Revised Guidelines in the Identification, Validation, Prioritization, Realignment, and Implementation of CARP Infrastructure Projects

October 25, 2007

PARC EXECUTIVE COMMITTEE ADMINISTRATIVE ORDER NO. 01-07

 

ARTICLE I

Preliminary Provisions

SECTION 1. Prefatory Statement. — Section 35 of Republic Act No. 6657, known as the Comprehensive Agrarian Reform Law of 1988, as amended, mandates the Department of Agrarian Reform (DAR) to "provide general support and coordinative services" in carrying out various support services to farmer-beneficiaries and affected landowners such as irrigation facilities, infrastructure development and public works projects, price support for all agricultural produce, and credit and training assistance. Section 37 of the same Act also empowers the Presidential Agrarian Reform Council (PARC) to ensure that support services to farmer-beneficiaries are provided such as land survey and titling, liberalized terms on credit facilities and production loans, and infrastructure such as access trails, mini-dams, public utilities, marketing and storage facilities.

In the same manner, Executive Order No. 406 was issued which mandates certain departments and agencies of the national government to align their respective programs and projects with the Comprehensive Agrarian Reform Program (CARP). It also enlists the active participation of the Provincial Agrarian Reform Coordinating Committees (PARCCOMs) and the CARP Implementing Teams (CITs) at the national, regional and provincial levels to allow greater coordination and synchronization in the implementation of their respective programs under CARP.

In reference to the foregoing relevant provisions of existing laws and policies and in view of the need to effect a coordinated and cost-effective approach in implementing the various infrastructure projects under CARP, PARC Executive Committee Administrative Order No. 1, Series of 1996 (General Guidelines in the Identification, Validation, Prioritization and Monitoring of CARP Projects), is hereby revised as follows:

SECTION 2. Statement of Policies. — The various activities and processes involved in project identification, validation, prioritization, approval, funds programming, funds realignment and implementation shall be governed by the following policies: IDSaTE

a. Project Identification, Validation, Prioritization, Approval, and Implementation

(a.1) The bottom-up approach in the process of identification, validation and prioritization should be observed by all concerned and will involve the participation of the beneficiaries themselves, local government units (LGUs), members of Congress, peoples' organizations (POs), non-government organizations (NGOs), and other concerned sectors/stakeholders of the program, in close coordination with the field offices of DAR, other CARP implementing agencies (CIAs), and PARCCOMs.

(a.2) The process of project validation shall give due significance on the extent of land tenure improvement in terms of hectarage which have been or to be covered under the CARP and on the number of beneficiaries who have received or to be awarded with the land.

(a.3) Projects which were prioritized at the lower level shall be given priority in the allocation of funds. On the other hand, projects which were identified at the higher level may also be given due consideration in the prioritization provided that they were included in the priority list of projects earlier identified and had passed the validation processes undertaken by the DAR provincial office, project beneficiaries, LGUs, and concerned CIAs at the field level.

(a.4) The conduct of preliminary engineering and/or detailed engineering and feasibility studies shall be undertaken by the National Irrigation Administration for the construction of new communal irrigation projects to ensure that the implementation of these projects are viable from the technical, socio-economic and financial viewpoints. On the other hand, the conduct of these activities/studies for farm-to-market roads and bridges will be undertaken on a case-to-case basis, as determined and recommended by the DPWH or DAR.

(a.5) Projects should be free from any problem about road right-of-way (ROW) which should have been determined during the project validation stage and it should be a pre-requisite before a project can be endorsed and/or approved for funding to ensure its smooth implementation.

(a.6) The participation of the local government units in the implementation of infrastructure projects, in accordance with the specific provisions hereof, shall be given due recognition in support of promoting local governance and in fostering greater commitment among them to maintain these projects.

b. Realignment

Realignment of projects may be allowed under the following circumstances:

(b.1) The projects are covered with valid and effective Special Allotment Release Orders (SAROs), including all unobligated year-end balances of allotment which remain valid and available for obligation until 31 December of the immediately succeeding year, as stipulated under National Budget Circular No. 406; cDEHIC

(b.2) Request for realignment shall be entertained only within 90 days after the date of issuance of the SARO or within the deadline set for realignment by the DBM, whichever comes first, except on some meritorious cases as may be determined and recommended by the PARC Secretariat to the DBM.

