Batas Pambansa No. 13

C. B. No. 11 / 75 OG No. 5, 858 (January 29, 1979)

[ BATAS PAMBANSA BLG. 13, December 22, 1978 ]

AN ACT APPROPRIATING FUNDS FOR PUBLIC WORKS AND HIGHWAY PROJECTS AND FOR OTHER PURPOSES.

Be it enacted by the Batasang Pambansa in session assembled:

SECTION 1. Appropriation of Funds.—The following: sums, or so much thereof as may be necessary, are hereby appropriated out of the General Fund in the National Treasury, including the proceeds of authorized bond issues and/or loans and grants from local or foreign institutions, to implement public works and highway projects of the National Government, as specified hereunder: Title A—TRANSPORT PROJECTS For the construction, improvement, rehabilitation, reconstruction, and/or completion of the following projects, including detailed engineering and acquisition of sites, equipment, materials, supplies, and services to be used directly for the projects:

(a) HIGHWAYS National Capital Region Manila South Diversion Road 1. ..........P20,000,000 Interchange ( Pasay City) Circumferential Road C-3 and Radial 2. ..........100,000,000 Road R-10 (Regionwide) Various local roads in support to 3. Regional Development Plans ...........50,000,000 (Regionwide) Various national roads and bridges 4. ...........80,000,000 (Regionwide) Road restoration and rehabilitation 5. ...........50,000,000 program (Regionwide) Region I Rosario-Laoag Road (La Union, 6. ..........100,000,000 Ilocos Sur and Ilocos Norte) Laoag-Allacapan Road (Ilocos 7. ...........50,000,000 Norte) Ilocos Norte Rural Development 8. ...........50,000,000 Project (Ilocos Norte) Luzon Road Package, Olongapo- 9. ...........50,000,000 Bugallon (Pangasinan) Various project roads in support to 10.Regional Development Plans ...........10,000,000 (Regionwide)11. Major bridges (Regionwide) ...........10,000,000 Various national roads and bridges 12. ...........15,000,000 (Regionwide) Road restoration and rehabilitation 13. ...........20,000,000 program (Regionwide) Region II 14.Ilagan-Palanan Road (Isabela) ............50,000,000 Chico Irrigation Project, road 15. ...........30,000,000 component (Isabela) 16.Laoag-Allacapan Road (Cagayan) ...........50,000,000 Various local roads in support to 17.Regional Development Plans ...........10,000,000 (Regionwide) 18.Major bridges (Regionwide) ...........10,000,000 19.Various national roads (Regionwide) ...........15,000,000 Road restoration and rehabilitation 20. ...........20,000,000 program (Regionwide) Region III Capaz-Botolan Road (Tarlac and 21. ...........50,000,000 Zambales) Luzon Road Package, Olongapo- 22. ...........80,000,000 Bugallon (Zambales) Various local roads In support to 23.Regional Development Plans ...........10,000,000 (Regionwide) 24.Major bridges (Regionwide) ...........10,000,000 25.Various national roads (Regionwide) ...........15,000,000 Road restoration and rehabilitation 26. ...........20,000,000 program (Regionwide) Region IV Mindoro Integrated Rural Development 27.Project, road component (Mindoro .......60,000,000 Oriental and Mindoro Occidental) Luzon Road Package, Tagaytay- 28.Batangas Road ( Tagaytay City and .......80,000,000 Batangas) Various local roads in support to 29.Regional Development Plans .......25,000,000 (Regionwide) 30.Major bridges (Regionwide) .......20,000,000 31.Various national roads (Regionwide) .......20,000,000 Road restoration and rehabilitation 32. .......30,000,000 program (Regionwide) Region VThird and Fourth