WHEREAS, there is a need to increase the appropriations of some on-going and previously authorized projects to ensure their completion in view of increased construction costs brought about by circumstances beyond the control of the government and of changes in technical designs and requirements;

WHEREAS, there is also a need to provide appropriations for new projects in support of priority programs of the government including the food production and distribution program;

WHEREAS, it is necessary to provide adequate appropriations to cover the local counterpart funds of on-going and proposed foreign-financed projects in view of the country's increasing capability to absorb foreign assistance as demonstrated by the various loans and aids extended to Government projects;

WHEREAS, there is a need to appropriate funds for these projects in adequate amounts to cover their total costs up to completion to assure continuity of their implementation.

WHEREAS, there is need to synchronize all public works appropriations in the previous Public Works Acts to assure their relevance to current development objectives;

WHEREAS, in order to make more effective the National Development Program, there is a need to provide sustained financial support to the Infrastructure Program;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution and for sustained development of the country through complementary infrastructure facilities, do hereby decree and order as follows:

SECTION 1. Capital Development Projects. - The following sums, or so much thereof as may be necessary, are hereby appropriated, out of the general funds in the National Treasury not otherwise appropriated, from the proceeds of bond issues and/or loans from local or foreign financial institutions, to implement projects pertaining to the program of capital improvements of the Administration, subject to the provisions hereinafter set forth, for the purpose mentioned hereunder:

TITLE A - TRANSPORTATION AND COMMUNICATIONS

l. For the construction, improvement, rehabilitation, reconstruction, completion, including project preparation, and the purchase of necessary construction materials and supplies, of the projects listed/summarized hereunder:

