CREATING A MINISTRY OF PUBLIC WORKS AND A MINISTRY OF TRANSPORTATION AND COMMUNICATIONS

WHEREAS, the accelerated pace of
national development requires the effective, purposeful and unified
implementation of public works projects and the effective control and
supervision of transportation and communications facilities and services;

WHEREAS, the development,
rehabilitation, improvement, construction, maintenance and repairs of ports,
flood control and drainage systems, buildings, water supply systems; and other
public works facilities involve the utilization of technologies and manpower
different from those required for the control and supervision of transportation
and communications facilities and services;

WHEREAS, a rational distribution
of the functions of government pertaining to public works on one hand and
control and supervision of facilities and services related to transportation
and communications on the other would enhance the efficiency of government;

WHEREAS, in keeping with the
policy of government to effect continuing reforms in the organizational
structure to enhance efficiency and effectiveness, it is necessary to entrust
in one ministry all functions pertaining to the construction, repair and
maintenance of public works facilities and restructure the organization for the
control and supervision of transportation and communications facilities and
services in the country; and

WHEREAS, under Presidential
Decree No. 1416, the President is given continuing authority to reorganize the
National Government.

NOW, THEREFORE, I, FERDINAND E.
MARCOS, President of the Philippines, by virtue of the powers vested in me by
the Constitution, and pursuant to the authority vested in me by Presidential
Decree No. 1416, do hereby order and ordain:

A. MINISTRY OF
PUBLIC WORKS

SECTION 1. Creation of a
Ministry of Public Works. – There is hereby created a Ministry of Public
Works, hereinafter referred to as the Ministry, which shall assume the public
works functions of the Ministry of Public Works, Transportation and
Communications and such other functions as may be assigned to it by law.

SEC. 2. Authority and
Responsibility. – The authority and responsibility for the Ministry shall
be vested in the Minister of Public Works who shall be assisted by one career
Deputy Minister, unless otherwise determined by the President.

SEC. 3. Functions. – The
Ministry shall be responsible for the construction, maintenance and repair of
portworks, harbor facilities, lighthouses, navigational aids, shore protection
works, airport buildings and associated facilities, public buildings and school
buildings, monuments and other related structures, as well as undertaking
harbor and river dredging works, reclamation of foreshore and swampland areas,
water supply, and flood control and drainage works.

SEC. 4. Organization of the
Ministry. – The Ministry shall be composed of the ministry proper made up
of the immediate Office of the Minister, a Planning Service, an Administrative
Service, a Financial and Management Service, an Infrastructure Computer Center,
a Project Management Information System Service, a Rural Infrastructure Project
Office, and a Building Research and Development Staff; four (4) bureaus namely,
Bureau of Buildings, Bureau of Ports, Harbors and Reclamation, Bureau of Water
Supply, and Bureau of Flood Control and Drainage; and the regional offices.

The Planning Service, the
Administrative Service, and the Financial and Management Service shall perform
functions conforming with those provided for in appropriate provisions of Part
II of the Integrated Reorganization Plan.

The Bureau of Buildings, the
Bureau of Ports, Harbors and Reclamation, the Bureau of Water Supply, and the
Bureau of Flood Control and Drainage shall correspondingly absorb the
applicable functions of the divisions of the Bureau of Public Works which is
hereby abolished pursuant to Section 19 of this Executive Order.

The Infrastructure Computer
Center, the Building Research and Development Staff, and the Rural
Infrastructure Project Office of the Ministry of Public Works, Transportation
and Communications are reconstituted in the Ministry with the same functions.

The Ministry shall have regional
offices in such places and of such number as may be authorized under Article I,
Chapter III Part II of the Integrated Reorganization Plan, as amended.

SEC. 5. Relationship Between
the Ministry Proper, the Bureaus and the Regional Offices. – The Office of
the Minister shall have direct line supervision over the bureaus and regional
offices. The ministry proper shall be responsible for developing the
implementing programs for the Ministry.

The Bureaus shall be essentially
staff in character and as such, shall exercise only functional supervision over
the regional offices.

