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A collection of Philippine laws, statutes and codes
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PRESIDENTIAL DECREE NO. 1062



PRESIDENTIAL DECREE NO. 1062 - APPROPRIATING FUNDS FOR INFRASTRUCTURE DEVELOPMENT, SYNCHRONIZING THE SAME WITH PREVIOUS PUBLIC WORKS APPROPRIATIONS

 chanroblesvirtualawlibrary

WHEREAS, Presidential Decree Nos. 3, 475 and 759 provide appropriations for rehabilitation and construction of infrastructure projects designed to further accelerate socio-economic development;chanroblesvirtualawlibrary

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;chanroblesvirtualawlibrary

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

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 andds extended to Government projects; chanroblesvirtualawlibrary

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;chanroblesvirtualawlibrary

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

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:cralaw:red

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: chanroblesvirtualawlibrary

TITLE A — TRANSPORTATION AND COMMUNICATIONS

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:cralaw:red

(a)    Highways
1.     Pan Philippine Highway and
    Access Roads          980,000,000

2.     Laoag-Allacapan Road, Cagayan
    and Ilocos Norte            150,000,000

3.     Ilocos Norte Rural Development
    project           100,000,000

4.    Santiago-Cabanatuan-Tuguegarao
    Road, Isabela and Cagayan       50,000,000

5.     Lamut-Banaue Road, Nueva
    Vizcaya and Kalinga-Apayao     20,000,000

6.    Agoo-Tubao-Baguio City Road,
    La Union, Benguet and Baguio City    30,000,000

7.     Manila North Road, Bulacan,
    Pampanga, Tarlac, Pangasinan and La
    Union               50,000,000

8.    Olongapo-San Fernando-Gapan
    Road, Olongapo City, Pampanga and
    Nueva Ecija                 40,000,000

9.     Manila North Expressway
    Extension, Bulacan, Pampanga, Tarlac
    and Pangasinan           160,000,000

10.    Tarlac-Lingayen Road, Tarlac
    and Pangasinan       10,000,000

11.    Taytay-Sta. Cruz-
    Calamba Road, Rizal and Laguna      25,000,000

12.     Tarlac-Sta. Rosa Road and Feeder Rizal and    10,000,000

13.    Botolan-Capas Road, Zambales and Tarlac    26,000,000

14.    Cubao Interchange Quezon City    15,000,000

15.    Shaw Boulevard Interchange Rizal    13,000,000

16.    Manila South Diversion Road-
    EDSA Interchange, Rizal    25,000,000

17.    Marikina Bridge, Marikina, Rizal    70,000,000

18.    Marikina-Infanta Road, Rizal and Quezon    40,000,000

19.    Manila South Expressway
    Extension, Rizal and Laguna    50,000,000

20.    Mindoro Road Package, Mindoro
    Occidental and Mindoro Oriental        150,000,000

21.     Tabaco-Tiwi Road, Albay    18,000,000

22.    Secondary and Feeder Roads in
    Bicol, Camarines Norte and Albay     90,000,000

23.    Naga-Toledo Road, Cebu      11,000,000

24.     Jaro-Barotac Viejo Road, Iloilo    54,500,000

25.     Zarraga-Passi Road, Iloilo              15,000,000

26.    Carvasona-Dao Road, Iloilo and  Capiz         33,000,000

27.    Bailan-Estancia Road, Capiz and Iloilo            10,200,000

28.     Bacolod-Kabankalan Road,  
    Negros Occidental    143,000,000

29.    Vallehermoso-Sibucao Road,
    Negros Occidental       29,500,000

30.    Silay-Fabrica Road, Negros Occidental    16,500,000

31.    Fabrica-San Carlos Road,
    Negros Occidental      11,300,000

32.    Digos Cotabato Road, Cotabato
    and Davao del Sur     30,000,000

33.    General Santos-Cotabato Road,
    South Cotabato and Maguindanao    30,000,000

34.    Iligan-Cagayan de Oro-Butuan
    Road, Iligan City, Misamis Oriental
    and Agusan del Norte    100,000,000

35.    Polloc Port Road, Maguindanao    10,000,000

36.    Ganasi-Malabang-Karomatan
    Kapatagan Road, Lanao del Norte
    and Lanao del Sur    50,000,000

37.    Davao-Cotabato-Zamboanga
    City Road, Davao del Sur, South 
    Cotabato, Maguindanao, Lanao del Sur,
    Lanao del  Norte, Zamboanga del
    Sur and  Zamboanga City      200,000,000

