Infrastructure Governance Act

. Senate TWENTIETH CONGRESS Office of the Contretary REPUBLIC OF THE PHILIPPINES First Regular Session FEB 11 P12:56 SENATE 1835 SENATE BILL No. - RECEIVED BY: INTRODUCED BY SENATOR VICENTE C. SOTTO III AN ACT REORGANIZING THE DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS, AND RATIONALIZING THE POWERS AND FUNCTIONS OF THE CENTRAL OFFICE, REGIONAL OFFICES AND DISTRICT OFFICES. EXPLANATORY NOTE Public Infrastructure is a vital role in an efficient and effective nation. Not only do they produce a number of jobs, they also answer to the essential, if not indispensable, needs of many Filipinos. These infrastructure projects are one of the major government services through which the taxpayers feel that their contributions are worthwhile. As one of the departments with considerable budget allocations, much trust is reposed to the Department of Public Works and Highways. The Filipino people rely on them for safe infrastructure projects that answer to their primary needs but also for the projects that mitigates the harsh effects of calamities. However, time and again, substandard infrastructure projects have given devastating consequences to the people. Collapsing bridges, unfinished school buildings, ghost flood control projects, newly-built but severely damaged roads, and poorly maintained government infrastructures are just reflections of what is really happening within the walls of DPWH - corruption that has spread from the central office down to the district offices. The supposed efficiency of decentralization of powers have been used by crook officials to perpetuate their anomalous transactions. Whoever is responsible for this anomaly, ultimately, it is the Filipino people who are losing. Thus, it is imperative to revisit the organization of DPWH to look where the gaps are - where the opportunities for corruption lie. Through a rationalization of this department and its regional and district offices, we can ensure that corruption will no longer seep in its walls. Further, the efficiency

and effectivity of service will be attained through its mandate-focused organization. In view thereot, immediate approval of this bill is request VICENTE C, SOTTO III

Senate Office of the Sertetary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES } First Regular Session } 26 FEB 11 P12:56 SENATE S.B. No. 1835 RECEIVED BY: INTRODUCED BY SENATOR VICENTE C. SOTTO III AN ACT REORGANIZING THE DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS, AND RATIONALIZING THE POWERS AND FUNCTIONS OF THE CENTRAL OFFICE, REGIONAL OFFICES AND DISTRICT OFFICES. Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. — This Act shall be known as the "Infrastructure

2 Governance Act."

Sec. 2. Declaration of Policy. — It is hereby declared the policy of the State

to promote a just and dynamic social order that will ensure the prosperity and independence of the nation and free the people from poverty through policies 6 that provide adequate social services, promote full employment, a rising 7 standard of living, and an improved quality of life for all. It shall ensure that the operations and projects of its engineering and construction arm are conducted with honesty, integrity, and transparency, 10 adopting appropriate and innovative technologies to guarantee the highest standards of safety, quality, and efficiency in all infrastructure works. To ensure the efficient delivery of public service, prevent the undue concentration of powers, and safeguard public funds against misuse and corruption, the State shall rationalize the organization and functions of its engineering and construction arm and promote the decentralization of its powers and responsibilities to the maximum extend allowed by the Constitution and existing laws.

Sec. 3. Reorganization and Mandate of the Department of Public Works

and Highways. - The Department of Public Works and Highways (DPWH) is hereby reorganized as the government's primary engineering and construction arm, hereinafter referred to as the Department.

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Sec. 4. Mandate. - The Department shall be primarily responsible for the