(b.3) In case of request for realignment to substitute project:

(b.3.1) The substitute project shall come from the updated and validated long list of priority projects endorsed by DAR-PDMS and the substitute project must be approved by the Chairman of the PARC Executive Committee upon recommendation by the PARC Secretariat;

(b.3.2) The substitute project should directly benefit the ARCs wherein its level of development (e.g., based on ARC Level of Development Assessment) for infrastructure component is Level 1;

(b.3.3) The substitute project should be within the same Congressional District for which the fund was originally allocated with priority given to the original project site whenever feasible; and

(b.3.4) The cost of the substitute project must not exceed the approved cost of the original project and available budget in a given current year.

(b.4) The projects were affected by natural calamities or by force majeure as declared by authorized government officials;

(b.5) The projects require corrections which affect their sub-category (e.g., new construction versus improvement/rehabilitation) or their project titles due to typographical errors in earlier project identification, validation and reprogramming phases and fund releases; or

(b.6) Other circumstance/s which may be allowed by the PARC/PARC Executive Committee in the future.

(b.7) In all of the above circumstances, requests for realignment shall be in conformity with the general provisions on realignment of the current General Appropriations Act (GAA) and subsequent GAAs.

c. Funds Programming

(c.1) The programming of funds shall be based on the approved program of work (POW) and schedule of implementation to ensure completion of the projects within the planned period as well as to achieve efficiency in the allocation of scarce resources.

(c.2) Ongoing projects with remaining funding requirements, particularly the construction of new or rehabilitation of existing communal irrigation systems, should be prioritized for completion at the earliest possible time to avoid further costs overrun.

d. Use of Savings

The utilization of savings from projects with concomitant reprogramming of authorized funds for the extension of the said project or for entirely new project within or outside the same barangay may be allowed within the validity of the corresponding SARO. Otherwise, the savings shall not be used for other project and these shall be reverted to the ARF.

e. Project Categories

There shall be two (2) major categories of infrastructure projects, unless the PARC/PARC Executive Committee expands or reduces the number of the said categories in the future, which will be implemented under CARP. These include the following: aEHAIS

(e.1) Rural Road Projects

Under rural road projects, there shall be three (3) sub-project categories,

(e.1.1) Farm-to-Market Road (FMR) which can either be in the form of the following:

(e.1.1.1) Road Construction (RC) which will involve new opening of farm-to-market roads; or

(e.1.1.2) Road Rehabilitation (RR) which will involve the restoration and/or improvement of the road facility.

(e.1.2) Bridge which will be reinforced concrete deck girder (RCDG) or bailey bridge (BB); and

(e.1.3) Multi-Purpose Pavement (MPP) which will serve primarily as solar dryers and as facilities for socio-cultural and sports activities.

The standards for RC, RR, bridge and MPP shall be in accordance with the specifications set forth under Department Order No. 27, Series of 1989, by the DPWH.

(e.2) Communal Irrigation Projects (CIPs)

This category will include new construction and rehabilitation of existing communal irrigation systems (CISs).

f. Implementation of CARP Infrastructure Projects by the Local Government Units

Except for communal irrigation projects; the LGUs may be allowed to implement CARP infrastructure projects by itself, i.e., by administration. The terms and conditions for such undertaking shall be embodied in a Memorandum of Agreement (MOA) to be signed between the authorized officials of the LGU and the CARP implementing agency (CIA). It shall be governed by the following policies:

(f.1) The LGU must possess the demonstrated capability to implement the project by administration, as recommended by the concerned District Engineer and approved by the Regional Director of the DPWH, using the evaluation criteria prescribed under this Administrative Order. In case of DAR projects, the LGU's capability shall also be evaluated by the concerned District Engineer and approved by the Regional Director of DPWH using the aforesaid criteria.

(f.2) The budget for the project shall be released by the Department of Budget and Management (DBM) to the DPWH or DAR; ADCEaH

(f.3) The DPWH or DAR shall release mobilization fund to the LGU equivalent to fifteen percent (15%) of the approved project cost and, thereafter, it will make subsequent progress payments to the concerned LGU based on its Progress Billings which should be supported by the following:

(f.3.1) In case of projects under DPWH, submission of Statements of Work Accomplished approved by the District Engineer; or

(f.3.2) In case of projects under DAR, submission of the physical and financial reports as certified by the PARO II.

(f.4) The LGU shall implement the project in accordance with the Program of Work, plans, specifications, project cost and schedule approved by the authorized official of DPWH or DAR;

(f.5) The overall monitoring of the project being implemented by the concerned LGU shall be the responsibility of the DPWH or DAR in accordance with the monitoring procedures set forth under this Administrative Order; and

(f.6) LGUs with unliquidated project funds with DPWH or DAR shall not be allowed to undertake a new project unless the same is settled with the concerned agency.

