Relative to the Regional Development Fund

February 15, 1978

LETTER OF IMPLEMENTATION NO. 61

RELATIVE TO THE REGIONAL DEVELOPMENT FUND

WHEREAS, the national Government has adopted Regional Planning and Development as an instrument in accelerating national growth and development;

WHEREAS, the General Appropriations Decree provides a sum for a Regional Development Fund intended to be national government counter-part regional projects approved by the Regional Development Council (RDC);

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do hereby issue the following guidelines for the use of the capital outlays portion of the Regional Development Fund:

1.0 Purpose

1.1 To accelerate regional development by providing funds for economically sound projects of regional significance.

1.2 To encourage pooling of government resources/capabilities for the implementation of regional projects.

2.0 Eligible Projects

The following criteria shall be satisfied for projects to be eligible for RDF funding.

2.1 The project shall be identified by the RDC as beneficial and of high priority for the socio-economic development of the region, as against projects which are of significance only to one province/city in the region.

2.2 Priority shall be given to projects which are supportive and/or part of an integrated system of projects being implemented by national agencies or local government units and which are supportive of Regional Development Plans.

2.3 Projects must be economically justifiable.

2.4 Only projects which satisfy the above-mentioned criteria and which cannot be funded entirely out of the budgets of regular government agencies shall be approved for funding under the RDF with the corresponding local government counterpart.

3.0 Limitations in the use of Regional Development Fund

Project costs that shall be covered by the RD fund together with the corresponding local counterpart shall include:

3.1 Direct labor charges;

3.2 Commodity coats identified in hills of materials;

3.3 Petroleum, oil and lubricants for equipment used in the project and other related direct project costs.

No overhead charges, "e.g., honorarium to regular employees:" shall be charred to the RD fund.

4.0 Review and approval Procedures

4.1 The various Regional Development Councils shall prepare an annual program for regional development projects. The program shall be integrated and reviewed by a Permanent Committee consisting of the heads of NEDA, DLGCD and the Budget Commission. The Committee shall make its recommendations to the President within the limits of funding availability and the priorities of the national development plan.

4.2 Project costing P4 million or more should be duly supported by a feasibility study following a format to be prescribed by the Committee, project costing below P4 million should be supported by a project profile, the format of which shall also be duly prescribed.

5.0 Fund Release

Funds shall be released by the Budget Commission directly to the designated implementing agency or local government unit following a reimbursement system as shall be developed by the Development of Local Government and Community Development and the Budget Commission.

6.0 Rules and Regulations

The Commissioner of the Budget shall issue the necessary rules and regulations on the use and Administration of the RD fund.

DONE in the City of Manila, this 15th day of February, in the year of Our Lord, Nineteen Hundred and Seventy-Eight.