WHEREAS, the National Information Technology Plan for the 21 st Century, or IT21 envisions the Philippines to become a Knowledge Center in Asia by the first decade of the 21st Century;

WHEREAS, to realize this vision there is need to leverage the country ™s competitive advantage and further build on the momentum gained over the past years on harnessing and exploiting the full potentials of information technology (IT) as a strategic tool and a development strategy for greater productivity and economic growth;

WHEREAS , there is an urgent need to strengthen the institutional mechanism to effectively mobilize and coordinate the individual and collective resources and talents of all sectors concerned in the pursuit of this vision;

WHEREAS , the National Information Technology Council (NITC), created pursuant to Executive Order No. 190, dated 19 July 1994, and reorganized pursuant to Executive Order No. 469, dated 23 February 1998, as the highest planning and policy advisory body on IT matters, needs a dynamic and effective executive agency to meet its technical support services requirements in the performance of its functions;

WHEREAS , the National Computer Center (NCC), which was created pursuant to EO No. 322 (s. 1971), as amended by PD No. 1480 (s. 1987), serves as the technical arm of the NITC;

WHEREAS , EO Nos. 34, 35, and 37, all dated 26 October 1998, provided for the restructuring of the NCC and redefinition of its powers and functions;

WHEREAS , there is need to revitalize the NCC to enable it to better perform its mandate;

WHEREAS , under Section 77 of the General Provisions of Republic Act No. 8745 (FY 1999 General Appropriations Act), the President may direct changes in the organization and key positions in any department, bureau or agency;

WHEREAS , Section 79 of the General Provisions of the same Act, directs heads of departments, bureaus, and agencies to scale down, phase out or abolish activities no longer essential in the delivery of public services, and provides that savings generated from the abolition, phasing out or scaling down of unnecessary activities may be used by the departments, bureaus and agencies concerned for the augmentation of their respective programs, projects, and activities;

WHEREAS , pursuant to EO 292 (Administrative Code of 1987), the President shall have continuing authority to reorganize the administrative structure of the Office of the President;

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA , President of the Philippines, by virtue of the powers vested in me by law, do hereby order the following;

SECTION 1. Declaration of Policy. It is hereby declared the policy of government in furtherance of national development, to create the appropriate policy and institutional environment to rationalize and accelerate the use, application, and exploitation of IT as a productivity tool and as development strategy for modernization and economic development.

SECTION 2. Lead Institutional Mechanism for IT. The National Information Technology Council (NITC) shall remain as the government ™s highest planning and policy advisory body on IT matters as provided in EO No. 469 (s. 1998). In the performance of its functions, the NITC can call on its members and the other departments and agencies of government to provide such support and resources as may be needed or required. The NITC may organize, on a need basis, sectoral and industry task forces, consisting of professionals/specialists from IT and other key sectors, disciplines, to assist in coordinating and overseeing the implementation of IT21 and its successors plans.

SECTION 3. Functions of the National Computer Center (NCC). The NCC shall provide technical and professional support to the NITC. Pursuant to EO No. 322 (s. 1971), as amended by PD 1480 (s. 1978), it shall have the following powers and functions:

(1) Undertake, in support of the NITC ™s planning and policy advisory functions, a periodic review of the National Information Technology Plan for the 21s t Century or IT21, in coordination with appropriate bodies and agencies of government and the private sector, to ensure that the policy recommendations, strategies, programs and projects under IT21 are constantly updated and are consistent with national development priorities and requirements;

(2) Promulgate, subject to the approval of the NITC, such policies, programs and projects that will set the overall strategy and direction to fully harness and exploit IT for economic and social development, especially in addressing the needs of the poor sectors of the society;

Carry out, in cooperation with industry and other government agencies, focused policy and technological reviews, studies, as well as research and development (R&D) projects, to accelerate the development of the local IT and allied industries;

Facilitate the development and implementation of a government information systems plan (GISP), as approved by the NITC, to accelerate the application of electronic governance in the country for greater productivity, wider public access to information and faster delivery of basic services;

(5) Develop and promulgate, subject to the approval of the NITC, minimum standards and benchmarks for computerization and other IT-related activities in government;

