CREATING THE LEYTE SAB-A BASIN DEVELOPMENT AUTHORITY, DEFINING ITS POWERS AND FUNCTIONS, AND FOR OTHER PURPOSES.

• Number: Presidential Decree No. 625
• Sections: 34

Preamble

I, FERDINAND E. MARCOS, President of the Philippines, by

virtue of the powers in me vested by the Constitution, in order:

To integrate Government and private sector efforts and

resources for a planned development and balanced growth of the Sab-A

Basin in the Province of Leyte, as proposed in its 1975-1979 development

program, through the combined and harmonized pursuit of

entrepreneurial and social objectives on a self-sustaining basis;

To reclaim swamps, wastelands and drain waterlogged areas to

minimize the scourge of schisto-somiasis and fasciolasis both endemic in

the area;

To develop a food basket within the Province of Leyte and

Region VIII by increasing agricultural productivity; and

To provide a model for the development of agricultural estates.

do hereby decree and order:

Jurisdiction, Purposes and Powers

Application of Funds

AUDITS

SEC.

30. Relocation of Affected Parties. — The Authority shall

simultaneously with its development program, set aside a substantial

portion of the public lands in its jurisdiction and relocate tenants and

small landowners affected by mechanization or displaced by development,

kaingeros and squatters within the Basin, dynamite fishermen residing

in the city and municipalities involved and landless squatters in the

City of Tacloban, under such terms and conditions specified by the

Authority.

Recreation Area

Miscellaneous Provisions

Section 1 Body Corporate Created.

SECTION 1. Body Corporate Created. — For the

purpose of carrying out and effecting the general objectives declared

herein, there is hereby created a body corporate to be known as the

Leyte Sab-A Basin Development Authority, hereinafter referred to as the

Authority, which shall be organized by the President of the Philippines

within three months from the effectivity of this Decree. The Authority

shall execute and exercise all the functions and powers herein vested,

as well as those vested by general law to juridical persons, in such a

manner as will, in its Judgment, aid to the fullest extent the

successful carrying out of the aims and objectives set forth

hereinbelow.

Section 2 Territorial Jurisdiction.

SEC. 2. Territorial Jurisdiction. — The

territorial jurisdiction of the Authority shall, without prejudice to

established and pre-existing private proprietary rights, encompass all

the lands, timber, vegetation, minerals and waters within the

municipalities of Alang-Alang, Barugo, Palo, San Miguel, Sta. Fe and

Babatñgon; that portion of the Municipality of Jaro covering the barrios

of Parasan, Sarisari, Badiang, Villa Paz, Sta. Cruz, Pangi, San Roque

Macanip, Batog, Alahag, Malobago, Buri Sagoahan, Buena-vista, Poblacion,

Olatan, Caglawan and Bukid; and all the forestlands, timberlands,

pasturelands and reforestation areas in the City of Tacloban. The lands

herein embraced shall be referred to as the Basin.

The Directors of Lands is hereby directed to demarcate the

metes and bounds of the territorial domain of the Authority in terms of

geodetic longitude and latitude and/or by degrees and minutes reckoned

in relation to a principal meridian traversing an initial reference

point established in the City of Tacloban. This demarcation and

description shall properly segregate all the public lands and waters

within the identified boundaries.

All disposable public lands,

within the area are hereby transferred and conveyed to the Authority and

title thereto shall forthwith be issued by the Director of Lands to the

Authority according to law. Additionally, the Authority is granted

preventive jurisdiction over timber and mineral lands within the Basin

to the end that the same may not be disposed of as favor of users or

converted to agricultural, administration as timber or mineral lands,

without the Authority's prior recommendation and the approval of the

President of the Philippines.

All fees, rentals and charges and

revenues derived from the exploitation, development, conservation and

utilization of natural resources within the area shall pertain to the

Authority.

Section 3 Principal Office.

SEC. 3. Principal Office. — The

Authority shall establish its principal office within the Basin. It may

set up branch offices in such other places as may be authorized by the

Board of Directors.

Section 4 Purposes.

