MALACAŅANG
M a n i l a

PRESIDENTIAL DECREE No. 759 July 31, 1975

APPROPRIATING FUNDS FOR PUBLIC WORKS, SYNCHRONIZING THE SAME WITH PREVIOUS PUBLIC WORKS APPROPRIATIONS

WHEREAS, Presidential Decree Nos. 3 and 475 provide appropriations for rehabilitation and reconstruction of damaged infrastructure facilities caused by calamities in 1972 and for additional development projects designed to further accelerate socio-economic development;

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 of changes in technical designs and requirements;

WHEREAS, there is also a need to provide appropriations for new projects in support of priority programs of the government including the food production and distribution program;

WHEREAS, it is necessary to provided adequate appropriations to cover the local counterpart funds of on-going and proposed foreign-financed projects in view of the country increasing capability to absorb foreign assistance as demonstrated by the various loans and aids extended to Government projects;

WHEREAS, there is a need to appropriate funds for these projects in adequate amounts to cover their total costs up to completion to assure continuity of their implementations;

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

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:

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 provision hereinafter set forth, for the purpose mentioned hereunder:

TITLE A
TRANSPORTATION AND COMMUNICATIONS

1. For the construction, improvement, rehabilitation; reconstruction, completion, including project preparations, and the purchase of necessary construction materials and supplies, of the projects listed/summarized hereunder:

