Question & AnswerQ&A (Republic Act No. 8555)
Republic Act No. 8555 is an act amending Republic Act No. 8182 to include provisions that allow the President of the Philippines to waive or modify laws on preferences in the procurement of goods or services in contracting loans, and to outline the utilization and priorities for Official Development Assistance (ODA) funds.
The President may agree to waive or modify the application of any law granting preferences or imposing restrictions on the procurement of goods or services when contracting loans, credits, or indebtedness under the Act or any law, subject to certain conditions ensuring preference to qualified Filipino citizens or corporations where practicable.
As far as practicable, services of qualified Filipino citizens or corporations owned by such citizens shall be utilized, and preferences in favor of Philippine-made articles, materials, or supplies must be agreed upon between the Philippine government and the lending institution.
Factors include land area, population, scarcity of resources, low literacy rate, infant mortality, and poverty incidence in the area to achieve equitable growth and development through priority projects.
Rural infrastructure, countryside development, and economic zones established under the PEZA law are given preference for ODA fund utilization.
NEDA is tasked with endeavoring to obtain ODA funds from donor countries, administer said funds for project identification, feasibility studies, master planning, and monitoring and evaluation of priority development projects.
NEDA shall endeavor to obtain approximately five percent (5%) of the total ODA loan from the immediately preceding year.
ODA funds shall not be utilized directly or indirectly for telephone programs contracted as of January 1, 1996 except basic programs for rural areas underserved by private enterprises, projects primarily mandated for the private sector, and financing for private corporations with access to commercial credit.
NEDA must ensure that ODA funds are used for previously identified urgent or necessary national priority projects and not accepted solely because of availability, convenience, or accessibility.
The Act took effect five (5) days after its publication in the Official Gazette or in at least two national newspapers of general circulation, whichever date came first.