_—— foner Comte reign Coon Land Banks, Atlanta - (Onn e/g Land bari né proceeds of the loan with ‘with the prov of Section I of the ‘Guidelines: Procurement under TB. Loans and IDA Credits. and with the provisions of Schedule —a—a RTC declared the subject bidding null contrary to the rules and procedure prescribed in\ ‘Atlanta posits thatthe City Government of Ti ider any of the enumerated instances Because it is not a men. It further asserts that a provision in the SLA and the City Government of ligan providing for procurement procedures {ifferent from that required under RA 9184 would not be valid since it is not a treaty or an executive agreement Issue ‘Whether the procurement of water pipes by the BAC of the City Government of Tigan should be deemed exempt from the application of RA 9184 Held Yes, RA 9184 is not applicable tothe case Rationale Section 4 of RA 9184 provides that the act shall apply to the Procurement of Infrastructure Projects, Goods and Consulting Services by all branches of the ovement. treaty or international or executive agreement affecting the Dies matter ofthis Act to which the Philippine government isa signatory shall be observed. The IRR of RA 9184 provides that Unless the Treaty oF Intemational tr Executive Agreement expressly provides use of foreign government fore! Grintemational fnaninginstittion procurement procedures an guidelines, Us IRR shall apply to Foreign-funded Procurement for. goods, infrastructure projects, and consulting services by the GOP. ‘The loan agreement in between IRBD and Land Bank question 15 an executes sPrsseent Executive agreement is one concluded between stales in writen form and governed by international law, "wither embodied ina single instrumcry oF in two or more related instruments and whatever its particular designation. er may be in the form of either (a) treaties that require legislative ‘concurrence after ‘executive ratification; or (b) executive agreements that are similar UeatieSy xcept that they do not requir legislative concurrence and are usually Iss Formal and deal with a narrower range of subject matters than treaties Examining its features, the loan agreement between the IBRD and th Tad Bonk isan integral component ofthe Guarantee Agreement executed BY nal law possessed of @ Government ofthe Philippines as a subject of internation ffeaty making capacity, andthe IBRD, which, as an international lending shetiution organized by world governments to provide loans conditioned upon the guarantee of repayment by the borrowing sovereign state, regarded a subject of international law and possessed ofthe capacity to entet 10 creative agreements with sovereign states. Being similar toa treaty but without requiring legislative concurrence. wverned by international law. Owing to this ‘of the Philippines is therefore obligated to the rule of pacta sunt servanda. Considering thatthe loan agreement expressly provides thatthe procurement of the goods to be financed from the loan proceeds shall be in accordance with the IBRD Guidelines and the provisions of Schedule 4, and that the accessory SLA. contract merely follows its principal's terms and conditions, the procedure for ‘competitive public bidding prescribed under RA 9184 therefore finds no application to the procurement of goods forthe Iligan City Water Supply System Development and Expansion Project. ‘The loan agreement is thus go classification, the Government ‘observe its terms and conditions under nnn 9 cea