WHEREAS, it
is the stated policy of the National Government to promote
self-reliance of local governments in undertaking their socio-economic
development programs; chanroblesvirtualawlibrary
WHEREAS, in pursuance of this national policy, various international
institutions are providing assistance to the Local Governments, thru
the National Government;chanroblesvirtualawlibrary
WHEREAS, there is a need to establish an effective system to make
available to the Local Governments these international
assistance. chanroblesvirtualawlibrary
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:cralaw:red
Section 1. The Municipal Development Fund. — There is
hereby created a Revolving fund to be known as the Municipal
Development Fund, hereinafter called MDF, which shall be made available
to Local Governments (provinces, cities/municipalities) thru the
Ministry of Finance. The Ministry of Finance and local government
concerned shall enter into appropriate agreement setting forth the
terms and conditions thereof. chanroblesvirtualawlibrary
Section 2. Sources and Operations of Fund. — The MDF
shall be capitalized and funded by proceeds of foreign loans,
assistance or grants which are to be made available to the Local
Governments for specific purposes, project components and activities
set forth in international agreements, entered or to be entered into by
the Government of the Philippines with foreign governments and
international institutions (IRBD, ADB, USAID, etc.). Foreign loans and
assistance released and credited to the MDF shall be covered by Advice
of Allotment and Cash Disbursement Ceiling. Funds from the MDF shall be
made available to the local governments as loans which shall be treated
as trust fund and amortized by the local governments, out of their
general fund sources. The amortization (interest and principal) made by
the local governments to the MDF shall form part of the accrue to the
MDF and shall be made automatically available for relending to finance
other similar projects of the local governments. The local governments
shall include in the annual/supplemental budget the proceeds of loan
from the MDF, their utilization as well as amortization.
Section 3. For purposes of the proceeding and
following sections of this Decree, a Central Project Office (CPO) under
the policy directions of a Steering Committee or similar appropriate
organizations shall be established as required in international
agreements, provided that MOF, OMB, MLG, MPWH and NEDA shall be members
in the said Committee. Financial policies, lending terms and technical
requirements for MDF financing shall be approved by the committee in
accordance with the provisions of international agreements.
Section 4. Administration of Fund. — The Ministry of
Finance shall administer the MDF provided that the Land Bank,
Development Bank of the Philippines or the Bureau of Treasury may be
designated by the Minister of Finance as the depository, disbursing and
collecting agent of the MDF subject to the terms, conditions and
guidelines as the Minister of Finance may prescribe and in accordance
with the provisions of international and other implementing
agreement. chanroblesvirtualawlibrary
Section 5. Detailed implementing guidelines and
procedures for the MDF and the provisions of this Decree shall be
promulgated by the Steering Committee and in accordance with the
provisions of international agreements entered or to be entered into by
the Philippine Government in respect of the MDF.
Section 6. Any existing provisions of law, rules,
regulations or other issuances in conflict or are inconsistent herewith
are hereby repealed or modified accordingly.
Section 7. This decree shall take effect upon
approval.
Done in the City of Manila,
this 29th day of March, 1984.
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