38.    Bukidnon Road Package, Bukidnon    45,000,000

39.     Cotabato Road Package, Cotabato     50,000,000

40.     Mindanao Secondary and Feeder
    Roads, Misamis Oriental, South
    Cotabato  and Agusan del Norte      200,000,000

41.     Third and Fourth IBRD Road
    Package    400,000,000

42.     Puerto-Kibawe Road Bukidnon      15,000,000

43.     Davao-Surigao Road, Davao
    Oriental and Surigao del Sur    200,000,000

44.     Samar Integrated Area
    Development Road Project           150,000,000

45.     Restoration and Rehabilitation
    Program     300,000,000

46.     Various Major Bridges

47.    Improvement of National Roads
    and Bridges     250,000,000
    a.     Luzon     200,000,000
    b.     Visayas     150,000,000
    c.     Mindanao     100,000,000

48.     Developmental Roads    350,000,000

49.    Feeder, Barangay and
    Secondary roads and Bridges    500,000,000

50.     Provincial, city and Municipal Roads    200,000,000

51.     Rural Roads                 400,000,000

52.     Various Regional Equipment  
    Depots      60,000,000

53.     Various National Roads    400,000,000

54.    Road Rights-of-Way    250,000,000

Total for Highways    P7,086,000,000

(b)    Railways
1.    Development of FTI Complex
    Taguig, Rizal       17,000,000

Total for Railways     P17,000,000

(c)    Airports andr Navigation
1.    Baguio Cityrport    23,000,000

2.     San Fernandorport, La Union     12,500,000

3.     Bagabagrport, Nueva Vizcaya     12,000,000

4.     Cauayanrport, Isabela    18,100,000

5.     Tuguegaraorport, Cagayan    13,200,000

6.     Corregidorrport    12,000,000

7.     Plaridelrport, Bulacan    19,000,000

8.    Manila Internationalrport    296,000,000

9.     San Joserport, Mindoro
    Occidental    14,000,000

10.     Marinduquerport, Marinduque    15,000,000

11.     Mamburaorport, Mindoro
    Occidental      15,000,000

12.     Lubangrport, Mindoro
    Occidental     12,000,000

13.     Bacolodrport, Negros
    Occidental    129,400,000

14.     Iloilorport, Iloilo     22,200,000

15.     Kaliborport, Aklan      12,000,000

16.     Dumagueterport, Negros
    Oriental     13,200,000

17.     Lahugrport, Cebu City                 19,000,000

18.     Catarmanrport, Northern
    Samar      14,600,000

19.     Cagayan de Ororport,
    Cagayan de Oro City     37,500,000

20.     Ozamisrport, Misamis
    Occidental

21.     Tandagrport, Surigao del Sur    15,200,000

22.     Cotabatorport, Cotabato City    12,000,000

23.     Allah Valleyrport, Cotabato     15,000,000

24.    Lal-lorport, Cagayan                  15,000,000

25.     Lucenarport                10,000,000

26.     Coron (Busuanga)rport,
    Palawan       28,800,000

27.     Naga (Pili)rport                      14,300,000

28.     Catbaloganrport, Samar    15,000,000

29.     Biliranrport               15,000,000

30.     Jolorport, Sulu                       12,500,000

31.     Iligan (Maria Cristina)rport      10,000,000

32.     Matirport      18,500,000

33.     Various Nationalrports    255,000,000

Total forrports andr Navigation    P1,165,100,000

(d)    Portworks and Maritime
1.     Batangas Bay Port, Port
    Development Project, Batangas    90,500,000

2.     Ferry Service Facilities along
    Pan-Philippine Highway    20,000,000

3.     Port  of Catbalogan, Samar    19,900,000

4.     Acquisition of Dredging  
    Equipment and Attendant Plant, Port
    Operations Equipment, Spare parts for
    Existing Dredges      99,500,000

5.    Port of Cotabato (Polloc)    104,000,000

6.    Port of Davao, Davao City    18,000,000

7.    Port of General Santos,
    General Santos City      16,100,000

8.     Various National Ports      80,000,000

9.     Various Municipal Ports      72,000,000

Total for Portworks and Maritime    P520,000,000

(e)    Telecommunications
1.     Extension of Municipal Rural
    Telegraph Service (EMRTS),
    Regional      30,200,000

