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Republic of The Philippines Department of Public Works and Highways Manila

This document outlines the authorized deductions from project costs that the Department of Public Works and Highways can use for engineering and administrative overhead (EAO) and maintenance and other operating expenses (MOOE) under the FY 2022 General Appropriations Act. It provides the breakdown of allocations as follows: up to 3.5% for foreign-assisted projects, up to 3.5% for locally-funded projects released through the central office depending on the implementing office, and up to 2.5% for projects directly released to regional and district offices. The concerned undersecretary must approve all requests for project-related expenses on EAO and authorize the release of funds.

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143 views2 pages

Republic of The Philippines Department of Public Works and Highways Manila

This document outlines the authorized deductions from project costs that the Department of Public Works and Highways can use for engineering and administrative overhead (EAO) and maintenance and other operating expenses (MOOE) under the FY 2022 General Appropriations Act. It provides the breakdown of allocations as follows: up to 3.5% for foreign-assisted projects, up to 3.5% for locally-funded projects released through the central office depending on the implementing office, and up to 2.5% for projects directly released to regional and district offices. The concerned undersecretary must approve all requests for project-related expenses on EAO and authorize the release of funds.

Uploaded by

Jeff
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Oq=J-.'~ ~
Republic of the Philippines 0\ ~ 2% - 1022
DEPARTMENTOF PUBLIC WORKS AND HIGHWAYS

•
DEPARTMENT
jA~ 1 7 1611
ORDER)
OFFICE OF THE SECRETARY

SUBJECT
Manila

Breakdown of the Allocation of the


Authorized Deductions from Project

NO.
13 l
)
Related Expenses to be used for
Engineering and Administrative
SERIES OF 2022 M 11~lt02Z Overhead (EAO) and MOOE under FY
2022 GAA, DPWH Budget

Section 14, Special Provisions of the General Appropriations Act (GAA) FY 2022, states that:

See. 14. Project Related Expenses. For infrastructure projects costing more than
One Million Pesos (Pl/00~000.00)/ the DPWH is authorized to deducC but not to
exceed the following percentages of the project cost, to be used for: (i) EAO
expenses or (il) MOOE:

a) Three and one-half percent (3.5%) for releases to the Central Office/
b) Two and one-half percent (2.5%) for releases to the Regional Offices (ROs)/
c) Two percent (2%) for releases to the District Engineering Offices (DEOs)/
d) One percent (1%) for infrastructure projects under the Basic Infrastructure
Program undertaken by the Central Office/ ROs and DEOs: PROVIDED/ That the
1% EAO shall be given only to the implementing uniC regardless where the fund
was released/ and
e) One-half percent (0.5%) for infrastructure projects of other agencies undertaken
by the Central Office/ ROs or DEOs.

For EAO expenses/ the same shall be limited to: (I) administrative overhead including
the hiring of individuals engaged through job-orders or contracts of service or such
other engagement of personnel without any employer-employee relationship/ (il) pre-
construction activities after detailed engineering/ (iil) construction project
management/ (iv) testing and quality contro~' (v) acquisition rehabilitation and repair
of related equipment and parts/ (vI) contingencies in relation to pre-construction
activities. The EAO expenses shall be treated or booked-up as capitalized expenditures
and form part of the project cost.

Disbursements or expenditures by DPWH in violation of the above requirements shall


be void and shall subject the erring officials and employees to disciplinary actions in
accordance with Section 43/ Chapter 5 and Section 8~ Chapter ~ Book VI of EO. No.
29Z and to appropriate criminal action under existing penal laws.
Pursuailt to the foregoing, the breakdown of allocation of the authorized Project Related
Expenses from Project Cost is as follows:

For Foreign-Assisted Projects

Total
3.50%

For Locally-Funded Projects Released to Central Office

Percentage of Deductions/ Retentions from Project Cost


Implementing Office CO RO DEO Total
Central OfficejUPMO - Implemented 2.00% 0.50% 1.00% 3.50%
RO - Implemented 0.50% 2.00% 1.00% 3.50%
DEO - Implemented 0.50% 0.50% 2.50% 3.50%

For Directly Released to RO and DEO

Total
2.50%
2.00% 2.00%

The concerned Undersecretary for RegionaljUPMOjTechnical Operations shall approve all


requests for project-related expenses on EAO and authorize the release of funds to the
concerned implementing office.

This Order supersedes Department Order No. 9 series of 2021, and shall take effect
immediately.

Department of Public Works and Highways


Office of the Secretary

1111111111111111111111111111111111111
WIN2A04099

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