SEC. 4. Purposes. — The Authority shall have the

following purposes:

To undertake and continuously update a comprehensive survey and

inventory of the physical and natural resources, problems and

opportunities in the province of Leyte, more particularly those of the

Sub-A Basin as delineated and described in Section 2, to provide the

officials of the Province of Leyte and managers of the Authority

up-to-date and accurate data and information for the most economic and

socially beneficial development projects of the province and of the

Basin;

To provide the manpower capabilities and facilities by

extending the necessary planning, management and technical assistance to

existing and prospective investors in the Basin, the Province of Leyte

or elsewhere;

To arrange for and negotiate with the proper bodies and

institutions, whether Governmental or private, domestic or foreign,

and/or directly provide guaranty, venture or debt financing, technical

support, or other form of assistance or service, to any entity,

enterprise or project organized, operating or habitually engaged in

substantial trade, with or within the Basin;

(d) To pass upon all plans, programs and projects within the

Basin proposed by the national, provincial and municipal governmental

agencies, public corporations and private enterprises where such plans,

programs and/or projects are related to the development of the Basin as

envisioned in this Decree. The Authority shall determine whether such

plans programs and/or projects need its approval, modification or

implementive supervision and where the Authority makes a decision in

this respect, its decision shall be conclusive and final upon the

parties concerned.

To engage in all projects and enterprises, whether in the

agricultural, mining, forestry, fishery, commercial, industrial or

service lines: Provided, That such projects or enterprises are

located or doing substantial business in the Basin; for this purpose,

whether by itself or in joint venture or cooperation with private

persons or entities, to organize, finance, invest in the operate

subsidiary corporations;

To plan, program and undertake the readjustment, relocation,

resettlement of populations within the Basin as may be deemed necessary

for the attainment of the objectives of this decree. A suitable

relocation site will be developed for the residents thus displaced;

To undertake and/or provide social benefit services, works and

facilities to and for the inhabitants of the Basin, particularly in the

containment of endemic diseases to humans and animals, and in the

creation of opportunities for gainful employment, housing, education and

wholesome recreation for such inhabitants;

To dredge and otherwise undertake works on waterways, irrigate,

inundate, dry or fill up natural water basins, and to undertake

reclamation projects, as may be necessary to accomplish the aims and

purposes of the Authority; and

To control and regulate the use of lands, rivers, waterfalls,

springs and lakes in the Basin.

Section 5 Powers and Functions.

SEC. 5. Powers and Functions. — The Authority shall

have the following powers and functions;

To have perpetual succession in its corporate name;

To sue and be sued;

To adopt, alter and use a corporate logo, seal arid/or emblem;

To adopt, amend and repeal its by-laws;

To enter into contracts of any kind and description to enable

it to carry out its purposes and functions under this Decree;

To acquire, lease or hold real property and personal property

as it deems necessary or convenient in the successful prosecution of its

business, and may lease, mortgage, sell, alienate, or otherwise dispose

of such personal and real property held by it, but may not dispose any

of its real properties under conditions which would limit its

developmental control over the area herein defined; and/or dispose of

its capital assets for delivery or use outside of the Province of Leyte

without the approval of the Governor, or outside of the Philippines

without the approval of the President of the Philippines;

To exercise the power of eminent domain in the name of the

Republic of the Philippines;

To adopt and implement measures designed to protect the life,

liberty and properties of persons within the Basin: Provided,

That such measures are approved by the President of the Philippines;

To perform prior screening functions, as a condition precedent

to the approval by any national, provincial or municipal governmental

agency, of any permit, license, lease, franchise or concession for the

operation of any business or the exploitation, development or

utilization of natural resources within the Basin;

To arrange and negotiate with the private landowners within

the Basin, for the lease or other use of trancts of land required for

extensive mechanized cultivation by private corporations;

To grant loans to farmers' cooperatives, implementing

development projects previously approved by the Authority, subject to

applicable requirements of law on the matter;

To negotiate and enter into management and/or consulting

contracts with local and/or foreign management consulting firms for the

management of the Authority and/or the planning and implementation of

agro-industrial development projects in the Basin. Moreover, the

Authority shall also have the power to effect advance payment of the

stipulated fees;

To avail of the expertise of any particular employee,

technician, or group of persons in any bureau, office or department of

the National Government whose services are deemed urgently needed for

the attainment of the goals of the Authority, with the consent and

approval of the department head concerned;

To conduct scientific experiments, investigation and research

to discover economical and practical methods of increasing

agro-industrial production and other related endeavors;

To encourage and organize by arranging appropriate financing

schemes, cooperative ventures in agriculture, agri-business, industry

and commerce;

To arrange and negotiate on behalf of the Province of Leyte and

for the Republic of the Philippines for local and/or foreign financing

of projects undertaken by the Authority subject to the approval of the

Governor of the province or the President of the Philippines as the case

may be;

To engage in agro-industrial and business activities including

the organization and/or financing of rural or cooperative banks;

To make such regulations as are necessary to execute the powers

and functions vested in it by this Decree; and

To do such other things as are directly or indirectly

necessary, incidental or conducive to the attainment of the objectives

of this Decree.

Section 6 Capital structure.

SEC. 6. Capital structure. — The authority shall

have two (2) capital funds: (I) a Capital fund for Operations; and (II)

a capital fund for Social Services.

The authorized Capital Fund for Operations shall be devoted

primarily to the pursuit of profit-making or self liquidating (i.e. at

least "break-even") projects, and shall be dealt with, accounted for and

liquidated in case of dissolution in the same manner as the capital

stock of an ordinary private commercial corporation. It shall have a

maximum authorized capital of one hundred million pesos

(P100,000,000.00) divided into one million shares with a par value of

one hundred pesos (P100.00) per share.

The Capital Fund for Social Services shall be administered as a

trust for investment, the income from which, but not the principal,

shall be devoted to the financing of social benefits and/or public

services to inhabitants of the area, such as but not limited to medical,

dental and hospitalization services, construction of civil works and

public infrastructure within the Area, free education and scholarship

benefits, athletic and recreation facilities; and other free services

and basic scientific research. The Capital Fund for Social Services

shall be invested in fixed income securities in the money and capital

markets or in the shares of stocks of corporations which have

continuously paid dividends on such shares during the last preceding

three years. The Capital Fund for Social Services shall consist of funds

contributed from sources mentioned in Section 8. Upon the dissolution

of the Authority, the remainder of the trust corpus and its income shall

accrue to the General Fund of the Republic of the Philippines.

Section 7 Subscriptions to Capital Fund for Operations.

SEC. 7. Subscriptions to Capital Fund for Operations.

— Of the one million shares of the Capital Fund for Operations, the

following shall be alloted, taken up and/or paid for by the following

subscribers as follows:

SUBSCRIPTION IN P000

Subscribed

Paid up

%

National Government

20,000

5,000

888.7

Province of Leyte

1,000

330

4.4

City of Tacloban

550

251

2.3

Municipalities:

Palo

250

35

1.1

Alang-Alang

250

35

1.1

Barugo

125

15

0.6

San Miguel

125

15

0.6

Sta. Fe

75

5

0.4

Babatngon

75

5

0.4

Jaro

75

5

0.4

_______

_______

______

22,525

5,660

100

For the purposes of this Decree, municipalities, cities and

provinces are hereby authorized to subscribe, own, buy or hold shares of

stock of the Authority.

The total paid-up requirement shall be

remitted to the treasury of the Authority upon its organization, with

the National Government advancing the full requirement of five million

six hundred sixty thousand pesos (P5,660,000) for and in its own behalf

and that of the Province of Leyte, City of Tacloban and the

municipalities of Alang-Alang, San Miguel, Sta. Fe, Palo, Barugo,

Babatngon and Jaro. Yearly thereafter, for a period of four years, the

National Government shall on each anniversary date of the organization

of the Authority, advance to the Treasury of the Authority, for and in

its own behalf and that of the local Governments concerned, one fourth

of the balance of the total subscriptions until the whole subscription

has been fully paid up. For this purpose, the necessary funds are hereby

set aside and appropriated.

Beginning the sixth year of the

Authority's operations, and every year thereafter up to the fifteenth

year, the National Government shall liquidate its aforesaid advances by

means of withholding, from the respective Internal Revenue allocation of

each local government concerned, one-tenth of the full amount of

paid-up subscription which the National Government may have advanced for

each of the local governments mentioned.

Whenever demanded by

the operation of the Authority, the Board of Directors may direct the

public offering or private placement of the unissued shares of the

Authority to private investors: Provided, That the total number

of shares offered to private investors at any one time shall not exceed

one-third of the total subscriptions of the Government in the Authority.

Such offering may be made at such price and terms as the Board of

Directors may at the time consider to be fair and reasonable.

SEC.

8. Participations in the capital fund, for social services. —

The corpus of Capital Fund for Social Services shall consist of grants,

endowments and bequests from, the Government, the private sector,

foreign governments, and international institutions and foundations. All

Social Services shall be exempted from gift, estate and inheritance

taxes, and shall be fully deductible from the taxable income of the

grantor.