2.     Improvement/Development/
    Expansion of National Networks    482,500,000

3.     Training Development Project
    (TDP), Regional      11,200,000

Total for Telecommunications    523,900,000

TOTAL FOR TRANSPORTATION
AND COMMUNICATIONS    P9,312,000,000

TITLE B — WATER RESOURCES DEVELOPMENT

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:cralaw:red

(a)    Irrigation
1.    Ilocos Norte Integrated
    Development project    180,400,000

2.     Leyte Integrated Development
    project       53,000,000

3.    Chico River Basin project (Stage
    I), Isabela and Kalinga-Apayao    210,300,000

4.    Cagayan Integrated
    Development Project    105,800,000

5.    Tago River Irrigation project,
    Surigao del Sur     81,100,000

6.    Davao del Norte Irrigation
    Project (Saug-Compostela)     26,500,000

7.    Samar Integrated Area  
    Development, Irrigation projects, Samar    30,400,000

8.     Jalaur River Multi-Purpose
    Project, Iloilo    472,100,000

9.     Pulangui River (Valencia);
    Bukidnon      39,000,000

10.    Casecnan Trans-River Basin      30,000,000

11.    Pump Irrigation Projects      20,000,000

12.    Davao del Norte Irrigation
    project II (Libuganon-Lasang)    170,000,000

13.    Wahig-Pamacsalan, Bohol    85,000,000

14.    Agusan II Project (Cabadbaran,
    Agusan del Norte and Solibao-Gibong,
    Agusan del Sur     79,800,000

15.     Allah Valley, South Cotabato    100,000,000

16.     Kabulnan-Labu-Labu
    Maguindanao      80,800,000

17.    National Irrigation System
    Improvement    598,300,000

18.     Various National Irrigation
    Projects    504,000,000

19.     Various Communal Irrigation
    Projects    223,000,000

Total for irrigation      P3,089,500,000

(b)    Water Supply and Sewerage
1.    Metro Manila Water Supply and
    Sewerage System
    a.    Underground Water Supply
    Program for Outlaying Areas of
    MWSS Service Areas      75,000,000

2.     Various Provincial Waterworks
    Projects    200,000,000

3.     Various Artesian Wells and
    Springs Projects    100,000,000

Total for Water Supply and
Sewerage      P375,000,000

(c)    Flood Control and Drainage
1.     Tarlac River Control, Tarlac     45,000,000

2.     Gumain-Porac-Caulaman River
    Control, Pampanga     16,900,000

3.     Asingan-San Manuel Levee with
    closure of Chico River (Gap. No. 1),
    Pangasinan     20,000,000

4.     Samar Integrated Area
    Development Flood Control and 
    Drainage Projects     30,000,000

5.     Schistosomiasis River Control
    and Related projects     40,000,000

6.     Lake Mainit Drainage, Agusan
    del Norte       31,800,000

7.     Mag-asawang-Tubig River
    control, Oriental Mindoro    20,000,000

8.     Tagoloan River Control Misamis
    Oriental     30,000,000

9.     Parañaque Spillway, Parañaque,
    Rizal    188,000,000

10.     Napindan Hydraulic Control
    Structure, Rizal    100,000,000

11.     Mindoro Schistosomiasis River
    Control Related Projects, Mindoro
    Occidental      40,000,000

12.     Agno River control, Pangasinan    150,900,000

13.     Cotabato River Control
    Maguindanao      68,700,000

14.     Agusan River Control Butuan
    City, Agusan province and Davao del
    Norte    113,000,000

15.     Quidalos-Butadon River
    Control, Kapatagan, Lanao del Norte      10,000,000

16.     Parua River Control Bamban
    and Concepcion, Tarlac     46,400,000

17.     Rio Chico River Control
    Pampanga and Nueva Ecija     94,400,000

18.     Banila River Control Umingan,
    Pangasinan      15,000,000

19.     San Fernando-Abacan RC,
    Pampanga      13,600,000

20.     Mangato River Control Laoag
    City      10,000,000

21.     Ilog Hilabangan River Control,
    Negros Occ.      28,000,000

22.     Sablayan Flood Control,
    Mindoro Occidental      30,000,000

23.     Calumpit Pumping Stations and
    Protection Dikes, Calumpit, Bulacan      15,000,000

24.    Penaranda Flood Control
    Gapan, Penaranda and San Leonardo,
    Nueva Ecija     30,000,000

25.     Ambayaon River Control, San
    Nicolas, Pangasinan      20,000,000

26.    Bugallon-Labrador Earthdike,
    Pangasinan    25,000,000

27.     Amburayan River Control,
    Bangar and Supiden, La Union    12,000,000

28.     Pasig-Marikina Bank Protection
    and River Wall, Pasig, Marikina, San
    Mateo and Montalban, Rizal    50,000,000

