Appropriation of Funds for Public Works and Highway Projects

December 22, 1978

BATAS PAMBANSA BLG. 13

AN ACT APPROPRIATING FUNDS FOR PUBLIC WORKS AND HIGHWAY PROJECTS AND FOR OTHER PURPOSES

SECTION 1. Appropriation of Funds. — The following sums, or so much thereof as may be necessary, are hereby appropriated out of the General Fund in the National Treasury, including the proceeds of authorized bond issues and/or loans and grants from local or foreign institutions, to implement public works and highway projects of the National Government, as specified hereunder:

TITLE A

Transport Projects

For the construction, improvement, rehabilitation, reconstruction, and/or completion of the following projects, including detailed engineering and acquisition of sites, equipment, materials, supplies, and services to be used directly for the projects": asia dc

National Capital Region
1.	Manila South Diversion Road
	Interchange (Pasay City)	P20,000,000
2.	Circumferential Road C-3 and
	Radial Road R-10 (Regionwide)	100,000,000
3.	Various local roads in support to
	Regional Development Plans
	(Regionwide)	50,000,000
4.	Various national roads and bridges
	(Regionwide)	80,000,000
5.	Road restoration and rehabilitation
	program (Regionwide)	50,000,000
Region I
6.	Rosario-Laoag Road (La Union,
	Ilocos Sur and Ilocos Norte)	100,000,000
7.	Laoag-Allacapan Road (Ilocos
	Norte)	50,000,000
8.	Ilocos Norte Rural Development
	Project (Ilocos Norte)	50,000,000
9.	Luzon Road Package, Olongapo-
	Bugallon (Pangasinan)	50,000,000
10.	Various projects roads in support
	to Regional Development Plans
	(Regionwide)	10,000,000
11.	Major bridges (Regionwide)	10,000,000
12.	Various national roads and
	bridges (Regionwide)	15,000,000
13.	Road restoration and
	rehabilitation program
	(Regionwide)	20,000,000
Region II
14.	Ilagan-Palanan Road (Isabela)	50,000,000
15.	Chico Irrigation Project, road
	component (Isabela)	30,000,000
16.	Laoag-Allacapan Road (Cagayan)	50,000,000
17.	Various local roads in support to
	Regional Development Plans
	(Regionwide)	10,000,000
18.	Major bridges (Regionwide)	10,000,000
19.	Various national roads (Regionwide)	15,000,000
20.	Road restoration and
	rehabilitation program
	(Regionwide)	20,000,000
Region III
21.	Capaz-Botolan Road (Tarlac and
	Zambales)	50,000,000
22.	Luzon Road Package, Olongapo-
	Bugallon (Zambales)	80,000,000
23.	Various local roads in support to
	Regional Development Plans
	(Regionwide)	10,000,000
24.	Major bridges (Regionwide)	10,000,000
25.	Various national roads (Regionwide)	15,000,000
26.	Road restoration and
	rehabilitation program
	(Regionwide)	20,000,000
Region IV
27.	Mindoro Integrated Rural
	Development Project, road
	component (Mindoro Oriental
	and Mindoro Occidental	60,000,000
28.	Luzon Road Package, Tagaytay-
	Batangas Road (Tagaytay City
	and Batangas)	80,000,000
29.	Various local roads in support to
	Regional Development Plans
	(Regionwide)	25,000,000
30.	Major bridges (Regionwide)	20,000,000
31.	Various national roads (Regionwide)	20,000,000
32.	Road restoration and
	rehabilitation program
	(Regionwide)	30,000,000
Region V
33.	Third and Fourth IBRD Package
	(Albay)	30,000,000
34.	Various local roads in support to
	Regional Development Plans
	(Regionwide)	10,000,000
35.	Major bridges (Regionwide)	10,000,000
36.	Various national roads (Regionwide)	15,000,000
37.	Road restoration and
	rehabilitation program (Regionwide)	20,000,000
38.	Secondary and feeder roads, Bicol
	River Basin (Camarines Sur)	80,000,000
Region VI
39.	Third and Fourth IBRD Package
	(Iloilo, Capiz, Aklan and Negros
	Occidental)	250,000,000
40.	Various local roads in support to
	Regional Development Plans
	(Regionwide)	20,000,000
41.	Major bridges (Regionwide)	20,000,000
42.	Various national roads (Regionwide)	25,000,000
43.	Road restoration and
	rehabilitation program
	(Regionwide)	20,000,000
