AN ACT TO AUTHORIZE THE PRESIDENT OF THE PHILIPPINES TO NEGOTIATE AND CONTRACT WITH THE EXPORT AND IMPORT BANK OF TOKYO

Case Overview and Summary

Summary of Republic Act No. 2612

Authorizing the President to Negotiate and Contract Loans
- The President is authorized to negotiate and contract one or several loans not exceeding $12 million with foreign financial institutions or corporations for financing a nationwide telecommunications expansion and improvement project. (Section 1)
- The President can guarantee the payment and performance of obligations under the loan agreements. (Section 2)
- The President can enter into agreements with foreign entities on terms and conditions deemed proper for the project's purposes. (Section 3)

Loan Amount and Currency
- The total principal loan amount shall not exceed $12 million or its equivalent in other currencies. (Section 4)

Procurement and Bidding
- A committee is created to canvass prices and recommend the procurement of telecommunications equipment through public bidding in the Philippines, with the most favorable prices and quality for the government. (Section 5)

Tax Exemptions
- Agreements, payments, telecommunications equipment, and accessories procured and imported under this Act shall be exempt from all taxes, duties, fees, imposts, charges, contributions, and restrictions of the Republic of the Philippines, its provinces, cities, and municipalities. (Sections 6, 7, 8)

Project Execution and Operation
- The Bureau of Telecommunications shall handle the execution and subsequent operation of the nationwide telecommunications expansion and improvement project. (Section 9)
- Projects in municipalities and barrios shall be installed with the consent of the respective municipal and barrio councils. (Section 9)

Funding
- The peso counterpart fund for the project shall be taken from economic development bonds issued under Republic Act No. 1000 and other fund sources of the Republic of the Philippines. (Section 10)

Effectivity
- The Act shall take effect upon its approval. (Section 11)