29.     Albay Flood Control project,
    Albay    21,000,000

30.     Irosin Valley Drainage, Sorsogon    10,000,000

31.    Labo River Control Project,
    Camarines Norte     10,000,000

32.     Various Flood Control and
    Drainage project, Nationwide    500,000,000

33.     Repair and maintenance of
    Existing Flood Control and Drainage
    Facilities nationwide    100,000,000

34.     Preliminary Engineering and
    Survey of Proposed New Urgent Flood
    Control and Drainage projects, Nationwide    150,000,000

35.    Various Dredging project    150,000,000

Total for Flood Control and Drainage    P2,234,700,000

(d)    Multi-Purpose projects
1.     Marikina Multi-purpose Project,
    Rizal     12,000,000

2.     Cotabato-Agusan River Basin
    Development Project     24,000,000

3.     Bicol River Basin Development Project     98,000,000

4.     Central Luzon Basin
    Development project      20,000,000

5.     Agno River Basin
    Development project    128,000,000

6.     Cagayan valley Basin
    Development Project     51,000,000

7.     Various Multi-purpose
    Impounding Reservoir projects    200,000,000

Total for Multi-purpose projects    P533,000,000

TOTAL FOR WATER RESOURCES
DEVELOPMENT    P6,232,200,000

TITLE C — RURAL ELECTRIFICATION

1.    For the construction, improvement, rehabilitation, reconstruction, completion, including project preparation, and the purchase of necessary construction materials and supplies, of various electrification projects:cralaw:red

(a)    Rural Electrification
1.     Various Rural Electrification
    Project    P320,000,000

TOTAL FOR RURAL
ELECTRIFICATION    P320,000,000

TITLE D — BUILDINGS

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:cralaw:red

(a)    National Buildings
1.    Philippine Council for Agricultural
    Research (PCAR) Building,
    Los Baños, Laguna and Regional Office     16,000,000

2.    Commission on Audit (COA)
    Building, Quezon City    12,000,000

3.    Professional Regulation
    Commission Building, Quezon City     20,000,000

4.     Philippine Atomic Energy
    Commission Building, Quezon City     16,000,000

5.    National Census and Statistics
    Office Building, Metro Manila     40,000,000

6.     Naval Institute of Technology,
    Leyte     10,000,000

7.     Department of Public Works
    Transportation and Communication
    Buildings, Quezon City    300,000,000

8.     Department of Education and
    Culture Building, Metro Manila      84,000,000

9.     Department of Labor Building,
    Metro Manila      70,000,000

10.     National Economic and
    Development Authority Buildings    100,000,000

11.    Batasang Bayan      93,500,000

12.    Civil Service Commission      25,500,000

13.    Department of Social Services
    Development    71,000,000

14.    Department of Local
    Government and Community
    Development    33,000,000

15.     Department of Health    71,000,000

16.     Department of Youth and Sports
    Development      4,500,000

17.    Department of Natural
    Resources    140,200,000

18.     Budget Commission     14,700,000

19.     Department of Foreign Affairs     14,300,000

20.     Department of Finance    100,900,000

21.    Various National and Related
    Buildings    P500,000,000

Total for National Buildings    P1,736,600,000

(b)    Hospital and Sanitaria
1.     Paulino H. Garcia Memorial
    Training Center, Cabanatuan City      14,000,000

2.     San Lazaro Hospital, Sta. Cruz
    Manila      11,500,000

3.     Major Hernando E. Marcos
    Regional Hospital, Bayombong,
    Nueva Ecija      14,500,000

4.    D. Romualdez Provincial
    Hospital, Tacloban City         14,500,000

5.     Davao Del Sur Provincial
    Hospital, Digos     12,600,000

6.     Rural Health Units and Related
    Buildings    100,000,000

7.     Various Hospitals and Related
    Buildings    450,000,000

Total for Hospitals and
Related Buildings    P617,100,000

(c)    Elementary School Buildings

1.     Various Schools and Related
    Buildings    475,000,000

Total for Elementary School
Buildings    P475,000,000

(d)    Secondary School Buildings
1.    Various Barangay High School
    Buildings      88,000,000