The Capital Fund for Social Services shall be

administered as a true trust fund, and shall for all legal purposes be

invested with the attributes of a trust or estate subject to separate

accounting and with capacity to borrow for and in its own behalf and

account. The management of the fund may be turned over to a banking

institution, investment house, or trust company at the discretion of the

Board of Directors. From time to time, the Board of Directors shall

specify that a mandatory portion of the income of the trust fund shall

be ploughed back into the corpus (or principal) of the Fund to enlarge

the investment base and compound its earning capacity.

Section 9 Board of Directors.

SEC. 9. Board of Directors. — The powers of the Authority

shall be vested in and exercised by a Board of Directors, hereinafter

referred to as the Board, which shall be composed of at least five but

not more than eleven members with the Provincial Governor of Leyte as

Chairman, or his duly authorized representative to sit as member in his

absence; the administrator of the Authority as Vice-Chairman; and the

Provincial Agriculturist of Leyte, the President of the Visayas State

College of Agriculture, and the President of the Leyte Federation of

Farmers Cooperatives and members; and up to six other members elected

every five years by the private shareholders, if there be such

shareholders, to represent their interest in the Board. Unless otherwise

required by the President of the Philippines, a person elected as

director need not hold a qualifying share of stock in the Authority.

Section 10 Powers and Duties of the Board of Directors.

SEC. 10. Powers and Duties of the Board of Directors. —

The Board of Directors shall have the following powers and duties:

To prescribe, amend and repeal rules and regulations governing

the manner in which the general business of the Authority shall be

conducted;

To appoint and fix the compensation of the Administrator,

Deputy Administrators for Agricultural Development, Administration and

Budget, Cooperative Management and Agri-business, and to create such

other offices and appoint their incumbent as may be necessary from time

to time;

To remove, suspend or otherwise discipline for cause, by a

majority vote of all the members, any officer of the Authority;

To approve the budget of the Authority; and

To do such acts and perform such functions as are germane to

the purposes as enumerated in Section 2 of this Decree.

Section 11 Administrator — Qualifications.

SEC. 11. Administrator — Qualifications. — There

shall be an Administrator who shall be a citizen of the Philippines with

demonstrated executive competence and experience in the field of public

administration, public infrastructure management or the management of

industrial or commercial enterprises. Notwithstanding the foregoing and

the other provisions of this Section, the management of the Authority

may by Board Resolution contract the services of a firm of professional

managers to manage the affairs of the Authority.

Section 12 Tenure of office of administrator.

SEC. 12. Tenure of office of administrator. — The

Administrator shall be appointed by the President upon recommendation

of the Board of the Authority. The Administrator shall hold office at

the pleasure of the appointing power. He shall receive an annual

compensation set by the Board which in no case shall be less than

P35,000 per annum: Provided, That he shall establish his

residence within the basin area and shall reside therein during the

entire tenure of his office.

Section 13 Powers and duties of the administrator.

SEC. 13. Powers and duties of the administrator. —

The Administrator shall have the following powers and duties:

To submit for consideration of the Board such recommendation

for policy formulation which he deems necessary to carry out the plans

of the Authority;

To direct and manage the affairs and business of the Authority

in consonance with the policies promulgated by the Board;

To submit for the approval of the Board the budget of the

Authority;

To execute and administer the policies and measures approved by

the Board;

To hire the personnel below officer level necessary for the

attainment of the goals of the Authority and fix their compensation;

To remove, suspend, or otherwise discipline for cause, any

subordinate employee of the Authority;

To delegate such authority as may be properly delegated:

Provided, That such delegation is in writing, copies of which

shall be furnished the Board;

To submit within ninety (90) days after the close of each

fiscal year an annual report to the President of the Philippines through

the Board; and

To perform such other duties as may be lawfully assigned to him

by the Board.

Section 14 Other Officers, Tenure of Office and Compensation.

SEC. 14. Other Officers, Tenure of Office and

Compensation. — The Vice-Chairman of the Board shall act as Chairman

in the absence of the latter.

There shall be a Board Secretary

appointed by the Board upon recommendation of the Provincial Governor of

Leyte. The Secretary shall receive an annual compensation set by the

Board, charged against the annual budget of the Authority and in no case

shall be less than P24,000 per annum.

Section 15 Effect of Vacancies.

SEC. 15. Effect

of Vacancies. — Vacancies in the Board as long as there shall be

three members in office shall not impair the powers of the Board to

execute the functions of the Authority.

