y'

EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

introduced by Representative Rufus B. Rodriquez
House Bill No. 3797
EXPLANATORY NOTE

This bill seeks to require the publication in two (2) national newspapers of general
circulation within one (1) month after the signing of any foreign aid agreement

Foreign aid has been defined as the international transfer of public funds in the form
of loans or loans and grant either directly from one government to another (bilateral
assistance) or indirectly through the vehicle of multilateral assistance like the World Bank

The Philippines is a perennial recipient of foreign aid but even with such assistance,
the country’s development is still lagging behind those of many other nations in Southeast
Asia. This simply reflects the unrealized supposed benefits of foreign aid. Among the
reasons for the dismal result include poor institutional development, corruption, inefficiencies
and bureaucratic failures in the developing countries,

Primarily, however, the lack of transparency in the disclosures of foreign aid granted
to the country and the supposed beneficiary of the same is perceived as one of the main
causes of the wastage in foreign aid. Even a NEDA study shows that the capacity of the
Philippines to meet commitments based on the Paris Declaration on Aid Effectiveness by
2010 is “disturbing.” The Paris Declaration is an intemational agreement endorsed by more
than 100 ministers, heads of agencies and other senior officials on March 2, 2005. It
commits the signatories to increasing efforts in harmonization, alignment and management
of foreign aid, including official development assistance (ODA), using a set of actions and
indications that can be monitored. Of the nine indicators mentioned in Paris Declaration, the
Philippines has so far achieved the 2010 target for only one indicator, that of coordinated
capacity development

Considering the present allegations of misuse or non-use of foreign aid, it is high time
that the government shows transparency in the utilization of foreign aid. This bill requiring
publication of the foreign aid agreement upon its signing is a step in this direction.

In view of the foregoing, approval of this bill is earnestly sought

RUFUYB. RODRIGUEZ


y!

EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES
entative Rufus B Rodriguez
3797

House Bill No.

AN ACT
REQUIRING THE PUBLICATION OF ANY FOREIGN AID AGREEMENT WITHIN ONE
MONTH AFTER THE SIGNING THEREOF IN TWO NATIONAL NEWSPAPERS OF
GENERAL CIRCULATION

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Any agreement on foreign aid, whether loan or loan and grant, shall be
published within one (1) month after the signing thereof in two (2) national newspapers of
general circulation. The publication shall include the agreement itself, the country or
organization which is the source of the foreign aid, the amount involved, the beneficiaries
thereof, the project or program covered, and the conditional ties attached thereto.

SEC. 2. The Director General of the National Economic Development Authority (NEDA) shall
be responsible for the publication mandated by this Act

SEC. 3. Any agreement on foreign aid which does not comply with the provisions of this Act
shall be of no force and effect and shall not bind the government to the terms of the
agreement nor shall be government be bound to pay the amount of the obligations covered
therein

SEC. 4. Within sixty (60) days after the effectivity of this Act, the Director General of the
NEDA shall issue rules and regulations that may be necessary to implement the provisions
of this Act

SEC. 5. Alll laws, decrees, orders, rules and regulations, and other issuances, inconsistent
with this Act are hereby repealed or amended accordingly.

SEC. 6. This Act shall take effect fifteen (15) days after publication in the Official Gazette or
in two (2) national newspapers of general circulation

Approved.