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WHEREAS, it is the policy of the Government to promote the proper development, control and utilization of the total water resources of the country in order to bring about its accelerated socio-economic development;

WHEREAS, the Cotabato and Agusan River Basins, with the current and prospective uses of their combined water resources, are major determinants of the complex of human activities in the country;

WHEREAS, a comprehensive plan for the development of the water and related resources of the two basins has been adopted by the National Water Resources Council;

WHEREAS, based on this comprehensive plan, there is an urgent need for the integrated and coordinated planning and prosecution of specific projects and programs to meet the present and future requirements of irrigation, power, flood control, domestic and industrial water supply, watershed management and related socio-economic activities in the two basins.

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

SECTION 1. Cotabato-Agusan River Basin Program Office and Field Offices. There is hereby created a Cotabato-Agusan River Basin Program Office, hereinafter referred to as the Program Office which shall be attached to the Department of Public Works, Transportation and Communications and under the supervision of the Executive Committee for the Program created under Section 2 hereof, through its Chairman. The Program Office shall coordinate, and supervise the planning and implementation of the water resources and related development activities of the Cotabato-Agusan River Basin Development Program as adopted by the National Water Resources Council, hereinafter called the Program covering the municipalities of Bunawan, Bayugan, Esperanza, La Paz, Loreto, Prosperidad, Rosario, San Francisco, San Luis, Sta. Josefa, Talacogon, Trento, Veruela, in the province of Agusan del Sur, and the municipalities of Buenavista, Magallanes, Cabadbaran, Las Nieves and the City of Butuan in the province of Agusan del Norte, and the municipalities of Asuncion, Compostela, Mabini, Monkayo, Montevista, Nabunturan, New Bataan and Panturan in the province of Davao del Norte and the municiaplity of Boston in Davao Oriental, and the Municipality of Claveria in Misamis Oriental, and the municipalities of Barobo, Lianga, Marihatag, San Agustin, Oteiza, San Miguel, Tagbina in the province of Surigao del Sur, and the municipalities of Impasugong, Malaybalay, Malitubog, Dongcagan, Don Carlos, Kalilangan, Kibawe, Kitao-tao, Lantapan, Maramag, Pangontocan, Quezon, San Fernando, Valencia in the province of Bukidnon, and the municipalities of Alamada, Carmen, Kabacan, Kidapawan, Libungan, Magpet, Makilala, Matalam, Midsayap, M'lang, Pigakawayan, Pikit, President Roxas, Tulunan, and the nunicipalitios of Kiamba, Surallah, Banga, Tampacan, Tupi, Tantangan, Koronadal, Norala in the province of South Cotabato, and the municipalities of Lebak, Kalamansig, Bagumbayan, Isulan, Esperanza, Colombio, Marcos, Tacurong, Ampatuan, Quirino, Lutayan, in the province of Sultan Kudarat and the municipalities of Datu Paglas, Buluan, Sultan Kudarat, Datu Piang, Maganoy, Pagalungan, Sultan sa Barongis, Tumbao, Upi, Buldon, and the City of Cotabato in the province of Maguindanao, and the municipality of Wao in the province of Lanao del Sur and other areas within the watersheds of the Cotabato and Agusan river basins.

The Program Office shall have its principal offices in Davao City. Field Offices shall be set up in Cagayan de Oro City and Cotabato City.

SEC. 2. Executive Committee for the Program. There is hereby created an Executive Committee, attached to the Department of Public Works, Transportation and Communications, which shall serve as the policy-making and governing body of the Program. The Executive Committee shall be composed of the Secretary of Public Works, Transportation and Communications as Chairman, and the Secretary of Economic Planning, the Secretary of Agriculture, the Secretary of Natural Resources, the Secretary of Energy, the Presidential Assistant on Economic and Development Affairs, the Administrator of the National Irrigation Administration, the General Manager of the National Power Corporation, the Commissioner of Region XII, and the Chairmen of the Regional Development Councils of Regions X and XI, as members.

