NPM 125-2004-A

Requesting Entity: Department of Transportation and Communications

Issues Concern: Application of Section 4 of Executive Order 109-A, Series of 2003 on Procurement of Consulting Services for the Laguindingan Airport Development Project



Whether or not E.O. 109-A, specifically Section 4(a) thereof, applies to the procurement of consulting services for the Project.

E.O 109-A makes particular reference to the review and approval of government contracts and provides for the rules and procedures in the conduct thereof. On the other hand, R.A. 9184 deals with the modernization, standardization and regulation of the procurement activities of the government; and applies to procurement of infrastructure projects, goods and consulting services, regardless of source of funds, whether local or foreign. True, in the absence of implementing rules and regulations governing foreign-funded procurement activities, the guidelines of the foreign financing institution as contained in the loan agreement, if any, shall govern; and if the loan agreement is silent as to rules of procurement procedure, R.A 9184 and its IRR-A shall be applied.

Prescinding from the foregoing, the rules may not be construed to mean the exclusion of foreign-funded procurement activities from the ambit of E.O 109-A. The reason for the issuance of E.O. 109 and E.O. 109-A remains to be a legitimate concern even in case of foreign-funded procurement, notwithstanding the fact that an entirely different procurement procedure may be in place. The need for expeditious implementation of development projects and the speedy delivery of basic services while promoting transparency, impartiality, and accountability in government transactions remains to be sub-served in the application of E.O 109-A.