BATAS PAMBANSA Blg. 13
An Act Appropriating Funds for Public Works and Highway Projects and for Other Purposes
Section 1. Appropriation of funds - The following sums, or so much thereof as may be necessary, are hereby appropriated out of the General Fund in the National Treasury, including the proceeds of authorized bond issues and/or loans and grants from local or foreign institutions, to implement public works and highway projects of the National Government, as specified hereunder:
Title A Transport Projects
For the construction, improvement, rehabilitation, reconstruction, and/or completion of the following projects, including detailed engineering and acquisition of sites, equipment, materials, supplies, and services to be used directly for the projects"
(a) HIGHWAYS
| National Capital Region |
|
| 1. Manila South Diversion Road Interchange (Pasay City) |
₱20,000,000 |
| 2. Circumferential Road C-3 and Radial Road R-10 (Regionwide) |
100,000,000 |
| 3. Various local roads in support to Regional Development Plans (Regionwide) |
50,000,000 |
| 4. Various national roads and bridges (Regionwide) |
80,000,000 |
| 5. Road restoration and rehabilitation program (Regionwide) |
50,000,000 |
| Region I |
|
| 6. Rosario-Laoag Road (La Union, Ilocos Sur and Ilocos Norte) |
100,000,000 |
| 7. Laoag-Allacapan Road (Ilocos Norte) |
50,000,000 |
| 8. Ilocos Norte Rural Development Project (Ilocos Norte) |
50,000,000 |
| 9. Luzon Road Package, Olongapo- Bugallon (Pangasinan) |
50,000,000 |
| 10. Various projects roads in support to Regional Development Plans (Regionwide) |
10,000,000 |
| 11. Major bridges (Regionwide) |
10,000,000 |
| 12. Various national roads and bridges (Regionwide) |
15,000,000 |
| 13. Road restoration and rehabilitation program (Regionwide) |
20,000,000 |
| Region II |
|
| 14. Ilagan-Palanan Road (Isabela) |
50,000,000 |
| 15. Chico Irrigation Project, road component (Isabela) |
30,000,000 |
| 16. Laoag-Allacapan Road (Cagayan) |
50,000,000 |
| 17. Various local roads in support to Regional Development Plans (Regionwide) |
10,000,000 |
| 18. Major bridges (Regionwide) |
10,000,000 |
| 19. Various national roads (Regionwide) |
15,000,000 |
| 20. Road restoration and rehabilitation program (Regionwide) |
20,000,000 |
| Region III |
|
| 21. Capaz-Botolan Road (Tarlac and Zambales) |
50,000,000 |
| 22. Luzon Road Package, Olongapo- Bugallon (Zambales) |
80,000,000 |
| 23. Various local roads in support to Regional Development Plans (Regionwide) |
10,000,000 |
| 24. Major bridges (Regionwide) |
10,000,000 |
| 25. Various national roads (Regionwide) |
15,000,000 |
| 26. Road restoration and rehabilitation program (Regionwide) |
20,000,000 |
| Region IV |
|
| 27. Mindoro Integrated Rural Development Project, road component (Mindoro Oriental and Mindoro Occidental |
60,000,000 |
| 28. Luzon Road Package, Tagaytay- Batangas Road (Tagaytay City and Batangas) |
80,000,000 |
| 29. Various local roads in support to Regional Development Plans (Regionwide) |
25,000,000 |
| 30. Major bridges (Regionwide) |
20,000,000 |
| 31. Various national roads (Regionwide) |
20,000,000 |
| 32. Road restoration and rehabilitation program (Regionwide) |
30,000,000 |
| Region V |
|
| 33. Third and Fourth IBRD Package (Albay) |
30,000,000 |
| 34. Various local roads in support to Regional Development Plans (Regionwide) |
10,000,000 |
| 35. Major bridges (Regionwide) |
10,000,000 |
| 36. Various national roads (Regionwide) |
15,000,000 |
| 37. Road restoration and rehabilitation program (Regionwide) |
20,000,000 |
| 38. Secondary and feeder roads, Bicol River Basin (Camarines Sur) |
80,000,000 |
| Region VI |
|
| 39. Third and Fourth IBRD Package (Iloilo, Capiz, Aklan and Negros Occidental) |
250,000,000 |
