Creation of Tondo Foreshore Development Authority

Policy, objectives, and purposes

Section 2 requires the Authority to undertake all manner of activity, business, or development projects for a harmonious, comprehensive, integrated and healthy living community in Tondo Foreshore and its settlement site.
Section 2 empowers the Authority to undertake and promote physical and socio-economic amelioration of Tondo Foreshore residents in particular and the nation in general.
Section 2 directs the Authority to encourage other similar public and private organizations to adopt integrated, comprehensive and healthy living community approaches in dealing with slum, squatter and resettlement problems.

Powers and functions of the Authority

Section 3(a) mandates the Authority to develop and implement comprehensive and integrated urban renewal programs for Tondo Foreshore-land and Dagat-dagatan lagoon and/or other additional/alternative resettlement sites, and to formulate and enforce general and specific policies for development ensuring a reasonable degree of compliance with environmental standards.
Section 3(b) authorizes the Authority to prescribe guidelines and standards for the reservation, conservation and utilization of public lands covering the Tondo Foreshore land and its resettlement sites.
Section 3(c) authorizes the Authority to construct, own, lease, operate and maintain infrastructure facilities, housing complexes, and sites and services.
Section 3(d) empowers the Authority to determine, regulate and supervise the establishment and operation of housing, sites, services, and commercial and industrial complexes, and other enterprises constructed within the Tondo Foreshore land and its resettlement sites.
Section 3(e) allows the Authority to develop the Tondo Foreshore land and its resettlement sites by itself or through joint venture with public or private entities for different phases of development.
Section 3(f) authorizes the Authority to acquire and own property, property-rights and interests, and to encumber or otherwise dispose of them as it deems appropriate.
Section 3(g) permits the Authority to invest its funds or other assets in undertakings it deems wise or necessary to carry out its purposes.
Section 3(h) authorizes the Authority to receive donation, grants, bequests and assistance from international and local private foundations, associations, and entities, and to utilize them to attain its objectives.
Section 3(i) allows the Authority to establish subsidiary corporations and branch offices.
Section 3(j) authorizes the Authority to implement and coordinate selected projects and activities in social and economic development within the Tondo Foreshore land and its resettlement sites.
Section 3(k) authorizes the Authority to sell, lease, or rent for consideration under terms it deems reasonable and proper, its properties and facilities within the Tondo Foreshore land and its resettlement sites.
Section 3(l) authorizes the Authority to fix, assess and collect charges and fees, including rental for lease/use/occupancy of lands, buildings, structures, facilities and other properties owned and administered by the Authority, and to fix and collect fees and charges for issuance of permits, licenses and the rendering of services not enumerated in the preceding powers.
Section 3(m) authorizes the Authority to sue and be sued, to prepare its by-laws, and to adopt a seal that shall be judicially noticed.
Section 3(n) authorizes the Authority to raise and/or borrow funds from local and international financing sources or institutions, and to secure the same via guarantee, pledge, mortgage, deed of trust or assignment of corporate property for financing vital programs and projects.
Section 3(o) authorizes the Authority to enter into, make and execute contracts of any kind necessary or incidental to accomplishment of its purposes and to generally exercise powers and objectives.

Board of Directors and governance

Section 4(a) vests the governing powers of the Authority in a Board of Directors composed of six (6) ex-officio members:
- the Executive Secretary;
- the Director General of the National Economic and Development Authority;
- the Secretary of Public Works and Communications;
- the Secretary of Industry;
- the General Manager, Government Service Insurance System; and
- the Administrator of the Social Security System;
- and it further specifies the inclusion of the Chairman, Board of Governors of the Development Bank of the Philippines.
Section 4(a) directs that the President shall appoint a Chairman from among the seven directors.
Section 4(a) provides that the officials next in rank to regular members serve as permanent alternate members, and that when the Chairman is absent, the Board shall elect a temporary presiding officer.
Section 4(a) requires alternate members to attend Board and committee meetings assigned to their principals and to receive per diems when their principal is absent or the position is vacant.
Section 4(a) grants each Board member a monthly commutable allowance of five hundred pesos and a per diem of one hundred pesos for every meeting of the Board or Committee actually attended, with a limit that total allowable per diems each month shall not exceed five hundred pesos.