SECTION 3. Definition of Terms. — As used in this Administrative Order, selected terms and concepts enumerated hereunder are defined as follows: HIcTDE

a. Agrarian Reform Community refers to "a barangay or a cluster of barangays primarily composed and managed by Agrarian Reform Beneficiaries who shall be willing to be organized and undertake the integrated development of an area and/or their organizations/cooperative" (RA No. 7905).

b. ARC Level of Development Assessment is a tool designed to determine the growth of the ARCs and the extent by which interventions of key ARC players are translated concretely towards ARBs' socio-economic and political empowerment. The assessment focuses on the status of the ARCs in the areas of land tenure improvement (LTI), organizational maturity (OM), economic and physical infrastructure support services (ECOPISS), farm productivity and income (FPI), basic social services (BSS), and gender and development (DAR MC No. 3, Series of 2001).

c. Detailed Engineering is an activity which seeks to provide the technical refinements of the project and consists of all advanced technical operations necessary to carry the project from the preliminary engineering level to that stage where actual procurement, construction and/or installation work may be started.

d. Memorandum of Agreement is a legal document signed between the authorized official of the LGU and the concerned CIA which bind them to fulfill their respective roles and obligations for the successful implementation of an infrastructure project under CARP.

e. Programming is the process of rational allocation of financial resources to a specific activity or set of project in a given period to ensure the completion of that activity or project as planned and, thus, attain the desired objective/s of the project.

f. Progress Billing is a process wherein the LGU submits its bill of expenditures to the DPWH or DAR, for which the former is reimbursed by the latter, for an activity undertaken or materials purchased in connection with the construction of an infrastructure project being implemented by that LGU in accordance with the MOA signed between the said two parties.

g. Project Identification is the initial process of determining the socio-political/cultural and economic needs of an ARC, undertaken by the ARBs themselves, LGUs, concerned CIAs, PARCCOM/PCIT, cooperatives, and/or by the NGOs/POs.

h. Project Monitoring is the routine gathering and reporting performance data (both input and output) against measures of expected performance (NEDA Project Development Manual, 1984).

i. Project Prioritization is the process of determining the urgent need for specific infrastructure project(s) of an identified ARC based on parameters established at the field level by the PARCCOM/PCIT, and, at the national level by the PARC Executive Committee, through the PARC Secretariat. A final long list of project is prepared by the DAR-Project Development and Management Service (PDMS), based on field level project lists submitted by the DAR Provincial and Regional Offices. The projects are listed according to type, number and priority. ATEHDc

j. Project Validation refers to the subsequent processes involving the determination of the social, economic and technical viability of the project.

k. Realignment is the process of replacing an already funded/approved project with another one due to certain conditions prescribed under Section 1 (b) hereof.

l. Reprogramming refers to the process of reallocating unused funds for other purposes upon approval of the authorities concerned.

m. Right-of-Way is the legal right of passage over another person's property or landholding.

n. Road Construction involves the opening of a new farm-to-market road.

o. Road Rehabilitation refers to the restoration of a farm-to-market road to its condition as originally constructed or as subsequently improved when the road facility has so deteriorated that normal maintenance efforts are inadequate.

ARTICLE II

Coverage

SECTION 4. Coverage. — This Administrative Order shall cover all locally-funded CARP infrastructure projects, as enumerated under Section 2 (e) hereof, which are to be or being funded under the Agrarian Reform Fund (ARF) or under the General Appropriations Act (GAA) and to be or being implemented by the following:

a. Department of Public Works and Highways for farm-to-market roads, bridges and multi-purpose pavements;

b. Department of Agrarian Reform for farm-to-market roads, bridges, and multi-purpose pavements;

c. National Irrigation Administration (NIA) for communal irrigation projects and rehabilitation of existing communal irrigation systems;

d. LGUs which may be qualified to implement farm-to-market roads, bridges, and multi-purpose pavements in accordance with procedures set forth hereof; and

e. Other CIAs and/or government agencies which may be authorized by the PARC and/or the PARC Executive Committee to implement CARP infrastructure projects in the future.

ARTICLE III

Implementation Arrangements

SECTION 5. Organizational Set-up. — The organizational set-up for the implementation of infrastructure projects under CARP will consist of two levels, namely, the level at the PARC/PARC Executive Committee and the level at the CIAs (Figure 1). While the LGUs may be allowed to undertake rural road projects, the budget release to these LGUs and overall monitoring of these projects shall still be the responsibilities of DPWH and DAR.