planning, design, construction, and maintenance of infrastructure facilities, particularly national highways, flood control and water resource development systems, and other public works consistent with national development objectives. 6 Sec. 5. Powers and Functions. - The Department shall: a. Formulate infrastructure policies, plans, and projects consistent with the national development plan or infrastructure masterplan; b. Provide technical services for the planning, design, construction, maintenance, and operation of infrastructure facilities; c. Develop and implement codes, standards, and guidelines to ensure the safety, efficiency, and quality in the construction, maintenance, and repair of public and private structures; d. Ensure that all public works plans and project implementation designs are consistent with established standards and guidelines; e. Identify, plan, secure funding for, program, design, construct or undertake prequalification, bidding, and awarding of contracts of public works projects, except those specialized projects implemented by government corporate entities technically capacitated and as directed by the President of the Philippines; f. Supervise all public works construction and ensure that actual construction strictly adheres to the approved government plans and specifications; g. Maintain or cause to be maintained all national highways, flood control, and other public works except those under the jurisdiction of other agencies as directed by the President of the Philippines or as provided by law; h. Classify roads and highways as national, regional, provincial, city, municipal, and barangay categories, based on objective criteria which it shall adopt and periodically review, and approve or authorize their reclassification when warranted; i. Maintain a centralized and publicly accessible database of all whether government infrastructure projects in its websites, implemented by national or local government entities, including their status and bidding details; J. Provide an integrated planning for highways, flood control and water resource developments, and other public works; k. Perform such other functions as may be provided by law; 1. Delegate to any entity with adequate technical capability any of the foregoing powers and functions, as may be deemed appropriate.

Sec. 6. Structure of the Department. - The Department shall be composed

of the Central Office and the regional and district offices. 3 Sec. 7. The Department Proper. - The Department Proper shall consist of 4 the Office of the Secretary, the Infrastructure Services Units, and the 5 Administrative Services Units, which shall be headed by Undersecretaries and 6 Assistant Secretaries necessary for the implementation of this Act.

Sec. 8. Undersecretaries and Assistant Secretaries. — The Secretary shall

be assisted by Undersecretaries and Assistant Secretaries. Each Undersecretary shall head their respective units as herein identified.

Sec. 9. Office of the Secretary. - The Office of the Secretary shall be

11 composed of the Secretary and the Secretary's immediate staff.

Sec. 10. Infrastructure Services Units. - The Infrastructure Services Unit

shall be responsible for carrying out the primary functions of the Department relating to infrastructure. It shall be composed of the following offices, each headed by an undersecretary: a. National Highways Operations Unit - responsible for all matters related to the planning, design, construction, classification and conversion of highways; b. Flood Control and Water Resource Development System Unit - responsible for the identification of the location of flood control projects in accordance with the flood control master plan or scientific system of identification, planning, design, and construction of all flood control and water resource systems in the country; c. Other Public Works Unit - responsible for all matters related to the planning, design, and construction of all other public works *26 implemented by the Department; and d. Infrastructure Maintenance Services Unit - responsible for monitoring and maintenance of all public works implemented by the Department and maintenance of the public infrastructure database. Each undersecretary under this unit shall have three (3) assistant secretaries, assigned to Luzon, Visayas, and Mindanao.

Sec. 11. Administrative Services Unit. — The Secretary, for matters

relating to administrative services and other special concerns, shall be assisted by the following undersecretaries: a. Undersecretary for Planning and Technical Concerns who shall be responsible for infrastructure development planning and programming and for the provision of technical assistance for infrastructure projects

within the mandate of and implemented by the other branches of the government; b. Undersecretary for Administration and Special Concerns, who shall be responsible for all administrative matters of the Department and coordination with the Office of the President on the priorities of the government and the Department.

Sec. 12. Planning and Technical Concerns Unit. — The Planning and

Technical Concerns Unit shall be primarily responsible for infrastructure development planning and programming and shall have the following functions: a. Study, on a continuing basis, and formulate and recommend guidelines, standards, criteria, and systems for the survey and design, construction, rehabilitation, maintenance, and improvements of all public works and highways; b. Conduct or sponsor research on construction materials and formulate and recommend policies, standards, and guidelines on materials and quality control; c. Undertake or cause to be undertaken specialized technical studies to advance the in-house technology of the Department and secure the most complete information for project development and implement purposes; d. Formulate technical training programs for Department technical personnel, including the identification of appropriate local and foreign training programs, and recommend the selection of Department personnel for such programs; e. Review and study, for the purpose of recognizing new technologies, especially those utilizing indigenous resources, current national building and construction standards and procedures, and make appropriate recommendations thereon; f. Promote, publish, and disseminate technical publications; g. Provide technical assistance to the Department proper, other divisions, regional and district offices, and other agencies on matters within its competence, including technical assistance in the upgrading or updating of the Building Code, and other services; h. Cooperate or coordinate with other established research, development, and engineering centers in areas of common or national interest; and i. Review and study, for the purpose of recognizing new technologies especially those utilizing indigenous resources, current national building and construction standards and procedures, and make appropriate recommendations thereon; and Perform other related duties and responsibilities assigned or delegated by the Secretary or as required by law.

