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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 not otherwise appropriated in any subsequent General Appropriations Acts, including the proceeds of bond issues and/or loans and grants from local or foreign institutions, to implement public works, highways, transportation and communications projects of the National Government for the years beginning 1982, as prescribed hereunder:

Title A.—HIGHWAYS

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

National Capital Region ....................	P 300,000,000
1. Metro Manila Major Roads	300,000,000
Region I ....................	P 370,000,000
1. Rosario-Laoag Road	180,000,000
2. Ilocos Norte Rural Development Project, Road Component	40,000,000
3. Baguio-Bontoc-Banawe-Lubuagan	150,000,000
Region II ....................	P 70,000,000
1. Dugo Jct.— San Vicente Road	70,000,000
Region IV ....................	P 550,000,000
1. Palawan Integrated Rural Development Project, Road Component	200,000,000
2. Mindoro Integrated Rural Development Project, Road Component	350,000,000
Region V ....................	P 120,000,000
1. Bicol River Basin, Road Component	120,000,000
Region VI ....................	P 80,000,000
1. Antique-Aklan Road	80,000,000
Region VII ....................	P 100,000,000
1. Bohol Integrated Development Project, Road Component	50,000,000
2. Various Road Projects, Cebu	30,000,000
3. Various Road Projects, Negros Oriental	10,000,000
4. Various Road Projects, Siquijor	10,000,000
Region VIII ....................	P 500,000,000
1. West Leyte Road Improvement Project, including four (4) supplementary road sections in Northwest	300,000,000
2. Samar Integrated Rural Development Project	200,000,000
Region IX ....................	P 200,000,000
1. Zamboanga del Sur Integrated Development Project, Road Component	170,000,000
2. For various Road Projects in the islands of Basilan, Sulu and Tawi-Tawi	30,000,000
Region X ....................	P 90,000,000
Region XI ....................	P 90,000,000
Inter-Regional ....................	P2,930,000,000
1. Laoag-Allacapan Road	170,000,000
2. Junction Narvacan, Ilocos Sur-Abra- Kalinga Road	180,000,000
3. Southern Philippine Development Authority, Road Component
(a) Malabang-Marawi Road	130,000,000
(b) Ganassi-Tubod Road	100,000,000
(c) Lake Lanao Circumferential Road	130,000,000
(d) Molundo-Wao-Banisilan-Libungan-Carmen Road	330,000,000
(e) Dipolog-Zamboanga Coastal Road	600,000,000
(f) Cotabato- Zamboanga Coastal Road	500,000,000
(g) Cotabato City-General Santos Road ( South Cotabato Coastal Road)	180,000,000
(h) Surigao del Norte-Surigao del Sur- Davao Oriental Coastal Road	410,000,000
4. Dalton Pass	200,000,000
Nationwide ....................	P4,560,000,000
1. Philippine Rural Road Project	130,000,000
2. Luzon Road Project	300,000,000
3. Philippine Island Road Project	400,000,000
4. Major Bridges	600,000,000
5. Urban Road and Related Project	200,000,000
6. Bliss Project, Road Component	80,000,000
7. Pambansang Bagong Nayon Project	50,000,000
8. Traffic Safety Devices and Road Signs	70,000,000
9. Detailed Engineering of Various Roads/Bridges	100,000,000
10. Development of Roads and Bridges	200,000,000
11. Various National Roads and Bridges	500,000,000
12. Local and Rural Roads and Bridges	500,000,000
13. Construction of Area and Base Shops	600,000,000
14. Slum Improvement and Resettlement Project	100,000,000
15. Restoration and Improvement Project	530,000,000
16. Ferry Services	__200,000,000
Total, Title A..........	P9,960,000,000

Title B.—RAILWAYS

For the construction of the following projects, including engineering and acquisition of sites, equipment, materials, supplies and services to be used directly for the projects.

National Capital Region	P 800,000,000
1. Light Rail Transit System	800,000,000
NCR and Other Regions
1. Repair, Maintenance and Improvement of Rolling Stocks, Tracks and other Facilities including Rehabilitation of the South and North Main Lines and the Commuter Service	P2,120,000,000
Total, Title B..........	P2,920,000,000

Title C—PORTS

For the construction, dredging, improvement, provision, rehabilitation, reconstruction and/or completion of port projects, including engineering and acquisition of sites, equipment, materials, supplies and services to be used directly for the projects.

