AUTHORIZING THE UNDERTAKING OF EDUCATIONAL DEVELOPMENT PROJECTS, PROVIDING FOR THE MECHANICS OF IMPLEMENTATION AND FINANCING THEREOF, AND FOR OTHER PURPOSES

• Number: Presidential Decree No. 6-A
• Sections: 22

Preamble

I, FERDINAND E. MARCOS, President of the

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

Commander-in-Chief of all the Armed Forces of the Philippines and

pursuant to Proclamation No. 1081 dated September 21, 1972, and General

Order No. 1, dated September 22, 1972, do hereby decree, order and makes

as part of the law of the land the following measure:

Section 1 Title.

SECTION 1. Title. — This Decree shall be

known as the "Educational Development Decree of 1972."

Section 2 Declaration of Policy.

SEC. 2. Declaration of Policy. — It is

hereby declared to be the policy of the Government to ensure, within the

context of a free and democratic system maximum contribution of the

educational system to the attainment of the following national

development goals:

(a) To achieve and maintain an accelerating rate of economic

development and social progress;

(b) To assure the maximum participation of all the people in the

attainment and enjoyment of the benefits of such growth; and

(c) To strengthen national consciousness and promote desirable

cultural values in a changing world.

Section 3 Statement of Objectives.

SEC. 3. Statement of Objectives. — To this

end, the educational system aims to:

(a) Provide for a broad general education that will assist each

individual, in the peculiar ecology of his own society, to (1) attain

his potential as a human being; (2) enhance the range and quality of

individual and group participation in the basic functions of society;

and (3) acquire the essential educational foundation for his development

into a productive and versatile citizen;

(b) Train the nation's manpower in the middle level skill required

for national development;

(c) Develop the high-level professions that will provide leadership

for the nation, advance knowledge through research, and apply new

knowledge for improving the quality of human life; and

(d) Respond effectively to changing needs and conditions of the

nation through a system of educational planning and evaluation.

Section 4 Guiding Principles of the Ten-Year Program.

SEC. 4. Guiding Principles of the Ten-Year

Program.—In order to lay the foundation and to advance the

attainment of these objectives, a ten-year national education

development program shall be formulated based on the following:

(a) Improvement of curricular programs and quality of instruction

of all levels by way of upgrading physical facilities, adoption of

cost-saving instructional technology, and training and re-training of

teachers and administrators;

(b) Upgrading of academic standards through accreditation schemes,

admissions testing and guidance counselling;

(c) Democratization of access to educational opportunities through

the provision of financial assistance to deserving students, skills

training programs for out-school youth and continuing education program

for non-literate adults;

(d) Restructuring of higher education to become more responsive to

national development needs through a, planned system of incentives and

assistance to both public and private colleges and universities and

synchronization of curricular programs, staffing patterns and

institutional development activities;

(e) Expansion of existing programs and establishment of new ones

designed to train middle-level technical and agricultural manpower; and

(f) Instituting reform in the educational financing system to

facilitate the shift of funding responsibility for elementary and

secondary education from the national to the local government, thereby

increasing government participation in higher education.

Section 5 Educational Development Projects.

SEC. 5. Educational Development Projects. —

The above stated objectives shall be attained through the undertaking

of the following educational development projects:

(a) Management study of the Department of Education and Culture and

institution of administrative improvements therein;

(b) Establishment and/or operation or improvement of secondary

schools which may include provision for extension services, facilities

and equipment to allow the use of expanded and improved curriculum;

(c) Establishment and/or operation, upgrading or improvement of

technical institutes, skills training centers, and other non-formal

training programs and projects for the out-of-school youth and the

unemployed in collaboration with the programs of the National Manpower

and Youth Council;

(d) Curriculum and staff development including mathematics and

science teaching;

(e) Expansion of agricultural secondary and higher education

programs and extension activities which may include radio broadcasting

and rural training services, and the provision of facilities therefor

including seed capital and revolving funds;

(f) Design, utilization and improvement of instructional technology

and development/production of textbooks and other instructional

materials; and

(g) Assistance and incentives, including loans and grants, toward

the planned development and improvement of programs and facilities in

both public and private universities, colleges and schools.

In addition, other educational development projects necessary

pursuant to the objectives of this Decree are likewise to be undertaken:

Provided, That for such projects to qualify under this Decree,

the same must be consistent with the principles enunciated in Section 4

hereof, supported by sufficient studies, data and plans of operation

and implementation, endorsed by the National Board of Education to, and

approved by an Education Special Committee, hereinafter provided,

to form part of the educational development program.

Section 6 Working Arrangements.

SEC. 6. Working Arrangements. — For the

attainment of the objectives of this Decree, an Education Special

Committee, composed of the Secretary of Education and Culture as

Chairman and the Secretary of Finance and the Commissioner of the Budget

as members, is hereby created which shall;

(a) Approve and evaluate the specific-projects, endorsed to it by

the National Board of Education, to be financed out of the resources provided

for in this Decree; and

(b) Administer the Educational Institutions Development Fund as

hereinafter provided, except that the resources accruing into

the Fund shall be managed by reputable fund managers or financial

institutions.