(a) Highways
1. Pan Philippine Highway P465,000,000
2. Manila North Expressway Extension 125,000,000
3. Manila East Road 75,000,000
4. San Fernando-Gapan Road, Pampanga and Nueva Ecija 70,000,000
5. Sto. Tomas-Batangas Road, Batangas 15,000,000
6. Tarlac-Lingayen Road, Tarlac and Pangasinan 30,000,000
7. Road Right-of-Way, Luzon Road Projects 91,000,000
8. Cotabato-Digos Road, Cotabato 25,000,000
9. Manila South Expressway Extension 20,000,000
10. Tarlac-Santa Rosa Road including Feeder Roads, Tarlac and Nueva Ecija 10,000,000
11. Iligan-Cagayan de Oro-Butuan City Road 200,000,000
12. Cotabato City-General Santos City Road 30,000,000
13. Cubao Interchange, Quezon City 20,000,000
14. Davao-Calinan-Bukidnon Road 90,000,000
15. Jct. Carmen-Dapecol-Panabo Pier Road, Davao del Norte 10,000,000
16. Marikina-Infanta Road, Rizal and Quezon 100,000,000
17. Lumban-Caliraya-Cavinti Road, Laguna 15,000,000
18. Jct. Layac-Mariveles Road, Bataan 55,000,000
19. Lamut-Banawe Road, Ifugao 30,000,000
20. Agoo Tubao-Baguio Road, La Union and Benguet 40,000,000
21. Bacoor-Naic Ternate-Nasugbu Road, Cavite and Batangas 60,000,000
22. Tagaytay-Batangas Road, Tagaytay City and Batangas 65,000,000
23. Zambales-Pangasinan Road 60,000,000
24. Zamboanga Integrated Development Road Projects, Zamboanga del Sur 80,000,000
25. Mindoro Integrated Development Road Projects, Occidental and Oriental Mindoro 150,000,000
26. Legaspi-Tiwi Road, Albay P20,000,000
27. Tabaco-Ligao Road, Albay 15,000,000
28. Silay-Bacolod-Bago Road, Negros Occidental 85,000,000
29. Bago-Kabankalan Road, Negros Occidental 45,000,000
30. Jaro-Janiuay Road, Iloilo 30,000,000
31. Janiuay-Calinog Road, Iloilo 30,000,000
32. Calinog-Passi Road, Iloilo 10,000,000
33. Calinog-Dao Road, Iloilo 30,000,000
34. Jaro-Zarrago Road, Iloilo 10,000,000
35. Zarraga-Passi Road, Iloilo 60,000,000
36. Carvasona-Duenal Road, Iloilo 10,000,000
37. Zarraga-Barotac Nuevo Road, Cebu 35,000,000
38. Cebu City-Carmen Road, Cebu 25,000,000
39. Naga-Lutopan-Toledo Road, Cebu 50,000,000
40. Puerto-Malaybalay Road, Bukidnon 60,000,000
41. Malaybalay-Kibawe Road, Bukidnon 70,000,000
42. Silay-Fabrica Road, Negros Occidental 75,000,000
43. Fabrica-San Carlos Road, Negros Occidental 50,000,000
44. San Carlos-Villahermoso Road, Negros Oriental 30,000,000
45. Villahermoso-Sibuco Road, Negros Oriental 55,000,000
46. Dao-Roxas City Road, Cebu 25,000,000
47. Roxas-Pontevedra-Bailan Road, Capiz 15,000,000
48. Lanot-Bailan Road, Capiz 15,000,000
49. Bailan-Estancia Road, Capiz 35,000,000
50. Limbog-Kalibo Road, Aklan 30,000,000
51. Barotac Neuvo-Barotac Viejo Road, Iloilo 20,000,000
52. Dawatan-Banate Road, Iloilo 10,000,000
53. Carmen-San Remigion Road, Antique 45,000,000
54. Anonang-Daanbantayan, Road, Cebu 15,000,000
55. Cebu South Road, Cebu 65,000,000
56. Baguio-Lubuagan Road, Benguet and Kalinga, Apayao 180,000,000
57. Iloilo-Antique Road 60,000,000
58. Dumaguete North Road, Negros Oriental 120,000,000
59. Dumaguete South Road, Negros Oriental P80,000,000
60. Tagbilaran East Road, Bohol 120,000,000
61. Tagbilaran North Road, Bohol 90,000,000
62. Palo-Carigara-Ormoc Road, Leyte 70,000,000
63. Dugo-Gonzaga-San Vicente Road, Cagayan 65,000,000
64. Midsayap-Dulawan-Marbel Road, North Cotabato and Maguindanao 70,000,000
65. Dipolog-Oroquieta Road, Zamboanga del Norte and Misamis Occidental 65,000,000
66. Ilocos Sur-Ilocos Norte-Magapit Road, Ilocos Sur, Ilocos Norte and Cagayan 150,000,000
67. Ilagan-Palanan Road, Isabela 70,000,000
68. Solsona-Cabugao-Corner Rizal Road, Ilocos Norte, Kalinga, Apayao and Cagayan 130,000,000
69. Quirino Highway, Quezon and Camarines Sur 100,000,000
70. Metro Manila Ring Roads 190,000,000
71. Circumferential Roads, Metro Manila 150,000,000
72. Secondary and Feeder Roads in Bicol Region 60,000,000
73. Gen. Santos-Malisbeng Secondary Roads, South Cotabato 60,000,000
74. Basey-Balangiga Road, Western and Eastern Samar 50,000,000
75. Capas-Botolan Road, Tarlac and Zambales 30,000,000
76. Dipolog-Pagadian Road, Zamboanga del Norte and del Sur 50,000,000
77. Valencia-Pangantucan-Kalilangan Road, Bukidnon 18,500,000
78. Kalilangan-Kalingilan-Kibawe Road, Bukidnon 20,800,000
79. Talakag-Lantapan Road, Bukidnon 20,000,000
80. Brookes' Point Roads, Palawan 30,000,000
81. Gasan Buenavista-Torrijos Road, Marinduque 11,000,000
82. Ilagan-Kapatagan Road, Lanao del Norte 39,000,000
83. Lake Lanao Coastal Road, Lanao del Sur P92,000,000
84. Padada-Columbio Road, Davao Del Sur and Sultan Kudarat 42,000,000
85. Soquil-Maitum-Malisarong Road, South Cotabato 65,000,000
86. South Cotabato Roads 34,000,000
87. Radial and Circumferential Roads, Jolo, Sulu 20,000,000
88. National Roads in Manila 100,000,000
89. Improvement of National Roads and Bridges
Luzon130,000,000
Mindanao95,000,000
Visayas70,000,000
90. Feeder and Secondary Roads and Bridges 400,000,000
91. Development Roads 240,000,000
92. Provincial, City and Municipal Roads 300,000,000
93. Roads Right-of-Way 150,000,000
94. Various National Roads 311,700,000
Total for Highways P 7,150,000,000

(b) Railways


1. Rehabilitation of Batangas Line(Calamba-Batangas Port) P 32,000,000
2. Main Line South Project (Manila - Legaspi) 302,000,000
3. Other Railways Projects 10,000,000
Total for Railways P 344,000,000


