PRESIDENTIAL DECREE No. 1342

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

WHEREAS, Presidential Decree Nos. 759 and 1062 provide appropriations for improvement, construction and rehabilitation 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

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) Highways

1.	Agoo-Tubao-Tuba-Baguio City Road, Benguet, Region I	P25,000,000
2.	Lamut-Banaue Road, Ifugao, Region I	40,000,000
3.	Tarlac-Lingayen Road, Pangasinan, Region I	10,000,000
4.	Urdaneta-Dagupan Road, Pangasinan, Region I	10,000,000
5.	Cabanatuan-Cauayan Road, Isabela, Region II	15,000,000
6.	Alicia-San Mateo Road, Isabela, Region II	17,000,000
7.	Roxas-Camu Road, Isabela Region II	25,000,000
8.	Tarlac-Sta. Rosa Road. Tarlac, Region III	35,000,000
9.	Manila South Diversion Road Interchange, Metro Manila, Region IV	20,000,000
10.	Marikina Bridge Diversion Road, Metro Manila Region IV	70,000,000
11.	Metro Manila Traffic Improvement Infrastructure Project, Region IV	113,000,000
12.	Radial Roads and Circumferential Roads, Metro Manila, Region IV	200,000,000
13.	Marikina-Infanta Road, Rizal and Quezon, Regions IV and IV-A	45,000,000
14.	Taytay-Sta. Cruz-Calamba Road, Rizal and Laguna, Region IV-A	30,000,000
15.	Mindoro Integrated Road Projects, Mindoro Region IV-A	60,000,000
16.	Secondary and Feeder Road Projects, Bicol River Basin Project, Region V	104,000,000
17.	Cebu-Carmen Road, Cebu City, Region VII	10,000,000
18.	Naga-Toledo Road, Cebu City, Region VII	10,000,000
19.	Leyte-Samar Development Project, Leyte and Samar, Region VIII	500,000,000
20.	Sayre Highway, Bukidnon, Region X	98,000,000
21.	Roads and Bridges, Tago Irrigation Project, Surigao del Sur, Region XI	20,000,000
22.	Polloc Port Access Road, Cotabato, Region XII	20,000,000
23.	Various Ferry Services and Landing Facilities including Sorsogon-Samar and Leyte- Surigao, Inter-Regional	500,000,000
24.	Davao-Calinan-Bukidnon Road, Davao and Bukidnon, Regions X and XI	65,000,000
25.	General Santos-Cotabato Road, General Santos and Maguindanao, Regions XI and XII	50,000,000
26.	Digos-Cotabato Road, Cotabato Provinces and Davao del Sur, Regions XI and XII	15,000,000
27.	Pan Philippine Highway and Access Roads, Nationwide	600,000,000
28.	Improvement of National Roads and Bridges, Nationwide	800,000,000
a.	Luzon	300,000,000
b.	Visayas	250,000,000
c.	Mindanao	250,000,000
29.	Development Roads, Nationwide	300,000,000
30.	Feeder, Barangay and Secondary Roads and Bridges, Nationwide	600,000,000
31.	Provincial, City and Municipal Roads, Nationwide	250,000,000
32.	Various Highway Regional Depots and Area Shops, Nationwide	100,000,000
33.	Roads Right-of-Way, Nationwide	300,000,000
34.	Restoration and Rehabilitation Program, Nationwide	200,000,000
35.	Freight and Insurance, Nationwide	60,000,000
TOTAL FOR HIGHWAYS	P5,317,000,000

