WHEREAS, it is a policy of the Government to promote the integrated development of agriculture, natural resources, infrastructure and social services in underdeveloped regions to solidify the economic and social structure of our society;

WHEREAS, Presidential Decree No. 805 reconstituted the Cabinet Coordinating Committee on Integrated Rural Development Projects constituted under Letter of Instructions No. 99;

WHEREAS, an integrated rural development program has been adopted for the Bicol River Basin;

WHEREAS, the success of the program requires that the management and planning of the basin area be comprehensive, decentralized, and framed within regional and national plans;

WHEREAS, there is an urgent need to enhance the organizational framework and systems capability for planning and monitoring of this integrated multi-project area development program:

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

SECTION 1. Declaration of Policy. The Bicol River Basin Development Program, initiated pursuant to Executive Order No. 412 dated May 17, 1973, hereinafter referred to as the Program, is hereby declared an integrated area development program of the national government under the supervision and direction of the Cabinet Coordinating Committee on Integrated Rural Development Projects of the National Economic and Development Authority and the following policies are adopted for the effective implementation thereof: (a) to integrate national and local government programs and projects within its jurisdiction; and (b) to decentralize the planning and implementation of rural development projects.

SEC. 2. Cabinet Committee Coordinator for the Program. The Secretary of Public Works, Transportation and Communications shall be the Cabinet Committee Coordinator for the Program and shall act for the Chairman of the Cabinet Committee in all administrative matters, in accordance with the broad policies and guidelines established by the Cabinet Committee. As Cabinet Committee Coordinator, he shall have the following powers and functions:

1. Oversee the coordination of the planning and implementation of the Program;
2. Review the Program's consolidated plans, budgets and work programs and recommend approval by the Cabinet Committee:
3. Arrange and or negotiate with local and foreign financial institutions, subject to approval by the Cabinet Committee for the funding of rural development projects in the Basin:
4. Approve requests of the implementing departments and agencies for budget releases for projects in accordance with the consolidated plans, budget and work programs approved by the Cabinet Committee; Provided, That such approval, shall be subject to the availability of funds in accordance with the existing budgetary policy, laws, rules and regulations which shall be secured from the President.
5. Appoint the Program Director and heads of major organizational subdivisions of the Program Office;
6. Bring to the attention of the Cabinet Committee matters that require its urgent consideration;
7. Call upon any department, bureau, office, instrumentality or any political subdivision of the Government for such assistance that may be needed in achieving the objectives of the Program; and
8. Exercise such other related powers as may be delegated by the Cabinet Committee.

SEC. 3. Creation and Domicile of the Bicol River Basin Development Program Office. There is hereby created a Bicol River Basin Development Program Office, hereinafter referred to as the Program Office, which shall be under the supervision of the Cabinet Committee, through the Cabinet Committee Coordinator, for the purpose of coordinating the planning and implementation of the projects by the implementing departments and agencies at the national and provincial levels. The Program Office shall have its principal office in Camarines Sur. It shall also have a Manila Liaison Office for the purpose of facilitating supportive actions at the national level and such sub-offices as may be necessary in any municipality or city within the Program area.

Unless otherwise decreed, the jurisdiction of the Program Office shall encompass the Bicol River Basin area covering the municipalities of Del Gallego, Ragay, Lupi, Sipocot, Libmanan, Cabusao, Pasacao, Pamplona, San Fernando, Milaor, Minalabac, Gainza, Camaligan, Canaman, Magaro, Bombon, Calabanga, Tinambac, Goa, San Jose, Lagonoy, Sangay, Tigaon, Ocampo, Pili, Bula, Baao, Buhi, Nabua, Balatan, Bato, and the cities of Naga and Iriga in the province of Camarines Sur, and the municipalities of Libon, Polangui, Oas, Ligao, Pio Duran, Guinobatan, Tiwi, Malinao, Tabaco, Camalig, Daraga, and the City of Legaspi in the province of Albay, and such other areas as the Cabinet Committee may hereinafter decide to incorporate.

SEC. 4. Powers and Functions of the Program Office. The Program Office shall have the following powers, duties and functions:

1. Serve as a coordinating center for inter-agency planning and management of Bicol River Basin projects;
2. Identify rural development projects in the Bicol River Basin for inclusion in the integrated rural development program as authorized by the Cabinet Committee;
3. Prepare feasibility studies for identified projects for the Bicol River Basin as authorized by the Cabinet Committee;
4. Monitor and evaluate the progress and effects of project implementation in the Bicol River Basin;
5. Maintain a continuous feedback system with national agencies involved in Bicol River Basin projects;
6. Promote and encourage private enterprises and government agencies and instrumentalities to plan, develop and implement projects necessary or conductive to the accelerated development of the Bicol River Basin area;
7. Apply for, receive and accept grants and donations of funds, equipment, materials and service needed by the Program from sources within and outside the Philippines; Provided, That funds received herein shall be exempt from the provisions of Presidential Decree No. 711;
8. Call on the appropriate department, bureau, office, agency or other government instrumentality for assistance in the discharge of its duties; and
9. Perform such other related functions as may be necessary to attain the objectives of this Decree.

SEC. 5. Appointment, Tenure Of Office, Qualifications and Compensation of the Program Director. The Program Office shall be headed by a Program Director who shall be appointed by the Cabinet Committee Coordinator.

The appointee to the position of Program Director shall possess the following qualifications: (a) a natural-born citizen of the Philippines; (b) at least thirty (30) years of age, and (c) of proven record of executive competence in the field of public administration and/or infrastructure projects and/or in the management of agricultural, industrial or commercial enterprises.

The Program Director shall receive an annual compensation to be fixed by the Cabinet Committee but not exceeding P48,000 per annum and such allowances received by other officials of comparable rank.