The major functions of each entity as well as the interrelationship between and among these levels are as follows:

a. PARC/PARC Executive Committee

As the highest policy-making body for the implementation of the CARP, the PARC/PARC Executive Committee shall be responsible for the following:

a.1 Provide overall policy direction in the planning, programming, implementation and monitoring of all locally-funded CARP infrastructure projects. As such, the PARC/PARC Executive Committee shall review and, as appropriate, issue additional policies and procedures to update and/or plug the loopholes or gaps in the existing policy guidelines upon the recommendation of the PARC Technical Committee and the PARC Secretariat;

a.2 Review and approve the annual allocation of budget for each CIA which were allowed to implement CARP infrastructure projects upon the recommendation of the PARC Technical Committee and the PARC Secretariat:

a.3 Review, prioritize and endorse the list of infrastructure projects to the DBM by the Chairman off the PARC Executive Committee upon recommendation by the PARC Secretariat;

a.4 Monitor the implementation of CARP infrastructure projects which will include the physical and financial accomplishments of these projects through the reports submitted by the concerned CIAs, PARC Secretariat and the PARCCOMs; and

a.5 Closely coordinate with Congress to enhance collaboration and foster cooperation in the smooth implementation of the projects; and

a.6 Perform related functions which the PARC/PARC Executive Committee may deem necessary to ensure the successful implementation of CARP infrastructure projects.

b. CARP Implementing Agencies

On the other hand, the implementation of individual projects shall be the responsibility of the different CIAs such as the DPWH, NIA and DAR through their central, regional, provincial and/or district offices.

(b.1) CARP Central Project Management Offices of CIAs

Specifically, the Central Labor-Based/CARP Program Office (CLB/CARP PO) of DPWH and the CARP-Irrigation Component Project Management Office (CARP-IC PMO) of NIA shall be responsible in the overall implementation of their respective infrastructure projects from planning, coordination, conduct of feasibility studies, review and award of contracts, construction, financial control, monitoring, to the turn-over of these projects to the beneficiaries or LGUs. These activities shall be governed by the policies and operating procedures set forth under this Administrative Order as well as by related policies of the concerned CIA and future issuances which may be issued by the PARC/PARC Executive Committee. IEHScT

In the case of DAR, a Project Implementation Committee (PIC) will be formed to oversee the overall implementation of infrastructure projects. The PIC shall be chaired and co-chaired by the Undersecretaries for Support Services Office (SSO) and Finance, Management and Administration Office (FMAO), respectively, with members from PDMS, Finance and Management Service (FIMAS), Bureau of Land Development (BLD), and the PARC Secretariat.

(b.2) Regional Offices of CIAs

At the regional level, the respective regional offices of DPWH, DAR and NIA shall be responsible for the following:

(b.2.1) Provide technical support and supervision to their provincial/district offices, if appropriate, in the preparation of detailed engineering (D/E), feasibility study (FS) and POW;

(b.2.2) For the DPWH and DAR, review and act on the proposed MOA, if the approval of same is within their level of authority, with the concerned LGUs on the implementation of infrastructure projects;

(2.2.3) As appropriate, undertake the bidding and awarding of contracts if these acts are within the level their authority. Otherwise, the bidding and awarding of these contracts shall be undertaken at the central office of the concerned CIAs;

(b.2.4) Review and validate the financial and physical accomplishments submitted by their respective provincial/district offices on the status of project implementation and submit the same to their respective central offices;

(b.2.5) Act on the issues/complaints lodged by the stakeholders of the project to ensure smooth implementation of the same;

(b.2.6) For the DPWH, review and act on the recommendation of the District Engineer on whether or not the concerned LGUs will be allowed to undertake the project by administration:

(b.2.7) Review and act on the request for realignment of projects in coordination with other concerned CIA/s and DBM; and

(b.2.8) Perform related functions as may be assigned by their central offices or by the PARC/PARC Executive Committee.

(b.3) Provincial/District Offices of CIAs

At the provincial level, the provincial or district offices of the CIAs shall be tasked with the following: HDCTAc

(b.3.1) Participate in the identification and validation of projects in coordination with the concerned CIA/s, LGUs, and the beneficiaries;

(b.3.2) Lead in the preparation of preliminary D/E and/or D/E, FS and POW of CARP infrastructure projects in coordination with its regional offices and other concerned CIA/s;

(b.3.3) For the District Engineering Office, evaluate the capabilities of the LGUs based on the herein criteria and recommend to the Regional Director of DPWH the approval/disapproval of same;

(b.3.4) If the concerned LGUs are eligible to undertake the project, cause the preparation and signing of the MOA if the concerned provincial or district official is authorized to act on same. Otherwise, preparation of the said MOA shall be undertaken at the level of the approving authority either at the regional or central level of the concerned CIA;