(a)	Highways
	1.	Pan Philippine Highway		P 465,000,000
	2.	Manila North Expressway Extension		125,000,000
	3.	Manila East Road		75,000,000
	4.	San Fernando-Gapan Road, Pampanga and Nueva Ecija		70,000,000
	5.	Sto. Tomas-Batangas Road, Batangas		15,000,000
	6.	Tarlac-Lingayen Road, Tarlac and Pangasinan		30,000,000
	7.	Road Right-of-way, Luzon Road Projects		91,000,000
	8.	Cotabato-Digos Road, Cotabato		25,000,000
	9.	Manila South Expressway Extension		20,000,000
	10.	Tarlac-Santa Rosa Road including Feeder Roads, Tarlac and Nueva Ecija		10,000,000
	11.	Iligan-Cagayan de Oro-Butuan City Road		200,000,000
	12.	Cotabato City-General Santos City Road		30,000,000
	13.	Cubao Interchange, Quezon City		20,000,000
	14.	Davao-Calinan-Bukidnon Road		90,000,000
	15.	Jct. Carmen-Dapecol-Panabo Pier Road, Davao del Norte		10,000,000
	16.	Marikina-Infanta Road, Rizal and Quezon		100,000,000
	17.	Lumban-Caliraya-Cavinti Road, Laguna		15,000,000
	18.	Jct. Layac-Mariveles Road, Bataan		55,000,000
	19.	Lamut-Banawe Road, Ifugao		30,000,000
	20.	Agoo-Tubao-Baguio Road, La Union and Benguet		40,000,000
	21.	Bacoor-Naic-Ternate-Nasugbu Road, Cavite and Batangas		60,000,000
	22.	Tagaytay-Batangas Road, Tagaytay City and Batangas		65,000,000
	23.	Zambales-Pangasinan Road		60,000,000
	24.	Zamboanga Integrated Development Road Projects, Zamboanga del Sur		80,000,000
	25.	Mindoro Integrated Development Road Projects, Occidental and Oriental Mindoro		150,000,000
	26.	Legaspi-Tiwi Road, Albay		20,000,000
	27.	Tabaco-Ligao Road, Albay		15,000,000
	28.	Silay-Bacolod-Bago Road, Negros Occidental		85,000,000
	29.	Bago-Kabankalan Road, Negros Occidental		45,000,000
	30.	Jaro-Janiuay Road, Iloilo		30,000,000
	31.	Janiuay-Calinog Road, Iloilo		30,000,000
	32.	Calinog-Passi Road, Iloilo		10,000,000
	33.	Calinog-Dao Road, Iloilo		30,000,000
	34.	Jaro-Zarraga Road, Iloilo		10,000,000
	35.	Zarraga-Passi Road, Iloilo		60,000,000
	36.	Carvasona-Duenas Road, Iloilo		10,000,000
	37.	Zarraga-Barotac Nuevo Road, Iloilo		35,000,000
	38.	Cebu City-Carmen Road, Cebu		25,000,000
	39.	Naga-Lutopan-Toledo Road, Cebu		50,000,000
	40.	Puerto-Malaybalay Road, Bukidnon		60,000,000
	41.	Malaybalay-Kibawe Road, Bukidnon		70,000,000
	42.	Silay-Fabrica Road, Negros Occidental		75,000,000
	43.	Fabrica-San Carlos Road, Negros Occidental		50,000,000
	44.	San Carlos-Villahermoso Road, Negros Oriental		30,000,000
	45.	Villahermoso-Sibuco Road, Negros Oriental		55,000,000
	46.	Dao-Roxas City Road, Cebu		25,000,000
	47.	Roxas-Pontevedra-Bailan Road, Capiz		15,000,000
	48.	Lanot-Bailan Road, Capiz		15,000,000
	49.	Bailan-Estancia Road, Capiz		35,000,000
	50.	Limbog-Kalibo Road, Aklan		30,000,000
	51.	Barotac Nuevo-Barotac Viejo Road, Iloilo		20,000,000
	52.	Dawatan-Banate Road, Iloilo		10,000,000
	53.	Carmen-San Remigio Road, Antique		45,000,000
	54.	Anonang-Daanbantayan Road, Cebu		15,000,000
	55.	Cebu South Road, Cebu		65,000,000
	56.	Baguio-Lubuagan Road, Benguet and Kalinga, Apayao		180,000,000
	57.	Iloilo-Antique Road		60,000,000
	58.	Dumaguete North Road, Negros Oriental		120,000,000
	59.	Dumaguete South Road, Negros Oriental		80,000,000
	60.	Tagbilaran East Road, Bohol		120,000,000
	61.	Tagbilaran North Road, Bohol		90,000,000
	62.	Palo-Carigara-Ormoc Road, Leyte		70,000,000
	63.	Dugo-Gonzaga-San Vicente Road, Cagayan		65,000,000
	64.	Midsayap-Dulawan-Marbel Road, North Cotabato and Maguindanao		70,000,000
	65.	Dipolog-Oroquieta Road, Zamboanga del Norte and Misamis Occidental		65,000,000
	66.	Ilocos Sur-Ilocos Norte-Magapit Road, Ilocos Sur, Ilocos Norte and Cagayan		150,000,000
	67.	Ilagan-Palanan Road, Isabela		70,000,000
	68.	Solsona-Cabugao-Corner Rizal Road, Ilocos Norte, Kalinga, Apayao and Cagayan		130,000,000
	69.	Quirino Highway, Quezon and Camarines Sur		100,000,000
	70.	Metro Manila Ring Roads		190,000,000
	71.	Circumferential Roads, Metro Manila		150,000,000
	72.	Secondary and Feeder Roads in Bicol Region		60,000,000
	73.	Gen. Santos-Malisbeng Secondary Roads, South Cotabato		60,000,000
	74.	Basey-Balangiga Road, Western and Eastern Samar		50,000,000
	75.	Capas-Botolan Road, Tarlac and Zambales		30,000,000
	76.	Dipolog-Pagadian Road, Zamboanga del Norte and del Sur		50,000,000
	77.	Valencia-Pangantucan-Kalilangan Road, Bukidnon		18,500,000
	78.	Kalilangan-Kalingilian-Kibawe Road, Bukidnon		20,800,000
	79.	Talakag-Lantapan Road, Bukidnon		20,000,000
	80.	Brookes Point Roads, Palawan		30,000,000
	81.	Dasan Buenavista-Torrijos Road, Marinduque		11,000,000
	82.	Ilagan-Kapatagan Road, Lanao del Norte		39,000,000
	83.	Lake Lanao Coastal Road, Lanao del Sur		92,000,000
	84.	Padada-Columbio Road, Davao del Sur and Sultan Kudarat		42,000,000
	85.	Sequil-Maitum-Malisarong Road, South Cotabato		65,000,000