(b) Airports and Air Navigation

1.	Tuguegarao Airport, Cagayan, Region II	P40,000,000
2.	Piat Airport, Cagayan, Region II	22,000,000
3.	Manila International and Domestic Airport, Metro Manila, Region IV	800,000,000
4.	Ternate Airport, Cavite, Region IV	20,000,000
5.	Masbate Airport, Masbate, Region V	11,000,000
6.	Legaspi Airport, Albay Region V	30,000,000
7.	Roxas Airport, Capiz Region VI	18,000,000
8.	Mactan International Airport, Cebu, Region VII	19,000,000
9.	Lahug Airport, Cebu Region VII	25,000,000
10.	D.Z. Romualdez Airport Tacloban City, Region VIII	20,000,000
11.	Biliran Airport, Leyte, Region VIII	80,000,000
12.	Calbayog Airport, Western Samar, Region VIII	33,000,000
13.	Catbalogan Airport, Northern Samar, Region VIII	38,000,000
14.	Borongan Airport, Eastern Samar, Region VIII	25,000,000
15.	Basilan Airport, Basilan City, Region IX-A	17,000,000
16.	Zamboanga International Airport, Zamboanga City, Region IX-B	21,000,000
17.	Ozamis Airport, Misamis Oriental, Region X	14,000,000
18.	Siargao Airport, Surigao del Sur, Region X	22,000,000
19.	Tandag Airport, Surigao del Sur, Region X	13,000,000
20.	Cotabato Airport, Cotabato Region X	20,000,000
21.	Malabang Airport, Lanao del Sur, Region X	12,000,000
22.	Iligan Airport, Lanao del Norte, Region X	18,000,000
23.	F. Bangoy International Airport, Davao del Sur, Region XI	51,000,000
24.	Various Air Navigation Facilities, Nationwide	150,000,000
25.	Various Airports, Nationwide	400,000,000
TOTAL FOR AIRPORTS AND AIR NAVIGATION	P1,919,000,000

(c) Portworks and Maritime

1.	Port of San Fernando, La Union, Region I	P43,000,000
2.	Port of Batangas, Batangas City, Region IV-A	100,000,000
3.	Port of Puerto Princesa Puerto Princesa City, Region IV-A	25,000,000
4.	Port of Iloilo, Iloilo City, Region VI	56,000,000
5.	Port of Cebu, Cebu City, Region VII	17,000,000
6.	Port of Catbalogan, Northern Samar, Region VIII	10,000,000
7.	Port of San Jose, Northern Samar, Region VIII	10,000,000
8.	Port of Guiuan, Eastern Samar, Region VIII	18,000,000
9.	Port of Zamboanga, Zamboanga City, Region IX-B	27,000,000
10.	Port of Butuan, Agusan del Sur, Region X	20,000,000
11.	Various National Ports, Nationwide	75,000,000
12.	Various Municipal Ports, Nationwide	90,000,000
13.	Modernization of Fendering Systems, Nationwide	60,000,000
14.	Nationwide Dredging	100,000,000
TOTAL FOR PORTWORKS AND MARITIME	P661,000,000

(d) Telecommunications

1.	Improvement and Development of National and Regional Telecommunication Networks, Nationwide	P200,000,000
2.	Improvement and Development of Telephone Services, Nationwide	45,000,000
3.	Improvement and Development of Telegraph and Telex Services, Nationwide	20,000,000
4.	Various Communications Facilities, Nationwide	50,000,000
TOTAL FOR TELECOMMUNICATIONS	P315,000,000
TOTAL FOR TRANSPORT AND COMMUNICATIONS	P8,212,000,000

TITLE B

WATER RESOURCES DEVELOPMENT

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

(a) Irrigation

1.	San Antonio Reservoir, Tarlac, Pampanga, and Nueva Ecija, Region III	P20,000,000
2.	Groundwater Development, Pampanga River Basin, Pampanga, Nueva Ecija and Bulacan, Region III	40,000,000
3.	Irrigation and Reclamation of Candaba Swamp, Pampanga and Bulacan, Region III	27,000,000
4.	Rinconada Integrated Area Development Program (IADP), Camarines Sur, Region V	100,000,000
5.	Bula-Minalabac IADP, Camarines Sur, Region V	15,000,000
6.	Baliwag-San Vicente IADP, Camarines Sur, Region V	60,000,000
7.	Naga-Calabanga IADP, Camarines Sur, Region V	68,000,000
8.	Agusan II Project, Agusan del Norte and Agusan del Sur, Region X	50,000,000
9.	Sta. Josefa Project, Agusan del Sur, Region X	38,000,000
10.	Bukidnon Irrigation Project, Bukidnon Region X	130,000,000
11.	Pulangui No. 3, Bukidnon, Region X	20,000,000
12.	Tago RIP, Surigao del Sur, Region X	33,000,000
13.	Lake Sebu, Surallah, South Cotabato, Region XI	20,000,000
14.	Various National Irrigation Projects, Nationwide	800,000,000
15.	Various Communal Irrigation Projects, Nationwide	400,000,000
16.	Various Pump Irrigation Projects, Nationwide	270,000,000
TOTAL FOR IRRIGATION	P2,091,000,000