C.—1. Fishing Ports

Region I	P 76,000,000
1. Sual Fishing Port, Pangasinan	76,000,000
Region IV	P 36,000,000
1. Lucena Fishing Port	36,000,000
Region V	P 44,000,000
1. Camaligan Fishing Port, Camarines Sur	44,000,000
Region VI	P 139,000,000
1. Iloilo Fishing Port	139,000,000
Region IX	P 177,000,000
1. Zamboanga Fishing Port	__177,000,000
Total, Title C-1..........	P 472,000,000

C-2. Commercial Ports

Region I ..........................	P 11,000,000
Region II ........................	10,000,000
Region III .....................	13,000,000
Region IV ......................	23,000,000
Region V .........................	16,000,000
Region VI .......................	25,000,000
Region VII.......................	17,000,000
Region VIII .....................	29,000,000
Region IX .........................	18,000,000
Region X ..........................	21,000,000
Region XI .........................	20,000,000
Region XII .........................	14,000,000
Nationwide ........................	20,000,000
Total, Title C-2 .............	P 237,000,000
Grand Total, Title C........	P 709,000,000

Title D.—AIRPORTS AND AIR NAVIGATIONAL FACILITIES

For the construction, improvement, rehabilitation, reconstruction, and/or completion of the following airports and air navigational facility projects, including feasibility and detailed engineering studies, acquisition of sites, equipment, materials, supplies and services to be used directly for the projects.

Region I.........................	P 10,600,000
Region II .......................	33,500,000
Region III ......................	3,400,000
Region IV .......................	363,580,000
Region V ........................	13,170,000
Region VI .......................	31,500,000
Region VII ......................	566,750,000
Region VIII .....................	34,100,000
Region IX .......................	553,900,000
Region X ........................	17,000,000
Region XI .......................	219,500,000
Region XII ......................	23,000,000
National Capital Region (NCR).............	695,000,000
Various Air Navigational Aids Projects.....	380,000,000
Total, Title D.....................	P2,945,000,000

Title E.—IRRIGATION

For the construction, improvement, provision, rehabilitation, reconstruction and/or completion of irrigation systems, including engineering and acquisition of sites, equipment, materials, supplies and services to be used directly for the projects.