| 40. Various local roads in support to Regional Development Plans (Regionwide) |
20,000,000 |
| 41. Major bridges (Regionwide) |
20,000,000 |
| 42. Various national roads (Regionwide) |
25,000,000 |
| 43. Road restoration and rehabilitation program (Regionwide) |
20,000,000 |
| Region VII |
|
| 44. Third and Fourth IBRD Package (Cebu) |
120,000,000 |
| 45. Various local roads in support to Regional Development Plans (Regionwide) |
10,000,000 |
| 46. Major bridges (Regionwide) |
10,000,000 |
| 47. Various national roads (Regionwide) |
15,000,000 |
| 48. Road restoration and rehabilitation program (Regionwide) |
20,000,000 |
| Region VIII |
|
| 49. Samar Integrated Rural Development Project, road component 200,000,000 |
|
| 50. Various local roads in support to Regional Development Plans (Regionwide) |
10,000,000 |
| 51. Major bridges (Regionwide) |
10,000,000 |
| 52. Various national roads (Regionwide) |
15,000,000 |
| 53. Road restoration and rehabilitation program (Regionwide) |
20,000,000 |
| 54. Palo-Carigara-Ormoc-Maasim Sogod Road (Leyte and Leyte del Sur) |
100,000,000 |
| Region IX |
|
| 55. Various local roads in support to Regional Development Plans (Regionwide) |
10,000,000 |
| 56. Major bridges (Regionwide) |
10,000,000 |
| 57. Various national roads (Regionwide) |
20,000,000 |
| 58. Road restoration and rehabilitation program (Regionwide) |
20,000,000 |
| Region X |
|
| 59. Mindanao secondary and feeder roads (Misamis Oriental and Agusan del Norte) |
100,000,000 |
| 60. Various local roads in support to Regional Development Plans Regionwide) |
10,000,000 |
| 61. Major bridges (Regionwide) |
10,000,000 |
| 62. Various national roads (Regionwide) |
15,000,000 |
| 63. Road restoration and rehabilitation program (Regionwide) |
20,000,000 |
| Region XI |
|
| 64. Mindanao secondary and feeder roads (South Cotabato) |
150,000,000 |
| 65. Various local roads in support to Regional Development Plans (Regionwide) |
10,000,000 |
| 66. Major bridges (Regionwide) |
10,000,000 |
| 67. Various national roads (Regionwide) |
10,000,000 |
| 68. Road restoration and rehabilitation program (Regionwide) |
20,000,000 |
| Region XII |
|
| 69. Mindanao secondary and feeder roads (Sultan Kudarat) |
₱ 45,000,000 |
| 70. Various local roads in support to Regional Development Plans Regionwide) |
15,000,000 |
| 71. Major bridges (Regionwide) |
15,000,000 |
| 72. Various national roads (Regionwide) |
20,000,000 |
| 73. Road restoration and rehabilitation program (Regionwide) |
25,000,000 |
| Nationwide |
|
| 74. Major bridges |
40,000,000 |
| 75. Road restoration and rehabilitation program |
80,000,000 |
| TOTAL FOR HIGHWAYS |
₱2,900,000,000 |
(b) RAILWAYS
| National Capital Region |
|
| Light Rail Transit System |
₱200,000,000 |
| TOTAL FOR RAILWAYS |
₱200,000,000 |
(c) PORTS
| Region I |
|
| 1. Sual Fishing Port Project (Pangasinan) |
37,000,000 |
| Region IV |
|
| 2. Lucena Fishing Port Project (Camarines Sur) |
99,000,000 |
| Region V |
|
| 3. Camaligan Fishing Port Project (Camarines Sur) |
60,000,000 |
| Region VI |
|
| 4. Philippine Rural Infrastructure Project, port components (San Jose de Buenavista, Antique; Culasi, Capiz; and Dumaguit, Aklan) |
32,000,000 |
| 5. Iloilo Fishing Port Project (Iloilo City) |
161,000,000 |
| Region VIII |
|
| 6. Samar Integrated Rural Development Project, port components (San Jose, Northern Samar; Catbalogan, Samar; and Guiuan and Dolores, Eastern Samar) |
12,000,000 |
| Region IX |
|
| 7. Zamboanga Fishing Port Project (Zamboanga City) |
72,000,000 |
| Region X |
|
| 8. Port of Cagayan de Oro (Cagayan de Oro City) |
63,000,000 |
| Region XI |
|
| 9. Port of Davao (Davao City and Davao del Sur) |
53,000,000 |
| TOTAL FOR PORTS |
₱589,000,000 |
(d) AIRPORT AND AIR NAVIGATIONAL FACILITIES
| Region I |