IBRD Package 33. ...........30,000,000 (Albay) Various local roads in support to 34.Regional Development Plans ...........10,000,000 (Regionwide) 35.Major bridges (Regionwide) ...........10,000,000 36.Various national roads (Regionwide) ...........15,000,000 Road restoration and rehabilitation 37. ...........20,000,000 program (Regionwide) Secondary and feeder roads, Bicol 38. ...........80,000,000 River Basin (Camarines Sur) Region VI Third and Fourth IBRD Package ( 39.Iloilo, Capiz, Aklan and Negros ..........250,000,000 Occidental) Various local roads in support to 40.Regional Development Plans ...........20,000,000 (Regionwide) 41.Major bridges (Regionwide) ...........20,000,000 42.Various national roads (Regionwide) ...........25,000,000 Road restoration and rehabilitation 43. ...........20,000,000 program (Regionwide) Region VII Third and Fourth IBRD Package ( 44. ........P120,000,000 Cebu) Various local roads in support to 45.Regional Development Plans ...........10,000,000 (Regionwide) 46.Major bridges (Regionwide) ...........10,000,000 47.Various national roads (Regionwide) ...........15,000,000 Road restoration and rehabilitation 48. ...........20,000,000 program (Regionwide) Region VIII Samar Integrated Rural Development 49. .........200,000,000 Project, road component Various local roads in support to 50.Regional Development Plans ...........10,000,000 (Regionwide) 51.Major bridges (Regionwide) ...........10,000,000 52.Various national roads (Regionwide) ...........15,000,000 Road restoration and rehabilitation 53. ...........20,000,000 program (Regionwide) Palo-Carigara-Ormoc-Maasin Sogod 54. .........100,000,000 Road ( Leyte and Leyte del Sur)Region IX Various local roads in support to 55.Regional Development Plans ...........10,000,000 (Regionwide) 56.Major bridges (Regionwide) ...........10,000,000 57.Various national roads (Regionwide) ...........20,000,000 Road restoration and rehabilitation 58. ...........20,000,000 program (Regionwide) Region X Mindanao secondary and feeder roads 59.(Misamis Oriental and Agusan del .........100,000,000 Norte) Various local roads in support to 60.Regional Development Plans ...........10,000,000 (Regionwide) 61.Major bridges (Regionwide) ...........10,000,000 62.Various national roads (Regionwide) ...........15,000,000 Road restoration and rehabilitation 63. ...........20,000,000 program (Regionwide) Region XI Mindanao secondary and feeder roads 64. .........150,000,000 ( South Cotabato) Various local roads in support to 65.Regional Development Plans ...........10,000,000 (Regionwide) 66.Major bridges (Regionwide) ...........10,000,000 67.Various national roads (Regionwide) ...........15,000,000 Road restoration and rehabilitation 68. ...........20,000,000 program (Regionwide) Region XII Mindanao secondary and feeder roads 69. .........P45,000,000 (Sultan Kudarat) Various local roads in support to 70.Regional Development Plans ...........15,000,000 (Regionwide) 71.Major bridges (Regionwide) ...........15,000,000 72.Various national roads (Regionwide) ...........20,000,000 Road restoration and rehabilitation 73. ...........25,000,000 program (Regionwide) Nationwide 74.Major bridges ...........40,000,000Road restoration and rehabilitation 75. ...........80,000,000 program TOTAL FOR P 2,900,000,000 HIGHWAYS....................

(b) RAILWAYS National Capital Region Light Rail Transit System ...........P200,000,000 TOTAL FOR P200,000,000 RAILWAYS....................