The National Board of Education, as reorganized pursuant to

Presidential Decree No. 1, dated September 24, 1972, shall, in addition

to its functions, perform the following:

(a) Formulate education objectives and policies consistent with

those enunciated in Section 2 hereof; and

(b) Provide policy guidelines in the administration of the

assistance and incentive programs provided for in Section 5 (g)

hereof, which shall include a system of educational priorities

consistent with national, regional and/or local requirements for

education and skills training, and such other procedures and

requirements as will ensure the continual upgrading of the quality of

education, the rationalization and institutional growth, and the

democratization of access to education.

In the discharge of its functions, the National Board of Education

shall be assisted by an office of planning and research known as

Planning Service in the Department of Education and Culture.

A project unit to be known as the Educational Development Projects

Implementing Task Force is hereby established under the Office of the

Secretary of Education and Culture to be headed by a Director and be

composed of technical staff members and such consultants as are

necessary. Its functions are:

(a) To supervise and implement foreign-assisted development

projects; and

(b) To implement such other development projects as may be assigned

to it by the Secretary of Education and Culture,

Where the project involves an office, agency or instrumentality of

the Government other than the Department of Education and Culture,

appropriate working arrangements shall be established by the Educational

Department Projects Implementing Task Force and the office, agency or

instrumentality concerned, including the turn over of the project upon

its completion to such office, agency or instrumentality to be

integrated with and be part of the regular activities thereof.

Section 7 Authority to Borrow.

SEC. 7. Authority to Borrow. — The

President of the Philippines, in behalf of the Republic of the

Philippines, may contract loans, credits or indebtedness with any

foreign source or lender, under such terms and conditions as may be

agreed upon, any provisions of law, including Republic Act Numbered

Forty-eight hundred and sixty as amended by Republic Act Numbered

Sixty-one hundred and forty-two, Act Numbered Forty-two hundred and

thirty-nine, Commonwealth Act Numbered One hundred thirty-eight,

Commonwealth Act Numbered Five hundred forty-one, Republic Act No. 912,

Republic Act Numbered Fifty-one hundred eighty-three, and other related

laws to the contrary notwithstanding, for a total amount not exceeding

one hundred million United States dollars or the equivalent thereof in

other currencies, as may be necessary to meet the direct and indirect

foreign exchange requirements of the projects authorized under this

Decree, to cover the costs of feasibility studies, equipment,

machineries, supplies, construction, installation and related services

of any such projects: Provided, That the loans, credit or

indebtedness authorized herein shall be incurred on terms of payment of

not less than ten (10) years.

Section 8 Utilization of Proceeds.

SEC. 8. Utilization of Proceeds. — The

proceeds of such loans, credits or indebtedness, as well as the

appropriations under Section 9 hereof, shall be used exclusively for

financing the educational development projects authorized under this

Decree: Provided, That for the purpose of ensuring continued

assistance to the planned development and improvement of programs and

facilities in both public and private universities, colleges and

schools, there is hereby authorized to be established an Educational

Institutions Development Fund in an amount of not less than ten million

pesos (P10,000,00), Philippine currency, annually for a period of ten

(10) years. The said Fund shall be administered as a separate fund, and

lending or relending operations to private universities, colleges and

schools shall be subject to the rules and regulations to be promulgated

by the National Board of Education with the approval of the Secretary of

Finance.

Cities, provinces and municipalities may undertake educational

development projects pursuant to the objectives of this Decree and are

hereby authorized to avail themselves of proceeds of loans, credits or

indebtedness herein authorized as well as the appropriations under

Section 9

Section 9 hereof and receive financial assistance subject to such

conditions as may be provided for and/or promulgated by the

National Board of Education pursuant to this Decree.

Section 10 Creation of Educational Special Account.

SEC. 10. Creation of Educational Special

Account. — There is hereby established in the National Treasury an

Educational Special Account to meet the appropriations herein provided,

which shall be constituted from the following sources:

(a) Proceeds from bond issues as provided for under

Section 11

Section 11 of this Decree;

(b) Twenty million pesos (P20,000,000) annually from the share of

the National Government in the Special Education Fund under Republic Act

Numbered Fifty-four hundred forty-seven as provided in Section

12 hereof;

(c) Fifteen million pesos (P15,000,000) from the Special Science

Fund for Fiscal Year 1972-73, and fifty per centum (50%), annually

thereafter until June 30, 1972, of the total annual receipts from the

taxes provided for under Republic Act Numbered Fifty-four

forty-eight, as provided in Section 13 hereof;

(d) Future savings of the Department of Education and Culture that

may result from the implementation of reforms consequent to management

study, as provided in Section 14 hereof; and

(e) Augmentations from the General Funds which are hereby

authorized in cases where the above sources are not sufficient to cover

expenditures required in any year, as provided in Section 15 of

this Act.