|
| 1. Laoag International Airport (Laoag City) |
46,000,000 |
| Region IV |
|
| 2. Puerto Princesa Airport (Puerto Princesa City) |
13,000,000 |
| Region VI |
|
| 3. Kalibo Airport (Aklan) |
10,000,000 |
| Region VII |
|
| 4. Dumaguete Airport (Dumaguete City) |
11,000,000 |
| Region IX |
|
| 5. Pagadian Airport (Pagadian City) |
11,000,000 |
| 6. Cagayan de Sulu Airport (Tawi-Tawi) |
11,000,000 |
| Region XI |
|
| 7. General Santos Airport (General Santos City) |
22,000,000 |
| 8. Bislig Airport (Surigao del Sur) |
10,000,000 |
| TOTAL FOR AIRPORTS AND AIR NAVIGATION FACILITIES |
₱134,000,000 |
| TOTAL FOR TRANSPORT |
₱3,823,000,000 |
Title B Water Resources Projects
For the construction, improvement, rehabilitation reconstruction, and/or completion of the following projects, including detailed engineering and acquisition of sites, equipment, materials, supplies, and services to be used directly for the projects:
(a) IRRIGATION
| Region I |
|
| 1. Ilocos Norte Integrated Development Project, including Palsiguan River and Quiaoit (Quiom-May palig) |
|
| Multi-Purpose Projects, irrigation component (Ilocos Norte) |
₱705,000,000 |
| 2. Philippine Rural Infrastructure Project, irrigation component (Abra) |
12,000,000 |
| 3. National Irrigation System, Improvement Project (Regionwide) |
20,000,000 |
| Region II |
|
| 4. Chico River Basin Project, irrigation component (Isabela and Kalinga Apayao) |
540,000,000 |
| 5. Upper Pampanga River Project Watershed Development (Nueva Vizcaya) |
15,000,000 |
| 6. Cagayan Integrated Area Development Project, irrigation component (Cagayan) |
65,000,000 |
| 7. Philippine Rural Infrastructure Project, irrigation component (Kalinga Apayao) |
19,000,000 |
| 8. National Irrigation System Improvement Project (Regionwide) |
20,000,000 |
| Region III |
|
| 9. Upper Pampanga River Project Watershed Development Project (Nueva Ecija) |
15,000,000 |
| 10. Tarlac Irrigation System Improvement Project (Tarlac) |
26,000,000 |
| Region IV |
|
| 11. Laguna de Bay Development Project irrigation component (Mabitac, Pag- sanjan, Cabuyao, and San Pedro, Laguna; and Baras, Tanay, and Pililla, Rizal; and Cavite) |
70,000,000 |
| 12. Amnay (Asis River) |
|
| Irrigation Project (Mindoro Occidental) |
18,000,000 |
| 13. National Irrigation Systems Improvement Project (Regionwide) |
20,000,000 |
| 14. Mindoro Integrated Area Develop- ment Project, irrigation component (Mindoro Oriental and Mindoro Occidental) |
22,000,000 |
| 15. Upper Pampanga River Project Watershed Development (Quezon) |
15,000,000 |
| Region V |
|
| 16. Baliuag-San Vicente Area Develop ment Project, irrigation component (Camarines Sur) |
90,000,000 |
| 17. Rinconada Area Development Pro ject, irrigation component (Cama- rines Sur) |
42,000,000 |
| 18. Bula-Minalabac Irrigation Project Camarines Sur) |
22,000,000 |
| 19. National Irrigation Systems Improvement Project (Regionwide) |
20,000,000 |
| Region VI |
|
| 20. Philippine Rural Infrastructure Project, irrigation component (Aklan, Antique, and Capiz) |
27,000,000 |
| 21. National Irrigation Systems Improvement Project (Regionwide) |
20,000,000 |
| Region VII |
|
| 22. Philippine Rural Infrastructure Pro- ject, irrigation component (Bohol) |
19,000,000 |
| Region VIII |
|
| 23. Samar Integrated Rural Development Project, irrigation component (Northern Samar) |
142,000,000 |
| 24. National Irrigation Systems Improvement Project (Regionwide) |
20,000,000 |
| Region IX |
|
| 25. Philippine-Australian Development Project, irrigation component (Zamboanga del Sur) |
140,000,000 |
| 26. National Irrigation Systems Improvement Project (Regionwide) |
20,000,000 |
| Region X |
|
| 27. Agusan del Sur Irrigation Project (Bunawan-Salvacion, Agusan del Sur) |
50,000,000 |
