TRANSFORMING THE PUBLIC STATES AUTHORITY INTO THE PHILIPPINE RECLAMATION AUTHORITY, TRANSFERRING ITS NON-RECLAMATION ASSETS AND LIABILITIES TO THE DEPARTMENT OF FINANCE, AND SEP…

WHEREAS, the Public Estates Authority (PEA)
created under Presidential Decree No. 1084 (Creating the Public Estates,
Defining its Powers and Functions, Providing Funds Therefor and for
Other Purposes) was established to provide for a coordinated, economical
and efficient administration of lands and real estate, especially
reclaimed lands, belonging to, managed and/or operated by the government
and was further designated to be primarily responsible for integrating,
directing and coordinating all reclamation projects for and on behalf
of the National Government;

WHEREAS, the PEA is tasked to
develop, improve, administer, deal in, subdivide, dispose, lease and
sell any and all kinds of lands, buildings, estates and other forms of
real property owned, managed, controlled and/or operated by the
government and thus held assets in behalf of the National Government;

WHEREAS,
in the year 2002 the President of the Philippines proposed to Congress
the abolition of the PEA and directed the PEA to phase out its
activities and transfer the assets held by it to the appropriate
agencies of the National Government;

WHEREAS, reclamation has
been identified as one of the primary sources of Government revenue
under the Medium Term Philippine Development Plan for the years
2004-2010 and should be managed by one authority;

WHEREAS, the
National Development Company (NDC) was created to serve as an agency of
the National Government in furtherance of government’s economic policies
by engaging or investing in commercial, industrial, agricultural,
mining and other enterprises where government investment is necessary to
foster economic development;

WHEREAS, the Department of Finance
(DOF) is the principal agency responsible for the generation and
management of financial resources of the government;

WHEREAS, the PEA has been placed under the supervision and control of the DOF;

WHEREAS,
pursuant to the Administrative Code of 1987, the President has the
continuing authority to reorganize the National Government.

NOW,
THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the powers vested in me by the Constitution
and existing laws, do hereby order:

SECTION 1. Transformation of the PEA. The PEA is hereby transformed into the Philippine Reclamation Authority (PRA).
The PRA shall perform all the powers and functions of the PEA relating
to reclamation activities. The remaining non-reclamation enterprises,
including the management of the PEA-Tollway Corporation (PEA-TC), are
hereby transferred to the National Development Company. 

SECTION 2. Earnings of the PEA-TC.
The Chairman and members of the Board of the PEA-TC as well as its
president shall be appointed by the President of the Philippines. The
management of PEA-TC shall be under the supervision and control of the
NDC. It shall declare monthly dividends and remit the same to the PRA in
the amount needed by the PRA to perform its functions. The balance of
the earnings of the PEA-TC shall be remitted to the National Government.

SECTION 3. Transfer of Assets and Liabilities of the PEA.
With the exception of the assets and liabilities of the PEA on its
reclamation functions which shall be retained with the PRA, all its
other assets and liabilities are hereby transferred without cost to the
DOF. The DOF shall then transfer such assets and liabilities to the
appropriate agencies of the National Government.

SECTION 4. Separability Cause.
Any portion or provision of this Executive Order that may be declared
unconstitutional shall not have the effect of nullifying other portions
or provisions of the Order for as long as such remaining portions can
still subsist and give effect.

SECTION 5. Repealing Clause.
All executive issuances, rules and regulations or parts thereof which
are inconsistent with this Executive Order are hereby revoked, amended
or modified accordingly.

SECTION 6. Effectivity. This Executive Order shall take effect immediately.

Adopted: 26 Oct. 2004