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ORDINANCE NO. 2024 – 094

AN ORDINANCE LOCALIZING THE IMPLEMENTATION OF RA 11960 OR THE OTOP PHILIPPINE ACT IN THE CITY OF NAGA, TO BE KNOWN AS OTOP ORDINANCE OF NAGA CITY, APPROPRIATING FUNDS THEREFORE, AND FOR OTHER PURPOSES:

Sponsored by Hon. Jose B. Perez Chairman, Committee on Trade, Investments, and Economic Enterprises

INTRODUCTORY NOTE

Republic Act 11960, otherwise known as an Act Institutionalizing the One Town One Product (OTOP) Program or the “OTOP Philippines Act”, declares that it is the policy of the State to develop a self-reliant and independent national economy effectively controlled by Filipinos through policies and programs that drive inclusive local economic activity and boost national economic growth.

The OTOP Philippines Program is one of the government’s stimulus programs that will encourage the growth of Micro, Small and Medium Enterprises (MSMEs) in the countryside through the development of indigenous raw materials, utilizing local skills and talents, and featuring local traditions and cultures across the country.

The primary objective is to encourage local government units to develop a self-reliant and independent economy effectively controlled by the local entrepreneurs through policies and programs that drive inclusive local economic activity and eventually boost national economic growth.

The State also recognizes the indispensable role of the private sector and private enterprises and the necessity to provide incentives to foster advancement among businesses, especially local micro, small and medium enterprises (MSMEs).

Towards this end, the State shall equip MSMEs to progressively improve product and service quality and to utilize new technologies to pursue innovation and diversification. The State shall likewise promote the preferential use of Filipino labor, domestic materials, and locally produced goods, and adopt measures to make them competitive. Furthermore, it shall provide adequate and effective support services for MSMEs to enable communities to determine, develop, and promote products and services that are rooted in their culture, community resources, creativity, connection, and competitive advantage.

BE IT ORDAINED by the Sangguniang Panlungsod of Naga, in session duly assembled, that:

Section 1. Title. This ordinance shall be known as “An Ordinance Localizing the Implementation of R.A. 11960, or the One Town, One Product (OTOP) Philippines Act, in the City of Naga, to be known as “OTOP Ordinance of Naga City.”

Section 2. Declaration of Policy. The City Government of Naga acknowledges the significance of the One Town, One Product (OTOP) Philippine Program in promoting entrepreneurship, sustainable livelihoods, and economic development. Specifically, this ordinance is being enacted to establish a framework for the efficient and effective implementation of the OTOP program within the jurisdiction of the City of Naga.

Section 3. Objectives. The objectives of this ordinance are as follows:

a. To promote and support local micro, small, and medium enterprises (MSMEs). b. To identify, develop, and showcase a unique and marketable product in the community. c. To enhance the competitiveness and market access of local products through various support mechanisms. d. To provide a package of assistance to MSMEs with viable products.

Section 4. Program Implementation. The following tasks or areas of endeavor and activities must be observed in the effective implementation of this Ordinance.

a. Identification of OTOP Products:
The City Government of Naga, in coordination with the Department of Trade and Industry (DTI) and other relevant agencies, shall identify and document potential OTOP products in the city. For this purpose, an OTOP Naga Development Committee shall be formed to assist in the identification and promotion of OTOP product/s.

b. Product Development: Create programs on product development such as product design assistance, packaging and labeling, technology upgrading, and other product enhancement assistance.

c. Capacity Building:

1. Conduct regular training programs, workshops, and seminars to enhance the skills and knowledge of local entrepreneurs involved in OTOP products.
2. Facilitate access to funding and financial support for OTOP entrepreneurs through partnerships with financial institutions. Aside from the local budget, DTI and LGU shall explore opportunities for Public-Private Partnerships (PPPs) that can also leverage additional resources and expertise in support of the OTOP program.

d. Market Development:

1. Establish local and regional marketing events to showcase and promote OTOP product/s.
2. Explore opportunities for online marketing and e-commerce platforms to widen the market reach of OTOP product/s.
3. Establish OTOP Hubs/Stores

e. Incentives and Support Mechanisms:

1. Provide incentives such as tax breaks, technical assistance, and marketing support for qualified OTOP enterprises.
2. Collaborate with national agencies and non-governmental organizations to source additional support for OTOP entrepreneurs.

f. Institutional Development:
Creation of OTOP Local Program Office (OTOP LPO) with a manpower complement that will manage and supervise the office with the guidance of the Naga City Investment Promotions and Tourism Office.

Section 5. Naga OTOP Development Committee. This Committee shall assume the main responsibility of directing the implementation of the provisions of this Ordinance. The Committee shall be composed of the following heads of the following offices/agencies and PO/NGO:

Chairman: Metro Naga Public Employment Service Office
Co-Chairman: DTI Camarines Sur Provincial Office Members: Metro Naga Chamber of Commerce and Industry Naga City People’s Council Culture & Arts Unit, CEPPIO City Health Office (Hygiene and Sanitation)
Secretariat: The Metro Naga Public Employment Service Office, through its existing Enterprise Development Center will serve as OTOP Naga Program Office by designating the appropriate Project Development Officers.

Section 6. Monitoring and Evaluation. To ensure the continued relevance and success of the program, there shall be periodic reviews to be conducted by the Naga OTOP Development Committee and establish a feedback mechanism for stakeholders to provide input and recommendations for improvement. There shall likewise be clear metrics for monitoring the success of the OTOP program. This metrics shall include but not be limited to, the number of MSMEs supported by the program, sales growth of the OTOP product/s.

Section 7. Funding. Funds shall be allocated from the City Annual Budget to support the implementation of the OTOP program, including but not limited to, the creation of OTOP LPO with manpower complement, OTOP Hubs/Stores, capacity building, marketing events, and incentives for OTOP entrepreneurs. Other sources may be obtained from donors and concerned government offices and agencies.

Section 8. Separability Clause. If any portion or provision of this Ordinance is declared unconstitutional or invalid, the rest of the herein provisions not so declared shall remain in force and effect.

Section 9. Repealing Clause. All Ordinances, Resolutions and Executive Orders or Issuances, or provisions thereof, which are inconsistent with any of the provisions hereof are hereby repealed, amended, or modified accordingly.

Section 10. Effectivity. This Ordinance shall take effect immediately upon its approval according to law.

ENACTED: August 20, 2024

WE HEREBY CERTIFY to the correctness of the foregoing ordinance.

GIL A. DE LA TORRE
Secretary to the
Sangguniang Panlungsod

CECILIA B. VELUZ-DE ASIS
City Vice Mayor
& Presiding Officer

APPROVED:

NELSON S. LEGACION
City Mayor