Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Representative Michael L. Romero 
    EXPLANATORY NOTE 
The Philippine Pharma Procurement, Inc. (PPPI) formerly known as PITC 
Pharma, Inc. (PPI), is a subsidiary of the Philippine International Trading 
Corporation (PITC) and an affiliate of the National Development Company (NDC). 
It is the only pharmaceutical government owned and controlled corporation 
(GOCC) tasked to provide low priced quality ensured medicines to the Filipino 
people and to which the pharmaceutical operation of PITC was transferred to. 
In July 2016, the corporation officially changed its name to Philippine Pharma 
Procurement, Inc. to highlight one of its mandate provided for under the 
Universally Accessible Cheaper and Quality Medicines Act of 2008 otherwise 
known as Republic Act No. 9502 – that is to establish a common facility for 
pooled procurement that can be accessed by government entities and other 
facilities
undertaking
government
programs. 
The corporation was under the Office of the President when it was created in 
2005.  On 08 August 2007, Executive Order No. 649 was issued placing the 
corporation under the Department of Trade and Industry (DTI) and 
designating the Secretary of the Department of Health (DOH) as Ex-Officio 
Chairman.  This was amended on 10 April 2008 by Executive Order No. 649-A 
transferring the corporation to the DOH and retaining the Secretary of Health as 
the ex-officio Chairman.  On 06 September 2011, Executive Order No. 54 was 
issued placing the corporation under DTI “to improve policy and program 
coordination relative to the Government’s procurement and importation of drugs 
and medicines under RA 9502.” 
November 7, 2022
8:15 am
5801


This House Bill seeks to provide Modernization Funding to the Philippine 
Pharma Procurement, Inc. (PPPI) to promote a procurement organization for 
the pharmaceutical needs of the government. 
. 
 
Thus, the early passage of this bill is earnestly requested.  
MICHAEL L. ROMERO  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Representative Michael L. Romero 
AN ACT 
PROVIDING FOR MODERNIZATION FUNDINGFOR THE 
PHILIPPINE PHARMA PROCUREMENT, INC. (PPPI), INCREASING 
AND REORGANIZING ITS ADMINISTRATION, PROVIDING ACCESS 
TO AFFORDABLE AND QUALITY ESSENTIAL MEDICINES TO 
IMPROVE THE HEALTH CONDITIONS OF FILIPINOS AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 
1. 
DECLARATION OF POLICY – it shall hereby be a declared 
policy of the state to establish a government pharmaceutical procurement 
organization providing access to affordable and quality essential medicines to 
improve the health conditions of Filipinos. 
The state shall continually improve the effectiveness of our Quality Management 
System towards equitable development for improved quality of life for all. 
The state shall formulate policies for the efficient and effective administration 
and management of all manpower, skills and competencies to ensure 
compliance. 
5801


SECTION 
2. 
MODERNIZATION FUNDING. – The amount of Five 
Hundred Million Pesos (Php 500,000,000.00) for the operation and 
administration of the Philippine Pharma Procurement, Inc. (PPPI) shall be 
chargeable against funds for the purpose and other sources recommended by 
the Department of Budget and Management (DBM). Thereafter, appropriations 
for the shall be included in the budget proposals under the Department of trade 
and Industry (DTI). 
 
The Department of Budget and Management (DBM) shall rationalize the existing 
organizational structure and staffing pattern of the in accordance with the 
provisions of this Act and relevant compensation and position classification laws, 
rules and regulations. 
Thereafter, the amount needed for the continued implementation of the 
modernization program, shall be included in the annual General Appropriations 
Act (GAA). 
SECTION 
3. 
PHILIPPINE PHARMA PROCUREMENT, INC. (PPPI) 
MODERNIZATION FUND – There is hereby created the (PPPI) Modernization 
Fund to be used exclusively for the (PPPI) Modernization Program. 
The (PPPI) Modernization Fund shall be administered by the Secretary of the DTI 
in accordance with existing government budgeting, accounting and auditing 
rules and regulations. 
SECTION 
4. 
PROGRESS REPORT – The Secretary of DTI shall 
prepare an annual report on the status of the implementation of the (PPPI) 
Modernization Programs which shall be submitted, to the Office of the President 
and to the Chairpersons of the Committee of Trade and Industry of the Senate 
and the House of Representatives. 