Section 16 Vacancy before expiration of term.

SEC. 16. Vacancy before expiration of term. — Any

member appointed or elected to fill a vacancy in the Board occuring

prior to the expiration of the term for which his predecessor was

appointed shall serve only for the unexpired period.

Section 17 Disqualification.

SEC. 17. Disqualification. — No ex-officio member

of the Board shall directly or indirectly engage in the practice of any

profession or business which may be affected by, or related to, the

exercise of the Authority's functions and powers.

Section 18 Prohibition against "conflict of interest".

SEC. 18. Prohibition against "conflict of interest".

— No ex-officio member of the Board shall be financially interested,

directly or indirectly, in any contract entered into by the Authority

during his term of office.

Section 19 Quorum Board Meetings.

SEC. 19. Quorum Board Meetings. — Three members

of the Board in office shall constitute a quorum to transact business of

the Authority. The Board shall meet at least once every month or more

frequently as may be necessary to perform its duties, and shall be

convoked by the chairman or upon written request signed by at least

three of the members.

Section 20 Per Diems and Allowances.

SEC. 20. Per Diems and Allowances. — Each member

of the Board shall receive a per diem fixed by the President for actual

attendance in meetings.

Section 21 Merit system.

SEC. 21. Merit system. — All persons employed by

the Authority shall be selected on the basis of merit and fitness in

accordance with a merit promotion plan of the authority and approved by

the Civil Service Commission, except positions that are

policy-determining, highly technical and primarily confidential.

However, the Authority may, by agreement, secure such services as it may

deem necessary from other agencies of the National Government, and may

make arrangements for the compensation of such services. The Authority

may also employ and compensate, within appropriations available

therefore, such consultants, experts, advisers or assistants on a full

or part-time basis as maybe necessary, without subjecting these to WAPCO

regulations.

Section 22 Start-up Funds.

SEC. 22. Start-up Funds. — For the start-up

requirements of the Authority, there is hereby appropriated annually for

two (2) years, in addition to the sum mentioned in Section Six, the

amount of five hundred thousand pesos (P500,000.00). Beginning the third

year, the Board shall, pursuant to a budget approved by it and

submitted by the Administrator, authorize the expenditure of equity or

leverage funds from the sources mentioned in Section Six pursuant to the

guidelines and parameters established in said section.

Section 23 Power to Issue Bonds.

SEC 23. Power to Issue Bonds. — Whenever the

Board deems it necessary, the Capital Fund for Operations and/or the

Capital Fund for Social Services may by resolution be authorized to

incur indebtedness, and for this purpose float and issue bonds to carry

out the provisions of this Decree. The resolution allowing either or

both Capital Funds to incur indebtedness shall properly indicate the

funds liable therefor, and the bond instruments, prospectuses,

documents, and other flotation shall carry appropriate notices of this

indication for the benefit of the public and other parties dealing with

the Authority. The Capital Fund for Operations may guaranty or assume

indemnity or suretyship obligations in respect of the indebtedness of

the Capital Fund for Social Services with the approval of two-thirds of

the entire Board. The Capital Fund for Social Services may not, however,

guaranty or assume indemnity or suretyship obligation in respect of the

indebtedness of the Capital Fund for Operation without the pines, a

person elected as director need not hold a qualifying of bond issues or

loans backed up by or secured for the Capital Fund for Social Services

shall, unless otherwise specified in the covering deed or prospectus,

form part of the corpus of the trust and shall be utilized solely for

investments according to the provisions of Section Six, the income from

which but not the principal shall be available for expenditure for

social benefit projects in the Basin. Donations, grants, bequests or

loans to the income portion of the trust shall be expendable directly

for social or public service projects.

Section 24 Bond Features, etc.

SEC. 24. Bond Features, etc. — The Board shall

prescribe the form, rates of interest, the denominations, maturities,

negotiability, convertibility, call and redemption features, tax

exemption of interest, if desired, authority for which is hereby given,

and all other terms and conditions of issuance, underwriting, placement,

sale, servicing, and payment of all bonds issued by the Authority. The

Bonds issued by virtue of this Decree may be made payable both as to

principal and interest in Philippine currency and any readily

convertible foreign currency.

Section 25 Government Guarantee.

