TO:	The Minister of Public Highways The Minister of Local Government & Community Development The Minister of National Economics & Dev. Authority The Chief, Presidential Management Staff The Chairman, Commission on Audit The Provincial Governor And ALL Others Concerned

In view of the near completion of the construction of the main arteries of transportation, the major thrust of the infrastructure program of the government has now shifted to the construction of barangay roads and bridges.

In order therefore, to facilitate and expedite construction of barangay roads and bridges for the benefit and welfare of the farmers and people in the rural areas, the present GUIDELINES for the construction of barangay roads and bridges is hereby revised to include MONITORING AND SUPERVISING TEAMS to be composed as follows:

	(a)	National Level -
		Representative of the Presidential Mgt. Staff - Chairman
		Assistant Minister MLGCD - Member
		Director, Bureau of Barangay Roads, MFH - Member
	(b)	Regional Level -
		MPH Regional Director - Chairman
		NEDA Regional Director - Member
		MLGCD Regional Director - Member
		COA Regional Director - Member
	(c)	Provincial/District/City Levels -
		Prov. Governor/City Mayor or his Representative who is a member of the Sangguniang Panlalawigan/Panglunsod - Chairman
		The Highway District Engineer - Member
		The Highway Auditor

These teams and the members thereof shall perform the functions and duties enumerated in the approved REVISED GUIDELINES for the construction of barangay roads and bridges hereto attached.

DONE in the City of Manila, this 26th day of October, in the Year of Our Lord, Nineteen Hundred and Seventy-Eight.

1. The present set-up or work flow on Barangay Roads will continue in accordance with the guidelines implementing PD 702 as follows.
   
   

   (a)	Barangay Captain identifies possible Barangay Roads projects. This is done in coordination with the Highway District/City Engineer.
   (b)	Barangay Captain brings project identified to Barangay Council for a resolution.
   (c)	Barangay Council approves project identified in Barangay Council Resolution.
   (d)	Barangay Captain submits identified project to the ABC President of the Paiiglungsod/Pambayang Katipunan ng mga Barangay.
   (e)	Municipal ABC President prepares a list of proposals submitted in the order of priorities. This is done in consultation with the city/Municipal mayor, CDG/MDG and District/City Eng'r.
   (f)	Municipal ABC President forwards list of proposals to the President of the Panlalawigang Katipunan ng mga Barangay.
   (g)	The Municipal Selection Committee determines the top and secondary priority projects.
   (h)	The Provincial Selection Committee forwards list of projects to the national Selection Committee.
   (i)	The National Selection Committee reviews list of projects submitted and selects and approves priority projects.
   (j)	After projects has been finally selected and determined, the District/City Engineer, upon advise from the Minister of Public Highways, thru the Director of the Bureau of Barangay Roads, shall prepare the corresponding program of work and submit the same, together with its cost estimates, to the Minister of local Government and Community Development thru the Minister of Public Highways.
   (k)	When the funds aro made available to the Ministry the corresponding checks are prepared and released to the respective Municipal or City Treasurers thru the Regional Directors and Highway District/City Engineers concerned,
   (l)	The Barangay Council in coordination with the Highway District Engineer/City Engineer undertakes the work within the Barangay Area in accordance with the Program of Work duly approved by the respective Highway/City Engineer.
   (m)	Disbursements are made by the Barangay Captain and approved by the HDE/CE before payment by the Municipal Treasurer.

The Selection Committees are:

1. Municipal Selection Committee
   
   a. Municipal/City Mayor
   
   b. City Engineer
   
   c. Muno Dev./City Dev. Officer
   
   d. Municipal ABC President
   
   
2. Provincial Selection Committee
   
   a. Provincial Governor
   
   b. Highway District/City Engineer
   
   C. Provincial Development Officer
   
   d. Provincial ABC President
   
   
3. National Selection Committee
   
   a. Minister M P H
   
   b. Minister M L G C D
   
   c. President, Pambansang Katipunan ng mga Barangay (PKB)
   
   d. N E D A Minister sits with the Committee in Consultative Capacity.

