MEMORANDUM OF AGREEMENTAMONG THE DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS (DPWH),

DEPARTMENT OF THE INTERIORAND LOCAL GOVERNMENT (DILG) AND THE CITY OF

DAVAOFOR THE IMPLEMENTATION OF THE SPECIAL LOCAL ROAD FUND (SLRF)

UNDER R.A. 8794 OR MVUC LAW

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement (MOA) entered into and executed this _______ day of _____________ in theyear of our Lord Two Thousand and _______ among

The Department of Public Works and Highways (DPWH) represented herein by Mariano R. Alquiza, CESO III with principal office address at R. Magsaysay Ave. Cor. Chavez St. hereinafter referred to as DPWH.

The Department of the Interior and Local Government (DILG) represented by Regional Director Ananias M. Villacorta, CESO III, with principal office address at Matina, Davao City hereinafter referred to as DILG.

and

The City Government of Davao represented herein by City Mayor, Rodrigo R. Duterte,with principal office address at City Hall Drive, Davao City and hereinafter referred to as Local Government Unit (LGU).

WITNESSETH THAT:

WHEREAS, pursuant to R.A. 8794, the Motor Vehicle User’s Charge (MVUC) Law, under Section 1 which declares that “it is the policy of the State to provide for and ensure the adequate maintenance of national and provincial roads through sufficient funding for the purpose”;

WHEREAS, Section 7 of the said Act, which states that “all monies collected under this Act shall be earmarked solely and used exclusively (1) for road maintenance and improvement of road drainage, (2) for the installation of adequate and efficient traffic lights and road safety devices, and (3) for air pollution control.” It further provides that 5% of all monies collected shall be deposited in the National Treasury under the Special Local Road Fund (SLRF) which shall be apportioned to provincial and city governments in accordance with the vehicle population and size of the road network under their respective jurisdictions and shall be used exclusively for maintenance of local roads, traffic management and road safety devices. It also directs that the Special Road Support Fund, the Special Local Roads Fund and Special Road Safety fund shall be DPWH;

WHEREAS, pursuant to Sections 3and 5 of Executive Order No. 124 dated 30 January 1987, the DPWH shall decentralize its responsibilities to the fullest extent possible; and may delegate to any agency it determines to have adequate technical capability, any of its powers and functions. Consistent with this policy of decentralization, the DILG, as identified by the DPWH to assist the LGUs in developing the latter’s capabilities by allowing them greater participation in the local road maintenance and safety provisions;

WHEREAS, the DILG is an agency mandated to exercise general supervision over the Local Government Units (LGUs) and is tasked to strengthen the capability of LGUs in the delivery of devolved services including the maintenance and construction of local roads and to coordinate the activities undertaken by LGUs;

WHEREAS, the DPWH, in consideration of the DILG’s mandate over LGUs has proposed that DILG extends its assistance to provinces and cities through the Special Local Road Fund for the maintenance of local roads;

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WHEREAS, it is necessary that a Memorandum of Agreement should be entered into for the purpose of delineating responsibilities regarding the implementation of policies, standards and procedures at the LGU level in accordance with the pertinent province of SLRF under the MVUC Law and its IRR.

NOW, THEREFORE, for and in consideration of the foregoing premises and mutual covenants herein set forth, the PARTIES to this Memorandum of Agreement do hereby agree on the following terms and conditions:

Article ICOVERAGE

This agreement covers the release, utilization and liquidation of funds for the LGU eligible projects and activities such as road maintenance, installation of road safety devices and traffic management projects funded under the Special Local Road Fund to be implemented by LGUs in accordance with the policies,standards and procedures of RA 9794 (MVUC Law) and its IRR.

Article IIGeneral provision

01. This agreement covers the implementation of Approved SLRF Projects along City roads in the City of Davao.

a. Concrete Reblocking at Cabantian- Bunawan road (Cabantian- Indangan road section) & Concrete Reblocking at Cabantian- Bunawan road (Indangan-Acasia road section)

b. Concrete Reblocking at Cabantian- Bunawan road (Acasia- Mahayag road section) &(Mahayag- San Isidro road Section)

c. Safety Projects

02. All applicable provisions of the Guidelines on the Implementation of Approved Projects under The Special Local Road Fund (SLRF) – MVUC law is made an integral part of this MOA;

Article IIIRELEASE OF FUNDS AND DEPOSITS AND

REPORT OF EXPENDITURES

OPENING OF ROAD FUND DISBURSEMENT ACCOUNT. Each LGU shall maintain a separate Trust Account to be known as the Road Fund Disbursement Account by opening a Local Currency Current Account (LCCA) in the authorized government depository bank preferably Land Bank of the Philippines and provide the DPWH with the LCCA Number, copy furnished the DILG, if the LGU has an existing Trust Account, a separate subsidiary ledger per project for SLRF is required.

RELEASE/ TRANSFER OF FUNDS. The following procedures shall be followed in the transfer of funds to LGUs:

1.1 DPWH Central Office shall release the funds thru the issuance of Sub Allotment Advice (SAA) and NCA to the DPWH Regional Offices within one (1) week upon receipt of the SARO.

1.2 The DPWH – RO within one (1) week, shall issue the Letter of Advice of Allotment (LAA) effecting the full transfer of allotment to the concerned LGU. There shall be no retention for engineering and administrative overhead for the DPWH. The LGUs can use the LAA as basis to proceed with procurement process.

1.3 Within one (1) week upon the approval of the MOA, the DPWH- RO shall release the cash advance in full to the LGUs. The LGU receipt of the funding check will be acknowledged through the issuance of Official Receipt (OR).

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1.4 Final liquidation of cash advance shall be submitted by the LGU to the DPWH- RO within one (1) month upon final inspection of the projects. Any unexpended amount after the project completionshall be remitted to the account of the DPWH-DEO/RO. The only allowed level for retention is the bank maintaining balance for the newly opened trust account and LGU should secure a bank certification and this should form part of their final liquidation. DPWH-DEO/RO should issue an Official Receipt (OR) to all funds returned by LGUs. The LGU shall be made fully accountable for all funds released by the DPWH.

Released of SLRF to an LGU for new projects is subject to full liquidation of prior SLRF Cash Advances.LGUs unliquidated cash advance from other DPWH projects should not be considered for the non- release of SLRF. All liquidation Report of Expenditure shall be submitted to the Comptrollership and Financial Management Division (CFMD) of the DPWH-RO in the required format (see Annex 4) copy furnished the DILG-RO/PO/CO

REPORT OF EXPENDITURES. Each LGU shall submit a Report of Expenditure in the required format (please refer annex 3 of the JMC), to the Comptrollership and Financial Management Division (CFMD) of the DPWH-RO, copy furnished the DILG- Regional Office through DILG Provincial or City Office. Any unexpended amount after the project completion shall be remitted to the DPWH-RO. The DPWH-RO shall issue an official receipt to the LGU remittance of the unused cash balance. The LGU shall be made duly accountable for all funds released to it by the DPWH.

Article IVWORKING ARRANGEMENTS AND PROCEDURES FOR EXECUTING THIS AGREEMENT

For the efficient and successful execution of this Agreement, the PARTIES hereby agree to undertake the following:

A. DUTIES AND RESPONSIBILITIES OF DPWH-RO/DEO:

1. Enter into a MOA with LGU and DILG-RO2. Upon receipt of the Sub- Allotment Advice (SAA) from DPWH- Central office, the DPWH-RO to effect transfer of fund to the LGU through the issuance of Letter of Advice of Allotment (LAA).3. Provide monthly status of fund releases and liquidations to DILG-RO4. Ensure that the projects implemented are in accordance with DPWH Road Specifications5. Conduct a final inspection of each of the completed project/s together with DILG-RO and LGU shall and shall issue a Joint Certificate of Completion.