| 28. Pulangui River Irrigation Project Valencia, Bukidnon) |
39,000,000 |
| 29. Agusan II Irrigation Project (Cabad- baran, Agusan del Norte; and Soli- bao-Gibong, Agusan del Sur) |
60,000,000 |
| 30. National Irrigation System Improve- ment Project (Regionwide) |
20,000,000 |
| Region XI |
|
| 31. Tago River Irrigation Project (Surigao del Sur) |
138,000,000 |
| 32. Davao del Norte Irrigation Project II (Libuganon-Lasang, Davao del Norte) |
78,000,000 |
| 33. National Irrigation System Improve ment Project (Regionwide) |
20,000,000 |
| 34. Allah Valley Irrigation Project (South Cotabato) |
220,000,000 |
| Region XII |
|
| 35. National Irrigation Systems Improvement Project (Regionwide) |
20,000,000 |
| TOTAL FOR IRRIGATION |
₱2,663,000,000 |
(b) FLOOD CONTROL AND DRAINAGE
| National Capital Region |
|
| 1. Manggahan Floodway (Rizal) |
₱132,000,000 |
| 2. Napindan Hydraulic Control Structure, flood control component (Rizal) |
66,000,000 |
| 3. Marikina Multi-purpose Project, flood control component (Rizal) |
88,000,000 |
| Region I |
|
| 4. Tina-Gasgas Flood Control and Twin Impounding Reservoirs (Ilocos Norte) |
200,000,000 |
| 5. Catchment basins and impounding reservoirs, flood control component (Regionwide) |
50,000,000 |
| 6. Construction and reconstruction of railroad and highway bridges with inadequate waterways (Regionwide) |
75,000,000 |
| 7. Dredging of main rivers and outlets (Regionwide) |
15,000,000 |
| 8. River training and bank protection of various rivers (Regionwide) |
5,000,000 |
| 9. Local flood control, drainage and related activities (Regionwide) |
5,000,000 |
| Region II |
|
| 10. Magat Multi-Purpose Project, flood control component (Isabela) |
200,000,000 |
| 11. Cagayan River Control (Cagayan and Isabela) |
82,000,000 |
| 12. Matuno Food Control and Impounding Reservoir (Nueva Vizcaya) |
100,000,000 |
| 13. Sta. Cruz Flood Control and Impounding reservoirs, flood control component (Regionwide) |
40,000,000 |
| 14. Catchment basins and impounding reservoirs, flood control component (Regionwide) |
40,000,000 |
| 15. Dredging of main rivers and outlets (Regionwide) |
3,000,000 |
| 16. River training and bank protection of various rivers (Regionwide) |
35,000,000 |
| 17. Local flood control, drainage and related activities (Regionwide) |
12,000,000 |
| Region III |
|
| 18. Labangan Floodway (Bulacan) |
10,000,000 |
| 19. Catchment basins and impounding reservoirs including sabo works, flood control component (Regionwide) |
15,000,000 |
| 20. Construction and reconstruction of railroad and highways bridges with inadequate waterways (Regionwide) |
150,000,000 |
| 21. Dredging of main rivers and outlets Regionwide) |
50,000,000 |
| 22. River training and bank protection of various rivers (Regionwide) |
30,000,000 |
| 23. Local flood control, drainage and related activities (Regionwide) |
20,000,000 |
| Region IV |
|
| 24. Mindoro Flood Control and Schistosomiasis Control Project (Mindoro Oriental) |
12,000,000 |
| 25. Cavite Flood Control and Drainage (Cavite) |
15,000,000 |
| 26. Catchment basins and impounding reservoirs, flood control component (Regionwide) |
3,000,000 |
| 27. Dredging of main rivers and outlets (Regionwide) |
4,000,000 |
| 28. River training and bank protection of various rivers (Regionwide) |
3,000,000 |
| 29. Local flood control, drainage and related activities (Regionwide) |
2,000,000 |
| Region V |
|
| 30. Mayon Volcano Sabo Works and Related Projects (Albay and Legaspi City) |
18,000,000 |
| 31. Sorsogon Schistosomiasis Control Project (Sorsogon) |
10,000,000 |
| 32. Lake Bato-Pantao Bay Diversion Channel (Camarines Sur) |
230,000,000 |
| 33. Catchment basins and impounding reservoirs, including sabo works, flood control component (Regionwide) |
50,000,000 |
