(Updated as of 12 December 2018)

NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY (NEDA)

– PHILIPPINE RECLAMATION AUTHORITY (PRA)
JOINT ORDER NO. ____- 2018

2018 REVISED IMPLEMENTING RULES AND REGULATIONS (IRR)

OF EXECUTIVE ORDER (EO) NO. 146 DATED 13 NOVEMBER 2013,
DELEGATING TO THE NATIONAL ECONOMIC AND
DEVELOPMENT AUTHORITY (NEDA) BOARD THE POWER OF
THE PRESIDENT TO APPROVE RECLAMATION PROJECTS

Pursuant to Section 6 of EO 146, these IRR are hereby issued to prescribe the requirements
for the approval of reclamation projects, and reclamation components of
development/infrastructure projects.

Section 1. Scope and Application. These IRR shall apply to all reclamation projects, and
reclamation components of development/infrastructure projects, and shall specify and
enumerate the requirements and procedures for the processing, review, evaluation and
approval thereof by the NEDA Board.

Section 2. Coverage. These IRR shall cover the following:

2.1. Philippine Reclamation Authority (PRA). Reclamation projects initiated/proposed by

the PRA;

2.2. Provinces or Cities. Reclamation projects, and/or reclamation components of

development/infrastructure projects, initiated by the city or provincial government
units, provided that:

2.2.1. Wholly Government Funded Projects. These are wholly funded out of the city
or provincial government unit’s funds for public use, pursuant to Section 17
of Republic Act (RA) No. 7160, otherwise known as the Local Government
Code (LGC) of 1991; or,

2.2.2. Public-Private Partnership (PPP) Projects. These are funded through a

partnership with Private Sector/Entity through PPP in accordance with the
Philippine Build-Operate-Transfer (BOT) Law, Joint Venture (JV)
Guidelines, or such other applicable laws, rules and regulations;

2.3. National Government Agencies (NGAs) and Government-Owned and/or Controlled

Corporations (GOCCs). Reclamation projects, and/or reclamation components of
development/infrastructure projects, of NGAs and GOCCs, as defined under RA
10149, otherwise known as the GOCC Governance Act of 2011, mandated under
existing laws to reclaim, such as, but not limited to, the following agencies: Philippine
Ports Authority (PPA), Laguna Lake Development Authority (LLDA), Bases
Conversion and Development Authority (BCDA), Subic Bay Metropolitan Authority
(Updated as of 12 December 2018)

(SBMA), Philippine Veterans Investment Development Corporation (PHIVIDEC),

Department of Public Works and Highways (DPWH) and National Power Corporation
(NPC), provided that:

2.3.1. Wholly Government Funded Projects. These are wholly funded out of the
GOCC’s corporate funds / NGA’s budgetary allotment from the General
Appropriations Act (GAA), proceeds from loans, borrowings or similar
instruments; or,

2.3.2. PPP Projects. These are funded through a partnership with Private
Sector/Entity through PPP in accordance with the Philippine BOT Law, JV
Guidelines, or such other applicable laws, rules and regulations; and,

2.4 Private Sector/Entity. Reclamation projects, and/or reclamation components of

development/infrastructure projects, initiated by Private Sector/Entity through PRA,
city or provincial government units, GOCCs or NGAs authorized to reclaim land
through unsolicited PPP in accordance with the Philippine BOT Law, JV
Guidelines, or such other applicable laws, rules and regulations.

Section 3. Definition of Terms.

3.1. Area Clearance – document issued by the Secretary of Environment and Natural
Resources declaring an area suitable for reclamation as defined under
Department Administrative Order (DAO) 2018-14 of the Department of
Environment and Natural Resources (DENR)

3.2. Completed Staff Work (CSW) – output of the entire process of PRA review and
evaluation of the mandatory requirements provided under Section 4.1. as basis for
recommending reclamation proposals to the PRA Board for acceptance and
subsequent endorsement to the NEDA Board through a PRA Board resolution.

3.3 Detailed Feasibility Study (F/S) – for the purpose of the EO and these IRR, shall
refer to the preliminary assessment of likely project viability including, but not
limited to, project description or corresponding F/S requirement as specified in
the documentary requirements set forth herein, using primary data, plus result of
the hydrodynamic modelling, where applicable.

3.3.1 Full F/S – for the purpose of the EO and these IRR, shall refer to the full
analysis and evaluation of a project based on the Pre-F/S or similar
document with extensive analysis of the technical, financial, economic,
social, institutional and environmental merits, among others, of the
project, and more definite estimates of financial returns and economic
impact of project implementation. The Full F/S shall serve as a component
of the Detailed F/S.

3.3.2 Hydrodynamic Modelling – numerical computational modelling used to

simulate currents, water levels, sediment transport and salinity, to predict
and evaluate the impact of reclamation to the marine environment.