(b.3.5) Undertake the bidding of projects and the awarding of contracts to the winning bidder if these acts are within the level of authority of the said provincial or district official. Otherwise, the bidding and awarding of said projects shall be undertaken at the level of the approving authority either at the regional or central office of the concerned CIA;

(b.3.6) Review and recommend the realignment of projects to the concerned PARCCOM and submit the results thereof to the Regional Directors of DAR and concerned CIA at the regional level;

(b.3.7) As appropriate, secure the necessary environmental clearance certificate (ECC), compensation for damages to crops and other requirements before construction works begin in coordination with other CIA/s, LGUs, and barangay officials;

(b.3.8) Take responsibility in the overall supervision, management, and monitoring of ongoing infrastructure projects;

(b.3.9) Submit periodic monitoring reports to their regional office and other end-users of the reports to include physical and financial accomplishments, issues/concerns affecting the project's implementation and measures undertaken or recommendation on how to resolve the same;

(b.3.10) Ensure the smooth turn over of completed projects to the beneficiaries or to the LGUs in accordance with the provisions of this Administrative Order; and

(b.3.11) Perform other related functions which may be assigned by their respective regional or central offices and/or by the PARC/PARC Executive Committee. cIEHAC

c. Local Government Units

c.1 Provide technical assistance to the concerned CIAs in the validation of proposed infrastructure projects;

c.2 Facilitate the resolution of issues affecting the ROW of the project in coordination with the concerned CIAs;

c.3 If qualified and allowed to implement the project, the concerned LGU shall ensure that the same is implemented in accordance with the approved POW and submit periodic monitoring reports on the physical and financial accomplishments of the project to the concerned CIA;

c.4 Ensure the maintenance of the project after its completion; and

c.5 Perform other responsibilities as may be specified in the MOA between the said LGU and concerned CIA.

ARTICLE IV

Operating Procedures

SECTION 6. Project Identification, Validation and Prioritization. — The activities and concerned agencies involved in project identification, validation and prioritization are as follows:

a. Project Identification

(a.1) At the municipal level, the responsibility of project identification is lodged with the agrarian reform beneficiaries (ARBs) as the major stakeholders of the program. It is the main responsibility, however, of the DAR Municipal Office (DARMO), in close coordination with the concerned CIA/s, to process the needs and priorities of the ARBs for infrastructure projects through the conduct of focused group discussions (FGDs) and/or consultations with concerned NGOs/POs, barangay officials, and other stakeholders of the program.

(a.2) The MARO shall also get inputs from existing plans such as the ARC Development Plans, local development plans, and sectoral plans (e.g., irrigation development plan) in the process of project identification.

b. Project Validation

(b.1) Project validation will be the primary responsibility of the DARMO, in close coordination with the project beneficiaries, LGUs, PARCCOM and concerned CIA/s, using the prescribed forms shown in Annexes A and A-1. The DAR Provincial CARP Coordinator, on the other hand, will assist the MARO in coordinating with the concerned CIAs and PARCCOM on the schedule of site validation, including other requisites thereof.

(b.2) Upon validation, the Municipal Agrarian Reform Officer (MARO), with assistance from DAR Provincial CARP Coordinator, shall ensure that the results of the validation contained in Annex A are signed by the representatives of the CIA, people's organization, LGU, and the DAR. Thereafter, the MARO shall endorse the project to the Provincial Agrarian Reform Officer (PARO) II for review and evaluation by the Beneficiaries Development and Coordination Division (BDCD) of the DAR Provincial Office (DARPO). If there are some missing information or data which need to be gathered and/or validated at the field level, the same shall be returned to the MARO by the PARO II with an instruction to comply immediately with the said data requirement/s. If in order, the project shall be included in the long list of validated projects for prioritization.

(b.3) The DARPO-BDCD shall maintain a data base on the list of validated priority projects, including the validation reports thereof, for its reference and annual updating. THESAD

c. Project Prioritization

(c.1) Project prioritization shall be a reiterative process such that projects which have been prioritized for a given year but remain unfunded will be again re-prioritized, together with the new validated ones, taking into consideration the recent accomplishments in land tenure improvement, level or organization of the beneficiaries, among others.

(c.2) At the provincial level, the responsibility of reviewing and prioritizing projects shall be the lodged to the PARO II, through the BDCD, in close coordination with concerned CIAs, using the results of the validation (cf. Annexes A and A-1) as important inputs in coming up with a list of priority projects. The said list will, then, be the subject of multi-sectoral deliberation by the PARCCOM to screen the projects and come up with its recommendation on the list of priority projects to be endorsed, through a Resolution, to the DAR Regional Office (DARRO). The validation criteria used in Annexes A and A-1 and the priorities set forth in the local and sectoral development plans by the concerned CIA can be used as guides in the PARCCOM's deliberation.