The Undersecretary for Planning and Technical Concerns shall be assisted by an assistant secretary.

Sec. 13. Administration and Special Concerns Unit. - The Administration

and Special Concerns Unit shall be primarily responsible for ensuring the efficient day-to-day operations of the Department. Each office shall be headed 7 by an assistant secretary: a. Internal Audit Services Office - responsible for the conduct of a comprehensive audit of the various activities of the Department, and shall have the following functions: i. Advise the Secretary on all matters relating to management control and operations audit; ii. Conduct management and operations performance audits of the Department activities and units and determine the level of compliance with established objectives, policies, methods, procedures, government regulations, and contractual obligations; iii. Review and appraise systems and procedures, organizational structure, assets management practices, accounting and other records, reports, and performance standards of the department proper and its regional offices; iv. Analyze and evaluate management deficiencies and assist the top management to solve the problems by recommending practical courses of action; and v. Perform other related duties and responsibilities assigned or delegated by the Secretary or as required by law. b. Information Services Office - responsible for the development and implementation of an information program for mass dissemination in coordination with the appropriate government agencies, and shall have the following functions: i. Advise the Secretary on all matters relating to public information; ii. Develop and supervise the implementation of communication programs to ensure that relevant Department policies, programs and plans are understood by the public; ili. Produce and supervise the distribution of media materials in line with national government's public information programs; and iv. Perform such other related duties and responsibilities assigned or delegated by the Secretary or as required by law.

c. Comptrollership and Financial Management Services Office - responsible for providing the Department with coordinated services relating to financial systems and procedures, budget, cash, accounting, and all financial housekeeping matters, and shall have the following functions: i. Advise the Secretary on all matters relating to the accounting of government expenditures, receipts, budgeting and cash management, project finances, and financial systems and procedures; ii. Prepare budget proposals, pursue formal budget authorizations, undertake budget execution, and prepare and submit all appropriate reports to the proper offices; iii. Develop and maintain accounting, financial and assets management systems, procedures, and practices in the Department proper and its regional offices; and iv. Perform other related duties and responsibilities assigned or delegated by the Secretary or as required by law. d. Legal Services Office -responsible for legal affairs services and shall have the following functions: i. Advise the Secretary on all matters relating to legal affairs; ii. Prepare Department contracts and legal instruments, review and interpret all contracts and agreements entered into by the Department, and evaluate all legal proposals; iii. Conduct administrative investigation and review administrative charges against officers and employees of the Department; iv. Exercise functional jurisdiction over all legal staff of regional offices; Provide legal assistance to the Department proper, the bureaus, and regional offices; and vi. Perform other related duties and responsibilities assigned or delegated by the Secretary or as required by law. e. Administrative and Human Resource Management Services Office - responsible for providing the Department with services relating to human resources development, personnel, records, facilities maintenance, medical and dental, security, and property and procurement services, and shall have the following functions: i. Advise the Secretary on all matters relating to internal administration and human resource management;

ii. Prepare and implement an integrated personnel plan that includes provisions on merit promotions, performance evaluation, job rotation, suggestions incentive systems, and health and welfare services; iii. Provide services related to human resource training, education, and development, including manpower and career planning; iv. Develop, establish and maintain an efficient and cost-effective property procurement and facilities system, and coordinate or interface with relevant agencies, whether government or private, for the development of such system; V. Secure and maintain necessary Department facilities and develop, establish, and maintain a security system for the personnel, properties, and affairs of the Department V1. Coordinate with appropriate government agencies for a more efficient conduct of administrative processes; vii. Develop, establish, and maintain an efficient records system; and viii. Perform related duties and responsibilities assigned or delegated by the Secretary or as required by law.