The regional offices shall
constitute the operating arms of the ministry proper with responsibility for
directly implementing the plans and programs of the Ministry in accordance with
adopted policies, standards and guidelines.

B. MINISTRY OF
TRANSPORTATION AND COMMUNICATIONS

SEC. 6. Creation of a
Ministry of Transportation and Communications. – There is hereby created a
Ministry of Transportation and Communications, hereinafter referred to as the
Ministry, which shall be the primary policy, planning, programming,
coordinating, implementing, regulating and administrative entity of the
executive branch of the government in the promotion, development, and
regulation of a dependable and coordinated network of transportation and
communication systems in pursuance of the following objectives:

a. Promote the development of a
dependable and coordinated network of transportation systems;

b. Guide government and private
investments in the development of the country’s inter-modal transport and
communication systems in a most practical, expeditious, and orderly fashion for
maximum safety, service, and cost effectiveness;

c. Impose appropriate measures
so that technical, economic and other conditions for the continuing economic
viability of the transport and communications entities are not jeopardized and
do not encourage inefficiencies and distortion of traffic patronage;

d. Provide, extend and operate
by itself or through or together with other entities, private or government,
local or national, telephone, telegraph, telex and other public
telecommunications services throughout the country whenever economic, social
and political development activities warrant the provision thereof: Provided,
however, That the national economic viability of the entire network or
components thereof is maintained at reasonable rates;

e. Develop an integrated
nationwide transmission system by itself or through or together with other
entities in accordance with national and international telecommunications
service standards to meet all telecommunications service requirements
including, among others, radio and television broadcast relaying, leased
channel services and data transmission;

f. Establish, operate and
maintain by itself or through or together with other entities an international
switching system for incoming and outgoing international telecommunications
services;

g. Encourage the development of
a domestic telecommunications industry in coordination with the concerned
entities, particularly the manufacture of communications/electronics equipment
and components to complement and support, as much as possible, the expansion,
development, operation and maintenance of the nationwide telecommunications
network; and

h. Provide for a safe, fast,
reliable and efficient postal system for the country.

SEC. 7. Authority and
Responsibility. – Authority and responsibility for the Ministry shall be
vested in the Minister of Transportation and Communications who shall be
assisted by one career Deputy Minister, unless otherwise determined by the
President.

SEC. 8. Functions. – The
Ministry shall have the following functions:

a. Coordinate and supervise all
activities of the Ministry relative to transportation and communications;

b. Formulate and recommend
national policies and guidelines for the preparation and implementation of an
integrated and comprehensive transportation and communications system at the
national, regional and local levels;

c. Establish and administer
comprehensive and integrated programs for transportation and communications,
and for this purpose, may call on any agency, corporation, or organization,
whether government or private, whose development programs include
transportation and communications as an integral part to participate and assist
in the preparation and implementation of such programs;

d. Regulate, whenever necessary,
activities relative to transportation and communications and prescribe and
collect fees in the exercise of such power;

e. Assess, review and provide
direction to transportation and communications research and development
programs of the government in coordination with other institutions concerned;
and

f. Perform such other functions
as may be necessary to carry into effect the provisions of this Executive
Order.

SEC. 9. Organization of the
Ministry. – The Ministry shall be composed of the ministry proper made up
of the immediate Office of the Minister, an Administrative Service, a Financial
and Management Service and a Planning Service; four (4) bureaus, namely, Bureau
of Land Transportation, Bureau of Air Transportation, Bureau of
Telecommunications, and Bureau of Posts; and a National Telecommunications
Commission.

The Administrative Service,
Financial and Management Service, and Planning Service shall perform functions
conforming with those provided for in appropriate provisions of Part II of the
Integrated Reorganization Plan.

The Board of Transportation
created under Article III, Chapter I, Part X of the Integrated Reorganization
Plan, as amended, shall be under the administrative supervision of the Ministry
and shall continue to exercise the powers and functions entrusted to it by law.
The Board shall have a technical staff.

