WHEREAS, the National Government has embarked on a Land Administration and Management (LAM) Reform Program, which, among others, includes instituting reforms in the real property valuation sector through the adoption of single real property valuation system;

WHEREAS, a single national property valuation system is desired to stimulate the land market for capital mobilization which has tremendous impact on the national and local economies, particularly on the country ™s Gross Domestic Product (GDP);

WHEREAS, the National Government, through the Department of Finance (DOF), entered into an agreement under the Second Land Administration and Management Project (LAMP2) with the World Bank and the Australian Agency for International Development (AusAID), to institute real property valuation reform and to establish a national valuation authority, among others;

WHEREAS, the Government recognizes and realizes the benefits and importance of establishing a national valuation authority which will develop, implement, and maintain real property valuation standards and procedures at par with international trends and developments;

WHEREAS, in partial compliance to the above international commitment, the DOF created the ad hoc Property Valuation Staff (PVS), through Department of Finance Order 34-07 on 30 August 2007, as interim measure, while the proposed legislation, the Valuation Reform Act (VRA) bill, creating a national valuation authority, is being deliberated in Congress;

WHEREAS, to effectively institutionalize the reforms being undertaken by the PVS and to sustain the benefits from capacity development interventions being provided under LAMP2, an Executive Order is necessary for the creation of permanent positions and the allocation of necessary funds therefore to provide assurance of continuity;

WHEREAS, the issuance of this Executive Order is recommended by the DOF to institutionalize a national real property valuation system;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, and upon the recommendation of the Secretary of Finance, do hereby order the creation of the Property Valuation Office (PVO) in accordance with the following provisions:

Section 1. The Property Valuation Office - Organization and Structure. The Property Valuation Office (PVO) shall be headed by a Director and shall be composed of the following divisions: (a) Policy, Planning, Monitoring and Evaluation; (b) Valuation Database and Information System; (c) Valuation Standards; (d) Valuation Education and Training; (e) Finance and Administration; and (f) other divisions or units as may be deemed necessary. The Property Valuation Office shall remain to exist until the legislation creating a national valuation authority is in place to ensure that real property valuation reforms undertaken under LAMP shall continue to benefit the national and local governments. In the event of discontinuation of LAMP2 and subsequent projects under the LAM reform agenda of the National Government, the Property Valuation Office shall continue to operate with required appropriations sought from the General Appropriations Act. The PVO shall be housed at the DOF until such time that the legislation creating a national valuation authority is approved.

Sec. 2. PVO Budget. Funds for Personal Services (PS) are hereby authorized based on the requirements of PVO as indicated in the Implementing Rules and Regulations of this Executive Order. The Maintenance and Other Operating Expenses (MOOE) and Capital Outlay (CO) of the PVO shall be derived from LAMP projects as long as LAMP projects exist. In the event that the Valuation Reform Act (VRA) bill is enacted, the PVO shall be transformed into the national valuation authority and its budget would be as defined under the VRA. Appendix A shows the proposed annual personnel budget for the PVO.

Sec. 3. Advisory Committee of PVO. There is hereby created the Property Valuation Advisory Committee (PVAC) to be headed by the Executive Director of the Bureau of Local Government Finance (BLGF) and as members, the Director of the PVO and representatives from the Bureau of Internal Revenue (BIR), National Tax Research Center (NTRC), Land Registration Authority (LRA), national LGU assessors ™ association, national LGU treasurers ™ association, private appraisal sector, civil society, and others, as may be deemed necessary. The terms of reference of the PVAC shall be part of the IRR of this Executive Order.

The PVAC shall exist until subsequent advisory committee as may be required by the VRA shall have been constituted.

Sec. 4. PVO Supervision. Until the passage of VRA, the LAMP2 Management Committee (Mancom) or subsequent projects under LAM reform program, shall provide policy guidance to the PVO and the PVAC. In the event that the RA is not approved by Congress, the PVO shall be under the supervision of the DOF or its assigned agency.

Sec. 5. Implementation. The DOF, in consultation with relevant authorities, shall prepare the Implementing Rules and Regulations (IRR) of this Executive Order in the form of a comprehensive usage manual, which shall be subject to the approval of the Office of the President.

Sec. 6. Repealing Clause. All other Presidential directives, issuance, orders, rules and regulations, or parts thereof, which are inconsistent with the provisions of this Executive Order are hereby repealed or modified accordingly.

Sec. 7. Effectivity. This Executive Order shall take effect immediately upon its publication in a newspaper of general circulation.

Done in the City of Manila, this 13th day of October, in the year of Our Lord, Two Thousand and Nine.

	(Sgd.) GLORIA MACAPAGAL-ARROYO
By the President:
(Sgd.) EDUARDO R. ERMITA
Executive Secretary