Section 14. Design, Construction, and Equipment Divisions. - The

Offices of the Undersecretaries for National Highway Operations, Flood Control and Water Resource System Development, and Other Public Works shall each create Design, Construction, and Equipment divisions in their respective offices in relation to their specialized infrastructure projects. a. Design Division - responsible for ascertaining that the plans and designs of the government infrastructure implemented by their office are consistent with current standards and guidelines, and shall have the following functions: i. Conduct, supervise, and review the result of field surveys, including aerial, hydrologic, hydrographic, topographic, geotechnical, and other investigations; ii. Conduct, supervise, and review the preparation of schemes, designs, specifications, estimates, tender contract documents covering the architectural, structural, mechanical, electrical, and other technical design aspects of an infrastructure project; iii. Provide technical assistance in the selection of firms or entities that shall undertake actual construction of public works projects via participation in the technical evaluation aspect of the bidding/award process; and

iv. Perform related duties and responsibilities assigned or delegated by the Secretary or as required by law. b. Construction Division - responsible for providing technical services on construction works for their corresponding infrastructure projects and facilities, and shall have the following functions: i. Review and evaluate construction programs, estimates, and tender and contract documents; ii. Inspect, check, and monitor construction and work supervision activities of field implementing offices for the purpose of ensuring that such activities are being conducted in accordance with the current standards and guidelines; and iii. Perform related duties and responsibilities assigned or delegated by the Secretary or as required by law. c. Equipment Division - responsible for providing technical services on the management of construction and maintenance equipment and ancillary facilities, and shall have the following functions: i. Formulate policies relating to the management of infrastructure equipment and ancillary facilities; ii. Review and evaluate programs, estimates, and tender and contract documents for equipment; iii. Inspect, check, and monitor the management of equipment by regional equipment services and area shops to ensure adherence with the current standards and policies; iv. Provide specialist support to implementing field offices on equipment management; and V. Perform related duties and responsibilities assigned or delegated by the Secretary or as required by law.

Section 15. Infrastructure Maintenance Services Unit. - The

Infrastructure Maintenance Services Unit shall be responsible for monitoring, maintenance, and repair of all public works implemented by the Department and maintenance of the public infrastructure database, and shall have the following duties and responsibilities: a. Formulate policies relating to maintenance of infrastructure projects and facilities; b. Review and evaluate maintenance programs, estimates, and tender and contract documents;

c. Inspect, check, and monitor maintenance activities of implementing field offices for the purpose of ensuring that such activities are being conducted in accordance with current standards and policies; d. Provide specialist support to implementing field offices on the maintenance of infrastructure projects and facilities; and e. Perform related duties and responsibilities assigned or delegated by the Secretary or as required by law.

Section 16. Regional Offices. — Regional Offices shall be responsible for

highways, flood control and water resource development systems, and other public works within the region, except those as exercised by the Sectary. They shall have the following duties and responsibilities: a. Undertake and evaluate the planning, design, and construction of the Department in coordination with the undersecretary exercising authority over the respective project, within the region or as recommended by the district offices; b. Undertake the maintenance of all the public infrastructure within the region, in coordination with the Office of the Undersecretary for Infrastructure Maintenance, and supervise the maintenance of such local roads and other infrastructure receiving funding from the national government as the Secretary may determine or as recommended by the district offices; C. Ensure the implementation of laws, policies, programs, rules and regulations regarding the infrastructure referred to in this section as well as all public and private physical structures; d. Provide technical assistance related to their functions to other agencies within the region, especially the local government; e. Coordinate with other departments, agencies, institutions, and organizations, especially local government units within the region in the planning and implementation of infrastructure projects; and f. Perform related duties and responsibilities assigned or delegated by the Secretary or as required by law

Sec. 17. Regional Director. — The Regional Directors shall be responsible

for efficiently and effectively carrying out the duties and responsibilities of the Regional Offices. They shall exercise administrative supervision over District Offices within the regions, including the authority to commit their resources and personnel to integrate province- or city-wide development thrusts. They shall also perform related duties and responsibilities as may be assigned or delegated by the Secretary or as required by law.

The Regional Director shall be assisted by two (2) Assistant Regional Directors 2 who shall exercise supervision, respectively over (1) the construction, 3 maintenance, and work supervision functions in the region; and (2) the planning, project design, evaluation, and technical assistance functions of the 5 Regional Office.

Sec. 18.

