WHEREAS, Republic Act No. 9054 was enacted into law on March 31, 2001 in order to strengthen and expand the Organic Act for the ARMM, and the same was ratified on August 14, 2001 with the addition of the province of Basilan, and the City of Marawi to the original four provinces comprising the ARMM;

WHEREAS, it is the policy of the National Government to devolve, as far as practicable and consistent with the Constitution and RA 6734, as amended by RA 9054, as many functions and powers of national government agencies to the Autonomous Regional Government (ARG); and

WHEREAS, the devolution of powers and functions of the National Government to the ARG is part of the government's peace process to find ways and means for a durable and lasting peace in Mindanao.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines by virtue of the powers vested in me by law, do hereby order:

SECTION 1.       Devolution of Locally Funded Programs and Projects to ARMM. - Unless otherwise specifically requested by the Regional Governor of the ARMM, locally funded programs and projects presently being undertaken within the ARMM, and those programmed to be implemented in the ARMM are hereby devolved to and heretofore to be implemented by the ARG of the ARMM.

SECTION 2.       Devolution of ODA Funded Programs and Projects to ARMM. - Unless otherwise specifically requested by the Regional Governor of the ARMM, Programs and Projects funded by Official Development Assistance (ODA) specifically intended only for ARMM shall be implemented by ARG.  Programs and Projects funded by ODA implemented on a nation-wide basis, but with an ARMM component shall be implemented by the concerned national agency, with the ARG implementing the component within the ARMM.

On-going programs and projects in the ARMM funded by ODA and covered by loan agreements shall be devolved to and implemented by ARG, subject to re-negotiation and amendment of the loan agreements covering said programs and/or projects.

SECTION 3.       ARMM ODA Office. - There is hereby created an ODA Office under the Office of the Regional Governor of ARMM that shall handle all matters relating to the accessing of ODA for ARMM programs and projects.  The ARMM ODA Office shall closely coordinate with the National Economic & Development Authority.  The Department of Budget and Management shall provide the budgetary requirements for the ARMM ODA Office.

SECTION 4.       Catch-up Budget for ARMM. - Pursuant to Sections 4 and 11, Article XVIII of Republic Act No. 9054, national agencies must include in their programs and activities the corresponding equitable and proportionate budget for programs and activities intended for the ARMM in consultation with the ARG.  However, in order to be consistent with and comply with the spirit of the devolution under RA 9054, the national agencies and the ARG shall agree on the mechanisms on the effective implementation by the latter of said programs and activities within the ARMM.

SECTION 5.       Transfer of Devolved Agencies in Basilan. - All offices of national agencies devolved to the ARG, including their personnel, asset, equipment and budget that are located in Isabela City, Basilan shall be transferred to an appropriate government center in Lamitan, Basilan starting January 2003.  The national government shall provide the necessary funding requirements to effect the transfer.  On the other hand, the concerned national agencies shall provide the necessary office including personnel and budget to service the requirements of Isabela City.

SECTION 6.       Freeze Hiring of ARMM Plantilla Positions. - Pending the transfer of the devolved power, function, program and project, national agencies are prescribed from filling up plantilla positions corresponding to the ARMM.  National agencies are likewise prescribed from abolishing, transferring plantilla positions in their agency that are intended for ARMM.

SECTION 7.       Repealing Clause. - All Executive issuances, orders, rules and regulations, or any part thereof, which are inconsistent with any provision of this Executive Order are hereby revoked, amended or modified accordingly.

SECTION 8.       Effectivity. - This Executive Order shall take effect immediately.

Adopted: 16 Sept. 2002

BY THE PRESIDENT:

(SGD.) ALBERTO G. ROMULO
Executive Secretary