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SEVENTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
SENATE
s. No. 1423
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Introduced by Senator Ralph G. Recto
AN ACT
STRENGTHENING 
LOCAL 
INFRASTRUCTURE 
INDUSTRY 
PLAYERS, 
AMENDING FOR THE PURPOSE SECTION 23 OF REPUBLIC ACT NO. 9184, 
OTHERWISE KNOWN AS THE GOVERNMENT PROCUREMENT REFORM 
ACT, AND FOR OTHER PURPOSES
Explanatory Note
Infrastructure plays a significant role in a country’s economic growth and 
ultimately, the people’s quality of life. However, investments on public sector 
infrastructure have been consistently below 3% of the gross domestic product (GDP) and it 
was only in 2015, that government spending on infrastructure increased at slightly over 4% 
of GDP. Since then, public sector infrastructure budget steadily increased to P756.4 billion 
or 5.2% of GDP in 2016 and P860.7 billion or 5.4% of GDP in 2017.1
Despite the increase in infrastructure spending, our country still has a huge 
infrastructure deficit. To close the large infrastructure gap, the government is planning to 
jack up spending to 7.1% of gross domestic product by 2022. Experts claim that the 
Philippine infrastructure industry is expected to experience robust growth in the next five 
years with the local construction industry seen growing more than half by 2020.2
However, to ensure inclusive growth, the construction industry should not be 
monopolized by the infrastructure giants. The government should also enable small players 
to contribute to its envisioned ‘golden age of infrastructure’3 by allotting them better 
chances in winning government infrastructure contracts.
Tlie proposed measure seeks to support the local infrastructure industry, promote 
growth in small infrastructure finns and encourage infrastructure finns to set up their 
office in the provinces. To achieve these, the bill proposes additional eligibility 
requirements for the procurement of hard infrastructure projects to give priority to 
infrastructure finns whose main office is situated in the province or region where the 
project shall be implemented by detennining the participation of prospective bidders for 
the procurement of infrastructure projects based on the approved budget for the contract.
In view of the foregoing, immediate approval of this bill is earnestly sought.
1 Source: DBM. Budget of Expenditures. (Accessed April 18, 2017)
Richmond Mercurio. Philippine Star. “Philippine construction works seen growing over 50% by 2020.” May 26, 
2016. hltp://\vww.Dhilstar.com/husiness/20l()/05/26/l586[) 14/uhilippine-construction-works-seen-growing-over- 
50-2020 (Accessed April 19, 2017).
htlp://busincss.inquircr.net/225770/philippines-aims-goldcn-agc-inrrastructure (Accessed April 19, 2017).


rf the
SEV ENTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
SENATE 
s. No. 1 4 2 3
*17 
HAY - 2  f P 1 3 9
RECHIVtDCY;
o /
Introduced by Senator Ralph G. Recto
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AN ACT
STRENGTHENING 
LOCAL 
INFRASTRUCTURE 
INDUSTRY 
PLAYERS, 
AMENDING FOR THE PURPOSE SECTION 23 OF 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:
SEC. 1. Section 23 of Republic Act No. 9184 otherwise known as the 
“Government Procurement Reform Act" is hereby amended to read as follows;
“Sec. 23. Eligibility Requirements for the Procurement of Goods and 
Infrastructure Projects. -  The BAC or, under special circumstances specified in 
the IRR, its duly designated organic office shall determine the eligibility of 
prospective bidders for the procurement of Goods and Infrastructure Projects, 
based on the bidders’ compliance with the eligibility requirements within the 
period set forth in the Invitation to Bid. The eligibility requirements shall provide 
for fair and equal access to all prospective bidders. The documents submitted in 
satisfaction of the eligibility requirements shall be made under oath by the 
prospective bidder or by his duly authorized representative certifying to the 
correctness of the statements made and the completeness and authenticity of the 
documents submitted.
A prospective bidder may be allowed to submit his eligibility requirements 
electronically. However, said bidder shall later on certify under oath as to 
correctness of the statements made and the completeness and authenticity of the 
documents submitted.
PROVIDED, 
THAT, 
FOR 
THE 
PROCUREMENT 
OF 
INFRASTRUCTURE PROJECTS, THE PARTICIPATION OF PROSPECTIVE 
BIDDERS SHALL BE DETERMINED BASED ON THE APPROVED 
BUDGET FOR THE CONTRACT (ABC) AS FOLLOWS;
1. ABC OF ONE HUNDRED MILLION PESOS (PI00,000,000.00) AND
BELOW - LOCATION OF THE MAIN OFFICE OF THE BIDDER
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MUST BE WITHIN THE PROVINCE WHERE THE PROJECT SHALL
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BE IMPLEMENTED;
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2. 
ABC 
OF 
ABOVE 
ONE 
HUNDRED 
MILLION 
PESOS
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(PI00,000,000.00) AND BELOW TWO HUNDRED MILLION PESOS
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(P200,000,000.00) - 
LOCATION OF THE MAIN OFFICE OF THE
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BIDDER MUST BE WITHIN THE REGION WHERE THE PROJECT
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SHALL BE IMPLEMENTED; AND
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3. 
ABC 
OF 
ABOVE 
TWO 
HUNDRED 
MILLION 
PESOS
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(P200,000,000.00) -  LOCATION OF THE MAIN OFFICE OF THE
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BIDDER CAN BE ANYWHERE IN THE PHILIPPINES.
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SEC. 2. Implementing Rules and Regulations. -  The Secretary of the Department
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of Public Works and Highways and the Government Procurement Policy Board shall
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within sixty (60) days from the effcctivity of this Act, jointly issue the necessary rules
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and regulations for the effective implementation of this Act.
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SEC. 3. Separability Clause. - If any provision of this Act is declared
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unconstitutional or invalid, other parts or provisions hereof not affected thereby shall
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continue to be in full force and effect.
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SEC. 4. Repealing Clause. - All other laws, orders, issuances, circulars, rules and
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regulations or parts thereof, which are inconsistent with the provisions of this Act are
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hereby repealed or modified accordingly.
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SEC. 5. Effcctivity Clause. - This Act shall take effect fifteen (15) days following
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its publication in at least two (2) newspapers of general circulation or the Official
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Gazette.
Approved,
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