EIGHTEENTH CONGRESS OF THE 
]
REPUBLIC OF THE PHILIPPINES 
]
F irst R eg u lar Session 
]
SENATE
S.B. No. 918
S e n a te
(Saicf of Ujt Ai'ciftarf
*19 AUG 19 PI :36
RECEiVcO S^:
In tro d u ce d  by SEN. WIN GATCHALIAN
AN ACT FURTHER AMENDING REPUBLIC ACT NO. 8182, AS AMENDED 
BY REPUBLIC ACT NO. 8555, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Official Development Assistance (ODA) provides a relatively more 
concessional m eans of financing government program s and projects aimed to 
promote sustainable social and economic development and welfare in the 
Philippines.
To assist in achieving this goal, Republic Act No. 8182, as am ended, or 
the ODA Law, essentially m ade it easier for the government to accept non- 
financial term s prescribed in loan agreem ents by authorizing the President to 
waive or modify the application of any provision of law granting preferences 
or imposing restrictions on procurem ent -  particularly the preferences given 
to Filipinos. In effect, it enabled the governm ent to consent to the tied-up 
provisions imposed by ODA lenders requiring the purchase or procurem ent of 
goods or services from donor countries of ODA in view of the financial risks 
they are assum ing.
While these loans will enable the Philippine government to deliver 
necessary development projects and the ODA lender countries will benefit 
from such tied-up provisions, the ordinary Filipino workers are deprived of 
the opportunity to work and partake in the benefits of the loan the Filipino


taxpayers will be paying for. Thus, this bill seeks to require foreign bidders or 
contract awardees coming from donor countries to employ or hire Filipino 
w orkers to perform m anual, non-technical or other analogous labor in 
carrying-out these development projects. This legislation proposes th at the 
im plem enting agencies, together with the D epartm ent of Labor and 
Employment, D epartm ent of Justice, and D epartm ent of Finance, be primarily 
responsible in monitoring compliance by these foreign bidders or contract 
aw ardees with Philippine laws, rules and regulations, especially those in the 
interest and for the protection of Filipino workers.
Finally, the necessity to carefully assess the social, environm ental and 
economic im pact of these development projects before project approval m ust 
be emphasized. This bill th u s requires the National Economic and 
Development Authority to publish the studies on the social, environm ental 
and economic im pact of these ODA-funded development projects to promote 
the transparency of the process and ensure the accountability of the 
approving authorities and officials.
For the primordial protection and promotion of the best interest of the
ordinary Filipino worker, the passage of this bill is earnestjy-sought.


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EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
]
F irs t R e g u la r S essio n  
]
SENATE
S.B. No. 918
S e n a te
^ ^ I t f  of il>f
'I f  
AUG 19 P I 3 6
MCEWcOBV;
In tro d u c e d  by SEN. WIN GATCHALIAN
AN ACT FURTHER AMENDING REPUBLIC ACT NO. 8182, AS AMENDED 
BY REPUBLIC ACT NO. 8555, AND FOR OTHER PURPOSES
Be it enacted by the Senate and the H ouse of R epresentatives of the 
Philippines in Congress assem bled:
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Section 1. Section 4 of Republic Act No. 8182 is further am ended to
2 
read as follows:
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Section 4. Use of ODA for equitable development. — The
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proceeds of ODA shall be used to achieve equitable growth and
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development in all provinces through priority development
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projects for the improvement of economic and social service
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facilities taking into account such factors as land area,
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population, scarcity of resources, low literacy rate, infant
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m ortality and poverty incidence in the area: Provided, That
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rural infrastructure, countryside development and economic
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zones established under the PEZA law shall be given preference
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in the utilization of ODA funds. Towards this end, the National
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Economic and Development Authority (NEDA) shall endeavor to
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obtain 
ODA 
funds 
from 
donor 
countries, 
which 
shall
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approxim ately be five percent (5%) of the total ODA loan from
16 
the 
immediately 
preceding year. 
Said 
funds 
shall 
be


