NPM 004-2011

Requesting Entity: Procurement Service - Department of Budget and Management

Issues Concern: List of Countries with Reciprocal Rights



1. Whether there is an available list of the countries with which the Philippines has reciprocal rights as mentioned in Section of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) 9184.

[T]he GPPB is presently coordinating with the Department of Foreign Affairs (DFA) in creating the list of countries with which the Philippines enjoy reciprocal rights on matters of eligibility of its nationals in public procurement abroad.

Please note, however, that said list shall not include countries covered by treaties or international or executive agreements as provided under Section 4 of the IRR of RA 9184. In such instances, it is the foreign bidder which has the burden of proving, through the submission of the proper documents, the existence and validity of any treaty, international or executive agreement which allow them to bid in the particular procurement project.

2. How shall the Procurement Service - Bids and Awards Committee (PS-IABAC) proceed in the evaluation/post-qualification of bidders in Public Bidding considering the non-availability of the list and the fact that the DFA does not also maintain such list?

[T]he GPPB and it Inter-Agency Technical Working Group resolved to amend the Guidelines on the Determination of Eligibility of Foreign Suppliers, Contractors, and Consultants to Participate in Government Procurement Project such that pending the issuance of the list, foreign bidders claiming eligibility by reason of reciprocity shall submit a certification from the relevant office from the bidder's country of origin that Filipinos are allowed to participate in their government procurement activities for the same item/product.

[I]t is our considered opinion that the PS-IABAC may proceed with its procurement activities notwithstanding the non-availability of the list by requiring the submission by the foreign bidders of the abovementioned documents. PS-IABAC shall then verify, validate, and ascertain the authenticity of the statements should the foreign bidder be declared as the Lowest Calculated Bid during post-qualification.