Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Declaration of Policy. - It is hereby declared the policy of the State to help and assist the victims or their legal heirs in those communities heavily damaged by the earthquakes of July 16, 1990 by extending to them adequate aid, relief, and reconstruction services to the end that life may return to normal at the earliest possible time.

Countless persons and organizations, here and abroad, as well as foreign governments, have spontaneously and unselfishly contributed their time, effort, and money at the risk of their lives to the rescue and relief efforts.  The State acknowledges such acts of compassion and humanity.

SEC. 2. Statement of Objectives and Guidelines. - This Act is intended to help the victims or their legal heirs in those communities which suffered heavy losses or damage from the earthquakes and their aftereffects.  While the extent of damage cannot be compensated to the fullest, this Act aims to provide initial funds for the immediate relief of the victims or their legal heirs and to repair and reconstruct government infrastructure heavily damaged or destroyed by said calamity.

The term "victims" when used for the purposes of this Act refers to individuals who sustained serious injuries or suffered death in the family as a result of the aforementioned earthquakes.  It also includes individuals whose homes have been destroyed or rendered uninhabitable requiring aid in the form of accommodation in temporary shelters and/or food sustenance while they are rebuilding their dwelling places.

Government funds and resources herein appropriated shall be spent judiciously and effectively, in consonance with the principle of providing the greatest good for the greatest number.  Accordingly, the following guidelines shall be taken into consideration in allocating the funds made available under this Act:

1. In the repair and reconstruction of government infrastructure and facilities, priority shall be given to such projects as roads, bridges, and other means of communication, hospitals, school buildings, irrigation systems, canals and water systems, municipal buildings, public markets, and the like;
2. Money or supplies intended for aid or relief to private beneficiaries shall be equitably extended to all deserving victims of the earthquakes, irrespective of political or party affiliation, sex, creed, religious belief, or ethnic origin; and
3. Any person who takes advantage of the calamity for undue personal and private gain, such as trafficking in buying and selling or misrepresenting the source of relief goods, submitting false or inflated damaged reports, and other illegal acts shall be prosecuted and punished to the fullest extent of the law.
   

SEC. 3. Appropriations Clause. - The sum of Ten billion pesos (P10,000,000,000.00) is hereby appropriated out of any funds in the National Treasury not otherwise appropriated for the aid, or relief, to the victims or their legal heirs in the areas affected and for the repair and reconstruction of government infrastructure damaged or destroyed by the earthquakes that hit the country on July 16, 1990, and their aftershocks in the heavily damaged areas identified in Proclamation Nos. 613, 615, and 618, and such other places as may hereafter be proclaimed as calamity areas as a result of the aforesaid earthquakes.

SEC. 4. Priority Assistance and Projects. - The President, in consultation with national and local officials of the calamity areas, both elective and appointive, shall within a period of six (6) months from the effectivity of this Act, determine and approve the beneficiaries of aid and relief services and, within three (3) months from the effectivity hereof, determine and approve on the basis of actual damage certified by the department, office or agency concerned the vital and essential government infrastructure projects which shall be financed from the appropriations authorized herein. The information concerning such projects shall be disseminated in the affected areas.

SEC. 5. Implementation. - The survey, repair and reconstruction of damaged or destroyed government infrastructure and facilities shall be undertaken by the implementing government agencies concerned by public bidding, administration or through negotiated contracts, subject to usual accounting and auditing rules and regulations.  However, in case of negotiated contracts, only duly pre-qualified and duly licensed contractors licensed as of the approval of this Act can be awarded the negotiated contracts and only within a period of six (6) months after the effectivity thereof.

With respect to aid and relief services to individual beneficiaries, the President may seek the assistance and use the services of the Philippine National Red Cross and all other relief agencies and volunteer-organizations with proven record in providing relief work.

SEC. 6. Obligation of Funds. - All funds covering contracts entered under this Act shall be obligated within one (1) year from the effectivity hereof.

SEC. 7. Preference to Local Residents. - Residents in the affected areas, especially the victims, shall be given preference in hiring or employment of manpower in the repair or reconstruction of damaged or destroyed government infrastructure and facilities.

SEC. 8. Report to Congress. - The President shall submit to Congress a quarterly report on the funds allocated for aid or relief services and funds allocated for the repair and reconstruction of vital and essential infrastructure projects, the list of such infrastructure projects which shall be financed, the list of names of approved individual beneficiaries, the purposes for which the appropriations were utilized and the accomplishments for the expended appropriations, including the percentage of completion of repair and reconstruction projects, as well as an evaluation of the effectiveness of the delivery system of relief services.

SEC. 9. Rules and Regulations. - The President shall issue the necessary implementing rules and regulations within fifteen (15) days from the approval of this Act. Such rules and regulations shall be published in at least two (2) national newspapers of general circulation for their effectivity.

SEC. 10. Repealing Clause. - Any law, order, decree, rules and regulations which are inconsistent with or contrary to the provisions of this Act are hereby amended or repealed.

SEC. 11. Effectivity Clause. - This Act shall take effect upon its publication in at least two (2) national newspapers of general circulation.

Approved,

(Sgd.) JOVITO R. SALONGA	(Sgd.) RAMON V. MITRA
President of the Senate	Speaker of the House of Representatives

This Act which originated in the House of Representatives was finally passed by the House of Representatives and the Senate on July 30, 1990 and July 25, 1990, respectively.

(Sgd.) EDWIN P. ACOBA	(Sgd.) QUIRINO D. ABAD SANTOS, JR.
Secretary of the Senate	Secretary of the House of Representatives

Approved: August 7, 1990