Building Smart Sustainable Communities: Key Legislative Updates in the Philippines

“At the same time we’re solving for climate change, we’re going to be building cities for three billion people.”

– Peter Calthrope, Architect & Urban Planner

(Par 1 of 2)

By Realttorney^®

Last April 4, 2025, I presented a topic during the CPD Event of the Real Estate Brokers Association of the Philippines (REBAP), entitled “Upcoming Legislation Impacting the Real Estate Industry in the Philippines.” I discussed the following: (1) Amendments to the REIT Act; (2) Tax on Non-Essential Goods; (3) Amendments to the Investors’ Lease Act; (4) the ARROW Act; and (5) the National Land Use Act.

Since the presentation was only for two hours, I did not discuss two pending legislations at the Senate of the Philippines that echoed my presentation way back on July 8, 2023, during the 2^nd National General Membership Meeting of REBAP in Tagaytay City. The Presentation was entitled, “Building Climate Resilient Human Settlements in the Philippines.”

Here are the important features of Senate Bill No. 65 and Senate Bill No. 298, and how they align with the Smarter City Framework published by the Department of Science and Technology (DOST) in 2024.

Senate Bill No. 65 (SBN 65) is authored by Senator Pia S. Cayetano. The short title of the bill is “Sustainable Cities and Communities Act”.

It aims to provide for the development of sustainable cities and communities in the country. The bill seeks to fulfill international obligations concerning Sustainable Development Goal 11 (SDG 11), which is to “make cities and human settlements inclusive, safe, resilient and sustainable”. It also aims to address the problems caused by rapid urban growth, such as urban poverty, inequality, homelessness, and informal settlements.

Policy Declaration: The State policy includes undertaking a program of urban land reform and housing to provide affordable, decent housing and basic services to underprivileged and homeless citizens. It also declares the policy to make cities safe and sustainable by ensuring access to safe and affordable housing and upgrading slum settlements. Furthermore, the State shall invest in public transport, create green public spaces, and improve urban planning and management in a way that is both participatory and inclusive.

Model for Sustainable Cities and Communities: SBN 65 outlines elements that sustainable cities or communities should possess during their transition. These include:

    *   Affordable housing.

    *   Accessible healthcare services and facilities.

    *   Accessible social services for all, especially the vulnerable & disadvantaged.

    *   Child care facilities, youth centers, and centers for senior citizens.

    *   Efficient, accessible, and affordable public transport systems.

    *   Alternative eco-friendly transport means like walking, biking, scooters, etc.

    *   Safe, accessible, and enjoyable areas of open space.

    *   Preference for the use of renewable resources.

   *   Waste management systems with recycling.

    * Energy-efficient homes.

    *   Strong community linkages for peace and order.

    *   Access to sports and cultural activities.

Indicators: According to SBN 65, the National Economic and Development Authority (NEDA) shall set targets based on indicators, taking into consideration SDG 11, to determine if a city or community has fully transitioned into a sustainable city or community. Examples of indicators include urban population living in slums, public transport access, sustainable urbanization rates, urban planning management with civil society participation, deaths and injuries from natural disasters, economic losses from natural disasters, solid waste management, urban air pollution, and integrated and local disaster risk management.

Support and Incentives: The bill mandates the Department of Interior and Local Government (DILG) to provide necessary technical assistance and resource augmentation to Local Government Units (LGUs) to assist them in the transition. NEDA and other related agencies are also mandated to provide support and input. The DILG shall develop a grant or cash award incentive scheme for LGUs that achieve their annual targets set by NEDA. Finally, LGUs are authorized to enter into contracts and receive grants to support efforts towards building a Smart City.

Meanwhile, Senate Bill No. 298 (SBN 98) is authored by Senator Alan Peter S. Cayetano. The title of this bill is “Smart Philippines Act”.

Its purpose is to establish a framework for a Smart Philippines, ensuring accessible and affordable internet for all. The bill aims to fast-track efforts towards the development of smart cities and municipalities to secure the future of Filipinos through technology and innovation, and to ensure digital inclusion for every Filipino.

