SEVENTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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Third R eg u la r Session 
]
SENATE
S.B. No. 
2223
(SftiM1 of tbf
*19 
MAY 15 
P I :28 
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RECEiV.l;^"
In tro d u ced  by SEN. WIN GATCHALIAN
AN ACT 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 ODA lenders requiring the purchase or procurement of 
goods or services from donor countries of ODA in view of the financial risks 
they are assuming. 
,. t


While these loans will enable the Philippine government to deliver 
necessaiy 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 at least 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 interests of the ordinary
Filipino worker, the passage of this bill is earnestly sought.


SEVENTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
T h ird  R e g u la r Session
]
SENATE
s .B . No. 2223
o( tlK fl'ftrftirj'
•19 
MAY 15 P I 2 8  
• r : 
■ - (? —
RECc
In tro d u c e d  by SEN. WIN GATCHALIAN
AN ACT 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 
Philippines in Congress assembled:
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SECTION 1. Section 4 of Republic Act No. 8182 is further amended to 
read as follows:
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 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


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the 
immediately preceding year. 
Said funds shall be
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administered by the NEDA for project identification, feasibility
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studies, master planning at local and regional levels, and
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monitoring and evaluation: Provided, further. That ODA shall
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not be availed of or utilized directly or indirectly for the
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following:
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(a) Telephone programs contracted as of 1 January
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1996 except basic telephone programs and projects for
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rural areas not adequately serviced and/or currently
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developed by private enterprises shall be entitled to
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ODA loan availments;
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(b) Projects mandated primarily by law to be served by
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the private sector; and
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(c) Financing for private corporations with access to
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commercial credit.
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The NEDA shall ensure that the ODA obtained shall be for
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previously identified national priority projects which are urgent
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or necessary. ODA shall not be accepted or utilized solely
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because of its availability, convenience, or accessibility.
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THE NEDA SHALL ENSURE THAT THE STUDIES ON THE
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ECONOMIC, SOCIAL AND ENVIRONMENTAL IMPACT OF
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APPROVED DEVELOPMENT PROJECTS FUNDED BY ODA
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LOANS ARE PUBLISHED IN THE NEDA WEBSITE WITHIN
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FIFTEEN (15) DAYS FROM APPROVAL BY THE NEDA BOARD
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AND FURNISHED TO THE COMMITTEE ON ECONOMIC
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AFFAIRS 
OF 
THE 
SENATE 
AND 
THE 
HOUSE 
OF
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REPRESENTATIVES 
OF 
THE 
PHILIPPINES 
AND 
THE
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COMMISSION ON AUDIT. 
THE NEDA SHALL LIKEWISE
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ANNUALLY PUBLISH AND UPDATE THE LIST OF APPROVED
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DEVELOPMENT PROJECTS FUNDED BY ODA LOANS.
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SEC. 2. Section 11-A of Republic Act No. 8182, as amended by Republic
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Act No. 8555, is amended to read as follows:


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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, 
[or] 
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 
institutionf.j: 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 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.


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SEC. 3. Im plem enting Rules an d  Regulations. -  The DOLE shall
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promulgate implementing rules and regulations (IRR) to implement the
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provisions of this Act within sixty (60) days from its approval.
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SEC. 4. Effectivity. -  This Act shall take effect after fifteen (15) days 
from its publication in the Official Gazette or in any newspaper of general 
circulation.
Approved,
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