(c) PORTS Region I 1. Sual Fishing Port Project (Pangasinan) ...........37,000,000 Region IV Lucena Fishing Port Project (Lucena 2. ...........99,000,000 City) Region V Camaligan Fishing Port Project 3. ...........60,000,000 (Camarines Sur) Region VI Philippine Rural Infrastructure Project, port components (San Jose de 4. ...........32,000,000 Buenavista, Antique; Culasi, Capiz; and Dumaguit, Aklan) 5. Iloilo Fishing Port Project ( Iloilo City) .........161,000,000 Region VIII Samar Integrated Rural Development Project, port components ( San Jose, 6. Northern Samar; Catbalogan, Samar; ..........12,000,000 and Guiuan and Dolores, Eastern Samar) Region IX Zamboanga Fishing Port Project ( 7. ..........72,000,000 Zamboanga City) Region X Port of Cagayan de Oro (Cagayan de 8. ..........63,000,000 Oro City) Region XI Port of Davao ( Davao City and Davao 9. ..........53,000,000 del Sur)TOTAL FOR PORTS.................... P589,000,000 (d) AIRPORTS AND AIR NAVIGATIONAL FACILITIES Region I Laoag International Airport ( Laoag 1. ..........46,000,000 City) Region IV Puerto Princesa Airport (Puerto 2. ..........13,000,000 Princesa City) Region VI 3. Kalibo Airport (Aklan) ..........10,000,000 Region VII 4. Dumaguete Airport (Dumaguete City) ..........11,000,000 Region IX 5. Pagadian Airport ( Pagadian City) ..........11,000,000 6. Cagayan de Sulu Airport (Tawi-Tawi) ..........11,000,000 Region XI 7. General Santos Airport (General ..........22,000,000 Santos City) 8. Bislig Airport (Surigao del Sur) ..........10,000,000 TOTAL FOR AIRPORTS AND AIR NAVIGATIONAL P134,000,000 FACILITIES....................

TOTAL FOR

P3,823,000,000 TRANSPORT....................

Title B—WATER RESOURCES PROJECTS

For the construction, improvement, rehabilitation, re construction, and/or completion of the following projects, including detailed engineering and acquisition of sites, equipment, materials, supplies, and services to be used directly for the projects:

(a) IRRIGATION Region I 1. Ilocos Norte Integrated Develop ment ........P705,000,000 Project, including Palsiguan River and Quiaoit (Quiom-Maypalig) Multi-Purpose Projects, irrigation component (Ilocos Norte) Philippine Rural Infrastructure 2. ..........12,000,000 Project, irrigation component (Abra) National Irrigation Systems 3. ..........20,000,000 Improvement Project (Regionwide) Region II Chico River Basin Project, irrigation 4. component (Isabela and Kalinga- ........540,000,000 Apayao) Upper Pampanga River Project 5. Watershed Development (Nueva ..........15,000,000 Vizcaya) Cagayan Integrated Area Development 6. Project, irrigation component ..........65,000,000 (Cagayan) Philippine Rural Infrastructure Project, 7. ..........19,000,000 irrigation component (Kalinga-Apayao) National Irrigation Systems 8. ..........20,000,000 Improvement Project (Regionwide) Region III Upper Pampanga River Project 9. Watershed Development (Nueva ..........15,000,000 Ecija) Tarlac Irrigation System Improvement 10. ..........26,000,000 Project (Tarlac) Region IV Laguna de Bay Development Project, irrigation component (Mabitac, 11. Pagsanjan, Cabuyao, and San Pedro, ..........70,000,000 Laguna; and Baras, Tanay, and Pililla, Rizal; and Cavite) Amnay ( Asis River) Irrigation Project 12. ..........18,000,000 ( Mindoro Occidental) National Irrigation Systems 13. ..........20,000,000 Improvement Project (Regionwide) Mindoro Integrated Area Development Project, irrigation 14. ..........22,000,000 component (Mindoro Oriental and Mindoro Occidental) Upper Pampanga River Project 15. ..........15,000,000 Watershed Development (Quezon) Region V 16.Baliuag-San Vicente Area ..........90,000,000 Development Project, irrigationcomponent (Camarines Sur) Rinconada Area Development Project, 17. ..........42,000,000 irrigation component (Camarines Sur) Bula-Minalabac Irrigation Project 18. ..........22,000,000 (Camarines Sur) National Irrigation Systems 19. ..........20,000,000 Improvement Project (Regionwide) Region VI Philippine Rural Infrastructure 20.Project, irrigation component (Aklan, ..........27,000,000 Antique, and Capiz) National Irrigation Systems 21. ..........20,000,000 Improvement Project (Regionwide) Region VII Philippine Rural Infrastructure 22. ..........19,000,000 Project, irrigation component (Bohol) Region VIII Samar Integrated Rural Development 23.Project, irrigation component ( ........142,000,000 Northern Samar) National Irrigation Systems 24. ..........20,000,000 Improvement Project (Regionwide) Region IX Philippine-Australian Development 25.Project, irrigation component ..........14,000,000 (Zamboanga del Sur) National Irrigation Systems 26. ..........20,000,000 Improvement Project (Regionwide) Region X Agusan del Sur Irrigation Project 27. ..........50,000,000 (Bunawan-Salvacion, Agusan del Sur) Pulangui River Irrigation Project ( 28. ..........39,000,000 Valencia, Bukidnon) Agusan II Irrigation Project 29.(Cabadbaran, Agusan del Norte; and ..........60,000,000 Solibao-Gibong, Agusan del Sur) National Irrigation Systems 30. ..........20,000,000 Improvement Project (Regionwide) Region XITago River Irrigation Project (Surigao 31. ........138,000,000 del Sur) Davao del Norte Irrigation Project II 32. ..........78,000,000 (Libuganon-Lasang, Davao del Norte) National Irrigation Systems 33. ..........20,000,000 Improvement Project (Regionwide) Allah Valley Irrigation Project ( South 34. ........220,000,000 Cotabato) Region XII National Irrigation Systems 35. ..........20,000,000 Improvement Project (Regionwide) TOTAL FOR P2,663,000,000 IRRIGATION....................

