Automatic Return to NEDA of Foreign-assisted Projects with Over 10% Cost Overruns
Executive Order No. 744 mandates that any department or agency with foreign-assisted projects that experience cost overruns exceeding 10% must return the project to the Investment Coordinating Committee (ICC) of the National Economic and Development Authority (NEDA) for reevaluation. This order is in line with the powers of NEDA to coordinate socio-economic development plans and monitor project implementation. The ICC guidelines require an explanation for the revised cost figures and may necessitate reevaluation if project scope changes impact costs. This measure aims to ensure accountability and proper evaluation of public investment projects.
Quick Answers
- What is Automatic Return to NEDA of Foreign-assisted Projects with Over 10% Cost Overruns about?
- Executive Order No. 744 mandates that any department or agency with foreign-assisted projects that experience cost overruns exceeding 10% must return the project to the Investment Coordinating Committee (ICC) of the National Economic and Development Authority (NEDA) for reevaluation. This order is in line with the powers of NEDA to coordinate socio-economic development plans and monitor project implementation. The ICC guidelines require an explanation for the revised cost figures and may necessitate reevaluation if project scope changes impact costs. This measure aims to ensure accountability and proper evaluation of public investment projects.
- What type of law is Executive Order No. 744?
- Automatic Return to NEDA of Foreign-assisted Projects with Over 10% Cost Overruns (Executive Order No. 744) is a Philippine Presidential Issuances enacted by the Congress of the Philippines.
- When was Automatic Return to NEDA of Foreign-assisted Projects with Over 10% Cost Overruns enacted?
- Automatic Return to NEDA of Foreign-assisted Projects with Over 10% Cost Overruns (Executive Order No. 744) was enacted on Jul 24, 2008.
- What is the citation for Automatic Return to NEDA of Foreign-assisted Projects with Over 10% Cost Overruns?
- Automatic Return to NEDA of Foreign-assisted Projects with Over 10% Cost Overruns, Executive Order No. 744, Jul 24, 2008 (Philippines)
Law Information
- Reference Number
- Executive Order No. 744
- Date Enacted
- Category
- Presidential Issuances
- Subcategory
- Executive Orders
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
July 24, 2008
EXECUTIVE ORDER NO. 744
REQUIRING ALL DEPARTMENTS AND AGENCIES WITH FOREIGN ASSISTED PROJECTS COST OVERRUNS OVER 10% TO BE AUTOMATICALLY RETURNED TO THE NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY FOR EVALUATION BY THE INVESTMENT COORDINATING COUNCIL
WHEREAS, Executive Order No. 230 dated 22 July 1987 provides among the powers and functions of the National Economic and Development Authority (NEDA): "The Authority, after due consultation with the private sector, community organizations and beneficiaries, local government units and appropriate public agencies, shall be responsible for coordinating the formulation of continuing, and integrated socio-economic development plans, policies and programs, including the formulation of annual and medium-term public investment programs, programming of official development assistance in the form of grants and concessional loans from foreign governments and multilateral agencies and organizations and the monitoring and evaluation of plan implementation". IEHTaA
WHEREAS, the guidelines and procedures of the NEDA Investment Coordinating Committee (ICC) provide that: "in case a project is cleared by the ICC prior to its appraisal by a prospective funding source and the project experiences an increase/increment of more than 10 percent in total project cost after appraisal, then the project has to undergo ICC reevaluation. The proponent should be able to explain the basis for the revised cost figures. Projects with revisions in scope in any or all of its components shall likewise undergo ICC reevaluation to the extent that this would involve a corresponding change in project cost. However, if the change in project cost and benefits have already been sufficiently captured in the earlier sensitivity analysis and the project remains viable, then reevaluation may not be necessary. Instead, ICC clearance for the cost change shall be secured".
NOW THEREFORE, I, GLORIA M. ARROYO, President of the Philippines, by the powers vested in me by law, do hereby order:
All Departments or agencies with foreign assisted projects' cost overruns over 10 percent shall be automatically returned to the Investment Coordinating Committee of the National Economic and Development Authority for re-evaluation.
DONE in the City of Manila, on this 24th day of July, in the year of Our Lord, Two Thousand and Eight.
Cite This Law
Automatic Return to NEDA of Foreign-assisted Projects with Over 10% Cost Overruns, Executive Order No. 744, Jul 24, 2008 (Philippines)
Automatic Return to NEDA of Foreign-assisted Projects with Over 10% Cost Overruns, Executive Order No. 744 (Phil. 2008)
Related Laws
- Budgetary Implications of Foreign-Assisted ProjectsLetter of Instructions No. 369 • Jan 30, 1976 • Presidential Issuances
- Creating a Special Revolving Fund to Apply Foreign Assisted Projects to Local GovernmentsPresidential Decree No. 1914 • Mar 29, 1984 • Presidential Issuances
- Guidelines for Project Loan Negotiations and Packaging of Government Foreign-Assisted Infrastructure ProjectsExecutive Order No. 278 • Feb 2, 2004 • Presidential Issuances
- Strengthening the Mechanism for the Evaluation, etc. of Projects Proposed for Foreign FinancingLetter of Instructions No. 592 • Sep 5, 1977 • Presidential Issuances
- Approval and Effectivity of the Addenda to the Fifth Investment Priorities Plan and the Third Export Priorities PlanLetter of Instructions No. 64 • Mar 13, 1973 • Presidential Issuances
- Guidelines for Project Loan Negotiations and Packaging of Govt. Foreign-Assisted Infrastructure ProjectsEO 278-2004 • Apr 20, 2004 • Implementing Rules and Regulations
Browse More Presidential Issuances
Explore other laws in the Presidential Issuances category.
View All Presidential IssuancesNeed Help Understanding This Law?
Ask our AI assistant to explain provisions, implications, or related laws.
Ask AI About This Law