Under SBN 298, the State recognizes science and technology as essential for national development and progress, prioritizing research, development, invention, innovation, and promoting smart technologies. It acknowledges the need for a “digital highway” for the digital economy. The State ensures all Filipinos have access to affordable, quality, and up-to-date information and communication technologies (ICTs), including reliable internet service, internet-enabled devices, online content, digital literacy training, technical support, and online privacy and cybersecurity.

Definition of Smart City/Municipality: A smart city or municipality is defined as a community where innovative, advanced, and trustworthy ICTs and related mechanisms are applied to: improve residents’ health and quality of life; increase efficiency and cost-effectiveness of civic operations; promote economic growth; and create a safer, more secure, sustainable, resilient, livable, and workable community. This involves gathering, analyzing, and communicating data from civic systems and infrastructure, making improvements based on data, coordinating with public and private entities (like utilities), and integrating measures for cybersecurity, privacy protection, impact measurement, and regional coordination.

Definition of Digital Inclusion: This new concept is defined as activities necessary to ensure all individuals have the opportunity to interconnect through access to affordable ICTs, including reliable internet, suitable devices, and engaging online content. It also includes access to digital literacy training, quality technical support, and assurance of online privacy and cybersecurity.

Another provision of SBN 298 that provides an added layer of bureaucracy is the creation of the Smart Philippines Council (SPC), which will be the overall policy-making and implementing body to monitor the implementation of the provisions of the proposed legislation. The SPC shall be composed of secretaries from key government agencies, including DICT (Chair), DILG (Co-Vice Chairperson), and DOST (Co-Vice Chairperson), along with other secretaries, LGU representatives, and private sector/academe representatives.

Smart Philippines Initiative: The SPC shall create a five-year strategic action plan within six months upon the effectivity of the law, focusing on modernizing digital infrastructure, health, transportation, education, finance, and urban development. The initiative will prioritize activities such as identifying barriers to digital inclusion, studying subsidies for LGUs for broadband, studying broadband affordability, demonstrating scalable smart city technologies, encouraging data sharing and best practices, promoting industry standards and interoperability, promoting a skilled workforce and inclusion, fostering the smart city technology industry, encouraging adoption, and safeguarding cybersecurity and privacy. This initiative should complement existing DICT programs.

Smart Philippines Pilot Program: The SPC will provide technical support and expertise to LGUs. A pilot program will be established to assist financially unable LGUs from different regions with funding for modernization programs.

Smart Philippines Resource Guide: Based on the Initiative, the SPC will create a guide to assist LGUs in developing their own smart programs, which will be available online for free. It is worth noting that the City of General Trias in the Province of Cavite passed City Ordinance No. 21-11 (General) entitled “General Trial Smart City Digital Governance Program – Citizens Registration”. At least, we know of one LGU that is seriously considering the great benefits of establishing a smart city in its jurisdiction.

Finally, the DICT, in coordination with DILG and DOST, is the primary agency responsible for implementation, ensuring mandates are fulfilled and cooperation or partnerships are established. A tall order, especially when you read that most of the provisions are motherhood statements that may have difficulties during the implementation, despite the fact of an initial funding of PhP 100 million from the National Government.

Both Senate Bill No. 65 and Senate Bill No. 298 are broadly aligned with the DOST Framework for Smart Sustainable Communities and Cities. When read together, the overarching goal of both Senate Bills and the DOST Framework is the development of cities and communities that improve the quality of life for residents.

The DOST Framework specifically uses the term “Smart Sustainable Communities and Cities”, integrating both concepts, similar to how SBN 65 focuses on sustainability and SBN 298 on “smartness”, which includes sustainability in its definition.

Leveraging Technology. The DOST Framework promotes leveraging science, technology, and innovation and highlights smart city solutions and data infrastructure. SBN 298 is centered around establishing a framework for a “Smart Philippines” by applying innovative technologies, particularly ICTs, and emphasizing digital infrastructure and data utilization. While SBN 65 is more focused on social and environmental aspects of sustainability, the implementation of many of its goals (like improving public transport or waste management) can be significantly enhanced by smart technologies, which aligns with the DOST Framework’s approach.

