Administrative Order No. 18, s. 1992




WHEREAS, Republic Act No. 7637, simultaneously created the “MT. PINATUBO ASSISTANCE, RESETTLEMENT AND DEVELOPMENT COMMISSION (PARDC) to administer the “PINATUBO ASSISTANCE AND DEVELOPMENT FUND” which provides for the appropriation of P10 billion for the aid, relief and rehabilitation, reconstruction and development of the lahar-stricken areas;

WHEREAS, there is urgent need to promulgate rules and regulations to govern the implementation of the said Act;

NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Philippines, by virtue of the powers vested in me by law, do hereby order the promulgation and adoption of the following rules and regulations to govern the implementation of R.A. 7637:


These rules and regulations shall be known as the Implementing Rules and Regulations (IRR) of Republic Act No. 7637.


It prescribes the policies and guidelines in the administration of the Mt. Pinatubo Fund by the PARDC, pursuant to relevant provisions of the Act in order to facilitate compliance thereto and ensure the fulfillment of its objectives.


Pursuant to Section 7 of RA 7637, the following rules and regulations are prescribed to effectively discharge the powers and functions of the Commission.

A. Policy Formulation and Planning

The Commission shall:

1. Prescribe the overall strategic framework in planning the utilization of the P10 billion Fund provided for and as scheduled in Section 5 of RA 7637.

2. Formulate the policies and approve the Master Plan for the relief, rehabilitation, resettlement, livelihood services and infrastructure support for the Mt. Pinatubo victims.

3. Approve the prioritization of projects as recommended by the Executive Director and changes thereto, together with realignment of funds as found necessary.

4. Approve the annual Work and Financial Plan of the Commission and the corresponding projects for implementation by concerned agencies for submission to DBM.

B. Fund Administration

The Commission shall:

1. Administer judiciously and effectively the P10 Billion Fund by giving priority to resettlement centers, homesites/townsites and establishment of appropriate livelihood programs for the calamity victims. Consultations will be undertaken with the concerned local government units and agencies as well as representatives of the victims in the use of funds for these purposes.

2. Direct the release of funds to implementing agencies in accordance with the usual budgetary processes/requirements. In the event that any implementing agency cannot undertake a project as determined by the Commission, the funds thereof shall be returned to the DBM for further disposition.

3. Establish a system of emoluments for the members of the Commission, the Executive Director and all the consultants and support staff who may be appointed/hired, subject to pertinent laws and policies on personnel compensation.

4. Adhere strictly to the guidelines in the allocation and programming of funds as prescribed in Sections 4 and 5 of RA 7637.

C. Meetings

1. The Commission shall meet at least monthly at a date, hour, and place designated by the Chairman.

2. Commission members, who are members of the Cabinet, together with ex-officio member shall be allowed representation by duly designated permanent alternates.

3. A majority of the members of the Commission shall constitute a quorum for doing business.

4. Resolutions voted upon by the Commission shall be passed by a majority of the members present.

5. Special meetings may be called by the Chairman as are necessary. The Executive Director, with the concurrence of at least two (2) other members, may likewise call for such special meetings.


Pursuant to Section 9 of RA 7637, the Executive Director shall adhere to the following rules and regulations in the exercise of his powers and functions:

A. Planning

1. Prepare and submit to the Commission for approval the Master Plan incorporating therein the objectives and guidelines in Section 3 of RA 7637, and the strategic framework for planning as prescribed by the Commission.

2. Prepare and submit to the Commission an annual operating budget for approval and thereafter ensure the timely provision of adequate funding to all projects.

3. Upon approval by the Commission, undertake negotiations for foreign grants for selected projects under ODA funding.

B. Coordination

1. Coordinate and effect the smooth and immediate transfer of operating funds, records, assets and liabilities of the Task Force on the Rehabilitation of Areas Affected by the Eruption of Mt. Pinatubo created under PMO No. 369, s. 91, as amended, to the Commission.

2. Ensure the synchronization of project implementation by concerned government departments and agencies as prescribed in Section 10, RA 7637.

3. Act as arbiter in reconciling implementation issues among agencies concerned, and elevate to the Commission problems and issues that cannot be resolved at his level.

4. Represent the Commission in official meetings/conferences upon authorization by the Commission.

C. Monitoring

1. Maintain appropriate books, records and reports for the Commission.

2. Prepare reports to the President and Congress as required in Section 12, RA 7637 for the approval of the Commission.

3. Institute appropriate project management procedures and policies that will insure efficient and economical accomplishment of all programs and projects under the Master Plan.

D. Administration

1. Organize an administrative body that will act as Secretariat to the Commission.

2. Hire casual and contractual employees, consultants and other support staff as may be needed subject to the approval of the Commission.

3. Act as the meeting/conference coordinator of the Commission.

4. Render progress reports on all projects being undertaken by concerned agencies to include fund releases, obligated allocations, and corresponding disbursements as prescribed by DBM.

5. Manage the administrative and operating expenses of the Commission.

6. Perform such other duties as directed by the Commission.


The Commission, upon recommendation to the President, may as it deems necessary, amend, revise and/or add to these rules and regulations in order to expedite the implementation of this Act.

This Administrative Order shall take effect immediately.

DONE in the City of Manila, this 20th day of October, in the Year of Lour Lord, Nineteen Hundred and Ninety-Two.

President of the Philippines

By the President:
Executive Secretary

Source: Malacañang Records Office

Office of the President of the Philippines. (1992). [Administrative Orders Nos. : 1 – 100]. Manila : Malacañang Records Office.