Purpose and policy intent
- The Circular provides guidelines, rules and regulations for the implementation of Section 53 of the General Provisions of R.A. No. 7845 and the 1995 General Appropriations Act.
- The Circular is designed to rationalize procedures for the realignment/relocation of capital outlays and public works projects.
- The Circular aims to facilitate and accelerate the implementation of critical programs and projects.
Coverage of covered projects
- The Circular covers capital outlays and public works projects relating to the construction, replacement, rehabilitation and/or completion of school buildings, hospitals, sanitaria, health centers, clinics, herbal processing plants, warehouses and health stations.
- The Circular covers roads/bridges, flood control, waterworks/supply and other public works projects.
- Coverage applies to projects appropriated under the General Appropriations Act (GAA).
Key definitions and project categories
- Realignment/relocation under Section 53 of the GAA means a variation or alteration of the original description of a project.
- Realignment/relocation may involve modification, change in the scope of work, [or] location/site of capital outlays projects under the GAA.
- Project Category refers to the nature/type of project funded under the GAA, including categories such as:
- Department of Public Works and Highways: Roads and Bridges, Flood Control, Water Supply, and Other Public Works.
- Department of Transportation and Communication: Airport and Navigational Facilities, Telecommunications Facilities, Ports and Lighthouses, and Buildings.
Conditions for allowable realignment/relocation
- Implementing agencies may realign/relocate projects only in cases of imbalanced allocation of projects within the district, duplication of projects, overlapping of funding source, and similar cases, subject to DBM approval.
- Realignments/relocation for locally-funded projects are processed and evaluated by the concerned DBM Regional Office, except for senatorial initiatives and projects approved by the President.
- Realignments/relocation for foreign-assisted projects, senatorial initiatives, projects with specific approval of the Office of the President, and other centrally managed projects are processed and evaluated by the DBM Central Office.
- A realignment/relocation for a particular project is permitted only once, subject to these limitations:
- It must be made forty-five (45) days after receipt of the original Allotment (General or Special Allotment Release Order—GARO/SARO).
- It must be made not beyond the two-year validity period.
- If there is duplication and overlapping of funding source for the same project in the same region/province/municipality, the agency may implement the realignment immediately without waiting the forty-five (45) days.
- It must be within the same project category.
- It must be within the same congressional district where funds were originally allocated.
- It must not exceed the total amount originally allocated for the congressional district.
- Except for the Countrywide Development Fund and initiatives of Senators, it must be made upon the initiatives and consent of the representative of the district concerned.
- It must be made with the concurrence of any of the following:
- District Engineer; or
- Regional Director; or
- Secretary of the Department Concerned.
- The released allotment for the original project must not yet be obligated, as certified by the Chief Accountant of the Office concerned.
Processing responsibilities and required approvals
- Implementing agencies must submit requests with:
- a certification of availability of funds, and
- the concurrence of the concerned Senator/congressman/authorized official of the Office of the President.
- For requests, agencies must route submissions as follows:
- To DBM-Central Office for realignment/relocation involving Foreign-Assisted Projects (FAPs), senatorial initiatives, and priority projects approved by the President.
- To DBM-Regional Office for realignment/relocation involving locally funded projects.
- While awaiting DBM action, agencies may implement the realignment/relocation of capital outlays and public works pending receipt of the SARO/Letter of Authority, provided that all conditions and limitations under the Circular are strictly followed and complied with.
- Implementing agencies are primarily responsible for any realignment/relocation made not in accordance with the Circular.
- DBM duties include the following:
- DBM Central Office processes and evaluates realignment/relocation requests involving foreign-assisted projects, senatorial initiatives, and other centrally managed projects, including those with specific approval of the Office of the President.
- DBM Regional Office processes and evaluates realignment/relocation requests involving locally-funded projects.
- DBM issues the corresponding SARO/Letter of Authority to effect the necessary adjustments/changes when a request is found in order.
Liability and sanctions; repealing rule
- The Heads of Departments/Offices are head liable for any realignment/relocation of capital outlays and public works projects not in accordance with the Circular’s guidelines.
- Prior circulars, memoranda, and other issuances inconsistent with this Circular are amended/modified accordingly.