Section 15Sec./Art. 15

PHILVOLCS Modernization Fund. - There is hereby created the PHILVOLCS Modernization Fund to be used exclusively for the PHILVOLCS Modernization Program, which shall be sourced from the following:

(a) An amount of Seven billion pesos (P7,000,000,000.00) appropriated by Congress under the General Appropriations Act (GAA) which shall be treated as a distinct and separate budget item from the regular appropriation for the DOST. For five (5) years following the effectivity of this Act, an amount of One billion two hundred fifty million pesos (P1,250,000,000.00) per year for the first four (4) years and Two billion pesos (P2,000,000,000.00) for the fifth (5th) year shall be appropriated for the PHILVOLCS Modernization Fund. The entire amount of Seven billion pesos (P7,000,000,000.00) including any interest income thereon, shall be used exclusively for capital outlay; and

(b) 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, and to receive grants, bequests, and donations, whether from local or foreign sources.

The PHILVOLCS Modernization Fund shall be administered by the Executive Director of the PHILVOLCS in accordance with existing government budgeting, accounting, and auditing rules and regulations.ℒαwρhi৷