MALACAÑANG
M a n i l a
PRESIDENTIAL DECREE No. 1062 December 15, 1976
APPROPRIATING FUNDS FOR INFRASTRUCTURE DEVELOPMENT, SYNCHRONIZING THE SAME WITH PREVIOUS PUBLIC WORKS APPROPRIATIONS
WHEREAS, Presidential Decree Nos. 3, 475 and 759 provide appropriations for rehabilitation and construction of infrastructure 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 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;
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 and aids extended to Government projects;
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;
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 provisions hereinafter set forth, for the purpose mentioned hereunder:
TITLE A
TRANSPORTATION AND COMMUNICATIONS
| (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 | P 17,000,000 |
| (c) | Airports and Air Navigation |
| 1. | Baguio City Airport | 23,000,000 |
| 2. | San Fernando Airport, La Union | 12,500,000 |
| 3. | Bagabag Airport, Nueva Vizcaya | 12,000,000 |
| 4. | Cauayan Airport, Isabela | 18,100,000 |
| 5. | Tuguegarao airport, Cagayan | 13,200,000 |
| 6. | Corregidor Airport | 12,000,000 |
| 7. | Plaridel Airport, Bulacan | 19,000,000 |
| 8. | Manila International Airport | 296,000,000 |
| 9. | San Jose Airport, Mindoro Occidental | 14,000,000 |
| 10. | Marinduque Airport, Marinduque | 15,000,000 |
| 11. | Mamburao Airport, Mindoro Occidental | 15,000,000 |
| 12. | Lubang Airport, Mindoro Occidental | 12,000,000 |
| 13. | Bacolod Airport, Negros Occidental | 129,400,000 |
| 14. | Iloilo Airport, Iloilo | 22,200,000 |
| 15. | Kalibo Airport, Aklan | 12,000,000 |
| 16. | Dumaguete Airport, Negros Oriental | 13,200,000 |
| 17. | Lahug Airport, Cebu City | 19,000,000 |
| 18. | Catarman Airport, Northern Samar | 14,600,000 |
| 19. | Cagayan de Oro Airport, Cagayan de Oro City | 37,500,000 |
| 20. | Ozamis Airport, Misamis Occidental |
| 21. | Tandag Airport, Surigao del Sur | 15,200,000 |
| 22. | Cotabato Airport, Cotabato City | 12,000,000 |
| 23. | Allah Valley Airport, Cotabato | 15,000,000 |
| 24. | Lal-lo Airport, Cagayan | 15,000,000 |
| 25. | Lucena Airport | 10,000,000 |
| 26. | Coron (Busuanga) Airport, Palawan | 28,800,000 |
| 27. | Naga (Pili) Airport | 14,300,000 |
| 28. | Catbalogan Airport, Samar | 15,000,000 |
| 29. | Biliran Airport | 15,000,000 |
| 30. | Jolo Airport, Sulu | 12,500,000 |
| 31. | Iligan (Maria Cristina) Airport | 10,000,000 |
| 32. | Mati Airport | 18,500,000 |
| 33. | Various National Airports | 255,000,000 |
| Total for Airports and Air Navigation | P 1,165,100,000 |
| (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 casia 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 | P 520,000,000 |
| (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 | P 9,312,000,000 |
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:
| (a) | Irrigation |
| 1. | Ilocos Norte Integrated Develop- ment 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 Develop- ment 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 | P 3,089,500,000 |
| (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 | P 375,000,000 |
| (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 | P 2,234,700,000 |
| (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:
| (a) | Rural Electrification |
| 1. | Various Rural Electrification Project | P 320,000,000 |
| TOTAL FOR RURAL ELECTRIFICATION | P 320,000,000 |
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:
| (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 RegulationCommission Building, Quezon City | 20,000,000 |
| 4. | Philippine Atomic EnergyCommission Building, Quezon City | 16,000,000 |
| 5. | National Census and StatisticsOffice 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 CommunityDevelopment | 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 | P 500,000,000 |
| Total for National Buildings | P 1,736,600,000 |
| (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 | P 617,100,000 |
| (c) | Elementary School Buildings |
| 1. | Various Schools and Related Buildings | 475,000,000 |
| Total for Elementary School Buildings | P 475,000,000 |
| (d) | Secondary School Buildings |
| 1. | Various Barangay High School Buildings | 88,000,000 |
| 2. | Various Other School Buildingsfor joint projects of the Department of Education and Culture with other agencies | 36,100,000 |
| Total for Secondary School Buildings | P 124,100,000 |
| (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 | P 100,000,000 |
| TOTAL FOR BUILDINGS | P 3,052,800,000 |
TITLE E
SHORE PROTECTION
| (a) | Various Sea Walls | 20,000,000 |
| Total for Shore Protection | P 20,000,000 |
| TOTAL FOR SECTION I | P 18,973,000,000 |
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:
| (a) | For the maintenance and/or repair of public buildings, shrines, and monuments, includingground and outside installations: Provided, That, so much as may be necessary but not exceed P1,000,000 of this sum shall be made availablefor Malacañang buildings and Mansion and Guest house in Baguio | P 35,000,000 |
| (b) | For the maintenance and emergency repair of existing flood control and drainage structures | P 50,000,000 |
| (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 Economicand Development Authority upon recommendation of department heads concerned | P100,000,000 |
| (d) | For the prosecution of necessary detailed engineering ofprojects 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 | P 50,000,000 |
| (e) | For the acquisition of necessary rights-of-way for the implementation of projects authorized in this and other publicworks 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 | P 75,000,000 |
| TOTAL FOR SECTION 2 | P 510,000,000 |
SPECIAL PROVISIONS
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.
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, delieanation 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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