MEMORANDUM CIRCULAR NO. 108 - CLARIFYING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 4860, AS AMENDED, RELATIVE TO AWARD OF CONTRACTS

In view of the provisions of Sec. 4 of Republic Act No. 4860, as amended, otherwise known as the "Foreign Borrowings Act", it is hereby clarified that, for projects supported in whole or in part by foreign assistance awarded through international or local competitive bidding, the government agency concerned may award the contract to the lowest evaluated bidder at his bid price consistent with the provisions of the applicable loan/grant agreement. 

Specifically, when the loan/grant agreement so stipulates, the government agency concerned may award the contract to the lowest bidder even if his/its bid exceeds the approved agency estimate.

It is understood that the concerned government agency shall, as far as practicable, adhere closely to the implementing rules and regulations of Presidential Decree No. 1594 during loan/grant negotiation and the implementation of the projects. 

Please be guided accordingly.

Manila, Philippines, December 26, 1989.

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Since 19.07.98.