WHEREAS, it is the policy of the Government to accelerate the physical, economic and social growth of underdeveloped areas to achieve a more equitable distribution of developmental benefits;

WHEREAS, integrated rural infrastructure projects for Abra, Kalinga-Apayao, Bohol, Antique, Aklan, and Capiz have been adopted under the supervision of the Cabinet Coordinating Committee on Integrated Rural Development Projects organized under Letter of Instruction No. 99 and reconstituted under Presidential Decree No. 805;

WHEREAS, there is a need to create a machinery that will effectively implement those projects;

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. Rural Infrastructure Project Office. There is hereby created a Rural Infrastructure Project Office, hereinafter referred to as the Project Office, in the Department of Public Works, Transportation and Communications, which shall supervise and coordinate the planning and implementation of rural infrastructure projects, hereinafter called the Project, in the provinces of Abra, Kalinga-Apayao, Bohol, Antique, Aklan and Capiz, and such other provinces as may be designated by the Cabinet Coordinating Committee for Integrated Rural Development Projects.

SECTION 2. Cabinet Coordinator for the Project. The Secretary of Public Works, Transportation and Communications shall, in behalf of the Cabinet Coordinating Committee for Integrated Rural Development Projects, be the Cabinet Coordinator for the Project. In accordance with the policies and guidelines set by the Cabinet Coordinating Committee, he shall be responsible for the overall administration of the Project, including the supervision and coordination of plans, work programs, budgets, and implementation activities of the Project by the Project Office and all other agencies concerned.

SECTION 3. Project Director. The Project Office shall be headed by a Project Director who shall be appointed by the Cabinet Coordinator for the Project and shall serve until the satisfactory completion of the Project, unless sooner terminated from office for cause by the Cabinet Coordinator. The Project Director must be a natural-born Filipino citizen, of legal age and good moral character, and with a proven record of competence in management and implementation of infrastructure and related projects.

Pursuant to relevant guidelines issued by the Cabinet Coordinator, the Project Director shall have the following powers and functions:

1. Directly coordinate and supervise, for the Cabinet Coordinator, the activities of the implementing agencies in the planning and execution of the Project;
2. Review and integrate the plans, programs, and budget proposals for the Project for consideration of the Cabinet Coordinator, and forward the same to the Budget Commission for release of funds;
3. Monitor and evaluate the progress of the Project execution, and submit periodic progress reports to the Cabinet Coordinator;
4. Assist in the preparation of feasibility studies for newly identified rural development projects;
5. Coordinate with financing institutions regarding the activities of the Project.

SECTION 4. Implementing Departments and Agencies. The following agencies shall implement the Project:

1. The Department of Public Works, Transportation and Communications shall act as the lead agency for the Project and provide the necessary assistance to all components of the Project. In addition, it shall, through the Bureau of Public Works and the Philippine Ports Authority, plan and execute the construction, operation and maintenance of the seaports and the construction of the water supply systems and health centers included in the Project.
2. The Department of Public Highways shall plan and execute the construction, improvement and maintenance of barangay or feeder roads and other support services related to the road systems included in the Project.
3. The National Irrigation Administration, in cooperation with the Farm Systems Development Corporation, shall plan and execute the construction, upgrading, operation and maintenance of communal and pump irrigation systems and related support services included in the Project.
4. The Department of Health shall prepare and execute programs related to health delivery systems, including the operation and maintenance of rural health centers included in the Project.
5. The Provincial Development Committee shall monitor the implementation of the Project components in its province, and serve as an advisory body to the various agencies involved through their field of offices.

The implementing, agencies and departments shall submit to the Cabinet Coordinator, through the Project Director, their respective annual plans, budgets and work programs for the Project for the ensuing calendar year. They shall also organize their project implementation groups for their respective Project components. In addition, they shall submit to the Project Director periodic reports containing the progress and performance of their respective operations relevant to the Project.

SECTION 5. Steering Committee. There is hereby created a Steering Committee composed of senior officials of the agencies involved in the Project and of the Budget Commission, to be designated by the respective agency heads. The Assistant Secretary for Planning and Administration and the Assistant Secretary for Operations of the Department of Public Works, Transportation and Communications shall serve as Co-Chairmen of the Steering Committee. The Steering Committee shall insure that all agencies concerned execute their respective tasks according to the approved plans and schedules, and coordinate inter-agency responsibilities for the planning and implementation of the Project.

SECTION 6. Technical Working Group for the Project. The Cabinet Coordinator shall form a Technical Working Group composed mainly of technical staff from the National Economic and Development Authority and the Department of Public Works, Transportation and Communications. The Technical Working Group shall be responsible for the preparation of future rural infranstructure feasibility studies.

SECTION 7. Project Office Personnel. In accordance with the staffing pattern to be recommended by the Cabinet Coordinator and approved by the Budget Commission, the Cabinet Coordinator shall appoint the Project Director and all other personnel of the Project Office, define their duties and responsibilities, and fix their remunerations. The positions of the Project Director and other technical personnel of the Project Office shall be exempted from the rules and regulations of the Office of Compensation and Personnel Classification.

SECTION 8. Project Financing. Funds for the implementation of the Project components according to the approved plans and programs shall be included in the respective agency budgets. For this purpose, each implementing department and agency shall keep a separate financial account for their respective Project components.

The operating funds of the Project Office shall be taken from the available appropriations of the Department of Public Works, Transportation and Communications for the current calendar year, and thereafter, the same shall be included in the Annual General Appropriations measures.

SECTION 9. Repealing Clause. All laws, decrees, executive orders, administrative orders, rules and regulations, or parts thereof, which are inconsistent with any provision of this Decree are hereby repealed or modified accordingly.

SECTION 10. Effectivity. This Decree shall take effect immediately.

Done in the City of Manila, this 2nd day of February, in the year of Our Lord, nineteen hundred and seventy-eight.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JUAN C. TUVERA
		Presidential Assistant