(b) FLOOD CONTROL AND DRAINAGE National Capital Region 1. Mangahan Floodway (Rizal) .......P132,000,000 Napindan Hydraulic Control Structure, 2. ..........66,000,000 flood control component (Rizal) Marikina Multi-Purpose Project, flood 3. ..........88,000,000 control component (Rizal) Region I Tina-Gasgas Flood Control and Twin 4. .......200,000,000 Impounding Reservoirs (Ilocos Norte) Catchment basins and impounding 5. reservoirs, flood control component .........50,000,000 (Regionwide) Construction and reconstruction of 6. railroad and highway bridges with .........75,000,000 inadequate waterways (Regionwide) Dredging of main rivers and outlets 7. .........15,000,000 (Regionwide) River training and bank protection of 8. ...........5.000,000 various rivers (Regionwide) Local flood control, drainage and 9. ...........5,000,000 related activities (Regionwide) Region II Magat Multi-Purpose Project, flood 10. ........200,000,000 control component (Isabela) Cagayan River Control (Cagayan and 11. ..........82,000,000 Isabela) Matuno Flood Control and 12.Impounding Reservoir (Nueva ........100,000,000 Vizcaya)Sta. Cruz Flood Control and 13.Impounding Reservoir (Nueva ........100,000,000 Vizcaya) Catchment basins and impounding 14.reservoirs, flood control component ..........40,000,000 (Regionwide) Dredging of main rivers and outlets 15. ...........3,000,000 (Regionwide) River training and bank protection of 16. ..........35,000,000 various rivers (Regionwide) Local flood control, drainage and 17. ..........12,000,000 related activities (Regionwide) Region III 18.Labangan Floodway (Bulacan) ..........10,000,000 Catchment basins and impounding reservoirs, including sabo works, 19. ........150,000,000 flood control component (Regionwide) Construction and reconstruction of 20.railroad and highway bridges with ........150,000,000 inadequate waterways (Regionwide) Dredging of main rivers and outlets 21. ..........50,000,000 (Regionwide) River training and bank protection of 22. ..........30,000,000 various rivers (Regionwide) Local flood control, drainage and 23. ..........20,000,000 related activities (Regionwide) Region IV Mindoro Flood Control and 24.Schistosomiasis Control Project ..........12,000,000 (Mindoro Oriental) Cavite Flood Control and Drainage ( 25. ..........15,000,000 Cavite) Catchment basins and impounding 26.reservoirs, flood control component ...........3,000,000 (Regionwide) Dredging of main rivers and outlets 27. ...........4,000,000 (Regionwide) River training and bank protection of 28. ...........3,000,000 various rivers (Regionwide) Local flood control, drainage and 29. ...........2,000,000 related activities (Regionwide) Region V Mayon Volcano Sabo Works and 30.Related Projects (Albay and Legaspi ..........18,000,000 City)Sorsogon Schistosomiasis Control 31. ..........10,000,000 Project (Sorsogon) Lake Bato-Pantao Bay Diversion 32. ........230,000,000 Channel (Camarines Sur) Catchment basins and impounding reservoirs, including sabo works, 33. ..........50,000,000 flood control component (Regionwide) Construction and reconstruction of 34.railroad and highway bridges, with ..........50,000,000 inadequate waterways (Regionwide) Dredging of main rivers and outlets 35. ..........20,000,000 (Regionwide) River