AUTHORIZING THE UNDERTAKING OF EDUCATIONAL DEVELOPMENT PROJECTS, PROVIDING FOR THE MECHANICS OF IMPLEMENTATION AND FINANCING THEREOF, AND FOR OTHER PURPOSES

I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines and
pursuant to Proclamation No. 1081 dated September 21, 1972, and General
Order No. 1, dated September 22, 1972, do hereby decree, order and makes
as part of the law of the land the following measure:

SECTION 1. Title. — This Decree shall be
known as the “Educational Development Decree of 1972.”

SEC. 2. Declaration of Policy. — It is
hereby declared to be the policy of the Government to ensure, within the
context of a free and democratic system maximum contribution of the
educational system to the attainment of the following national
development goals:

(a) To achieve and maintain an accelerating rate of economic
development and social progress;

(b) To assure the maximum participation of all the people in the
attainment and enjoyment of the benefits of such growth; and

(c) To strengthen national consciousness and promote desirable
cultural values in a changing world.

SEC. 3. Statement of Objectives. — To this
end, the educational system aims to:

(a) Provide for a broad general education that will assist each
individual, in the peculiar ecology of his own society, to (1) attain
his potential as a human being; (2) enhance the range and quality of
individual and group participation in the basic functions of society;
and (3) acquire the essential educational foundation for his development
into a productive and versatile citizen;

(b) Train the nation’s manpower in the middle level skill required
for national development;

(c) Develop the high-level professions that will provide leadership
for the nation, advance knowledge through research, and apply new
knowledge for improving the quality of human life; and

(d) Respond effectively to changing needs and conditions of the
nation through a system of educational planning and evaluation.

SEC. 4. Guiding Principles of the Ten-Year
Program.—In order to lay the foundation and to advance the
attainment of these objectives, a ten-year national education
development program shall be formulated based on the following:

(a) Improvement of curricular programs and quality of instruction
of all levels by way of upgrading physical facilities, adoption of
cost-saving instructional technology, and training and re-training of
teachers and administrators;

(b) Upgrading of academic standards through accreditation schemes,
admissions testing and guidance counselling;

(c) Democratization of access to educational opportunities through
the provision of financial assistance to deserving students, skills
training programs for out-school youth and continuing education program
for non-literate adults;

(d) Restructuring of higher education to become more responsive to
national development needs through a, planned system of incentives and
assistance to both public and private colleges and universities and
synchronization of curricular programs, staffing patterns and
institutional development activities;

(e) Expansion of existing programs and establishment of new ones
designed to train middle-level technical and agricultural manpower; and

(f) Instituting reform in the educational financing system to
facilitate the shift of funding responsibility for elementary and
secondary education from the national to the local government, thereby
increasing government participation in higher education.

SEC. 5. Educational Development Projects. —
The above stated objectives shall be attained through the undertaking
of the following educational development projects:

(a) Management study of the Department of Education and Culture and
institution of administrative improvements therein;

(b) Establishment and/or operation or improvement of secondary
schools which may include provision for extension services, facilities
and equipment to allow the use of expanded and improved curriculum;

(c) Establishment and/or operation, upgrading or improvement of
technical institutes, skills training centers, and other non-formal
training programs and projects for the out-of-school youth and the
unemployed in collaboration with the programs of the National Manpower
and Youth Council;

(d) Curriculum and staff development including mathematics and
science teaching;

(e) Expansion of agricultural secondary and higher education
programs and extension activities which may include radio broadcasting
and rural training services, and the provision of facilities therefor
including seed capital and revolving funds;

(f) Design, utilization and improvement of instructional technology
and development/production of textbooks and other instructional
materials; and

(g) Assistance and incentives, including loans and grants, toward
the planned development and improvement of programs and facilities in
both public and private universities, colleges and schools.

In addition, other educational development projects necessary
pursuant to the objectives of this Decree are likewise to be undertaken:
Provided, That for such projects to qualify under this Decree,
the same must be consistent with the principles enunciated in Section 4
hereof, supported by sufficient studies, data and plans of operation
and implementation, endorsed by the National Board of Education to, and
approved by an Education Special Committee, hereinafter provided,
to form part of the educational development program.

SEC. 6. Working Arrangements. — For the
attainment of the objectives of this Decree, an Education Special
Committee, composed of the Secretary of Education and Culture as
Chairman and the Secretary of Finance and the Commissioner of the Budget
as members, is hereby created which shall;

(a) Approve and evaluate the specific-projects, endorsed to it by
the National Board of Education, to be financed out of the resources provided
for in this Decree; and

(b) Administer the Educational Institutions Development Fund as
hereinafter provided, except that the resources accruing into
the Fund shall be managed by reputable fund managers or financial
institutions.

The National Board of Education, as reorganized pursuant to
Presidential Decree No. 1, dated September 24, 1972, shall, in addition
to its functions, perform the following:

(a) Formulate education objectives and policies consistent with
those enunciated in Section 2 hereof; and

(b) Provide policy guidelines in the administration of the
assistance and incentive programs provided for in Section 5 (g)
hereof, which shall include a system of educational priorities
consistent with national, regional and/or local requirements for
education and skills training, and such other procedures and
requirements as will ensure the continual upgrading of the quality of
education, the rationalization and institutional growth, and the
democratization of access to education.

In the discharge of its functions, the National Board of Education
shall be assisted by an office of planning and research known as
Planning Service in the Department of Education and Culture.

A project unit to be known as the Educational Development Projects
Implementing Task Force is hereby established under the Office of the
Secretary of Education and Culture to be headed by a Director and be
composed of technical staff members and such consultants as are
necessary. Its functions are:

(a) To supervise and implement foreign-assisted development
projects; and

(b) To implement such other development projects as may be assigned
to it by the Secretary of Education and Culture,

Where the project involves an office, agency or instrumentality of
the Government other than the Department of Education and Culture,
appropriate working arrangements shall be established by the Educational
Department Projects Implementing Task Force and the office, agency or
instrumentality concerned, including the turn over of the project upon
its completion to such office, agency or instrumentality to be
integrated with and be part of the regular activities thereof.

SEC. 7. Authority to Borrow. — The
President of the Philippines, in behalf of the Republic of the
Philippines, may contract loans, credits or indebtedness with any
foreign source or lender, under such terms and conditions as may be
agreed upon, any provisions of law, including Republic Act Numbered
Forty-eight hundred and sixty as amended by Republic Act Numbered
Sixty-one hundred and forty-two, Act Numbered Forty-two hundred and
thirty-nine, Commonwealth Act Numbered One hundred thirty-eight,
Commonwealth Act Numbered Five hundred forty-one, Republic Act No. 912,
Republic Act Numbered Fifty-one hundred eighty-three, and other related
laws to the contrary notwithstanding, for a total amount not exceeding
one hundred million United States dollars or the equivalent thereof in
other currencies, as may be necessary to meet the direct and indirect
foreign exchange requirements of the projects authorized under this
Decree, to cover the costs of feasibility studies, equipment,
machineries, supplies, construction, installation and related services
of any such projects: Provided, That the loans, credit or
indebtedness authorized herein shall be incurred on terms of payment of
not less than ten (10) years.

SEC. 8. Utilization of Proceeds. — The
proceeds of such loans, credits or indebtedness, as well as the
appropriations under Section 9 hereof, shall be used exclusively for
financing the educational development projects authorized under this
Decree: Provided, That for the purpose of ensuring continued
assistance to the planned development and improvement of programs and
facilities in both public and private universities, colleges and
schools, there is hereby authorized to be established an Educational
Institutions Development Fund in an amount of not less than ten million
pesos (P10,000,00), Philippine currency, annually for a period of ten
(10) years. The said Fund shall be administered as a separate fund, and
lending or relending operations to private universities, colleges and
schools shall be subject to the rules and regulations to be promulgated
by the National Board of Education with the approval of the Secretary of
Finance.

Cities, provinces and municipalities may undertake educational
development projects pursuant to the objectives of this Decree and are
hereby authorized to avail themselves of proceeds of loans, credits or
indebtedness herein authorized as well as the appropriations under
Section 9 hereof and receive financial assistance subject to such
conditions as may be provided for and/or promulgated by the
National Board of Education pursuant to this Decree.

SEC. 9. Appropriations. — In addition to
the proceeds of the loans credits or indebtedness mentioned in Section 7
hereof, there is hereby appropriated for the projects authorized herein
in the sum of five hundred million pesos (P500,000,000) out of the
funds in the National Treasury not otherwise appropriated which shall be
programmed and released in the following manner: fifty million pesos
(P50,000,000) for Fiscal Year 1972-73 and fifty million pesos
(P50,000,000) annually thereafter until June thirty, nineteen hundred
eighty-two: Provided, That notwithstanding the said schedule
releases in i given year shall be adjusted in accordance with the actual
requirements of the projects being implemented during said fiscal year:
Provided, further, That should there be any surplus in the
annual appropriations herein provided, the same shall accrue to
the Educational Special Account herein created in the General Fund
which shall be made available to finance the projects during the
subsequent fiscal years.

SEC. 10. Creation of Educational Special
Account. — There is hereby established in the National Treasury an
Educational Special Account to meet the appropriations herein provided,
which shall be constituted from the following sources:

(a) Proceeds from bond issues as provided for under
Section 11 of this Decree;

(b) Twenty million pesos (P20,000,000) annually from the share of
the National Government in the Special Education Fund under Republic Act
Numbered Fifty-four hundred forty-seven as provided in Section
12 hereof;

(c) Fifteen million pesos (P15,000,000) from the Special Science
Fund for Fiscal Year 1972-73, and fifty per centum (50%), annually
thereafter until June 30, 1972, of the total annual receipts from the
taxes provided for under Republic Act Numbered Fifty-four
forty-eight, as provided in Section 13 hereof;

(d) Future savings of the Department of Education and Culture that
may result from the implementation of reforms consequent to management
study, as provided in Section 14 hereof; and

(e) Augmentations from the General Funds which are hereby
authorized in cases where the above sources are not sufficient to cover
expenditures required in any year, as provided in Section 15 of
this Act.

The Department of Education and Culture is hereby authorized to
receive and spend or utilize donations and/or bequests made in pursuance
of the purposes and for projects enunciated in this Decree which
donations and/or bequest shall be exempt from the payment of gift taxes,

SEC. 11. Bond Issues. — The Secretary of
Finance may issue and sell bonds not exceeding twenty million pesos
annually under the authority of Republic Act Numbered Four thousand
eight hundred sixty-one, any provision of law to the contrary
notwithstanding.

SEC. 12. Portions of the Special Education Fund.
— Any provision of the law to the contrary notwithstanding, effective
July 1, 1972, until June 30, 1982, twenty million pesos (P20,000,000) of
the annual share of the National Government from the Special

Education Fund provided for under Republic Act Numbered
Fifty-four hundred and forty-seven shall accrue to the Educational
Special Account herein provided. Thereafter, the said share
shall accrue to the General Fund.

In this connection, the shares of the local governments from the said
Fund may be used by them to finance such projects as may be established
in their locality under the authority of this Decree regardless of any
restrictions imposed thereon.

SEC. 13. Portion of Special Science Fund. —
Any provision of law to the contrary notwithstanding, effective upon
approval of this Decree, fifteen million pesos (P15,000,000) of the
Special Science Fund established under Republic Act Numbered fifty-four
hundred and forty-eight as amended is hereby transferred to the
Educational Special Account herein provided. Starting July 1,
1972, until June 30, 1982, fifty per centum (50%) of the total
collections from the taxes imposed under Republic Act Numbered
fifty-four hundred and forty-eight as amended shall accrue to the
Educational Special Account. Thereafter, said portion shall accrue to
the General Fund.

SEC. 14. Future Savings. — Such amount of
savings resulting from the implementation of reforms consequent to the
management study authorized under Section 5 as may be necessary to
prosecute the projects under this Decree shall accrue to the Educational
Special Account.

SEC. 15. Augmentation from General Fund. —
In cases where funds from sources specified in Section 10 (a), (b), (c),
and (d), are not sufficient to meet the requirements in any fiscal
year, such amounts as are necessary to meet such requirements are hereby
appropriated out of the funds in the General Funds not otherwise
appropriated, and transferred to the Education Special Account.

SEC. 16. Tax Exemption. — The loans,
credits or indebtedness incurred pursuant to this Decree, the payment of
the principal, interest and other charges thereon, the earnings of the
fund created under Section 8, as well as the importation of articles,
materials, equipment, machineries and supplies, including all building
materials by the Department of Education and Culture or other offices,
agencies or instrumentalities of the Government and by private or
chartered entities authorized by Education Special Committee to
undertake the projects authorized in this Act shall be exempt from all
taxes, duties, fees, imposts, other charges and restrictions, including
import restrictions, imposed by the Republic of the Philippines or any
of its agencies or political subdivisions. The Secretary of Finance
shall promulgate rules and regulations necessary for the purpose.

SEC. 17. Additional Appropriations. — There
is hereby authorized to be appropriated, out of any funds in the
National Treasury not otherwise appropriated, such sums as may be
necessary to pay the principal, interests and other charges on the
loans, credits or indebtedness incurred under the authority of this
Decree as and when they become due.

SEC. 18. Repealing Clause. — All laws,
executive orders, rules or regulations or parts thereof which are
inconsistent with this Decree are hereby repealed and/or modified
accordingly.

SEC. 19. Effectivity. — This Decree shall
take effect immediately.

Done in the City of Manila, this 29th day of September, in the year
of Our Lord, nineteen hundred and seventy-two.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) ROBERTO V. REYES
		Acting Executive Secretary