Region VII
44.	Third and Fourth IBRD Package
	(Cebu)	P120,000,000
45.	Various local roads in support to
	Regional Development Plans
	(Regionwide)	10,000,000
46.	Major bridges (Regionwide)	10,000,000
47.	Various national roads (Regionwide)	15,000,000
48.	Road restoration and
	rehabilitation program
	(Regionwide)	20,000,000
Region VIII
49.	Samar Integrated Rural Development
	Project, road component	200,000,000
50.	Various local roads in support to
	Regional Development Plans
	(Regionwide)	10,000,000
51.	Major bridges (Regionwide)	10,000,000
52.	Various national roads (Regionwide)	15,000,000
53.	Road restoration and
	rehabilitation program (Regionwide)	20,000,000
54.	Palo-Carigara-Ormoc-Maasin
	Sogod Road (Leyte and Leyte del
	Sur)	100,000,000
Region IX
55.	Various local roads in support to
	Regional Development Plans
	(Regionwide)	10,000,000
56.	Major bridges (Regionwide)	10,000,000
57.	Various national roads (Regionwide)	20,000,000
58.	Road restoration and
	rehabilitation program
	(Regionwide)	20,000,000
Region X
59.	Mindanao secondary and feeder
	roads (Misamis Oriental and
	Agusan del Norte)	100,000,000
60.	Various local roads in support to
	Regional Development Plans
	Regionwide)	10,000,000
61.	Major bridges (Regionwide)	10,000,000
62.	Various national roads (Regionwide)	15,000,000
63.	Road restoration and
	rehabilitation program
	(Regionwide)	20,000,000
Region XI
64.	Mindanao secondary and feeder
	roads (South Cotabato)	150,000,000
65.	Various local roads in support
	to Regional Development Plans
	(Regionwide)	10,000,000
66.	Major bridges (Regionwide)	10,000,000
67.	Various national roads (Regionwide)	10,000,000
68.	Road restoration and
	rehabilitation program
	(Regionwide)	20,000,000
Region XII
69.	Mindanao secondary and feeder
	roads (Sultan Kudarat)	P45,000,000
70.	Various local roads in support to
	Regional Development Plans
	Regionwide)	15,000,000
71.	Major bridges (Regionwide)	15,000,000
72.	Various national roads (Regionwide)	20,000,000
73.	Road restoration and
	rehabilitation program (Regionwide)	25,000,000
Nationwide
74.	Major bridges	40,000,000
75.	Road restoration and
	rehabilitation program	80,000,000
		——————
TOTAL FOR HIGHWAYS	P2,900,000,000
		==========
(b)	RAILWAYS
National Capital Region
Light Rail Transit System	P200,000,000
		—————
TOTAL FOR RAILWAYS	P200,000,000
		=========
(c)	PORTS
Region I
1.	Sual Fishing Port Project (Pangasinan)	37,000,000
Region IV
2.	Lucena Fishing Port Project
	(Lucena City)	99,000,000
Region V
3.	Camaligan Fishing Port Project
	(Camarines Sur)	60,000,000
Region VI
4.	Philippine Rural Infrastructure
	Project, port components
	(San Jose de Buenavista,
	Antique; Culasi, Capiz; and
	Dumaguit, Aklan)	32,000,000
5.	Iloilo Fishing Port Project (Iloilo City)	161,000,000
Region VIII
6.	Samar Integrated Rural Development
	Project, port components (San Jose,
	Northern Samar; Catbalogan,
	Samar; and Guiuan and
	Dolores, Eastern Samar)	12,000,000
Region IX
7.	Zamboanga Fishing Port Project
	(Zamboanga City)	72,000,000
Region X
8.	Port of Cagayan de Oro
	(Cagayan de Oro City)	63,000,000
Region XI
9.	Port of Davao (Davao City and
	Davao del Sur)	53,000,000
		——————
TOTAL FOR PORTS	P589,000,000
		==========
(d)	AIRPORTS AND AIR NAVIGATIONAL
FACILITIES
Region I
1.	Laoag International Airport
	(Laoag City)	46,000,000
Region IV
2.	Puerto Princesa Airport
	(Puerto Princesa City)	13,000,000
Region VI
3.	Kalibo Airport (Aklan)	10,000,000
Region VII
4.	Dumaguete Airport
	(Dumaguete City)	11,000,000
Region IX
5.	Pagadian Airport (Pagadian City)	11,000,000
6.	Cagayan de Sulu Airport (Tawi-Tawi)	11,000,000
Region XI
7.	General Santos Airport (General
	Santos City)	22,000,000
8.	Bislig Airport (Surigao del Sur)	10,000,000
		—————
TOTAL FOR AIRPORTS AND AIR
NAVIGATION FACILITIES	P134,000,000
		——————
TOTAL FOR TRANSPORT	P3,823,000,000
		==========

