, 
FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) . 
SENATE 
Senate Bill No. 770 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The controversies that hounded the previous administration i.e. the 
National Broadband Network (NBN)-ZTE deal and the 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. Kolonwel .. 
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. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 770 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
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 PURPOSE 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 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 
source of funds, whether local or foreign, by all branches and 
instrumentalities of government, its departments, offices and agencies, 
including government-owned and/or-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; 
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. 
SEC. 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. 
SEC. 3. Repealing Clause. - All laws, decrees, executive orders, 
proclamations and administrative regulations, or parts thereof inconsistent 
herewith are hereby repealed or modified accordingly. 


SEC. 4. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its publication in at least two national papers of general circulation. 
Approved,