Appropriation for Amortization of Heavy Construction Equipment Previously Procured Under Deferred Payment Plan

February 25, 1974

PRESIDENTIAL DECREE NO. 393

APPROPRIATING THE SUM OF ONE HUNDRED EIGHTY-FIVE MILLION PESOS FROM THE FUNDS FOR REHABILITATION, IMPROVEMENT AND BETTERMENT OF THE HIGHWAY SPECIAL FUND FOR THE AMORTIZATION OF HEAVY CONSTRUCTION EQUIPMENT PREVIOUSLY PROCURED UNDER THE DEFERRED PAYMENT PLAN

WHEREAS, the Bureau of Public Highways, had purchased under the "deferred payment plan", guaranteed by the Philippine National Bank, several types of heavy construction equipment for the infrastructure program of the government;

WHEREAS, the amortization of these equipment in accordance with the amortization schedule was expected to be financed from the proceeds of rentals collected for their use and other appropriations that may later be made available;

WHEREAS, the proceeds from equipment rentals are also being partly used for the maintenance and repair of these equipment, and the balance thereof is not sufficient to cover the periodic amortizations in accordance with the schedule of payment; aisa dc

WHEREAS, because of the insufficiency of rentals derived from the use of these equipments and the lack of appropriation to amortize their cost in accordance with the amortization plan, the interest on the unpaid obligation that has accrued and compounded has increased;

WHEREAS, in order to be able to liquidate this obligation to minimize the interest thereon and in order that the proceeds from rentals of equipment could be used solely for the maintenance and repair of these equipment, it is necessary to provide adequate funds therefor.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution as Commander-in-Chief of the Armed Forces of the Philippines, and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, as amended, do hereby promulgate and decree:

SECTION 1. The provisions of any existing law, decree, letter of instructions, rule or regulation to the contrary notwithstanding, the sum of one hundred eighty-five million pesos (P185,000,000.00) is hereby appropriated out of the funds for Rehabilitation, Improvement and Betterment of the Highway Special Fund to be used exclusively for the liquidation of the obligation of the Bureau of Public Highways to the Philippine National Bank in connection with the purchase of heavy construction equipment under the deferred payment plan.

SECTION 2. The sum herein appropriated shall be provided from the Highway Special Fund and released to the Bureau of Public Highways annually for a period of three (3) years.

SECTION 3. This Decree shall take effect immediately.

DONE in the City of Manila, this 25th day of February, in the year of Our Lord, Nineteen Hundred and Seventy-Four. acd