MEMORANDUM CIRCULAR NO. 104 - 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 Sec. 4 of Republic Act No. 4860, as amended, otherwise known as the "Foreign Borrowings Act", which reads:

"Sec. 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 of 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." (Emphasis supplied.)  

Since 19.07.98.