WHEREAS, under the New Republic, national economic development shall be pursued with renewed dedication and greater determination;

WHEREAS, the separation of the functions pertaining to public highways from those concerning public works had been prompted by the necessity of hastening the completion of the major road networks of the country;

WHEREAS, the construction of such major road networks having been completed for the most part, such government functions may now be merged once again for greater simplicity and economy in operations; and

WHEREAS, under Presidential Decree No. 1416 as amended, the President is empowered to undertake such organizational and related improvements as may be appropriate in the light of changing circumstances and new developments;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution and the authority vested in me by Presidential Decree No. 1416 as amended, do hereby order and ordain:

SECTION 1. There is hereby created a Ministry of Public Works and Highways, hereinafter referred to as the Ministry. The existing Ministry of Public Works established pursuant to Executive Order No. 546 as amended, and the existing Ministry of Public Highways established pursuant to Presidential Decree No. 458 as amended, are abolished together with their services, bureaus and similar agencies, regional offices, and all other entities within their supervision and control. Their functions, applicable appropriations, records, equipment, property, and such personnel as may be necessary are hereby transferred to the new Ministry.

SECTION 2. The authority and responsibility for the exercise of the powers and the discharge of the functions of the Ministry shall be vested in the Minister of Public Works and Highways, hereinafter referred to as the Minister, who shall be appointed by the President. He shall be assisted by such Deputy Ministers as may be necessary, who shall be appointed by the President. The Minister is authorized to determine and assign the respective functional areas of responsibility of the Deputy Ministers, should there be more than one; provided, that such delineation of responsibilities shall cover the substantive functions and operations of the Ministry; and provided, further, that no Deputy Minister shall be assigned primarily administrative responsibilities.

SECTION 3. The Ministry Proper of the Ministry shall be composed of an Office of the Minister, a Planning Service, a Financial and Management Service, an Administrative Service, a Legal Service, a Manpower Development Service, and a Comptrollership Service.

The Comptrollership Service shall absorb the abolished Infrastructure Computer Center.

SECTION 4. The Ministry shall exercise supervision and control over the following staff bureaus which are created in the Ministry:

(1) Bureau of Construction, which shall provide technical services on the construction, rehabilitation, betterment, and improvement of infrastructure facilities;

(2) Bureau of Design, which shall undertake project development, engineering surveys, and designs of infrastructure facilities;

(3) Bureau of Equipment, which shall provide technical services on the management of construction and maintenance equipment and ancillary facilities;

(4) Bureau of Maintenance, which shall provide technical services on the maintenance and repair of infrastructure facilities; and

(5) Bureau of Materials and Quality Control, which shall provide research and technical services on quality control and on the management of materials plants and ancillary facilities for the production and processing of construction materials.

SECTION 5. The Ministry shall exercise administrative supervision over the following entities:

(1) National Water Resources Council (2) Metro Manila Flood Control Development Council (3) Pasig River Development Council

SECTION 6. The following corporations are attached to the Ministry for policy and program coordination:

(1) Farm Systems Development Corporation (2) Local Water Utilities Administration (3) Metropolitan Waterworks and Sewerage System (4) National Irrigation Administration

SECTION 7. The Communications and Electricity Development Authority is attached to the Ministry of Energy for policy and program coordination.

The Philippine Ports Authority is attached to the Ministry of Transportation and Communications for policy and program coordination. The Minister of Transportation and Communications shall be Chairman and the Minister of Public Works and Highways a member of the Board of the Authority.

The Central Luzon-Cagayan Valley Authority is abolished, and its functions, applicable appropriations, records, equipment, property, and such personnel as may be necessary are transferred to the appropriate units of the Ministry, as may be determined by the Minister.

The functions of the Building Services and Real Property Management Office of the General Services Administration pertaining to the maintenance and repair of public buildings are hereby transferred to the appropriate units of the Ministry, including applicable appropriations, records, equipment, property, and such personnel as may be necessary.

SECTION 8. The Minister of Public Works and Highways shall assume the position of Chairman or member, as appropriate, of all boards or other bodies previously held by either the Minister of Public Works or the Minister of Public Highways in an ex-officio capacity.

SECTION 9. The Minister shall have such ministry-wide regional offices as may be necessary, under the supervision and control of the Office of the Minister, in accordance with Article I, Chapter III, Part II of the Integrated Reorganization Plan as amended. Each region shall be headed by a Regional Director, who shall exercise supervision and control over the activities of the Ministry in the region except as otherwise provided for below.

The Ministry shall have such Project Management Offices as may be required, pursuant to Letter of Instruction No. 1099, which shall be under the supervision and control of the appropriate Regional Director, unless otherwise determined by the Minister.

The Regional Director shall have administrative supervision over the equipment depots and materials plants in the region. Such depots and plants shall have separate managerial and accounting systems, and shall be operated as financially self-sustaining entities.

SECTION 10. The Ministry is hereby authorized to issue such orders, rules and regulations as may be necessary to implement the provisions of this Executive Order: provided, that approval of the Ministry of the Budget is obtained relative to the new staffing pattern including appropriate salary rates, the organizational structure at divisional and lower levels, and the realignment of existing appropriations. The Minister may appoint qualified personnel of the abolished Ministries to appropriate positions in the new Ministry, and those not so appointed are deemed laid off.

SECTION 11. All Presidential appointees of the abolished Ministries and their respective bureaus, offices, and other entities under the supervision and control of or under the administrative supervision of the abolished Ministries are laid off, unless otherwise reappointed by the President; provided, that those who are Career Executive Service Officers shall be reappointed or reassigned by the President upon the recommendation of the Minister to appropriate positions in the new Ministry, or assigned to the Career Executive Service Board who shall endeavor to find appropriate placement for them in other ministries or agencies; provided, further, that those Career Executive Service Officers who have been assigned to the Career Executive Service Board shall continue to receive their salaries from any available and applicable funds; and provided, finally, that those who are not placed in appropriate positions within six months after their assignment to the Career Executive Service shall be similarly laid off.

SECTION 12. All those who are laid off under the provisions of this Executive Order shall be entitled to all benefits and gratuities provided for under existing laws.

SECTION 13. Except as may otherwise be determined by the Minister, all present incumbents of positions in the abolished ministries shall continue to exercise their usual functions, duties, and responsibilities, pending the issuance of the appropriate implementing orders.

SECTION 14. All laws, decrees, orders, proclamations, rules, regulations, or parts thereof, which are inconsistent with any of the provisions of this Executive Order are hereby repealed or modified accordingly.

SECTION 15. Any portion or provision of this Executive Order that may be declared unconstitutional shall not have the effect of nullifying the other provisions thereof, provided that such remaining portions can still stand and be given effect in their entirety to accomplish the objectives of this Executive Order.

SECTION 16. This Executive Order shall take effect immediately.

Done in the City of Manila, this twenty-seventh day of July, in the year of Our Lord, nineteen hundred and eighty one.


By the President:

(SGD.) JUAN C. TUVERA
Presidential Executive Assistant