WHEREAS , it is the policy of this National or Central Government to devolved as far as practicable, and consistent with the Constitution and RA 6734 as amended by RA 9054, powers and functions of national government agencies to the Autonomous Regional Government (ARG) of the Autonomous Region in Muslim Mindanao (ARMM);

WHEREAS , the ARMM is one of the poorest regions, if not the poorest region, in the country;

WHEREAS , Official Development Assistance (ODA) is one of the sources of funding for programs and projects, and therefore the same may be tapped to hasten the socio-economic development of ARMM; and

WHEREAS , it is the policy of this Administration that programs and projects funded by ODA specifically intended for ARMM shall be implemented by the ARG, and in case of ODA program and/or projects implemented on a nationwide basis but with an ARMM component, the latter shall also be implemented by the ARG.

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. Section 1 of Executive Order No. 125 is hereby amended to read as follows:

œSECTION 1. Devolution of Locally Funded Programs and Projects to ARMM . - Locally funded programs and projects being undertaken and programmed to be implemented within the ARMM are hereby devolved to and heretofore to be implemented by the ARG of the ARMM, except:

(a) When Congress provides in the General Appropriations Act or special law which government agency shall implement a particular program or project, or

(b) When in the judgment of the ARMM Regional Governor, the ARG does not have the capacity to implement the program and/or project, in which case he may request a national agency to implement the same. 

Section 2. Section 8 of Executive Order No. 25 is hereby amended to read as follows:

œSECTION 8. Effectivity . - This Executive Order shall take effect immediately, except for Section 1 hereof, which shall take effect starting January 1, 2003. 

SEC. 3. Section 2 of Executive Order No. 2 is hereby transferred as part of the Whereas Clause hereof.

SEC. 4. The Secretary of Budget and Management shall issue the necessary rules and regulations to implement this Executive Order.

SEC. 5. This Executive Order amends Executive Order No. 125.

SEC. 6. Except as herein provided, this Executive Order shall take effect immediately.

DONE in the City of Manila, this 29th day of November, in the year of Our Lord, two thousand and two.

(SGD.) GLORIA MACAPAGAL-ARROYO

By the President:

(SGD.) ALBERTO G. ROMULO
Executive Secretary