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EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES

H.B.No,_4548

Introduced by Rep. Vilma Santos-Recto
6th District of Batangas

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.'

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 2020.7

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”® by providing them better chances
in winning government infrastructure contracts.

* Source: DBM. Budget of Expectures, (Accessed Api 38, 2017)
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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 5)


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EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES
H.B.No._4548

Introduced by Rep. Vilma Santos-Recto
6th District of Batangas

AN ACT
STRENGTHENING LOCAL INFRASTRUCTURE INDUSTRY PLAYERS,
AMENDING FOR THE PURPOSE SECTION 23 OF REPUBLIC ACT NO. 91
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 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 eligi

ity 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 (P100,000,000.00)
AND BELOW. - LOCATION OF THE MAIN OFFICE OF THE
BIDDER MUST BE WITHIN THE PROVINCE WHERE THE
PROJECT SHALL BE IMPLEMENTED;

2. ABC OF ABOVE ONE HUNDRED MILLION PESOS
(P100,000,000.00) AND BELOW TWO HUNDRED MILLION PESOS
(P200,000,000.00). - LOCATION OF THE MAIN OFFICE OF THE
BIDDER MUST BE WITHIN THE REGION WHERE THE PROJECT
SHALL BE IMPLEMENTED; AND

3. ABC OF ABOVE TWO HUNDRED MILLION PESOS
(P200,000,000.00). - LOCATION OF THE MAIN OFFICE OF THE
BIDDER CAN BE ANYWHERE IN THE PHILIPPINES.”

Sec. 2. Implementing Rules and Regulations. — Within sixty (60) days after the
effectivity of this Act, the Department of Public Works and Highways and the Government
Procurement Policy Board shall formulate the rules and regulations to effectively implement
the provisions of this Act.

Sec. 3. Repealing Clause. — Any law, presidential decree or issuance, executive order,
letter of instruction, rule or regulation inconsistent with the provisions of this Act is hereby
repealed or modified accordingly.

Sec. 4. Effectivity. — This Act shall take effect fifteen (15) days following its complete
publication in two (2) newspapers of general circulation or in the Official Gazette.

Approved,