Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ______ 
INTRODUCED BY REP. HARRIS CHRISTOPHER M. ONGCHUAN 
       EXPLANATORY NOTE 
The COVID-19 global pandemic has seen a lot of lapses in terms of healthcare 
in the country. There has been a lack in terms of facilities, medicines, professionals, 
and other lapses which are currently being addressed by the government. 
The State recognizes that there is a need to protect the welfare of every Filipino. 
This protection includes the guarantee to every Filipino that resources would be made 
available to them by the State in times of need and one of the lapses that can be seen 
during the COVID-19 is the lack of sufficient medicine and its supply. The lack of 
available medicines made it difficult for healthcare professionals to address the needs 
of the patients; with some patients even needing their relatives to go around the metro 
in search for the medicines they so desperately need.  
The purpose of this measure is to ensure the preparedness of the government 
in terms of medicine supply when there is a public health emergency. This measure 
permits the government to stockpile strategic medicines and supplies which are 
deemed important to overcome the public health emergency.  
This bill was first filed by Rep. Helen Tan. Without the successful passage of 
the bill, this measure is being refiled in the 19th Congress.  
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
HARRIS CHRISTOPHER M. ONGCHUAN 
August 30, 2022
8:02 am
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 Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO.  _________ 
Introduced by Representative 
HARRIS CHRISTOPHER M. ONGCHUAN 
AN ACT  
PROVIDING FOR THE STOCKPILING OF STRATEGIC AND CRITICAL 
DRUGS AND MEDICINES, VACCINES, DEVICES, AND MATERIALS FOR 
THE PUBLIC HEALTH EMERGENCIES, CREATING FOR THE PURPOSE THE 
HEALTH PROCUREMENT AND STOCKPILING BUREAU UNDER THE 
DEPARTMENT OF HEALTH, AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. - This Act shall be known as the "Health Procurement and 
Stockpiling Act". 
SECTION 2. Declaration of Policy. — It is the policy of the State to protect and 
promote the right to health of the people and instill health consciousness among 
them. The State also mandates the adoption of an integrated and comprehensive 
approach to health development. 
Towards the end, it shall protect public health and safety by preventing and 
controlling the spread of diseases and other health hazards through the stockpiling 
of essential and critical drugs and medicines, vaccines, devices, and materials to 
effectively and swiftly address the devastating consequences of public health 
emergencies.  
SECTION 3. Definition of Terms. — As used in this Act: 
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(a) Countertrade refers to a supplemental trade tool in connection with transactions 
involving the importation or procurement of foreign capital equipment, 
machinery, products, goods and services and amounting to at least One 
million dollars (US$1 M) and above or its foreign currency equivalent. It shall 
also cover any of the following arrangements: 
(i) 
Counterpurchase - also known as counter exports, this refers to parallel 
transactions or reciprocal trade, whereby the foreign supplier 
reciprocally commits to purchase Philippine goods or services, to be 
exported to the supplier's country or a third country; 
(ii) 
Product Buy Back - whereby the foreign supplier of the equipment or 
machinery is paid for with the resultant product(s) or good(s) made or 
manufactured by such equipment or machinery; 
(iii) 
Offset - whereby the foreign supplier commits to introduce investments 
or technology transfer in the Philippines or assist in establishing new 
industries or improving existing industries to generate or save foreign 
exchange or create increased employment which may or may not be 
related to the machinery, equipment, products, or goods so imported or 
services procured.  
(iv) 
Trade-for-Debt Swap - whereby a loan or credit accommodation obtained 
by a government agency or government-owned or -controlled 
corporation from a foreign government or creditor which has remained 
outstanding and unpaid is arranged to be settled in full or partially by 
way of sales of products, goods or services to be provided by a third 
party rather than by payment and foreign currency; or 
(v) 
Any form of combination or variation of the above arrangements that 
results in the inflow to the country of foreign exchange, or savings 
thereof, investments, training and technology transfer, grants for 
educational, scientific, technological, environmental and related 
research programs or projects, which will enhance Philippine industrial 
or export competitiveness or contribute to the creation of new 
competitive industries, enhance existing industries or utilization of 
Philippine services or expertise by foreign clients, or result in the 
reduction of public debt;  
(b) Device refers to instruments, apparatus, or contrivances, including their 
components, parts, and accessories that are authorized by the Food and Drug 
Administration (FDA), intended (1) for use in the diagnosis, cure, mitigation, 
treatment, or prevention of disease in man; or (2) to affect the structure of any 
function of the human body; 
(c) Drugs and medicines refer to any chemical compound or biological substance 
other than food, that are authorized by the FDA, intended for use in the 