| 34. Construction and reconstruction of railroad and highway bridges with inadequate waterways (Regionwide) |
50,000,000 |
| 35. Dredging of main rivers and outlets (Regionwide) |
20,000,000 |
| 36. River training and bank protection of various rivers (Regionwide) |
10,000,000 |
| 37. Local flood control, drainage and related activities (Regionwide) |
10,000,000 |
| Region VI |
|
| 38. Panay River Control (Capiz and Roxas City) |
18,000,000 |
| 39. Catchment basins and impounding reservoirs, flood control and component (Regionwide) |
20,000,000 |
| 40. Dredging of main rivers and outlets (Regionwide) |
8,000,000 |
| 41. River training and bank protection of various rivers (Regionwide) |
6,000,000 |
| 42. Local flood control, drainage and related activities (Regionwide) |
4,000,000 |
| Region VII |
|
| 43. Catchment basins and impounding reservoirs, including sabo works, flood control component (Regionwide) |
30,000,000 |
| 44. Dredging of main rivers and outlets (Regionwide) |
8,000,000 |
| 45. River training and bank protection of various rivers (Regionwide) |
4,000,000 |
| 46. Local flood control, drainage and related activities (Regionwide) |
8,000,000 |
| Region VIII |
|
| 47. Saba Basin Schistosomiasis Control and Drainage Project (Leyte) |
17,000,000 |
| 48. Catchment basins and impounding reservoirs, flood control component (Regionwide) |
30,000,000 |
| 49. Dredging of main rivers and outlets (Regionwide) |
8,000,000 |
| 50. River training and bank protection of various rivers (Regionwide) |
3,000,000 |
| 51. Local flood control, drainage and related activities (Regionwide) |
9,000,000 |
| Region IX |
|
| 52. Saaz River Control and Drainage (Zamboanga City) |
10,000,000 |
| 53. Catchment basins and impounding reservoirs, flood control component (Regionwide) |
15,000,000 |
| 54. Dredging of main rivers and outlets (Regionwide) |
5,000,000 |
| 55. River training and bank protection of various rivers (Regionwide) |
6,000,000 |
| 56. Local flood control, drainage and related activities (Regionwide) |
4,000,000 |
| Region X |
|
| 57. Catchment basins and impounding reservoirs, flood control component (Regionwide) |
120,000,000 |
| 58. Dredging of main rivers and outlets (Regionwide) |
30,000,000 |
| 59. River training and bank protection of various rivers (Regionwide) |
30,000,000 |
| 60. Local flood control, drainage and related activities (Regionwide) |
20,000,000 |
| Region XI |
|
| 61. Davao River Control, drainage and related projects (Davao City) |
52,000,000 |
| 62. Tuganay River Control (Carmen Davao del Norte) |
15,000,000 |
| 63. Catchment basins and impounding reservoirs, flood control component (Regionwide) |
40,000,000 |
| 64. Dredging of main rivers and outlets (Regionwide) |
10,000,000 |
| 65. River training and bank protection of various rivers (Regionwide) |
10,000,000 |
| 66. Local flood control, drainage and related activities (Regionwide) |
10,000,000 |
| Region XII |
|
| 67. Catchment basins and impounding reservoirs, flood control component (Regionwide) |
200,000,000 |
| 68. Dredging of main rivers and outlets (Regionwide) |
65,000,000 |
| 69. River training and bank protection of various rivers (Regionwide) |
30,000,000 |
| 70. Local flood control, drainage and related activities (Regionwide) |
30,000,000 |
| TOTAL FOR FLOOD CONTROL AND DRAINAGE |
₱2,930,000,000 |
(c) WATER SUPPLY
| 1. Rural Water Supply Communal Systems (Nationwide) |
40,000,000 |
| TOTAL FOR WATER SUPPLY |
₱40,000,000 |
| TOTAL FOR WATER RESOURCES |
₱5,633,000,000 |
| GRAND TOTAL |
₱9,456,000,000 |
