Republic of the Philippines [y F
HOUSE OF REPRESENTATIVES /

Quezon City
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SEVENTEENTH CONGRESS = \\' 2. 8:
Second Regular Session %
HOUSE BILL nB887

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

* DBM, Budget of Expenditures
2 bid

tps www rappler.comvbusiness/185416-infastructure-philppines-wef-globa-competitveness-index-2017-2018
4 itp thw: hist convbusiness/2016/05/26/1586814/philppine-construction-works-seen-growing-over-60-2020



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
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 RAYMUND “1 F. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

SEVENTEENTH CONGRESS
Second Regular Session

6887

HOUSE BILL NO. 2 ~~
ee ee
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
cath 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;


4. ABC OF ONE HUNDRED MILLION PESOS (PI00,000,000.00) AND
BELOW - LOCATION OF THE MAIN OFFICE OF THE BIDDER MUST
BE WITHIN THE PROVINCE WHERE THE PROJECT SHALL BE
IMPLEMENTED;

2. ABC OF ABOVE ONE HUNDRED MILLION PESOS
(PI00,000,000.00) AND BELOW TWO HUNDRED MILLION PESOS
(P200,000,000.00) - 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. Implementing 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,