2. INNOVATION - In addition to the above procedure (as practiced presently) the following innovation is introduced to effect a sytem that would enhance better performance by the Barongays and generate more acconplishnent in a shorter time:
   
   
   1. An overall program is made corresponding to the total fund appropriated and made available for one Calendar year.

      (a)	The program shall be prioritized into four (4) quarters representing 25% of the total.
      (b)	An initial sum equivalent to 25% of the overall program shall be released for the 1st quarter to allow work to commence immediately.
      (c)	After the initial release of 25%, succeeding quarterly releases shall be made available on a "replenishment" basis, the amount of which shall be evaluated, anddctermined by the monitoring and supervising teams through the issuance of an accomplishment certificate.

   2. The Accomplishment Certificate shall contain the following information:
      

      (a)	Name, extent and location of project
      (b)	Cost and quantities accomplished
      (c)	Quality of Work and Time duration
      (d)	Amount recommended for replenishment
      (e)	Other pertinent data

   3. 3. The monitoring and supervising teams shall be:
      

      (a)	National Level - shall meet at least once every quarter to assess and evaluate the certificates of accomplishment iscaled by the Regional teams and recommend to the President thru the Minister of Public Highways the amount to be released for the succeeding quarter.
      	It shall be composed of:
      Representative of the Presidential Management Staff - Chairman
      Assistant Minister MLGCD - Member
      Director Bureau of Barangay Roads MPH - Member
      (b)	Regional Level - shall meet at least once a month to undertake site investigation/assessment and/or check and review the progress reports as submitted by the Provincial teams.
      	It shall be composed of:
      	MPH Regional Director - Chairnan
      	NEDA Regional Director - Member
      	MLGCD Regional Director - Member
      	COA Regional Director - Member
      (c)	Provincial/District/City Level - shall meet as often as necessary to supervise the project and appraise the progress for reporting to the Regional Team. The Provincial/District/City Team may establish priorities in accordance with the list submitted by the Selection Committee. Furthermore, it may authorize/approve realignments or changes or revisions provided it is within the same barangay, and that the Regional Team shall be duly informed.
      	It shall be composed of:
      Governor/City Mayor or his Representative who is a member of the Sangguniang Panlalawigan/Panlunsod-Chairman
      	The Highway District Engineer -Member
      	Representative of the MLGCD - Member
      	The Highway Auditor - Member

      
      
      
   4. Fund Releases - Accomplishment and/or perfromance will be the basis for succeeding releases of funds.  The National Team shall make its recommendation to the President through the Minister of Public Highways as to the amount to be released for each following quarter. Such release will be implemented in accordance with the overall program.
      
      In the event that the programmed targets for the calendar year is not met, the uncompleted portion will spill through the next year's program.  This of course will apply only to Provinces that fail to achieve their programmed targets.
      
      
   5. Barangay Equipment - when used exclusively for Bsrangay Projects shall be free of rental.  Its operational cost (fuel, oils, operator's wages, etc) shall be on the direct account of the Project engaged.  It will be the duty of the Highway District/City Engineer to schedule the use of the equipment for the different barangay projects in his area.  In the management and control by the Highway District/City Engineer of the Barangay Equipment, he will be authorized to retain 5% of each project programmed to constitute a revolving; fund for the replacement of tires, batteries, spare parts for repairs, servicing, etc.  The amount to be retained shall be used exclusively for the purpose of maintaining the Barangay Equipment.  Expenditures on this fund shall be approved by the HDE/CE and noted by the Chairman of the Provincial Team.
      
      

All expenditures on the funds retained shall be reported to the Regional Team which in turn forwards a consolidated report of expenditure to the national Team.

RATIONALE:

The theory of replenishing the initial allotment of funds, after having expended it for the purpose it is intended, will provide the necessary incentive on the part of the Barangays to perform efficiently and effectively.  This is so, because they are assured of subsequent fund replenishments as soon as their projects have progressed satisfactorily.  (In this event, it is absolutely necessary that the funds are released promptly whenever the certificate of accomplishment are submitted and verified to prove to the Barangays that the Central Office will also meet their part of the scheme.)

			(Sgd.) BALTAZAR AQUINO
			Minister
	APPROVED:
	(Sgd.) FERDINAND E. MARCOS
	President of the Philippines