Reassessment of the Capital Program

May 23, 1979

LETTER OF INSTRUCTIONS NO. 865

DIRECTING THE REASSESSMENT OF THE CAPITAL PROGRAM

WHEREAS, it is expected that approved and anticipated increases in the price of imported oil will result in increasing the cost of the infrastructure program; aisa dc

WHEREAS, the limited amount of resources require the reassessment of capital projects of government, with the aim of identifying those projects of highest priority that must continue despite anticipated cost increases;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do hereby Order and Instruct:

MPWTC/MPH

1. The NEDA Committee on Infrastructure shall review the capital projects of the Ministry of Public Highways, the Ministry of Public Works, Transportation and Communications, and of government corporations attached to these Ministries, for the purpose of identifying the projects most essential to the attainment of the objectives of the development plan, under present world conditions.

2. The Committee shall prepare project lists and implementation schedules and cost estimates under alternative assumptions of funds availability, from the assumption that existing ceiling on the infrastructure program is maintained and for a feasible range of increased government budgetary deficit.

3. In its work, the Committee shall ensure that top priority is given to projects that support the following priorities: (a) food production, particularly on legumes and protein sources such as fish, beef, pork, poultry and mutton, and (b) electricity, water, transportation and other basic necessities.

Human Settlements

4. The Minister of Human Settlements shall review the housing program with the aim of proposing measures to relieve the finances of the national government by shifting to the private sector part of the funding and implementation of projects such as the Bagong Lipunan Sites and Services (BLISS) and other housing and land development projects. cdt

Energy

5. The requirements of an accelerated energy exploration and development program shall be estimated by the Minister of Energy, with an indication of the utilization of the Oil Industry Special Fund.

Other Ministries

6. The Minister of the Budget, in coordination with the Ministry heads concerned, shall review the CY 1979 capital program agencies other than those within the MPWTC and MPH, including attached government owned or controlled corporations. The review shall be conducted for purposes of stopping all postponable capital projects, particularly buildings. Capital projects that have not been begun shall cease and ongoing projects shall be allowed to continue only to the minimum extent necessary to render them usable. Savings thus generated shall be used to support projects of utmost priority.

Fund Releases

7. The Minister of the Budget shall suspend releases of funds for capital outlays and equipment, except for school buildings, irrigation and barangay roads projects and for ongoing foreign-assisted projects, pending the completion of the assessment directed under these Instructions:

Deadline

8. The results of these studies shall be submitted to the Minister of Economic Planning, who shall consolidate these for NEDA Board consideration. Advance copies shall, however be directly furnished the President on or before June 30, 1979.

DONE in the City of Manila, this 23rd day of May, Nineteen Hundred and Seventy-Nine. cdt