(c) Airports and Air Navigation


1. Manila International Airport (P254,000,000)
2. Butuan Airport 17,900,000
3. Cagayan de Oro Airport 12,520,000
4. Cagayan de Sulu Airport 17,000,000
5. Cauayan Airport 21,000,000
6. Davao City Airport 15,600,000
7. Export Processing Zone Authority Airport 40,000,000
8. Fuga Airport 20,300,000
9. Iloilo Airport P20,000,000
10. Ipil Airport 10,500,000
11. Legaspi Airport 11,500,000
12. Mactan Airport 13,800,000
13. Manila General Aviation Airport 22,000,000
14. Zamboanga City 15,000,000
15. Various Airports 405,953,000
16. Air Navigation Facilities 50,000,000
Total for Airpots/Air Navigation P 947,073,000

(d) Port works and Maritime Navigation


1. Port of Manila P270,000,000
2. Port of Tobaco, Albay 24,365,000
3. Port of Mariveles (Syncrolift), Bataan 30,000,000
4. Port of Batangas, Batangas 14,500,000
5. Port of Cagayan De Oro 45,500,000
6. Port of Cebu, Cebu City 55,150,000
7. Port of Cotabato (Polloc) Port of 120,000,000
8. Makar, Gen. Santos City 44,700,000
9. Port of Tacloban City, Leyte 14,600,000
10. Port of Calapan, Mindoro Oriental 126,770,000
11. Philippine (Navotas) Fisheries Port, Rizal 32,000,000
12. Port of Casambalanga, Cagayan 25,000,000
13. Port of Sta. Ana, Davao Oriental 10,600,000
14. Port of Iloilo, Iloilo City 12,800,000
15. Port of Bicobian, Isabela 14,400,000
16. Port of Tandulsog, Jolo, Sulu 38,000,000
17. Port of Pulupandan, Negros Occidental 13,900,000
18. Port of Ozamis, Misamis Occidental 11,400,000
19. Port of Dumaguete, Negros Oriental 12,900,000
20. Port of Puerto Princesa, Palawan 13,900,000
21. Port of Mariveles, Bataan 10,000,000
22. Port of Puluan, Dapitan City 10,000,000
23. Port of Basilan, Zamboanga del Sur 11,700,000
24. Various National Ports 255,776,000
Total for National Ports P 1,217,961,000
25. Various Municipal Ports 36,869,000
26. Lighthouses and Other Maritime Navigation Facilities P25,000,000
Total for Portworks and Maritime Navigation P 1,279,830,000

(e) Telecommunications

1. Telegraphic Transfer Services Improvement P30,000,000
2. Municipal Telephone System 42,000,000
3. Telecommunications Maintenance Centers (Regional And Provincial) 48,500,000
Total for Telecommunications P 120,500,000
TOTAL FOR TRANSPORTATION AND COMMUNICATIONS P 9,841,403,000

TITLE B
WATER RESOURCES DEVELOPMENT

1. For the construction, improvement, rehabilitation, reconstruction, completion, including project preparation and the purchase of necessary construction materials supplies of the projects listed/summarized hereunder:

(a) Irrigation


1. Aurora-Peñaranda Basin Diversion Scheme 228,000,000
2. Tarlac Irrigation Systems Improvement Project 139,000,000
3. Angat-Magat Integrated Agricultural Development Project 95,436,000
4. Davao del Norte Irrigation Project (Saug-Compostela) 21,900,000
5. Agusan del Sur Irrigation Project (Bunawan-Salvacion) 44,400,000
6. Pulangui River (Valencia) Bukidnon 55,060,000
7. Upper Pampanga River Project, Watershed Development Pilot Project 10,000,000
8. Casecnan Trans-Basin Development Project P20,000,000
9. Lower Agno Irrigation Project, Pangasinan 12,000,000
10. Various National Irrigation Projects 295,765,000
11. Various Communal Irrigation Projects 70,000,000
12. Pump Irrigation Projects 50,000,000
13. Irrigation-Electrification Projects 30,000,000
14. Mindoro Integrated Development Irrigation Projects 71,500,000
15. Bicol River Basin Development Irrigation Projects 78,000,000
16. Zamboanga Integrated Development Irrigation Projects 30,000,000
17. Groundwater Development Project 70,710,000
Total for Irrigation P 1,321,771,000