Region I ....................	P 65,000,000
1. National Irrigation System Improvement Project, Regionwide	49,000,000
2. Various Irrigation System and Projects, Regionwide	16,000,000
Region II ....................	P 516,000,000
3. Cagayan Integrated Agricultural Development Project (Irrigation Component), Cagayan	22,000,000
4. San Pablo-Cabagan Irrigation Project, Isabela	17,000,000
5. Watershed Management and Soil Erosion Control Project, Regionwide	312,000,000
6. Nationwide Irrigation Systems Improvement Project, Regionwide	145,000,000
7. Various Irrigation Systems and Projects, Regionwide	20,000,000
Region III ....................	P 155,000,000
8. Tarlac Irrigation Systems Improvement Project	19,000,000
9. Central Luzon Ground Water Irrigation Project	77,000,000
10. Upper Pampanga River Irrigation Systems, San Antonio Extension and Completion of Drainage Facilities	18,000,000
11. Bayto River Irrigation Project, Zambales	21,000,000
12. Various Irrigation Systems and Projects, Regionwide	20,000,000
Region IV ....................	P 418,000,000
13. Amro-Pinamacan Irrigation Project, Aurora	54,000,000
14. Laguna de Bay Development Project (Irrigation Component), Laguna, Rizal and Cavite	205,000,000
15. Lumintao River Irrigation Project, Mindoro Occidental	57,000,000
16. Amnay River Irrigation Project, Mindoro Occidental	41,000,000
17. National Irrigation System Improvement Project, Regionwide	41,000,000
Various Irrigation Systems and Projects, Regionwide	20,000,000
Region V ....................	P 475,000,000
19. Naga-Calabanga Irrigation Project, Camarines Sur	350,000,000
20. San Francisco River Irrigation Project, Albay	41,000,000
21. Virac-Calolbon Irrigation Project, Catanduanes	15,000,000
22. National Irrigation Systems Improvement Project, Regionwide	69,000,000
Region VI ....................	P 165,000,000
23. Binalbagan River Irrigation Project, Negros Occidental	36,000,000
24. National Irrigation Systems Improvement Project, Regionwide	129,000,000
Region VII ....................	P 276,000,000
25. Bohol Irrigation Project (Wahig-Pamacsalan Reservoir Project)	258,000,000
26. Bayawan River Irrigation Project, Negros Oriental	18,000,000
Region VIII ....................	P 116,000,000
27. National Irrigation Systems Improvement Project, Regionwide	116,000,000
Region IX ....................	P 165,000,000
28. Sibuguey River Irrigation Project Zamboanga del Sur	30,000,000
29. National Irrigation Systems Improvement Project, Regionwide	135,000,000
Region X ....................	P 219,000,000
30. Agusan del Sur Irrigation Project (Bunawan-Salvacion)	10,000,000
31. Agusan II Irrigation Project, Agusan del Sur and Agusan del Norte	56,000,000
32. Bukidnon Irrigation Project	153,000,000
Region XI ....................	P 529,000,000
33. Davao del Norte Irrigation Project II Libunganon and Lasang	95,000,000
34. Davao del Norte III, Hijo, Manat, Kipaliku, Tuganay, and Libuganon	337,000,000
35. Allah River Irrigation Project, South Cotabato	41,000,000
36. National Irrigation Systems Improvement Project, Regionwide	46,000,000
37. Various Irrigation Systems and Projects, Regionwide	10,000,000
Region XII ....................	P 148,000,000
38. Rugnan River Irrigation Project, Lanao del Sur	11,000,000
39. National Irrigation Systems Improvement Project, Regionwide	137,000,000
Nationwide ....................	P1,409,000,000
40. Mindanao Irrigation Study III	20,000,000
41. Philippine Rural Infrastructure Project II (Communal Irrigation Development Package Project)	384,000,000
42. Rehabilitation and Agricultural Institutional Development Project	85,000,000
43. Investigation and Survey of Proposed Irrigation Projects, including Feasibility Studies	70,000,000
44. Various Irrigation Systems and Projects	800,000,000
45. Mini-Hydros on National Irrigation Systems	__50,000,000
Total Title E..........	P 4,656,000,000

TITLE F.—FLOOD CONTROL AND DRAINAGE

For the construction, dredging, improvement, rehabilitation, reconstruction and/or completion of flood control and drainage projects, including engineering and acquisition of sites, equipment, materials, supplies and services to be used directly for the projects.