Data Importance. The DOST Framework strongly emphasizes the importance of data infrastructure, data integration, analysis, utilization for decision-making, and protection. SBN 298’s definition of a smart city also highlights gathering, analyzing, and using data and includes safeguarding privacy and data management as a priority, directly aligning with the DOST’s view of data as the “new ‘oil’”. SBN 65’s reliance on indicators also necessitates data collection and analysis.

Multi-stakeholder Approach: The DOST Framework identifies the roles of LGUs, industries, SMEs, academe, and DOST in achieving smart and sustainable cities. To reiterate, SBN 298 creates the Smart Philippines Council comprising representatives from various government agencies, LGUs, the private sector, and academe, and explicitly mandates collaboration with public and private stakeholders. Meanwhile, SBN 65 involves national government agencies supporting LGUs.

Key Sectors: The priority areas and themes covered in both bills largely overlap with those identified in the DOST Framework’s desired outcomes and indicators. Examples include:

• Health and Living Recreation (DOST) aligns with Accessible Healthcare Services and Facilities (SBN 65) and Health Modernization (SBN 298).
• Transportation and Mobility (DOST) aligns with Efficient, Accessible, and Affordable Public Transport and Alternative Means (SBN 65) and Transportation Modernization (SBN 298).
• Environmental Quality (DOST) aligns with Waste Management, Renewable Resources (SBN 65), and Environmental resources – DENR is part of SPC (SBN 298).
• Economic Opportunity (DOST) aligns with Economic Development (DOST desired outcome) and Finance modernization seen in SBN 298. While SBN 65 mentions employment opportunities.
• Governance (DOST) aligns with Government Efficiency (DOST desired outcome) and Urban planning management (an SBN 65 indicator).
• Safety, Security and Resilience (DOST) aligns with Strong Community Linkages for Peace and Order (SBN 65) and Public Safety (DOST desired outcome). SBN 65 indicators cover natural disasters and safe spaces. Meanwhile, SBN 298 includes creating a safer and more secure community as part of the smart city definition.
• Urban Planning (DOST) aligns with improving urban planning and management (SBN 65) and Urban development modernization (SBN 298).
• Education (DOST) aligns with Education modernization (SBN 298).

Role of DOST: The DOST Framework is led by DOST-PCIEERD and DOST Regional Offices. SBN 298 explicitly includes the DOST Secretary as a Co-Vice Chairperson of the Smart Philippines Council and designates DOST as one of the key agencies coordinating the implementation of the Act. This inclusion indicates that SBN 298 is intended to align with and potentially build upon DOST’s efforts and expertise in science, technology, and innovation for smart cities. SBN 65 doesn’t explicitly mention DOST, but its reliance on NEDA and DILG for implementation could involve consultation with agencies like DOST that have relevant expertise.

Framework Development: The DOST Framework serves as a guide. SBN 298 explicitly aims to establish a national framework (“Smart Philippines Framework”) and a strategic action plan (“Smart Philippines Initiative”), which aligns with the need for a structured approach implied by the DOST Framework.

In summary, both Senate Bills align with the DOST Smarter City Framework by addressing the development of sustainable and/or smart cities and communities in the Philippines, emphasizing improved services, quality of life, and the involvement of multiple stakeholders. SBN 298 shows particularly strong alignment with the “Smart” aspects through its focus on technology, digital infrastructure, and data, and includes DOST in its governing body. SBN 65 strongly aligns with the “Sustainable” aspects and the integration of UN SDGs highlighted in the DOST Framework.

They represent legislative efforts to create the policy and structural support necessary to realize the vision outlined in the DOST Framework.

In the next part of the series, we will discuss the potential implications of these bills on the real estate industry, considering the benefits, challenges, and financial implications for various stakeholders. We shall also discuss whether these two bills are in alignment with the DOST Smarter Sustainable Communities and Cities Framework that was published in 2024.

For now, tell us what you think about creating Smart Cities in the Philippines, and are you willing to live in one?

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Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs in Real Estate. He is committed to helping new and veteran real estate service practitioners be well-informed of the latest laws, rules, regulations, and information relevant to the real estate service sector.