WHEREAS, there is need to strengthen public works functions of the Government in order to increase the production of physical infrastructure facilities of the country;

WHEREAS, There is need to strengthen the Government's capability of operating and regulating the use of these facilities; and

WHEREAS, in assuming these vast and varied responsibilities, the Department of Public Works, Transportation and Communications has become too large to provide effective supervision and administration.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order to be part of the law of the land, the following:

SECTION 1. Presidential Decree No 1 dated September 24, 1972, relative to Part X of the Integrated Reorganization Plan is hereby amended by separating the Bureau of Public Highways from the Department of Public Works, Transportation and Communications and creating it as a department to be known as Department of Public Highways.

SEC. 2. Organization of the Department of Public Highways.- The Department of the Public Highways, shall be composed of a Department Proper made up of the immediate Office of the Secretary, the Planning Service, the Administrative Service, and the Financial and Management Service; two bureau, namely: (a) the Bureau of Construction and Maintenance and (b) the Bureau of Equipment; and the Regional and District Offices.

SEC. 3. Relationships between the Department Proper, the Bureaus and the Regional Offices.—The Department Proper shall have direct line supervision over the bureaus and regional offices. It shall be responsible for developing and implementing1 programs on the construction and maintenance of roads, bridges and airport runways. The Bureau of Construction and Maintenance shall be essentially staff in character and as such, shall exercise only functional supervision over the regional offices, while the Bureau of Equipment shall provide equipment support to the field offices through its equipment depots and area shops. When necessary and as a means of assisting the Department Proper in delineating the methods and plans of operation at the field level, both Bureaus shall maintain Communication and contract with the regional offices for the purpose of updating established plans and programs and determining problems arising therefrom.

The regional offices shall constitute the operating arms of the Department Proper with responsibility for directly implementing the plans and programs drawn up by the bureaus and assigned by the Department Secretary in accordance with duly adopted policies, standards, and guidelines. They shall be organized as miniature counterparts of the Department in the region and shall be vested with sufficient authority to undertake departmental operations within their respective jurisdictions. In the exercise of such authority, they shall be directly responsible to the Secretary and shall receive proper technical guidance from the two Bureaus.

SEC. 4. In conformity with the above set of functional relationships, the functions, powers, duties and responsibilities of the various units of the Department shall be as follows:

SEC. 5. Office of the Secretary.—The Office of the Secretary shall consist of the Secretary of Public Highways, the Undersecretary of Public Highways and the personnel in their immediate office. It shall be responsible for the adoption and promulgation of rules and regulations necessary to carry out departmental policies and objective, and for exercising general supervision and control over the bureaus and offices of the Department.

SEC. 6. Function of the Secretary.—The functions of the Secretary shall be as follows:

1. Advise the President in the promulgation of executive orders, regulations, and decrees relative to matters under the jurisdiction of the Department;
2. Establish the policies and standards for the operation of the Department pursuant to the President's program of government;
3. Promulgate rules and regulations necessary to carry out department objectives, policies, and functions;
4. Exercise supervision and control over all bureaus and offices under the Department;
5. Delegate authority for the performance of any function to officers and employees under this direction; and
6. Perform such other functions as may be provided by law.

SEC. 7. Functions of the Undersecretary.—The functions of the Undersecretary shall be as follows:

1. Advise and assist the Secretary in the formulation and implementation of department objectives and policies;
2. Oversee all the operational activities of the Department for which he all be responsible for its responsible to the Secretary;
3. Coordinate the programs and projects of the Department and be responsible for its economical, efficient, and effective administration;
4. Serve as deputy of the Secretary in all matters relating to the operations of the Department; and
5. Perform such other functions as may be provided.

SEC. 8. When the Secretary is unable to perform his duties owing to illness, absence or other causes, or in case of vacancy in the office, the Undersecretary shall temporarily perform the functions of said Office.

SEC. 9. The functions and composition of the Planning Service, Administrative Service and Financial and Management Service shall be in accordance with those prescribed under Chapter I, Part II of the Integrated Reorganization Plan.

SEC. 10. Functions and composition of the Bureau, of Construction and Maintenance.—The Bureau shall be responsible for the formulation and development of policies, plans, programs and standards for the construction and maintenance of roads, bridges and airport runway. It shall provide working guidelines for the operating units of the Department. It shall be responsible for evaluating policies, plans, programs and standards and it shall coordinate closely with the Planning Service and regional offices of the Department.

The Bureau shall be headed by a Director assisted by an Assistant Director. It shall be composed of the following divisions: (a) Design Division; (b) Construction Division (c) Soils and Materials Division; and (d) Maintenance Division.

SEC. 11. Functions and composition of the Design Division.—The Design Division shall be responsible for undertaking the structural and architectural design of roads, bridges and airport runways, including necessary survey and location works, specifications and estimates and establishing uniform practices and standards of design to be adopted by regional and district offices of the Department. The Division shall actually perform designing work for highly complex projects only, while the department field offices shall be delegated with the authority to prepare designs of less complicated projects following the standards set by the Division. It shall have a Highway Design Section, a Bridge Design Section, and a Drafting Section.

SEC. 12. Functions and composition of the Construction Division.- The Construction Division shall be responsible for exercising technical supervision over all activities relating to construction of roads, bridges and airport runways being undertaken by the department field offices, and setting standards and procedures for construction works. It shall have an Engineering Section, a Contracts Section and a Planning Section.

SEC. 13. Functions and composition of the Soils and Materials Division.—The Soils and Materials Division shall be responsible for carrying out researches and tests on soils and construction materials for highway projects; development of materials control procedures, standards and specifications for use and adoption by the design, construction and maintenance units; and providing coordinative and supportive functions to its counterpart units in the department regional and district offices. It shall have a Technical Services and Research Section, a Management Section, and an Operations Section.

SEC. 14. Functions and composition of the Maintenance Division.—The Maintenance Division shall be responsible for exercising technical supervision over all activities relating to maintenance of roads, bridges and airport runways being undertaken by the department field offices, establishing policy guidelines; extending consultative services to the department field offices; and setting standards and procedures for maintenance works. It shall have a Planning and Control Section, a Technical Inspection Section and an Inventory and Statistics Section.

SEC. 15. Functions and composition of the Bureau of Equipment.-the Bureau of Equipment shall be responsible for the management and control of all equipment belonging to the Department, including their repair, maintenance and allocate to the department field offices. It shall have an Administrative Division, a Financial and Management Division, and Equipment Depots and Area Shops.

SEC. 16. Functions and composition of the Administrative Division.—The Administrative Division shall be responsible for undertaking activities relative to personnel, records, and general services. It shall have a Personnel Section and a General Services Section.

SEC. 17. Functions and composition of the Financial and Management Division.—The Financial and Management Division shall be responsible for undertaking activities relative to operational budgeting, accounting management improvement and financial reporting. It shall have a budget Section, and Accounting Section, and a Management Section.

SEC. 18. Functions and composition of the Planning Division.—The Planning Division shall be responsible for formulating plans, programs and policies for equipment management and control including their repair, maintenance and allocation. It shall have a Planning Section, a Technical Information and Specification Section and a Cost Analysis Section.

SEC. 19. Functions and composition of the Operations Division.—The Operations Division shall be responsible for providing technical supervision and control over the repair, maintenance and allocation of equipment by the Equipment Depots and Area Shops of the Bureau. It shall have an Equipment Control Section and a Preventive Maintenance Section.

SEC. 20. Functions of the Equipment Depots and Area Shops.—The Equipment Depots and Area Shops shall be responsible for the actual allocation of equipment to the department regional offices based on schedules set by the Bureau; repair and maintenance of all equipment in the field in accordance with the guidelines, specifications and standards established by the Bureau; and such other functions as may be provided by law.

SEC. 21. Functions and composition of the Regional Offices.—There are created eleven Regional Offices pursuant to the provisions of Chapter III, Part II of the Integrated Reorganization Plan.