National Capital Region ....................	P 121,000,000
1. Dagat-Dagatan Lagoon Reclamation and Flood Control Project	121,000,000
Region I ....................	P 89,000,000
2. Abra River Control Project	21,000,000
3. Mabini River Control Project	25,000,000
4. Aringay River Control Project, Aringay, Tubao, and Pugo, La Union	19,000,000
5. Tagamusing River Control Project, Binalonan and Manaoag, Pangasinan	14,000,000
6. Bontoc ( Chico) River Control Project, Mountain Province	10,000,000
Region II ....................	P 80,000,000
7. Cagayan Integrated Area Development Project (Flood Control Component)	30,000,000
8. Tuguegarao Drainage System, Cagayan	10,000,000
9. Pinacanawan River Control, Cagayan	10,000,00
10. Chico River Control Project, Kalinga-Apayao	10,000,000
11. Calanasan River Control Project, Kalinga-Apayao	10,000,000
12. Ifugao River Control Project, Ifugao	10,000,000
Region III ....................	P 166,000,000
13. Pampanga River Control System, Pampanga, Bulacan, Nueva Ecija and Tarlac	29,000,000
14. Maculcol River Control Project, San Felipe and San Narciso, Zambales	50,000,000
15. Quintanguil River Control Project, Arayat and Magalang, Pampanga	12,000,000
16. Abacan River Control Project, Angeles and Mexico, Pampanga	28,000,000
17. Batacan River Control Project, San Clemente, Tarlac	15,000,000
18. Camiling River Control Project, Camiling and Mayantoc, Tarlac	15,000,000
19. Dredging and Improvement of Major Rivers in Bataan and Bulacan	17,000,000
Region IV ....................	P 87,000,000
20. Magasawang Tubig River Control Project, Naujan. Oriental Mindoro	16,000,000
21. Cavite Flood Control and Drainage Project, Kawit and Noveleta, Cavite	20,000,000
22. Laguna Lake Development Project, Flood Control Component	41,000,000
23. Balanak River Control Project, Pagsanjan, Laguna	10,000,000
Region V ....................	P 20,000,000
24. Daet River Control Project, Camarines Norte	10,000,000
25. Sorsogon Schistosomiasis Control and Related Projects	10,000,000
Region VI ....................	P 84,000,000
26. Aklan River Control Project, Banga, Libacao, Lezo, Numancia, Malinao, Aklan	8,000,000
27. Jalaur River Control Project, Calinog, Iloilo	8,000,000
28. Dumangas-Zarraga- Leganes Flood Control Project, Iloilo	8,000,000
29. Iloilo City Drainage System	8,000,000
30. Kalibo Drainage System, Aklan	8,000,000
31. San Carlos City Drainage System	8,000,000
32. Regionwide	36,000,000
Region VII ....................	P 65,000,000
33. Siaton River Control Project, Negros Oriental	10,000,000
34. Cebu City Drainage System	11,000,000
35. Bacong River Control Project, Negros Oriental	11,000,000
36. Dumaguete City Drainage System	10,000,000
37. Tumogong River Control Project, Bais City	13,000,000
38. Inabanga River Control Project, Inabanga, Bohol	10,000,000
Region VIII ....................	P 54,000,000
39. Saba Basin Schistosomiasis Control and Related Projects, Leyte	10,000,000
40. Tacloban City Drainage System	14,000,000
41. Ormoc City Drainage System	10,000,000
42. Subang Dacu River Control Project, Southern Leyte	10,000,000
43. Regional Government Center Drainage System, Palo, Leyte	10,000,000
Region IX ....................	P 20,000,000
44. Dipolog River Control Project	10,000,000
45. Polanco River Control Project, Zamboanga del Norte	10,000,000
Region X ....................	P 82,000,000
46. Lake Mainit Drainage, Jabonga and Tubay, Agusan del Norte	20,000,000
47. Tuguibo River Control Project, Tuguibo, Agusan del Norte	12,000,000
48. Mambayaoan River Control Project, Balingasag, Misamis Oriental	10,000,000
49. Cabadbaran River Control Project, Agusan del Norte	10,000,000
50. Tubay River Control Project, Agusan del Norte	10,000,000
51. Usogon River Control Project, Bonifacio, Misamis Occidental	10,000,000
52. Lawayan River Control Project, Oroquieta City	10,000,000
Region XI ....................	P 122,000,000
53. Upper Agusan River Control Project, Davao del Norte	60,000,000
54. Tago River Control Project, Surigao del Sur	22,000,000
55. Davao City Drainage System	10,000,000
56. Nabanturan River Control Project, Davao del Norte	10,000,000
57. Glan River Control Project, South Cotabato	10,000,000
58. Sta. Cruz and Padada River Control Project, Davao del Sur	10,000,000
Region XII ....................	P 30,000,000
59. Marawi City Drainage System	10,000,000
60. Cotabato City Drainage System	10,000,000
61. Iligan City Flood Control and Drainage System	10,000,000
Nationwide ....................	P 1,038,000,000
62. Pampanga, Bicol, and Cotabato Rivers System Dredging Project	185,000,000
63. Schistosomiasis Flood Control and Related Projects	53,000,000
64. Various Flood Control and Drainage and Related Projects	__P 800,000,000
Total, Title F ...........	P 2,058,000,000

Title G.—SHORE PROTECTION

For the construction, improvement, provision, rehabilitation, reconstruction and/or completion of shore protection projects, including engineering and acquisition of sites, equipment, materials, supplies and services to be used directly for the projects.

National Capital Region ....................	P 5,000,000
Region I ....................	8,000,000
Region II ....................	6,000,000
Region III ....................	5,000,000
Region IV ....................	6,000,000
Region V ....................	6,000,000
Region VI ....................	8,000,000
Region VII ....................	7,000,000
Region VIII ....................	9,000,000
Region IX ....................	6,000,000
Region X ....................	9,000,000
Region XI ....................	6,000,000
Region XII ....................	6,000,000
Nationwide ....................	___20,000,000
Total, Title G ..........	P 107,000,000

Title H.—TELECOMMUNICATIONS

For the construction, improvement, provision, rehabilitation, reconstruction, and/or completion of telecommu­nications projects, including feasibility and detailed engineering studies, acquisition of sites, equipment, materials, supplies and services to be used directly for the projects.