	86.	South Cotabato Roads		34,000,000
	87.	Radial and Circumferential Roads, Jolo, Sulu		20,000,000
	88.	National Roads in Manila		100,000,000
	89.	Improvement of National Roads and Bridges
		a. Luzon		130,000,000
		b. Mindanao		95,000,000
		c. Visayas		70,000,000
	90.	Feeder and Secondary Roads and Bridges		400,000,000
	91.	Developmental Roads		240,000,000
	92.	Provincial, City and Municipal Roads		300,000,000
	93.	Roads Right-of-Way		150,000,000
	94.	Various National Roads		311,700,000
				----------------
			Total for Highways	P7,150,000,000
				===========
(b)	Railways
	1.	Rehabilitation of Batangas Line (Calamba-Batangas Port)		P 32,000,000
	2.	Main Line South Project (Manila-Legaspi)		302,000,000
	3.	Other Railways Projects		10,000,000
				---------------
			Total for Railways	P 344,000,000
				==========
c)	Airports and Air Navigation
	1.	Manila International Airport		P 254,000,000
	2.	Butuan Airport		17,900,000
	3.	Cagayan de Oro Airport		12,520,000
	4.	Cagayan de Sulu Airport		17,000,000
	5.	Cauayan Airport		21,000,000
	6.	Davao City Airport		15,600,000
	7.	Export Processing Zone Authority Airport		40,000,000
	8.	Fuga Airport		20,300,000
	9.	Iloilo Airport		20,000,000
	10.	Ipil Airport		10,500,000
	11.	Legaspi Airport		11,500,000
	12.	Mactan Airport		13,800,000
	13.	Manila General Aviation Airport		22,000,000
	14.	Zamboanga City		15,000,000
	15.	Various Airports		405,953,000
	16.	Air Navigation Facilities		50,000,000
				---------------
		Total for Airports/Air Navigation		P947,073,000
				==========
d)	Portworks and Maritime Navigation
	1.	Port of Manila		P270,000,000
	2.	Port of Tabaco, Albay		24,365,000
	3.	Port of Mariveles (Syncrolift), Bataan		30,000,000
	4.	Port of Batangas, Batangas		14,500,000
	5.	Port of Cagayan de Oro		45,500,000
	6.	Port of Cebu, Cebu City		55,150,000
	7.	Port of Cotabato (Polloc)		120,000,000
	8.	Port of Makar, Gen. Santos City		44,700,000
	9.	Port of Tacloban City, Leyte		14,600,000
	10.	Port of Calapan, Mindoro Oriental		126,770,000
	11.	Philippine (Navotas) Fisheries Port, Rizal		32,000,000
	12.	Port of Casambalanga, Cagayan		25,000,000
	13.	Port of Sta. Ana, Davao Oriental		10,600,000
	14.	Port of Iloilo, Iloilo City		12,800,000
	15.	Port of Bicobian, Isabela		14,400,000
	16.	Port of Tandulsog, Jolo, Sulu		38,000,000
	17.	Port of Pulupandan, Negros Occidental		13,900,000
	18.	Port of Ozamis, Misamis Occidental		11,400,000
	19.	Port of Dumaguete, Negros Oriental		12,900,000
	20.	Port of Puerto Princesa, Palawan		13,900,000
	21.	Port of Mariveles, Bataan		10,000,000
	22.	Port of Puluan, Dapitan City		10,000,000
	23.	Port of Basilan, Zamboanga del Sur		11,700,000
	24.	Various National Ports		255,776,000
				----------------
		Total for National Ports		P1,217,961,000
				===========
	25.	Various Municipal Ports		36,869,000
	26.	Lighthouses and Other Maritime Navigation Facilities		25,000,000
				----------------
		Total for Portworks and Maritime Navigation		P1,279,830,000
				===========
(e)	Telecommunications
	1.	Telegraphic Transfer Services Improvement		P 30,000,000
	2.	Municipal Telephone Systems		42,000,000
	3.	Telecommunications Maintenance Centers (Regional and Provincial)		48,500,000
				---------------
		Total for Telecommunications		P120,500,000
				==========
		TOTAL FOR TRANSPORTATION AND COMMUNICATIONS		P9,841,403,000
				============
TITLE B - WATER RESOURCES DEVELOPMENT
1. For the construction, improvement, rehabilitation, reconstruction, completion, including project preparation and the purchase of necessary construction materials and supplies of the projects listed/summarized hereunder:
(a)	Irrigation
	1.	Aurora-Peñaranda Basin Diversion Scheme		P 228,000,000
	2.	Tarlac Irrigation Systems Improvement Project		139,000,000
	3.	Angat-Magat Integrated Agricultural Development Project		95,436,000
	4.	Davao del Norte Irrigation Project (Saug-Compostela)		21,900,000
	5.	Agusan del Sur Irrigation Project (Bunawan-Salvacion)		44,400,000
	6.	Pulangui River (Valencia) Bukidnon		55,060,000
	7.	Upper Pampanga River Project, Watershed Development Pilot Project		10,000,000
	8.	Casecnan Trans-Basin Development Project		20,000,000
	9.	Lower Agno Irrigation Project, Pangasinan		12,000,000
	10.	Various National Irrigation Projects		295,765,000
	11.	Various Communal Irrigation Projects		70,000,000
	12.	Pump Irrigation Projects		50,000,000
	13.	Irrigation-Electrification Projects		30,000,000
	14.	Mindoro Integrated Development Irrigation Projects		71,500,000
	15.	Bicol River Basin Development Irrigation Projects		78,000,000
	16.	Zamboanga Integrated Development Irrigation Projects		30,000,000
	17.	Groundwater Development Project		70,710,00
				-----------------
			Total for Irrigation	P1,321,771,000
				===========
