EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S. No
SENATE
980
Sciiai?
of tijr ftfcrptiirp
•19 
AUG 28 
P I  *44
RECEiVlO BV;
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
1 Source: DBM. Budget o f Expenditures. (Accessed April 18, 2017)
2 Richmond Mercuric. Philippine Star. "Philippine construction works seen growing over 50%  by
2020." 
May 
26, 
2016. 
httD ://www.philstar.com /business/2016/05/26/1586914/philippine-
construction-works-seen-arowina-over-50-2020 (Accessed April 19, 2017).


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 providing 
them better chances in winning government infrastructure contracts.
The proposed measure seeks to support the local infrastructure industry, 
promote growth in small infrastructure firms and encourage infrastructure firms to 
set up their offices in the provinces. To achieve these, the bill proposes additional 
eligibility requirements for the procurement of hard infrastructure projects to give 
priority to infrastructure firms whose main office is situated in the province or region 
where the project shall be implemented by determining 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.
mjma
3 http://business.inQuirer.net/225770/Dhilippines-aim5-qolden-aae-infrastructure (Accessed April 19, 
2017).


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
SENATE
s. No. 980
^nuits
of tijr A ctm arp
‘19 
AUG 28 
P I  :44
R E Q i'-.ulIV
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
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
1 
Section 1. Section 23 of Republic Act No. 9184 otherwise known as the
2 
"Government Procurement Reform Act" is hereby amended to read as follows;
3 
"Sec. 23. Eligibility Requirements for the Procurement of Goods and
4 
Infrastructure Projects. -  The BAC or, under special circumstances specified in
5 
the IRR, its duly designated organic office shall determine the eligibility of
6 
prospective bidders for the procurement of Goods and Infrastructure Projects,
7 
based on the bidders' compliance with the eligibility requirements within the
8 
period set forth in the Invitation to Bid. The eligibility requirements shall
9 
provide for fair and equal access to all prospective bidders. The documents
10 
submitted in satisfaction of the eligibility requirements shall be made under
11 
oath by the prospective bidder or by his duly authorized representative
12 
certifying to the correctness of the statements made and the completeness
13 
and authenticity of the documents submitted.
14 
"A prospective bidder may be allowed to submit his eligibility
15 
requirements electronically. However, said bidder shall later on certify under
16 
oath as to correctness of the statements made and the completeness and
17 
authenticity of the documents submitted.


1 
"PROVIDED, 
THAT, 
FOR 
THE 
PROCUREMENT 
OF
2 
INFRASTRUCTURE 
PROJECTS, 
THE 
PARTICIPATION 
OF
3 
PROSPECTIVE BIDDERS SHALL BE DETERMINED BASED ON THE
4 
APPROVED BUDGET FOR THE CONTRACT (ABC) AS FOLLOWS:
5 
1. 
ABC 
OF 
ONE 
HUNDRED 
M ILLIO N 
PESOS
6 
(P 100,000,000.00) AND BELOW. -  LOCATION OF THE MAIN
7 
OFFICE OF THE BIDDER MUST BE W ITH IN  THE PROVINCE
8 
WHERE THE PROJECT SHALL BE IMPLEMENTED;
9 
2. ABC OF ABOVE ONE HUNDRED M ILLIO N  PESOS
10 
(P 100,000,000.00) AND BELOW TWO HUNDRED M ILLIO N
11 
PESOS (P 200,000,000.00). -  LOCATION OF THE MAIN OFFICE
12 
OF THE BIDDER MUST BE W ITH IN  THE REGION WHERE THE
13 
PROJECT SHALL BE IMPLEMENTED; AND
14 
3. ABC OF ABOVE TWO HUNDRED M ILLIO N PESOS
15 
(P 200,000,000.00). -  LOCATION OF THE MAIN OFFICE OF THE
16 
BIDDER CAN BE ANYWHERE IN  THE PHILIPPINES."
17 
Sec. 2. Implementing Rules and Regulations. -  Within sixty (60) days after
18 
the effectivity of this Act, the Department of Public Works and Highways and the
19 
Government Procurement Policy Board shall formulate the rules and regulations to
20 
effectively implement the provisions of this Act.
21 
Sec. 3. Repealing Cause. -  Any law, presidential decree or issuance,
22 
executive order, letter of instruction, rule or regulation inconsistent with the
23 
provisions of this Act is hereby repealed or modified accordingly.
24 
Sec. 4. Effectivity. -  This Act shall take effect fifteen (15) days following its
25 
complete publication in two (2) newspapers of general circulation or in the Official
26 
Gazette.
Approved,