Section 10Sec./Art. 10

PAGASA Modernization Fund. There is hereby created the PAGASA Modernization Fund to be used exclusively for the PAGASA Modernization Program. The PAGASA Modernization Fund shall be sourced from the following:

(a) The amount of three billion pesos (P3,000,000,000.00) to be taken from the share of the National Government in the gross income of the Philippine Amusement and Gaming Corporation (PAGCOR). For two (2) years after the effectivity of this Act, an amount of one billion five hundred million pesos (P1,500,000,000.00) per year shall be released to the PAGASA. The entire amount of three billion pesos (P3,000,000,000.00), including any interest income thereon, shall be used exclusively for capital outlay.

(b) Income from PAGASA Specialized Products and Services and Cost Recovery Program provided under Section 11 of this Act; and

(c) Loans, grants, bequests, and donations whether from local or foreign sources. The Secretary of the DOST with the approval of the NEDA and subsequently the Department of Finance (DOF) is hereby granted the authority to enter into loan agreements with foreign financial institutions.

The PAGASA Modernization Fund shall be administered by the Administrator of the PAGASA in accordance with existing government budgeting, accounting and auditing rules and regulations.