Designating Treasurer of the Phil. Roberto B. Tan to Oversee the Municipal Development Fund Office

October 4, 2010 DOF DEPARTMENT ORDER NO. 038-10 In the exigency of the service and in addition to his present duties and responsibilities, Treasurer of the Philippines ROBERTO B. TAN shall oversee the Municipal Development Fund Office (MDFO) and further remain as Chairperson of the MDFO-Policy Governing Board. All orders, circulars, memoranda and other issuances contrary or to or inconsistent herewith are revoked/modified, and all concerned should be guided accordingly. This Order shall take effect immediately. (SGD.) CESAR V. PURISIMA Secretary ATTACHMENT Republic of the Philippines DEPARTMENT OF FINANCE Roxas Boulevard, Corner Vito Cruz Street Manila 1004 DEPARTMENT ORDER NO. 22-08 July 1, 2008 In the exigency of the service and in addition to his present duties and responsibilities, Undersecretary GIL S. BELTRAN shall supervise the Bureau of Local Government Finance. Likewise, Treasurer of the Philippines ROBERTO B. TAN shall remain as the Chairman of the Policy Governing Board of the Municipal Development Fund Office (MDFO). In this regard, Ms. ROSALIA V. DE LEON, who is designated OIC-Head of the International Finance Group, shall also oversee the MDFO. EADSIa All orders, circulars, memoranda and other issuances contrary to or inconsistent herewith are revoked/modified, and all concerned should be guided accordingly. This Order shall take effect immediately. (SGD.) MARGARITO B. TEVES Secretary PRESIDENTIAL DECREE NO. 1914 CREATING A SPECIAL REVOLVING FUND FOR PURPOSES OF FOREIGN ASSISTED PROJECTS APPLICABLE TO LOCAL GOVERNMENTS WHEREAS, it is the stated policy of the National Government to promote self-reliance of local governments in undertaking their socio-economic development programs; WHEREAS, in pursuance of this national policy, various international institutions are providing assistance to the Local Governments, thru the National Government; WHEREAS, there is a need to establish an effective system to make available to the Local Governments these international assistance; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution do hereby order and decree: Section 1. The Municipal Development Fund. There is hereby created a Revolving Fund to be known as the Municipal Development Fund, hereinafter called MDF, which shall be made available to Local Governments (provinces, cities/municipalities) thru the Ministry of Finance. The Ministry of Finance and local government concerned shall enter into appropriate agreement setting forth the terms and conditions thereof. Section 2. Sources and Operations of Fund. The MDF shall be capitalized and funded by proceeds of foreign loans, assistance or grants which are to be made available to the Local Governments for specific purposes, project components and activities set forth in international agreements, entered or to be entered into by the Government of the Philippines with foreign governments and international institutions (IBRD, ADB, USAID, etc.). Foreign loans and assistance released and credited to the MDF shall be covered by Advice of Allotment and Cash Disbursement Ceiling. Funds from the MDF shall be made available to the local governments as loans which shall be treated as trust fund and amortized by the local governments, out of their general fund sources. The amortization (interest and principal) made by the local governments to the MDF shall form part of and accrue to the MDF and shall be made automatically available for relending to finance other similar projects of the local governments. The local governments shall include in their annual/supplemental budget the proceeds of loan from the MDF, their utilization as well as amortization. aESIHT Section 3. For purposes of the preceding and following sections of this decree, a Central Project Office (CPO) under the policy directions of a Steering Committee or similar appropriate organizations shall be established as required in international agreements, provided that MOF, OBM, MLG, MPWH and NEDA shall be members in the said Committee. Financial policies, lending terms and technical requirements for MDF financing shall be approved by the committee in accordance with the provisions of international agreement. Section 4. Administration of Fund. The Ministry of Finance shall administer the MDF provided that the Land Bank, Development Bank of the Philippines or the Bureau of the Treasury may be designated by the Minister of Finance as the depository, disbursing and collecting agent of the MDF subject to the terms, conditions and guidelines as the Minister of Finance may prescribed and in accordance with the provisions of international and other implementing agreement. Section 5. Detailed implementing guidelines and procedures for the MDF and the provisions of this Decree shall be promulgated by the Steering Committee and in accordance with the provisions of international agreements entered into by the Philippine Government in respect of the MDF. Section 6. Any existing provisions of law, rules, regulations or other issuances in conflict or are inconsistent herewith are hereby repealed or modified accordingly. Section 7. This decree shall take effect upon approval. Done in the City of Manila, this 29th day of March, 1984. (SGD.) FERDINAND E. MARCOS BY THE PRESIDENT: (SGD.) JUAN C. TUVERA Presidential Executive Assistant MALACAANG Manila BY THE PRESIDENT OF THE PHILIPPINES EXECUTIVE ORDER NO. 41 REORGANIZING THE ADMINISTRATIVE STRUCTURE OF THE MUNICIPAL DEVELOPMENT FUND, CONSOLIDATING ITS