Special Development Fund

Special Development Fund. The amount of Five Billion Pesos (P5,000,000,000.00) herein appropriated shall be used for the rebuilding, rehabilitation, and development of conflict-afflicted communities within the Bangsamoro Region, pursuant to Section 2, Article XIV of RA 11054, otherwise known as the Bangsamoro Organic Law. The Two percent (2%) of the total amount of annual Special Development Fund shall be used to support the operations of the new Special Development Fund – Program Management Office herein established.

Special Development Fund Board (SDF Board). There is hereby created a Board which shall be directly under the supervision of the Office of the Chief Minister (OCM). The Board shall be supported by a Program Management Office (SDF-PMO) with sufficient personnel headed by an Executive Director equivalent to a Director IV and assisted by a Deputy Executive Director equivalent to a Director III, who shall be appointed or designated by the Chief Minister. Their appointments shall be coterminous with the appointing authority. The Chief Minister shall prescribe the organizational structure and staffing pattern of the SDF-PMO, which shall be charged against the Miscellaneous Personnel Benefits Fund (MPBF) of the Bangsamoro Government. The Board shall be chaired by the Senior Minister; other members shall be determined by the Chief Minister. The Executive Director shall serve as the Vice-Chairperson of the Board. The SDF-PMO shall serve as the Secretariat of the Board. The Chief Minister, through the Board, shall set the policies and guidelines on the selection and implementation of special development fund programs, projects, and activities (SDF-PPA). The SDF-PMO shall be responsible for the planning and implementation of SDF-PPA and shall ensure that the same is consistent with the existing Bangsamoro Development Plan, subject to the review, deliberation, and evaluation by the SDF Board. It may call upon any ministry, bureau, office, agency, or instrumentality of the Bangsamoro Government for such assistance as it may need in the performance of its functions. The Chief Minister may reassign any personnel of the Bangsamoro Government to the SDF-PMO upon recommendation of the Head of the SDF-PMO. The Chief Minister, upon recommendation and submission of SDF-PPAs by the SDF Board, shall review and approve the SDF-PPA in accordance with the policies and guidelines issued on the selection and implementation thereof, and shall ensure the optimal use of funds toward high-impact, capital-intensive flagship projects.

Use and Release of Fund. The utilization of the fund shall be in accordance with the Bangsamoro Development Plan, as adopted and approved by the Bangsamoro Economic and Development Council and Bangsamoro Transition Authority. All releases from the SDF shall be made by the Ministry of Finance, and Budget and Management directly to the SDF-PMO upon submission of the Special Budget Request by the SDF-PMO and the necessary supporting documents such as, but not limited to, construction plans and program of works, and program implementation plan and guidelines. All unallotted SDF and unobligated SDF of the implementing ministries, offices, and agencies beginning January 1, 2026, shall revert to the Bangsamoro Treasury Office, and both shall be integrated to 2026 SDF available for the implementation of SDF-PPAs by the Special Development Fund – Program Management Office. The MFBM shall submit a report to the OCM for the remainder of all preceding fiscal year of SDF, both unallotted and unobligated. For this purpose, the MFBM may issue additional guidelines in the release of the SDF.

Additional Requirements for Implementation of Infrastructure Projects. The following requirements shall be observed in the implementation of infrastructure projects:

• The location, areas, or sites of all infrastructure projects are not included in the critical geo-hazard areas or no-build zones identified or certified by the MENRE or any competent authority;
• The standard of construction, rehabilitation, improvement, or repair of all infrastructure projects in all areas and zones are consistent with the rules determined by the MPW, which shall consider, among others, the structural strength and climate resilience required for infrastructure projects in all areas and zones;
• The planning and construction of all infrastructure projects to be implemented within NIPAS are done in a way that eliminates or minimizes the risk of biodiversity loss while the specifications thereon are in accordance with those determined by the MPW, in coordination with the MENRE or any competent authority., Major infrastructure projects may only be undertaken in said areas if intended to enhance biodiversity. The MPW shall consider climate data and risk assessment, and green building standards in the planning, designing, construction, and renovation of government building and facilities; and
• For purposes of transparency, the SDF-PMO shall undertake the publication of geo-tagged photos with stamps of the sites of all its completed and on-going infrastructure projects in its website. The status report of implementation of each project shall likewise be submitted quarterly to MFBM, BPDA, and OCM.

Flexibility and Adjustments in Project Implementation. The SDF-PMO shall be given maximum flexibility in the use of their cash allocations, provided that the authorized allotment for a specific purpose is not exceeded. This may include adjustments in the project's design due to changes in scope, location, beneficiaries, and implementation period. The adjustments are subject to the endorsement of the SDF Board and the approval of the Chief Minister.

Implementation Evaluation. The SDF Board shall perform an implementation evaluation of SDF-PPA, including those previously approved, for the contentious improvement of the performance of the SDF. It shall regularly submit a report on the results of the implementation evaluation to the Chief minister.

Reporting and Posting Requirements. The SDF-PMO shall submit quarterly reports on its financial and physical accomplishments within thirty (30) days after the end of every quarter, through the following:

• Submission of hardcopy to the MFBM;
• Submission of reports through electronic means; and
• Publication of SDF-PMO. The SDF-PMO shall send written notice when said reports have been submitted or posted on its website to the MFBM and other offices where the submission of reports is required under existing laws, rules, and regulations.

Transfer of Programs, Projects, Activities, and Relevant Reports and Documents. The current SDF-PMO shall immediately turn-over all projects, programs, funds, financial documents, reports, and all other relevant documents to the new SDF-PMO upon its organization. All programs and projects, whether completed or on-going, shall be reported immediately by the current SDF-PMO and the implementing ministries, offices, and agencies to the new SDF-PMO.