Economy And Patrimony

Section 1. Bangsamoro Economy and Social Justice

The Bangsamoro Government’s economic policies and programs shall be based on the principle of social justice.

Pursuant to this principle, the Bangsamoro Parliament shall legislate laws pertaining to the Bangsamoro economy and patrimony that are responsive to the needs of its people.

Sustainable Development

Section 2. Equitable and Sustainable Development

In order to protect and improve the quality of life of the inhabitants of the Bangsamoro, development in the Bangsamoro shall be carefully planned, taking into consideration the natural resources that are available for its use and for the use of future generations.

The Bangsamoro Government shall promote the effective use of economic resources and endeavor to attain economic development that shall facilitate growth and full employment, human development, and social justice.

The Bangsamoro Government shall also provide equitable opportunities for the development of constituent local government units and shall strengthen governance systems to ensure people’s participation.

Section 3. Comprehensive Framework for Sustainable Development

The Bangsamoro Government shall develop a comprehensive framework for sustainable development through the proper conservation, utilization and development of natural resources. Such framework shall guide the Bangsamoro Government in adopting programs and policies and establishing mechanisms that focus on the environment dimensions of social and economic interventions. It shall include measures for the75 reduction of vulnerability of women and marginalized groups to climate change and variability.

Section 4. Bangsamoro Sustainable Development Board

The Bangsamoro Parliament shall create a Bangsamoro Sustainable Development Board (BSDB), and intergovernmental body composed of representatives from the Bangsamoro Government and the Central Government. The Board shall ensure the harmonization of environmental and developmental plans, as well as formulate common environmental objectives.

Funding support for the Board shall be included in the annual budget of the Bangsamoro Government. However, if there are revenues collected from the exploration, development and utilization of all natural resources within the Bangsamoro, a certain percentage of such revenues shall be allocated for the operation of the Board, as may be provided in a law to be passed by the Bangsamoro Parliament.

Section 5. Bangsamoro Development Plan

The Bangsamoro Government shall formulate its development plans taking into consideration the Bangsamoro people’s unique needs and aspirations and consistent with national development goals. The plan shall also consider the revenue generation efforts needed for the post-conflict rehabilitation, reconstruction and development of its territory.

The plan shall include the promotion of growth and full employment, human development, and address social and economic inequities that have resulted from decades of neglect, historical injustice, poverty and inequality.

For this purpose, the Bangsamoro Parliament shall create an economic planning office.

Section 6. Gender and Development

The Bangsamoro Government recognizes the role of women in governance and shall ensure the fundamental equality before the law of women and men. It shall guarantee full and direct participation of women in governance and in the development process and shall, further, ensure that women benefit equally in the implementation of development programs and projects.76

In the utilization of public funds, the Bangsamoro Government shall ensure that the needs of women and men are adequately addressed. For this purpose, at least 5% of the total budget appropriation of each ministry, office, and constituent local government unit of the Bangsamoro shall be set aside for gender-responsive programs, in accordance with a gender and development (GAD) plan.

In the same way, 5-30% of the official development funds received by the Bangsamoro shall be set aside to complement said GAD budget allocation.

The Bangsamoro Government shall establish a mechanism for consultation with women and local communities to further ensure the allocation and proper utilization of said funds. It shall identify and implement special development programs and laws for women.

Section 7. Participation of the Bangsamoro in National Development Planning

The preceding section notwithstanding, and in order to ensure that the Bangsamoro development plans are reflected in the national development plans, the Bangsamoro shall participate in national development planning. The Chief Minister shall be a full-fledged member of the Board of the NEDA.

Natural Resources

Section 8. Natural Resources, Nature Reserves and Protected Areas

The Bangsamoro Government shall have the authority, power, and right to explore, develop and utilize the natural resources, including surface and sub-surface rights, inland waters, coastal waters, and renewable and non-renewable resources in the Bangsamoro.

The protection, conservation, rehabilitation, and development of forests, coastal, and marine resources, including the adoption of programs and projects to ensure the maintenance of ecological balance, shall be given priority.77

The Bangsamoro Government shall also have the power to declare nature reserves and aquatic parks, forests, watershed reservations and other protected areas in the Bangsamoro, amending for this purpose the following laws, among others:

• Republic Act No. 7586, otherwise known as the National Integrated Protected Areas System (NIPAS) Act of 1992, as amended by Republic Act No. 10629
• Presidential Decree (PD) No. 705, Revising PD 389 or the Forestry Code of the Philippines
• PD No. 1515 Vesting Jurisdiction and Control over Watershed Reservations in the Ministry of Energy and for other Purposes
• PD 87, Amending PD No. 8, An Act to Promote the Discovery and Production of Indigenous Petroleum and Appropriate Funds
• Republic Act No. 7942, Philippine Mining Act of 1995.