training and bank protection of 36. ..........10,000,000 various rivers (Regionwide) Local flood control, drainage and 37. ..........10,000,000 related activities (Regionwide) Region VI Panay River Control (Capiz and 38. ..........18,000,000 Roxas City) Catchment basins and impounding 39.reservoirs, flood control component ..........20,000,000 (Regionwide) Dredging of main rivers and outlets 40. ...........8,000,000 (Regionwide) River training and bank protection of 41. ...........6,000,000 various rivers (Regionwide) Local flood control, drainage and 42. ...........4,000,000 related activities (Regionwide) Region VII Catchment basins and impounding reservoirs, including sabo works, 43. ..........30,000,000 flood control component (Regionwide) Dredging of main rivers and outlets 44. ...........8,000,000 (Regionwide) River training and bank protection of 45. ...........4,000,000 various rivers (Regionwide) Local flood control, drainage and 46. ...........8,000,000 related activities (Regionwide) Region VIII Sab-a Basin Schistosomiasis Control 47. ..........17,000,000 and Drainage Project (Leyte) Catchment basins and impounding 48.reservoirs, flood control component ..........30,000,000 (Regionwide)Dredging of main rivers and outlets 49. ...........8,000,000 (Regionwide) River training and bank protection of 50. ...........3,000,000 various rivers (Regionwide) Local flood control, drainage and 51. ...........9,000,000 related activities (Regionwide) Region IX Saaz River Control and Drainage 52. ..........10,000,000 (Zamboanga City) Catchment basins and impounding 53.reservoirs, flood control component ..........15,000,000 (Regionwide) Dredging of main rivers and outlets 54. ...........5,000,000 (Regionwide) River training and bank protection of 55. ...........6,000,000 various rivers (Regionwide) Local flood control, drainage and 56. ...........4,000,000 related activities (Regionwide) Region X Catchment basins and impounding 57.reservoirs, flood control component .........120,000,000 (Regionwide) Dredging of main rivers and outlets 58. ..........30,000,000 (Regionwide) River training and bank protection of 59. ..........30,000,000 various rivers (Regionwide) Local flood control, drainage and 60. ..........20,000,000 related activities (Regionwide) Region XI Davao River Control, drainage and 61. ..........52,000,000 related projects ( Davao City) Tuganay River Control (Carmen, 62. ..........15,000,000 Davao del Norte) Catchment basins and impounding 63.reservoirs, flood control component ..........40,000,000 (Regionwide) Dredging of main rivers and outlets 64. ..........10,000,000 (Regionwide) River training and bank protection of 65. ..........10,000,000 various rivers (Regionwide) Local flood control, drainage and 66. ..........10,000,000 related activities (Regionwide) Region XIICatchment basins and impounding 67.reservoirs, flood control component .........200,000,000 (Regionwide) Dredging of main rivers and outlets 68. ..........65,000,000 (Regionwide) River training and bank protection of 69. ..........30,000,000 various rivers (Regionwide) Local flood control, drainage and 70. ..........30,000,000 related activities (Regionwide) TOTAL FOR FLOOD CONTROL P2,930,000,000 DRAINAGE....................

