QuestionsQuestions (LETTER OF INSTRUCTIONS NO. 1012)
To require Presidential approval for certain large infrastructure contracts awarded by infrastructure agencies through competitive bidding, specifically based on (a) whether the projects are locally funded or foreign-assisted and (b) the contract amount.
All heads of ministries, bureaus, offices, agencies, and instrumentalities of the National Government, including government-owned or controlled corporations, and all infrastructure agencies involved in awarding the covered contracts.
Contracts awarded domestically for locally funded infrastructure projects involving an amount of more than P10,000,000 require Presidential approval.
Contracts for foreign-assisted infrastructure projects involving an amount of more than P40,000,000 require Presidential approval, when the awards require concurrence of the foreign financing institution.
No. The LOI specifies “more than P10,000,000.” A contract amount equal to P10,000,000 is not within the “more than” threshold.
No. The LOI specifies “more than P40,000,000.” A contract amount equal to P40,000,000 is not within the “more than” threshold.
Such contracts are “null and void and of no force and effect.”
The LOI’s higher threshold condition (over P40,000,000) expressly applies when awards require concurrence of the foreign financing institution. If concurrence is not required, the basis for that specific condition may not apply as written.
They continue to be governed by LOI No. 620, and the Office of the President must be immediately informed of such contracts.
The Office of the President shall be immediately informed of such contracts.
LOI No. 620 is expressly mentioned as “repealed or modified accordingly,” along with any other inconsistent orders, rules, and regulations.
No. It only requires Presidential approval for covered contracts that meet the specified conditions and exceed the stated monetary thresholds.
Yes. P12,000,000 is more than P10,000,000, and the project is locally funded with domestic competitive bidding, so it falls within the LOI requirement.
Yes. It is foreign-assisted, international competitive bidding is used, concurrence is required, and the amount exceeds P40,000,000.
The Presidential approval is treated as a condition of validity for covered contracts; absent the required approval, the contract has no legal effect.
It means the contract cannot be validly perfected/implemented as a covered transaction unless the President grants the required approval; otherwise, it is null and void under the LOI.