WHEREAS, from statistics gathered, there is a current backlog in the school building construction of approximately forty six thousand (46,000) school rooms;

WHEREAS, due to the continuing increase of student population, the yearly occurrence of natural calamities such as typhoons, floods and earthquakes, and the depreciation brought about by ordinary wear and tear, school rooms and buildings have to be provided, repaired or replaced yearly;

WHEREAS, actual experience has shown that construction of school buildings with the use of standardized prefabricated building components is more economical and expeditious; and

WHEREAS, the Japanese reparations as the major source of school building components has already been terminated;

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:

SECTION 1. There shall be established, under the direct supervision and control of the Director of Public Works, prefabrication plants for school building components to be located in strategic places of the country to prefabricate school building components;

SEC. 2. For the organization and initial operating capital of said plants, the amount of FIFTY MILLION PESOS (P50,000,000.00) or so much thereof as may be necessary, is hereby appropriated out of any funds in the National Treasury not otherwise appropriated to be spent in accordance with the provisions of Section 7-1(4) of Commonwealth Act No. 246, as amended.

SEC. 3. The appropriation authorized herein shall include the amounts needed for the construction of buildings, acquisition of equipment including motor vehicles, salaries and wages of personnel and other operating expenses.

SEC. 4. The prefabricated school building components produced by these plants shall be paid from the allotments for the construction of school buildings allotted to the various district and city engineering offices of the Bureau of Public Works.

SEC. 5. The income which may derived from the operation of the plants is hereby constituted as a trust fund to be known as the School Building Components Fabrication Trust Fund under the administration of the Bureau of Public Works and shall be spent solely for the operation and maintenance of the plants including the construction of buildings and the acquisition of equipment including motor vehicles which may be needed from time to time.

SEC. 6. The necessary appropriations for the continuous operation of these plants shall be included in the general annual appropriation measure.

SEC. 7. The provision of any law. rule or regulations to the contrary, notwithstanding, the acquisition of equipment, supplies and materials for this purpose shall be exempt from any tax.

SEC. 8. This Decree shall take effect immediately.

Done in the City of Manila, this 16th day of May, in the year of Our Lord, nineteen hundred and seventy-five.