NPM No. 003-2017

Requesting Entity: Commission on Audit (COA) National Government Sector Cluster 6

Issues Concern: Funds Received by the United Nations Development Programme (UNDP) from the Government of the Philippines (GoP) to Finance UNDP Development Support Services



Whether the GoP-UNDP cost sharing agreements in the implementation of Bottom-up Budgeting (BuB) projects is covered by the opinion stated in Policy Matter (PM) Opinion No. 01-2015, i.e., the GPPB recognized the provisions of the Standard Basic Assistance Agreement (SBAA) in faithful observance of our international obligations (pacta sunt servanda), such that procurement by UNDP utilizing contributions or funds received from the GoP, pursuant to the 1977 SBAA is governed by the UNDP-FRR, which embodies the processes, procedures, rules and regulations that the UNDP may adopt in the conduct of its procurement activities to implement identified UNDP development support services.

We wish to clarify that the non-applicability of RA 9184 to the contributions or funds received by the UNDP from the GoP depends on a determination that such funds transferred or contributed to the UNDP was made pursuant to the 1977 SBAA. Thus, those transfers and contributions made pursuant to the 1977 SBAA, for those projects similarly situated, are covered in the PM Opinion on the non-applicability of the provisions of RA 9184 and its IRR.