AMENDING PRESIDENTIAL DECREE NO. 690, THE REVISED CHARTER OF THE SOUTHERN PHILIPPINES DEVELOPMENT AUTHORITY.

WHEREAS, it is the policy of the Government to foster and
accelerate the balanced growth of the Southern Philippines (Mindanao, Sulum
Basilan and Tawi-Tawi) for the national economic, social and political
stability;

WHEREAS, surveys and studies indicate a pressing need to
accelerate the economic growth and development of the region to make it more
responsive to the national plans and policies within the context of national
solidarity with the leadership, support and total commitment os the
government;

WHEREAS, sustained development of the region will rely
heavily on the capabilities of the people of the area to participate in the
total effort in undertaking integrated development projects under one
authoritative agency;

WHEREAS, the Southern Philippine Development Administration
has been created by Presidential Decree No. 690 to serve as the specifi agency
of the Government which is responsible for the initiation and/or implementation
of development projects in Southern Philippines; and

WHEREAS, the Southern Philippines Development Administration
in order to more effectively and vigorously promote and enhance the development
of Mindanao and Sulu Archipelago, should be restructured and strengtherned;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
order and decree that Presidnetial Decree No. 690, otherwise known as the
Southern Philippines Development Administration Charter, be amended to read as
follows:

SECTION 1. Short Title.— This Decree shall be known
as the “Revised Charter of the Southern Philippines Development Authrity.”

SEC. 2. Declaration of Policy — It is hereby
declared the policy of the Government to foster and accelerate the balanced
grovth of the Southern Philippines within the context of national plans and
policies, by the activation of mass participation in the processes of
development to be exercised through a unified responsive agency;
democratizationof opportunity for improvement and maximazationof benefits in the
utilization and allocation of all the resources that may be available;
utilization of income and profit for economic growth and development and in
support of the required social innovations.

SEC. 3. Creation of the Southern Philippines Development
Authority. —There is hereby created a body corporate to be known as the
Southern Philippines Development Authority, hereinafter referred to as the
“Authority” which shall be governed by the provisions of the this Decree.
Generally, the Authority shall undertake essentially developmental and
economically viable ventures within its territorial boundaries of operations
which is limited to the geographical coverage of Regions IX, X, XI and XII.

SEC. 4. Principal Office; Term — The principal
office of the authority shall be in Davao City. It may, however, establish such
branches, subsidiaries, offices or agencies as it may deem proper and necessary
for the attainment of the objectives of this Decree . The Authority shall have a
term of fifty (50) years from the issuance hereof, renewable for the same period
unless otherwise provided by law.

SEC. 5. Purposes. — The Authority shall have the
following purposes and objectives:

1. To promote the development of Southern Philippines by initiating and/or
   undertaking, by itself or otherwise, development and/or business projects of
   corporate, economic nature whether in agriculture, power, infrastructure,
   energy, public utilities, land development, manufacturing, exploration and/or
   utilization of natural resources and other fields or projects;
2. To make investments in any field as would enhance the economic development
   of the region;

SEC. 6. Powers and Functions of the Authority. —
The Authority shall exercise the following powers and perform functions:

1. To succeed on its corporate name, with the power of succession.
2. To sue and be sued in such corporate name.
3. To adopt, alter and use a corporate seal, which shall be judicially noticed.
4. To undertake the programs and projects specified or envisioned under Section
   5 hereof.
5. To make contracts of any kind and description to enable it to discharge its
   functions and attain the objectives provided in this Decree.
6. To adopt, amend and repeal its by-laws
7. To acquire, lease or hold such personal and real property as it deems
   necessary or convenient in the transaction of its business and to lease out,
   mortgage, sell, alienate or otherwise dispose any such personal and real
   property held by it.
8. To hold, own, possess, lease, convey and mortgage agricultural lands,
9. To engage or invest in or extend, loans and guarantees to, or enter, into
   joint ventures with Filipino and foreign investors as it may deem proper, and
   necessary or contributory to the economic development of Southern Philippines.
10. To exercise the right of eminent domain as may be necessary for the purpose
    for which the corporation is created.
11. Whenever essential to the proper transaction of its business or to carry out
    the purposes of its organization, to contract indebtedness end issue bonds.
12. To charge and collect fees dues or other charges at reasonable rates for
    such services and/or facilities that may be provided by the
    Authority.

