Memorandum Circular No. 104




MALACAÑAN PALACE MANILA BY THE PRESIDENT OF THE PHILIPPINES [ Memorandum Circular No. 104, August 21, 1989 ] CLARIFICATION ON THE APPLICABILITY OF THE AMENDED IMPLEMENTING RULES AND REGULATIONS (IRR) OF PRESIDENTIAL DECREE (P.D.) NO. 1594 RELATIVE TO THE PROSECUTION OF FOREIGN-ASSISTED PROJECTS. In view of the provisions of Section 4 of Republic Act No. 4860, as amended, otherwise known as the “Foreign Borrowings Act”, which reads: “Section 4 in the contracting of any loan, credit or indebtedness under this Act, the President of the Philippines may, when necessary, agree to waive or modify, the application of any law granting preference or imposing restrictions on international competitive bidding, including among others, [Act. No. 4239, C.A. 541, insofar as such provisions do not pertain to construction primarily for national defense or security purposes, R. A. 5183]; Provided, however, That as far as practicable, utilization of the services qualified domestic firms in the prosecution of projects financed under this Act shall be encouraged: Provided, further, that in case where international competitive bidding shall be conducted preference of at least fifteen per centum shall be granted in favor of articles, materials or supplies of the growth, production or manufacture of the Philippines: Provided, finally, That the method and procedure in the comparison of bids shall be the subject of agreement between the Philippine Government and the lending institution.” (Underscoring supplied.) It is hereby clarified that foreign-assisted infrastructure projects may be exempted from the application of the pertinent provisions of the Implementing Rules and Regulations (IRR) of Presidential Decree (P.D.) No. 1594 relative to the method and procedure in the comparison of bids, which matter may be the subject of agreement between the infrastructure agency concerned and the lending institution. It should be made clear however that public bidding is still required and can only be waived pursuant to existing laws. It is also understood that the government infrastructure agencies concerened shall, as far as practicable, adhere closely to the IRR of P.D. No. 1594 during loan negotiations and the implementation of the projects.1aшphi1 Please be guided accordingly. By authority of the President: (Sgd.) CATALINO MACARAIG, JR. Executive Secretary Manila, August 21, 1989 The Lawphil Project - Arellano Law Foundation