(6) Review and approve proposed Information Systems Plans (ISPs) of national government agencies, government-owned and controlled corporations, state universities and colleges, and government financial institutions. Such Plans shall be deemed approve if NCC does not respond within one (1) month from date of receipt;

(7) Provide, as requested or upon instructions of the President or the NITC, IT consultancy and other related services to other government agencies, institutions, including government-owned and controlled corporations and local government units;

(8) Conduct a periodic information systems survey to foster a well coordinated and integrated development, implementation and management of computer-based information systems and networks in government;

Assist, as requested, government departments and agencies concerned in the review and design of IT education and training curricula in the country to ensure a globally competitive human resource base for the sustainability of the country ™s knowledge-based industries, as envisioned in IT21;

Develop and implement a continuing national IT promotion program to drum up wider public awareness and understanding of the national plan and vision, programs, projects and activities; and

(11) Perform such other functions as may be needed or required.

SECTION 4. NCC Organizational and Operational Strengthening. The NCC shall be strengthened to carry out the above mandates and functions effectively. The NCC organizational and operational strengthening shall be implemented primarily through:

(1) Setting-up of sectoral and industry desks to work in tandem with the sectoral and industry task forces of the NITC. The sectoral and industry desks shall:

a Formulate IT policies and programs pertaining to their sector for recommendation to the NITC;

b Monitor and analyze key technology trends and developments needed for strategic planning and industry positioning;

c Facilitate and provide needed technical support to departments, agencies, or local government units concerned, in the development and implementation of NITC-approved flagship projects;

d Assist government agencies and local government units, as well as selected private sector entities, in carrying out specific IT projects in support of the government ™s computerization efforts; and

e. Provide technical support to the NITC or its sectoral and industry task forces, as needed.

(2) Instituting an arrangement with the private sector whereby the use of the National Computer Institute and the Philippine Software Development Institute as training and software development facilities for IT will be optimized.

SECTION 5. Modifications of the NCC Organization Structure and Staffing Pattern. The Head of the NCC shall submit to the Department of Budget and Management (DBM) for approval, the proposed modifications in its organization structure and staffing pattern. The DBM is hereby authorized to upgrade organization units and create key positions to enable the NCC to effectively perform its mandate and functions.

SECTION 6. Redeployment of Personnel. The existing personnel of the NCC shall be redeployed as may be necessary in accordance with the requirements of the revised reorganization structure and staffing pattern, subject to civil service rules and regulations. Such redeployment shall, however, not result in the diminution in rank and compensation of affected personnel.

SECTION 7. Funding. The Financial resources for implementing the revised staffing pattern of the NCC and for operating expenses during the first year of its operation under the revitalized setup, as well as expenses for technical support to the NITC, shall be taken from funds available in the NCC. Additional funding requirements for the succeeding years may be integrated into the NCC ™s annual appropriations.

SECTION 8. Implementing Rules and Regulations. The NCC, in consultation with appropriate bodies and organizations in government and in the private sector, shall, through the NITC, promulgate the necessary implementing rules and regulations (IRRs) of this Executive Order within three months from date of issuance; Provided that the said IRR shall be periodically reviewed and updated in close consultation with the private sector, taking into account new trends, developments, priorities, and requirements in IT as may be determined by the NITC.

SECTION 9. Separability. Any portion or provision of this Executive Order that may be declared unconstitutional shall not have the effect of nullifying other portions or provisions hereon as long as such remaining positions can still subsist and be given effect in their entirety.

SECTION 10. Repealing Clause. Executive Order Nos. 34, 35, and 37, all dated 26 October 1998, are hereby repealed, and all other orders, directives, issuances, rules and regulations or parts thereof, inconsistent with the provisions of this Executive Order are hereby modified and/or amended accordingly.

It is understood that NGAs, GOCCs, SUCs, LGUs, and GFIs may hereafter, conduct their respective IT-related pre-qualification, bid and award functions.

SECTION 11. Effectivity. This Executive Order shall take effect upon the promulgation of its Implementing Rules and Regulations.

DONE, in the City of Manila, this 19th day of July, Nineteen Hundred and Ninety-Nine.

(SGD.) JOSEPH EJERCITO ESTRADA
President of the Philippines

By the President:

(SGD.) RONALDO B. ZAMORA
Executive Secretary