1

1 Republic of the Philippines

2 Bangsamoro Autonomous Region in Muslim Mindanao
3 BANGSAMORO TRANSITION AUTHORITY
4 Cotabato City
5
6
7 Second Parliament
8 First Regular Session
9
10
11 Parliament Bill No. ___33___
12 (Cabinet Bill)
13
14
15
16 Introduced by:
17
18 THE GOVERNMENT OF THE DAY
19
20
21
22 AN ACT CREATING THE ENERGY DEVELOPMENT
23 CORPORATION OF THE BANGSAMORO (EDCB), DEFINING ITS
24 POWERS AND FUNCTIONS, PROVIDING FUNDS THEREFOR,
25 AND FOR OTHER PURPOSES
26
27
28 EXPLANATORY NOTE
29
30 Energy as a basic commodity continually evolves with the pace of the economic development
31 in any economies in the world. Energy, for it to become a product or a commodity for commercial
32 use, revenue generation, and economic development requires exploration, utilization and
33 development.
34
35 The Bangsamoro is blessed, that it has within territorial jurisdiction, natural energy sources
36 that can be explored, utilized, and developed.
37
38 It is for the purpose of undertaking the development of energy sources utilization that this
39 bill is submitted, creating a public corporation which shall be known as the Energy Development
40 Corporation of the Bangsamoro (EDCB). It is through this, that the Bangsamoro Government with
41 the National Government, shall identify and select prospective contract areas to be offered for
42 exploration and development, as embodied in Article XIII Section 10 of republic Act 11054.1
43
44 It is recognized that energy related activities and projects contribute substantial amount to
45 the coffers of governments. With the initiatives, and programs that our Bangsamoro Government
46 seeks to pursue, diligent efforts must be had to support and ensure that they are materialized during
47 our time. It is with the EDCB, that we supplant what we already have. The creation of the EDCB not
48 a mere creation of an income generating company, it is a move towards improving the quality of
49 lives of the Bangsamoro and funding the programs that Bangsamoro Government envisions to
50 pursue.

1 “Section 10. Exploration, Development, and Utilization of Fossil Fuels and Uranium. - Subject to the provisions of the Constitution and
national laws, the Bangsamoro Government and the National Government shall jointly exercise the power to grant rights, privileges, and
concessions over the exploration, development, and utilization of uranium and fossil fuels such as petroleum, natural gas, and coal in the
territorial jurisdiction of the Bangsamoro. xxx”
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1
2 We are all living witnesses of how we waste resources by allowing idleness. It is thus a
3 shame if we continually allow to defer development at our time.
4
5 We need this vehicle to bring us where we want to be in energy development, and it is within
6 the authority of the Bangsamoro Government to create the Energy Development Corporation of the
7 Bangsamoro.
8
9 In view of the foregoing, the immediate passage of the bill is earnestly sought.
10
11
12
13 HON. AHOD BALAWAG EBRAHIM
14 Chief Minister
15
 1

1 Republic of the Philippines

2 Bangsamoro Autonomous Region in Muslim Mindanao
3 BANGSAMORO TRANSITION AUTHORITY
4 Cotabato City
5
6
7 Second Parliament
8 First Regular Session
9
10
11 Parliament Bill No. ___33___
12 (Cabinet Bill)
13
14
15
16 Introduced by:
17
18 THE GOVERNMENT OF THE DAY
19
20
21
22 AN ACT CREATING THE ENERGY DEVELOPMENT
23 CORPORATION OF THE BANGSAMORO (EDCB), DEFINING ITS
24 POWERS AND FUNCTIONS, PROVIDING FUNDS THEREFOR, AND
25 FOR OTHER PURPOSES
26
27
28 SECTION 1. Short Title. — This Act shall be known as the "Charter of the Bangsamoro
29 Energy Development Corporation."
30
31 SECTION 2. Declaration of Policy. — It is the declared policy of the Bangsamoro
32 Government to promote economic development through the effective and efficient utilization of
33 energy sources, for power generation to achieve sustainable development goals. In line with this
34 policy, the establishment of an organized entity is necessary in order to supplant power and energy
35 sources and consequently enable the unimpeded and efficient growth of the economy.
