NPM 146-2004

Requesting Entity: Office of the Government Corporate Counsel

Issues Concern: Applicable rules in foreign-funded government procurement contracts



What rules shall govern foreign-funded procurement projects?

The enactment of Republic Act No. 9184 (R.A. 9184) and its Implementing Rules and Regulations Part A (IRR-A) paved the way for the institutionalization of procurement reforms in the country, particularly through the issuance of a streamlined and standardized set of rules and regulations governing procurement of goods, civil works and consulting services. However, as aptly observed, notwithstanding the concept of a uniform set of procedures applicable to various procurement activities of the government, the IRR-A limits its application to fully domestically-funded projects.

Accordingly, foreign-funded procurement activities are to be governed primarily by the procurement guidelines, rules and regulations of foreign financial institutions or grantors. This is because of the absence of implementing rules and regulations for foreign-funded procurement. However, in the event that the loan agreement or grant does not provide for the guidelines or rules to govern the procurement activity, the provisions of IRR-A shall apply in a suppletory character.