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Executive Order No. 312 (2000)

Executive Order No. 312 (2000)

—The utilization and proper management of the coconut levy funds, raised as they were by the State—s police and taxing powers are certainly the concern of the Government. It cannot be denied that it was the welfare of the entire nation that provided the prime moving factor for the imposition of the levy. It cannot be denied that the coconut industry is one of the major industries supporting the national economy. It is, therefore, the State—s concern to make it a strong and secure source not only

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Section 1

Establishment of the ERAP—s Sagip Niyugan Program

Section 1.

Establishment of the ERAP—s Sagip Niyugan Program. The ERAP—s Sagip Niyugan Program is hereby created to provide immediate income supplement to coconut farmers and to encourage the creation of a sustainable local market demand for coconut oil and other coconut products.

Section 2

Features of the ERAP—s Sagip Niyugan Program

Section 2.

Features of the ERAP—s Sagip Niyugan Program. - The Program shall provide the coconut farmers and coconut processing sector the following assistance:

(a) Income Supplement Projects, for coconut farmers to sell their copra and husked nuts at millgate price or better, as follows:

(1) Transport allowance to coconut farmers where government shoulders the costs of transport of copra and husked nuts from farm to mill until prices go beyond the production cost of P6.04 per kilogram of copra;

(2) Marketing assistance to coconut farmers, including transport equipment assistance to coconut farmer organizations and accredited oil mills or desiccators;

(3) Direct buying of copra by the National Food Authority (NFA) at a base price determined by the Philippine Coconut Authority (PCA);

(4) Income support on regular sales of copra and husked nuts directly benefiting coconut farmers through the issuance of incentive coupons the value of which, as determined by PCA, shall be based on the volume delivered; and

(5) Livestock and seedling dispersal through the PCA and accredited farmer organizations.

(b) Coconut Fuel Project which will utilize crude coconut oil (CNO) and coconut methyl ester (coco-diesel) as substitute or extender for bunker fuel and diesel fuel, respectively:

(1) Bunker Fuel-Coconut Oil Complementation Project, where bunker fuel users may substitute 5% to 10% of their fuel requirement with CNO;

(2) Diesel Fuel-Coconut Methyl Ester Complementation Project, where diesel fuel users may substitute up to 70% of their diesel fuel requirement with coco-diesel;

(c) Accelerate the implementation of priority projects under the Maunlad Na Niyugan Tugon Sa Kahirapan Program adopted by the Administration under E.O. No. 210, dated February 10, 2000, including, but not limited to, processing of coconut products and by-products, establishment of small village type oil mills, operation of sari-sari stores, livestock dispersal, aquaculture and horticulture.

Section 3

Implementation of the ERAP—s Sagip Niyugan Program

Section 3.

Implementation of the ERAP—s Sagip Niyugan Program. ? The Program shall be implemented through a joint venture agreement between the PCA and accredited farmer organizations with nationwide, regional, provincial or municipal memberships and network. The PCA shall issue such guidelines as may be necessary in the proper and expeditious implementation of the joint venture agreement.

Section 4

Funding

Section 4.

Funding. - Assets acquired through the coconut levy funds or by entities financed by the coconut levy funds identified by the President for appropriate disposal or sale, shall be sold or disposed to generate a maximum fund of ONE BILLION PESOS (P1,000,000,000.00) which shall be managed by a Committee composed of a Chairman and four (4) members to be appointed by the President whose term shall be co-terminus with the Program. The Committee is authorized to organize a Secretariat for the effective performance of its functions and responsibilities. The Committee may authorize the disbursement of an amount not to exceed two percent (2%) of the fund to defray personnel and maintenance and operating costs of the Committee and its Secretariat, consultative meetings with coconut farmers and information dissemination of the Program.

The PCGG, Office of the Solicitor General and other appropriate government instrumentality are hereby directed to take all necessary steps to implement the purposes and objectives of this Executive Order.

Section 5

Audit of Fund and Submission of Report

Section 5.

Audit of Fund and Submission of Report. - The Committee, by a majority vote, shall engage the services of a reputable auditing firm to conduct periodic audits of the fund. It shall render a quarterly report on all pertinent transactions and availments of the fund to the Office of the President within the first three (3) working days of the succeeding quarter.

Section 6

Termination of the Program

Section 6.

Termination of the Program. - The Program shall be considered terminated upon the exhaustion of the P1 Billion fund.

Section 7

Authority of the President to Extend the Program

Section 7.

Authority of the President to Extend the Program. - The President may, by appropriate issuances and when the situation so warrants, extend the effectivity of the Program and provide additional funds therefor.

Section 8

Repealing Clause

Section 8.

Repealing Clause. - All executive orders, rules and regulations inconsistent herewith are hereby revoked, amended revised and superseded accordingly.

Section 9

Effectivity

Section 9.

Effectivity. - This Order shall take effect immediately.

Done in the City of Manila, this 3rd day of November, 2000.

(SGD.) JOSEPH EJERCITO ESTRADA

By the President:

(SGD.) RONALDO B. ZAMORA Executive Secretary