REQUIRING ALL DEPARTMENTS AND AGENCIES WITH FOREIGN ASSISTED PROJECTS COST OVERRUNS OVER 10% TO BE AUTOMATICALLY RETURNED TO THE NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY FOR …

WHEREAS, Executive Order No. 230 dated 22 July 1987 provides among the powers and functions of the National Economic and Development Authority (NEDA): “The Authority, after due consultation with the private sector, community organizations and beneficiaries, local government units and appropriate public agencies, shall be responsible for coordinating the formulation of continuing, and integrated socio-economic development plans, policies and programs, including the formulation of annual and medium-term public investment programs, programming of official development assistance in the form of grants and concessional loans from foreign governments and multilateral agencies and organizations and the monitoring and evaluation of plan implementation.”

WHEREAS, the guidelines and procedures of the NEDA Investment Coordinating Committee (ICC) provide that: “in case a project is cleared by the ICC prior to its appraisal by a prospective funding source and the project experiences an increase/increment of more than 10 percent in total project cost after appraisal, then the project has to undergo ICC reevaluation. The proponent should be able to explain the basis for the revised cost figures. Projects with revisions in scope in any or all of its components shall likewise undergo ICC reevaluation to the extent that this would involve a corresponding change in project cost. However, if the change in project cost and benefits have already been sufficiently captured in the earlier sensitivity analysis and the project remains viable, then reevaluation may not be necessary. Instead, ICC clearance for the cost change shall be secured.”

NOW THEREFORE I, GLORIA M. ARROYO, President of the Philippines, by the powers vested in me by law, do hereby order:

All Departments or agencies with foreign assisted projects’ cost overruns over 10 percent shall be automatically returned to the Investment Coordinating Committee of the National Economic and Development Authority for re-evaluation.

DONE in the City of Manila on this 24th day of July in the Year of our Lord Two Thousand and Eight.

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary