BATAS PAMBANSA Blg. 132

An Act Appropriating Funds for Public Works, Highways, Transportation and Communications 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 not otherwise appropriated in any subsequent General Appropriations Act, including the proceeds of bond issues and/or loans and grants from local or foreign institutions, to implement public works, highways, transportation and communication projects of the National Government for the years beginning 1982, as prescribed hereunder:

Title A
Highways

For the construction, improvement, rehabilitation, reconstruction, and/or completion of the following highways projects, including detailed engineering and acquisition of sites, equipment, materials, supplies and services to be used directly for the projects.

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National Capital Region     ₱300,000,000
1. Metro Manila Major Roads 300,000,000
Region I ₱370,000,000
1. Rosario-Laoag Road 180,000,000
2. Ilocos Norte Rural Development Project, Road Component 40,000,000
3. Baguio-Bontoc Banawe-Lubugan 150,000,000
Region II ₱70,000,000
1. Dugo Jet-San Vicente Road 70,000,000
Region IV ₱550,000,000
1. Palawan Integrated Rural Development Project, Road Component 200,000,000
2. Mindoro Integrated Rural Development Project, Road Component 350,000,000
Region V ₱120,000,000
1. Bicol River Basin, Road Component 120,000,000
Region VI ₱80,000,000
1. Antique-Aklan Road Component 80,000,000
Region VII ₱100,000,000
1. Bohol Integrated Development Project, Road Component 50,000,000
2. Various Roads Projects, Cebu 30,000,000
3. Various Roads Projects, Negros Oriental 10,000,000
4. Various Roads Projects, Siquijor 10,000,000
Region VIII ₱500,000,000
1. West Leyte Road Improvement Project, including four (4) supplementary road sections in Northwest Leyte 300,000,000  
2. Samar Integrated Rural Development Project 200,000,000
Region IX ₱200,000,000
1. Zamboanga del Sur Integrated Development Project, Road Component 170,000,000
2. For various Road Projects in the islands of Basilan, Sulu and Tawi-Tawi 30,000,000
Region X ₱90,000,000
Region XI ₱90,000,000
Inter-Regional ₱2,930,000,000
1. Laoag-Allacapan Road 170,000,000
2. Junction Narvacan, Ilocos Sur Abra Kalinga Road 180,000,000
3. Southern Philippine Development Authority, Road Component
a) Malabang Marawi Road 130,000,000
b) Ganassi-Tubod Road 100,000,000
c) Lake Lanao Circumferential Road 130,000,000
d) Molundo-Wao-Banisilan Linbungan-Carmen Road 330,000,000
e) Dipolog Zamboanga Coastal Road 600,000,000
f) Cotabato-Zamboanga Coastal Road 500,000,000
g) Cotabato City General Santos Road (South Cotabato Coastal Road) 180,000,000
h) Surigao del Norte-Surigao del Sur-Davao Oriental Coastal Road 410,000,000
4. Dalton Pass 200,000,000
Nationwide ₱4,560,000,000
1. Philippine Rail Road Project 130,000,000
 2. Luzon Road Project 300,000,000
 3. Philippine Island Road Project 400,000,000
 4. Major Bridges 600,000,000
 5. Urban Road and Related Project 200,000,000
 6. Bliss Project, Road Component 80,000,000
 7. Pambansang Bagong Nayon Project 50,000,000
 8. Traffic Safety Devices and Road Signs 70,000,000
 9. Detailed Engineering of Various Roads/Bridges 100,000,000
 10. Development of Roads and Bridges 200,000,000
 11. Various National Roads and Bridges 500,000,000
 12. Local and Rural Roads and Bridges 500,000,000
 13. Construction of Area Base Shops 600,000,000
 14. Slum Improvement and Resettlement Project 100,000,000
 15. Restoration and Improvement Project 530,000,000
 16. Ferry Services 200,000,000
Total, Title A ₱9,960,000,000
=============

Title B
Railways

For the construction of the following projects, including engineering and acquisition of sites, equipment, materials, supplies and service to be used directly for the projects.

 

National Capital Region     ₱800,000,000
1. Light Rail Transit System 800,000,000
NCR and other Regions
1. Repair, Maintenance and Improvement of Rolling Stocks, Tracks and other Facilities including Rehabilitation of the South and North Main Lines and the Commuter Service ₱2,120,000,000
Total, Title B ₱2,290,000,000
==============

Title C
Ports

For the construction, dredging, improvement, provision, rehabilitation, reconstruction and/or completion of port projects, including engineering and acquisition of sites, equipment, materials, supplies and services to be used directly for the projects.

C. 1. Fishing Ports

Region I ₱76,000,000
1. Sual Fishing Port, Pangasinan ₱76,000,000
Region IV ₱36,000,000
1. Lucena Fishing Port 36,000,000
Region V ₱44,000,000
1. Camaligan Fishing Port, Camarines Sur 44,000,000
Region VI ₱139,000,000
1. Iloilo Fishing Port 139,000,000
Region IX ₱177,000,000
1. Zamboanga Fishing Port 177,000,000
Total, Title C-1 ₱472,000,000
============
C. 2. Commercial Ports
Region I ₱11,000,000
Region II 10,000,000
Region III 13,000,000
Region IV 23,000,000
Region V 16,000,000
Region VI 25,000,000
Region VII 17,000,000
Region VIII 29,000,000
Region IX 18,000,000
Region X 21,000,000
Region XI 20,000,000
Region XII 4,000,000
Nationwide 20,000,000
Total Title C-2 ₱237,000,000
============
Grand Total Title C ₱709,000,000
============

Title D
Airports and Air Navigational Facilities

For the construction, improvement, rehabilitation, reconstruction, and/or completion of the following airports and air navigational facility projects, including feasibility and detailed engineering studies, acquisition of sites, equipment, materials, supplies, and services to be used directly for the projects.

Region I ₱10,600,000
Region II 33,500,000
Region III 3,400,000
Region IV 363,580,000
Region V 13,170,000
Region VI 31,500,000
Region VII 566,750,000
Region VIII 34,100,000
Region IX 553,900,000
Region X 17,000,000
Region XI 219,500,000
Region XII 23,000,000
National Capital Region (NCR) 695,000,000
Various Air Navigational Aids Projects 380,000,000
Total, Title D ₱2,945,000,000
============

Title E
Irrigation

For the construction, improvement, provision, rehabilitation, reconstruction and/or completion of irrigation systems, including engineering, and acquisition of sites, equipment, materials, supplies, and services to be used directly for the projects.

Region I ₱65,000,000
1. National Irrigation System Improvement Project, Regionwide 49,000,000
2. Various Irrigation System and Projects, Regionwide 16,000,000
Region II ₱516,000,000
3. Cagayan Integrated Agricultural Development Project (Irrigation Component), Cagayan 22,000,000
4. San Pablo-Cabagan Irrigation Project Isabela 17,000,000
5. Watershed Management and Soil Erosion Control Project, Regionwide 312,000,000
6. Nationwide Irrigation Systems Improvement Project, Regionwide 145,000,000
7. Various Irrigation Systems and Projects, Regionwide 20,000,000
Region III ₱155,000,000
8. Tarlac Irrigation Systems Improvement Project 19,000,000
9. Central Luzon Ground Water Irrigation Project 77,000,000
10. Upper Pampanga River Irrigation Systems, San Antonio Extension and Completion of Drainage Facilities 18,000,000
11. Bay to River Irrigation Project Zambales 21,000,000
12. Various Irrigation Systems and Projects, Regionwide 20,000,000
Region IV ₱418,000,000
13. Amro-Pinamacan Irrigation Project, Aurora 54,000,000
14. Laguna de Bay Development Project (Irrigation Component), Laguna, Rizal and Cavite 05,000,000
15. Lumintao River Irrigation Project, Mindoro Occidental 7,000,000
16. Amnay River Irrigation Project, Mindoro Occidental 41,000,000
17. National Irrigation System Improvement Project, Regionwide 41,000,000
18. Various Irrigation Systems and, Projects, Regionwide 20,000,000
Region V ₱475,000,000
19. Naga-Calabanga Irrigation Project, Camarines Sur 350,000,000
20. San Francisco River Irrigation Project, Albay 41,000,000
21. Virac-Calolbon Irrigation Project, Catanduanes 15,000,000
22. National Irrigation Systems Improvement Project, Regionwide 69,000,000
Region VI ₱165,000,000
23. Binalbangan River Irrigation Project, Negros Occidental 36,000,000
24. National Irrigation Systems Improvement Project, Regionwide 129,000,000
Region VII ₱276,000,000
25. Bohol Irrigation Project (Wahig- Pamacsalan Reservoir Project) 258,000,000
26. Bayawan River Irrigation Project, Negros Occidental 18,000,000
Region VIII ₱116,000,000
27. National Irrigation System Improvement Project, Regionwide 116,000,000
Region IX ₱165,000,000
28. Sibuguey River Irrigation Project, Zamboanga del Sur 30,000,000
29. National Irrigation Systems Improvement Project, Regionwide 135,000,000
Region X ₱219,000,000
30. Agusan del Sur Irrigation Project, (Bunawan-Salvacion) 10,000,000
31. Agusan II Irrigation Project Agusan del Sur and Agusan del Norte 56,000,000
32. Bukidnon Irrigation Project 153,000,000
Region XI ₱529,000,000
33. Davao del Norte Irrigation Project, II Libunganon and Lasang 95,000,000
34. Davao del Norte III, Hijo, Manat, Kipaliku, Tugunay, and Libuganon 337,000,000
35. Allah River Irrigation Project, South Cotabato 41,000,000
36. National Irrigation Systems Improvement Project, Regionwide 46,000,000
37. Various Irrigation Systems and Projects, Regionwide 10,000,000
Region XII ₱148,000,000
38. Rugnan River Irrigation Project, Lanao del Sur 11,000,000
39. National Irrigation Systems Improvement Project, Regionwide 137,000,000
Nationwide ₱1,409,000,000
40. Mindanao Irrigation Study III 20,000,000
41. Philippine Rural Infrastructure Project II (Communal Irrigation Development Package Project) 384,000,000
42. Rehabilitation and Agricultural Institutional Development Project 85,000,000
43. Investigation and Survey of Proposed Irrigation Projects, including Feasibility Studies 70,000,000
44. Various Irrigation Systems and Projects 800,000,000
45. Mini-Hydros on National Irrigation Systems 50,000,000
Total, Title E ₱4,656,000,000
============

Title F
Flood Control and Drainage

For the construction, dredging, improvement, rehabilitation, reconstruction and/or completion of flood control and drainage projects, including engineering, and acquisition of sites, equipment, materials, supplies, and services to be used directly for the projects.