36
37 SECTION 3. Creation of the Energy Development Corporation of the Bangsamoro. —
38 For the purpose of undertaking the development of energy sources utilization and for other
39 purposes specified in this Act, there is hereby created a public corporation which shall be known
40 as the as the Energy Development Corporation of the Bangsamoro. The words "EDCB" and
41 "Board" appearing in this Act shall respectively refer to the Energy Development Corporation of
42 the Bangsamoro and the Energy Development Corporation of the Bangsamoro Board, hereinafter
43 provided. For aforesaid purpose, the EDCB shall have capacity to sue and be sued.
44
45 SECTION 4. Supervision. - The EDCB under the supervision of the Ministry of Energy
46 and Natural Resources and Economy.
47
48 The Minister of Energy and Natural Resources and Economy shall, in a concurrent
49 capacity, be the ex officio chairman of the EDCB Board, unless otherwise directed by the Chief
50 Minister: Provided, That in no case shall the Minister be the chief executive officer or chief
51 operating officer of the EDCB, any law to the contrary notwithstanding.
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1
2 SECTION 5. Office and Term. - The principal office of the EBDC shall be determined
3 by its Board of Directors. Provided that it be within the Bangsamoro Government Territory. It
4 may establish such offices, agencies, subsidiaries, branches or correspondents in the Philippines
5 or abroad as its business operations would require.
6
7 The EBDC shall have a term of fifty (50) years from approval of this Act, which shall be
8 deemed renewed for an equal period unless sooner dissolved by law.
9
10 SECTION 6. Registration with the Securities and Exchange Commission. – The EDCB
11 through its Board shall register with the Securities Exchange Commission within one (1) year
12 from the constitution of the Board.
13
14 SECTION 7. Definition of Terms. –
15
16 "Energy projects" shall mean activities or projects relative to the exploration, extraction,
17 production, importation-exportation, processing, transportation, marketing, distribution,
18 utilization, conservation, stockpiling, or storage of all forms of energy products and resources.
19
20 "Energy resources utilization" shall include exploration, discovery, development,
21 extraction, utilization, refining, processing, transport, and marketing of all forms of energy
22 resources.
23
24 "Energy resources" means any substance, mineral or otherwise, which by itself or in
25 combination with other substance or after processing or refining or the application to it of
26 technology emanates, gives off, generates or causes, the emanation or generation of heat or power
27 or energy such as, but not limited to, petroleum or oil, coal, marsh gas, methane gas, geothermal
28 sources of heat and power, uranium and other minerals and fossils deposits.
29
30 SECTION 8. Purposes. — The EDCB shall have the following purposes:
31
32 a. To engage in the exploration, utilization, and development of energy resources
33 within the territorial jurisdiction of the Bangsamoro;
34 b. To engage in the transportation, storage, importation, exportation, refining, supply,
35 sale and distribution of crude oil, refined petroleum and petroleum based products,
36 whether imported or produced by local refineries;
37 c. To foster conditions relating to energy resources utilization conducive to a
38 balanced and sustainable growth of the economy; and
39 d. To undertake, by itself or otherwise, exploration, utilization, and development of
40 all energy resources of the territorial jurisdiction of the Bangsamoro, including
41 surveys and activities related thereto.