(b) Water Supply and Sewerage

1.	Various Metro Manila Water Supply and Sewerage Projects, Region IV	P500,000,000
2.	Various Provincial Water-work and Sewerage Systems, Nationwide	500,000,000
3.	Various Artesian Wells, Springs, and Rural Water Supply Projects, Nationwide	300,000,000
TOTAL FOR WATER SUPPLY AND SEWERAGE	P1,300,000,000

(c) Flood Control and Drainage

1.	Ilocos Region Integrated Flood Control Project Region I	P50,000,000
2.	Pasig-Potrero Erosion and Flood Control, Region III	50,000,000
3.	Pasig River Development Project, Metro Manila, Region IV	18,000,000
4.	Metro Manila Flood Control and Drainage, Region IV	200,000,000
5.	Bicol River Basin Flood Control Projects, Region V	100,000,000
6.	Cotabato-Agusan River Basin Flood Control Projects, Region X	100,000,000
7.	Pampanga-Agno-Tarlac Flood Control Systems, Pampanga and Tarlac, Region III	100,000,000
8.	Various Flood Control and Drainage Projects, Nationwide	300,000,000
TOTAL FOR FLOOD CONTROL AND DRAINAGE	P918,000,000

(d) Multi-Purpose Projects

1.	Various Multi-Purpose and Water Resources Projects, Nationwide	P500,000,000
2.	Laguna Lake Water Resources Projects, Laguna, Regions IV and IV-A	100,000,000
TOTAL FOR MULTI-PURPOSE PROJECTS	P600,000,000
TOTAL FOR WATER RESOURCES DEVELOPMENT	P4,909,000,000

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 Buildings

1.	Nueva Vizcaya State Institute of Technology, Nueva Vizcaya, Region II	P10,000,000
2.	Tarlac National Agricultural College, Tarlac, Region III	25,000,000
3.	Pampanga National Agricultural College, Pampanga, Region III	25,000,000
4.	Central Luzon Polytechnic College, Nueva Ecija, Region III	30,000,000
5.	National Cancer Control Center, Metro Manila, Region IV	14,000,000
6.	Philippine Science and Technology Museum, Metro Manila	40,000,000
7.	Philippine Atomic Energy Commission, Metro Manila Region IV	10,000,000
8.	Alabang Complex Building, Metro Manila, Region IV	27,000,000
9.	NEDA Building, Metro Manila, Region IV	18,000,000
10.	Budget Commission Building, Metro Manila, Region IV	40,000,000
11.	Department of Foreign Affairs Building, Metro Manila, Region IV	40,000,000
12.	Department of Youth and Sports Development, Metro Manila, Region IV	50,000,000
13.	E. Rodriguez Institute of Technology, Metro Manila, Region IV	10,000,000
14.	Food and Drug Administration Building, Metro Manila, Region IV	10,000,000
15.	Construction of Maritime Industry Authority (MARINA) Building, Metro Manila, Region IV	10,000,000
16.	Various University of the Philippine System Buildings, Nationwide	400,000,000
17.	Various Land Transportation Commission Buildings, Nationwide	50,000,000
18.	Various Postal Offices, Nationwide	100,000,000
19.	Various National Buildings, Nationwide	500,000,000
20.	Various Office Buildings in the National & Regional Government Centers, Nationwide	300,000,000
TOTAL FOR NATIONAL BUILDINGS	P1,709,000,000