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adm inistered by the NEDA for project identification, feasibility
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studies, m aster planning at local and regional levels, and
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monitoring and evaluation: Provided, further. That ODA shall
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not be availed of or utilized directly or indirectly for the
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following:
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(a) Telephone program s contracted as of 1 Jan u ary
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1996 except basic telephone program s and projects for
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rural areas not adequately serviced a n d /o r currently
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developed by private enterprises shall be entitled to
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ODA loan availments;
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(b) Projects m andated primarily by law to be served by
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the private sector; and
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(c) Financing for private corporations with access to
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commercial credit.
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The NEDA shall ensure th at the ODA obtained shall be for
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previously identified national priority projects which are urgent
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or necessary. ODA shall not be accepted or utilized solely
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because of its availability, convenience, or accessibility.
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THE NEDA SHALL ENSURE THAT THE STUDIES ON THE
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ECONOMIC, SOCIAL AND ENVIRONMENTAL IMPACT OF
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APPROVED DEVELOPMENT PROJECTS FUNDED BY ODA
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LOANS ARE PUBLISHED IN THE NEDA WEBSITE WITHIN
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FIFTEEN (15) DAYS FROM APPROVAL BY THE NEDA BOARD
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AND FURNISHED TO THE COMMITTEE ON ECONOMIC
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AFFAIRS 
OF 
THE 
SENATE 
AND 
THE 
HOUSE 
OF
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REPRESENTATIVES 
OF 
THE 
PHILIPPINES 
AND 
THE
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COMMISSION ON AUDIT. 
THE NEDA SHALL LIKEWISE
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ANNUALLY PUBLISH AND UPDATE THE LIST OF APPROVED
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DEVELOPMENT PROJECTS FUNDED BY ODA LOANS.
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Sec. 2. Section 11-A of Republic Act No. 8182, as am ended by Republic
32 
Act No. 8555, is am ended to read as follows:


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Section 11-A. In the contracting of any loan, credit or 
indebtedness under this Act or any law, the President of the 
Philippines may, when necessaiy, agree to waive or modify the 
application of any provision of law granting preferences in 
connection with, or imposing restrictions on, the procurem ent of 
goods, 
[or] 
services 
OR 
INFRASTRUCTURE 
PROJECTS: 
Provided, however. That as far as practicable, utilization of the 
services of qualified Filipino citizens or corporations or 
associations owned by such citizens in the prosecution of 
projects financed under this Act shall be prepared on the basis 
of the standards set for a particular project: Provided, further. 
T hat the m atter of preference in favor of articles, m aterials, or 
supplies of the growth, production or m anufacture of the 
Philippines, 
including 
the 
m ethod 
or procedure 
in 
the 
com parison of bids for purposes therefor, shall be the subject of 
agreem ent between the Philippine Government and the lending 
institution].]: 
PROVIDED, FURTHERMORE, THAT IN THE 
PROCUREMENT 
OF 
SERVICES 
AND 
INFRASTRUCTURE 
PROJECTS, FILIPINOS SHALL BE EMPLOYED OR ENGAGED 
BY THE WINNING BIDDER OR AWARDEE TO PERFORM 
MANUAL, NON-TECHNICAL OR ANALOGOUS LABOR, OR SUCH 
OTHER FUNCTIONS OR POSITIONS AS DETERMINED BY THE 
DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE): AND 
PROVIDED, FINALLY, THAT THE IMPLEMENTING AGENCY, 
TOGETHER WITH THE DOLE, DEPARTMENT OF JUSTICE AND 
DEPARTMENT OF FINANCE, SHALL MONITOR AND ENSURE 
COMPLIANCE BY THE WINNING BIDDER OR AWARDEE IN THE 
PROCUREMENT OF GOODS, SERVICES OR INFRASTRUCTURE 
PROJECTS 
WITH 
ALL 
PHILIPPINE 
LAWS, 
DECREES, 
EXECUTIVE 
ORDERS, 
PROCLAMATIONS, 
RULES 
AND 
REGULATIONS, AND ISSUANCES, ESPECIALLY THOSE IN THE 
INTEREST 
AND 
FOR 
THE 
PROTECTION 
OF 
FILIPINO 
WORKERS.


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THE DOLE SHALL ANNUALLY SUBMIT A REPORT TO
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THE CONGRESSIONAL OVERSIGHT COMMITTEE ON THE
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COMPLIANCE BY THE WINNING BIDDERS OR AWARDEES OF
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APPROVED DEVELOPMENT PROJECTS FUNDED BY ODA
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LOANS 
AND 
THE 
IMPLEMENTING 
AGENCIES 
ON 
THE
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REQUIREMENT TO EMPLOY OR ENGAGE ONLY FILIPINO
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WORKERS UNDER THIS PROVISION.
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Sec. 3. Implementing Rules and Regulations. -  The DOLE shall
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prom ulgate implementing rules and regulations (IRR) to im plem ent the
11 
provisions of this Act within sixty (60) days from its approval.
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Sec. 4. Effectivity. -  This Act shall take effect after fifteen (15) days from
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its publication in the Official Gazette or in any new spaper of general
15 
circulation.
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Approved,