National Capital Region (NCR) ....................	P 13,500,000
Development of Telecommunications Training Institute	13,500,000
Regions I & II ....................	P 388,100,000
Rural Telecommunications Development Project	388,100,000
Regions III & IV ....................	P 375,000,000
Rural Telecommunications Development Project	375,000,000
Region V ....................	P 194,700,000
Rural Telecommunications Development Project	194,700,000
Regions VI & VII ....................	P 2,055,000,000
Rural Telecommunications Development Project	2,055,000,000
Region VIII ....................	P 540,000,000
Rural Telecommunications Development Project	540,000,000
Regions IX, X, XI & XII ....................	P 3,382,600,000
Rural Telecommunications Development Project	3,382,600,000
Nationwide ....................	651,100,000
Improvement and Development of National and Regional Telecommunications Network	___651,100,000
Total, Title H ..........	P 7,600,000,000

Title I.—POSTS

For the construction, improvement, provision, rehabilitation, reconstruction, and/or completion of postal facilities, including detailed engineering studies, acquisition of sites, equipment, materials, supplies and services to be used directly for the projects.

National Capital Region ....................	P 49,600,000
1. Bureau of Post Building	39,600,000
2. National Postal Training Center	10,000,000
Various Post Offices/Distribution Centers	P 170,600,000
Region I ....................	16,000,000
Region II ....................	9,000,000
Region III ....................	16,000,000
Region IV ....................	16,000,000
Region V ....................	9,000,000
Region VI ....................	12,000,000
Region VII ....................	15,000,000
Region VIII ....................	10,600,000
Region IX ....................	10,000,000
Region X ....................	10,000,000
Region XI ....................	12,000,000
Region XII ....................	10,000,000
National Capital Region (NCR) ....................	___25,000,000
Total, Title I ..........	P 220,200,000

Title J.—FEASIBILITY STUDIES AND ENGINEERING ACTIVITIES

For the conduct of feasibility studies and investigation surveys, preparation of plans and designs, and other engineering activities for infrastructure projects.

Nationwide	P 500,000,000
1. Public Works and Highways	300,000,000
2. Transportation and Communications	__200,000,000
Total, Title J..........	P 500,000,000

Title K.—RIGHTS-OF-WAY

For the acquisition of rights-of-way necessary for the implementation of public works projects.

Nationwide	P 600,000,000
1. Public Works and Highways	400,000,000
2. Transportation and Communications	_200,000,000
Total, Title K ..........	P 600,000,000

Title L.—MISCELLANEOUS PUBLIC WORKS

For the construction, improvement, provision, rehabilitation and reconstruction of various miscellaneous public works projects, including engineering and acquisition of sites, equipment, materials, supplies and services to be used directly for the projects.

Nationwide
Various Projects	P 300,000,000
Total, Title L	P 300,000,000

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, and except as otherwise provided in Section 3 of this Act, approval of detailed engineering plans and programs of work by the Minister of Public Works and Highways, or in the case of telecommunications projects by the Minister of Transportation and Communications, shall be obtained for every project with an estimated cost greater than Pl,000,000; by the line Bureau of the Agency Head or, in the case of staff bureaus by the Ministry Head concerned, for every project with an estimated cost greater than P500,000 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, in which case continuity of construction up to the completion of a usable portion shall be 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. Implementation of Postal, Airport and Air Navigation Projects.—In the implementation of postal, airport and air navigation projects covered in whole or in part by appropriations in this Act, the Ministry of Transportation and Communications shall be responsible for the project location, space planning, and programming of funds, subject to existing laws, rules and regulations. The funds for the projects shall be released to the Ministry of Transportation and Communications and sub-allotted to the Ministry of Public Works and Highways, as implementing agency. The Ministry of Public Works and Highways shall undertake the detailed engineering, including the preparation and approval of detailed plans and program of work, and the construction of the project by-contract or by administration, in accordance with the provision of this Act, subject to prior consultation with the Ministry of Transportation and Communications, and provided that any expenses for direct project management to be charged to the project funds by the Ministry of Public Works and Highways shall not exceed five per centum (5%) of the project cost.

