Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 1754

Introduced by HON. LUIS RAYMUND “LRAY” F, VILLAFUERTE, JR.

EXPLANATORY NOTE

Infrastructure is significant in a country's economic growth, diplomatic prestige
and, ultimately, the people's quality of life. However, investments on public sector
infrastructure has long been consistently below 3% of the gross domestic product
(GDP). ' The government has recognized this failing in the past and has since
steadily increased infrastructure spending. In 2015, spending increased to 4% of
GDP. 2016 and 2017 continued the trend with 5.2% (PhP756.4 billion) and 5.4%
(PhP860.7 billion) of GDP respectively.” However, despite the increased spending in
recent years, the Philippines has long been underinvesting in infrastructure causing
an infrastructure deficit yet to be reduced. The Philippines ranked 97" out of 137
countries in the World Economic Forum (WEF) report of 2017-2018." Its score was
the same with Rwanda and surpassed by Kenya, Cape Verde, and Albania.

To close the infrastructure gap, the government aims to spend 7.1% of its
GDP by 2022. Philippine infrastructure is expected to experience robust growth in the
next five years with the local construction industry growing more than half by 2020
with the Three-year Rolling Infrastructure Plan.” To ensure inclusive economic
growth, the construction industry should not be monopolized by infrastructure giants.
The government should also enable smaller players to contribute in their
infrastructure plan. This can be done by allotting them better chances in winning
government infrastructure contracts and amending the Government Procurement Act,
otherwise known as Republic Act No. 9184, accordingly.

This bill seeks to support the local infrastructure industry, promote small
infrastructure firms’ growth and encourage small firms to set up offices in the
provinces. The bill proposes additional eligibility requirements for the procurement of
hard infrastructure projects to give priority to infrastructure firms whose main office is

* hitps://www-rappler.corwbusiness/ 1834 16-infrastructure-philippines-wef-global-competitiveness-index-2017-2018
* hitpi//www philstar-com/businesst20%6/05126/1586914/philippine-construction-works-seen-growing-over-50-2020


situated in the province or region where the project shall be implemented by
determining the participation of prospective bidders for the procurement of
infrastructure projects based on the approved budget for the contract.

In view of the foregoing, immediate passage of this bill is earnestly sought.

LUIS IND “ Y” F. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

1764
HOUSE BILL NO.

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
STRENGTHENING LOCAL INFRASTRUCTURE INDUSTRY PLAYERS,
AMENDING FOR THE PURPOSE SECTION 23 OF REPUBLIC ACT NO. 9184,
OTHERWISE KNOWN AS THE GOVERNMENT PROCUREMENT REFORM
ACT, AND FOR OTHER PURPOSES.

Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled:

SECTION 1. Section 23 of Republic Act No. 9184 otherwise known as the
“Government Procurement Reform Act" is hereby amended to read as follows;

"Sec, 23. Eligibility Requirements for the Procurement of Goods and
Infrastructure Projects. - The BAC or, under special circumstances specified in
the IRR, its duly designated organic office shall determine the eligibility of
prospective bidders for the procurement of Goods and Infrastructure Projects,
based on the bidders’ compliance with the eligibility requirements within the
period set forth in the Invitation to Bid. The eligibility requirements shall provide
for fair and equal access to all prospective bidders. The documents submitted
in satisfaction of the eligibility requirements shall be made under oath by the
prospective bidder or by his duly authorized representative certifying to the
correctness of the statements made and the completeness and authenticity of
the documents submitted.

A prospective bidder may be allowed to submit his eligibility requirements
electronically. However, said bidder shall later on certify under oath as to
correctness of the statements made and the completeness and authenticity of
the documents submitted.

PROVIDED, THAT, FOR THE PROCUREMENT OF
INFRASTRUCTURE PROJECTS, THE PARTICIPATION OF PROSPECTIVE
BIDDERS SHALL BE DETERMINED BASED ON THE APPROVED BUDGET
FOR THE CONTRACT (ABC) AS FOLLOWS;


1. ABC OF ONE HUNDRED MILLION PESOS (P!00,000,000.00)aND
(P100,000,000.00) BELOW - LOCATION OF THE MAIN OFFICE OF
(P200,000,000.00 THE BIDDER MUST

BE WITHIN THE PROVINCE WHERE THE PROJECT SHALL BE

IMPLEMENTED;

2. ABC OF ABOVE ONE HUNDRED MILLION PESOS AND BELOW
TWO HUNDRED MILLION PESOS - LOCATION OF THE MAIN
OFFICE OF THE BIDDER MUST BE WITHIN THE REGION
WHERE THE PROJECT SHALL BE IMPLEMENTED; AND

3. ABC OF ABOVE TWO HUNDRED MILLION PESOS
(P200,000,000.00- LOCATION OF THE MAIN OFFICE OF THE
BIDDER CAN BE ANYWHERE IN THE PHILIPPINES."

SECTION 2. impiementing Rules and Regulations. — The Secretary of the
Department of Public Works and Highways and the Government Procurement Policy
Board shall within sixty (60) days from the effectivity of this Act, jointly issue the
necessary rules and regulations for the effective implementation of this Act.

SECTION 3. Separability Clause. — If any provisions of this Act is declared
unconstitutional or invalid, the other parts or provisions hereof which are not affected
thereby shall continue in full force and effect.

SECTION 4. Repealing Clause. — All other laws, orders, issuances, circulars, rules
and regulations or parts thereof which are inconsistent with the provisions of this Act,
are hereby repealed and/or modified accordingly

SECTION 5. Effectivity Clause. — This Act shall take effect fifteen (15) days after its

Publication in two (2) newspapers of general circulation or the Official Gazette,
whichever comes first.

Approved,