SEC. 10. Bureau of Land
Transportation. – The Land Transportation Commission is hereby renamed
Bureau of Land Transportation and shall continue to perform its regulatory and
enforcement functions, including the registration of public utility vehicles
and the enforcement of the decisions of the Board of Transportation with regard
to public utility vehicles.

The Director of Land
Transportation shall be an ex-officio member of the Land Transportation
Division of the Board of Transportation.

SEC. 11. Bureau of Air
Transportation. – The Civil Aeronautics Administration is hereby renamed
Bureau of Air Transportation and shall continue to perform its functions
relating to the promotion and development of policies, plans, programs and
standards for the construction and maintenance of airports and their facilities
including buildings and runways. The repair and maintenance of these facilities
shall be the responsibility of the Bureau: Provided, however,
That the construction of runways and the terminal buildings and related
structures shall be done by the Ministry of Public Works or Ministry of Public
Highways as the case may be, at the instance of the Bureau.

The Director of Air
Transportation shall be an ex-officio member of the Civil Aeronautics Board.

SEC. 12. Bureau of Posts.
– The Bureau of Posts shall continue to be responsible for providing a safe,
fast, reliable and efficient postal service in the country.

SEC. 13. Bureau of
Telecommunications. – The Bureau of Telecommunications shall continue to be
responsible for providing telecommunications facilities, including telephone
systems for government offices; providing communications services for purposes
of augmenting limited or inadequate existing similar private communication
services; extending communications in areas where no such services are
available; and assisting the private sector engaged in telecommunications
services by providing and maintaining backbone telecommunication networks.

SEC. 14. National
Telecommunications Commission. – The Board of Communications created under
Article III, Chapter I, Part X of the Integrated Reorganization Plan, as
amended, and the Telecommunications Control Bureau created under Article IX,
Chapter I, Part X of the same Plan, as amended, are integrated into a single
entity to be known as the National Telecommunications Commission and
hereinafter referred to as the Commission.

SEC. 15. Functions of the
Commission. – The Commission shall exercise the following functions:

a. Issue Certificate of Public
Convenience for the operation of communications utilities and services, radio
communications systems, wire or wireless telephone or telegraph systems, radio
and television broadcasting system and other similar public utilities;

b. Establish, prescribe and
regulate areas of operation of particular operators of public service
communications; and determine and prescribe charges or rates pertinent to the
operation of such public utility facilities and services except in cases where
charges or rates are established by international bodies or associations of
which the Philippines is a participating member or by bodies recognized by the
Philippine Government as the proper arbiter of such charges or rates;

c. Grant permits for the use of
radio frequencies for wireless telephone and telegraph systems and radio
communication systems including amateur radio stations and radio and television
broadcasting systems;

d. Sub-allocate series of
frequencies of bands allocated by the International Telecommunications Union to
the specific services;

e. Establish and prescribe
rules, regulations, standards, specifications in all cases related to the
issued Certificate of Public Convenience and administer and enforce the same;

f. Coordinate and cooperate with
government agencies and other entities concerned with any aspect involving
communications with a view to continuously improve the communications service
in the country;

g. Promulgate such rules and
regulations, as public safety and interest may require, to encourage a larger
and more effective use of communications, radio and television broadcasting
facilities, and to maintain effective competition among private entities in
these activities whenever the Commission finds it reasonably feasible;

h. Supervise and inspect the
operation of radio stations and telecommunications facilities;

i. Undertake the examination and
licensing of radio operators;

j. Undertake, whenever necessary,
the registration of radio transmitters and transceivers; and

k. Perform such other functions
as may be prescribed by law.

SEC. 16. Organization of the
Commission. – The Commission shall be composed of a Commissioner and two
Deputy Commissioners, preferably one of whom shall be a lawyer and another an
economist. The Commissioner and Deputy Commissioners shall be of unquestioned
integrity, proven competence, and recognized as experts in their fields,
related, as much as possible, to communications.

The Commission shall determine
its organization structure and personnel subject to the approval of the
Ministry and other authorities concerned.

The Commission shall be under
the supervision and control of the Ministry, except that with respect to its
quasi-judicial functions, its decisions shall be appealable in the same manner
as the decisions of the Board of Communications had been appealed.

