CREATING THE TONDO FORESHORE DEVELOPMENT AUTHORITY, DEFINING ITS OBJECTIVES, POWERS AND FUNCTIONS, APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES.

• Number: Presidential Decree No. 570
• Sections: 19

Preamble

WHEREAS, it is the declared policy of the State to establish

human settlements to provide for a healthy living community and ensure

the socio-economic development of the people;

WHEREAS, cognizant of the above policy, it has become

imperative to resolve the slum and squatter problems of the Tondo

Foreshore area which exemplifies a social injustice incompatible with

the goals of the New Society;

WHEREAS, a lasting solution to the Tondo Foreshore situation

demands a comprehensive, integrated and harmonious development of the

Tondo Foreshore area and its proposed resettlement site;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me by the Constitution,

do hereby order and decree the creation of the Tondo Foreshore

Development Authority as follows:

Section 1

SECTION 1. The Tondo Foreshore Development Authority

hereinafter referred to as the Authority, shall be governed by this

Decree and its by-laws, as authorized hereunder, and shall have

succession for fifty years from and after the date of the approval of

this Decree. The Authority shall have general jurisdiction and control

over all persons, corporations, firms or utilities existing, proposed or

otherwise to be established within the Tondo Foreshore area and its

resettlement site and shall supervise, regulate and exercise its powers

in accordance with the provisions of this Decree. The principal office

of the Authority shall be in the City of Manila.

Section 2 Objectives and Purposes.

SEC. 2. Objectives and Purposes. — The Authority

shall have the following purposes and objectives:

To undertake all manner of activity, business or

development projects for the establishment of a

harmonious, comprehensive, integrated and healthy living

community in the Tondo Foreshore and its settlement

site;

To undertake and promote the physical and socio-economic

amelioration of the Tondo Foreshore residents in particular and the

nation in general;

To encourage other similar public and private organizations

to adopt an integrated, comprehensive and healthy living community

in dealing with slum, squatter and resettlement problems.

Section 3 Powers and Functions.

SEC. 3. Powers and Functions. — For the effective and

proper accomplishment of its purposes and objectives, the Authority

shall have the following powers and functions:

To develop and implement comprehensive and integrated urban

renewal programs for the Tondo Foreshore-land and Dagat-dagatan lagoon

and/or other additional/ alternative resettlement site and to

formulate and enforce general and specific policies for

its development which shall ensure reasonable degree of compliance

with environmental standards.

To prescribe guidelines and standards for the reservation,

conservation and utilization of public lands covering the Tondo

Foreshore land and its resettlement sites:

To construct, own, lease, operate and maintain infrastructure

facilities, housing complex, sites and services:

To determine, regulate and supervise the establishment and

operation of housing, sites, services and commercial and industrial

complexes and any other enterprises to be constructed or

established within the Tondo Foreshore land and its resettlement sites;

To undertake and develop, by itself or through joint venture

with other public or private entities, all or any of the different

phases of development of the Tondo Foreshore land and its resettlement

sites;

To acquire and own property, property-rights and interests, and

encumber or otherwise dispose of the same as it may deem appropriate;

To invest its funds or other assets in such undertakings as it

may deem wise or necessary to carry out its purposes and objectives;

To receive donation, grants, bequests and assistance of all kinds

from international and local private foundations, associations and

entities and utilize the same for the attainment of its objectives;

To establish subsidiary corporations and branch offices.

To implement and coordinate the undertakings of selected

projects and activities in the field of social and economic development

within the Tondo Foreshore land and its resettlement sites;

To sell, lease, or rent for a consideration and under such terms,

arrangements and conditions it may deem reasonable and proper its

properties and facilities within the Tondo Foreshore land and its

resettlement sites;

To fix, assess and collect charges and fees, including rental for

the lease, use or occupancy of lands, buildings, structure, facilities

and other properties owned and administered by the Authority and to fix

and collect fees and charges for issuance of permits, licenses and the

rendering of services not enumerated herein;

To sue and be sued, to prepare its by-laws, and to adopt a seal

which shall be judicially noticed;

To raise and/or borrow the necessary funds from local and

international financing sources or institutions and to secure the same

by any guarantee, pledge, mortgage, deed of trust or assignment of the

property of corporation for the purpose of financing the programs and

projects deemed vital for the early attainment of its goals and

objectives;

To enter into, make and execute contracts of any kind as may be

necessary or incidental to the accomplishment of its purposes and,

generally, to exercise all the powers and objectives;

Section 4 Board of Directors.

SEC. 4. Board of Directors. — The governing powers of

the Authority shall be vested in and exercised by a Board of Directors

composed of six (6) ex-officio members namely: The Executive

Secretary, The Director General of the National Economic and Development

Authority, the Secretary of Public Works and Communications, the

Secretary of Industry, the General Manager, Government Service Insurance

System, the Chairman, Board of Governors of the Development Bank of the

Philippines, the Administrator of the Social Security System. The

President shall appoint a Chairman from among the seven directors.

The officials next in rank to the regular members shall serve as

permanent alternate members except that, in the absence of the Chairman,

the Board shall elect a temporary presiding officer. The alternate

members shall attend meetings of the Board and Committees assigned to

their principals and receive the corresponding per diems whenever

their principal is absent or the said position is vacant.

Each

member of the Board shall receive a monthly commutable allowance of five

hundred pesos and per diem of one hundred pesos for every

meeting of the Board or Committee thereof actually attended; Provided,

That the total allowable amount of per diems each month shall

not exceed five hundred pesos.

Section 5

SEC. 5. Functions

and Duties of the Board of Directors.