treatment, prevention, or diagnosis of disease in humans or animals, 
including: 
(i) 
Any article recognized in the official United States Pharmacopoeia-
National Formulary, official Homeopathic Pharmacopoeia of the 
United States, Philippine Pharmacopoeia, Philippine National Drug 
Formulary, British Pharmacopoeia, European Pharmacopoeia, Japanese 
Pharmacopoeia, Indian Pharmacopoeia, any national compendium or 
supplement to any of them.  
(ii) 
Any article intended for use in the diagnosis, cure, mitigation, 
treatment, or prevention of disease in humans or animals; 
(iii) 
Any article other than food intended to affect the structure or function 
of the human body or animals; 
(iv) 
Any article intended for use as a component of articles specified in 
clauses (i), (ii), and (iii) not including devices or their components, parts, 
or accessories; and 
(v) 
Herbal and/or traditional drugs which are articles of plant or animal 
origin used in folk medicine which are: 
(1) Recognized in the Philippine National Drug Formulary; 
(2) Intended for use in the treatment or cure or mitigation of disease 
symptoms, injury or body defects in humans; 
(3) Other than food, intended to affect the structure or any function 
of the human body; 
(4) In finished or ready-to-use dosage form; and 
(5) Intended for use as a component of any of the articles specified 
in clauses (1), (2), (3), and (4). 
(d) Materials refer to essential medical and/or life-saving supplies needed in times 
of pandemics such as face masks, body bags, personal protective equipment, 
and similar supplies of equipment; 
(e) Public health emergency refers to an occurrence or imminent threat of an illness 
or health condition that:  
(i) 
Is caused by any of the following: 
(1) Bioterrorism; 
(2) Appearance of a novel or previously controlled or eradicated 
infectious agent or biological toxin; 
(3) A natural disaster; 
(4) A chemical attack or accidental release thereof; 
(5) A nuclear attack or accident; or 
(6) An attack or accidental release of radioactive materials; and 
(ii) 
Poses a high probability of any of the following: 
(1) A large number of deaths in the affected population; 


(2) A large number of serious injuries or long-term disabilities in the 
affected population; 
(3) Widespread exposure to an infectious or toxic agent that poses a 
significant risk of substantial harm to a large number of people 
in the affected population; 
(4) International exposure to an infectious or toxic agent that poses 
a significant risk to the health of citizens of other countries; or 
(5) Trade and travel restrictions; and 
(f) Stockpiling refers to an inventory of health commodities and materials or those 
physical reserve of definite quantities of commodities or materials that are 
stored in government warehouses or on government-owned properties that 
are intended for all essential health uses in times of emergencies.  
SECTION 4. Creation of a Health Procurement and Stockpiling Bureau. — There is 
hereby created a body under the Department of Health (DOH) to be known as the 
Health Procurement and Stockpiling Bureau, hereinafter referred to as the Bureau. It 
shall serve as the principal agency mandated to undertake a transparent, fair, 
proactive, and innovative procurement service for the DOH and to stockpile, 
conserve, and facilitate the release of adequate amounts of potentially life-saving 
pharmaceuticals, vaccines, devices, and materials, and times of public health 
emergencies. 
SECTION 5. Organization. - The Bureau shall absorb the Procurement Service and 
Logistics Management Division of the DOH. The Secretary of Health shall determine 
the organizational structure and staffing modifications of the Bureau subject to the 
approval of the Department of Budget and Management (DBM) in accordance with 
the existing civil service laws, rules and regulations. 
The DOH shall ensure an effective and efficient monitoring system for the proper 
implementation of the procurement and stockpiling of drugs and medicines, 
vaccines, devices and materials.  
SECTION 6. Functions and Responsibilities. —The Bureau shall perform the 
following functions and responsibilities: 
(a) Formulate plans, policies, and programs on procurement management; 
(b) Undertake the procurement process in accordance with the Government 
Procurement Reform Act; 
(c) Advise the Secretary of Health on matters pertaining to the procurement of 
goods and services, infrastructure and consultancy services; 
(d) Manage the Bureau’s response activities during a public health emergency; 
(e) Conduct procurement monitoring visits to DOH field offices; 