The Bangsamoro Parliament shall pass a law on protected areas, regarding the procedure for the declaration, and the management of those that are so declared, and the role of the Bangsamoro Government and other stakeholders in the process.

Section 9. Transfer of Existing Nature Reserves and Protected Areas

The management and protection of nature reserves and aquatic parks, forests, watershed reservations, and other protected areas in the Bangsamoro territory that have already been defined by and under the authority of the Central Government shall be transferred to the Bangsamoro Government.

Within three months from the establishment of the Bangsamoro Transition Authority, the Bangsamoro Government and Department of Environment and Natural Resources (DENR) as well as other relevant government agencies shall start the process of transferring these areas including the conduct of surveys of all affected areas and the78 planning and transition for each and every protected area. Such process shall be completed within a period not exceeding two years.

Section 10. Exploration, Development, and Utilization of Fossil Fuels and Uranium

The Bangsamoro Government and the Central Government shall jointly exercise the power to grant rights, privileges and concessions over the exploration, development and utilization of fossil fuels (petroleum, natural gas, and coal) and uranium in the Bangsamoro.

The Central Government, through the Department of Energy (DOE), and the Bangsamoro Government shall adopt a competitive and transparent process for the grant of rights, privileges and concessions in the exploration, development and utilization of fossil fuels and uranium.

The DOE and the Bangsamoro Government will identify and select prospective contract areas to be offered for exploration and development. A qualified Filipino citizen who is a bona fide resident of the Bangsamoro will receive a rating higher than other proponents during the evaluation process. The award of the service contract shall be made jointly by the DOE and the Bangsamoro Government.

Section 11. Preferential Rights of Bona Fide Inhabitants of the Bangsamoro

Qualified citizens who are bona fide inhabitants of the Bangsamoro shall have preferential rights over the exploration, development, and utilization of natural resources, including fossil fuels (petroleum, natural gas, and coal) and uranium, within the Bangsamoro territory. Existing rights over the exploration, development and utilization of natural resources shall be respected until the expiration of the corresponding leases, permits, franchises or concessions, unless legally terminated.

Section 12. Rights of Indigenous Peoples Over Natural Resources

The Bangsamoro Parliament shall enact a law recognizing the rights of indigenous peoples in the Bangsamoro in relation to natural resources within the territories covered by a native title, including their share in revenues, as provided in this Basic Law, and79 preferential rights in the exploration, development and utilization of such natural resources within their area.

The right of indigenous peoples to free and prior informed consent in relation to development initiatives shall be respected.

Section 13. Mines and Mineral Resources

The Bangsamoro Government shall have authority and jurisdiction over the exploration, development, and utilization of mines and minerals in its territory. Permits and licenses and the granting of contracts for this purpose shall be within the powers of the Bangsamoro Government.

Section 14. Financial and Technical Assistance Agreements

The applications for financial and technical assistance agreements (FTAAs) covering mineral resources within the Bangsamoro shall be commenced at and recommended by the Bangsamoro Government to the President.

The manner by which the Bangsamoro Government shall make the recommendation shall be in accordance with the mining policy that shall be adopted by the Bangsamoro Parliament.

Section 15. Regulation of Small-Scale Mining

Small-scale mining shall be regulated by the Bangsamoro Government to the end that the ecological balance, safety and health, and the interests of the affected communities, the miners, the indigenous peoples, and the local government units of the place where such operations are conducted are duly protected and safeguarded.

Section 16. Legislating Benefits, Compensation for Victims and Communities Adversely Affected by Mining and Other Activities that Harness Natural Resources

The Bangsamoro Parliament shall enact laws for the benefit and welfare of the inhabitants injured, harmed or adversely affected by the harnessing of natural and mineral resources in the Bangsamoro. Such laws may include payment of just compensation to and relocation of the people and rehabilitation of the areas adversely affected by the harnessing of natural and mineral resources mentioned above.80

The Bangsamoro Parliament may, by law, require the persons, natural or juridical, responsible for causing the harm or injury mentioned above to bear the costs of compensation, relocation and rehabilitation mentioned above wholly or partially.

Section 17. Bangsamoro Mining Policy

Policies on mining and other extractive industries shall be drawn up by the Bangsamoro Parliament in accordance with its Comprehensive Sustainable Development Plan, as well as its over-all medium-term and long-term Bangsamoro Development Plan.