c) WATER SUPPLY Rural Water Supply Communal 1. .........P40,000,000 Systems (Nationwide) TOTAL FOR WATER P40,000,000 SUPPLY....................

TOTAL FOR WATER

P5,633,000,000 RESOURCES....................

GRAND TOTAL.................... P9,456,000,000

SEC. 2. Detailed Plans and Programs of Work.—Prior to the actual construction, improvement, rehabilitation and/or reconstruction of the projects covered in whole or in part by appropriations in this Act, approval of detailed en gineering plans and programs of work by the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, shall be obtained for every project with an estimated cost greater than P1,000,000; by the Bureau Head concerned for every project with an estimated cost greater than P 500,000 but not more than P1,000,000; by the Regional Director concerned for every project with an estimated cost greater than P200,000 but not more than P500,000; and by the District or City Engineer concerned for every project with an estimated cost of P200,000 or less. The program of work shall include, among other things, estimates of the work items, quantities and costs, a PERT/CPM (Program Evaluation Review Technique/Critical Path Method) network of the project activities, and monthly cash flows. The program of work shall cover at least a usable portion of the project and no construction shall be started for portions of the project that are less than usable, except projects requiring stage construction, provided that continuity of construction up to the completion of a usable portion is assured. Once the program of work is approved, it shall serve as the basis for the implementation of the project and the corresponding expenditure of funds. No project shall be divided into smaller portions for the purpose of circumventing the provisions of this Section.

SEC. 3. Local Labor.—In the implementation of projects covered by appropriations in this Act, the required unskilled labor shall be procured, where available, from the sitio, barangay, poblacion, municipality or city where the project is located, and, for this purpose, a certification from the City or Municipal Mayor or Barangay Captain, as the case may be, shall be secured as to the availability of the unskilled labor. Skilled labor shall be procured, where available, from within the province where the project is located. Specialized skilled labor may be procured outside the province where the project is located.SEC. 4. Labor-Intensive Methods.—Whenever technically and economically feasible, labor-intensive methods shall be used in the prosecution of the projects authorized in this Act: Provided, That (a) the estimated financial cost of each project done by labor-intensive methods does not exceed the cost of the best alternative construction method de fined by the agency concerned by more than ten per centum (10%), (b) the estimated duration of the project done by labor-intensive methods does not exceed the duration of the best alternative method defined by the agency concerned by more than fifty per centum (50%), and (c) the employment of workers in the projects will not unduly impair the labor requirements of agricultural production: Provided, finally, That before any such project is prosecuted, the agency concerned shall prepare at least two alternative methods of construction based on the same plans and structural standards, one being labor-intensive together with a comparative evaluation of projected financial and economic costs, employment generation, and technical quality; such comparison shall be the basis for select ing the most advantageous construction techniques to be employed in terms of the criteria aforestated. The District or City Engineer concerned shall certify in the program of work that he has maximized the use of labor-intensive methods in accordance with the foregoing criteria. The purchase of hand tools and other work implements for undertaking projects by labor-intensive methods may be charged against project funds not exceeding five per centum (5%) of the estimated project cost. These implements may be turned over to the laborers with the payment therefor deductible from their wages on reasonable installments during the duration of their employment in the project. The agencies concerned shall refer to and take into consideration the relevant studies of the Ministry of Public Works, Transportation and Communications and the Ministry of Public Highways for the identification of project work items or activities suitable for labor-intensive methods of construction.

SEC. 5. Pre-Construction Activities.—In the implementation of the work, a general plan of operations shall be prepared to indicate the methods and the procedures to be followed. This plan will cover and organize all relevant fields of study, delineation of responsibilities for undertaking each phase, specifying or analyzing all analytical procedures and resources to be required for conducting the studies.

