Presidential Decree No. 1062




M a n i l a

PRESIDENTIAL DECREE No. 1062 December 15, 1976


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:


(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 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


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. Paraaque Spillway, Paraaque, 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


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


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 Baos, 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


(a) Various Sea Walls 20,000,000
Total for Shore Protection P 20,000,000
TOTAL FOR SECTION I P 18,973,000,000

Sec. 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 Malacaang 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 Sec. 2 P 510,000,000


Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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 Sec. 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.

Sec. 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.

Sec. 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.

Sec. 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 Sec. 5 and Sec. 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 Sec. 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 Sec. 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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  • Presidential Decree No. 1021

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