The PARCCOM Resolution shall, then, be endorsed by the PARO II to the DAR Regional Director, together with the original copies of the validation reports (Annexes A and A-1).

(c.3) At the DARRO, the Regional Director, through the Support Services Division (SSD), shall review the projects as to the completeness of the documents and consistency with the existing regional development plans and ARC Development Plans in coordination with concerned CIA/s in the region. After the review, the list of validated priority projects, including the original validation reports, shall be endorsed by the Regional Director to the DAR Central Office (DARCO-PDMS).

The DARRO-SSD shall maintain a data base of the list of validated projects, including the validation reports, endorsed by the different DARPOs for its future reference and updating.

(c.4) At the DARCO, the PDMS shall be mainly responsible in consolidating and updating the long list of validated projects generated from the nationwide endorsements of projects from the different DARRO's in coordination with concerned CIA/s.

The PDMS shall also maintain a data base of validated list of projects, including the validation reports, for its future reference and updating.

(c.5) At the level of the PARC and PARC Executive Committee, the PARC Secretariat shall be responsible in prioritizing the projects provided by the DAR-PDMS from its long list of validated projects to come up with a short list of projects based on the approved budget ceiling for each agency. In prioritizing these projects, the PARC Secretariat shall be guided by the development agenda of the present administration, the medium-term development plan and its accompanying medium-term public investment programs, ARC development plans, and related sectoral investment programs of the concerned CIAs.

The said activity will be undertaken in close coordination with DAR-PDMS and concerned CIA/s and, as appropriate, members of Congress and concerned local government officials. The short list of projects shall also be in conformity with the pertinent provisions of the current General Appropriations Act (GAA).

SECTION 7. Preparation and Endorsement of the Work and Financial Plan. — The preparation of Work and Financial Plans (WFPs) by the concerned CIAs and their endorsement to the DBM shall be guided by the following: HAISEa

a. Upon the passage and enactment of the GAA, the list of validated projects (or short list) prioritized by the PARC Secretariat shall, then, be the basis of the concerned CIAs to prepare their respective WFPs for the current year and submit the same to the PARC Secretariat. In the preparation of the WFPs, the concerned CIAs shall include only those projects which are free from ROW problem and, as appropriate, those which had undergone preliminary and/or detailed engineering or feasibility studies as required under Section 1 (a.4) hereof.

b. The WFPs, once reviewed by the PARC Secretariat and approved by the DAR Secretary, shall be endorsed by the latter to the DBM in his/her capacity as Chairman of the PARC Executive Committee.

c. On the basis of the DBM's review of the CIAs WFPs, the former will now issue the appropriate SARO to the concerned CIA, copy furnished the PARC Secretariat. All PARCCOMs shall, then, be furnished with all the SAROs by the PARC Secretariat which will be used for monitoring purposes by the concerned PARCCOM.

SECTION 8. Project Realignment. — As shown in Figure 2, request for realignment of infrastructure projects shall be governed by the following procedures:

a. Submission of Request for Realignment

Request for realignment of projects shall be in accordance with the policies set forth under Section 1 (b) hereof. The concerned provincial/district office of the concerned CIA shall submit the following documents: HaAIES

(a.1) Certification of unobligated allotments from the chief accountant of the province or district office of the concerned CIA;

(a.2) Copy of the DBM's letter approving the release of the SARO; and

(a.3) Copy of the SARO itself.

b. Evaluation of the Request for Realignment

(b.1) The request for realignment shall be reviewed by the concerned DARPO and CIA based on the policies set forth under Section 1 (b) hereof as well on the completeness of the submitted documents. The results of the review will, then, be presented to the PARCCOM for its deliberation, appropriate recommendation and endorsement to the Regional Directors of DAR and concerned CIA.

(b.2) The PARCCOM's endorsement of the request for realignment should be covered with a Resolution passed by the majority of its members.

c. Approval of Realignment

(c.1) Within 14 days upon receipt of complete documents, the Regional Directors or DAR and the concerned regional office of the CIA shall jointly endorse the request for realignment to the Regional Director of the DBM for projects costing P5.00 million and below for his/her appropriate action. If approved, the DBM Regional Director shall issue the necessary fund authorization, copy furnished the central office of the concerned CIA and the PARC Secretariat.

(c.2) For projects costing more than P5.00 million each, the Regional Direct of the concerned CIA shall endorse the same to his/her Secretary or to the authorized official of that concerned CIA, copy furnished the Regional Director of DAR. In case of DAR projects, its Regional Director shall endorse the said projects to his/her Secretary. In turn, the Secretary of the concerned CIA or his/her authorized official shall endorse the said request to the PARC Secretariat for the latter's review and endorsement to the DBM central office.

