Press Release
September 4, 2009

Loren files bill promoting Mindanao development

Sen. Loren Legarda yesterday filed a bill proposing the creation of a Mindanao Economic Development Authority "to accelerate the socio-economic growth and development of Mindanao."

In Senate Bill No. 3421, Loren noted that Mindanao is "very rich in human and natural resources" and yet "six out of the 10 poorest Philippine provinces and the bottom five provinces in terms of the Human Development Index are in Mindanao."

Hence, according to Loren, there is a need for the government to accelerate further the economic development and growth of Mindanao through an agency that is primarily tasked to plan, coordinate and implement the development policies for the island.

She observed that while the Mindanao Economic Development Council (MEDCo) has been doing this for the past 16 years, there is a need to strengthen it and make it more permanent through the creation of the Mindanao Economic Development Authority (MEDA), allowing for the prioritization of the development agenda.

The MEDA "shall promote, coordinate, and facilitate the active and extensive participation of all sectors to effect the socio-economic development of Mindanao. It shall also act as an implementing agency for Mindanao-specific interregional and Mindanao-wide programs and projects, whenever necessary."

The government shall furthermore undertake efforts to promote the active participation of Mindanao and Palawan in the Brunei Darussalam-Indonesia-Malaysia-Philippines-East ASEAN Growth Area (BIMP- EAGA), Loren said.

The Authority, which shall have its main office at Davao City, shall be allowed to engage or invest in or enter into joint venture with Filipino and foreign investors in such Mindanao-wide and/or interregional projects as it may deem proper and necessary or contributory to the economic development of Mindanao.

MEDA shall also have the authority to 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, for purposes that would contribute to the development of Mindanao, subject to existing laws, rules and regulations.

It shall also have the power to sue and be sued, enter into contracts, acquire, purchase, hold, lease, transfer, dispose of property of any kind or nature necessary to carry out the purposes of the Act. It shall have a corporate term of 50 years.

The Authority shall formulate "an integrated development framework for Mindanao that is consistent with the peace initiatives of the National Government; foster the integrated and balanced development of Mindanao; explore sources for financing programs, projects and activities; and provide technical assistance to prospective and existing investors.

The MEDA Chairperson shall be appointed by the President of the Philippines with a cabinet rank and shall act as the head of office. He/she shall be assisted by an executive director who shall be appointed by the president upon recommendation of the chairperson.

A MEDA Advisory Board shall be created to be composed of the MEDA Chairperson, and the chairpersons of the Regional Development Councils (RDCs) of Regions IX, X, XI, XI1 and XIII, and the Regional Economic Development and Planning Board (REDPB) of ARMM.

The Advisory Board will also include the chairpersons of the House Committee on Mindanao Affairs; the Chairperson of the House Committee on BIMP-EAGA Affairs; The Vice President for Mindanao of the Union of Local Authorities of the Philippines (ULAP); and the President of the Mindanao Confederation of Governors', City Mayors' and Municipal Mayors' League Presidents

The board shall also include the administrator of the Southern Philippines Development Authority (SPDA); three representatives from the private sector to be appointed by the President, and one representative each from the Mindanao Business Sector, Mindanao Academe Sector and Mindanao Non-Government Organization (NGO) Sector.

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