42
43 SECTION 9. Powers and Functions of the EDCB. — The EDCB shall have the following
44 powers and functions:
45
46 a. To adopt a code of by-laws to complement this charter;
47 b. To adopt and use a corporate seal which shall be judicially noticed;
48 c. To undertake, by itself or otherwise, exploration, utilization and development of all
49 energy resources within the in the territorial jurisdiction of the Bangsamoro
50 including surveys and activities related thereto;
51 d. To establish, maintain, control and direct in any area within the in the territorial
52 jurisdiction of the Bangsamoro as it may deem appropriate, and construct, install
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1 or maintain therein ports adequate for the use of vessels engaged in offshore oil
2 drilling operations, airports sufficient for direct service flights, telecommunications
3 center and ship-to-shore communications facilities, provide electric power and
4 fresh water supply, and perform such other acts as it may deem necessary and
5 advantageous or convenient to such operations;
6 e. To lease, at reasonable rates, to private domestic entities or persons within the in
7 the territorial jurisdiction of the Bangsamoro such portion or portions of the
8 petroleum and energy base, including facilities necessary for warehousing,
9 logistical centers for the storage of oil drilling and oil well supplies, fabrication of
10 off-shore drilling components and structures, mechanical repair facilities and the
11 like; spaces for the office, habitation and recreational requirements of personnel
12 directly engaged in offshore oil drilling and in manning the various logistical
13 support operations and their immediate dependents;
14 f. To undertake all other forms other energy resources exploitations;
15 g. To enter into contracts, with any domestic person or entity, National Governments
16 agencies, or foreign entities following the conditions under the Bangsamoro
17 Organic Law, and as allowed by the Parliament, for the undertaking of the varied
18 aspects of energy resources exploitation including the acquisition, by way of
19 purchase, lease or rent or other deferred payment arrangements of equipment
20 and/or raw materials and supplies, as well as for services connected therewith under
21 such terms and conditions as it may deem proper and reasonable;
22 h. To borrow money from local and foreign sources as may be necessary for its
23 operations;
24 i. Any provision of law to the contrary notwithstanding, including but not limited to
25 Section 13 of Act 1459, as amended, to invest its funds as it may deem proper and
26 necessary in any activity related to its purposes, including in any bonds or securities
27 issued and guaranteed by the Bangsamoro Government of the Philippines and the
28 EDCB may organize and incorporate subsidiary corporations for the purpose. The
29 capital stock of the corporations organized and incorporated by the EDCB may be
30 subscribed in whole or in part by the EDCB. Where the EDCB has a controlling
31 interest of not less than fifty-one percent (51%) of the issued and outstanding
32 capital stock of such subsidiaries, the securities, including shares of capital stock
33 issued by the subsidiaries and corporations owned and / or controlled by it, as well
34 as the sale of and / or subscription to such securities and shares if capital stock shall
35 be exempt from registration, licensing or other requirements imposed under the
36 existing laws, decree, order or regulation, Provided, that EDCB has registered with
37 the Securities and Exchange Commission.
38 j. To purchase, hold, alienate, mortgage, pledge or otherwise dispose of the shares of
39 the capital stock of, or any bond, security of other corporations or associations of
40 this or any other country; and while the owner of said stock, to exercise all the
41 rights of ownership, including the right to vote thereon;
42 k. To hold lands and acquire rights over mineral lands in excess of the areas permitted
43 to private corporations, associations and persons by statute;
44 l. To acquire assets, real or personal, or interests therein, and encumber or otherwise
45 dispose the same as it may deem proper and necessary in the conduct of its
46 business;
47 m. To determine its organizational structure, and the number and salaries of its officers
48 and employees;
49 n. To establish and maintain offices, branches, agencies, subsidiaries, correspondents
50 or other units within the territorial jurisdiction of the Bangsamoro as may be needed
51 by the EDCB and reorganize or abolish the same as it may deem proper;
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1 o. To exercise the right of eminent domain for properties within the territorial
2 jurisdiction of the Bangsamoro, as may be necessary for the purpose for which the
3 EDCB is created;
4 p. Subject to payment of the proper amount, to enter private lands for the purpose of
5 conducting geological or geophysical studies in connection with energy resources,
6 exploration and exploitation;
7 q. To acquire easement over public and private lands within the territorial jurisdiction
8 of the Bangsamoro necessary for the purpose of carrying out any work essential to
9 its energy resources operations and exploitation, subject to payment of just
10 compensation;
11 r. To establish and maintain technical educational system for the sustained
12 development of the necessary manpower to manage and operate its affairs and
13 business;
14 s. To perform such acts and exercise such functions as may be necessary for the
15 attainment of the purposes and objectives herein specified; and
16 t. To perform such other functions as may be provided by law.