The Regional Office shall be responsible for the general supervision, direction, evaluation, and coordination of the operations and activities of the Department within the Region. It shall perform the following functions, among others:

1. Administer, coordinate, and supervise the execution and/or the management of projects and activities in the region;
2. Assign equipment among the district offices and among projects in the region in coordination with the major equipment depot concerned; and assign and allocate materials among district offices and among projects in the region;
3. Under delegated authority, approve project work programs, plans, estimates, specifications, requisitions, procurement of materials and authority to undertake projects by administration or contract within the budgetary limits, plans, programs, policies and standards laid down by the appropriate headquarters entities;
4. Approve, under delegated authority, appointments of personnel of the district offices in the region; and render decisions on personnel and other administrative matters;
5. Undertake design work and project studies for less complex projects; and
6. Perform such other functions as may be provided by law.

SEC. 22. Functions and composition of the District Offices.—The Regional Offices of the Department shall have only one Highway District Office in every regular province, provided that when necessary, additional district offices may be created with the approval of the President. The district office shall be responsible for the implementation and execution of the policies, plans, programs, rules and regulations of the Department relative to the construction and maintenance of roads, bridges and airport runways. It shall have the following functions, among others:

1. Administer, coordinate and direct all constructions and maintenance of roads, bridges and airport runways in the district;
2. Undertake research and planning analysis for the development of roads, bridges and airport runways and submit to the regional, office pertinent statistical data and planning proposals, including infrastructure requirements that may be needed;
3. Coordinate with other local and national government units located in the district; and
4. Perform such other functions as may be provided by law.

SEC. 23. Organization of the Department of Public Works, Transportation, and Communications.—The Department of Public Works, Transportation and Communications shall be composed of the Department Proper made up of the immediate Office of the Secretary, the Planning Service, the Administrative Service, and the Financial and Management Service, and six bureaus, namely: (a) the Bureau of Public Works, (b) the Bureau of Ports and Harbors, (c) the Bureau of Transportation, (d) the Bureau of Posts, (e) the Bureau of Telecommunications, and (f) the Radio Control Office which is renamed Telecommunications Control Bureau. The Board of Transportation, the Board of Power and Waterworks and the Board of Communications shall be under the administrative supervision of the Department of Public Works, Transportation and Communications. The Water Resources Committee is retained in the Department. The following government owned and controlled corporations and authorities are attached to the Department of Public Works, Transportation and Communications: (a) Central Luzon-Cagayan Valley Authority, (b) the Cavite Electricity Distributing Authority, (c) the Cagayan de Oro Port Authority, (d) the San Fernando Port Authority, and (e) the National Irrigation Administration.

SEC. 24. The Department of Public Works, Transportation and Communications shall maintain its present functions subject to the provisions of the foregoing sections of this Decree and subject, further, to the provision following.

SEC. 25. The Project Execution Service is abolished except that the Infrastructure Operations Center is transferred to and made an integral part of the National Economic and Development Authority. It shall be responsible for monitoring and evaluating the progress and execution of all infrastructure projects to provide information on project performance of the various agencies for the President and the Authority.

SEC. 26. The Board of Transportation shall have the same composition, powers and functions except that its Air Transportation Division is abolished.

SEC. 27. The Ports, Harbors and Reclamation Division shall be separated from the Bureau of Public Works and shall be converted to a bureau to be known as the Bureau of Ports and Harbors.

SEC. 28. Functions and composition of the Bureau Ports and Harbors.—The Bureau of Ports and Harbors shall be responsible for the construction, maintenance and repair of ports, harbors, shore protection works and navigational aids as well as dredging and clearing of harbors, navigable rivers, channels and waterways and the reclamation of foreshore lands and seaways. It shall have a Management Division, an Administrative Division, a Financial and Management Division, a Construction Division, a Harbor Dredging and Reclamation Division and Regional and District Offices.