Formulate and adopt policies in accordance with the general plan

of the urban development program for the Tondo Foreshore area and its

resettlement site, provided, such plans are congruent with general

framework plans for the country;

The Board shall ordain and promulgate the rules and

regulations governing the Authority, providing for, among other

things, the organizations, regular, special or general meetings of the

Board, its officers, their powers and duties, as well as other offices

and their duties, in a Code of By-Laws which shall be passed by the

affirmative vote of majority.

The Board shall establish such Committees under the

Authority as may be necessary for the accomplishment of its corporate

purposes.

The Board shall submit to the President of the Philippines and

shall publish an annual report of the condition of the Authority before

the end of June of each year.

Section 6 Powers to Issue Bonds.

SEC. 6. Powers to Issue Bonds. — Whenever the Board of

Directors may deem it necessary for the Authority to incur an

indebtedness or to issue bonds to carry out the provisions of this

Decree, it shall by resolution, so declare and state the purpose for

which the proposed debt is to be incurred. The resolution shall be

confirmed by the affirmative vote of at least five (5) members of the

Board and approved by the President of the Philippines.

Section 7 Sinking Fund.

SEC. 7. Sinking Fund. — A sinking fund shall be

established in such manner that the total annual contribution thereto

accrued at such rate of interest as may be determined by the Board of

Directors, shall be sufficient to redeem at maturity the bonds issued

under this Decree.

Such fund shall be under the custody of the treasurer of the

Authority who shall invest the same in such manner as the Board of

Directors may direct; charge all expenses of investment to said sinking

fund, and credit the same with the interest on investment and other

income belonging to it.

Section 8 Guarantee by the Government.

SEC. 8. Guarantee by the

Government. — The Republic of the Philippines hereby guarantees the

payment by the Authority of both the principal and the interest of the

both the principal and the interest of the bonds, debentures,

collaterals, notes or such other obligations issued by the Authority by

virtue of this Decree, and shall pay such principal and interest in the

event that the Authority fails to do so. In case the Authority shall be

unable to pay the said principal and interest, the Secretary of Finance

shall pay the amount thereof which is hereby appropriated out of any

funds in the National Treasury .not otherwise appropriated and

thereupon, to the extent of the amounts so paid, the Government of the

Republic of the Philippines shall succeed to all the rights of the

holders of such bonds, debentures, collaterals, notes or other

obligations, unless the sum so paid by the Republic of the Philippines

shall be refunded by the Authority within a reasonable time.

Section 9 Appropriation.

SEC. 9. Appropriation. — To carry out the

provisions of this Decree there is hereby appropriated the lump sum

amount of Thirty Million Pesos (P30,000,000.00) for Fiscal Year 1975,

out of the funds in the National Treasury not otherwise appropriated.

Thereafter, the succeeding appropriations of the Authority shall be

included in the Annual Appropriations Act.

Section 10 Eminent Domain.

SEC. 10. Eminent Domain. — For proper planning and

implementation of rational land policy for proper construction of

housing complexes, commercial and industrial complexes, sites and

services and infrastructure, the Authority shall have the right and

power to acquire properties by purchase, by negotiations or by

condemnation proceedings. In exercising the right or eminent domain,

condemnation proceedings shall be maintained by and in the name of the

Authority and it may proceed in the manner provided by law.

Section 11 The Auditor.

SEC. 11. The Auditor. — The Chairman of the

Commission on Audit shall appoint a representative who shall be the

auditor of the Authority. He shall likewise appoint the necessary

personnel to assist said representative in the performance of his

duties. The salaries of the auditor and his staff shall be fixed by the

Commission on Audit with the advice of the Board and said salaries shall

be paid by the Authority.

Section 12 Exemption from Civil Service Law.

SEC. 12. Exemption from Civil Service Law. — The

officers and employees of the Authority shall not be subject to the

Civil Service Law, rules and regulations and shall likewise be exempt

from the rules and regulations of the Wage and Position Classification

Office.

Section 13 Supervision.

SEC. 13. Supervision. — The Authority shall be

under the direct supervision of the Office of the President for purposes

of policy direction and coordination.

Section 14 Tax Exemption.

SEC. 14. Tax Exemption. — The Authority shall be

exempt from all forms of taxation and from all duties direct or

indirect, imposed by the Government or any of its political subdivisions

or instrumentalities.

Any provision of existing laws to the contrary notwithstanding,

any donation, contribution, bequest or financial aid which may be made

to the Authority shall be exempt from taxes of any kind and shall

constitute allowable deductions in full from the income of the donors or

givers for income tax purposes.

Section 15 Transitory Provision.

SEC. 15. Transitory

Provision. — The properties, rights, obligations and liabilities of

the Tondo Foreshore Urban Renewal Project shall be transferred to the

Authority.

Section 16 Repealing Clause.

SEC. 16. Repealing Clause. — All laws, executive

orders, administrative issuance, rules and regulations inconsistent with

the foregoing provisions are hereby repealed or accordingly modified.

Section 17 Separability Clause.

SEC. 17. Separability Clause. — The provisions of

this Decree are hereby declared separable, and if any provision of this

Decree is held invalid or unconstitutional the remainder thereof shall

not be affected.

Section 18 Effectivity.

SEC. 18. Effectivity. — This Decree shall take

effect immediately.

Done in the City of Manila, this 30th day of October in the year

of Our Lord, nineteen hundred and seventy-four.

(Sgd.)

FERDINAND E. MARCOS

President of the Philippines

By the President:

(Sgd.)

ALEJANDRO MELCHOR

Executive Secretary