SEC. 6. Purchase of Materials and Supplies.—The Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, is authorized, subject to bidding and auditing requirements, to procure the necessary materials and supplies for the construction, reconstruction, improvement, repair and/or rehabilitation of any project covered by appropriations in this Act. When these materials and supplies are obtainable locally in the province or city where the project is located, the same may be procured by the District or City Engineer or, in the case of special projects, the Project Manager, without prior authority from the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, subject to bidding and auditing requirements. No surcharge shall be imposed for the service of procuring such materials and supplies. The expenditures for these materials and supplies shall not exceed the estimated cost for the same as stated in the approved program of work.

SEC. 7. Prosecution of Projects by Administration.—Any project covered by appropriations in this Act with a cost of P500,000 or less, based on the approvedprogram of work under Section 2 hereof, may be done by administration or force account by the bureau or agency concerned without benefit of public bidding. Every project with a cost of more than P500,000 shall be advertised for public bidding, provided that, if there are no acceptable bids for such project, the project may be prosecuted by administration by the bureau or agency concerned after securing the approval of the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is P2,000,000 or less; and the approval of the President of the Philippines, upon recommendation of the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is more than P2,000,000. In case of urgent necessity or emergency, however, a project costing more than P500.000 may be prosecuted by administration, without prior public bidding, by the bureau or agency concerned, subject to the approval by the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is P2,000,000 or less; and to the approval of the President of the Philippines, upon recommendation of the Minister of Public Work, Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is more than P2,000,000.

SEC. 8. Negotiated Contracts.—Pursuant to the general policy of undertaking projects by contract after public bidding, no project covered by appropriations in this Act shall be prosecuted by negotiated contract except: (a) in cases where public bidding has failed to produce bids acceptable to the bureau or agency concerned; or (b) in case of urgent necessity or emergency or danger to life and property; or (c) in case of a project which is contiguous to an on-going project under contract, in which case the agency concerned may negotiate with the contractor of the on-going project to undertake the additional work under the same contractual terms and conditions of the on-going contract less credit for mobilization, except in cases of extraordinary inflation or state of recession declared by the government: Provided, That no negative slippage is incurred by the contractor in any of his on-going projects: Provided, further, That the additional work is within his contracting capabilities. Authority to negotiate contracts for projects under these exceptional cases shall be subject to prior approval by the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is P2,000,000 or less; and to approval by the President of the Philippines, upon recommendation of the Minister of Public Works, Transportation and Communications or the Minister of Public Highways, as the case may be, if the project cost is more than P2,000,000.

SEC. 9. Engineering and Administrative Overhead.—Appropriations authorized in this Act shall be used solely for project implementation which may include direct engineer ing and administrative overhead expenditures incidental thereto. These expenditures shall be reflected in the individual project program of work provided for in Section 2 of this Act and shall not exceed five per centum (5%) of the amount actually released for the project. The ex penditures shall be reduced to the extent of any personnel and other services that are already supported by regular appropriations of the agencies concerned.

SEC. 10. Reports.—The head of the bureau or agency concerned shall submit to the Minister of Public Works, Transportation and Communications or the Minister ofPublic Highways, as the case may be, quarterly accom plishment reports, copies of which shall be furnished the President (Prime Minister), the National Economic and Development Authority, the Ministry of the Budget, the Speaker of the Batasang Pambansa and the Chairman of the Regional Development Council of the Region where the project is undertaken. At the end of the calen dar year, the Minister of Public Works, Transportation and Communications and the Minister of Public Highways, shall submit their annual accomplishment reports which shall include the appropriations released as of the end of the calendar year, the extent of the work accomplished, further works to be done to complete the program of broad categories of public works and public highway projects and recommendations, if any, for transfer of appropriations or changes of program to be incorporated in the succeeding appropriations measure, to the President (Prime Minister), with copies furnished the National Economic and Development Authority, the Ministry of the Budget and the Batasang Pambansa through the Speaker.

SEC. 11. Separability.—If any provision of this Act is declared unconstitutional, the remaining provisions shall remain in force.

SEC. 12. Effectivity.—This Act shall take effect im mediately upon approval. Approved, December 22, 1978.