B. DUTIES AND RESPONSIBILITIES OF THE DILG:

OPDS-SLRF1. Inform Provincial and City Governments of the approval and corresponding release of SARO for their proposed projects.2. Advise the LGUs to submit list of projects with location and project cost corresponding to the approved allocation.3. Coordinate with DPWH-CO for the transfer of funds to LGUs4. Conduct periodic consultation with DILG and DPWH Field Offices and LGUs for the smooth implantation of projects and help resolve issues and concerns on project implementation5. To provide technical assistance to LGUs and provide training for institutional capacity building on local road management.

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RO/PO/CO1. Enter into a MOA with LGU and DPWH-RO/DEO:2. Conduct technical review of Individual Programs of Work3. Facilitate signing of MOA among DPWH, DILG and LGUs4. Coordinate with DPWH RO and facilitate transfer of fund to LGUs5. Facilitate in resolving issues regarding project implementation6. Submit Monthly Monitoring Reports on the progress of the LGU’s implementation of projects to OPDS-SLRF on the prescribed format.7. Make every effort to ensure that LGUs implement the project on schedule and liquidate the funds on time as applicable8. Conduct a pre- final and final inspection of each of the completed project/s together with DPWH-RO/DEO and LGU and shall issue a Joint Certificate of Completion.

C.DUTIES AND RESPONSIBILITIES OF LGUs:

1. Enter into a MOA with DILG-RO and DPWH-RO/DEO2. Implement the approved project/s in accordance with the Approved Program of Work, Road Specifications and implementation schedule.3. Ensure that every progress billing that the required quality control test in each of every pay item has been complied with in accordance with DPWH Minimum Required Testing for Road Projects.4. Submit Monthly Progress Report to DPWH and DILG- RO/PO/CO using BOM form 1 on or before every 25th of the month.5. Disburse the released funds in accordance with prescribed accounting and auditing rules and regulations6. Liquidate SLRF fund releases using the prescribed format and as stipulated in the guidelines7. Request for the conduct of Pre- final and Final Inspection as stipulated in the guidelines8. Implement and complete the project/s within the validity of the SARO9. Liquidate all cash advances and return any savings to DPWH-RO in the form of a check upon final payment to all project creditors.10. To assign focal person in-charge of SLRF project/s from PEO/CEO

Article VEFFECTIVITY

This Agreement shall be effective from the date of its signing and shall continue to be in force, unless sooner terminated by either party within thirty days (30) upon prior written notice delivered to the other.

Article VISPECIAL PROVISIONS

All Annexes and other documents attached to this Memorandum of Agreement shall be understood as forming part of this MOA. Provisions and contents thereof are therefore binding on both parties unless part or whole of these documents are amended and mutually agreed upon by both parties.

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IN WITNESS THEREOF, the PARTIES have hereto affixed their signatures on the date and place above- written.

FOR THE DPWH: FOR THE DILG:

_____________________________________ MR. ANANIAS M. VILLACORTA, CESO III

DISTRICT ENGR./ASST.REGIONAL DIRECTOR REGIONAL DIRECTOR

FOR THE LGU:

RODRIGO R. DUTERTECITY MAYOR

WITNESSES:

__________________________________ MR. MERILO Q. LIMBARO DPWH ENGINEER/S CITY DIRECTOR

APPROVED BY

MARIANO R. ALQUIZA, CESO IIIDPWH REGIONAL DIRECTOR

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)____________________________) s.sx___________________________x

BEFORE ME, this ________ day of ________________, 201 __ at _______________, PhilippinesPersonally appeared

Name ID NumberDPWH MARIANO R. ALQUIZA, CESO III ________________________DILG ANANIAS M. VILLACORTA, CESO III ________________________MAYOR RODRIGO R. DUTERTE _________________________ Known to me to be the same persons who executed the foregoing instrument and acknowledge to me that the same is their free and voluntary acts and deeds and of the entities they represent.

WITNESS MY HAND AND NOTARIAL SEAL ____________________________

Notary PublicDoc. No. __________Page No. __________

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Book NO.__________ Series of

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