WHEREAS, the government has declared it a national policy to achieve an equitable distribution of socio-economic opportunities in the country to, among others, curb the alarming migration rate;

WHEREAS, the National Coordinating Council for Town Planning, Housing and Zoning created under Letter of Instructions No. 511 has effected the preparation and development of town plans, housing and zoning measures including the formulation of interim development controls, identifying thereby in each town the feasible program and projects that will permit and spur socio-economic development;

WHEREAS, Presidential Decree No. 1396 empowers the President to declare areas for development as Bagong Lipunan sites;

WHEREAS, the development of Bagong Lipunan sites into model human settlements requires full integration and implementation of the eleven (11) basic human needs identified by the Ministry of Human Settlements;

WHEREAS, this full integration necessitates budgetary innovation and judicious reallocation of financial resources;

WHEREAS, there is a need to develop demonstration settlements which shall illustrate to surrounding communities the benefits of the human settlements approach to community building;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President and Prime Minister of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order:

1. The adoption of the Bagong Lipunan Sites and Services Program of the Ministry of Human Settlements as a major component of the development strategy of the government which shall include:

a. Selection and development of depressed communities according to the following classification:

i. Neighborhood Community of 50-100 families living in an area of at least 2.5 hectares, for each of 1,600 towns and cities.

ii. Agro-Industrial Community of 100-500 families living in an area of 50-200 hectares, for each of 77 provinces.

iii. Water-shed Based Ecological Community of 500 or more families situated in a watershed area of at least 500 hectares, for each region of the country.

b. Coordination of programs and projects of the National Local Governments in declared Bagong Lipunan sites to effect

i. Provision of eleven (11) basic human needs; and

ii. Institutional development

2. The creation of a Cabinet Committee for Bagong Lipunan Sites and Services to plan and implement the program with the Minister of Human Settlements as Chairperson and the following as members: Minister of Planning, Minister of Agriculture, Minister of the Budget, Minister of Education and Culture, Minister of Energy, Minister of Health, Minister of Industry, Minister of Labor, Minister of Local Government and Community Development, Minister of National Defense, Minister of Natural Resources, Minister of Public Works, Transportation and Communications, and Minister of Trade.

3. The Cabinet Committee shall be assisted by the Ministry of Human Settlements as Program Secretariat with the MHS Deputy Minister as Secretary General. The Program Secretariat shall (i) rationalize the affected programs of the MHS and its attached agencies including the Slum Improvement and Resettlement Program of NHA and those of the National Resource Experts in the identified sites; (ii) utilize the National Resource Experts of the MHS in the implementation of the various projects under this program; and (iii) in coordination with the Ministry of Finance and the Ministry of the Budget identify and source external sources of funds to finance major components of the program.

4. The Ministry of the Budget shall

i. release in CY 1979 to the Ministry of Human Settlements as Program Secretariat the amount of five million pesos (P5,000,000.00) for the administration of the program;

ii. program and release for the Ministry of Human Settlements, P1 million for each of the 1,600 towns and cities to implement the neighborhood community approach upon request of the Minister of Human Settlements and upon approval by the President; Provided that fund release shall be in accordance with the program targets and annual funds flow approved by the President; and

iii. identify fund sources, both internal and external, to finance the Agro-industrial and Water-shed Based Community; provided that if funds identified are within the operational jurisdiction of a Ministry or Agency of the government, such Ministry or Agency shall be responsible for project implementation under the overall supervision of the Cabinet Committee;

5. The Cabinet Committee shall submit regular reports to the President and Prime Minister on the progress of the program implementation.

DONE in the City of Manila, this 9th day of January, in the year of Our Lord, nineteen hundred and seventy-nine.


By the President:

(SGD.) JACOBO C. CLAVE
Presidential Executive Assistant