Question & AnswerQ&A (EXECUTIVE ORDER NO. 78)
All contracts involving PPP projects, those entered into under RA No. 6957 as amended by RA No. 7718 (the BOT Law), and JVAs between government and private entities issued by NEDA, as well as contracts with LGUs related to these projects, are required or encouraged to include ADR provisions.
The Executive Order promotes the use of conciliation and negotiation, mediation, and arbitration, in the order of their application as efficient tools for resolving disputes.
The EO cites RA No. 876 (The Arbitration Law of 1953), RA No. 9285 (The ADR Act of 2004), Supreme Court rules on court-annexed mediation and Special Rules of Court on ADR promulgated in 2009.
The National Economic and Development Authority (NEDA), in consultation with appropriate government agencies, is responsible for issuing the IRR to implement the EO.
Yes, when parties agree to ADR, both domestic and international ADR mechanisms are highly encouraged, allowing parties freedom to choose the venue, forum, and rules for dispute resolution.
LGUs are encouraged, but not mandated, to include ADR provisions in their contracts, in accordance with their own joint venture rules, guidelines, or procedures.
The Department of Justice through the Office of the Alternative Dispute Resolution (OADR), NEDA through the PPP Center, and government media instrumentalities are tasked with the information campaign.
The State actively promotes party autonomy in resolving disputes and respects the freedom of the parties to arrange their own dispute resolution processes, consistent with RA No. 9285.
The invalidity or unconstitutionality of any provision will not affect the other provisions of the EO, which shall remain valid and subsisting as per the Separability Clause.
EO No. 78 took effect immediately upon its publication in a newspaper of general circulation.