(b) Water Supply


1. Various Artesian Wells and Springs P 90,959,000
2. Various Waterworks 78,729,000
Total for Water Supply P 169,688,000

(c) Flood Control and Drainage


1. Agno River Control, Pangasinan P108,100,000
2. Asingan-San Manuel Levee with Closure of the Chico River, Agno River Control, Pangasinan 17,000,000
3. Abelong and Angalacan River Control, Pangasinan 14,500,000
4. Magat River Control, Nueva Viscaya, Isabela and Cagayan 800,000,000
5. Pampanga River Control, Pampanga, Bulacan and Nueva Ecija 118,580,000
6. Gumain-Porac River Control, Pampanga 15,642,000
7. Pasig-Potrero River Control Pampanga 41,500,000
8. Labangan Floodway, Bulacan 12,500,000
9. San Fernando-Abacan River Control, Pampanga P38,500,000
10. Parua River Control, Tarlac 39,000,000
11. Rio Chico River Control, Pampanga and Nueva Ecija 54,900,000
12. Manila and Suburbs River Control, Manila and Suburbs 2,273,500,000
13. Mangahan Floodway, Rizal 180,000,000
14. Magasawang Tubig River Control, Oriental Mindoro 12,000,000
15. Bicol River Control, Camarines Sur 45,950,000
16. Ilog-Hilabangan, River Control, Negros Occidental 64,344,000
17. Panay River Control Capiz and Roxas City 28,100,000
18. Samar-Leyte Schistosomiasis Control Project 10,000,000
19. Maranding River Control, Lanao Del Norte 10,200,000
20. Agusan River Control, Butuan City and Agusan 73,000,000
21. Davao River Control, Davao City 10,520,000
22. Cotabato River Control, Cotabato 194,350,000
23. Pampanga, Bicol and Cotabato Dredging Project 54,000,000
24. Various River and Flood Control Projects 236,856,000
Total for River Control And Drainage P4,453,042,000
TOTAL FOR WATER RESOURCES DEVELOPMENT P5,944,501,000

TITLE C
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:

(a) National and Related Buildings

1. Philippine College of Arts and Trades Building, Manila P16,330,000
2. Bureau of Posts Building, Manila and Provincial Branches 11,400,000
3. Department of Education and Culture Building 52,000,000
4. Philippine College of Commerce Building, Manila 24,400,000
5. Department of Public Works, Transportation and Communications Building, Quezon City 50,000,000
6. Bureau of Lands Building 45,000,000
7. Weather Bureau Building, Quezon City 13,200,000
8. Bureau of Soils Building, Quezon City 25,000,000
9. Bureau of Animal Industry Building, Quezon City 10,000,000
10. Philippine Fisheries Commission Building, Quezon City 10,000,000
11. University of the Philippines Diliman, Quezon City and Los Baños, Laguna
(a) Academic Buildings, Diliman and Los Baños62,400,000
(b) Campus Utilities and Ground, Diliman and Los Baños31,085,000
(c) Ancillary Facilities, Diliman and Los Baños16,100,000
(d) Other Projects23,720,000
12. Department of Labor Buildings, Quezon City 45,000,000
13. Department of Social Welfare Buildi ng 15,500,000
14. National Economic and Development Authority Building 30,000,000
15. Department of Trade Building, Quezon City 50,000,000
16. Central Mindanao State University Building, Bukidnon 20,915,000
17. Mindanao State University Building Marawi City 14,110,000
18. Children's Educational Foundation Building, Villa, Cotabato 12,025,000
19. Local Government Regional Training Center Buildings 15,000,000
20. Department of Natural Resources Building, Quezon City 45,000,000
21. Various National Buildings 269,474,000
Total for National Buildings P907,659,000

(b) Hospitals and Sanitaria


1. Jose Reyes Hospital, Manila P11,400,000
2. Dr. Jose Fabella Memorial Hospital, Manila 11,600,000
3. Philippine General Hospital, Manila 10,650,000
4. National Cancer Center Building, Manila 14,000,000
5. Various Hospitals and Related Buildings 269,414,000
Total for Hospitals and Sanitaria P317,064,000

(c) Elementary School BuildingsP 600,000,000
(d) Secondary School Buildings100,000,000
(e) Other Public Buildings and Miscellaneous Public Works100,000,000
TOTAL FOR BUILDINGSP 2,024,723,000