TITLE B

Water Resources Projects

For the construction, improvement, rehabilitation reconstruction, and/or completion of the following projects, including detailed engineering and acquisition of sites, equipment, materials, supplies, and services to be used directly for the projects:

 

Region I
1.	Ilocos Norte Integrated Development
	Project, including Palsiguan
	River and Quiaoit (Quiom-Maypalig)
	Multi-Purpose Projects,
	irrigation component (Ilocos Norte)	P705,000,000
2.	Philippine Rural Infrastructure
	Project, irrigation component (Abra)	12,000,000
3.	National Irrigation System,
	Improvement Project (Regionwide)	20,000,000
Region II
4.	Chico River Basin Project, irrigation
	component (Isabela and Kalinga
	Apayao)	540,000,000
5.	Upper Pampanga River Project
	Watershed Development (Nueva
	Vizcaya)	15,000,000
6.	Cagayan Integrated Area
	Development Project, irrigation
	component (Cagayan)	65,000,000
7.	Philippine Rural Infrastructure
	Project, irrigation component
	(Kalinga-Apayao)	19,000,000
8.	National Irrigation System
	Improvement Project (Regionwide)	20,000,000
Region III
9.	Upper Pampanga River Project
	Watershed Development Project
	(Nueva Ecija)	15,000,000
10.	Tarlac Irrigation System
	Improvement Project (Tarlac)	26,000,000
Region IV
11.	Laguna de Bay Development Project
	irrigation component (Mabitac,
	Pagsanjan, Cabuyao, and San Pedro,
	Laguna; and Baras, Tanay, and Pililla,
	Rizal; and Cavite)	70,000,000
12.	Amnay (Asis River) Irrigation
	Project (Mindoro Occidental)	18,000,000
13.	National Irrigation Systems
	Improvement Project (Regionwide)	20,000,000
14.	Mindoro Integrated Area Development
	Project, irrigation component
	(Mindoro Oriental and Mindoro
	Occidental)	22,000,000
15.	Upper Pampanga River Project
	Watershed Development (Quezon)	15,000,000
Region V
16.	Baliuag-San Vicente Area Development
	Project, irrigation component
	(Camarines Sur)	90,000,000
17.	Rinconada Area Development
	Project, irrigation component
	(Camarines Sur)	42,000,000
18.	Bula-Minalabac Irrigation Project
	(Camarines Sur)	22,000,000
19.	National Irrigation Systems
	Improvement Project (Regionwide)	20,000,000
Region VI
20.	Philippine Rural Infrastructure
	Project, irrigation component
	(Aklan, Antique, and Capiz)	27,000,000
21.	National Irrigation Systems
	Improvement Project (Regionwide)	20,000,000
Region VII
22.	Philippine Rural Infrastructure
	Project, irrigation component (Bohol)	19,000,000
Region VIII
23.	Samar Integrated Rural Development
	Project, irrigation component
	(Northern Samar)	142,000,000
24.	National Irrigation Systems
	Improvement Project (Regionwide)	20,000,000
Region IX
25.	Philippine-Australian Development
	Project, irrigation component
	(Zamboanga del Sur)	14,000,000
26.	National Irrigation Systems Improvement
	Project (Regionwide)	20,000,000
Region X
27.	Agusan del Sur Irrigation Project
	(Bunawan-Salvacion, Agusan del
	Sur)	50,000,000
28.	Pulangui River Irrigation Project
	Valencia, Bukidnon)	39,000,000
29.	Agusan II Irrigation Project (Cabadbaran,
	Agusan del Norte; and
	Solibao-Gibong, Agusan del Sur)	60,000,000
30.	National Irrigation Systems Improvement
	Project (Regionwide)	20,000,000
Region XI
31.	Tago River Irrigation Project (Surigao
	del Sur)	138,000,000
32.	Davao del Norte Irrigation Project II
