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WHEREAS, the On-Going Tripartite Review of the 1996 GRP-MNLF Final Peace Agreement have recommended for the setting-up of a Bangsamoro Development Assistance Fund (BDAF) mechanism for the accessing and channeling of funds from the Organization of Islamic Conference (OIC), its special bodies and member countries;

WHEREAS, the Organization of Islamic Conference (OIC) have invariably in all its previous resolutions urged member states and subsidiary organs, specialized and affiliated institutions including the Islamic Development Bank to increase their economic, financial and material assistance for the development and rehabilitation of Southern Philippines;

WHEREAS, it is the policy of the present Administration to foster and accelerate the balanced growth of the Southern Philippines for national, economic, social and political stability;

WHEREAS, under the Administrative Code of the Philippines, the President as the Head of the Executive Department may re-organize the department and agencies within the executive Department;

WHEREAS, Section 77 of Republic Act No. 9330, also known as the “General Appropriations Act of 2008” the president may direct changes in the organization and key positions in any department, bureau or agency.

NOW, THEREFORE, I GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order;

SECTION 1. Establishment of the Bangsamoro Development Assistance Fund (SPDAF). – The Bangsamoro Development Assistance Fund (BDAF) is hereby established effective immediately.

SECTION 2. Fund Governing Board (FGB). - A Fund Government Board is hereby established to manage the BDAF. The Board shall be composed of nine (9) members; three (3) to be recommended by the OIC; three (3) by the MNLF and three (3) by the GRP. The board will be headed by a Chairman to be recommended by the MNLF. The Chairman and members of the Fund Governing Board will be appointed by the President.

SECTION 3. Functions of the Board.- The Board shall have among others, the following functions:

a. Approve policies and implementing guidelines needed to accomplish the purpose and objectives of the BDAF;
b. Determine and approve the organizational structure, staffing pattern and pay scale of its officers and employees subject to existing rules and regulations;
c. Review and approve annual work and financial plan and budget of BDAF;
d. Establish levels of authority and responsibilities of the Project Manager.

SECTION 4. Project Executing Office (PEO).- A Project Executing Office (PEO) shall be organized by the FGB to oversee and take the lead in the implementation of the projects supported by the Fund. The PEO shall be headed by a Project Manager who shall be appointed by the President from the recommendees of the FGB. The Project Manager shall serve for a term of four (4) years.

SECTION 5. Catch-Up Plan.- The BDAF shall be implementing arm for the economic catch-up plan on the implementation of the 1996 GRP-MNLF Peace Agreement.

SECTION 6. Support of other agencies – BDAF may request from such other agencies as may be necessary, including the Commission on Audit (COA) and the Civil Service Commission (CSC), to assist in the implementation of this Executive Order.

SECTION 7. Budget.- The amount of One Hundred Million Pesos (P100,000,000.00) to be taken from the President’s Contingency Fund is hereby made available for the initial funding and operation of the BDAF. Subsequent operational budget for the BDAF shall be included in the General Appropriations Act.

SECTION 8. Repealing Clause.- All executive orders, rules, regulations and other issuances or parts thereof which are inconsistent with the provisions of this Executive Order are hereby repealed or modified accordingly.

SECTION 9. Effectivity.– This Executive Order shall take effect immediately upon its publication in a national newspaper of general circulation.

(SGD.) GLORIA M. ARROYO  

  BY THE PRESIDENT: 

  (SGD.) LEANDRO R. MENDOZA
  Executive Secretary