The Department of Education and Culture is hereby authorized to

receive and spend or utilize donations and/or bequests made in pursuance

of the purposes and for projects enunciated in this Decree which

donations and/or bequest shall be exempt from the payment of gift taxes,

Section 12 Portions of the Special Education Fund.

SEC. 12. Portions of the Special Education Fund.

— Any provision of the law to the contrary notwithstanding, effective

July 1, 1972, until June 30, 1982, twenty million pesos (P20,000,000) of

the annual share of the National Government from the Special

Education Fund provided for under Republic Act Numbered

Fifty-four hundred and forty-seven shall accrue to the Educational

Special Account herein provided. Thereafter, the said share

shall accrue to the General Fund.

In this connection, the shares of the local governments from the said

Fund may be used by them to finance such projects as may be established

in their locality under the authority of this Decree regardless of any

restrictions imposed thereon.

Section 13 Portion of Special Science Fund.

SEC. 13. Portion of Special Science Fund. —

Any provision of law to the contrary notwithstanding, effective upon

approval of this Decree, fifteen million pesos (P15,000,000) of the

Special Science Fund established under Republic Act Numbered fifty-four

hundred and forty-eight as amended is hereby transferred to the

Educational Special Account herein provided. Starting July 1,

1972, until June 30, 1982, fifty per centum (50%) of the total

collections from the taxes imposed under Republic Act Numbered

fifty-four hundred and forty-eight as amended shall accrue to the

Educational Special Account. Thereafter, said portion shall accrue to

the General Fund.

Section 14 Future Savings.

SEC. 14. Future Savings. — Such amount of

savings resulting from the implementation of reforms consequent to the

management study authorized under Section 5 as may be necessary to

prosecute the projects under this Decree shall accrue to the Educational

Special Account.

Section 15 Augmentation from General Fund.

SEC. 15. Augmentation from General Fund. —

In cases where funds from sources specified in Section 10 (a), (b), (c),

and (d), are not sufficient to meet the requirements in any fiscal

year, such amounts as are necessary to meet such requirements are hereby

appropriated out of the funds in the General Funds not otherwise

appropriated, and transferred to the Education Special Account.

Section 16 Tax Exemption.

SEC. 16. Tax Exemption. — The loans,

credits or indebtedness incurred pursuant to this Decree, the payment of

the principal, interest and other charges thereon, the earnings of the

fund created under Section 8, as well as the importation of articles,

materials, equipment, machineries and supplies, including all building

materials by the Department of Education and Culture or other offices,

agencies or instrumentalities of the Government and by private or

chartered entities authorized by Education Special Committee to

undertake the projects authorized in this Act shall be exempt from all

taxes, duties, fees, imposts, other charges and restrictions, including

import restrictions, imposed by the Republic of the Philippines or any

of its agencies or political subdivisions. The Secretary of Finance

shall promulgate rules and regulations necessary for the purpose.

Section 17 Additional Appropriations.

SEC. 17. Additional Appropriations. — There

is hereby authorized to be appropriated, out of any funds in the

National Treasury not otherwise appropriated, such sums as may be

necessary to pay the principal, interests and other charges on the

loans, credits or indebtedness incurred under the authority of this

Decree as and when they become due.

Section 18 Repealing Clause.

SEC. 18. Repealing Clause. — All laws,

executive orders, rules or regulations or parts thereof which are

inconsistent with this Decree are hereby repealed and/or modified

accordingly.

Section 19 Effectivity.

SEC. 19. Effectivity. — This Decree shall

take effect immediately.

Done in the City of Manila, this 29th day of September, in the year

of Our Lord, nineteen hundred and seventy-two.

(Sgd.) FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.) ROBERTO V. REYES

Acting Executive Secretary

Section 9 Appropriations.

SEC. 9. Appropriations. — In addition to

the proceeds of the loans credits or indebtedness mentioned in Section 7

hereof, there is hereby appropriated for the projects authorized herein

in the sum of five hundred million pesos (P500,000,000) out of the

funds in the National Treasury not otherwise appropriated which shall be

programmed and released in the following manner: fifty million pesos

(P50,000,000) for Fiscal Year 1972-73 and fifty million pesos

(P50,000,000) annually thereafter until June thirty, nineteen hundred

eighty-two: Provided, That notwithstanding the said schedule

releases in i given year shall be adjusted in accordance with the actual

requirements of the projects being implemented during said fiscal year:

Provided, further, That should there be any surplus in the

annual appropriations herein provided, the same shall accrue to

the Educational Special Account herein created in the General Fund

which shall be made available to finance the projects during the

subsequent fiscal years.

Section 11 Bond Issues.

SEC. 11. Bond Issues. — The Secretary of

Finance may issue and sell bonds not exceeding twenty million pesos

annually under the authority of Republic Act Numbered Four thousand

eight hundred sixty-one, any provision of law to the contrary

notwithstanding.