	(Libuganon-Lasang, Davao del Norte)	78,000,000
33.	National Irrigation System Improvement
	Project (Regionwide)	20,000,000
34.	Allah Valley Irrigation Project
	(South Cotabato)	220,000,000
Region XII
35.	National Irrigation Systems
	Improvement Project
	(Regionwide)	20,000,000
		——————
TOTAL FOR IRRIGATION	P2,663,000,000
		===========
(b)	FLOOD CONTROL AND DRAINAGE
National Capital Region
1.	Manggahan Floodway (Rizal)	P132,000,000
2.	Napindan Hydraulic Control Structure,
	flood control component (Rizal)	66,000,000
3.	Marikina Multi-purpose Project,
	flood control component (Rizal)	88,000,000
Region I
4.	Tina-Gasgas Flood Control and Twin
	Impounding Reservoirs (Ilocos
	Norte)	200,000,000
5.	Catchment basins and impounding
	reservoirs, flood control component
	(Regionwide)	50,000,000
6.	Construction and reconstruction
	of railroad and highway bridges
	with inadequate waterways
	(Regionwide)	75,000,000
7.	Dredging of main rivers and outlets
	(Regionwide)	15,000,000
8.	River training and bank protection
	of various rivers (Regionwide)	5,000,000
9.	Local flood control, drainage and
	related activities (Regionwide)	5,000,000
Region II
10.	Magat Multi-Purpose Project, flood
	control component (Isabela)	200,000,000
11.	Cagayan River Control (Cagayan and
	Isabela)	82,000,000
12.	Matuno Food Control and
	Impounding Reservoir (Nueva
	Vizcaya)	100,000,000
13.	Sta. Cruz Flood Control and
	Impounding Reservoirs (Nueva
	Vizcaya)	100,000,000
14.	Catchment basins and impounding
	reservoirs, flood control component
	(Regionwide)	40,000,000
15.	Dredging of main rivers and outlets
	(Regionwide)	3,000,000
16.	River training and bank protection
	of various rivers (Regionwide)	35,000,000
17.	Local flood control, drainage and
	related activities (Regionwide)	12,000,000
Region III
18.	Labangan Floodway (Bulacan)	10,000,000
19.	Catchment basins and impounding
	reservoirs including sabo works,
	flood control component (Regionwide)	150,000,000
20.	Construction and reconstruction
	of railroad and highways bridges
	with inadequate waterways
	(Regionwide)	150,000,000
21.	Dredging of main rivers and outlets
	(Regionwide)	50,000,000
22.	River training and bank protection
	of various rivers (Regionwide)	30,000,000
23.	Local flood control, drainage and
	related activities (Regionwide)	20,000,000
Region IV
24.	Mindoro Flood Control and
	Schistosomiasis Control Project
	(Mindoro Oriental)	12,000,000
25.	Cavite Flood Control and Drainage
	(Cavite)	15,000,000
26.	Catchment basins and impounding
	reservoirs, flood control component
	(Regionwide)	3,000,000
27.	Dredging of main rivers and outlets
	(Regionwide)	4,000,000
28.	River training and bank protection
	of various rivers (Regionwide)	3,000,000
29.	Local flood control, drainage and
	related activities (Regionwide)	2,000,000
Region V
30.	Mayon Volcano Sabo Works and
	Related Projects (Albay and
	Legaspi City)	18,000,000
31.	Sorsogon Schistosomiasis Control
	Project (Sorsogon)	10,000,000
32.	Lake Bato-Pantao Bay Diversion
	Channel (Camarines Sur)	230,000,000
33.	Catchment basins and impounding
	reservoirs, including sabo works,
	flood control component
	(Regionwide)	50,000,000
34.	Construction and reconstruction
	of railroad and highway bridges
	with inadequate waterways
	(Regionwide)	50,000,000
