APPROPRIATING FUNDS FOR INFRASTRUCTURE DEVELOPMENT, SYNCHRONIZING THE SAME WITH PREVIOUS PUBLIC WORKS, APPROPRIATIONS.

• Number: Presidential Decree No. 1342
• Sections: 19

Preamble

WHEREAS, Presidential Decree Nos. 759 and 1062 provide appropriations for improvement, construction and rehabilitation of infrastructure projects designed to further accelerate socio-economic development;

WHEREAS, there is a need to increase the appropriations of some on-going and previously authorized projects to ensure their completion in view of increased construction costs brought about by circumstances beyond the control of the government, and changes in technical designs and requirements;

WHEREAS, there is also a need to provide appropriations for new projects in support of priority programs of the government;

WHEREAS, it is necessary to provide adequate appropriations to cover the local counterpart fund requirements of on-going and proposed foreign-financed projects in view of the country's increasing capability to absorb foreign assistance as demonstrated by the various loans and aids extended to government projects;

WHEREAS, there is a need to appropriate adequate funds for these projects that will cover their total costs up to completion to assure continuity of their implementation and to enable the implementing agencies to enter into contract for a complete project or utile part thereof;

WHEREAS, in order to make more effective the National Development Program, there is a need to provide sustained financial support to the Infrastructure Program;

NOW, THEREFORE, I, FERDINAND E. MARCOS , President of the Philippines, by virtue of the powers vested in me by the Constitution, and for sustained development of the country through complementary infrastructure facilities, do hereby decree and order as follows:

1. For the construction, improvement, rehabilitation, reconstruction, including project preparation and the pur­chase of necessary construction materials and supplies of the projects listed/summarized hereunder:

(a)

Dagat-Diagatan Lagoon

P230,000,000

Total for Special Projects

P230,000,000

Total for Section I

P17,010,000,000

Section 1 Capital Development Projects.

SECTION 1. Capital Development Projects. —The following sums or so much thereof as may be necessary, are hereby appropriated, out of the general funds in the National Treasury not otherwise appropriated, from the proceeds of bond issues and/or loans from local or foreign financial institutions, to implement projects pertaining to the program of capital improvements of the Administration, subject to the provisions hereinafter set forth, for the purpose mentioned hereunder:

TITLE A —TRANSPORTATION AND COMMUNICATION

1. For the construction, improvement, rehabilitation, reconstruction, completion, including project preparation and the purchase of necessary construction materials and supplies of the projects listed/summarized hereunder:

[Pls. See Table Vol. 74, Official Gazette No. 33, p. 6311, August 14, 1978]

Section 2 Miscellaneous Projects.

SEC. 2. Miscellaneous Projects. —The following sums, or 80 much thereof as may be necessary are hereby appropriated out of the general funds in the National Treasury not otherwise appropriated, subject to the provisions hereinafter set forth for the purpose mentioned hereunder:

(a) For the prosecution of pre-investment studies, regional planning, project pre-feasibility and feasibility studies, preliminary engineering, and other activities necessary prior to actual project implementation, including administrative services and training directly identified with the studies and purchase of equipment, materials, and supplies as may be authorized by the National Economic and Development Authority upon recommendation of department heads concerned ..............P100,000,000

(b) For the prosecution of necessary detailed engineering of projects authorized in this and other public works measures, including detailed surveys, soil investigation, detailed designs, preparation of specifications and contract documents, and other related activities that are necessary prior to actual project construction, as may be authorized by the National Economic and Development Authority upon recommendation of department heads concerned P50,000,000 (c) For the acquisition of necessary right-of-way for the implementation of projects authorized in this and other public works measures as may be authorized by the National Economic and Development Authority upon recommendation of department heads concerned ........................ P200,000,000

(d) For the construction of warehouses, Grains Center and related facilities necessary for the implementation of programs of the National Grains Authority and other government agencies ................... P100,OOO,OOO

Total of Section 2 P450,000,000

Special Provisions

Section 3 Program of Work Required Before Prosecuting Public Works.

SEC. 3. Program of Work Required Before Prosecuting Public Works. —Before prosecuting any public works project, the district, city or project engineer concerned shall prepare a program of work for approval by the Department Head concerned for any project with an estimated costs of more than P750,000; by the Bureau Head concerned for any project with an estimated cost of more than P300,000, but not more than P750,000; by the Regional Director concerned for any project with an estimated cost of more than P100,000 but not more than P300,000; and by the District or City Engineer concerned for any project with an estimated cost of P100,000 or less.