SEC. 29. Functions and composition of the Planning Division.- The Planning Division shall be responsible for formulating plans, programs, and policies for the construction, repair and maintenance of ports and harbors, shore protection works and navigational aids, dredging and clearing of harbors, navigable rivers, channels and waterways and reclamation of foreshore lands and swamps. It shall have a Project Development Section, a Programming Section, and a Research and statistics Section.

SEC. 30. Functions and composition of the Administrative Division.—The Administrative Division shall be responsible for undertaking activities relative to personnel information, records, legal and general service, and other supportive services. It shall have a Personnel Section, a Legal Section, an Information Section, and a General Services Section.

SEC. 31. Functions and composition of the Financial and Management Division.—The Financial and Management Division shall be responsible for undertaking activities relative to operational budgeting, accounting, management improvement and financial reporting. It shall have a Budget Section, an Accounting Section, and a Management Section.

SEC. 32. Functions and composition of the Construction Division.—The Construction Division shall be responsible for the preparation of plans, specifications and estimates, for the technical supervision of the construction, maintenance and repair of ports, harbors, shore protection works and navigational aids. It shall have a Designing Section and a Construction Management and Control Section. SEC. 33. Functions and composition of the Harbor Dredging and Reclamation Division.—The Harbor Dredging and Reclamation Division shall be responsible for dredging and clearing of harbors, navigable rivers, channels and waterways, and reclamation of foreshore lands. It shall have a Drydocking, Repair and Maintenance Section, and a Dredging Section.

SEC. 34. Functions and composition of the Regional Offices.—There are created eleven Regional Offices pursuant to the provisions of Chapter III, Part II of the Integrated Reorganization Plan.

The regional office shall be responsible for the general supervision, direction, evaluation and coordination of the operations and activities of the Bureau within the Region. It shall perform the following functions, among others:

1. Administer, coordinate, and supervise the execution and/or management of projects and activities in the region;
2. Assign equipment among the district offices and among projects in the region in coordination with the major equipment depot concerned; and assign and allocate materials among district offices and projects in the region;
3. Under delegated authority, approve project work programs, plans, estimates, specifications, requisitions, procurement of materials, and authority to undertake projects by administration or contract within the budgetary limits, plans, programs, policies and standards laid down by the appropriate headquarters entities;
4. Approve, under delegated authority, appointments of personnel of the district offices in the region; and render decisions on personnel and other administrative matters;
5. Undertake design work and project studies for less complex projects; and
6. Perform such other functions as may be provided by law.

SEC. 35. Functions and composition of the District Offices.—The regional offices of the Bureau shall have district offices in places and in such number as may be necessary to undertake actual field operations of the Bureau. The district offices shall be responsible for the implementation and execution of the policies, plans, programs, rules and regulation of the Bureau relative to the construction and maintenance of ports and harbors. It shall have the following functions, among others:

1. Administer, coordinate and direct all construction and maintenance of ports and harbors in the district;
2. Undertake research and planning analysis for the development of ports and harbors facilities and submit to the regional office pertinent statistical data and planning proposals, including infrastructure requirements that may be needed;
3. Coordinate with other local and national government units located in the district; and
4. Perform such other functions as may be provided by law.

SEC. 36. The clearing house and coordination functions of the abolished Presidential Advisory Council on Public Works and Community Development relative to public works are transferred to the Department of Public Works, Transportation and Communications.

SEC. 37. Section 1 of Presidential Decree No. 107, dated January 24, 1973, is hereby amended by including the Secretary of Public Highways in the membership of the National Economic and Development Authority.

SEC. 38. All provisions of Part X of the Integrated Reorganization Plan and those of Letter of Implementation No. 11 dated November 1, 1972, which are not amended by or inconsistent with the foregoing provisions shall be effective and shall be correspondingly applied in accordance with the intents and purposes of this Decree.

SEC. 39. All transfers or allocation of Bureaus and Offices to the new departments in pursuance hereof shall include their respective personnel, property, funds and responsibilities.

SEC. 40. 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-four.