Machinery and Mechanism for Utilization of Economic Assistance Proceeds from the Military Bases Agreement

May 27, 1980

LETTER OF INSTRUCTIONS NO. 1030

ESTABLISHING THE IMPLEMENTING MACHINERY AND MECHANISM FOR THE UTILIZATION OF ECONOMIC ASSISTANCE PROCEEDS FROM THE MILITARY BASES AGREEMENT

WHEREAS, the Military Agreement of 1947, as amended in 1979, between the United States of America and the Republic of the Philippines provides, in addition to military assistance, economic assistance to Philippines development programs;

WHEREAS, the General Appropriations Act of 1980 authorizes the utilization of proceeds from economic aid derived under the Military Bases Agreement for the Bagong Lipunan Sites and Services Program and for other priority projects of the government;

WHEREAS, in order to actualize the economic benefits derived from the assistance agreement there is a need to constitute the implementing machinery and mechanisms for the allocation and application of the assistance proceeds; cd

NOW, THEREFORE, I, FERDINAND E. MARCOS, by virtue of the powers vested in me by the Constitution, do hereby direct the following: cd i

1. The proceeds of the Economic Support Fund (ESF) made available to the Philippine Government under the Military Bases Agreement, as amended, shall be allocated and utilized for priority development programs and projects of the government particularly the Bagong Lipunan Sites and Services Program, subject to the approval of the President pursuant to Section 14, General Provisions of the General Appropriations Act of 1980.

2. The ESF proceeds shall be treated as a Special Account on the Treasury of the Philippines provided that pertinent provisions of P.D. No. 1177 (Sections 40, 50 and 51) and LOI 981 shall not apply.

3. There is hereby created a Management Advisory Committee (MAC) with the Minister of Human Settlements, as Chairperson, and with the Minister of Defense, Minister of Industry, Minister of Budget, Minister of Public Works, Minister of Education and Culture, Minister of Economic Planning and Minister of Agriculture as members, to advise the President on the allocation and utilization of the ESF. For this purpose the MHS shall serve as the Secretariat to the MAC. cd

4. The Management Advisory Committee shall

(a) determine the eligible development programs and projects of the Government that may avail of the ESF;

(b) program the allocation of the ESF among the priority programs and projects;

(c) represent the Philippine Government in dealing with USAID or any instrumentalities of the USA dutifully authorized to handle ESF issues; cd

(d) submit to the President of the Philippines for final approval the utilization plan of the ESF;

(e) prepare and submit to the Minister of the Budget the Philippine Government counterpart requirements to implement the programs/projects for approval by the President; and

(f) submit regular accomplishment reports to the President of the Philippines.

DONE in the City of Manila, this 27th day of May, in the year of Our Lord, Nineteen Hundred and Eighty. aisa dc