TO:	The Minister of Human Settlements The Minister of National Defense The Minister of Agrarian Reform The Minister of Natural Resources The Minister of Agriculture The Minister of Industry The Minister of Public Highways The Minister of Energy The Minister of Public works The Minister of the Budget The Chairman, Development Bank of the Philippines The Administrator, Agricultural Credit
		Administration
	The Administrator, Southern Philippines
		Development Authority
	The Chairman, Presidential Committee for the
		Rehabilitation and Development of Southern Philippines (PCRDSP)
	All Heads of Ministries, Bureaus, or agencies,
		Government-Owned or controlled corporations, and Local Government units.

WHEREAS, it is the policy of the government to hasten the economic development of Southern Philippines and generate new sources of livelihood for MNLF Balik-Kapatid and other persons involved or affected by the conflict in Southern Philippines;

WHEREAS, it is the desire of the government to involve afore-mentioned segment of society in economic activities designed to promote their own well-being and self-sufficiency in their existence;

WHEREAS, the Presidential Committee for the Rehabilitation and Development of Southern Philippines (PCRDSP) created under Presidential Memorandum Order No. 697 which is chairmanned by the Minister of Human Settlements has been tasked with the rehabilitation and development of Southern Philippines; and

WHEREAS, the Southern Philippines Development Authority (SPDA) has been tasked as the specified agency, under Presidential Decree No. 1703, to institute and implement economic development projects in Southern Philippines.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do hereby order and direct the following:

1.00	The Southern Philippines Development Authority (SPDA) shall establish and develop the Kapatiran Agro-Industrial Cooperative Settlement Project in the area covered by Proclamation No. 2046, dated January 17, 1981, situated in Wao and Bumbaran, Lanao del Sur.
	1.01	It shall organize a Plans and Programs Committee (PPG) as a policy and planning body composed of the following government agencies:
Ministry of Human Settlements/PCHDSP PMO 697 ---------------------- Chairperson Ministry of National Defense ------------------------------------------------ Member Ministry of Agrarian Reform ------------------------------------------------ Member Ministry of Agriculture ------------------------------------------------------- Member Ministry of the Budget ------------------------------------------------------- Member Ministry of Energy ----------------------------------------------------------- Member Ministry of Industry ---------------------------------------------------------- Member Ministry of Natural Resources ---------------------------------------------- Member Ministry of Public Highways ------------------------------------------------- Member Ministry of Public Works ----------------------------------------------------- Member Development Bank of the Philippines -------------------------------------- Member Agricultural Credit administration ------------------------------------------ Member Southern Philippines Development Authority ----------------------------- Member Assemblyman Jamil Lucaian ------------------------------------------------ Member Assemblyman Jamail Dianalan ---------------------------------------------- Member
	1.02	It shall set-up a Project Development Management Staff (PDMS) to support the implementation of the project to be assisted by a technical group or consultants.
2.00	The specific tasks of the participating government agencies in addition to their respective functions are as follows:
	2.01	The Bureau of Forest Development shall undertake the reclassification of all timber-land blocks embrached by the accompanying, Presidential Proclamation and release as alienable and disposable all areas which are suitable for agricultural purpose, particularly those below 18 percent in slope as indicated in the attached Annex Plan "1" , except all those identified and suspected watershed areas within the proclaimed area.
	2.02	The Bureau of Lands shall undertake the topographic and subdivision surveys of the said area. It shall transfer to the Southern Philippines Development Authority (SPDA) all alienable and disposable lands previously released to it.
	2.03	The Bureau of Soils shall undertake the soil survey of the said area.
	2.04	The Ministry of National Defense shall be responsible, through its appropriate major commands of the Armed Forces of the Philippines for the appropriate security within the settlement project including maintaining peace and order therein, and other services within its normal responsibilities.
	2.05	The Ministry of Public Highways shall be responsible for the construction of the access road, bridges and an airport within the settlement project.
	2.06	The Ministry of Public Works shall be responsible for the construction of public buildings, waterworks, and other related engineering works with the settlement project.
	2.07	The Ministry of Agriculture shall assist the organization of farm cooperatives and provide the necessary inputs for the agricultural development of the settlement.
	2.08	The Ministry of Natural Resources shall cancel all permits and not renew agreements upon expirations, which arc inconsistent to Presidential Proclamation No. 2046.
	2.09	The Ministry of Agrarian Reform shall assist to establish the compact farms and other input-supports to the settlement project.
	2.10	The Ministry of Energy will provide the necessary power systems and insure the sufficient supply of oil product to the project.
	2.11	The Ministry of the Budget shall immediately release TWENTY (20) MILLION PESOS out of the Special Activities Funds in the Office of the President as equity contribution to the Southern Philippines Development Authority to underwrite the pre-operation and planning expenses as part of the initial development cost. Release of said amount shall be based on a Work and Financial Plan prepared for the project.
	2.12	The Ministry of Human Settlements shall undertake the establishment of appropriate BLISS sites housing and livelihood projects.
	2.13	The Development Bank of the Philippines shall extent loans and related Financial assistance to the said settlement project and/or underwrite specific project development.
	2.14	The Agricultural Credit Administration shall assist in the organization and management of the settler into compact farm modules including possible financial assistance for inputs and farm implements and equipment.
	2.15	The Southern Philippines Development Authority is hereby directed to supervise and coordinate the project as well as secure funds from local and foreign sources to finance the full development of the settlement.
3.00	Expenses incurred by participating agencies in compliance to the tasks herein stated shall be charged against their respective agency yearly budgetary allocations unless otherwise provided.

All heads of Ministries, Bureaus or Agencies including government-owned and controlled corporations and local government units are hereby directed to extend their full assistance to expedite implementation of the project as may be requested by the Southern Philippines Development Authority of the Ministry of Human Settlements.

DONE in the City of Manila, this 16th day of May, in the year of Our Lord, nineteen hundred and eighty-one.