FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
INTRODUCED BY HONORABLE MAR ROXAS 
EXPLANATORY NOTE 
- 
The recent controversies involving the National Broadband Network (NBN) and 
Cyber-Education Projects (CEP) have brought to fore the issue of whether or not Philippine 
procurement laws and processes, particularly Republic Act No. 9184, otherwise known as the 
Government Procurement Reform Act, is applicable to executive agreements involving 
foreign loans, especially in the light of the rulings of the Supreme Court in Abaya vs. Ebdane 
and DBM-PS vs. KoIonwel. 
Presently, RA 9184 expressly states that the same is applicable to the procurement of 
infrastructure projects, goods, and consulting services regardless of source of funds, whether 
local or foreign, pursuant to Section 4 thereof. However, the same Section 4 of RA 9184 also 
provides that any treaty or international or executive agreement to which the Philippine 
government is a signatory shall be observed. There is, thus, an apparent confusion on the 
applicability of RA 9184 on the procurement of goods, services, and infrastructure projects 
that are funded by foreign loans classified as Official Development Assistance. Such 
confusion can only be addressed through the amendment of Section 4, RA 9184 by making it 
categorically clear that executive agreements involving foreign loans are expressly covered 
by the procurement rules and processes laid down under RA 9184. 
In view of the foregoing, the approval of this bill is earnestly sought. 


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FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
\+EG+': i\/f:n ! i'i : 
,X_.~_.I_ 
S E N A T E  
& 
S. No. 
2793 
INTRODUCED BY HONORABLE MAR R O U S  
AN ACT 
SUBJECTING TREATIES, INTERNATIONAL OR EXECUTIVE AGREEMENTS 
INVOLVING FUNDING IN THE PROCUREMENT OF INFRASTRUCTURE PROJECTS, 
GOODS, AND CONSULTING SERVICES, TO BE INCLUDED IN THE SCOPE AND 
APPLICATION OF PHILIPPINE PROCUREMENT LAWS, AMENDING FOR THE 
PROCUREMENT REFORM ACT, AND FOR OTHER PURPOSES. 
PURPOSE REPUBLIC ACT NO. 9184, OTHERWISE KNOWN AS THE GOVERNMENT 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assem bled: 
SECTION 1. Section 4 of Republic Act No. 9184, as amended, otherwise known as the 
Government Procurement Reform Act, is hereby amended to read as follows: 
Section 4. Scope and Application - This Act shall apply to the Procurement of 
Infrastructure Projects, Goods and Consulting Services, regardless of sburce of 
funds, whether local or foreign, by all branches and instrumentalities of 
government, its departments, offices and agencies, including government- 
owned andor-controlled corporations and local government units, subject to 
the provisions of Commonwealth Act No. 138. Any treaty or international or 
executive agreement affecting the subject matter of this Act, [to which] 
ENTERED INTO BY the Philippine Government [is a signatory] PRIOR TO 
THE EFFECTIVITY OF THIS ACT, shall be observed; PROVIDED, 
HOWEVER, THAT NOTHING HEREIN SHALL BE CONSTRUED AS 
WAIVING THE APPLICATION OF THE PROVISIONS OF THIS ACT; 
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PROVIDED, FINALLY, THAT PRIORITY SHALL ALWAYS BE GIVEN TO 
THE APPLICATION OF THE RULES ON COMPETITIVE BIDDING. 
ANY DOUBT WITH RESPECT TO THE SCOPE AND APPLICATION 
OF THIS ACT SHALL BE CONSTRUED IN FAVOR OF COMPETETIVE 
BIDDING. 
SECTION 
2. Separability Clause. - Any portion or provisions of this Act that may be 
declared unconstitutional or invalid shall not have the effect of nullifying other portions and 
provisions hereof as long as such remaining portion or provision can still subsist and be given 
effect in their entirety. 
SECTION 3. Repealing Clause. - All laws, decrees, executive orders, proclamations and 
administrative regulations, or parts thereof inconsistent herewith are hereby repealed or 
modified accordingly. 
SECTION 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two national papers of general circulation. 
Approved, 
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