Section 2. Detailed Plans and programs of Work - Prior to the actual construction, improvement, rehabilitation and/or reconstruction of the projects covered in whole or in part by appropriations in this Act, approval of detailed engineering plans and programs of work by the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, shall be obtained for every project with an estimated cost greater than ₱1,000,000; by the Bureau Head concerned for every project with an estimated cost greater than ₱500,000 but not more than ₱1,000,000; by the Regional Director concerned for every project with an estimated cost greater than ₱200,000 but not more than ₱500,000; and by the District or City Engineer concerned for every project with an estimated cost of ₱200,000 or less. The program of work shall include, among other things, estimates of the work items quantities and costs, a PERT/CPM (Program Evaluation Review Technique/Critical Path Method) network of the project activities, and monthly cash flows. The program of work shall cover at least a usable portion of the project and no construction shall be started for portions of the project that are less than usable, except projects requiring stage construction, provided that continuity of construction up to the completion of a usable portion is assured. Once the program of work is approved, it shall be serve as the basis for the implementation of the project and the corresponding expenditure of funds. No project shall be divided into smaller portions for the purpose of circumventing the provisions of this Section.
Section 3. Local Labor - In the implementation of projects covered by appropriations in this Act, the required unskilled labor shall be procured, where available, from the sitio, barangay, poblacion, municipality or city where the project is located, and, for this purpose, a certification from the City or Municipal Mayor or Barangay Captain, as the case may be, shall be secured as to the availability of the unskilled labor. Skilled labor shall be procured, where available, from within the province where the project is located. Specialized skilled labor may be procured outside the province where the project is located.
Section 4. Labor-Intensive Methods - Whenever technically and economically feasible, labor-intensive methods shall be used in the prosecution of the projects authorized in this Act: Provided, That (a) the estimated financial cost of each project done by labor-intensive methods does not exceed the cost of the best alternative construction method defined by the agency concerned by more than ten per centum (10%), (b) the estimated duration of the project done by labor-intensive methods does not exceed the duration of the best alternative method defined by the agency concerned by more than fifty per centum (50%), and (c) the employment of workers in the projects will not unduly impair the labor requirements of agricultural production: Provided, finally, That before any such project is prosecuted, the agency concerned shall prepared 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 aforestated. The District or City Engineer concerned shall certify in the program of work that he has maximized the use of labor-intensive methods in accordance with the foregoing criteria. The purchase of hand tools and other work implements for undertaking projects by labor-intensive methods may be charged against project funds not exceeding five per centum (5%) of the estimated project cost. These implements may be turned over to the laborers with the payment therefor deductible from their wages on reasonable installments during the duration of their employment in the project.
The agencies concerned shall refer to and take into consideration the relevant studies of the Ministry of Public Works, Transportation and Communications and the Ministry of Public Highways for the identification of project work items or activities suitable for labor-intensive methods of construction.