35.	Dredging of main rivers and outlets
	(Regionwide)	20,000,000
36.	River training and bank protection
	of various rivers (Regionwide)	10,000,000
37.	Local flood control, drainage and
	related activities (Regionwide)	10,000,000
Region VI
38.	Panay River Control (Capiz and
	Roxas City)	18,000,000
39.	Catchment basins and impounding
	reservoirs, flood control and
	component (Regionwide)	20,000,000
40.	Dredging of main rivers and outlets
	(Regionwide)	8,000,000
41.	River training and bank protection
	of various rivers (Regionwide)	6,000,000
42.	Local flood control, drainage and
	related activities (Regionwide)	4,000,000
Region VII
43.	Catchment basins and impounding
	reservoirs, including sabo works,
	flood control component
	(Regionwide)	30,000,000
44.	Dredging of main rivers and outlets
	(Regionwide)	8,000,000
45.	River training and bank protection
	of various rivers (Regionwide)	4,000,000
46.	Local flood control, drainage and
	related activities (Regionwide)	8,000,000
Region VIII
47.	Sab-a Basin Schistosomiasis Control
	and Drainage Project (Leyte)	17,000,000
48.	Catchment basins and impounding
	reservoirs, flood control component
	(Regionwide)	30,000,000
49.	Dredging of main rivers and outlets
	(Regionwide)	8,000,000
50.	River training and bank protection of
	various rivers (Regionwide)	3,000,000
51.	Local flood control, drainage and
	related activities (Regionwide)	9,000,000
Region IX
52.	Saaz River Control and Drainage
	(Zamboanga City)	10,000,000
53.	Catchment basins and impounding
	reservoirs, flood control component
	(Regionwide)	15,000,000
54.	Dredging of main rivers and outlets
	(Regionwide)	5,000,000
55.	River training and bank protection
	of various rivers (Regionwide)	6,000,000
56.	Local flood control, drainage
	and related activities (Regionwide)	4,000,000
Region X
57.	Catchment basins and impounding
	reservoirs, flood control component
	(Regionwide)	120,000,000
58.	Dredging of main rivers and outlets
	(Regionwide)	30,000,000
59.	River training and bank protection
	of various rivers (Regionwide)	30,000,000
60.	Local flood control, drainage and
	related activities (Regionwide)	20,000,000
Region XI
61.	Davao River Control, drainage and
	related projects (Davao City)	52,000,000
62.	Tuganay River Control (Carmen,
	Davao del Norte)	15,000,000
63.	Catchment basins and impounding
	reservoirs, flood control component
	(Regionwide)	40,000,000
64.	Dredging of main rivers and outlets
	(Regionwide)	10,000,000
65.	River training and bank protection
	of various rivers (Regionwide)	10,000,000
66.	Local flood control, drainage
	and related activities (Regionwide)	10,000,000
Region XII
67.	Catchment basins and impounding
	reservoirs, flood control component
	(Regionwide)	200,000,000
68.	Dredging of main rivers and outlets
	(Regionwide)	65,000,000
69.	River training and bank protection
	of various rivers (Regionwide)	30,000,000
70.	Local flood control, drainage
	and related activities (Regionwide)	30,000,000
		_____________
TOTAL FOR FLOOD CONTROL
AND DRAINAGE	P2,930,000,000
		==========
(c)	WATER SUPPLY
1.	Rural Water Supply Communal
	Systems (Nationwide)	40,000,000
		——————
TOTAL FOR WATER SUPPLY	P40,000,000
		===========
TOTAL FOR WATER RESOURCES	P5,633,000,000
		===========
GRAND TOTAL	P9,456,000,000
		==========