No program of work for any project which requires special site investigation, survey, and construction plans shall be approved unless such plans are used as basis of the program.

For projects with an estimated cost of P200,000 or more, the PERT/CPM technique shall be used and a timescaled diagram of the activities as well as a monthly cash flow shall be made part of the program of work. The PERT CPM diagram shall be used by the agency concerned as a basis for, inter alia, monitoring the progress of work, making progress payments, and assessing claims for extra cost and time extension.

The program of work for any project shall not be amended, except in case of unforseen contingencies, or any change in field condition or other similar circumstances, in which case an amendment may be allowed, provided that such amendment will not result in a deficiency of the expected accomplishment in excess of fifteen per centum thereof and an extension of project duration beyond a reasonable period.

Section 4 Rental of Equipment.

SEC. 4. Rental of Equipment. —Rental of equipment shall not be deducted at the time of the release of funds for public works or even in anticipation of use of the equipment but shall be paid based on actual use when the appropriation so released is P25,000 or less. When the appropriation so released is more than P25,000 and use of rented equipment is anticipation, deduction for rental shall be made at the time of the release of funds but such deduction shall not exceed ten per centum of the released appropriation: Provided, That should the amount so deducted be in excess of actual rental, the balance of such deduction should be remitted immediately to the district or city engineering office concerned.

Section 5 Preference of Local Labor.

SEC. 5. Preference of Local Labor. —In the execution and construction of any public works projects, the labor requirements shall be filled by laborers from the sitio, Barangay, Poblacion or municipality where the project is being undertaken. However, in case of skilled labor, it may be procured elsewhere within the province where the project is located; and in the case of specialized skilled labor, it may be procured outside the province where the project is located.

Section 6 Labor-Intensive Methods.

SEC. 6. Labor-Intensive Methods. —Whenever technically practicable and economically feasible, labor intensive methods shall be used in the prosecution of public works projects or portion thereof authorized in this Decree and other Public Works measures: Provided, That the structural integrity of the project is not impaired and its financial cost does not increase by more than ten per centum over that involved in alternative normal equipment-intensive construction technique as defined by the agency concerned: Provided, further, That the employment of workers for the labor-intensive operations will not unduly impair the labor requirements for agricultural production. Before any such project is prosecuted, the agency concerned shall prepare at least two alternative methods of construction based on the same plans and structural standards, one being labor-intensive together with a comparative evaluation of projected financial and economic costs, employment generation and technical quality; such comparison shall be the basis for selecting the most advantageous construction technique to be employed in terms of the criteria in the preceding sentence.

The selected construction technique shall be made part of and the basis of the program of work which shall be subject to approval by the officials concerned in accordance with the provisions of Section 3 of this Decree.

The purchase of hand tools and other work implements for undertaking public works projects by labor-intensive technique is authorized to be charged against the project funds not to exceed five per centum of the estimated project cost: Provided, That the agencies concerned shall undertake a continuing inventory of such hand tools and other work implements and make full economic use thereof in different projects.

The agencies concerned shall refer to the relevant studies of the Department of Public Works, Transportation and Communications and the International Labor Organization for the identification of project work items or activities suitable for labor-intensive methods of construction.

Section 7 Pre-construction Activities.

SEC. 7. Pre-construction Activities. —In the implementation of the work, a general plan of operations shall be prepared to indicate the methods and procedures to be followed. This plan will cover and organize all relevant fields of study, delineation of responsibilities for undertaking each phase, modifying all analytical procedures and resources to be required for conducting the studies: Provided, That the appropriation shall include administrative service directly identified with the studies and purchase of equipment, materials and supplies.

Section 8 Use of Private Consulting Services.

SEC. 8. Use of Private Consulting Services. —The Department Head concerned may hire the services of Filipino or associated Filipino and foreign consultants or consulting firms, whenever available, for a fee not exceeding three per centum of the Government Estimate, excluding site acquisition for the preparation or review of the project or plans and specifications devised by the bureau or office concerned; or for a fee not exceeding nine per centum of the Government Estimate, excluding site acquisition, to undertake the detailed design, including plans and specification; or for a fee not exceeding nine per centum of the Government Estimate, excluding site acquisition based on the approved Program of Work for construction supervision of the project: Provided, That the participation of Filipino consultants and/or government implementing agency concerned in any joint venture of foreign and local agencies shall be maximized.