3.4. Environmental Compliance Certificate (ECC) – document issued by the DENR-

Environmental Management Bureau (EMB) certifying that based on the representations
of the proponent, the proposed project or undertaking will not cause significant
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environmental impact. The ECC also certifies that the proponent has complied with all
the requirements of the Environmental Impact Assessment (EIA) System and has
committed to implement its approved Environmental Management Plan. The ECC
contains specific measures and conditions that the Project Proponent has to undertake
before and during the operation of a project, and in some cases, during the project’s
abandonment phase to mitigate identified environmental impacts.

3.5. Joint Venture (JV) Guidelines – for the purpose of the EO and these IRR, shall
mean the NEDA-issued JV Guidelines, JV ordinances issued by concerned LGUs,
or whichever applicable JV Guidelines of government corporate entities (e.g., in
the exercise of their primary mandates to dispose of government assets or
properties).

3.6. Pre-Construction Documents – documents as may be required by PRA before the

issuance of the Notice to Proceed (NTP) for any reclamation activity.

3.7. Pre-F/S or Equivalent – for the purpose of the EO and these IRR, shall refer to
the preliminary assessment of likely project viability, including basic project
analysis with orders of magnitude for financial and economic analysis, and which
ensures a solid basis for undertaking a full F/S.

3.8. Private Sector/Entity – subject to constitutional limitations, any qualified individual

Filipino citizen of legal age and with capacity to contract; or a corporation, partnership,
association or cooperative organized or authorized for the purpose of engaging in
reclamation duly registered in accordance with law.

3.9. Project Description – document substantially describing the proposed reclamation

project, particularly the following: description of the reclamation site (area,
location, average depth, boundaries, immediate vicinity, distance from shoreline,
egress/ingress, available infrastructure facilities/utilities), reclamation
methodology (estimated volume and type of fill material, containment wall and
compaction and consolidation procedures/techniques), identified source of fill
material, estimated cost of reclamation, project financing/funding, and project
timetable, as well as those aspects of the project which will likely cause
environmental impact.

3.10. Project Documents – mandatory documentary requirements provided under

Section 4 of these IRR.

3.11. Reclamation – the deliberate process of converting foreshore land, submerged areas or
bodies of water into land by filling or other means using dredge fill and other suitable
materials for specific purpose/s.

3.12. Reclamation Component – refers to any reclamation activity as part of the civil works
of development/infrastructure projects such as roads, expressways, ports, airports,
power plants, and other similar projects consistent with the Philippine Development
Plan (PDP) and/or the Public Investment Program (PIP) or its equivalent local
plan/program, as well as of unsolicited projects contemplated under the Philippine
BOT Law and the JV Guidelines.

3.13. Reclamation Project – refers to a project involving the reclamation of a specific size of
land in a specific site.
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Section 4. Documentary Requirements

4.1. The minimum documentary requirements necessary for NEDA Board processing
and approval of reclamation projects, and/or reclamation components of
development/infrastructure projects, are summarized as follows:

CASE 1 CASE 2 CASE 3

Requirements for Less than At least five (5) but less At least
NEDA Board five (5) hectares than 25 hectares 25 hectares
Processing/
Approval (<5 ha) (5ha ≤ x < 25ha) (x ≥ 25ha)

1) Area Clearance Area Clearance

2) Detailed F/S:

Project Description Pre-F/S

a) Full F/S (or Full F/S if ICC-able project with reclamation Full F/S
component)

b) Hydrodynamic
N/A YES
Modelling

3) ECC YES

4) Regional Development
Council (RDC) YES
Endorsement

4.1.1. For reclamation components of development/infrastructure projects,

regardless of size, requirements 1 to 4 shall apply.
4.2. Reclamation projects, and/or reclamation components of
development/infrastructure projects, requiring NEDA Board – Investment
Coordination Committee (ICC) approval, shall comply with all documentary
requirements under existing ICC guidelines. Reclamation projects/components
shall also comply with the necessary documentary requirements under existing
relevant laws, guidelines, rules and regulations regardless of the mode of
procurement (e.g., Philippine BOT Law, JV Guidelines, Official Development
Assistance [ODA] Act).

4.3. In case of Joint Venture formed by virtue of ordinance of concerned LGU, the
minimum requirements shall be, but not limited to, the following:

4.3.1. Pre-F/S and/or Full F/S;

4.3.2. Draft Tender Documents (including, among others, Criteria for Selection
of JV Partner); and,
4.3.3. Draft JV Agreement (reflecting the terms and conditions in undertaking
the JV activity including, among others, the contractual obligations [e.g.,
contributions/shares] of the contracting parties and the ownership of the
JV activity, project, or property after the termination of the JV
Agreement).

