Presidential approval for large infrastructure contracts

Letter of Instructions No. 1012 requires Presidential approval for covered large infrastructure contracts awarded through specified bidding and funding conditions.
The covered contracts involve awards by infrastructure agencies through competitive bidding domestically for locally funded infrastructure projects.
The covered contracts also include infrastructure projects that are foreign-assisted where international bidding is not required.
The instruction sets a separate approval threshold for infrastructure projects that are foreign-assisted and awarded through international competitive bidding requiring concurrence of foreign financing institution.
The approval requirement applies to contracts entered into without the approval required herein, which are made void.

Infrastructure contracts awarded through competitive bidding domestically for infrastructure projects which are locally funded require Presidential approval when involving an amount of more than ten million pesos (P10,000,000).
Infrastructure contracts for foreign-assisted infrastructure projects awarded through competitive bidding domestically without international bidding also require Presidential approval when involving an amount of more than ten million pesos (P10,000,000).
Infrastructure contracts awarded as a result of international competitive bidding for foreign-assisted infrastructure projects require Presidential approval when the awards require concurrence of foreign financing institution and the involving amount is more than forty million pesos (P40,000,000).
The approval thresholds are triggered by the contract award amount being exceeding the stated peso figures, namely P10,000,000 and P40,000,000.
The instruction ties the approval requirement to the type of bidding (domestic versus international) and the funding/assistance and financing concurrence scenario.

Any covered contract entered into without the approval required herein is null and void.
Contracts entered into without the required Presidential approval are also of no force and effect.
The nullity applies to contracts that fall within the approval rules based on the instruction’s bidding/funding thresholds and conditions.
The instruction makes Presidential approval a condition of validity for covered large infrastructure contracts.

Contracts entered into by other national government offices, agencies and instrumentalities, including government-owned or controlled corporations continue to be governed by LOI No. 620.
The instruction requires that the Office of the President be immediately informed of such contracts governed by LOI No. 620.
This continuation rule limits Letter of Instructions No. 1012 to the categories of infrastructure contracts specified for infrastructure agencies under its approval thresholds.
The instruction preserves the continuing applicability of LOI No. 620 for contracts outside the specific approval coverage described.

All orders, rules and regulations, and letter of instructions inconsistent with these are repealed or modified accordingly.
This repeal/modification includes but is not limited to LOI 620 insofar as it conflicts with Letter of Instructions No. 1012.
Letter of Instructions No. 1012 operates as the controlling rule on matters covered by its Presidential-approval thresholds and conditions.
Compliance requires adjusting existing inconsistent regulations and instructions to conform with the Presidential approval requirement.