(f) Provide technical assistance to DOG field offices on procurement matters; 
(g) Identify, in consultation with appropriate agencies, strategic and critical drugs 
and medicines, vaccines, devices, and materials needed for public health 
emergencies that have the distinct capability of being stockpiled in strategic 
and secure areas of the country; 
(h) Maintain a buffer supply of strategic and critical drugs, medicines, vaccines, 
devices, and materials to ensure the availability of these items; 
(i) Facilitate the provision of potentially life-saving pharmaceuticals, vaccines, 
devices, and materials in times of public health emergencies; 
(j) Act as supply-chain manager to ensure the rotation and replenishment of 
stocks, and a steady, available, fresh and adequate supply of drugs and 
medicines, vaccines, devices, and materials which are essential in responding 
to public health emergencies.  
(k) Acquire, release, and properly dispose drugs and medicines, vaccines, devices, 
and materials, as directed by the Secretary of Health; 
(l) Require all suppliers to monitor their stocks and production capacity and 
notify possible supply disruptions at least six (6) months in advance; 
(m) 
Conduct regular analysis and communicate any impending shortage 
ahead of time; 
(n) Facilitate 
the 
creation 
of 
a 
conducive 
environment 
to encourage 
pharmaceutical and device self-sufficiency for medical supplies needed by the 
country by forging public-private collaboration with institutions, sectors and 
industry, which could bolster government efforts to achieve pharmaceutical 
and device self-sufficiency; 
(o) Make an in-depth study on drugs and medicines, vaccines, devices, and 
materials to avoid supply shortage in the country; 
(p) Maintain a publicly accessible inventory database of the available commodities 
and stocks of all items included in the proposed stockpile, including the 
expiration dates of relevant stocks and their purchase prices; 
(q) Spearhead the crafting of a multi-sector National Drug and Device Security 
Program geared towards the country’s self-reliance in producing drugs and 
medicines, vaccines, devices, and materials; and 
(r) Ensure adequate provision of the appropriate storage and containment 
facilities in strategic areas of the country that properly comply with 
requirements for room temperature and humidity, refrigeration and non-
exposure to heat, sunlight, rain and moisture. 
  
SECTION 7. Sources. — Consistent with the country's obligations under 
international treaties and agreements, drugs and medicines, vaccines, devices, and 
materials may be obtained from domestic or foreign sources in the procurement 


thereof shall be open to all eligible suppliers, manufacturers and distributors. 
However, in the interest of availability, efficiency, and timely delivery of drugs and 
medicines, vaccines, devices, and materials, the Bureau shall encourage the 
development of domestic sources to ensure steady, available and adequate supply of 
such drugs and medicines, vaccines, devices, and materials that are essential in 
responding to public health emergencies, and in such manner as may be allowed by 
law, to include countertrade and industrial cooperation to augment stockpiling and 
availability of critical materials by: 
(a) Purchasing, or making a commitment to purchase, either directly or through 
countertrade, strategic and critical drugs and medicines, vaccines, devices, and 
materials of domestic origin, when such are needed for the stockpile;  
(b) Contracting with domestic facilities, or making a commitment to contract with 
domestic facilities, for the processing or refining and strategic and critical 
drugs and medicines, vaccines, devices, and materials in the stockpile when 
processing or refining is necessary to convert such into a form more suitable 
for storage and subsequent disposition; 
(c) Identifying existing domestic facilities and domestically produced strategic 
and critical drugs and medicines, vaccines, devices, and materials to meet the 
requirements of public health and essential civilian industries in times of 
public health emergency when existing domestic sources of supply are either 
insufficient or vulnerable to single points of failure; and 
(d) Contracting with domestic facilities to recycle strategic and critical devices and 
materials, thereby increasing domestic supplies when such devices and 
materials would otherwise be insufficient to meet public health needs.  
SECTION 8. Industrial Colalboration Program. - The DOH shall implement an 
Industrial Collaboration Program wherein it shall maintain and develop institutional 
linkages or partnerships with government and non-government institutions, 
including the DBM, Department of National Defense, Department of Interior and 
Local Government, Department of Social Welfare and Development. The Department 
of Finance, Department of Trade and Industry, National Disaster Risk Reduction and 
Management Council, FDA, Bureau of Customs, Philippine Council for Health 
Research and Development, Philippine International Trading Corporation, 
Government Procurement Policy Board, the Price Negotiation Board as provided 
under Section 28(b) of Republic Act No. 11223, otherwise known as the “Universal 
Health Care Act”, World Health Organization, Philippine Red Cross, and other 
pertinent institutions, concerning the procurement, management, distribution, and 
utilization of drugs and medicines, vaccines, devices, and materials in the stockpile.  