4.4 The Legal Documents to be submitted by Private Sector/Entity, LGU, GOCC or NGA
shall include:

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4.4.1. Individual Filipino Citizen

i. Original or duly authenticated copy of Birth Certificate issued by the
Local Civil Registrar or Philippine Statistics Authority (PSA); and,
ii. Certificate of Naturalization or any other legally acceptable documents
to prove Filipino citizenship.

4.4.2 Partnership/Corporation/Association
i. Business Name Registration from the Department of Trade and
Industry (DTI) (for partnership); and/or,
ii. Certificate of Registration from the Securities and Exchange
Commission (SEC) including the Articles of Incorporation and By-
Laws.

4.4.3 LGUs/GOCCs/NGAs
i. Council’s / Board’s / Head of the Agency’s Resolution authorizing
LGU/GOCC/NGA to file an application with PRA; and,
ii. Certified true copy of the charter or other incorporation documents.

4.5. For roads, expressways, ports, airports, power plants, and other similar projects
requiring adjacent areas to be reclaimed (reclamation component), if the relevant F/S
of such projects already cover the reclamation aspect, such F/S shall be submitted to
PRA for review and validation together with the requirements of a Reclamation Project
Description. The F/S should contain, among others, relevant information/data
pertaining to the technical analysis of a proposed reclamation activity under
Sections 3.3 of these IRR.

4.6 All proposals for reclamation projects/components must be clearly be based on

existing development plans and master plans.

Section 5. Processing, Review and Evaluation, and Endorsement of Reclamation Proposals

5.1. Upon receipt of complete submission of the Project Documents in compliance with
the mandatory requirements set forth under Section 4 of these IRR, including
payment of reasonable filing and processing fees, as may be determined by PRA
Board, PRA shall issue a Notice of Full Compliance within three (3) working days.
Thereafter, PRA shall initiate the processing, review and evaluation of the
reclamation proposal and complete its CSW within a period of 60 working days.

5.2. Upon review of PRA, the results of the CSW shall be endorsed to the PRA Board
for its review and subsequent decision on whether or not to accept the proposed
reclamation activity and to the NEDA Board ICC as inputs to the project
appraisal, as may be necessary. The review and decision of the Board shall be
through a PRA Board resolution within 22 working days from receipt of the
endorsement of the results of the CSW from PRA. Subsequently, a Letter of
Acceptance or Non-Acceptance of the reclamation proposal shall be issued by the
Board Secretary within three (3) working days after confirmation of the PRA
Board resolution.

5.3. In case of acceptance, said PRA Board resolution shall contain the endorsement
of the proposed reclamation activity to the NEDA Board for approval. In case of

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non-acceptance, PRA shall inform the Project Proponent of the reasons/grounds

therefor.

Section 6. Approval of Reclamation Proposals

6.1. For development/infrastructure projects with reclamation components requiring the

review and evaluation of the NEDA Board ICC, the Project Documents shall be
submitted to PRA for completion of CSW in accordance with Section 5 of these
IRR and to the NEDA Board ICC for review/appraisal in accordance with existing
ICC Guidelines. The PRA Board shall endorse the reclamation component to the
NEDA Board, through a PRA Board Resolution, for approval. The NEDA Board
ICC shall simultaneously complete its dispositive action for the project and
endorse the reclamation component thereof to the NEDA Board for approval.

6.2. For reclamation projects/component not falling within the purview of the NEDA
Board ICC, the proposed reclamation activity shall be submitted to PRA for CSW in
accordance with Section 5 of these IRR.

6.3. All unsolicited reclamation proposals received and subsequently accepted by City
or Provincial government units, GOCCs or NGAs or other government entities
authorized by law to reclaim shall be submitted to either to the PRA for CSW
(Sections 6.1) or to both the PRA and the NEDA Board ICC (Section 6.2) as the
case may be without conducting any further bidding/award.

6.4. For reclamation project/component covering an area of less than five (5) hectares,
NEDA Board notation via ad referendum of such reclamation project/component
shall be sufficient to constitute an approval provided that such proposed
reclamation activity complies with the minimum requirements set forth in these
IRR.

6.5. Reclamation projects/components covered under EO 146 that were undertaken without
the required ECC and/or approval of the NEDA Board shall be considered illegal for
being entered into ultra vires and shall be forfeited to the state pursuant to Presidential
Decree (PD) No. 3-A.

Section 7. Competitive Public Bidding Process

7.1. Public Bidding / Competitive Selection (Solicited)

7.1.1. No reclamation project shall be bid out or awarded to any person/entity

without securing an approval from the NEDA Board in accordance with EO
146 and these Rules.