SECTION 2. Detailed Plans and Programs of Work. — Prior to the actual construction, improvement, rehabilitation and/or reconstruction of the projects covered in whole or in part by appropriations in this Act, approval of detailed engineering plans and programs of work by the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, shall be obtained for every project with an estimated cost greater than P1,000,000; by the Bureau Head concerned for every project with an estimated cost greater than P500,000 but not more than P1,000,000; by the Regional Director concerned for every project with an estimated cost greater than P200,000 but not more than P500,000; and by the District or City Engineer concerned for every project with an estimated cost of P200,000 or less. The program of work shall include, among other things, estimates of the work items quantities and costs, a PERT/CPM (Program Evaluation Review Technique/Critical Path Method) network of the project activities, and monthly cash flows. The program of work shall cover at least a usable portion of the project and no construction shall be started for portions of the project that are less than usable, except projects requiring stage construction, provided that continuity of construction up to the completion of a usable portion is assured. Once the program of work is approved, it shall serve as the basis for the implementation of the project and the corresponding expenditure of funds. No project shall be divided into smaller portions for the purpose of circumventing the provisions of this Section.

SECTION 3. Local Labor. — In the implementation of projects covered by appropriations in this Act, the required unskilled labor shall be procured, where available, from the sitio, barangay, poblacion, municipality or city where the project is located, and, for this purpose, a certification from the City or Municipal Mayor or Barangay Captain, as the case may be, shall be secured as to the availability of the unskilled labor. Skilled labor shall be procured, where available, from within the province where the project is located. Specialized skilled labor may be procured outside the province where the project is located.

SECTION 4. Labor-Intensive Methods. — Whenever technically and economically feasible, labor-intensive methods shall be used in the prosecution of the projects authorized in this Act: Provided, That (a) the estimated financial cost of each project done by labor-intensive methods does not exceed the cost of the best alternative construction method defined by the agency concerned by more than ten per centum (10%), (b) the estimated duration of the project done by labor-intensive methods does not exceed the duration of the best alternative method defined by the agency concerned by more than fifty per centum (50%), and (c) the employment of workers in the projects will not unduly impair the labor requirements of agricultural production: Provided, finally, That before any such project is prosecuted, the agency concerned shall prepared 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 aforestated. The District or City Engineer concerned shall certify in the program of work that he has maximized the use of labor-intensive methods in accordance with the foregoing criteria. The purchase of hand tools and other work implements for undertaking projects by labor-intensive methods may be charged against project funds not exceeding five per centum (5%) of the estimated project cost. These implements may be turned over to the laborers with the payment therefor deductible from their wages on reasonable installments during the duration of their employment in the project.

The agencies concerned shall refer to and take into consideration the relevant studies of the Ministry of Public Works, Transportation and Communications and the Ministry of Public Highways for the identification of project work items or activities suitable for labor-intensive methods of construction.

SECTION 5. Pre-Construction Activities. — In the implementation of the work, a general plan of operations shall be prepared to indicate the methods and the procedures to be followed. This plan will cover and organize all relevant fields of study, delineation of responsibilities for undertaking each phase, specifying or analyzing all analytical procedures and resources to be required for conducting the studies.