(b)	Water Supply
	1.	Various Artesian Wells and Springs		P 90,959,000
	2.	Various Waterworks		78,729,000
				---------------
			Total for Water Supply	P 169,688,000 ==========
(c)	Flood Control and Drainage
	1.	Agno River Control, Pangasinan		P 108,100,000
	2.	Asingan-San Manuel Levee with Closure of the Chico River, Agno River Control, Pangasinan		17,000,000
	3.	Abelong and Angalacan River Control, Pangasinan		14,500,000
	4.	Magat River Control, Nueva Vizcaya, Isabela and Cagayan		800,000,000
	5.	Pampanga River Control, Pampanga, Bulacan and Nueva Ecija		118,580,000
	6.	Gumain-Porac River Control, Pampanga		15,642,000
	7.	Pasig-Potrero River Control, Pampanga		41,500,000
	8.	Labangan Floodway, Bulacan		12,500,000
	9.	San Fernando-Abacan River Control, Pampanga		38,500,000
	10.	Parua River Control, Tarlac		39,000,000
	11.	Rio Chico River Control, Pampanga and Nueva Ecija		54,900,000
	12.	Manila and Suburbs River Control, Manila and Suburbs		2,273,500,000
	13.	Mangahan Floodway, Rizal		180,000,000
	14.	Magasawang Tubig River Control, Oriental Mindoro		12,000,000
	15.	Bicol River Control, Camarines Sur		45,950,000
	16.	Ilog-Hilabangan River Control, Negros Occidental		64,344,000
	17.	Panay River Control, Capiz and Roxas City		28,100,000
	18.	Samar-Leyte Schistosomiasis Control Project		10,000,000
	19.	Maranding River Control, Lanao del Norte		10,200,000
	20.	Agusan River Control, Butuan City and Agusan		73,000,000
	21.	Davao River Control, Davao City		10,520,000
	22.	Cotabato River Control, Cotabato		194,350,000
	23.	Pampanga, Bicol and Cotabato Dredging Project		54,000,000
	24.	Various River and Flood Control Projects		236,856,000
				----------------
			Total for River Control and Drainage	P4,453,042,00 ===========
		TOTAL FOR WATER RESOURCES DEVELOPMENT		P5,944,501,000 ============
TITLE C - BUILDINGS
1. For the construction, improvement, rehabilitation, reconstruction, completion, including project preparation and the purchase of necessary construction materials and supplies, of the projects listed/summarized hereunder:
(a)	National and Related Buildings
	1.	Philippine College of Arts and Trades Building, Manila		P 16,330,000
	2.	Bureau of Posts Building, Manila and Provincial Branches		11,400,000
	3.	Department of Education and Culture Building		52,000,000
	4.	Philippine College of Commerce Building, Manila		24,400,000
	5.	Department of Public Works, Transportation and Communications Building, Quezon City		50,000,000
	6.	Bureau of Lands Building		45,000,000
	7.	Weather Bureau Building, Quezon City		13,200,000
	8.	Bureau of Soils Building, Quezon City		25,000,000
	9.	Bureau of Animal Industry Building, Quezon City		10,000,000
	10.	Philippine Fisheries Commission Building, Quezon City		10,000,000
	11.	University of the Philippines, Diliman, Quezon City and Los Baños, Laguna
		a. Academic Buildings, Diliman and Los Baños		62,400,000
		b. Campus Utilities and Ground, Diliman and Los Banos		31,085,000
		c. Ancillary Facilities, Diliman and Los Banos		16,100,000
		d. Other Projects		23,720,000
	12.	Department of Labor Building, Quezon City		45,000,000
	13.	Department of Social Welfare Building		15,500,000
	14.	National Economic and Development Authority Building		30,000,000
	15.	Department of Trade Building, Quezon City		50,000,000
	16.	Central Mindanao State University Building, Bukidnon		20,915,000
	17.	Mindanao State University Building, Marawi City		14,110,000
	18.	Children's Educational Foundation Building, Villa, Cotabato		12,025,000
	19.	Local Government Regional Training Center Buildings		15,000,000
	20.	Department of Natural Resources Building, Quezon City		45,000,000
	21.	Various National Buildings		269,474,000 ----------------
		Total for National Buildings		P 907,659,000 ===========
(b)	Hospitals and Sanitaria
	1.	Jose Reyes Hospital, Manila		P 11,400,000
	2.	Dr. Jose Fabella Memorial Hospital, Manila		11,600,000
	3.	Philippine General Hospital, Manila		10,650,000
	4.	National Cancer Center Building, Manila		14,000,000
	5.	Various Hospitals & Related Buildings		269,414,000 ----------------
		Total for Hospitals and Sanitaria		P 317,064,000 ===========
(c)	Elementary School Buildings			P 600,000,000
(d)	Secondary School Buildings			100,000,000
(e)	Other Public Buildings and Miscellaneous Public Works			100,000,000 -----------------
		TOTAL FOR BUILDINGS		P2,024,723,000 ============
TITLE D - SHORE PROTECTION
1. For the construction, improvement, rehabilita-tion, reconstruction, completion, including project preparation and the purchase of necessary construction materials and supplies of the projects summarized hereunder:
(a)	Various Sea Walls			P 23,665,000 ---------------
	Total for Section I			P17, 834, 292 ,000 ==============