Section 9 Purchase of Sites.

SEC. 9. Purchase of Sites. —Any appropriation herein authorized for construction of any project shall be understood to include the acquisition or purchase of sites whenever such acquisition or purchase is necessary for the prosecution of the project.

Section 10 Prosecution of Public Works Projects by Administration.

SEC. 10. Prosecution of Public Works Projects by Administration. — The provisions of any law, rules and regulations to the contrary notwithstanding and irrespective of the source of funds, all public works projects with a cost of P300,000 or less may be done by administration or force account by the bureau or agency concerned without benefit of public bidding subject to the provisions of Sections 3, 5 and 6 hereof. Public Works projects with a cost of more than P300,000 shall after public bidding be awarded by contract. If there are no acceptable bids for the project, or the bids are higher by more than fifteen per centum over the government estimate, the project may be prosecuted by administration by the bureau or agency concerned after securing the approval of the Department Head. In case of urgent necessity or emergency, projects costing more than P300,000 may be prosecuted by administration by the bureau or agency concerned, subject to favorable recommendation of the Department Head and approval by the President of the Philippines.

Section 11 Purchase of Materials and Supplies.

SEC. 11. Purchase of Materials and Supplies. —The Department Head concerned is authorized, in the interest of public service, subject to bidding and auditing requirements, to procure the necessary materials and supplies needed for construction, reconstruction, improvement, repair and/or maintenance of any public works project, regardless of the source, of funds: Provided, That when such materials and supplies are obtainable locally in the district, city or neighboring districts, the same may be procured by the District or City Engineer, without prior authority from the Department Head: Provided, further, That no surcharge shall be imposed for the service or procuring such materials and supplies: Provided furthermore, That the cost of such materials and supplies shall not exceed the estimated cost of such materials and supplies stated in the approved program of work as provided under Section 3 thereof.

Section 12 Engineering Administrative and other Overhead Expenses.

SEC. 12. Engineering Administrative and other Overhead Expenses. —The provisions of previous Public Works Decrees to the contrary notwithstanding, all appropriations or expenditures authorized herein and in previous Public Works Decrees shall be solely for project implementation which shall include engineering, administrative and other overhead expenses incidental thereto: Provided, That such expenditures shall be reflected in the individual project program of work as provided for in Section 3 of this Decree and shall not exceed five per centum of the amount actually released for the project; and Provided, further, That such expenditures shall exclude personnel and other services that are already provided with appropriations under the General Appropriations Acts.

Section 13 National Disbursing Funds.

SEC. 13. National Disbursing Funds. —Any provisions of existing law to the contrary notwithstanding, all funds appropriated under the provisions of this Decree shall, when released, be carried in the account book of the treas urers or special disbursing officers as national disbursing funds and all projects herein specified are classified as national projects; Provided, That provincial funds allocated as counterpart shall not be considered as national fund.

Section 14

SEC. 14. Interchangeability of Financing Methods — Upon recommendation of the Secretary of Finance and the National Economic and Development Authority, the President of the Philippines is authorized to modify the financing methods indicated in this and previous Public Works Measures, so as to enable the department head concerned to undertake the projects financed from general revenue with the proceeds from the sale of bonds and/or from loans.

Section 15 Other Financing Methods.

SEC. 15. Other Financing Methods. —The provisions of existing laws, executive orders, rules and regulations to the contrary notwithstanding, the proceeds from the payment for reparations goods may be used for financing projects authorized in this Decree and other public works measures, including the purchase of necessary equipment, construction, materials and supplies.

Section 16 Unreleased Appropriations.

SEC. 16. Unreleased Appropriations. —All unreleased appropriations in Presidential Decree Nos. 3 and 475 are hereby repealed.

Section 17 Reports.

SEC. 17. Reports. —The Department Head concerned shall submit an annual accomplishment report t o the President, copy of which shall be furnished the National Economic and Development Authority. Such report shall include the appropriations released as of the end of the fiscal year, the extent of work accomplishment, further work to be done to complete the program, and changes to be incorporated in the next Public Works Appropriations Measures.

Section 18 Effectivity.

SEC. 18. Effectivity. —This Decree shall take effect immediately.

Done, in the City of Manila, this 4th day of April, in the year of our Lord, nineteen hundred and seventy-eight.

(SGD.) FERDINAND E. MARCOS

President of the Philippines

By the President:

(SGD.) JACOBO C. CLAVE

Presidential Executive Assistant