TO:     Communication   Department of Public Highways
Local Water Utilities Administration
National Electrification Administration
Department of Local Government and Community     Development   Kabataang Barangay, Ilocos Norte
Department of Education and Culture
Recognizing that the depressed socio-economic conditions of the Paoay Lake area and the need to uplift the resident families thereat and prevent disruption of their life-style and recognizing further the need to enhance the environmental potential of the area as a National Park and an identified tourist attraction, prevent pollution of the Paoay Lake by building upon existing improvements and resource development, it is directed that an upgrading program of sites and services including shelter be undertaken in the implementation of R.A. 5631 dated 21 June 1967 with the following objectives:

1. To uplift the living conditions in the area through a comprehensive upgrading of physical infrastructure and community services and an integrated community development program.
2. To develop the potential of Paoay Lake and its vicinity through the development of human and natural resources in the area and rationalization of land use to optimize its productivity.

The upgrading and park development program shall be initially planned and undertaken for the vicinity of Barrio Suba, along the following concepts:

1. Minimum displacement of families and relocation of structures shall take place only to consolidate residential areas into ecological communities within the Project area.
2. The development and utilization of the resources of Paoay Lake shall be a cooperative venture by resident families under government supervision.
3. The Kabataang Barangay must be given a primary role in the development of Paoay Lake and
4. National and local government agencies should be involved in  the implementation  of the project.
5. All other families within the 1-km. extremities of Paoay Lake but not in the initial development area in Barrio Suba shall remain in place until similar developments for their respective areas can be planned and implemented in the future.
6. There shall be no further increase in structures for residential  use.  Structures for commercial purpose as may be .required to revise the requirements of the residential area and the tourist trade may be authorized.

In accordance with the above guidelines:

1. The National Housing Authority shall designate within Barrio Suba the project area for priority development incorporating therein  the vicinity around the Vigan House area of Barrio Suba and shall design for this area, a master plan for development, for the  approval of the President, specifying therein residential, commercial, agricultural and other land uses.
2. Within this project area the National Housing Authority shall  undertake the detailed planning of the residential areas and shall coordinate implementation of the upgrading program  for such areas including existing dwelling units and facilities therein. The Authority is authorized to advance funds to cooperating agencies to implement the upgrading program.
3. Upgrading within these residential areas shall be undertaken by the National Housing Authority as lead agency, assisted by appropriate national agencies as follows:
   1. The Department of Public Works, Transportation and Communications through the Bureau of Public Works, shall provide funds and construct or cause the construction of vertical infrastructures designed for community use such as schools, barangay halls and multi-purpose centers.
   2. The Department of Public Highways through its appropriate bureaus, shall provide funds and construct or cause the construction of circulation and other major roads in the area;
   3. The Local Water Utilities Administration shall provide funds and cause the provision of, water facilities to the communities within the area.
   4. The National Electrification Administration shall provide funds and cause the provision of electricity in the area.
   5. The Metropolitan Waterworks and Sewerage System shall determine the feasibility of such systems as bio-gas generation, water conservation and recycling in the project area and shall provide funds and undertake development  of the same  if they are found viable.
4. The Department of Local Governments and Community Development through the Bureau of Cooperative Development, shall organize among the residents of the Project area, with priority in Barrio Suba, a cooperative to oversee, regulate and administer the utilization and development of resources in Paoay Lake and its vicinity.
5. The Kabataang  Barangay under the supervision of the DLGCD shall undergo training and eventually take over the management of cooperatives to be organized in the area.  Additionally, the Kabataang Barangay shall participate in the planning and the development of areas designated for parks, recreational and tourist   use.  In the latter activity, it shall be assisted by the Bureau of Parks and Wildlife.
6. The Department of Education and Culture shall fund and provide the teaching staff, educational materials and equipment for the schools that may be constructed in the area.
7. In additional to the funds to be provided by the cooperating   agencies from their budgets, there is hereby allocated from  the Special Activities Funds of the Office of the President an initial of P2 Million to be utilized for residential upgrading.
8. The Budget Commissioner is hereby directed to release this amount as Trust Funds, separate from, and in addition to current appropriations or capitalization, to the National Housing Authority, to enable it to fulfill the responsibilities under this Letter of Instructions.
9. There is hereby created the Bo. Suba, Paoay Lake, Inter-agency  Coordinating Committee with the Governor of Ilocos Norte as Chairman,   the General Manager of the NHA and the Mayor of Paoay as
   
   Vice Chairmen, and representatives from agencies participating in the Bo. Suba initial development, as members.  This Committee shall oversee the development of the project, exercise general supervision, and initiate as well as maintain rational coordination among involved agencies.

All directives, letter of instructions, or parts thereof, including LOI 494 which considers the development of resettlement areas and or are inconsistent with this Letter of Instructions are hereby suspended indefinitely.

Done in the City of Manila, this 5th day of April, in the Year of Our Lord, nineteen hundred and seventy-seven.