(b) Hospitals and Sanitaria

1.	Various National Hospitals, Sanitaria and Related Facilities, Nationwide	P300,000,000
2.	Various Rural Health Units and Related Buildings, Nationwide	100,000,000
3.	Various Regional and Satellite Hospitals and Related Facilities, Nationwide	500,000,000
TOTAL FOR HOSPITALS AND RELATED BUILDINGS	P900,000,000

(c) Elementary School Buildings

1.	Various School and Related Facilities, Nationwide	P500,000,000
TOTAL FOR ELEMENTARY SCHOOL BUILDINGS	P500,000,000

(d) Secondary and Other School Buildings

1.	Various Barangay High School Buildings, Nationwide	P100,000,000
TOTAL FOR SECONDARY AND OTHER SCHOOL BUILDINGS	P100,000,000
TOTAL FOR BUILDINGS	P3,209,000,000

TITLE D SPECIAL PROJECTS

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)	Dagat-Dagatan Lagoon	P 230,000,000
TOTAL FOR SPECIAL PROJECTS	P 230,000,000
TOTAL FOR SECTION I	P17,010,000,000

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 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 Economic and Development Authority upon recommendation of department heads concerned	P100,000,000
(b)	For the prosecution of necessary detailed engineering of projects authorized in this and other public works measures, including detailed surveys, soil investigation, detailed designs, preparation of specifications and contract documents, and other related activities that are necessary prior to actual project construction, as may be authorized by the National Economic and Development Authority upon recommendation of department heads concerned	P50,000,000
(c)	For the acquisition of necessary right-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	P200,000,000
(d)	For the construction of warehouses, Grains Center and related facilities necessary for the implementation of programs of the National Grains Authority and other government agencies	P100,000,000
TOTAL FOR SECTION 2	P450,000,000

SPECIAL PROVISIONS

Section 3. Program of Work Required Before Prosecution Public Works. Before prosecuting any public works project, the district, city of 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 P750,000; by the Bureau Head concerned for any project with an estimated cost of more than P300,000, but not more than P750,000; by the Regional Director concerned for any project with an estimated cost of more than P100,000 but not more than P300,000; and by the District or City Engineer concerned for any project with an estimated cost of P100,000 or less.

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.

For projects with an estimated cost of P200,000 or more, than PERT/CPM technique shall be used and a time-sealed 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 not be amended, except in case of unforeseen contingencies, or any change in field condition or other similar circumstances, in which case an 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 more than P25,000 and use of rented equipment is anticipation, deduction of funds but such deduction shall not exceed ten per centum of the released appropriation: Provided 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 of Local Labor. In the execution and construction of any public works project, the labor requirements shall be filled 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 technique to be employed in terms of the criteria in the preceding sentence.

The selected construction technique shall be made part of 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 of 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, delineation 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. 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 Government Estimate, excluding site acquisition, for the preparation or review of the project or plans and specifications devised by the bureau or office concerned; or for a fee not exceeding nine per centum of the Government Estimate, excluding site acquisition, to undertake the detailed design, including plans and specification; or for a fee not exceeding nine per centum of the Government Estimate, excluding site acquisition, based on the approved Program of Work for 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 such 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 and regulations to the contrary notwithstanding and irrespective of the source of funds, all public works projects with a cost of P300,000 or less may be done by administration or force account by the bureau or agency concerned without benefit of public bidding subject to the provisions of Sections 3, 5 and 6 hereof. Public Works projects with a cost of more than P300,000 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 P300,000 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 construction, 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 or 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 thereof.

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 project implementation which shall include engineering, administrative and other overhead expenses incidental thereto: Provided, That such expenditures shall be reflected in the individual project program of work as provided for in Section 3 of this Decree and shall not exceed five per centum of the amount actually released for the project; and Provided, further, That such expenditures shall exclude personnel and other services that are already provided with appropriations under the General Appropriations Acts.

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 treasurers 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 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 Presidential Decree Nos. 3 and 475 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 accomplishment, further work to be done to complete the program, and changes to be incorporated in the next Public Works Appropriations Measures.

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

Done in the City of Manila, this 4th day of April, in the year of Our Lord, nineteen hundred and seventy-eight.