FUNCTIONS IN THE DEPARTMENT OF FINANCE AND FOR OTHER PURPOSES WHEREAS, the Constitution declares it a policy of the State to ensure the autonomy of local governments; WHEREAS, the 1991 Local Government Code provides for a more responsive and accountable local government structure instituted through a system of decentralization whereby local government units have been conferred more power, authority responsibilities, and resources; WHEREAS, this system of decentralization has created a need for local government units to have greater access to sources of funding for development projects; WHEREAS, the present administrative structure of the Municipal Development Fund could be improved to attain these ends; NOW THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Philippines, by virtue of the powers vested in me by law, do hereby order and direct: SEC. 1. The Municipal Development Fund. As provided for in Presidential Decree No. 1914, the Municipal Development Fund, hereafter referred to as MDF, is: (a) a Revolving Fund which shall be made available to local governments (provinces, cities and municipalities) as loans which shall be treated as trust funds and amortized by local governments out of their general fund sources; and (b) capitalized and funded by proceeds of foreign loans, assistance or grants made available to local governments for specific purposes, project components and activities set forth in international agreements, including amortizations (principal and interests) paid by local governments. SEC. 2. Reorganization . The MDF is hereby reorganized, functionally and structurally, in accordance with the Organization Chart incorporated herein as an Annex hereof, and pursuant to the provisions of this Executive Order. The reorganized MDF will be an office under the Department of Finance and is hereby renamed Municipal Development Fund Office, hereafter referred to as MDFO. It will integrate the existing technical functions handled by the Central Projects Offices of the Department of Public Works and Highways and other implementing government agencies and the financial functions of the Municipal Development Fund under the Bureau of Local Government Finance-Department of Finance under one office. The expanded functions will entail additional personnel complement, resources and funding. cHTCaI SEC. 3. Mandate . The MDFO shall continue to perform the following functions: (a) as a source of credit finance in support of the decentralization of services from the national to the local levels of government; (b) promote the acceptability of borrowing as a means of financing a wide range of local government investments; (c) promote and assist local governments in the selection of well-justified and high-quality investments in infrastructure projects and public facilities; (d) encourage a cost-recovery approach to the provision of suitable public services through the levy of appropriate levels of fees and users' charges. In addition, the MDF shall: (e) perform loan and credit operations within the context of a financially-viable and stable credit institution; (f) provide credit finance and/or grants to LGUs for the development of sustainable socio-economic development projects. (g) provide technical assistance to LGUs to enhance their capacity to conduct project identification and selection, loan proposal preparation, and project management and monitoring; (h) issue bond indebtedness and other forms of securities to help finance LGU projects; and (i) develop a system for monitoring LGU creditworthiness and graduating creditworthy LGUs to private sources of capital. SEC. 4. The MDFO Policy Governing Board . The affairs and business of the MDFO shall be directed, its properties managed and preserved, and its power exercised by an MDFO Policy Governing Board to be composed of: Secretary of Finance or his duly designated Undersecretary Chairman Deputy Director General, National Economic and Development Authority, or his representative Member Undersecretary of Public Works and Highways, or his representative Member Undersecretary of the Budget and Management, or his representative Member Undersecretary of the Interior and Local Governments, or his representative Member The representative of the Undersecretary members shall be of a rank not lower than Assistant Secretary level. caIACE The MDFO Executive Director shall act as an ex-officio member of the MDFO Policy Governing Board. SEC. 5. Powers, Duties and Authority . The Policy Governing Board shall have, among other powers, the following duties and authority: (a) to formulate policies necessary to effectively carry out the provisions of this Executive Order. (b) to adopt, amend or change, the rules and regulations as may be necessary for the effective operation of the MDFO in conformity with this Executive Order, existing laws, and international agreements. (c) to approve all MDFO loans, credits and grants and other credit accommodations and may delegate such approving authority within the MDFO; (d) to prescribe such terms and conditions to govern the granting of loans, credits and grants, and other credit accommodations consistent with the provisions of this Executive Order and international agreements; (e) to adopt a plantilla of personnel and an annual budget for the effective operation and administration of the MDFO; (f) to create and establish a "Provident Fund" which shall consist of contributions made by both the MDFO and its officers and employees to a common fund for the payment of benefits to such officers and employees; (g) to acquire