2.    Various Other School Buildings
    for joint projects of the Department of
    Education and Culture with other agencies      36,100,000

Total for Secondary School Buildings    P124,100,000

(e)    Other Public Buildings and
Miscellaneous Public Works
1.    Various Other Public Buildings
    and Miscellaneous Public Works    100,000,000

Total for Other Public Buildings and
Miscellaneous Public Works    P100,000,000

TOTAL FOR BUILDINGS    P3,052,800,000
TITLE E — SHORE PROTECTION

(a)    Various Sea Walls     20,000,000
    Total for Shore Protection    P20,000,000

TOTAL FOR Section I    P18,973,000,000

Section 2.    Miscellaneous 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, subject to the provisions hereinafter set forth, for the purpose mentioned hereunder:cralaw:red

(a)     For the maintenance
and/or repair of public buildings,
shrines, and monuments, including
ground and outside installations:
Provided, That, so much as may be
necessary but not exceed P1,000,000
of this sum shall be made available
for Malacañang buildings and
Mansion and Guest house in Baguio    P35,000,000

(b)     For the maintenance and
emergency repair of existing flood
control and drainage structures    P50,000,000

(c)     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

(d)     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 so
specifications and contract
documents and other related
activities that are necessary prior to
actual construction, as may be
authorized by the National Economic
and Development Authority upon
recommendation of department
heads concerned    P50,000,000

(e)     For the acquisition of
necessary rights-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    P100,000,000

(f)     For the construction of
warehouses, Grains Center and
related facilities necessary for the
implementation of programs of the
National Grains Authority and other
governmental agencies    P100,000,000

(g)    For the implementation of
the Philippine-Australian
Development Assistance Program    P75,000,000

TOTAL FOR Section 2     P510,000,000

SPECIAL PROVISIONS chanroblesvirtualawlibrary

Section 3.    Program of Work Required Before Prosecuting Public Works. — Before prosecuting any public works projects, 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 cost of more than P500,000; by the Bureau Head concerned for any project with an estimated cost of more than P200,000, but more than P500,000; by the Regional Director concerned for any project with an estimated cost of more than P50,000 but not more than P200,000; and by the District or City Engineer concerned for case shall construction funds be remitted to filed office or construction work on a project be started before the program of work is approved.

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: Provided, That for projects with an estimated cost of P100,000 or more, the PERT/CPM technique shall be used and a time-scaled 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 be amended except in case of unforeseen 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 deficient 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. — 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 anticipated, deduction for rental shall be made at the time of the release of funds but such deduction shall not exceed to 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. chanroblesvirtualawlibrary

Section 5.    Preference to Local labor. — In the execution and construction of any public works project, the labor requirements shall be filed 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. — 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 techniques to be employed in terms of the criteria in the preceding sentence.

The selected construction techniques shall be made part 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. — 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. — For any public works project with an estimated cost of P200,000 or more, 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 estimated cost for the preparation or review of the project or plans and specifications devised by the bureau or office concerned, and/or for a fee not exceeding nine per centum of the estimated total project cost to undertake the detailed, design, including plans and specifications, and/or 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. — Any appropriation herein authorized for construction of any project shall be understood to include the acquisition or purchase of sites whenever acquisition or purchase is necessary for the prosecution of the project.

Section 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 project with a cost of Two Hundred Thousand Pesos (P200,000) or less may be done by administration by the bureau of agency concerned without benefit of public bidding subject to the provisions of Section 5 and Section 6 hereof. Public works projects with a cost of more than Two hundred Thousand Pesos (P200,000) shall a cost of more than Two Hundred Thousand Pesos (P200,000) 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 P200,000 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. — 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 the constructions, 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 of 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 work as provided under Section 3 hereof.

Section 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 projects implementation which shall include engineering, administrative and other overhead expenses incidental thereto: Provided, That such expenditures shall be reflected in Section 3 of this Decree and shall not exceed five per centum of the amount actually released for the project.

Section 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 treasurer 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.    Interchangeability of Financing Methods. — Upon the 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. — 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.    Reports. — The Department Head concerned shall submit an annual accomplishment report to 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 Measure.

Section 17.    Effectivity. — This Decree shall take effect immediately.

Done in the City of Manila, this 15th day of December, in the year of Our Lord, nineteen hundred and seventy-six.   


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