SEC. 7. Availabity and Utilization of Public Lands
— Upon request by the Authority and certification by the President, the
Bureau of Lands and Bureau of forestry shall immediately make available and
deliver necessary public lands, for the Authority’s priority projects. The
Authority is hereby empowered and authorized to hold, administer, utilize,
encumber or otherwise deal with such land in the pursuit of the said priority
projects.

SEC. 8. Capital Stock — The Authority shall have an
authorized capital stock of Five Hundred Million Pesos (P500,000,000.00) the
amount to be fully subscribed and paid by the National Government, to be
appropriated out of any funds in the National Treasury not otherwise
appropriated. The present assets of the Authority may be revalued as of the date
of the effectivity of this Decree and such revaluation may be reflected in the
Authority’s capitalization. Existing liabilities of the Authority due the
National Government are hereby converted as capital of the Authority.

SEC. 9. Operating Expenses — There is hereby
appropriated the sum of Two Million Pesos out of the funds of the National
Treasury not otherwise appropriated for the operating costs of the authority for
the remaining period of fiscal Year 1980. Thereafter and for subsequent fiscal
years, the amount of Ten Million Pesos shall be provided in the General
Appropriations Act to cover the operating expenses of the Authority.

SEC. 10. Powers to Issue Bonds — Whenever the Board
Directors may deem, it necessary for the authority to incur an indebtedness or
to issue bonds to carry out the provisions of this Decree, it shall by
resolution, so declare and state the purpose for which the proposed debt is to
be incurred. It order that such resolution be valid, it shall be passed by the
affirmative vote of at least a simple majority of all the members of such Boad
and approved by the President of the Philippines upon the recommendation of the
Secretary of Finance, after consultation with the National Economic and
Development Authority and the Monetary Board of the Central Bank.

SEC. 11. Sinking Fund — A sinking fund shall be
established by the Authority in such manner that the total annual contributions
thereto, accrued at such rate of interest as may be determined by the Minister
of Finance in consultation with the Monetary Board, shall be sufficient to
redeem at maturity the bonds issued under the provisions of this Decree. Said
fund shall be under the custody of the Central Bank of the Philippine which
shall invest the same in such manner as the Monetary Board may approve, charging
all expenses of such investment of said sinking fund, and crediting the same
with the interest on investments and other income accruing thereto„

SEC. 12. Government Guarantee — The Republic of the
Philippines hereby guarantees the payment of the Authority of both the principal
and interests on the bonds, debentures, collaterals, notes or such other
obligations incurred by the Authority by virtue of the provisions of this
decree, and shall pay the said principal and interest in case the Authority
fails to pay the same, The Minister of Finance shall pay the amount thereof, to
be appropriated from the funds of the National Treasury not otherwise
appropriated, and thereupon to the extend of the amount so paid, the Government
of the Republic of the Philippines shall succeed to all the rights of the
holders of such bonds, debentures, collaterals, notes or other obligation-unless
the amount be refunded by the Authority within a reasonable time.

SEC. 13. Foreign Loans — The Authority is hereby
authorized to contract loans, credit and indebtedness, in any convertible
foreign currency or capital goods from time to time from foreign governments or
any international financial institutions or fund sources, the total outstanding
amount of which, exclusive of interest charges, shall not exceed two hundred
million US Dollars or the equivalent thereof in other currencies at any one time
on such terms and conditions as may be agreed upon.

The President of the Philippines, by himself, or through the Minister of
Finance or the Governor of the Central Bank is hereby further authorized to
guarantee, absolutely and. unconditionally, as primary obligor and not as surety
merely, in the name and on behalf of the Republic of the Philippines, the
payment of any loans herein authorized, as well as the performance of all or any
of the obligations undertaken by the Authority, pursuant to loan agreements
entered into with foreign government or any international financial
institutions.

In the negotiation and contracting of any loan, credit or indebtedness under
this Section, the provision of Section Four of Republic Act Numbered Four
thousand Eight Hundred Sixty, as provided in Section Five of Republic
Act numbered Six Thousand One Hundred Forty-Two, as amended, shall apply.

