AUTHORIZING AGENCIES OF GOVERNMENT IMPLEMENTING INFRASTRUCTURE PROJECTS TO ADOPT PRE-PAYMENT BASIS IN THE PROCUREMENT OF THEIR CEMENT REQUIREMENT

WHEREAS, one of the major problems adversely
affecting the implementation of infrastructure projects is the shortage
of cement;

WHEREAS, Section 88 (1) of Presidential
Decree No. 1445 otherwise known as the Government Auditing Code of the
Philippines provides that:

“Except with the
prior approval of the President (Prime Minister) the government shall
not be obliged to make an advance payment for services not yet rendered
or for supplies and materials not yet delivered under any contract
therefor. No payment, partial or final, shall be made on any such
contract except upon a certification by the head of the agency concerned
to the effect that the services or supplies and materials have been
rendered or delivered in accordance with the terms of the contract and.
have been duly inspected and
accepted.”

WHEREAS, the grant of authority
to the agencies of government implementing infrastructure projects to
adopt pre-payment basis in the procurement of their cement requirement,
subject to certain limitations, would accelerate the implementation
these projects;

NOW, THEREFORE, I, FIDEL V. RAMOS,
President of the Republic of the Philippines, by virtue of the powers
vested in me by law, do hereby order:

SECTION 1. All
government agencies implementing infrastructure projects are hereby
authorized to adopt pre-payment basis in the procurement of their cement
requirement as an exception to the prohibition under Section 88 (1) of
Presidential Decree No. 1445.

As used in this
Memorandum Order the phrase “infra-structure project” shall men
construction, improvement or rehabilitation of roads and bridges,
railways, airports, seaports, communication facilities, irrigation,
flood control and drainage, water supply and sewerage systems, shore
protection, power facilities, national buildings, school buildings,
hospital buildings, and other related construction projects that form
part of the government’s capital investment.

SECTION
2. The authority granted herein shall remain in force and effect for a
period of six months (6) from date hereof.

SECTION 3.
This Memorandum order shall take effect
immediately.

Adopted: 17 Jan.
1996

By
the President: