THE IMPLEMENTING rules of the law governing state procurement activities have been revised in a bid to eliminate red tape and increase transparency.

Signed yesterday were the new implementing rules and regulations (IRR) of Republic Act 9184 or the Government Procurement Act, a move officials said would prevent a repeat of the World Bank blacklisting of several local contractors earlier this year.

"This revised IRR seeks to bring us one step closer further to having more efficient procurement system for the government. Where it was lacking before, this IRR incorporates definitive rules on foreign-funded purchases," Budget Secretary Rolando G. Andaya, Jr. said.

Finance Secretary Margarito B. Teves said the move would lead to more efficient use of state revenues, adding, "With this new IRR ... the government may offer more to the people by way of vital public services."

The rules have been expanded to include foreign-funded procurement activities. Previously, all foreign-assisted projects regardless of the amount were covered by the procurement systems of the entity or government providing the financial support.

"For projects worth P5 million and below, these will automatically covered by our rules. Before, we follow their rules which are sometimes not consistent with our laws," Mr. Andaya said.

The new rules also aim to promote greater competition by reducing documentary requirements for prospective bidders. The list of mandatory eligibility documents has been trimmed to six from 16. Documentary requirements proving that a bidder is a valid business entity, meanwhile, have been reduced to two from the previous six.

The World Bank welcomed the development, saying it reflects the government’s commitment to ensure transparency.

"The achievement shows the deepening procurement reform is clearly a priority of the Philippine government in improving efficiency and accountability in the use of public money," acting World Bank Country Director Maryse Gautier said.

Philippine Constructors Association, Inc. Executive Director Manolito P. Madrasto agreed that the new rules would promote transparency and competition but cited the need to remain vigilant.

"We have streamlined things and we will see how it will work ... We expect more transparency and fluidity in the procurement system," he said. "We just have to be watchful."

The new rules superseded earlier procurement law rules signed in 2003.

In January, the World Bank said it had blacklisted seven Filipino and Chinese construction firms, and an individual after evidence showed they had rigged the bidding for a national road project. — A. D. B. Romero