17
18 SECTION 10. Governing Body. — The EDCB shall be governed by the EDCB Board of
19 Directors. The Board which shall be composed of nine (9) members, to be appointed by the Chief
20 Minister of the Bangsamoro Government of the Philippines. The members of the Board shall serve
21 for a term of three (3) years or until their successors shall have been appointed and qualified. In
22 case of any vacancy in the Board, the same shall be filled by the Chief Minister of the Bangsamoro
23 Government for the unexpired term.
24
25 No person shall be appointed as member of the Board unless he is a natural born citizen of
26 the Philippines, at least thirty-five (35) years of age and of established integrity. The Chairman of
27 the Board, who shall be the chief executive officer of the EDCB as well as the President of the
28 EDCB, shall be appointed by the Chief Minister of the Bangsamoro Government. The other
29 officers of the EDCB shall be appointed by the Board.
30
31 SECTION 11. Capital Stock. - The EDCB shall have a capital stock divided into ten
32 million no-par shares to be subscribed, paid for the voted as follows:
33
34 a. One million shares of stock shall be originally subscribed and paid for by the
35 Bangsamoro Government at an original issue value of P50 per share.
36 b. The remaining five million shares of stock may be subscribed and paid for by the
37 Bangsamoro Government or by Bangsamoro Government financial institutions at
38 values to be determined by the Board, but in no case less than the original issued
39 value above stated to the Bangsamoro Government.
40 c. The voting power pertaining to shares of stock subscribed by the government of
41 the Bangsamoro Government shall be vested in the Chief Minister or in such person
42 or persons as the Parliament may designate.
43 d. The voting power pertaining to shares of stock subscribed by the government
44 financial institutions shall be vested in them.

45 SECTION 12. Duties and Responsibilities of the Chairman of the Board and President
46 — The Chairman of the Board and the President, shall exercise such powers and perform such
47 duties as may be provided in the By-Laws or as may be vested in them by the Board.
48
49 SECTION 13. Issuance of Bonds. — The EDCB, upon the recommendation of the
50 Minister of Finance and Budget and Management and with the approval of the Chief Minister, is
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1 hereby authorized to issue bonds or other securities, which may be guaranteed by the Bangsamoro
2 Government, to finance its operations.
3
4 SECTION 14. General Counsel. – The EDCB shall establish a legal division which shall
5 perform the duties of General Counsel until the creation of the office of the Solicitor General of
6 the Bangsamoro Government. Any provision of law to the contrary notwithstanding, the General
7 Counsel and such personnel as may be necessary to assist him in the performance of his duties and
8 responsibilities shall receive such allowances as shall be fixed by the Board.
9
10 SECTION 15. Auditor. — Any provision of law to the contrary notwithstanding, the shall
11 appoint, subject to the approval of the Board, a representative who shall be the Auditor of the
12 EDCB and such personnel as may be necessary to assist said representative in the performance of
13 his duties. The salaries of the Auditor and his staff shall be approved by the Board. The Auditors
14 of corporations owned or controlled by the EDCB who shall be reputable accounting and auditing
15 firms shall be appointed by their respective boards of directors.