SECTION 9. Establishment of Medical Stockpiling Fund and Tax Exemptions. - All 
donations, contributions, grants, bequests, or gifts, in cash or in kind received from 
various sources, shall be placed into a fund, to be known as the Medical Stockpiling 
Fund. This Fund shall be expended to support the National Drug and Device Security 
Program in accordance with the existing budgeting, accounting and auditing rules 
and regulations.  
The DOH may solicit and receive grants, bequests, endowments, donations and 
contributions which shall form part of the Fund. Said grants, bequests, endowments, 
donations and contributions used actually, directly and exclusively for the purpose 
of the Fund shall be exempt from donor’s tax and same shall be considered as 
allowable deduction from gross income for purposes of computing the taxable 
income of the donor, in accordance with Section 34(H)(2)(a) of the National Internal 
Revenue Code of 1997, as amended. Likewise, fund raising activities may be 
conducted by the DOH and the proceeds of which shall accrue to the Fund and shall 
be exempt from any and all taxes.  
Receipts from donations, whether in cash or in kind, shall be accounted for by the 
DOH in accordance with accounting and auditing rules and regulations. The receipts 
from cash donations and proceeds from the sale of donated commodities shall be 
deposited with the National Treasury and recorded as a special account in the 
General Fund and shall be made available to the DOH through a special budget 
pursuant to Section 35, Chapter 5, Book VI of Executive Order No. 292. The cash value 
of the donations shall be deemed automatically appropriated for the purpose 
specified by the donor. Donations with a term not exceeding one (1) year shall be 
treated as trust receipts.  
The DOH shall submit the quarterly reports of all donations received, whether in cash 
or in kind, and expenditures or disbursements thereon with electronic signature to 
the Secretary of the DBM, through the Unified Reporting System, and to the Speaker 
of the House of the Representatives, the President of the Senate of the Philippines, 
the Chairpersons of the House Committee on Appropriations and the Senate 
Committee on Finance, and the Chairperson of the Commission on Audit, by posting 
such reports on the DOH website for a period of three (3) years. The Secretary of 
Health shall send written notice to the said offices when reports have been posted on 
its website, which shall be considered the date of submission.  
SECTION 10. Report to Congress. — The DOH shall submit an annual report to the 
Congress of the Philippines, through the Committee on Health of the House of 
Representatives and the Committee on Health and Demography of the Senate, on or 


before February 15 of each year, detailing its operations under this Act, which shall 
include information regarding: 
(a) Foreign and domestic purchases of stockpiled drugs and medicines, vaccines, 
devices, and materials; 
(b)  Acquisition and disposal of stockpiled drugs and medicines, vaccines, 
devices, and materials; and 
(c) Such other pertinent information on the implementation of this Act. 
SECTION 11. Appropriations. — The amount for the initial implementation of this 
Act shall be charged against the current year’s appropriation of the DOH. Thereafter, 
the funding of which shall be included in the annual General Appropriations Act. 
SECTION 12. Implementing Rules and Regulations. — The Secretary of Health, in 
consultation with appropriate government agencies, shall promulgate the necessary 
rules and regulations for the implementation of this Act within sixty (60) days from 
tis effectivity. 
SECTION 13. Separability Clause. — The Secretary of Health, in consultation with 
appropriate government agencies, shall promulgate the necessary rules and 
regulations for the implementation of this Act within sixty (60) days from its 
effectivity. 
SECTION 14. Repealing Clause. — All laws, executive orders, presidential decrees, 
presidential proclamations, letters of instruction, rules and regulations or part thereof 
which are inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly. 
SECTION 15. Effectivity. — This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
Approved.