(c.3) The DBM central or regional office shall issue the corresponding letter of authority to realign projects, copy furnished the PARC Secretariat and the central office of the concerned CIA.

SECTION 9. Project Implementation. — The implementation of CARP infrastructure projects shall be governed by the following:

a. Preparation of Feasibility Study

For construction of new CIPs, the preparation of feasibility study (FS) should be required to determine the overall soundness of a project from the technical, financial and economic, social, and organizational viewpoints. The results of the FS shall determine, to a large extent, the decision on whether or not to proceed with the implementation of the project.

b. Preparation of Detailed Engineering and Program of Work

The preparation of D/E and POW shall be the main responsibility of the concerned implementing agency (e.g., DPWH, NIA, and DAR) at its regional, provincial and/or district office following certain standards operating procedures of the said agency. When applicable, the D/E and POW will be submitted to the central office of the concerned agency for its review and approval.

For infrastructure projects which will be implemented through the LGUs, the concerned LGUs may be allowed to prepare the POW but the same should still be subject to the approval by the PARO II of DAR or by the District Engineer of the DPWH.

c. Bidding

(c.1) In case the project will be implemented through contract, bidding shall undertaken by the concerned agency in accordance with the existing policies and procedures on the matter. The provincial, regional or central office of the concerned CIA may utilize its existing Pre-Evaluation, Bidding and Award Committee (PBAC) or create a new one, when appropriate, for the said bidding. SIaHDA

(c.2) The concerned officials of the CIAs at the central, regional or provincial/district office shall also be authorized to bid and award contracts in accordance with their respective policies on the delegation of authority to approve the same.

(c.3) To promote transparency in the bidding, the PARCCOM Chairperson or his/her duly authorized representative shall be invited by the concerned agency to act as an observer during the bidding process.

d. Construction of the Project

The construction of the project shall be the responsibility of the concerned CIA at its regional, provincial or district office whether it is undertaken through contract or through the LGUs as these CIAs' offices shall be directly responsible in the overall management, supervision and monitoring and evaluation of all construction works.

On the other hand, the PARO II, through the BDCD, shall be responsible in the overall implementation of infrastructure projects under DAR.

The concerned CIA and/or the LGU, shall also put up standard billboards so that the public will be properly informed about the project and, thus, help promote transparency. The dimension and contents of the billboard are shown in Annex B.

e. Project Monitoring and Evaluation

(e.1) Elements

For an effective monitoring and evaluation of the different project activities, the following elements shall be the foci of the said monitoring:

(e.1.1) The physical accomplishment for each project category will be undertaken which will involve the measurement of physical progress of a project against plans and work schedules on a quarterly basis.

(e.1.2) The financial accomplishments will involve the measurement of financial progress of a project against projected cash flow and budget allocations on a quarterly basis.

(e.1.3) The results or the data produced by the aforesaid monitoring shall, then, be used to evaluate the project in terms of:

(e.1.3.1) Assisting the project managers in achieving the project's objectives and, where needed, the identification of modifications in project design; or aCTcDH

(e.1.3.2) Identifying both potential internal and external problems.

In cases wherein the results of monitoring activities will not suffice to evaluate the project, the concerned CIAs may conduct special studies and surveys to achieve the necessary insights.

(e.2) Organizational Responsibility

The monitoring and evaluation of ongoing projects shall be the responsibility of different entities as delineated below:

(e.2.1) Provincial/District Level

The heads of the provincial/district offices of the DPWH and NIA shall be primary responsible in monitoring and evaluating the progress of project implementation on a quarterly basis and submit the results of their monitoring activities to their respective regional offices, copy furnished the DARPO and PARCCOM. These reports, then, shall serve as the bases by the DARPO and PARCCOM in monitoring the projects of other CIAs.

The existing monitoring forms being used by the concerned CIAs in tracking down the physical and financial accomplishments for each project category shall be maintained.

In the case of DAR, all monitoring reports at the provincial level shall be consolidated by the DARPO, through its BDCD, and submit the same to the Support Services Division of the DARRO.

As part of the PARCCOM's regular function, it shall also conduct monitoring and evaluation of projects when it deemed that it has to validate on the field the reports submitted by the concerned CIA or when it decided to verify the issues and complaints it received from the stakeholders of the project. This does not precluded, however, the PARCCOM from monitoring foreign-assisted projects under CARP as it has also been mandated to monitor same per existing policy on the matter.