Board duties and bonds authority

Section 5 requires the Board to formulate and adopt policies consistent with the general plan of the urban development program for the Tondo Foreshore area and its resettlement site, and congruent with general framework plans for the country.
Section 5 obligates the Board to ordain and promulgate rules and regulations for the Authority, including rules governing organizations and regular, special or general Board meetings, the Authority’s officers, and the powers and duties of offices, through a Code of By-Laws passed by the affirmative vote of majority.
Section 5 mandates the Board to establish such Committees as may be necessary to accomplish the Authority’s corporate purposes.
Section 5 requires the Board to submit to the President of the Philippines and to publish an annual report on the Authority’s condition before the end of June of each year.
Section 6 allows the Board, whenever it deems it necessary for the Authority to incur indebtedness or issue bonds, to pass a resolution stating the purpose for the proposed debt.
Section 6 requires the resolution to be confirmed by the affirmative vote of at least five (5) members of the Board and then approved by the President of the Philippines.

Bonds, sinking fund, and government guarantee

Section 7 requires the establishment of a sinking fund such that the total annual contribution accrued at an interest rate determined by the Board is sufficient to redeem bonds issued under this Decree at maturity.
Section 7 places the sinking fund under the custody of the Authority’s treasurer, who must invest it as directed by the Board.
Section 7 requires that investment expenses be charged to the sinking fund and that the sinking fund be credited with interest on investment and other income belonging to it.
Section 8 declares the Republic of the Philippines guarantees payment of the Authority’s bonds’ and other obligations’ principal and interest issued by virtue of this Decree.
Section 8 provides that if the Authority fails to pay, the Republic must pay the principal and interest, and if the Authority is unable to pay, the Secretary of Finance pays from funds in the National Treasury not otherwise appropriated.
Section 8 provides that to the extent the Republic pays, the Government succeeds to the rights of the holders of the bonds, debentures, collaterals, notes, or other obligations, unless the amounts paid are refunded by the Authority within a reasonable time.

Budget, eminent domain, and oversight

Section 9 appropriates PHP 30,000,000.00 for Fiscal Year 1975 from the funds in the National Treasury not otherwise appropriated to carry out the provisions of this Decree.
Section 9 requires succeeding appropriations of the Authority to be included in the Annual Appropriations Act.
Section 10 grants the Authority the right and power to acquire properties for proper planning and implementation of a rational land policy, including for construction of housing complexes, commercial and industrial complexes, sites and services, and infrastructure.
Section 10 authorizes acquisition by purchase, by negotiations, or by condemnation proceedings.
Section 10 directs that condemnation proceedings must be maintained by and in the name of the Authority and proceed in the manner provided by law.
Section 11 requires the Chairman of the Commission on Audit to appoint a representative as the auditor of the Authority and to appoint necessary personnel to assist in performing duties.
Section 11 provides that the auditor and staff salaries are fixed by the Commission on Audit with the advice of the Board and are paid by the Authority.
Section 13 places the Authority under the direct supervision of the Office of the President for purposes of policy direction and coordination.

Personnel status, taxation, and transition

Section 12 exempts the Authority’s officers and employees from the Civil Service Law, rules and regulations, and from the rules and regulations of the Wage and Position Classification Office.
Section 14 exempts the Authority from all forms of taxation and from all duties direct or indirect imposed by the Government or any of its political subdivisions or instrumentalities.
Section 14 exempts from taxes any kind any donation, contribution, bequest or financial aid made to the Authority and makes such gifts allowable deductions in full from the income of donors or givers for income tax purposes.
Section 15 requires the transfer to the Authority of the properties, rights, obligations, and liabilities of the Tondo Foreshore Urban Renewal Project.

Bonds approval, separability, repeal, and effectivity

Section 16 repeals or modifies all laws, executive orders, administrative issuances, rules and regulations inconsistent with the provisions of this Decree.
Section 17 declares the provisions of this Decree separable, and that if any provision is held invalid or unconstitutional, the remainder remains effective.
Section 18 provides that this Decree takes effect immediately.
The Decree is dated October 30, 1974 and was done in the City of Manila by FERDINAND E. MARCOS, President of the Philippines, with ALEJANDRO MELCHOR as Executive Secretary.