SECTION 2. Miscellaneous Projects.- The following sums, or so much thereof as may be necessary are hereby appropriated, out of the general funds in the national treasury not otherwise appropriated, subject to the provisions hereinafter set forth, for the purpose mentioned hereunder:

a)	For the maintenance and/or repair of public buildings, shrines, and monuments, including ground and outside installations: Provided, That, so much as may be necessary but not to exceed P1,000,000 of this sum shall be made available for Malacanang buildings and Mansion and Guest Houses in Baguio: Provided, further, that P100,000 of this sum shall be made available for the maintenance of the Mabini Shrine in Tanauan, Batangas, including the salaries of the two caretakers of the Shrine who shall be the two nearest surviving kins of Apolinario Mabini		P 30,000,000
b)	For the maintenance and emergency repair of existing flood control and drainage structures		P 10,000,000
c)	For the prosecution of pre-investment studies, regional planning, project pre-feasibility and feasibility studies, preliminary engineering and other activities necessary prior to actual project implementation, including administrative services and training directly identified with the studies and purchase of equipment, materials, and supplies as may be authorized by the National Economic and Development Authority upon recommendation of department heads concerned		P 100,000,000
d)	For the prosecution of necessary detailed engineering of projects authorized in this and other public works measures, including detailed surveys, soils investigation, detailed designs, preparation of specifications and contract documents and other related activities that are necessary prior to actual construction, as may be authorized by the National Economic and Development Authority upon recommendation of department heads concerned		P 50,000,000
e)	For the purchase of necessary rights-of-way for the implementation of projects authorized in this and other public works measures as may be authorized by the National Economic and Development Authority upon recommendation of department heads concerned		P 100,000,000
f)	For water resources investigations, survey and studies, establishment of recording stream gaging stations of various rivers including publication, and preparation of water Atlas for the Philippines to be undertaken by the National Water Resources Council		P 13,000,000
g)	For the construction of warehousing facilities necessary for the implementation of programs of the National Grains Authority and other governmental agencies		P 100,000,000
h)	For the implementation of the Philippine Australian Development Assistance Program		P 100,000,000
			----------------
		Total for Section 2	P 503,000,000 ===========

SPECIAL PROVISIONS

SECTION 3. Program of Work Required Before Prosecuting Public Works. - Before prosecuting any public works project, the district, city or project engineer concerned shall prepare a program of work for approval by the Department Head concerned for any project with an estimated cost of more than P500,000; by the Bureau Head concerned for any project with an estimated cost of more than P200,000 but not more than P500,000; by the Regional Director concerned for any project with an estimated cost of more than P50,000 but not more than P200,000; and by the District or City Engineer concerned for any project with an estimated cost of P50,000 or less. In no case shall construction funds be remitted to field offices or construction work on a project be started before the program of work is approved.

No program of work for any project which requires special site investigation, survey, and construction plans shall be approved unless such plans are used as basis of the program: Provided, That for projects with an estimated cost of Pl00,000 or more, the PERT/CPM technique shall be used and a time-scaled diagram of the activities as well as a monthly cash flow shall be made part of the program of work. The PERT/CPM diagram shall be used by the agency concerned as a basis for, inter alia, monitoring the progress of work, making progress payments, and assessing claims for extra cost and time extension.

The program of work for any project shall not be amended except in case of unforseen contingencies or any change in field conditions or other similar circumstances in which case an amendment may be allowed provided that such amendment will not result in a deficiency of the expected accomplishment in excess of fifteen per centum thereof and an extension of project duration beyond a reasonable period.

SECTION 4. Rental of Equipment. - Rental of equipment shall not be deducted at the time of the release of funds, for public works or even in anticipation of use of the equipment but shall be paid based on actual use when the appropriation so released is P25,000 or less. When the appropriation so released is above P25,000 and use of rented equipment is anticipated, deduction for rental shall be made at the time of the release of funds but such deduction shall not exceed ten per centum of the released appropriation: Provided, That, should the amount so deducted be in excess of actual rental, the balance of such deduction should be remitted immediately to the district or city engineering office concerned.

SECTION 5. Preference to Local Labor. - In the execution and construction of any public works project, the labor requirements shall be filled by laborers from the sitio, barrio, poblacion or municipality where the project is being undertaken. However, in case of skilled labor it may be procured elsewhere within the province where the project is located; and in the case of specialized skilled labor, it may be procured outside the province where the project is located.

SECTION 6. Labor - Intensive Methods. - Whenever technically practicable and economically feasible, labor-intensive methods may be used in the prosecution of public works projects or portions thereof authorized in this Decree and other Public Works measures; Provided, That the structural integrity of the project is not impaired and its financial cost does not increase by more than ten (10%) per centum over that involved in alternative normal equipment-intensive construction technique as defined by the agency concerned: Provided, Further, That the employment of workers for the labor-intensive operations will not unduly impair the labor requirements for agricultural production. Before any such project is prosecuted, the agency concerned shall prepare at least two alternative methods of construction based on the same plans and structural standards, one being labor-intensive, together with a comparative evaluation of projected financial and economic costs, employment generation, and technical quality; such comparison shall be the basis for selecting the most advantageous construction technique to be employed in terms of the criteria in the preceding sentence.

The selected construction technique shall be made part and the basis of the program of work which shall be subject to approval by the officials concerned in accordance with the provisions of Section 3 of this Decree.

The purchase of hand tools and other work implements for undertaking public works projects by labor-intensive technique is authorized to be charged against the project funds not to exceed five (5%) per centum of the estimated project cost; Provided, That the agencies concerned shall undertake a continuing inventory of such hand tools and other work implements and make full economic use thereof in different projects.

The agencies concerned shall refer to the relevant studies of the Department of Public Works, Transportation and Communications and the International Labor Organization for the identification of project work items or activities suitable for labor-intensive methods of construction.

SECTION 7. Pre-Construction Activities. - In the implementation of the work, a general plan of operations shall be prepared to indicate the methods and procedures to be followed. This plan will cover and organize all relevant fields of study, delineation of responsibilities for undertaking each phase, specifying all analytical procedures and resources to be required for conducting the studies: Provided, That the appropriation shall include administrative services directly identified with the studies and purchase of equipment, materials, and supplies.

SECTION 8. Use of Private Consulting Services. - For any public works project with an estimated cost of P200,000 or more, the Department Head concerned may hire the services of Filipino or associated Filipino and foreign consultants or consulting firms whenever available, for a fee not exceeding two and one half per centum (2-1/2%) of the estimated cost for the review of the project or plans and specifications devised by the bureau or office concerned, and/or for a fee not exceeding nine per centum (9%) of the estimated total project cost to undertake the detailed design, including plans and specifications, and/or construction, supervision of the project; Provided, That the participation of Filipino consultants and/or government implementing agency concerned in any joint venture of foreign and local agencies shall be maximized.

SECTION 9. - Purchase of Sites. - Any appropriation herein authorized for construction of any project shall be understood to include the acquisition or purchase of sites whenever such acquisition or purchase is necessary for the prosecution of the project.

SECTION 10. - Prosecution of Public Works Projects by Administration. - The provisions of any law, rules or regulation to the contrary notwithstanding and irrespective of the source of funds, all public works projects with a cost of Two Hundred Thousand Pesos (P200,000) or less may be done by administration by the bureau or agency concerned without benefit of public bidding subject to the provisions of Section 5 and Section 6 thereof. Public works projects with a cost of more than Two Hundred Thousand Pesos (P200,000) shall, after public bidding, be awarded by contract. If there are no acceptable bids for the project, or the bids are higher by more than ten per centum (10%) over the government estimate, the project may be prosecuted by administration by the bureau or agency concerned after securing the approval of the Department Head. In case of urgent necessity or emergency, projects costing more than P200,000 may be prosecuted by administration without benefit of public bidding upon representation by the bureau or agency concerned, subject to favorable recommendation of the Department Head and approval by the President of the Philippines.

SECTION 11. - Purchase of Materials and Supplies. -The Department Head concerned is authorized, in the interest of public service, subject to bidding and auditing requirements, to procure the necessary materials and supplies, needed for the construction, reconstruction, improvement, repair and/or maintenance of any public works project, regardless of the source of funds; Provided, That, when such materials and supplies are obtainable locally in the district, city or neighboring districts, the same may be procured by the District or City Engineer without prior authority from the Department Head; Provided, further, that, no surcharge shall be imposed for the service of procuring such materials and supplies; Provided, furthermore, that the cost of such materials and supplies shall not exceed the estimated cost of such materials and supplies stated in the approved program of work as provided under Section 3 hereof.

SECTION 12. - Engineering Surcharge and Other Overhead Expenses. - No national surcharge shall be collected from the appropriation or expenditures authorized for any category of public work and all surcharges to be collected by the district or city engineering office for administrative overhead and engineering expenses, including the compensation and travel expenses and all other deductions shall not exceed ten per centum of expenditures or appropriation for any public works project, so that ninety per centum of said appropriation shall be expended directly for the project: Provided, That nine per centum of said expenditures shall accrue to the district or city engineering office and one per cent shall accrue to the regional engineering offices concerned: Provided, further, That such surcharges shall be under the custody of the disbursing officers of the said engineering offices: Provided, finally, That such surcharges may be used for the purchase of motor vehicles and equipment.

SECTION 13. - National Disbursing Funds. - Any provisions of existing law to the contrary notwithstanding, all funds appropriated under the provisions of this Decree shall, when released, be carried in the account books of the treasurers or special disbursing officers as national disbursing funds and all projects herein specified are classified as national projects: Provided, That, provincial fund allocated as counterpart shall not be considered as national fund.

SECTION 14. - Interchangeability of Financing Methods. - Upon the recommendation of the Secretary of Finance and the National Economic and Development Authority, the President of the Philippines is authorized to modify the financing methods indicated in this and previous Public Works Measures, so as to enable the department head concerned to undertake the projects financed from general revenue with the proceeds from the sale of bonds and/or from loans.

SECTION 15. - Other Financing Methods. - The provisions of existing laws, executive orders, rules and regulations to the contrary notwithstanding, the proceeds from the payment for reparations goods may be used for financing projects authorized in this Decree and other Public Works Measures, including the purchase of necessary equipment, construction materials and supplies.

SECTION 16. - Unreleased Appropriations. - All unreleased appropriations in Republic Acts Numbered Forty Eight Hundred Fifty Four, Fifty One Hundred Eighty Seven, and Fifty Nine Hundred Seventy Nine are hereby repealed.

SECTION 17. - Reports. - The Department Head concerned shall submit an annual accomplishment report to the President, copy of which shall be furnished the National Economic and Development Authority. Such report shall include the appropriations released as of the end of the fiscal year, the extent of work accomplished, further work to be done to complete the program of broad categories of public works and recommendations if any, for transfer of appropriations or for program changes to be incorporated in the next Public Works Appropriations Measure.

SECTION 18. - Effectivity. - This Decree shall take effect immediately.

Done in the City of Manila, this 31st day of July, in the year of our Lord, Nineteen Hundred and Seventy Five.