SEC. 6. Powers and Functions of the Program Director. The Program Director shall exercise the following powers and functions:

1. Execute and administer the policies and decisions of the Cabinet Committee;
2. Directly coordinate the activities of all implementing departments and agencies in the planning and implementation of the projects;
3. Submit periodic financial and work accomplishment reports relating to project implementation to the Cabinet Committee, the Budget Commission and other Agencies concerned through the Cabinet Committee Coordinator;
4. Consolidate, for the approval of the Cabinet Committee Coordinator, requests for budget releases of projects of the implementing departments and agencies in accordance with consolidated plans, budgets and work programs approved by the Cabinet Committee;
5. Collect and consolidate all project accounts under the Program maintained by the implementing departments and agencies;
6. Organize and manage the Program Office and adopt administrative rules and procedures for its internal management;
7. Call upon any department, bureau, office, agency, instrumentality or any political subdivision of the Government to assist in the planning and implementation of the Program;
8. Enter into contracts with private or public entities in connection with the functions of the Program Office, subject to the approval of the Cabinet Committee Coordinator; and
9. Perform such other functions as may be assigned by the Cabinet Committee Coordinator.

SEC. 7. Staff Appointments. In accordance with the staffing pattern to be approved by the President, the Program Director shall appoint the other personnel of the Program Office and define their duties and responsibilities: Provided, That all technical and professional positions shall be exempt from the rules and regulations on wage and position classification and shall be provided with a salary rate to be determined in accordance with the possessed skills, experiences, educational attainment and the degree of specialization by the proper authorities concerned. In the case of personnel who are absorbed in the Bicol River Basin Development Program Office created by virtue of this Decree, they shall be provided a salary rate not lower than the salary including other emoluments they are actually receiving: Provided, further, That the Program Office may employ personnel on part-time basis, any provision of law to the contrary notwithstanding.

SEC. 8. Creation, Composition and Functions of the Program Coordination Committee. For the purpose of providing operating policies and guidelines, for the day-to-day operations of the Program Office, there is hereby created a Bicol River Basin Coordination Committee. It shall be composed of the Program Director as Chairman, the National Economic Development Authority Regional Executive Director for Region V as Vice-Chairman, with the Governors of Camarines Sur and Albay, and the designated representatives of the Department of Natural Resources and the Department of Public Works, Transportation and Communications, the Regional Directors for Region V of the Department of Local Government and Community Development, Agrarian Reform, Public Highways, Agriculture. Health, Education and Culture and the National Irrigation Administration, as members.

SEC. 9. Functions of the Program Coordination Committee. The Bicol River Basin Coordination Committee shall have the following functions:

1. Provide planning and management policies and guidelines for the day-to-day operations of the Program Officer;
2. Insure the plans and programs for the Bicol River Basin area conform with the overall development plan for Region V;
3. Serve as forum to resolve problems of inter-agency coordination at the Bicol River Basin area level and propose and/or institute remedial measures; and
4. Perform such other duties as may be assigned to it by the Cabinet Committee.

SEC. 10. Role, Functions and Responsibilities of the Implementing Departments and Agencies. All implementing departments and agencies shall be responsible for the execution of the projects assigned to them. They shall submit to the Cabinet Committee, through the Program Director, their respective annual project plans, budgets and the corresponding work programs for approval within three (3) months before the start of the ensuing calendar year. They shall also submit the financial and work plans for every request for budget release and periodic reports containing results of operations to the Cabinet Committee Coordinator.

SEC. 11. Expenditures and Disbursements. Projects of the Program funded by foreign or international institutions shall be exempt from any government ban and restriction against purchase of equipment and non-expendable and semi-expendable properties.

SEC. 12. Exemption from Taxes. Any provision of existing laws to the contrary notwithstanding, any donation, contribution, request, subsidy or financial aid which may be made to the Projects shall be exempt from taxes of any kind and shall constitute allowable deductions in full from the income of the donors and donees for income tax purposes.

The assets of the Program and its commodity requirements procured from local and foreign suppliers shall be exempt from all taxes, duties, fees, charges, imposts, licenses, and assessments, direct or indirect, imposed by the Republic of the Philippines or any of its political subdivision or authority.

SEC. 13. Auditing System. The Commission on Audit shall assign an auditor to the Program in accordance with existing laws, rules, and regulations. The auditor shall submit to the Cabinet Committee a consolidated project financial report within sixty days after the close of each calendar year.

SEC. 14. Appropriations. The amount of Five Million Pesos (P5,000,000) is hereby appropriated out of any available funds from the National Treasury not otherwise appropriated, as follows: Seven Hundred Fifty Thousand Pesos (P750,000) for the operating expenses of the Program Office and Four Million Two Hundred Fifty Thousand Pesos (P4,250,000) for the financing of the comprehensive operational plan for the Bicol River Basin. Thereafter, funds sufficient to fully carry out the objectives of the Program shall be appropriated every fiscal year in the General Appropriations Act.

SEC. 15. Separability Clause. If any provision, part or parts of this Decree is declared unconstitutional, such declaration shall not invalidate the other provisions hereof which shall continue to be operative.

SEC. 16. Repealing Clause. All laws, decrees, executive orders, administrative orders, letters of instructions, rules and regulations, or parts thereof, which are inconsistent with any provision of this Decree are hereby repealed or modified accordingly.

Executive Order No. 412, dated May 17, 1973, is hereby repealed and the properties, assets, records, unexpended funds and necessary personnel of the Program Office of the Bicol River Basin Council are hereby transferred to the Bicol River Basin Development Program Office created under this Decree.

SEC. 17. Effectivity. This Decree shall take effect immediately.

Done in the City of Manila, this 28th day of April in the year of Our Lord, nineteen hundred and seventy-six.