Development of the Domestic Construction Industry
Letter of Instructions No. 630, issued on November 22, 1977, mandates that civil works contracts in the Philippines be awarded primarily to Filipino individuals or entities with at least 75% Filipino ownership, unless specifically authorized by the President in exceptional cases. It emphasizes that government entities must avoid any arrangements with non-Filipino entities that violate Anti-Dummy laws. Additionally, the instructions do not affect existing agreements related to contracts funded by international financial institutions. This directive is effective immediately and aims to bolster the domestic construction industry.
November 22, 1977
LETTER OF INSTRUCTIONS NO. 630
| TO | : | All Heads of Departments, Bureaus, Agencies, and Offices Including Government-Owned or Controlled Corporations and Local Governments |
In order to encourage and promote the development of the domestic construction industry, the following instructions shall be strictly observed: cdt
1. Unless specifically authorized by the President of the Philippines in exceptional cases, bidding award or negotiations of primarily civil works contracts shall be limited to Filipino individuals and to corporations, partnerships, or associations seventy-five per cent (75%) of the capital of which is owned by citizens of the Philippines; and
2. The contracting government entity shall at all times ensure that no individual, corporation, partnership or association shall enter into any contract, agreement, tie-up, or joint venture arrangement with any non-Filipino entity that would circumvent the provisions of the Anti-Dummy laws.
Nothing in this Letter of Instructions shall negate existing and future commitments with respect to the bidding and award of contracts financed partly or wholly with funds from international lending institutions like the Asian Development Bank and World Bank, as well as from bilateral and other similar sources.
This Instructions shall take effect immediately. aisa dc
DONE in the City of Manila, Philippines, this 22nd day of November, in the year of Our Lord, Nineteen Hundred and Seventy-Seven.