National Capital Region ₱121,000,000
1. Dagat-Dagatan Lagoon Reclamation and Flood Control Project 121,000,000
Region I ₱89,000,000
2. Abra River Control Project 21,000,000
3. Mabini River Control Project 25,000,000
4. Aringay River Control Project Aringay, Tubao, and Pugo, La Union 19,000,000
5. Tagamusing River Control Project Binalonan and Manaoag, Pangasinan 14,000,000
6. Bontoc (Chico) River Control Project, Mountain Province 10,000,000
Region II ₱80,000,000
7. Cagayan Integrated Area Development Project (Flood Control Component) 30,000,000
8. Tuguegarao Drainage Systems, Cagayan 10,000,000
9. Pinacanawan River Controk, Cagayan 10,000,000
10. Chico River Control Project, Kalinga Apayao 10,000,000
11. Calanasan River Control Project, Kalinga Apayao 10,000,000
12. Ifugao River Control Project Ifugao 10,000,000
Region III ₱166,000,000
13. Pampanga River Control System, Pampanga, Bulacan, Nueva Ecija and Tarlac 29,000,000
14. Maculcol River Control Project, San Felipe and San Narciso, Zambales 50,000,000
15. Quintanguil River Control Project, Arayat and Magalang, Pampanga 12,000,000
16. Abacan River Control Project, Angeles and Mexico, Pampanga 28,000,000
17. Batacan River Control Project San Clemente, Tarlac 15,000,000
18. Camiling River Control Project, Camiling and Mayantoc, Tarlac 15,000,000
19. Dredging and Improvement of Major Rivers in Bataan and Bulacan 17,000,000
Region IV ₱87,000,000
20. Magsawang Tubig River Control Project, Naujan, Oriental Mindoro 16,000,000
21. Cavite Flood Control and Drainage Project, Kawit and Noveleta, Cavite 20,000,000
22. Laguna Lake Development Project, Flood Control Component 41,000,000
23. Balanak River Control Project, Pagsanjan, Laguna 10,000,000
Region V ₱20,000,000
24. Daet River Control Project, Camarines Norte 10,000,000
25. Sorsogon Schistosomiasis Control and Related Projects 10,000,000
Region VI ₱84,000,000
26. Aklan River Control Project, casia Banga, Libacao, Lezo, Numancia, Malinao, Aklan 8,000,000
27. Jalsur River Control Project, Calinog, Iloilo 8,000,000
28. Dumangas-Zarraga-Leganes Flood Control Project, Iloilo 8,000,000
29. Iloilo City Drainage System 8,000,000
30. Kalibo Drainage System, Aklan 8,000,000
31. San Carlos City Drainage System 8,000,000
32. Regionwide 36,000,000
Region VII ₱65,000,000
33. Siaton River Control Project, Negros Occidental 10,000,000
34. Cebu City Drainage System 11,000,000
35. Bacong River Control Project, Negros Oriental 11,000,000
36. Dumaguete City Drainage System 10,000,000
37. Tumogong River Control Project, Bais City 13,000,000
38. Inabanga River Control Project, Inabanga, Bohol 10,000,000
Region VIII ₱54,000,000
39. Saba Basin Schistosomiasis Control and Related Projects, Leyte 10,000,000
40. Tacloban City Drainage System 14,000,000
41. Ormoc City Drainage System 10,000,000
42. Subang Dacu River Control Project, Southern Leyte 10,000,000
43. Regional Government Center Drainage System, Palo, Leyte 10,000,000
Region IX ₱20,000,000
44. Dipolog River Control Project 10,000,000
45. Polanco River Control Project, Zamboanga del Norte 10,000,000
Region X ₱82,000,000
46. Lake Mainit Drainage, Jabonga and Tubay, Agusan del Norte 20,000,000
47. Tugulbo River Control Project, Tugulbo, Agusan del Norte 12,000,000
48. Mambayaoan River Control Project, Balingasag, Misamis Oriental 10,000,000
49. Cabadbaran River Control Project, Agusan del Norte 10,000,000
50. Tubay River Control Project, Agusan del Norte 10,000,000
51. Usogon River Control Project, Bonifacio, Misamis Occidental 10,000,000
52. Lawayan River Control acd Project, Oroquieta City 10,000,000
Region XI ₱122,000,000
53. Upper Agusan River Control Project, Davao del Norte 60,000,000
54. Tago River Control Project, Surigao del Sur 22,000,000
55. Davao City Drainage System 10,000,000
56. Nabanturan River Control Project, Davao del Norte 10,000,000
57. Glan River Control Project, South Cotabato 10,000,000
58. Sta Cruz and Padada River Control Project, Davao del Sur 10,000,000
Region XII ₱30,000,000
59. Marawi City Drainage System 10,000,000
60. Cotabato City Drainage System 10,000,000
61. Iligan City Flood Control and Drainage System 10,000,000
Nationwide ₱1,038,000,000
62. Pampanga, Bicol, and Cotabato Rivers System Dredging Project 185,000,000
63. Schistosomiasis Flood Control and Related Projects 53,000,000
64. Various Flood Control and Drainage and Related Projects ₱800,000,000
Total, Title F ₱2,058,000,000
============

Title G
Shore Protection

For the construction, improvement, provision, rehabilitation, reconstruction and/or completion of shore protection projects, including engineering and acquisition of sites, equipment, materials, supplies and services to be used directly for the projects.

National Capital Region ₱5,000,000
Region I 8,000,000
Region II 6,000,000
Region III 5,000,000
Region IV 6,000,000
Region V 6,000,000
Region VI 8,000,000
Region VII 7,000,000
Region VIII 9,000,000
Region IX 6,000,000
Region X 9,000,000
Region XI 6,000,000
Region XII 6,000,000
Nationwide 20,000,000
Total, Title G ₱107,000,000
============

Title H
Telecommunications

For the construction, improvement, provision, rehabilitation, reconstruction, and/or completion of telecommunications projects, including feasibility and detailed engineering studies, acquisition of sites, equipment, materials, supplies, and services to be used directly for the projects.

