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House approves institutionalizing industry cluster-based programs and

projects thru inter-local cooperation among LGUs


The House of Representatives has approved on third and final reading a measure that will institutionalize
nationwide industry cluster-based programs and projects thru inter-local cooperation and peoples participation.
House Bill !"#$ also %nown as &eoples &articipation in 'ndustry (luster-Based &rograms and &rojects
)ct$ was sponsored by the House (ommittee on &eoples &articipation chaired by Rep. Benjamin )silo *+
st
,istrict$ -anila..
The measure$ which substituted House Bill #+/ authored by Rep. (inchona (ruz-0onzales *&arty 1ist$
('B)(.$ aims to institutionalize the industry cluster approach as a means of pursuing the local economic
development through the inter-local cooperation *'1(. among 1ocal 0overnment 2nits *102s..
(ruz-0onzales said 'nter-1ocal (ooperation *'1(. refers to an alliance of 102s that are geographically
adjacent to each other within a province or two adjacent provinces to integrate local production forces li%e
manpower$ materials$ money$ machine$ and methods to create a concerted effort to push their development and
jointly provide programs$ projects$ and services.
34hile industry cluster refers to geographic concentration of competing but collaborating and independent
businesses within a value chain of a broadly defined industry from suppliers to end products$ including support
services and specialized infrastructure and facilities$ industry cluster-based programs and projects are those that
promote convergence$ job generation$ and investment promotion through production of competitive products and
services to achieve inclusive growth$5 (ruz-0onzales said.
3The measure shall provide an effective mechanism to strengthen the participation of the people in
community development through institutionalized industry cluster-based programs and projects$5 (ruz-0onzales
said.
The bill will also promote unity among the people of the member 102s by encouraging them to wor%
together in pursuing industry cluster-based programs and projects$ (ruz-0onzales added.
2nder the measure$ the '1( on industry cluster-based programs and projects is institutionalized under the
supervision of the ,epartment of the 'nterior and 1ocal 0overnment *,'10. and the ,epartment of Trade and
'ndustry *,T'..
The ,T'$ in consultation with the local sanggunian$ shall accredit civil society and business organizations
upon their compliance of re6uired documents such as$ )rticles of 'ncorporation and bylaws and certificate of
registration with a government registering agency$ among others.
The civil society and business organization shall provide the appropriate e7pertise$ facilities and financial
support to ensure the success of industry cluster-based programs and projects.
The 102s shall provide a mechanism that will encourage and facilitate the participation of accredited civil
society and business organizations in all aspects of development wor% in industry cluster-based programs and
projects to enliven the sense of community acceptance and ownership of products$ and to ensure the responsiveness
of these programs to the needs of the community.
The 102s shall be organized into clusters based on adjacent or contiguous location$ commonality in
interests$ needs and development re6uirements$ agreement in the identification of products and services that shall
be developed$ willingness to commit and share local resources$ facilities and services for local development$ and
economic viability.
NR # 3515
JULY 2, 2014
8ach industry cluster$ to be composed of two or more 102s$ shall create an 'ndustry (luster -anagement
Board *'(-B.$ which shall be the primary body that will prepare$ integrate$ coordinate$ supervise and control
industry cluster-based plans$ programs$ projects and activities of the cluster.
)n 'ndustry (luster -anagement 9ffice *'(-9. in each cluster shall be established to house the &roject
and -anagement ,evelopment :taff *&-,:. that will be determined by the '(-B.
The '(-B shall be headed by a chairperson who shall be one of the 1(8s of the member-102s$ elected
annually by a majority of the '(-B members.
The '(-B shall present its formulated industry plan to the respective local sanggunians$ for an approved
resolution$ which will be implemented within si7ty days after its adoption.
8very industry cluster shall create a (luster )dvisory (ommittee *()(.$ which shall be the primary body
to give advice$ technical assistance and policy guidance to the '(-B especially in the formulation of cluster plans
and programs and in enterprise and livelihood development.
The committee shall be composed of representatives from the ,epartment of )griculture *,).$ the
,epartment of 1abor and 8mployment-Technical 8ducation and :%ills ,evelopment )uthority *,918-T8:,).$
the ,epartment of :cience and Technology *,9:T.$ the ,epartment of Tourism *,9T.$ the ;ational 8conomic
and ,evelopment )uthority *;8,).$ financing institutions and other concerned agencies as identified by the
()($ including representatives from accredited civil society and business organizations as members.
The measure also provides incentives to industry cluster entrepreneurs in terms of preferential access to
low-interest government credit and priority in government-initiated product mar%eting and promotion programs as
well as ta7 e7emptions.
8ach industry cluster shall establish a (luster (ommon <und$ which shall comprise of the amount of
contribution agreed upon by the members of the industry cluster through cluster resolution and any local or foreign
donation obtained by the '(-B to finance industry cluster-based programs and projects.
The '(-B shall be authorized to directly utilize a portion of the income generated from fees and other
collections in the performance of its functions to defray operating e7penses.
'n carrying out its functions$ the '(-B shall consult$ coordinate and wor% closely with the 102s$ the ,)$
the ,'10$ the ,918-T8:,)$ the ,T'$ the ,9:T$ the ,9T$ the ;8,)$ the (ommission on Higher 8ducation
*(H8,.$ and accredited civil society and business organizations operating within the cluster.
The respective offices of the :ecretaries of the ,T' and the ,'10$ in coordination with the regional offices
and accredited civil society and business organizations$ shall monitor and evaluate the implementation of industry
cluster-based programs and projects and recommend necessary measures to support cluster-related activities.
The :ecretary of Trade and 'ndustry$ in coordination with the :ecretary of the 'nterior and 1ocal
0overnment$ shall issue the rules and regulations necessary for the effective implementation of the )ct.
)side from (ruz-0onzales and )silo$ other authors are Reps. ;oel =illanueva *"
rd
,istrict$ Tarlac.$ -aria
1eonor 0erona-Robredo *"
rd
,istrict$ (amarines :ur.$ 8lisa >ho *#
nd
,istrict$ -asbate.$ (resente &aez *&arty 1ist$
(99& ;)T((9.$ and (atalina 1eonen-&izarro *&arty 1ist$ )B:.$ -a. 1ourdes )costa-)lba *+
st
,istrict$
Bu%idnon.$ :amuel &agdilao *&arty 1ist$ )(T-(':.$ 8mmi ,e ?esus *&arty 1ist$ 0abriela.$ 4inston (astelo *#
nd
,istrict$ @uezon (ity. and 1ani -ercado-Revilla *#
nd
,istrict$ (avite..
(ruz-0onzales and other co-authors are confident that the measure shall be given priority at the :enate.
*"!. jc

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