NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S.B. No. 1150
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*22 AUG 15 A9 38
RECEIVED B\.
Introduced by SEN. WIN GATCHALIAN
AN ACT
REQUIRING FOREIGN BIDDERS AND CONTRACT AWARDEES OF OFFICIAL 
DEVELOPMENT ASSISTANCE-FUNDED PROJECTS TO EMPLOY FILIPINOS 
WORKERS IN THEIR DEVELOPMENT PROJECTS, FURTHER AMENDING 
REPUBLIC ACT NO. 8182, AS AMENDED BY REPUBLIC ACT NO. 8555, AND
FOR OTHER PURPOSES
EXPLANATORY NOTE
Official Development Assistance (ODA) provides a relatively more concessional 
means of financing government programs and projects aimed to promote sustainable 
social and economic development and welfare in the Philippines.
To assist in achieving this goal, Republic Act No. 8182, as amended, or the ODA 
Law, essentially made It easier for the government to accept non-financial terms 
prescribed in loan agreements by authorizing the President to waive or modify the 
application of any provision of law granting preferences or imposing restrictions on 
procurement - particularly the preferences given to Filipinos. In effect, it enabled the 
government to consent to the tied-up provisions imposed by OD.A lenders requiring 
the purchase or procurement of goods or services from donor countries of ODA in 
view of the financial risks they are assuming.


While these loans will enable the Philippine government to deliver necessary 
development projects and the ODA lender countries will benefit from such tied-up 
provisions, the ordinary Filipino workers are deprived of the opportunity to work and 
partake in the benefits of the loan the Filipino taxpayers will be paying for. Thus, this 
bill seeks to require foreign bidders or contract awardees coming from donor countries 
to employ or hire Filipino workers to perform manual, non-technical or other analogous 
labor In carrying-out these development projects. This legislation proposes that the 
implementing agencies, together with the Department of Labor and Employment, 
Department of Justice, and Department of Finance, be primarily responsible In 
monitoring compliance by these foreign bidders or contract awardees with Philippine 
laws, rules and regulations, especially those in the Interest and for the protection of 
Filipino workers.
Finally, the necessity to carefully assess the social, environmental and economic 
Impact of these development projects before project approval must be emphasized. 
This bill thus requires the National Economic and Development Authority to publish 
the studies on the social, environmental and economic impact of these ODA-funded 
development projects to promote the transparency of the process and ensure the 
accountability of the approving authorities and officials.
For the primordial protection and promotion of the best interest of the ordinary
sought.
IWGATCHAmN


Senate
ViBiUcf of rijc' £?f£i-ptnrj>
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
]
SENATE
s.B. no.1150
*22 AUG 15 A 9 38
Introduced by SEN. WIN GATCHALIAN
AN ACT
REQUIRING FOREIGN BIDDERS AND CONTRACT AWARDEES OF OFFICIAL 
DEVELOPMENT ASSISTANCE-FUNDED PROJECTS TO EMPLOY FILIPINOS 
WORKERS IN THEIR DEVELOPMENT PROJECTS, FURTHER AMENDING 
REPUBLIC ACT NO. 8182, AS AMENDED BY REPUBLIC ACT NO. 8555, AND
FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Phiiippines in 
Congress assembied:
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follows:
Section 1. Section 4 of Republic Act No. 8182 is further amended to read as
Section 4. Use of ODA for equitable development. — The proceeds of 
ODA shall be used to achieve equitable growth and development in all 
provinces through priority development projects for the improvement of 
economic and social service facilities taking into account such factors as 
land area, population, scarcity of resources, low literacy rate, infant 
mortality and poverty incidence in the area: Provided, That rural 
Infrastructure, countryside development and economic zones established 
under the PEZA law shall be given preference in the utilization of ODA
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funds. Towards this end, the National Economic and Development 
Authority (NEDA) shall endeavor to obtain ODA funds from donor 
countries, which shall approximately be five percent (5%) of the total 
ODA loan from the immediately preceding year. Said funds shall be 
administered by the NEDA for project identification, feasibility studies, 
master planning at local and regional levels, and monitoring and 
evaluation: Provided, further. That ODA shall not be availed of or utilized 
directly or indirectly for the following:
(a) 
Telephone programs contracted as of 1 January 1996 
except basic telephone programs and projects for rural areas 
not adequately serviced and/or currently developed by private 
enterprises shall be entitled to ODA loan availments;
(b) Projects mandated primarily by law to be served by the 
private sector; and
(c) Financing for private corporations with access to commercial 
credit.
The NEDA shall ensure that the ODA obtained shall be for previously 
identified national priority projects which are urgent or necessary. ODA 
shall not be accepted or utilized solely because of its availability, 
convenience, or accessibility.
THE NEDA SHALL ENSURE THAT THE STUDIES ON THE 
ECONOMIC, SOCIAL AND ENVIRONMENTAL IMPACT OF 
APPROVED DEVELOPMENT PROJECTS FUNDED BY ODA LOANS 
ARE PUBLISHED IN THE NEDA WEBSITE WITHIN FIFTEEN (15) 
DAYS FROM APPROVAL BY THE NEDA BOARD AND FURNISHED 
TO THE COMMITTEE ON ECONOMIC AFFAIRS OF THE SENATE 
AND THE HOUSE OF REPRESENTATIVES OF THE PHILIPPINES 
AND THE COMMISSION ON AUDIT. THE NEDA SHALL LIKEWISE 
ANNUALLY PUBLISH AND UPDATE THE LIST OF APPROVED 
DEVELOPMENT PROJECTS FUNDED BY ODA LOANS.


