Requesting Entity: National Irrigation Administration

Issues Concern: Applicability of R.A. 9184 on Foreign Assisted Projects vis-à-vis the Lending Guidelines of the Foreign Lending Institutions


It is worthy to note, however, that although the IRR for domestically funded procurement activities has already been finalized by the GPPB and the JCOC, the same has not yet been approved by the President. Hence, even if there are self-executing provisions in R.A. 9184, the entire law cannot be fully implemented unless and until the IRR therefor has been finally approved by the President and published for dissemination. It is for this reason that we apprise your office that during the third meeting of the GPPB on May 26, 2003, the members unanimously agreed that government agencies are justified in applying Executive Order No. 40, series of 2001, and its IRR, pending the approval of the IRR of R.A. 9184; and that a provision should be included in the Transitory Clause of the draft IRR of R.A. 9184 that in cases where the invitations for bids were issued after the effectivity of R.A 9184 but before the effectivity of its IRR, procuring entities may continue adopting the procurement procedures embodied in E.O. 40 and its IRR, or other applicable procurement laws, rules and regulations.

In view of the foregoing, since the Project was bid out prior to the effectivity of the IRR of R.A. 9184, the provisions of E.O. 40 and its IRR may be applied. Particularly, Section 1.2 of the IRR of E.O. 40 provides as follows:

1.2. For procurement financed wholly or partly from Official Development Assistance (ODA) funds from International Financing Institutions (IFIs), as well as from bilateral and other sources, the corresponding loan/grant agreement governing said funds as negotiated and agreed upon by and between the Government and the concerned IFI shall be observed.

In this regard, based upon your representation that the Project is funded by JBIC, and considering that JBIC has its own procurement guidelines, we believe that these guidelines may be applied by your agency instead of the provisions of the IRR of E.O. 40.