District Office. - There shall be a district office in each if the provinces and cities throughout the country to be headed by a district engineer appointed by the Secretary. For the purposes of this Act, all current 9 district offices are retained. The district office shall be responsible for the supervision of all highways, flood control and water resource development systems, and other public 12 works within the district, and shall have the following duties and responsibilities: a. Undertake works supervision function for the infrastructure in the district; b. Recommend to the Undersecretary for Infrastructure Maintenance, through their respective regional office, the maintenance of the infrastructure within the district and supervise the maintenance of such local roads and other infrastructure; C. Coordinate with other departments, agencies, institutions, and organizations, especially local government units within the district in the work supervision functions of infrastructure projects; d. Conduct continuing consultations with the local communities, take appropriate measures to make the services of the Department responsive to the needs of the general public, compile and submit such information to the Regional Office, and recommend appropriate actions as may be necessary; and e. Perform other duties and responsibilities as may be assigned or delegated by the Secretary or as required by law.

Sec. 19. District Engineer. - The District Engineer of a province or city shall

be accountable for the efficient and effective performance of the duties and responsibilities of the District Office which the District Engineer heads. Within the defined powers, the District Engineer shall exercise functional and administrative supervision over district operations, including the authority to recommend that field resources and personnel be committed to integrated district-wide development thrusts. The District Engineer shall also perform other related duties and responsibilities as may be assigned or delegated by the Secretary or as required by law.

1 Sec. 20. The Infrastructure Inspectorate Team. - No disbursement of payment, whether progress billing or final payment, shall be allowed unless a favorable report from the Infrastructure Inspectorate Team has been submitted to the Secretary thru the Internal Audit Services Office. All government infrastructure projects shall be inspected by an Infrastructure Inspectorate Team dedicated to a specific project which shall be composed of 7 the following: a. The Undersecretary exercising jurisdiction over the infrastructure project or a duly authorized representative; The Regional Director exercising jurisdiction over the location of the infrastructure project or a duly authorized representative; C. The local chief executive of the local government unit where the project is located; d. Two (2) representatives from Commission on Audit(COA), one from the local COA of the Department's Main Office and one from the Regional Office concerned; e. A licensed independent civil engineer delegated by the Philippine Institute of Civil Engineers; and f. A licensed independent architect as delegated by the United Architects of the Philippines. All inspections shall be streamed live in the official channels of the Regional Office. The progress report and its supporting documents shall be uploaded to the website of the Department Central Office and shall be made available for public viewing. The services of the independent civil engineer and independent architect shall be considered as units for their Continuing Professional Development (CPD). Their travel expenses and allowance shall be charged to the Regional Office concerned, subject to government accounting rules and regulations.

Sec. 21. Reorganization. — The laws and rules on government organization

as provided for in Republic Act No. 12231 or the Government Optimization Act shall govern the reorganization process of the Department.

Sec. 22. Structure and staffing pattern. - Subject to the approval of the

Department of Budget and Management (DBM), the Department shall determine its organizational structure, create new divisions or units as it may deem necessary, and appoint its officers and employees in accordance with the Civil Service law, rules, and regulations.

Sec. 23. Transition Period. - The transfer of functions, funds, transactions,

and personnel of the affected units, and the formulation of the internal

organic structure, staffing pattern, operating system, and revised budget of 2 the department, shall be completed within twelve (12) months from the effectivity of this Act, during this period, existing personnel shall continue to assume their posts in holdover capacities until new appointments are issued.

Sec. 24. Separation and Retirement Benefits. - Employees separated from

the service as a result of this reorganization shall, within ninety (90) days 7 therefrom, receive the separation and retirement benefits they are entitled to under the law: Provided, That such separation and retirement benefits shall have priority of payment from the savings of the Department. 10 Sec. 25. Appropriations. - The amount necessary for the initial implementation of this Act shall be taken from the current fiscal year's 12 appropriation of the Department

Sec. 26. Implementing Rules and Regulations. - Within ninety (90) days

from the effectivity of this Act, the Office of the President, in consultation with the Department and the DBM, shall promulgate its implementing rules and regulations.

Sec. 27. Separability Clause. - If any provision of this Act is declared

unconstitutional, the remainder thereof not otherwise affected shall remain in full force and effect.

Sec. 28. Repealing Clause. - All laws, decrees, orders, rules, and

regulations, or parts thereof inconsistent with this Act are hereby repealed, amended, or modified accordingly.

Sec. 29. Effectivity. - This Act shall take effect after fifteen (15) days

following the completion of its publication in the Official Gazette or in two (2) newspapers of general circulation. Approved,