The Commission may have regional
offices in places and of such number as may be authorized under Article I,
Chapter III, Part II of the Integrated Reorganization Plan, as amended.

SEC. 17. Telecommunication
Stations Operated by the Armed Forces of the Philippines. –
Telecommunication stations owned and operated by the Armed Forces of the
Philippines shall not be subject to the provisions of this Executive Order
except that all such stations shall use frequencies as may be allowed/assigned
by the Commission.

SEC. 18. International
Treaties, Conventions and Agreements. – International treaties, conventions
and agreements on telecommunications to which the Philippine Government is a
signatory shall form part of this Executive Order insofar as they are
applicable to the Philippines.

C. OTHER PROVISIONS

SEC. 19. Abolished/Transferred
Agencies. –

a. The ministry proper of the
Ministry of Public Works, Transportation and Communications composed of its
services, divisions and units is abolished and its functions are
correspondingly transferred to the appropriate services, divisions and units of
the Ministry of Public Works and/or the Ministry of Transportation and
Communications as may be necessary and appropriate.

b. The Bureau of Public Works is
abolished and its functions are correspondingly transferred to the appropriate
bureaus, divisions, units or regional offices of the Ministry of Public Works: Provided,
That the functions of the Water Resources Division of the Bureau of Public
Works pertaining to hydrologic surveys and data collections shall be absorbed
by the National Water Resources Council.

c. The Bureau of Transportation
created under Article VI, Chapter I, Part X of the Integrated Reorganization
Plan, as amended but not implemented, is hereby abolished.

d. The Board of Communications
and the Telecommunications Control Bureau are abolished and their functions are
transferred to the National Telecommunications Commission.

e. The common technical staff of
the Specialized Regulatory Boards created under Article III, Chapter I, Part X
of the Integrated Reorganization Plan, as amended, is abolished and its
functions are transferred as appropriate to the Board of Transportation and the
National Telecommunications Commission.

The foregoing transfers of
functions shall include applicable funds and appropriations, records,
equipment, property, and such personnel as may be necessary.

SEC. 20. Attached Agencies.
– (a) The following agencies are attached to the Ministry of Public Works:
Communications and Electricity Development Authority, Philippine Ports
Authority, Central Luzon-Cagayan Valley Authority, National Irrigation
Administration, Metropolitan Waterworks and Sewerage System, Farm Systems
Development Corporation, Local Water Utilities Administration, and Metropolitan
Manila Flood Control and Drainage Council.

The National Water Resources
Council and the Pasig River Development Council shall be under the
administrative supervision of the Ministry.

(b) The following agencies are
attached to the Ministry of Transportation and Communications: Philippine
National Railways, Maritime Industry Authority, Philippine Aerospace
Development Corporation, and Metro Manila Transit Corporation.

SEC. 21. The Minister of Public
Works and the Minister of Transportation and Communications shall respectively
assume as appropriate the positions of Chairman or member of all bodies and
agencies previously occupied in an ex-officio capacity by the Minister of
Public Works, Transportation and Communications. In case of conflict,
however, as to which Minister shall sit in any particular board or body, the
same shall be decided by the President.

SEC. 22. The Minister of Public
Works and the Minister of Transportation and Communications shall promulgate
the necessary implementing details to carry out the organization of their
respective Ministries which shall include the internal organization of units
involved and the corresponding initial staffing patterns thereof, as well as
such other transitory measures that need to be taken to assure the orderly
implementation of this Executive Order, subject to the approval of the Ministry
of the Budget in consultation, whenever necessary with the Presidential
Commission on Reorganization.

SEC. 23. Repealing Clause.
– All laws, decrees, charters, executive orders, administrative orders,
proclamations, rules and regulations or parts thereof that are in conflict with
this Executive Order are hereby repealed or modified accordingly.

SEC. 24. Effectivity. –
This Executive Order shall take effect immediately.

DONE in the City of Manila, this
23rd day of July, in the year of Our Lord, Nineteen Hundred and Seventy-Nine.

By the President:

(SGD.) JACOBO C. CLAVE
Presidential Executive Assistant