Section 5. Pre-Construction Activities - In the implementation of the work, a general plan of operations shall be prepared to indicate the methods and the procedures to be followed. This plan will cover and organize all relevant fields of study, delineation of responsibilities for undertaking each phase, specifying or analyzing all analytical procedures and resources to be required for conducting the studies.
Section 6. Purchase of Materials and Supplies - The Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, is authorized, subject to bidding and auditing requirements, to procure the necessary materials and supplies for the construction, reconstruction, improvement, repair and/or rehabilitation of any project covered by appropriations in this Act. When these materials and supplies are obtainable locally in the province or city where the project is located, the same may be procured by the District of City Engineer or, in the case of special projects, the Project Manager, without prior authority, from the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, subject to bidding and auditing requirements. No surcharge shall be imposed for the service of procuring such materials and supplies. The expenditures for these materials and supplies shall not exceed the estimated cost for the same as stated in the approved program of work.1âwphi1
Section 7. Prosecution of Projects by Administration - Any project covered by appropriations in this Act with a cost of P500,000 or less, based on the approved program of work under Section 2 hereof, may be done by administration or force account by the bureau or agency concerned without benefit of public bidding. Every project with a cost of more than P500,000 shall be advertised for public bidding, provided that, if there are no acceptable bids for such project, the project may be prosecuted by administration by the bureau or agency concerned after securing the approval of the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is P2,000,000 or less; and the approval of the President of the Philippines, upon recommendation of the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is more than ₱2,000,000. In case of urgent necessity or emergency, however, a project costing more than ₱500,000 may be prosecuted by administration, without prior public bidding, the bureau or agency concerned, subject to the approval by the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is P2,000,000 or less; and to the approval of the President of the Philippines, upon recommendation of the Minister of Public Work, Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is more than ₱2,000,000.
Section 8. Negotiated Contracts - Pursuant to the general policy of undertaking projects by contract after public bidding, no project covered by appropriations in this Act shall be prosecuted by negotiated contract except: (a) in cases where public bidding has failed to produce bids acceptable to the bureau or agency concerned; or (b) in case of urgent necessity or emergency or danger to life and property; or (c) in case of a project which is contiguous to an on-going project under contract, in which case the agency concerned may negotiate with the contractor of the on-going project to undertake the additional work under the same contractual terms and conditions of the non-going contract less credit for mobilization, except in cases of extraordinary inflation or state of recession declared by the government; Provided, That no negative slippage is incurred by the contractor in any of his on-going projects: Provided, further, That the additional works is within his contracting capacities. Authority to negotiate contracts for projects under these exceptional cases shall be subject to prior approval by the Minister of Public Works. Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is ₱2,000,000 or less; and to approval by the President of the Philippines, upon recommendation of the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is more than P2,000,000.
Section 9. Engineering and Administrative Overhead - Appropriations authorized in this Act shall be used solely for project implementation which may include direct engineering and administrative overhead expenditures incidental thereto. These expenditures shall be reflected in the individual project program of work provided for in Section 2 of this Act and shall not exceed five per centum (5%) of the amount actually released for the project. The expenditures shall be reduced to the extent of any personnel and other services that are already supported by regular appropriations of the agencies concerned.
Section 10. Reports - The head of the bureau or agency concerned shall submit to the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, quarterly accomplishment reports, copies of which shall be furnished the President (Prime Minister), the National Economic and Development Authority, the Ministry of the Budget, the Speaker of the Batasang Pambansa and the Chairman of the Regional Development Council of the Region where the project is undertaken. At the end of the calendar year, the Minister of Public Works, Transportation and Communications and the Minister of Public Highways, shall submit their annual accomplishment reports which shall include the appropriations released as of the end of the calendar year, the extent of the work accomplished, further works to be done to complete the program of broad categories of public works and public highway projects and recommendations, if any, for transfer of appropriations or changes of program to be incorporated in the succeeding appropriations measure, to the President (Prime Minister), with copies furnished the National Economic and Development Authority, the Ministry of the Budget and the Batasang Pambansa through the Speaker.
Section 11. Separability - If any provision of this Act is declared unconstitutional, the remaining provisions shall remain in force.
Section 12. Effectivity - This Act shall take effect immediately upon approval.
Approved: December 22, 1978
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