design is undertaken by the PPP concessionaire.
19 3. Construction is undertaken by the PPP concessionaire.
20 4. Operation and maintenance are undertaken by the PPP
21 concessionaire.
22 d) Hybrid PPP scheme - This is generally applicable to financially viable and
23 economically feasible projects where Official Development Assistance
24 (ODA) is an affordable and quick source of financing for project design
25 and construction, while the PPP Concessionaire can efficiently undertake
26 the operation and maintenance.
27 1. Financing of right-of-way and allowable subsidy is undertaken by the
28 National Government. Financing of design and construction is
29 undertaken by the national government with ODA.
30 2. Design is undertaken by the national government, by itself or through
31 a private designer.
23
1 3. Construction is undertaken by the national government, by itself or
2 through a private construction contractor.
3 4. Operation and maintenance is undertaken by the private PPP
4 concessionaire.
5 e) National Government-Local Government Unit (LGU) Partnership - This is
6 generally applicable to non-financially viable but economically feasible
7 projects where LGUs can contribute to right-of-way and operation and
8 maintenance.
9 1. Financing of design and construction is undertaken by the national
10 government. Financing of right-of-way/operation and maintenance is
11 undertaken by the LGU.
12 2. Design is undertaken by the national government, by itself or through
13 a private designer.
14 3. Construction is undertaken by the national government, by itself or
15 through a private construction contractor, or by the concerned LGU.
16 4. Operation and maintenance is undertaken by the LGU.
17
18 Sources of National Government and LGU financing may include revenues and
19 loans and grants, including loans or grants from ODA sources.
29 Sec. 16. Basis for Medium-Term Pianning and Annuai Programming and
30 Budgeting. - Pursuant to the priorities and standards of the program indicated herein,
24
1 the implementing agencies shall formulate their respective Medium-Term
2 Infrastructure Programs which shall then be integrated into the overall National
3 Medium-Term Infrastructure Programs and the Medium-Term Philippine Development
4 Plan to be crafted by the NEDA.
5 On the basis of the Program, the implementing agencies shall prepare their
6 respective three-to-six-year Medium-Term Expenditure Frameworks (MTEFs) and
7 subsequently their Annual Infrastructure Budgets (AIBs), which shall then be
8 integrated into the proposed annual National Expenditure Programs (NEPs) to be
9 prepared by the DBM for submission to the Congress as the basis of the annual General
10 Appropriations Acts (GAAs). The implementing agencies and the DBM shall see to it
11 that the core projects in the 30-Year National Infrastructure Program are given priority
12 in the MTEFs, AIBs and NEPs.
13 The MTEFs shall be guided by the yearly budget ceilings to be provided by the
14 DBCC. The AIBs shall follow the cash-based budgeting system of the Government.
15 The core projects in the initial list under Section 12 of this Act, as well as those
16 in the updates of the Program pursuant to Section 13 of this Act, shall be vetted and
17 approved according to the detailed evaluation criteria set by the NEDA, to confirm
18 their technical, economic, financial, social, and environmental feasibility and priority,
19 before the projects are included in the Medium-Term and Annual Infrastructure
20 Programs and Budgets as provided in Section 10 of this Act.
21 Based on the Program and the approved GAAs, the DBM shall issue the
22 necessary Multi-Year Contracting Authority (MYCA) to cover the total cost of each
23 project the implementation of which will span several years. The DBM shall classify
24 projects with issued MYCAs as priority items in the Agency AIBs, and shall provide for
25 the automatic inclusion of the required funds in succeeding NEPs to enable the
26 continuous implementation of such multi-year projects up to their completion.
25
1 Sec. 17. Use of Applicable Modern Technology for Project Implementation. -
2 To achieve efficiency and transparency, projects in this Program shall, where
3 applicable, be procured through electronic online systems, cover to include the
4 submission and evaluation of bids.
5 For effective management of the projects, implementing agencies shall use the
6 Building Information Modeling (BIM) or similar applicable automated management
7 tools that can visualize, simulate, track, and help optimize the performance of a
8 particular infrastructure in five dimensions, namely, length, width, height, time, and
9 cost, throughout the lifecycle of the project, from planning and design, through
10 procurement and construction, to operation and maintenance.
11 Sec. 18. Accountability for Formulation and Implementation of this Act. -The
12 concerned oversight and implementing agencies shall be held accountable, under
13 existing laws including anti-graft and corrupt practices laws and auditing rules, and
14 shall be expected to properly fulfill their respective responsibilities in the selection,
15 prioritization, budgeting, financing, procurement, execution of and fund
16 disbursements for these projects, and all related aspects of the Program, as provided
17 in this Act.
18 Sec. 19. Implementing Rules and Regulations. - Within sixty (60) days from
19 the approval of this Act, a Committee, composed of the following officials, shall
20 promulgate the rules and regulations for the proper implementation of the provisions
21 of the Act:
22 a) The Secretary of Socio-Economic Planning and Director General of the NEDA
23 as Chairman.
24 b) All Members of the NEDA Infrastructure Committee as Members.
25 In the preparation of the aforesaid rules and regulations, the Committee shall
26 consult with major stakeholders from the private sector, including business groups,
27 LGUs, community organizations, and non-government organizations, among others.
26
1 Sec. 20. Separability Cause. - If any provision of this Act is declared
2 unconstitutional or invalid, other parts or provisions hereof not affected thereby shall
3 continue to be in full force and effect.
4 Sec. 21. Repeaiing Cause. - All laws, decrees, orders, rules and regulations or
5 parts thereof inconsistent with this Act are hereby repealed or amended accordingly.
6 Sec. 22. Effectivity. -This Act shall take effect after fifteen (15) days following
7 its publication in the Officiai Gazette ox in a newspaper of general circulation.
8 Approved,
27