Question & AnswerQ&A (DBM NATIONAL BUDGET CIRCULAR NO. 485)
The purpose is to rationalize the establishment, restructuring, and operation of Project Management Offices (PMOs) to ensure their integration into agency structures, optimize resource use, strengthen project monitoring and accountability, and develop in-house project management capabilities.
It covers national government agencies and instrumentalities, government-owned and/or controlled corporations, and government financial institutions implementing locally-funded and/or foreign-assisted projects.
A PMO is a unit in an implementing agency, complementing its regular units, directly responsible for the implementation, coordination, and monitoring of project activities.
A Unified PMO is a PMO characterized by consolidated structures and resources to oversee, operate, and ensure efficient and effective implementation of all development projects within an implementing agency.
1) When the project components are capital-intensive involving infrastructures or capital outlays (except purely procurement projects); 2) Implementation involves two or more agencies; 3) Physical implementation is in two or more areas.
Agencies shall endeavor to manage and implement development projects within their regular operations and existing organic structures and staff.
Key functions include project operations planning, project monitoring and evaluation, project coordination and oversight, project operation and management, trouble shooting, financial management, stakeholder coordination, and post-project completion mainstreaming.
Agencies should propose an internal structure with reasonable functional groupings and staffing, adhering to the scrap and build policy, within budget ceilings, and covered by existing organization and staffing standards.
Contractual personnel shall be paid the salary of an equivalent regular position as determined by the DBM but not exceeding the salary of their immediate supervisor, and are entitled to allowances and benefits under existing laws.
Existing PMOs of projects due to complete by 2004 may continue until project termination. Projects ending in 2005 or beyond shall consolidate PMOs by 2004. Agencies with a distinct PMO handling a single project not covered by section 4.3 shall mainstream the project management into regular units.