SECTION 
5. 
PERIOD OF IMPLEMENTATION – The modernization 
program under this Act shall be implemented for an initial period of two (2) 
years:  
Provided, that payments for multi-year contract obligations incurred 
under this Act may extend beyond this period:  
Provided, further, That the Philippine Pharma Procurement, Inc. (PPPI) 
shall continue to develop, modernize and constantly update its operational 
capabilities to keep pace with best global practices. 
SECTION 
6. 
POWERS AND FUNCTIONS. – The Philippine Pharma 
Procurement, Inc. (PPPI) shall continue to exercise and uphold the following 
powers and functions; but not limited to: 
PPPI is classified under the Human Development and Poverty Reduction 
Cluster by the Governance Commission for GOCCs (GCG). As defined under 
the 
Implementing 
Rules 
and 
Regulations 
(IRR) 
of 
RA 
9502: 
 
1. Undertake direct importation for government agencies and offer the same 
facility 
to 
private 
parties 
  
• 
Chapter III, Rule 16, Section 1 of the IRR states that: 
“Except for specific programs and 
instances allowed by the DOH, for 
purposes of ascertaining the best and 
most affordable prices and quality of 
drugs and medicines to be imported, all 
government agencies must centrally 
procure through PPI.” 
  


• 
Private parties may opt to avail of PPI’s facility for 
undertaking “procurement, sourcing and marketing of 
quality essential and low-priced medicines.” 
 
2.    Establish a common facility for 
pooled procurement 
  
• 
Chapter XI, Rule 58 of the IRR states that: 
“The PPI or its equivalent agency is 
authorized to establish a common 
facility for pooled procurement in 
compliance with RA 9184.” 
 
3.    Assist in the implementation of 
cost-containment measures i.e. support 
hospital pharmacies, making available 
low cost quality medicines and rational 
and complete drug treatment packs. 
 
4.    Provide support to the DOH in the 
determination of the Maximum Retail 
Price (MRP). 
 
On 25 June 2010, the Government 
Procurement and Policy Board (GPPB) 
confirmed that “PPI may act as a 
servicing agency and that government 
agencies may directly procure imported 
medicines from PPI under the 
alternative mode of negotiated 
procurement (agency-to-agency 


agreements).”  It further ruled that PPI 
may also act as a procurement agent 
for government entities subject to 
Section 53.6 of the Revised IRR of RA 
9184. 
 
SECTION 
7. 
INCREASE OF PERSONNEL. – The Philippine Pharma 
Procurement, Inc. (PPPI) shall maintain the sufficient staffing pattern. Hence, 
it is authorized to increase its manpower to meet such required and may 
continue to increase personnel per percentage rate increase of committed 
mandates annually or as the need arises. 
SECTION 
8. 
TRANSITORY 
PROVISION – 
Existing 
industries, 
businesses and offices affected by the implementation of this Act shall be given 
six (6) months transitory period from the effectivity of the IRR or such other 
period as may be determined, to comply with the requirements of this Act. 
SECTION 
9. 
IMPLEMENTING RULES AND REGULATIONS. – The 
departments and agencies charged with carrying out the provisions of this Act 
shall, within sixty (60) days after the effectivity of this Act, formulate the 
necessary rules and regulations for its effective implementation. 
SECTION 
10. 
REPEALING CLAUSE. – All laws, decrees, executive 
orders, rules and regulations, or parts thereof inconsistent with the provisions 
of this Act are hereby repealed or modified accordingly. 
SECTION 
11. 
SEPARABILITY CLAUSE. – If, for any reason, any 
section or provision of this Act is held unconstitutional or invalid, the other 
sections or provisions hereof shall not be affected thereby. 


SECTION 
12. 
EFFECTIVITY CLAUSE. – This Act shall take effect 
after fifteen (15) days from its publication in the Official Gazette or in at least two 
(2) national newspapers of general circulation whichever comes earlier. 
Approved,