TITLE D
SHORE PROTECTION

1. For the construction, improvement, rehabilitation, reconstruction, completion, including project preparation and the purchase of necessary construction materials and supplies of the projects summarized hereunder:


(a) Various Sea WallsP23,665,000
Total for Section 1P 17,834,292,000

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:


(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 to exceed P1,000,000 of this sum shall be made available for the Malacañang buildings and Mansion and Guest Houses in Baguio: Provided, further, that P100,000 of this sum shall be made available for the maintenance of the Mabini Shrine in Tanauan, Batangas, including the salaries of the two caretakers of the Shrine who shall be the two nearest surviving kins of Apolinario Mabini

P30,000,000

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

10,000,000

(c) For the prosecution of pre-investment studies, regional planning, project pre- feasibility and feasibility stidies, 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, soils investigation, detailed designs, preparation of 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

50,000,000

(e) For the purchase 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

100,000,000

(f) For water resources investigations, survey and studies, establishment of recording stream gaging stations of various rivers including publication, and preparation of water Atlas for the Philippines to be undertaken by the National Water Resources Council

13,000,000

(g) For the construction of ware housing facilities necessary for the implementation of programs of the National Grains Authority and other governmental agencies

100,000,000

(h) For the implementation of the Philippine Australian Development Assistance Program

P100,000,000
Total for Section 2P 503,000,000

SPECIAL PROVISIONS

Section 3. Program of Work Required Before Prosecuting Public Works. Before prosecuting any public works project, 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 not 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 concern for any project with an estimated cost of P50,000 or less. In no case shall construction funds be remitted to field offices 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 P1000,000 or more, the PERT/CPM technique shall be used and a time-scaled diagram of the activities shall as well 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 not be amended except in case of unforseen contigencies or any change in field conditions or other similar cirumstances in which case an amendment may be allowed provided that such amendment will not result in a deficiency 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 above 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 ten 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.

Section 5. Preference to Local Labor. In the execution and construction of any public works project, the labor requirements shall be filled by laborers from the sitio, barrio, 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 may be used in the prosecution of public works 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 (10%) 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 comperative 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 criterial in the preceding sentence.

The selected construction technique 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 be exceed five (5%) 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, specifying all analytical procedures and resources to be required for conducting the studies: Provided, That the appropriation shall include administrative services 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 two and one half per centum (2 1/2%) of the estimated cost for the 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 (9%) 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 point venture of foreign and local agencies shall be miximized.

Section 9. Purchase of Sites. Any appropriation herein authorized for construction of a project shall be understood to include the acquisition or purchase of sites whenever such 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 or 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 or agency concerned without benefit of public bidding subject to the provisions of Section 5 and Section 6 thereof. Public works projects with 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 ten per centum (10%) 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 without benefit of public bidding upon representation 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 construction, reconstruction, improvement, repair and/or maintenance of any public work 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 of work as provided under Section 3 hereof.

Section 12. Engineering Surcharge and Other Overhead Expenses. No national surcharge shall be collected from the appropriation or expenditures authorized for any category of public work and all surcharges to be collected by the district or city engineering office for administrative overhead and engineering expenses, including the compensation and travel expenses and all other deductions shall not exceed ten per centum of expenditures or appropriation for any public works project, so that ninety per centum of said appropriation shall be expanded directly for the project: Provided, That nine per centum said expenditures shall accrue to the district or city engineering office and one per cent shall accrue to the regional engineering offices concerned: Provided, further, That such surcharges shall be under the custody of the disbursing officers of the said engineering offices: Provided, finally, That such surcharges may be used for the purchase of the motor vehicles and equipment.

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 books of the treasurers or special disbursing officers as national disbursing funds and all projects herein specified are classified as national projects: Provided, That, provincial fund 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. Unreleased Appropriations. All unreleased appropriations in Republic Acts Numbered Forty Eight Hundred Fifty Four, Fifty One Hundred Eighty Seven, and Fifty Nine Hundred Seventy Nine are hereby repealed.

Section 17. 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 accomplished, further work to be done to complete the program of broad categories of public works and recommendations if any, for transfer of appropriations or for program changes to be incorporated in the next Public Works Appropriations Measure.

Section 18. Effectivity. This Decree shall take effect immediately.

Done in the City of Manila, this 31st day of July, in the year of Our Lord, nineteen hundred and seventy-five.


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