7.1.2. For reclamation projects wholly funded out of government funds, the
concerned government entities shall bid out such reclamation projects based
on the parameters approved by the NEDA Board and in accordance with RA
9184, otherwise known as the Government Procurement Reform Act
(GPRA).

7.1.3. For solicited reclamation projects under Sections 2.2.2 (Solicited PPP
Projects by Provinces/Cities) and 2.3.2 (Solicited PPP Projects by
NGAs/GOCCs), the concerned government entities shall bid out such
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reclamation projects based on the parameters approved by the NEDA

Board and in accordance with the Philippine BOT Law.

7.2. Competitive Challenge (Unsolicited)

Reclamation projects, and/or reclamation components of

development/infrastructure projects, identified under Section 2.4 (Unsolicited PPP
Projects initiated by the Private Sector), shall be subjected to a Competitive
Challenge process, based on the parameters approved by the NEDA Board and in
accordance with existing laws, rules and regulations, such as, but not limited to, the
Philippine BOT Law, JV Guidelines, and ODA Act.

7.3. In all cases, the Competitive Public Bidding shall be undertaken after the NEDA Board
approval in compliance with the competitive bidding requirement of EO 146.

7.4. All reclamation projects/components, upon completion, shall also comply with
government rules and regulations on disposition of reclaimed lands consistent with
existing jurisprudence on such matter.

7.5. After the Competitive Public Bidding, the relevant Implementing

Agreement/Reclamation Agreement shall be executed between PRA, the
LGU/GOCC/NGA and the Winning Proponent within eight (8) working days from
the issuance of Notice of Award.

7.6. Upon execution of the relevant Implementing Agreement/Reclamation Agreement,

PRA shall cause the submission of Pre-Construction Documents from the concerned
LGU/GOCC/NGA and the Winning Proponent within a minimum of five (5)
working days to a maximum reasonable period to be set by the PRA Board from
the date of execution of the Implementing Agreement/Reclamation Agreement.
PRA shall then issue a Notice of Full Compliance within three (3) calendar days
after receipt of the complete Pre-Construction Documents and thereafter review
the same for subsequent issuance of Notice to Proceed (NTP).

7.7. Upon receipt of the NTP by the LGU/GOCC/NGA and the Winning Proponent,
project implementation shall commence which shall be the sole responsibility of
concerned LGU, GOCC or NGA pursuant to the terms and conditions of the NEDA
Board approval and the Implementing Agreement/Reclamation Agreement.

Section 8. Reclamation Activities in Protected Areas.

Any reclamation activity in protected areas shall comply with existing environmental
laws, rules and regulations.

Section 9. Penalties/Sanctions.

In addition to the forfeiture of reclaimed lands under Section 6.4, any willful violation of
this Act shall be subject to administrative, civil or criminal liability in accordance with
existing laws. The act of knowingly awarding a reclamation project without prior NEDA

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Board approval may serve as a ground for violation of Section 3(g) of RA 3019, otherwise
known as the Anti-Graft and Corrupt Practices Act1.

Section 10. Transitory Provision.

This Order shall apply to all reclamation projects, including those initiated by LGUs,
NGAs or GOCCs, for which there are no contracts/agreements yet executed between the
government entity concerned and a private sector proponent prior to the effectivity of
this Order.

Section 11. Amendatory Provision.

Any further amendment to these IRR shall be jointly formulated by NEDA and PRA, in
consultation with DENR and other concerned government agencies with reclamation
mandates covered by these IRR.

Section 12. Repealing Clause.

Any other issuances, administrative orders, rules or regulations and/or parts thereof which are
inconsistent with the provisions of EO 146 and these IRR are hereby repealed or modified
accordingly.

Section 13. Separability Clause.

Should any of the provision of these IRR be declared invalid or unconstitutional, the other
provisions unaffected thereby shall remain valid and subsisting.

Section 14. Effectivity.

These IRR shall take effect 15 days after its complete publication in a newspaper of general
circulation or in the Official Gazette, and upon acknowledgement of a copy thereof by the
Office of the National Administrative Register (ONAR) and the UP Law Center.

1
Section 3(g) of RA 3019 states that the following shall be an unlawful act of any Public Officer: “Entering, on
behalf of the Government, into any contract or transaction manifestly and grossly disadvantageous to the same,
whether or not the public officer profited or will profit thereby.”

Section 9 of RA 3019 states the penalties for such violation: “Any public officer or private person committing
any of the unlawful acts or omissions enumerated in Sections 3, 4, 5 and 6 of this Act shall be punished with
imprisonment for not less than six years and one month nor more than fifteen years, perpetual
disqualification from public office, and confiscation or forfeiture in favor of the Government of any
prohibited interest and unexplained wealth manifestly out of proportion to his salary and other lawful
income.” (Emphasis supplied)
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