16
17 SECTION 16. Appointment, Control and Discipline of Personnel - Provision of law to the
18 contrary notwithstanding, the "Board", upon recommendation of the President of the EDCB, shall
19 appoint the officers and employees of the EDCB and its subsidiaries; fix their compensation,
20 allowances and benefits, their working hours and such other conditions of employment as it may
21 deem proper; grant them leaves of absence under such regulations as it may promulgate, discipline
22 and or remove them for cause; and establish and maintain a recruitment and merit system for the
23 EDCB and its affiliates and subsidiaries.
24
25 The organizational framework and staffing pattern of the EDCB shall be prescribed and
26 approved by the Chief Minister within sixty (60) days after the approval of this Act and the
27 authorized positions created therein shall be filled by regular appointments by the Chief Minister,
28 subject to existing Bangsamoro Government laws, rules and regulation.
29
30 SECTION 17. Loans. —The Bangsamoro Government, through the Chief Minister of the
31 Bangsamoro Government, or his duly authorized representative, may guarantee, absolutely and
32 unconditionally, as primary obligor, the payment of the loans, credits and indebtedness secured
33 by the EDCB or any of its affiliate corporations, for the amount which the Chief Minister of the
34 Bangsamoro Government has been authorized by its Parliament subject to limitations under the
35 Bangsamoro Organic Law, as well as the performance of all or any of the obligations undertaken
36 by the EDCB or its affiliate corporations in the territory of the Bangsamoro Government pursuant
37 to loan agreements entered into with foreign governments or any international financial
38 institutions or fund sources.
39
40 SECTION 18. Bangsamoro Government Financial Institutions Guarantees. — The
41 provision of any law to the contrary notwithstanding, any financial institution owned or controlled
42 by the Bangsamoro Government other than social insurance institutions, if any, are empowered to
43 guarantee acceptance credits, loans, transactions, undertakings, or obligations of any kind which
44 may be incurred by the EDCB, whether directly or indirectly, in favor of any person, association
45 or entity, whether domestic or foreign.
46
47 SECTION 19. Privileges and Incentives. — The EDCB shall be entitled to all the
48 incentives and privileges granted by existing laws within the within the territorial jurisdiction of
49 the Bangsamoro, to private enterprises engaged in energy operations.
50
51 Other Bangsamoro Government offices and other government-owned-or-controlled
52 corporations created under the Bangsamoro Government shall extend whatever assistance may be
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1 needed by the EDCB or any of its affiliates or subsidiaries, including the detail of its officials and
2 employees to the EDCB or any of its subsidiaries on full time or part-time basis under arrangement
3 satisfactory to the EDCB and its affiliates and subsidiaries and the other office or corporation
4 concerned. Said officials and employees, as well as the directors of the EDCB and its affiliates
5 and subsidiaries, may receive allowances and other emoluments notwithstanding the provision of
6 any law to the contrary.
7
8 The employees of the EDCB shall be entitled to all the retirement and insurance benefits
9 and leave privileges of a Bangsamoro Government employee. However, subsidiaries of the EDCB,
10 organized to undertake purely business ventures shall not, as a matter of right, be subject to the
11 provisions of the existing social insurance system laws covering Bangsamoro Government
12 employees, as well as to any law, executive orders and decrees relating to leave of absences,
13 retirement privileges, regular working hours, and other government employee benefits effective
14 within the territorial jurisdiction of the Bangsamoro.
15
16 SECTION 20. Appropriations. — For the initial capital requirements of the EDCB, the
17 sum of one-hundred fifty Million Pesos is hereby set aside and appropriated from the Bangsamoro
18 Appropriations, not otherwise appropriated.
19
20 SECTION 21. Reports. — The EDCB shall, submit a quarterly report to the Bangsamoro
21 Parliament, for the first five (5) years of operations, and within three months after the end of every
22 fiscal year, submit its annual report to the Chief Minister. It shall likewise submit such periodic or
23 other reports as may be required of it from time to time.
24
25 SECTION 22. Separability Clause. — Should any provision of this Decree be held
26 unconstitutional, no other provision hereof shall be affected from time to time.
27
28 SECTION 23. Effectivity. — This Act shall take effect immediately.
29
30
31 Approved,
32
33
34
35 HON. AHOD BALAWAG EBRAHIM
36 Chief Minister