and/or dispose supplies, property and equipment for the MDFO in accordance with existing rules and procedures on procurement and disposal of supplies, property and equipment; and (h) to perform such other functions and powers as the President of the Philippines or provisions of existing laws may require. SEC. 6. The Board's Staff. The Board shall have a staff Secretariat, and an Executive Committee which shall meet upon the call of the Chairman or any two (2) of its members, whenever urgent matters requiring Board action have to be acted upon prior to the next scheduled meeting. SEC. 7. The Executive Director . The Chief Operating Officer of the MDFO shall be the Executive Director who shall be appointed by the Policy Governing Board with the approval of the President of the Philippines. The Executive Director shall be assisted by Consultants and Advisers hired for specific assignments. The Board, by rules and regulations, shall determine the powers, functions and duties of the Secretariat and the composition of the Executive Director's staff. cEDaTS SEC. 8. The Deputy Executive Directors . The Policy Governing Board shall appoint, upon the recommendation of the Executive Director, a Deputy Executive Director for Operations, and a Deputy Executive Director for Administration and Finance. The Board, by rules and regulations, shall determine the powers, functions and duties of the Deputy Executive Directors and the Divisions, Sections, Offices and Units under their respective supervision. SEC. 9. The Deputy Executive Director for Operations . The Deputy Executive Director for Operations shall have supervision over: (a) Account Management Division; (b) Technical Operations Division; (c) Evaluation and Appraisal Division; (d) Field Operations Division. SEC. 10. The Deputy Executive Director for Administrative and Finance . The Deputy Executive Director for Administration and Finance shall have supervision over: (a) Accounting Division; (b) Administration and Budget Division; (c) Corporate Planning and Management Information Services Division; (d) Financial Management Division. SEC. 11. MDFO Field Offices . The field office for the MDFO will be established as the need arises and upon the recommendation of the Executive Director and approval of the Board. Each Field Office shall be composed of: (a) Account Management Unit; (b) Technical Operations Unit; (c) Evaluation and Appraisal Unit; (d) Administrative and Finance Unit. SEC. 12. Depository of the MDFO . The Land Bank of the Philippines, the Development Bank of the Philippines, the Bureau of the Treasury or any such other qualified financial institutions shall be the depository, disbursing and collecting agent of the MDFO, subject to the terms, conditions and guidelines, as may be prescribed by the Policy Governing Board and in accordance with the provisions of international and other implementing agency agreements. AISHcD SEC. 13. Transitory Provision . Until such time as the reorganization prescribed herein has been completed and regular positions in the MDFO re-incorporated in the General Appropriations Act, or in a Charter of the Municipal Development Fund: (1) The MDFO shall utilize the plantilla positions provided under the Second Municipal Development Project (MDP II) Central Projects Office. The key positions in the MDFO, as determined by the Policy Governing Board shall be filled by consultants/contractuals funded by the Program Support Account (PSA) and by secondment or detail of personnel of other Government Departments, Bureaus, Offices and Agencies; Provided that all personnel with money and/or property accountabilities, regardless of the nature of their appointments, shall be bonded as required by existing law. (2) Priority in the filling of positions shall be given to those functions which relate to sub-project evaluation and appraisal (which is currently under the Central Projects Offices); loan processing and releases (which is currently under the Bureau of Local Government Finance) and the provision of technical assistance. SEC. 14. Notice or Consent Requirement . If any organizational change herein authorized is of such substance or materiality as to prejudice third parties with rights recognized by law and contract that notice to, or consent of, creditors is required to be made or obtained pursuant to any agreement entered into with any of such creditors, such notice or consent requirement shall be complied with prior to the implementation of such organizational change. SEC. 15. Funding of the MDFO . Funds needed to carry out the provisions of this Executive Order shall be provided from funds made available to the Department of Finance and the Municipal Development Fund. SEC. 16. Separately Clause . Any portion or provision of this Executive Order that may be declared unconstitutional shall not have the effect of nullifying other portions or provisions hereof as long as such remaining portions or provisions can still subsist and be given effect in their entirety. SEC. 17. Repealing Clause . All rules and regulations, resolutions of the existing Policy Governing Board of the Municipal Development Fund, and other issuance or parts thereof, which are inconsistent with the provisions of this Executive Order, are hereby repealed or modified accordingly. Done in the City of Manila, Philippines, this 20th day of November, in the year of Our Lord, nineteen hundred and ninety-eight. (SGD.) JOSEPH E. ESTRADA By the President: (SGD.) RONALDO B. ZAMORA Executive Secretary Municipal Development Fund Office: Phase One With Field Offices