The loans, credits and indebtedness contracted under this subsection and the
payment of the principal, interest and other charges thereon, as well as the
importation of machinery, equipment, materials and supplies by the authority,
paid from the proceeds of any loan, credit or indebtedness incurred under this
Decree shall also be exempt from all taxes, fees, imposts, other charges and
restrictions imposed by the Republic of the Philippines, or any of its agencies
and political subdivisions.

SEC. 14. Board of Directors — The affairs and
business of the Authority shall be directed and its property managed and
preserved, unless provided in this Decree, by a Board of Directors,
hereinafter referred to as the Board, consisting of eleven (11) members who are
as follows:

1. The Minister of Human Settlements who shall act as the Chairman of the Board
   of Directors;
2. Six (6) regular members to be appointed by the President;
3. The two Chairman of the Lupong Tagapagpaganap Ng Pook of Regions IX and XII
   and the two Chairmen of the Regional Development Councils of Regions X and XI,
   as ex-officio members of the Board.

The members of the Board shall receive a par diems of Seven Hundred Fifty
Pesos for every meeting of the Board attended; Provided, that in no
case shall such per diems received by each exceed Two Thousand Two Hundred and
Fifty Pesos per month. They shall likewise be reimbursed by the Authority for
actual expenses for travelling and subsistence allowance incurred in attending
such meetings, subject to the usual auditing and accounting requirements.

SEC. 15. Organizational Structure — The Board of
Directors shall determine the organizational structure , staffing pattern and
pay scales of the Authority and the officers and employees thereof. The Board
may reorganize the same and create or abolish divisions, of icons, units,
branches or agencies therein, as the exigencies of the affairs of the authority
may require .

SEC. 16. Administration — The Corporation shall
have an Administrator to be appointed by the President of the Philippines who
shall be the Chief Executive Officer of the Authority and ex-Officio
Vice-Chairman of the Board of Directors.

The Administrator shall have the following powers, duties and
responsibilities:

1. To submit to the Board for consideration policies and measures which, in his
   judgment, are necessary to carry out the purposes and provisions of this Decree.

2. To prepare the budget of the Authority for approval of the Board.
3. To execute and administer the policies and measures approved by the Board.
4. To direct and supervise the operations and internal administration of the
   Authority. He may delegate certain administrative responsibilities to other
   officers of the Authority subject to the rules and regulations of the Board.
5. To appoint all employees of the Authority except the heads of departments
   and divisions whose appointments shall be made by the Board of Directors upon
   his recommendations; and to remove, dismiss or otherwise discipline for cause,
   such employees in accordance with the standard guidelines for recruitment,
   employment and discipline of personnel which shall be enacted by the Board.
6. To represent the Authority in all dealings with other offices, agencies and
   instrumentalities of the Government and with all persons and. entities, public
   or private.
7. Subject to the approval of the Board, to determine the rates of
   compensation, allowances, honoraria and such other additional compensation which
   the Authority is hereby authorized to grant its officers, technical staff and
   consultants, including the necessary detailed personnel;
8. To exercise such other powers as nay be vested in him by the
   Board.

The Administrator shall receive a compensation of Ninety Six Thousand Pesos
per annum.

SEC. 17. Other Officers — The Administrator shall
be assisted in carrying out the activities of the Authority by one or more
Deputy Administrators who shall be appointed and removed for cause by the board
upon recommendation of the Authority. Their salaries shall be fixed by the Board
pursuant to Section 15 hereof.

SEC. 18. General Counsel — The Government Corporate
Counsel shall be the General Counsel of the Authority who shall exclusively
handle, control and supervise the legal affairs of the authority and its
subsidiaries are hereby authorized to appropriate and pay such amount
representing assessments by the Office of the Government Corporate Counsel for
its operation and maintenance approved by the Office of the President. The
Government Corporate Counsel may designate any of the lawyers in the Office of
the Government Corporate Counsel to assist him in the discharge of his
functions, The Authority may extend such allowances to such lawyers so
designated in such amount as may be approved by the Board.

SEC. 19. Merit System — All officials and employees
of the Authority shall be selected and appointed on the basis of merit and
fitness in accordance with the comprehensive and progressive merit system to be
established by the Authority immediately upon its organization in accordance
with Civil Service Law, rules and regulations. The recruitment, transfer,
promotion and dismissal of all its personnel, including temporary workers shall
be governed by such merit system.

