WHEREAS, the Provinces of Lanao del Norte, Maguindanao, Sulu and Tawi-Tawi comprise the Autonomous Region in Muslim Mindanao as a result of the plebiscite held on 19 November 1989;

WHEREAS, Article XIX, Section 10 of Republic Act No. 6734 provides that: "|T]he National Government shall, in addition to its regular annual allotment to the Autonomous Region, provide the Regional Government Two billion pesos (P2,000,000,000.00) as annual assistance for five (5) years, to fund infrastructure projects duly identified, endorsed and approved by the Regional Planning and Development Board herein created: Provided, however, That the annual assistance herein mentioned shall be appropriated and disbursed through a Public Works Act duly enacted by the Regional Assembly; Provided, further, That this annual assistance may be adjusted proportionately in accordance with the number of provinces and cities joining the Autonomous Region: and Provided, finally, That the national programs and projects in the Autonomous Region shall continue to be financed out of national funds";

WHEREAS, the Oversight Committee has deliberated on the proportionate adjustment of the annual assistance in accordance with the four provinces which voted favorably for its inclusion over the total proposed area of thirteen provinces as defined in Section 1, paragraph CD Article II of Republic Act No. 6734, and recommended a formula of 100% equal sharing among the four provinces upon which the adjustment is to be affected;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The annual assistance for infrastructure projects, based on the formula recommended by the Oversight Committee, shall be in the amount of Six hundred fifteen million (P615,000,000.00) starting fiscal year 1991 to 1995 in accordance with the requirements of Republic Act No. 6734.

SEC. 2. The Department of Budget and Management (DBM) is hereby ordered to incorporate Six hundred fifteen million pesos (P615,000,000.00) for the aforesaid annual assistance for infrastructure projects in the budget message of the President for five years, starting with fiscal year 1991, and issue the necessary guidelines for budgetary releases therefor.

SEC. 3. The Department of Budget and Management, in consultation with the Autonomous Regional Government, shall automatically adjust the amount of annual assistance in the event of accession by other provinces in Mindanao based on the aforecited formula.

SEC. 4. The Autonomous Regional Government may source additional financing for its infrastructure program, on a project proposal basis, from the official development assistance extended by the National Government within the jurisdiction of the Committee on Official Development Assistance subject to its rules and regulations.

SEC. 5. The Coordinating Council of the Philippine Assistance Program shall assist the Autonomous Regional Government in funding and formulating feasibility and other technical studies.

SEC. 6. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 12th day of October, in the year of our Lord, nineteen hundred and ninety.


By the President:

(Sgd.) CATALINO MACARAIG, JR.
Executive Secretary