SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill NO~ 0 6 9 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
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The controversies that hounded the previous administration Le. 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. 
GOY EJERCITO ESTRADA 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
JUL 23 
i~ 9 :'J\) 
SENATE 
Senate Bill No. 106 S 
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,