The outcome of the PARCCOM's monitoring activities shall, then, be deliberated in its meeting and issues which remain unresolved will be endorsed to the Regional Director of the concerned agency for his/her appropriate action. If still remain unresolved, the said issues can be directly submitted to the PARC Secretariat, copy furnished the provincial/district/regional office of the concerned CIA.

(e.2.2) Regional Level

The Regional Directors of DPWH and NIA shall be responsible in reviewing, validating and consolidating the monitoring reports submitted by their provincial/district offices. Thereafter, the same shall be endorsed by the concerned Regional Director to their respective central offices, copy furnished the DARRO. HDacIT

In the case of DAR, the Regional Director, through the SSD, shall be responsible in reviewing, validating and consolidating the monitoring reports submitted by the DARPOs. Thereafter, the Regional Director shall endorse these reports to the DARCO-PDMS

 

(e.2.3) Central Level

At the central level, the heads of the CLB/CARP Program Office and the NIA-IC PMO, will be responsible in reviewing, validating and consolidating all monitoring reports submitted by their respective regional offices. In turn, these consolidated reports shall be submitted to the PARC Secretariat and DARCO-PDMS. It is, thus, assumed that all monitoring reports submitted by the concerned CIAs to the PARC Secretariat and DARCO-PDMS have been validated at the field level.

In the case of DAR, the DARCO-PDMS shall be responsible in reviewing and consolidating all the reports submitted by the different CIAs and the DARROs.

The DARCO-PDMS or the PARC Secretariat may also conduct its own field validation based on the review of the reports submitted by the PARCCOM and the CIAs or based on the reports of complaints/issues it received from the stakeholders of the project. AIECSD

SECTION 10. Project Completion and Maintenance. — Upon project completion, the project shall be turned over by the concerned implementing agency either to the ARBs/cooperatives/irrigators association, or to the local officials (e.g., barangay or municipal). In turning over the project, a Certificate of Project Completion and Acceptance (Annex C) will be jointly signed by the representatives of the cooperative or association of the beneficiaries, barangay, and municipality as attested by the PARO II of DAR, provincial/district head of the concerned CIA and the Chairperson of the PARCCOM or his/her authorized representative.

ARTICLE V

Capability Evaluation of Local Government Units

SECTION 11. Determining the Capability of the Local Government Units. — In determining the capability of the LGUs to undertake CARP infrastructure projects, the process to be observed shall be as follows.

a. The concerned District Engineer of the DPWH shall be responsible in evaluating the demonstrated capability of the LGU to implement the project by administration, including those projects to be implemented by DAR, using the criteria given in Annex D.

b. For projects to be implemented by DAR, the PARO II shall request the concerned District Engineer to evaluate the capability of the LGU to undertake infrastructure projects. The results of the said evaluation shall be submitted by the District Engineer to the concerned Regional Director of DPWH for his/her approval/disapproval.

SECTION 12. Preparation of Memorandum of Agreement. — The preparation of the MOA between the LGU and the concerned CIA shall be undertaken in accordance with the following:

a. Once the concerned LGU has been qualified in accordance with the criteria set forth hereof, a MOA between DPWH and the LGU or between DAR and the LGU shall be prepared in accordance with the policies set forth in this Administrative Order. The MOA shall include provisions on the following:

(a.1) Project description;

(a.2) Roles and responsibilities of the contracting parties;

(a.3) Financial covenants;

(a.4) Monitoring and evaluation of the project;

(a.5) Operation and maintenance of the project; and

(a.6) Other provisions which may be agreed upon by the two parties.

b. The concerned officials of DPWH and DAR at the central, regional or provincial/district offices shall be authorized to enter into and approve the said MOA in accordance with their respective policies on the delegation of authority on the matter. AEDCHc

c. The preparation of the abovementioned MOA shall be undertaken at the level of the approving authority of the concerned CIA.

ARTICLE VI

Final Provisions

SECTION 13. Repealing Clause. — This Administrative Order supersedes PARC ExCom AO No. 1, Series of 1996, and/or amends accordingly all other rules, regulations and issuances inconsistent hereof.

SECTION 14. Separability Clause. — In the event that any provision of this Administrative Order is challenged and held to be unconstitutional by a competent court, none of the other provisions thereof shall be affected and the same shall remain in full force and effect.

SECTION 15. Effectivity. — This Administrative Order shall take effect ten (10) days after its publication in two (2) newspapers of general circulation pursuant to Section 49 of RA No. 6657. AcCTaD

25 October 2007, Diliman, Quezon City.

 

(SGD.) NASSER C. PANGANDAMANSecretary, Department of Agrarian Reform

Published in The Philippine Star on November 9, 2007.