WHEREAS, Administrative Order (A.O.) No. 267, s. 1996, created the Multi-Sectoral/Agency Committee which formulated the National Action Agenda for Productivity (NAAP) to complement the National Development Plan and serve as a comprehensive strategy for productivity improvement;

WHEREAS, Executive Order (E.O.) No. 395, s. 1997, approved and adopted the NAAP and created the Philippine Council for Productivity (PCP) to ensure a unified effort on productivity improvement and accelerate the country ™s over-all development;

WHEREAS, A.O. No. 325, s. 1997, which constituted the Regional Productivity Committees (RPCs) only covers regions which have Regional Development Councils (RDCs), thereby excluding the National Capital Region (NCR), the Cordillera Administrative Region (CAR) and the Autonomous Region of Muslim Mindanao (ARMM);

WHEREAS, there is a need to unify the efforts in all regions towards improving productivity and therefore should encompass the NCR, CAR, and ARMM;

NOW, THEREFORE, I, JOSEPH E. ESTRADA, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby amend Administrative Order No. 325, Series of 1997 and order:

Section 1. Constitution of Regional Productivity Committees. There shall be constituted a Regional Productivity Committee in each region to be organized by the respective Regional Development Councils. There shall also be constituted an RPC in the NCR, CAR and ARMM to be organized and supervised by the Metro Manila Council (MMC), the Cordillera Executive Board (CEB), and the Regional Planning and Development Board (RPDB); respectively.

Section 2. Composition of the Regional Productivity Committees. The Regional Productivity Committee, herein referred to as RPC, in each regular region shall be chaired by the Regional Director of the National Economic and Development Authority (NEDA). In the case of NCR, CAR, and ARMM, the RPC Chairperson shall be chosen from the government sector by the members of the MMC, CEB, and RPDB.

The RPC Chairperson shall appoint two (2) Vice-Chairpersons from the private sector. One of the Vice-Chairpersons shall be from the labor sector, to be nominated by the Department of Labor and Employment Regional Director or Regional Secretary, in the case of ARMM. The other Vice-Chairperson shall represent the business sector, to be nominated by the Regional Director or Regional Secretary (in the case of ARMM) of the Department of Trade and Industry.

The RPC membership shall be composed of and/or patterned after, but not limited to, the agencies and organizations identified in Section 2 of AO No. 325.

The NEDA Regional Offices shall provide technical and administrative support to the RPCs, in cooperation with the DOLE-RTWPB, DTI, DILG, and DAP. The Planning Office of the Metro Manila Development Authority (MMDA), the NEDA-CAR, and the Regional Planning and Development Office (RPDO), shall provide secretariat and technical support to the RPCs in NCR, CAR and ARMM, respectively.

Section 3. Functions of the Regional Productivity Committees. The functions of each RPC, as determined in Section 3 of AO No. 325 shall be adopted. However, No. 4 of Section 3 is hereby amended to read as follows:

œ4) Review and endorse the Regional Action Agenda for Productivity to the RDC, the MMC in the case of NCR, the CEB in the case of CAR, and RPDB in the case of ARMM. 

Section 4. Role of the RDC , MMC , CEB, and RPDB. The RDCs shall provide supervision and guidance to the RPCs as part of their functions provided for under Executive Order No. 325, s. 1996. The MMC, CEB, and the RPDB shall provide supervision and guidance to the RPCs, consistent with their mandates under R.A. 7924, s. 1994; E.O. 220, s. 1987; and R.A.6734, s. 1989, respectively.

Section 5. Funding. Funds necessary for the operations of each of the RPCs shall be incorporated in the annual budget of the respective NEDA regional offices, the MMDA, and the RPDO.

Section 6. Effectivity. This Administrative Order shall take effect immediately.

DONE in the City of Manila, this 21^th day of AUGUST, in the year of our Lord, Nineteen Hundred and Ninety Eight.

(Sgd.) JOSEPH EJERCITO ESTRADA
President of the Philippines

By the President:
(Sgd.) RONALDO B. ZAMORA
Executive Secretary