SEC. 4. 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. 5. 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 defined by the agency concerned by more than ten per centum (10%), (b) the estimated duration of the project done by the 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 in consultation with the Barangay Captain concerned: 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 selecting 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 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 payments 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 and Highways for the identification of project work items or activities for labor-intensive methods of construction.

SEC. 6. Pre-Construction Activities.— In the implementation of the work, a general plan of operation 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. 7. Purchases of Materials and Supplies.—The Minister of Public Works and Highways or, in the case of telecommunications projects, the Minister of Transportation and Communications, is authorized, subject to bid-ding 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 and Highways, or, in the case of telecommunications, the Minister of Transportation and Communications, subject to bidding and auditing requirements. No surcharge shall be imposed for the service of procuring such materials and supplies. The expenditures for each material shall not exceed the estimated cost of the same as stated in the approved program of work.

SEC. 8. Prosecution of Projects by Administration.—Any project covered by appropriations in this Act with a cost of P500,000 or less, based on the approved program of work under Section 2 hereof, may be done by administration or force account by the Ministry, 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 subject to the guidelines to be jointly promulgated by the Minister of Public Works and Highways and the Minister of Transportation and Communications, preference shall be given to qualified bidders within the region where the proposed project shall be constructed. 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 and Highways or, in the case of a telecommunications project, by the Minister of Transportation and Communications, if the project cost is P5,000,000 or less; and the approval of the President, upon recommendation of the Minister of Public Works and Highways or, in the case of telecommunications project, the Minister of Transportation and Communications, if the project cost is more than P5,000,000.

SEC. 9. Negotiated Contracts.—Pursuant to the general policy of undertaking projects by contract after public bidding, no project covered by appropriations in this Act snail be prosecuted by negotiated contract except: (a) in case where the 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 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 exceeding ten per centum (10%') 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 and Highways or, in the case of telecommunications projects, by the Minister of Transportation and Communications, if the project cost is P5,000,000 or less; and to approval by the President, upon recommendation of the Minister of Public Works and Highways or, in the case of telecommunications projects, of the Minister of Transportation and Communications, if the project cost is more than P5,000,000.

SEC. 10. Engineering and Administrative Overhead.— Appropriations in this Act shall be used solely for project implementation which may include direct engineering and administrative overhead expenditure incidental thereto. These expenditures shall be reflected in the program of work for the project concerned as 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 expenditures shall be reduced to the extent of any personnel and other services that are already supported by regular appropriations of the agencies concerned.

SEC. 11. Allocation of Nationwide and Regionwide Lump-sum Appropriations.—The nationwide and regionwide lump-sum appropriations authorized in this Act shall be allocated as equitably as possible to specific projects and areas in the various provinces, cities and municipalities within the region concerned, on the basis of the conformance of such project to the national and/or regional plans, the degree of need for such infrastructure project taking into account the size and developmental potentials of the area, population, rates of unemployment, employment and/ or underemployment: Provided, That regions, provinces, cities and municipalities that are not covered by specific appropriations in this Act shall be given priority in the allocation of such nationwide and regionwide appropriations.

SEC. 12. Reports.—The Minister of Public Works and Highways and the Minister of Transportation and Communications shall submit quarterly accomplishment reports to the President, the Prime Minister, the National Economic and Development Authority, the Ministry of the Budget, the Batasang Pambansa through the Speaker, and the Chairman of the Regional Development Council of the region where the project is undertaken. At the end of the calendar year, the Minister of Public Works and Highways and the Minister of Transportation and Communications 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 highways projects, and recommendations, if any, for trans­fer of appropriations or changes of program to be incorporated in the succeeding appropriations measure, to the President, the Prime Minister, the National Economic and Development Authority, the Ministry of the Budget and the Batasang Pambansa through the Speaker.

SEC. 13. Separability.—If any provision of this Act is declared unconstitutional, the remaining provisions shall remain in force.

SEC. 14. Effectivity.—This Act shall take effect immediately upon approval.

Approved, September 11, 1981.