 

National Capital Region (NCR) ₱13,500,000
Development of Telecommunications Training Institute 13,500,000
Region I and II ₱388,100,000
Rural Telecommunications Development Project 388,100,000
Regions III and IV ₱375,000,000
Rural Telecommunications Development Project 375,000,000
Regions V ₱194,700,000
Rural Telecommunications Development Project 194,700,000
Regions VI and VII P2,055,000,000
Rural Telecommunications Development Project 2,055,000,000
Regions VIII ₱540,000,000
Rural Telecommunications Development Project 540,000,000
Regions IX, X, XI, & XII ₱3,382,600,000
Rural Telecommunications Development Project 3,382,600,000
Nationwide ₱651,000,000
Improvement and Development of National and Regional Telecommunications Network 651,000,000
Total, Title H ₱7,600,000,000
============

Title I
Posts

For the construction, improvement, provision, rehabilitation, reconstruction and/or completion of postal facilities, including detailed engineering studies, acquisition of sites, equipment, materials, supplies, and services to be used directly for the projects.

 

National Capital Region ₱49,600,000
1. Bureau of Post Building 39,600,000
2. National Post Training Center 10,000,000
Various Post Offices/Distribution Centers ₱170,600,000
Region I 16,000,000
Region II 9,000,000
Region III 16,000,000
Region IV 16,000,000
Region V 9,000,000
Region VI 12,000,000
Region VII 15,000,000
Region VIII 10,600,000
Region IX 10,000,000
Region X 10,000,000
Region XI 12,000,000
Region XII 10,000,000
National Capital Region (NCR) 25,000,000
Total, Title I ₱220,200,000
============

Title J
Feasibility Studies and Engineering Activities

For the conduct of feasibility studies and investigation surveys, preparation of plans and designs, and other engineering activities for infrastructure projects.

 

Nationwide ₱500,000,000
1. Public Works and Highways 300,000,000
2. Transportation and Communications 200,000,000
Total, Title J ₱500,000,000
============

Title K
Rights-of-Way

For the acquisition of rights-of-way necessary for the implementation of public works projects.

Nationwide     ₱600,000,000
1. Public Works and Highways 400,000,000
2. Transportation and Communications 200,000,000
Total, Title K ₱600,000,000
============

Title L
Miscellaneous Public Works

For the construction, improvement, provision, rehabilitation and reconstruction of various miscellaneous public works projects, including engineering and acquisition of sites, equipment, materials, supplies and services to be used directly for the projects.

Nationwide
Various Projects ₱300,000,000
Total, Title L ₱300,000,000
============

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, and except as otherwise provided in Section 3 of this Act, approval of detailed engineering plans and programs of work by the Minister of Public Works and Highways, or in the case of telecommunications projects by the Minister of Transportation and Communications, shall be obtained for every project with an estimated cost greater than P1,000,000; by the line Bureau of the Agency Head or, in the case of staff bureaus by the Ministry Head concerned, for every project with an estimated cost greater than P500,000 but not more than P1,000,000; by the Regional Director concerned for every project with an estimated cost greater than P200,000 but not more than P500,000; and by the District or City Engineer concerned for every project with an estimated cost of P200,000 or less. The program of work shall include, among other things, estimates of the work items, quantities and cost, 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, in which case continuity of construction up to the completion of a usable portion shall be assured. Once the program of work is approved, it shall 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. Implementation of Postal, Airport and Air Navigation Projects. In the implementation of postal, airport and air navigation projects covered in whole or in part by appropriations in this Act, the Ministry of Transportation and Communications shall be responsible for the project location, space planning, and programming of funds, subject to existing laws, rules and regulations. The funds for the projects shall be released to the Ministry of Transportation and Communications and sub-allotted to the Ministry of Public Works and Highways, as implementing agency. The Ministry of Public Works and Highways shall undertake the detailed engineering, including the preparation and approval of detailed plans and program or work, and the construction of the project by contract or by administration, in accordance with the provision of this Act, subject to prior consultation with the Ministry of Transportation and Communications, and provided that any expenses for direct project management to be charged to the project funds by the Ministry of Public Works and Highways shall not exceed five per centum (5%) the project cost.

