Section 2Sec./Art. 2

Use of Funds. The amount herein appropriated shall be used for the purposes indicated and subject to the applicable Special Provisions under Republic Act No. 9336, the FY 2005 General Appropriations Act, as reenacted: Provided, That the following conditions shall be applicable:

A.

The amount of One billion pesos (P 1,000,000,000.00) appropriated for school building under B.1.w shall be apportioned as follows: (i) Five hundred million pesos (P 500,000,000.00) for the construction and completion of school buildings, and (ii) Five hundred million pesos (P 500,000,000.00) shall be for the rehabilitation, repair and retrofitting of school buildings: Provided, That the funds shall be directly released to and administered by the Department of Public Works and Highways (DPWH): Provided, further, That to encourage the participation of nongovernment organizations (NGOs) in the construction of school buildings, the amount of at least Two hundred fifty million pesos (P 250,000,000.00), of the Five hundred million pesos (P 500,000,000.00) for the construction and completion of school buildings shall be made available to NGOs, including the Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc.

(FFCCCII) for its "Operation Barrio School" program, with capability and proven track record in the construction of public school buildings: Provided, furthermore, That the size of the classroom to be constructed by the FFCCCII and other NGOs shall be forty-nine (49) square meters and the cost of such classroom shall not exceed Two hundred twenty-five thousand pesos (P 225,000.00) inclusive of all administrative charges to be imposed by the DPWH which shall not exceed three-fourths of one (1) percent (0.75%) of the cost per classroom: Provided, finally, That the One billion pesos (P 1,000,000,000.00) for school building shall be used for areas experiencing acute classroom shortage, "areas experiencing acute classroom shortage" shall refer to areas (1) where the number of students divided by the existing number of classrooms shall result in a student-classroom ratio of 60:1 or worse, (2) those where classrooms are temporary in nature or are makeshift structures, or (3) those without any classrooms at all.

B. Upgrading of salaries of uniformed personnel of the BFP and BJMP and the increase in basic pay of PPSC cadets shall be effective July 1, 2006;

C. Miscellaneous Personnel Benefits Fund:

1. Release of the increase in government counterpart contribution due ECC starting 2006 shall be subject to ECC Board approval of a rationalized benefit scheme: Provided, That any new increase in government counterpart contributions may only be made after consultation with the Department of Budget and Management (DBM); and

2. Release of deficiencies in government counterpart contributions due: (i) HDMF, from July 1997 and prior years shall be subject to reconciliation of accounts between DBM and HDMF; and (ii) GSIS, representing deficiency from July 1997 to December 1998 shall, notwithstanding any provision of law to the contrary, be considered as payment on the principal and not on any interest due thereon: Provided, That GSIS undertakes to readjust the benefits of all retirees whose retirement and other benefits were reduced by reason of such deficiency in employer's counterpart contributions.

D. The amounts appropriated under Philippine Veterans Affairs Office, Pension and Gratuity Fund, shall be used to pay the validated arrearages in old age pension due to World War II Veterans.

E. The amount appropriated under H.1.a. for the Commission on Elections of Seven hundred thirty million two hundred thirty-six thousand pesos (P 730,236,000.00) shall be used solely for the preparatory activities for the national and local elections, as provided under Republic Act No. 7166.