Standard Conditions for Government Contracts, etc. Involving Exploration, etc. of Natural Resources

June 11, 1978

PRESIDENTIAL DECREE NO. 1585

PRESCRIBING CERTAIN STANDARD CONDITIONS FOR GOVERNMENT CONTRACTS, CONCESSIONS, LICENSES, PERMITS, LEASES OR SIMILAR PRIVILEGES INVOLVING THE EXPLORATION, DEVELOPMENT, EXPLOITATION OR UTILIZATION OF NATURAL RESOURCES

WHEREAS, there is a need to ensure that the development, exploration and utilization of the natural resources of the country shall contribute to its overall development and that the benefits thereof shall accrue to and enhance the general welfare of the Filipino people; cdt

WHEREAS, in order to attain the above objective, it is necessary that all contracts entered into, concessions, licenses, permits, leases or similar privileges granted or issued by any government agency or instrumentality for the exploration, development, exploitation, or utilization of any of the natural resources of the country should contain provisions that shall guarantee close administrative supervision and control over their implementation.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines by virtue of the powers vested in me by the Constitution, do hereby order and decree the following:

SECTION 1. All contracts entered into and all concessions, licenses, permits, leases and similar privileges granted or issued by any agency or instrumentality of the government involving the exploration, development, exploitation or utilization of any of the natural resources of the country shall contain the following conditions as integral parts thereof; acd

a. that when the national interest so requires, the President of the Philippines may review, amend, modify, revise, rescind or revoke any such contract, concession, license, permit lease or similar privilege or any condition or provision therein;

b. that, upon the recommendation of the government agency or instrumentality concerned with the administration of any such contract, concession, license, permit, lease or similar privilege, the President may, pending the conduct of appropriate hearing, summarily suspend and order the cessation of all activities and operations under the contract, concession, license, permit, lease or similar privilege for violation of any of the conditions or provisions therein or any condition prescribed in duly issued rules and regulations of the administering government agency or instrumentality.

SECTION 2. All laws, decrees, orders, administrative issuances, rules and regulations inconsistent herewith are hereby repealed or accordingly modified.

SECTION 3. This Decree shall take effect upon its approval.

DONE in the City of Manila, this 11th day of June, in the year of Our Lord, Nineteen Hundred and Seventy-Eight.

Published in the Official Gazette, Vol. 74 No. 41, 8094-193 Supp., on October 9, 1978.

Published in the Official Gazette, Vol. 74 No. 44, 8651-111 Supp., on October 30, 1978.