Section 4. 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 of 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 when the project is located. Specialized skilled labor may be procured outside the province where the project is located.

Section 5. 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 methods defined by the agency concerned by more than ten per centum (10%), (b) the estimated duration of the project done by the 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 in consultation with the Barangay Captain concerned: Provided, finally, That 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 aforestated. The Director 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 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 payments 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 and Highways for the identification of project work items or activities for labor-intensive methods of construction.

Section 6. Pre-Construction Activities. In the implementation of the work, a general plan of operation 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.1‚wphi1

Section 7. Purchases of Materials and Supplies. The Minister of Public Works and Highways, or in the case of telecommunications projects, the Minister of Transportation and Communications, 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 or City Engineer or, in the case of special projects, the Project Manager, without prior authority from the Minister of Public Works and Highways, or, in the case of telecommunications, the Minister of Transportation and Communications, subject to bidding and auditing requirements. No surcharge shall be imposed for the service of procuring such materials and supplies. The expenditures for each material shall not exceed the estimated cost of the same as stated in the approved program of work.

Section 8. 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 Ministry, 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 subject to the guidelines to be jointly promulgated by the Minister of Public Works and Highways and the Minister of Transportation and Communications, preference shall be given to qualified bidders within the region where the proposed project shall be constructed. If there are 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 and Highways or, in the case of a telecommunications project, by the Minister of Transportation and Communications, if the project cost is P5,000,000 or less; and the approval of the President, upon recommendation of the Ministry of Public Works and Highways or, in the case of telecommunications project, the Minister of Transportation and Communications, if the project cost is more than P5,000,000.

Section 9. 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 case where the 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 under contract, in which case the agency concerned may negotiate with the contractor of the on-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 exceeding ten per centum (10%) is incurred by the contractor in any of his on-going projects: Provided, further, That the additional work is within his contracting capabilities. Authority to negotiate contracts for projects under these exceptional cases shall be subject to prior approval by the Minister of Public Works and Highways or, in the case of telecommunications projects, by the Minister of Transportation and Communications, if the project cost is P5,000,000 or less; and to approval by the President, upon recommendation of the Minister of Public Works and Highways or, in the case of telecommunications projects, of the Minister of Transportation and Communications, if the project cost is more than P5,000,000.

Section 10. Engineering and Administrative Overhead. Appropriations in this Act shall be used solely for project implementation which may include direct engineering and administrative overhead expenditure incidental thereto. These expenditures shall be reflected in the program of work for the project concerned as 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 11. Allocation of Nationwide and Regionwide Lumpsum Appropriations. The nationwide and regionwide lump-sum appropriations authorized in this Act shall be allocated as equitably as possible to specific projects and areas in the various provinces, cities and municipalities within the region concerned, on the basis of the conformance of such project to the national and/or regional plans, the degree of need for such infrastructure project taking into account the size and developmental potentials of the area, population, rates of unemployment, employment and/or underemployment; Provided, That regions, provinces, cities and municipalities that are not covered by specific appropriations in this Act shall be given priority in the allocation of such nationwide and regionwide appropriations.

Section 12. Reports. The Minister of Public Works and Highways and the Minister of Transportation and Communications shall submit quarterly accomplishment reports to the President, the Prime Minister, the National Economic and Development Authority, the Ministry of the Budget, the Batasang Pambansa through the Speaker, 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 and Highways and the Minister of Transportation and Communications 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 highways projects, and recommendations, if any, for transfer of appropriations or changes of program to be incorporated in the succeeding appropriations measure, to the President, the Prime Minister, the National Economic and Development Authority, the Ministry of the Budget and the Batasang Pambansa through the Speaker.

Section 13. Separability. If any provision of this Act is declared unconstitutional, the remaining provisions shall remain in force.

Section 14. Effectivity. This Act shall take effect immediately upon approval.

Approved: September 11, 1981


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