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Sec. 2. Section 11-A of Republic Act No. 8182, as amended by Republic Act No.
8555, is amended to read as follows:
Section 11-A. In the contracting of any loan, credit or indebtedness 
under this Act or any law, the President of the Philippines may, when 
necessary, agree to waive or modify the application of any provision of law 
granting preferences in connection with, or imposing restrictions on, the 
procurement of goods, [er] services OR INFRASTRUCTURE PROJECTS: 
Provided, however, That as far as practicable, utilization of the services of 
qualified Filipino citizens or corporations or associations owned by such 
citizens in the prosecution of projects financed under this Act shall be 
prepared on the basis of the standards set for a particular project: 
Provided, further. That the matter of preference in favor of articles, 
materials, or supplies of the growth, production or manufacture of the 
Philippines, including the method or procedure in the comparison of bids 
for purposes therefor, shall be the subject of agreement between the 
Philippine Government and the lending Institution[r]: PROVIDED/ 
FURTHERMORE, THAT IN THE PROCUREMENT OF SERVICES AND 
INFRASTRUCTURE PROJECTS, FILIPINOS SHALL BE EMPLOYED 
OR ENGAGED BY THE WINNING BIDDER OR AWARDEE TO 
PERFORM MANUAL, NON-TECHNICAL OR ANALOGOUS LABOR, OR 
SUCH OTHER FUNCTIONS OR POSITIONS AS DETERMINED BY 
THE DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE): AND 
PROVIDED, FINALLY, THAT THE IMPLEMENTING AGENCY, 
TOGETHER WITH THE DOLE, DEPARTMENT OF JUSTICE AND 
DEPARTMENT OF FINANCE, SHALL MONITOR AND ENSURE 
COMPLIANCE BY THE WINNING BIDDER OR AWARDEE IN THE 
PROCUREMENT OF GOODS, SERVICES OR INFRASTRUCTURE 
PROJECTS WITH ALL PHILIPPINE LAWS, DECREES, EXECUTIVE 
ORDERS, PROCLAMATIONS, RULES AND REGULATIONS, AND


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ISSUANCES, ESPECIALLY THOSE IN THE INTEREST AND FOR THE 
PROTECTION OF FILIPINO WORKERS.
THE DOLE SHALL ANNUALLY SUBMIT A REPORT TO THE 
CONGRESSIONAL OVERSIGHT COMMITTEE ON THE COMPLIANCE 
BY THE WINNING BIDDERS OR AWARDEES OF APPROVED 
DEVELOPMENT PROJECTS FUNDED BY ODA LOANS AND THE 
IMPLEMENTING AGENCIES ON THE REQUIREMENT TO EMPLOY 
OR ENGAGE ONLY FILIPINO WORKERS UNDER THIS PROVISION.
Sec. 3. Implementing Rules and Regulations. - The DOLE shall promulgate 
implementing rules and regulations (IRR) to implement the provisions of this Act within 
sixty (60) days from its approval.
Sec. 4. Separability Clause. — If any provision of this Act is declared invalid or 
unconstitutional, the provisions not affected thereby shall remain in full force and effect.
Sec. 5. Repealing Clause. - All laws, acts, presidential decrees, executive orders, 
administrative orders, rules and regulations, or parts thereof, inconsistent with or 
contrary to the provisions of this Act are hereby amended, modified or repealed 
accordingly.
Sec. 6. Effectivity. - This Act shall take effect after fifteen (15) days from its 
publication in the Official Gazette or in any newspaper of general circulation in the 
Philippines.
Approved,