SECTION 6. Purchase of Materials and Supplies. — The Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, is authorized, subject to bidding and auditing requirements, to procure the necessary materials and supplies for the construction, reconstruction, improvement, repair and/or rehabilitation of any project covered by appropriations in this Act. When these materials and supplies are obtainable locally in the province or city where the project is located, the same may be procured by the District of City Engineer or, in the case of special projects, the Project Manager, without prior authority from the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, subject to bidding and auditing requirements. No surcharge shall be imposed for the service of procuring such materials and supplies. The expenditures for these materials and supplies shall not exceed the estimated cost for the same as stated in the approved program of work.

SECTION 7. Prosecution of Projects by Administration. — Any project covered by appropriations in this Act with a cost of P500,000 or less, based on the approved program of work under Section 2 hereof, may be done by administration or force account by the bureau or agency concerned without benefit of public bidding. Every project with a cost of more than P500,000 shall be advertised for public bidding, provided that, if there are no acceptable bids for such project, the project may be prosecuted by administration by the bureau or agency concerned after securing the approval of the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is P2,000,000 or less; and the approval of the President of the Philippines, upon recommendation of the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is more than P2,000,000. In case of urgent necessity or emergency, however, a project costing more than P500,000 may be prosecuted by administration, without prior public bidding, the bureau or agency concerned, subject to the approval by the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is P2,000,000 or less; and to the approval of the President of the Philippines, upon recommendation of the Minister of Public Work, Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is more than P2,000,000.

SECTION 8. Negotiated Contracts. — Pursuant to the general policy of undertaking projects by contract after public bidding, no project covered by appropriations in this Act shall be prosecuted by negotiated contract except: (a) in cases where public bidding has failed to produce bids acceptable to the bureau or agency concerned; or (b) in case of urgent necessity or emergency or danger to life and property; or (c) in case of a project which is contiguous to an on-going project under contract, in which case the agency concerned may negotiate with the contractor of the on-going project to undertake the additional work under the same contractual terms and conditions of the non-going contract less credit for mobilization, except in cases of extraordinary inflation or state of recession declared by the government: Provided, That no negative slippage is incurred by the contractor in any of his on-going projects: Provided, further, That the additional work is within his contracting capabilities. Authority to negotiate contracts for projects under these exceptional cases shall be subject to prior approval by the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is P2,000,000 or less; and to approval by the President of the Philippines, upon recommendation of the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is more than P2,000,000.  cdt

SECTION 9. Engineering and Administrative Overhead. — Appropriations authorized in this Act shall be used solely for project implementation which may include direct engineering and administrative overhead expenditures incidental thereto. These expenditures shall be reflected in the individual project program of work provided for in Section 2 of this Act and shall not exceed five per centum (5%) of the amount actually released for the project. The expenditures shall be reduced to the extent of any personnel and other services that are already supported by regular appropriations of the agencies concerned.

SECTION 10. Reports. — The head of the bureau or agency concerned shall submit to the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, quarterly accomplishment reports, copies of which shall be furnished the President (Prime Minister), the National Economic and Development Authority, the Ministry of the Budget, the Speaker of the Batasang Pambansa and the Chairman of the Regional Development Council of the Region where the project is undertaken. At the end of the calendar year, the Minister of Public Works, Transportation and Communications and the Minister of Public Highways, shall submit their annual accomplishment reports which shall include the appropriations released as of the end of the calendar year, the extent of the work accomplished, further works to be done to complete the program of broad categories of public works and public highway projects and recommendations, if any, for transfer of appropriations or changes of program to be incorporated in the succeeding appropriations measure, to the President (Prime Minister), with copies furnished the National Economic and Development Authority, the Ministry of the Budget and the Batasang Pambansa through the Speaker.  cd i

SECTION 11. Separability. — If any provision of this Act is declared unconstitutional, the remaining provisions shall remain in force.

SECTION 12. Effectivity. — This Act shall take effect immediately upon approval.

Approved: December 22, 1978

Published in the Official Gazette, Vol. 75 No. 5 Page 858 on January 29, 1979.