NPM No. 021-2019

Requesting Entity: Hon. Mark A. Villar, DPWH Secretary

Issues Concern: Procurement Project funded by Foreign Loan Agreement



Clarification on the applicable procurement procedure on infrastructure project funded by foreign loan.

Section 4 of Republic Act (RA) No. 9184, pursuant to the international legal principle of pacta sunt servanda, expressly recognizes the adoption of other procurement rules and methodology embodied in a treaty or international or executive agreement to which the Philippine government is a signatory.

Considering that the Korean Economic Development Cooperation Fund (EDCF) Loan Agreement has prescribed the use of its own rules in the implementation of the Panguil Bay Project, the Government Procurement Policy Board and its Technical Service Office finds no reason to disturb this well-established legal precept by rendering an interpretation of the EDCF loan procurement rules as against the provisions of RA No. 9184.

Moreover, under Section 4.3 of the 2009 IRR of RA No. 9184, the applicable rules as the Loan Agreement was executed prior to the effectivity of the 2016 revised IRR on October 28, 2016, the negotiating panel that agreed on the procurement rule or methodology to be used is in a better position to comment thereon. In fine, the selection of the winning bidder for the implementation of the Panguil Bay Bridge Project is not covered by the provisions of RA No. 9184 and its 2016 revised IRR.