SEC. 20. Gratuity — An employee or Officer of the
Authority not selected nor appointed by the Authority in case of future
reorganization or who refuses such appointment shall be paid the money value of
his accumulated vacation and sick leave, and such retirement gratuity as may be
due him linger existing retirement laws. Any of the employees who do not qualify
under any existing retirement law may be paid one month salary for every year of
service, payable in lump sum. For this purpose, there is hereby appropriated out
of any funds in the national Treasury not otherwise appropriated the sum of Two
Million Pesos (P2,000,000,00) to provide for their separation gratuities,
accumulated vacation and sick leaves and/or retirement, when and if, payable and
due to them.

SEC. 21. Auditor — The Commission on Audit shall
appoint, subject to the approval of the Board, a representative who shall be the
Auditor of the Authority and such personnel as may be necessary to assist said
representative in the performance of his duties. Subsidiaries of the Authority
created and registered with the Securities and Exchange Commission are to be
audited by independent Certified Public Accountant as may be approved, by the
Board.

SEC. 22. Subsidiaries — The Authority shall have
the power to form, establish, organize and maintain subsidiary corporation or
corporations. Such subsidiary or subsidiaries shall be formed in accordance with
the Philippine Corporation Law and existing rules and regulations promulgated by
the Securities and Exchange Commission, unless otherwise provided in
this Decree. In all cases, the Authority shall own initially at least fifty-one
(51%) per centum of the capital stock of each subsidiary.

A subsidiary of the Authority shall have a Board of Directors of at least
five (5) members of which at least one director shall be elected from among the
members of the Board of Directors of the Authority. In addition, the Chief of
Executive Officer of the Authority, or his duly designated representative from
the Authority shall be an ex-officio member of the Board of Directors
of each subsidiary established by the Authority.

Such subsidiaries shall be exempt from the coverage of the Civil Service
Decree, rules and regulations, and Office of Compensation and Position
Classification.

SEC. 23. Relationship With Regional Development Councils
— To effectively implement its purposes, duties powers and functions, the
Authority shall coordinate with, consult or implement its policies and projects
through the Regional Development Councils in Southern Philippines. In addition
to their present powers, duties and functions, the Regional Development Councils
in the Philippines shall have the following functions:

1. Submit recommendation to the Authority on certain economic, development,
   industrial and corporate projects in and for their respective territorial
   jurisdiction;
2. Assist and/or implement such projects as may be approved for their
   respective local governments;
3. Furnish the Authority such data and information in their respective
   territorial jurisdiction which the Authority may deem vital and necessary in the
   pursuit of its purposes and objectives; and
4. Coordinate among themselves in the planning and implementation of their
   respective economic development and industrial projects falling under the
   Authority.

SEC. 24. Donations and Gifts — The Authority shall
have the right to receive donations or bequests which shall be utilized only for
the implementation of the programs and projects of the Authority. Such donations
or bequest shall be exempt from the payment of gift taxes and full amount of
such donations or bequest shall be deductible from the gross income of the donor
for the year during which the same is made.

SEC. 25. Administrative Supervision — The Authority
shall be placed under the Ministry of Human Settlements under the direct
supervision of the Minister of Human Settlements.

SEC. 26. Applicability of the Corporation Law — The
provisions of the Corporation Law, as amended insofar as they are not
inconsistent with this Decree shall be applicable to the operations of the
Authority.

SEC. 27. By Laws and Rules and Regulations — The
Board of Directors shall adopt tits By-Laws promulgate the rules and regulations
to implement the provisions of this Decree which shall take effect upon approval
by the Minister of Human Settlements.

SEC. 28. Separability Clause — Should any provision
of the decree be hold unconstitutional, no other provisions thereof shall be
affected thereby.

SEC. 29. Repealing Clause — All other laws,
decrees, acts, orders, executive orders, rules and regulations or parts thereof
inconsistent herewith are hereby likewise repealed or modified accordingly.

SEC. 30. Effectivity — This Decree shall take
effect immediately.

DONE in the City of Manila, this 26th day of July, in the year of Our Lord,
nineteen hundred and eighty.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JOAQUIN T. VENUS, JR.
		Presidential Assistant