NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No. 3704

Introduced by Representative Ralph G. Recto

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

EXPLANATORY NOTE

Infrastructure plays a significant role in a country’s economic growth and
ultimately, the people’s quality of life. However, investments in public sector
infrastructure have been consistently below 3% of the gross domestic product (GDP)
and it was only in 2015, that government spending on infrastructure increased at
slightly over 4% of GDP. In 2021, National government spending for infrastructure
and other Capital Outlays increased by 31.3% (P213.6 billion) after a huge drop in
2020 due to the discontinuance of some capital outlay projects to fund the COVID-
19 expenditures of the government.!

A study made by the Asian Infrastructure Investment Bank (AIIB) in 2020
showed that the Philippines’ combined public and private infrastructure spending at
5.2% of GDP is lower compared to Thailand (6%), Cambodia (6.8%), Malaysia
(8.1%), Vietnam (8.2%) and Lao PDR (11.3%).? More infrastructure investments are
needed to close the huge infrastructure gap and increase economic productivity.

* Facts in Figures No. 30. “NG Disbursement Performance, FY 2021". May 2022.
? Facts in Figures No. 30. "Public Infrastructure Expenditure”. May 2021


However, to ensure inclusive growth, the construction industry should not be
monopolized by the infrastructure giants. The government should also enable small
players to contribute to its envisioned ‘golden age of infrastructure? by providing

them with better chances in winning government infrastructure contracts.

The proposed measure seeks to support the local infrastructure industry,
promote growth in small infrastructure firms and encourage infrastructure firms to
set up their offices in the provinces. To achieve these, 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 approval of this bill is earnestly sought.

mjma

3 http://business. inquirer.net/225770/philippines-aims-gold
2017).

.ge-infrastructure (Accessed April 19,


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NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES. )
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No. 3704

Introduced by Representative Ralph G. Recto

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.


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“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

(P100,000,000.00) 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

(P100,000,000.00) 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.”

Sec. 2. Implementing Rules and Regulations. — Within sixty (60) days after
the effectivity of this Act, the Department of Public Works and Highways and the
Government Procurement Policy Board shall formulate the rules and regulations to
effectively implement the provisions of this Act.

Sec. 3. Repealing Clause. ~ Any law, presidential decree or issuance,
executive order, letter of instruction, rule or regulation inconsistent with the
provisions of this Act is hereby repealed, amended or modified accordingly.

Sec. 4. Effectivity. - This Act shall take effect fifteen (15) days following its
complete publication in two (2) newspapers of general circulation or in the Official
Gazette.

Approved,