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RA 8182, as amended by RA 8555 – “Official Development Assistance Act of 1996”

Sec. 2. Official Development Assistance (ODA). – For purposes of this Act, ODA is a loan or loan and grant
which meets all of the following criteria:

(a) It must be administered with the objective of promoting sustainable social and economic
development and welfare of the Philippines;

Sec. 4. Use of ODA for Equitable Development. – The proceeds of ODA shall be used to achieve equitable
growth and development in all provinces through priority development projects for the improvement of
economic and social service facilities taking into account such factors as land area, population, scarcity
of resources, low literacy rate, infant mortality and poverty incidence in the area: Provided, That rural
infrastructure, countryside development and economic zones established under the PEZA law shall be
given preference in the utilization of ODA funds. Towards this end, the National Economic Development
Authority (NEDA) shall endeavor to obtain ODA funds from donor countries, which shall approximately
be five percent (5%) of the total ODA loan from the immediately preceding year. Said funds shall be
administered by the NEDA for project identification, feasibility studies, master planning at local and
regional levels, and monitoring and evaluation: Provided, further, That ODA shall not be availed of or
utilized directly or indirectly for the following:

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The NEDA shall ensure that the ODA obtained shall be for previously identified national priority projects
which are urgent or necessary. ODA shall not be accepted or utilized solely because of its availability,
convenience, or accessibility. (as amended by R.A. 8555)

Sec. 9. Continuous Monitoring. – All concerned implementing and oversight agencies shall submit to the
NEDA all information and reports as may be required by it to review draft contracts and to assess the
performance of individual ongoing projects as well as the overall performance of all projects which are
funded in whole or in part by ODA.

Sec. 11. Implementation, Restrictions, Rules and Regulations. – In the implementation of the projects: (a)
Consultants for the feasibility and design aspects of the project may not participate, directly or
indirectly, in any subsequent phase of project implementation; (b) Project execution shall not be
delegated by the implementing agency except where the latter does not have the capacity to implement
such project; (c) In the hiring of consultants, contractors, architects, engineers, and other professionals
necessary for a project’s implementation, Filipinos shall be given preferences; (d) In the purchase of
supplies and materials, preference shall be given to Filipino suppliers and manufacturers, so long as the
same shall not adversely alter or affect the project, and such supplies and materials are to the standards
specified by the consultants, contractors, architects, engineers, and other professionals connected with
the projects; and (e) ODA projects shall not be exempt from the requirement of first obtaining an
Environmental Compliance Certificate (ECC), or other such certificates and clearances necessary or
required by law for the purpose of environmental protection, from the Department of Environment and
Natural Resources (DENR) or proper government agency, as the case may be.

Sec. 11-A. In the contracting of any loan, credit or indebtedness under this Act or any law, the President
of the Philippines may, when necessary, agree to waive or modify the application of any provision of law
granting preferences in connection with, or imposing restrictions on, the procurement of goods or
services: Provided, however, That as far as practicable, utilization of the services of qualified Filipino
citizens or corporations or associations owned by such citizens in the prosecution of projects financed
under this Act shall be prepared on the basis of the standards set for a particular project: Provided,
further, That the matter of preference in favor of articles, materials, or supplies of the growth,
production or manufacture of the Philippines, including the method or procedure in the composition of
bids for purposes therefor, shall be the subject of agreement between the Philippine Government and
the lending institution. (as amended by R.A. 8555)

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