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How the Road Board works

In response to the article written by Mr. Jess Diaz in the May 20, 2017 issue of the Philippine STAR, may we invite your attention to the following:

1) The annual budget of the Road Board for project funding is set through an Annual Expenditure Program (AEP) which is adopted by the Board in accordance with the budget ceiling approved by the Department of Budget and Management (DBM);

2) The Road Board does not maintain custody of the Motor Vehicle Users Charge (MVUC) Funds. The Land Transportation Office (LTO) collects the charges and, in turn, remits all monies collected to the Bureau of Treasury which deposits the same into four special trust accounts. The National Treasury, therefore, not the Road Board, has custody of the MVUC funds;

3) Fund releases are authorized through Special Allotment Release Orders (SAROs) and Notice of Cash Allocations in accordance with the pertinent rules and regulations of the DBM;

4) The Road Board is a collegial body composed of the Secretaries of Public Works and Highways (DPWH), Transportation (DOTr), Budget and Management (DBM), and Finance (DOF), and three representatives of private transport organizations. Its mandates is to evaluate eligibility of project requests for MVUC funding;

It does not initiate projects on its own. RA 8794 designates Department of Public Works and Highways (DPWH) and the Department of Transportation (DOTr) as the implementing agencies of MVUC funded road maintenance projects;

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The Road Board is primarily a funding agency and all project implementation/biddings/awards are done through the implementing units such as DOTr, DPWH, LGUs, MMDAs, etc; and

During my incumbency, I have directed that all non-road related projects such as CCTV, lightings, Alcohol Breath Analyzers (ABA), road signages and road surveys will no longer be bidded out at the RBS and instead will be bidded at the PITC and/or DBM. This was approved by the Board on April 6, 2017. LUISITO V. CLAVANO, executive director, Road Board

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