SEC. 25. Government Guarantee. — The Republic of

the Philippines hereby unconditionally guarantees the payment by the

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

notes, drafts or such other evidence of indebtedness 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 appropriated out

of any funds in the National Treasury, and thereupon, to the extent of

the amount so paid. The Government of the Republic of the Philippines

shall succeed to all the rights of the holders of such bonds,

debentures, notes, drafts or other evidence of indebtedness.

Section 26 Exemption from Taxes.

SEC. 26. Exemption from Taxes. — The Authority

and its subsidiaries shall be exempt from all taxes, licenses fees, and

duties incidental to their operation to the following extent:

With respect to all transactions, properties and effects

pertaining to or attributable to the Capital Fund for Operation, except

income which shall be gradually taxable at corporate sales to the

following extent:

% of Income

Subject to tax

Period

Into Operation

—

...........................................................

1st to 2nd years

25

...........................................................

3rd to 4th years

50

...........................................................

5th to 6th years

75

...........................................................

7th to 8th years

100

...........................................................

9th year onwards

With respect to all transactions, properties, effects accruing,

pertaining or attributable to subsidiaries, to the extent allowed to

pioneer enterprises registered under Republic Act No. 5188, as amended,

otherwise known as the Investments Incentives Act.

Section 27 Performance Budgetting.

SEC. 27. Performance Budgetting. — The budgets of

the Authority shall be performance budget which estimate target revenues

and expenses for a given budget period. The same shall therefore not

provide inflexible expenditure allocations but shall serve as a tool for

gauging efficiency and effectiveness of the management staff of the

Authority in attaining the objectives of the Authority with the most

profit possible to the Capital Fund for Operations, and the maximum

social benefits to Basin residents with the least cost to the Authority.

Section 28 Auditing Requirements.

SEC. 28. Auditing Requirements. — The Auditor General

shall appoint a representative, with the necessary personnel, who shall

be the Auditor of the Authority. The number of positions and the

salaries of such Auditor and personnel under him shall be determined by

the Auditor General, subject to the concurrence of the Board. In case of

disagreement, the matter shall be submitted to the President of the

Philippines for resolution. The salaries and all other expenses in

maintaining the Auditor's office shall be borne by the Authority.

Section 29 Report.

SEC. 29. Report. — All financial transactions of

the Authority shall be audited in accordance with law, administrative

regulations, and the principles and procedures applicable to corporate

transactions. A report of audit for each fiscal year shall be submitted

to the Board by the Auditor within sixty (60) days after the close of

the fiscal year, furnishing copies thereof to the President of the

Philippines, the Auditor General and the Governor of Leyte. The report

shall set forth the scope of the audit and shall include a statement of

surplus or deficit analysis and a statement of income by sources and

application of funds. It shall also include such comments and/or

recommendations with respect to any impairment of Capital noted in audit

showing specifically any program, undertaking expenditure or other

financial transactions made and/or conducted without authority of law.

Section 31 Multipurpose Woodland and Nature Recreation Reservation.

SEC. 31. Multipurpose Woodland and Nature Recreation

Reservation. — The forested areas along the municipalities of Palo,

Sta. Fe, Alang-alang, Babatñgon, San Miguel, and Tacloban City,

comprising approximately 12,500 hectares presently being surveyed by the

Bureau of Forest Development, the metes and bounds of which, will

likewise be demarcated by the Bureau of Lands, is hereby declared the

Leyte Multi-purpose Woodlands and Nature Recreation Reservation Area

which shall be developed and maintained by the Bureau of Forest

Development for sports, hunting, fishing, wildlife activities, nature

observation, scientific and educational tours, bird watching, camping

and mountain climbing. A start-off fund of TWO HUNDRED FIFTY THOUSAND

PESOS (P250,000.00) is hereby appropriated for this purpose. The yearly

appropriation of which shall be included in the budget for the

Department of Natural Resources.

Section 32 Terra.

SEC. 32. Terra. — The

Authority shall exist for a term of fifty (50) years, subject to

extension by the President of the Philippines.

Section 33 Repealing Clause.

SEC. 33. Repealing Clause. — All acts, decrees,

executive orders, administrative orders, rules and regulations which are

inconsistent with the provisions of this Decree are hereby repealed or

modified accordingly.

Section 34 Construction of this Decree.

SEC. 34. Construction of this Decree. — If any

part or section of this Decree shall be declared unconstitutional, such

declaration shall not invalidate the other provisions thereof.

Section 35 Effectivity.

SEC. 35. Effectivity. — This Decree shall take

effect immediately.

Done in the City of Manila, this 26th day of December, 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