Title
Decentralization of Integrated Area Development
Law
Executive Order No. 363
Decision Date
Jul 17, 1989
Executive Order No. 363 decentralizes the coordination and management of Integrated Area Development (IAD) projects in the Philippines, transferring responsibility to Regional Development Councils (RDCs) and Local Government Units (LGUs), with the aim of promoting multi-sectoral and multi-disciplinary approaches for development in defined geographical areas.
A

Transfer of Direction, Coordination, and Supervision of IAD

  • Direction, coordination, and supervision transferred from NACIAD to Regional Development Councils (RDCs) and Local Government Units (LGUs).
  • Transfer aligns with decentralization policies and empowers regional and local bodies.

Role of Regional Development Councils (RDCs)

  • RDCs coordinate and direct all IAD projects at the regional level.
  • Ensure projects conform to regional development plans.

Management of Single-Province IAD Projects

  • Overall responsibility given to the Office of the Provincial Governor (OPG).
  • IAD Project Offices (IADPOs) placed under OPG administrative supervision.
  • Contract personnel to be respected; future absorption decided by provincial governments.
  • OPG submits program of work and management plan to RDCs for approval.

Management of Multi-Provincial IAD Projects

  • RDCs oversee implementation of IAD projects spanning multiple provinces.
  • RDCs create subcommittees from their members for effective coordination and oversight.
  • In sector-dominant projects, the RDC designates as subcommittee chair the regional director of the relevant sector agency.
  • RDC may establish an ad hoc project coordinating unit for budget coordination, technical assistance, liaison functions, and monitoring.
  • Provincial-level implementation remains with respective OPGs.

Policy Coordination at the National Level

  • National Economic and Development Authority (NEDA) to formulate framework guiding future IAD projects.
  • Framework includes principles for province selection and project formulation.
  • NEDA Board coordinates implementation of framework nationally.

Functions and Responsibilities of RDCs, LGUs, and Implementing Departments

  • RDCs and OPGs handle policy setting, direction, coordination, and supervision.
  • Implementing departments/agencies manage specific sector operations and programs.
  • Provincial offices may implement activities assigned by lead agencies if related to their functions.

Budgetary Systems

  • Provincial budgets integrated and endorsed by OPG to RDC before submission to DBM.
  • DBM releases funds directly to implementing line agencies and concerned LGUs.
  • DBM issues guidelines for budget preparation and execution in consultation with RDCs.
  • Funds for IADPO internal operations released to OPG, except multi-provincial project coordinating units receive funds directly.

Accountability Measures

  • RDCs to improve LGU accountability to their constituencies.
  • NGOs and media encouraged to participate in public information and monitoring.
  • OPG to submit quarterly physical and financial progress reports to RDC.

Transitory Measures Supporting LGUs

  • RDCs to ensure clearly defined agency responsibilities and authorities, adjusted work programs/budgets, functional delineations, and technical assistance programs.
  • RDCs to coordinate training programs to build LGU and line agency capacity.
  • For CVRP, CVRPO to redeploy necessary personnel to LGUs.
  • Existing IAD projects to continue under current arrangements pending full transition.

Observance of Loan Agreements

  • NEDA shall ensure compliance with terms and conditions of loan agreements involving foreign funding for IAD projects.

Promulgation of Implementing Guidelines

  • NEDA to issue guidelines for institutional setup by RDCs and LGUs for IAD policy implementation and project development.

Effectivity

  • The Executive Order takes effect immediately upon issuance.

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