The Executive Committee, through its Chairman, shall exercise and discharge the following powers and functions:

1. Formulate policies and guidelines related to the implementation and management of the Program;
2. Oversee the coordination of the planning and implementation of the Program;
3. Authorize the Program Director hereinafter referred to and/or the implementing departments or agencies to prepare feasibility studies for identified water and related resources development projects in the Cotabato and Agusan river basins.
4. Arrange and/or negotiate with local and foreign financial institutions for the funding of identified water and related resources development projects;
5. Review of the Program's consolidated plans, budgets and work programs;
6. Call upon any department, bureau, office, instrumentality or any political subdivision of the Government for any assistance it may need in the performance of its functions;
7. Exercise other inherent powers and policy-making functions.

SEC. 3. Program Director. The Program Office shall be headed by a Program Director who shall be appointed by the Executive Committee and shall serve until the completion of the Program, unless sooner removed from office for cause by the Executive Committee. The Program Director shall be a natural-born Filipino citizen, of legal age, of good moral character and with a proven record of competence in the field of administration and management of infrastructure, agricultural and related programs. The annual compensation and allowances of the Program Director shall be fixed by the Executive Committee.

The Program Director shall exercise the following powers and functions:

1. Directly coordinate the activities of the implementing apartments and agencies concerned in the planning and implementation of the Program and its component projects.
2. Review and integrate the plans, programs, projects, budget proposals for the Program for consideration by the Executive Committee, and forward the same to the Budget Commission for the release of funds;
3. Monitor the progress and evaluate the effects of Program execution by the implementing departments and agencies, and submit quarterly periodic progress reports to the Executive Committee and the Office of the President.
4. Manage the Program Office and adopt administrative rules and procedures for its internal management; and
5. Perform such functions as are inherently necessary in the operational management of the Program.

SEC. 4. Staff Appointments. In accordance with the staffing pattern to be recommended by the Executive Committee and approved by the Budget Commission, the Program Director shall appoint the other personnel of the Program Office and define their duties and responsibilities; Provided, that, all technical and professional positions shall be exempt from the rules and regulations on wage and position classification and shall be provided with a salary rate to be determined in accordance with the possessed skills, experiences, educational attainment and the degree of specialization by the proper authorities concerned. Personnel of the existing Cotabato-Agusan River Basin Development Project Office shall be absorbed by the Program Office created by virtue of this Decree. They shall be provided a salary rate not lower than the present rate including other emoluments they are actually receiving; Provided, further, that the Program Office may employ personnel on a part-time basis, any provision of law to the contrary notwithstanding.

SEC. 5. Role, Functions and Responsibilities of the Implementing Departments and Agencies. All designated government departments and agencies shall execute the planning and project components of the programs assigned to them and shall submit for approval to the Executive Committee, through the Program Director, their respective annual project plans, budgets and the corresponding work programs within three months before the start of the ensuing calendar year. They shall also submit to the Program Director the financial and work plans for every request for budget release as well as periodic reports containing results of their respective program operations.

SEC. 6. Appropriations. The amount of three million pesos (P3,000,000) is hereby authorized to be appropriated out of the funds of the National Treasury not otherwise appropriated, as operating funds of the Program Office and the two Field Offices. Thereafter, funds sufficient to fully carry out the objectives of the Program shall be appropriated every fiscal year in the General Appropriations Act.

SEC. 7. Separability Clause. If any provision of this Decree shall be invalid, the remainder shall continue to be operative.

SEC. 8. Repealing Clause. All laws, decrees, executive orders, rules and regulations, or parts thereof, which are inconsistent with any provision of this Decree are hereby repealed or modified accordingly. Memorandum Order No. 518 dated June 16, 1975, is hereby repealed and the properties, assets, records, unexpended, funds and necessary personnel of the Inter-Agency Coordinating Committee for the development of the Cotabato and Agusan River Basins are hereby transferred to the Cotabato-Agusan River Basin Program Office created under this Decree.

SEC. 9. Effectivity. This Decree shall take effect immediately.

Done in the City of Manila, this 11th day of June, in the year of Our Lord, nineteen hundred and seventy-eight.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JACOBO C. CLAVE
		Presidential Executive Assistant