MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

[ EXECUTIVE ORDER NO. 94, April 12, 1999 ]

ESTABLISHING THE POLICY DIRECTION AND INSTITUTIONAL FRAMEWORK TO IMPLEMENT LABOR-BASED EQUIPMENT SUPPORTED INFRASTRUCTURE PROGRAM

WHEREAS, the primary strategy of the poverty alleviation agenda of the Administration is to eliminate obstacles that will prevent the poor from becoming productive and competitive members of the society;

WHEREAS, in line with this strategy, the government shall promote technologies and approaches as instruments for the economic empowerment and job creation for the poor;

WHEREAS, to mitigate the labor-displacing effects of the economic crisis, there is need to further strengthen these technologies and approaches, such as those which support labor-based equipment supported methods in infrastructure programs and projects;

WHEREAS, labor-based equipment supported methods sustain and institutionalize employment intensive approaches by encouraging optimum use of labor while ensuring cost effectiveness and quality results in the implementation of infrastructure projects;

WHEREAS, labor-based equipment supported methods also reduce reliance to importation of construction equipment and machineries;

WHEREAS, Executive Order 336, series of 1988, established labor- based units in the infrastructure agencies of the government;

WHEREAS, departments and agencies have been encouraged to maximize the use of labor intensive construction technology;

WHEREAS, there is a need under the premises to strengthen the implementation of labor-based equipment supported method through the institutionalization of more focused policy direction and operational framework that will ensure the success of this strategy in alleviating unemployment.

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Adoption of the Policy Direction for Labor-Based Equipment Supported (LB-ES) Infrastructure Program. It shall be the policy of the government to utilize LB-ES method in infrastructure programs and projects, including foreign-funded projects as the technology of first choice, whenever it is possible and feasible, to alleviate underemployment and unemployment, promote self-reliance and conserve foreign exchange through reduced importation of construction equipment and fuel.

To attain the desired objectives and ensure efficiency in the implementation of LB-ES Infrastructure Program, the following policy guidelines shall be adopted:

1.1 The LB-ES Infrastructure Program shall employ a technology in which labor, supported by light equipment, is used as a cost effective method of providing or maintaining infrastructure to a specific standard.

1.2 The program shall place a premium in the recruitment and placement of displaced workers in LB-ES projects and include training programs for sustained upgrading of the skills and competencies of these workers.

1.3 For projects where LB-ES is found appropriate, there must be a dramatic shift in favor of the labor based component.

Section 2. Creation of LB-ES Infrastructure Program Committee. There is hereby created an LB-ES Infrastructure Program Committee (hereinafter referred to as the “Committee”) to oversee and ensure the efficient utilization of LB-ES method in infrastructure programs and projects of government.

2.1 Composition. The Committee shall be composed of the Secretary of Public Works and Highways as Chair, the Secretary of Labor and Employment as Co-Chair, and the following as members:

i. Lead Convenor, National Anti-Poverty Commission

ii. Undersecretary, Department of Interior and Local Government

iii. Undersecretary, Department of Transportation and Communication

iv. Undersecretary, Department of Energy

v. Undersecretary, Department of Education, Culture and Sports

vi. Undersecretary, Department of Agriculture

vii. Undersecretary, Department of Agrarian Reform

viii. Undersecretary, Department of Environment and Natural Resources

ix. Undersecretary, Department of Finance

x. Undersecretary, Department of Budget and Management

xi. Deputy Director-General, National Economic Development Authority

xii. Chairperson, HUDCC

xiii. President, League of Provinces xiv. President, League of Municipalities xv. President, League of Cities

xvi. President, Liga ng mga Barangay

xvii. Five (5) representatives from the private sector representing contractors, employers, engineering consultants, academe and labor groups to be appointed by the President from among the nominees of the Committee.

The Committee may call on other agencies as may be needed.

2.2 Functions. The Committee shall undertake the following functions and responsibilities:

a. Formulate a National Program on LB-ES to provide the framework that will guide the implementation of LB-ES methods and technology at the national and local levels, including the specific guidelines to implement the various components of the program thereof;

b. Coordinate and monitor all programs/activities related to the implementation of LB-ES;

c. Resolve policy and operational issues and problems which may arise relative to the implementation of the program, in close coordination with concerned agencies/entities;

d. Determine training and technical assistance requirement for both the public and private sector involvement in this program;

e. Submit quarterly reports to the President on the status of the implementation of the National Program, including issues and attendant recommendations thereon; and

f. Perform other functions that may be directed by the President.

2.3 Secretariat. Technical and administrative secretariat support services to the Committee shall be provided jointly by DPWH and DOLE.

Section 3. Funding. The funds necessary for the initial implementation of the program, including fund sources thereof, shall be determined by the Committee. Thereafter, funding requirements necessary for the continued implementation of the program shall be included in the annual National Expenditures Program.

Section 4. Repealing Clause. This Order amends all issuances, rules and regulations or any part thereof which are inconsistent with the provisions of this Order.

Section 5. Effectivity. This Executive Order shall take effect immediately.

Done in the City of Manila, this 12th  day of April, in the year of Our Lord, nineteen hundred and ninety-nine.1a⍵⍴h!1

(SGD.) JOSEPH EJERCITO ESTRADA
President of the Philippines

By the President:

(SGD.) RONALDO B. ZAMORA
Executive Secretary


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