MALACAÑAN PALACE
MANILABY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER No. 78
MANDATING THE INCLUSION OF PROVISIONS ON THE USE OF ALTERNATIVE DISPUTE RESOLUTION MECHANISMS IN ALL CONTRACTS INVOLVING PUBLIC-PRIVATE PARTNERSHIP PROJECTS, BUILD-OPERATE AND TRANSFER PROJECTS, JOINT VENTURE AGREEMENTS BETWEEN THE GOVERNMENT AND PRIVATE ENTITIES AND THOSE ENTERED INTO BY LOCAL GOVERNMENT UNITS
WHEREAS, as early as 1953, Republic Act (RA) No. 876 otherwise known as “The Arbitration Law,” already allowed persons or parties to submit to arbitration, “any controversy existing between them at the time of the submission and which may be the subject of an action, or the parties to any contract may in such contract agree to settle by arbitration a controversy thereafter arising between them;”
WHEREAS, the Supreme Court (SC) in 2001, has authorized the use of court-annexed mediation as a form of Alternative Dispute Resolution (ADR) in specific cases. Furthermore, other forms of ADR have been incorporated into the Philippine judicial system, such as: the use of pre-trial; discovery modes of procedure; the barangay certification prerequisite to filing...
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Executive Orders
Mandating The Inclusion Of Provisions On The Use Of Alternative Dispute Resolution Mechanisms In All Contracts Involving Public-Private Partnership Projects, Build-Operate And Transfer Projects, Joint Venture Agreements Between The Government And Private Entities And Those Entered Into By Local Government Units
Executive Order No. 78
Summary of Executive Order No. 78
Mandating the Inclusion of ADR Provisions in Contracts
• All contracts involving PPP projects, BOT projects, and JVAs between the government and private entities shall include provisions on the use of ADR mechanisms, at the option and upon agreement of the parties. (Section 1)
• LGUs are encouraged to stipulate the use of ADR mechanisms in similar contracts, in accordance with their own JV rules, guidelines or procedures. (Section 1)
• When parties agree to submit the case for ADR, the use of either domestic or international ADR mechanisms shall be highly encouraged, giving the parties complete freedom to choose the venue, forum, rules or procedures. (Section 1)
Implementing Agency and Rules
• NEDA, in consultation with appropriate agencies, is directed to issue the Implementing Rules and Regulations (IRR) to implement this EO, which shall be binding on all government agencies and shall guide LGUs. (Section 2)
Information Campaign
• The DOJ through the OADR, NEDA through the PPP Center, and government media instrumentalities shall conduct a massive information campaign on this policy directive and the different ADR mechanisms. (Section 3)
• The initial funding requirements for the information campaign shall be shared by and charged against the current appropriations of the PPP Center, NEDA, OADR, and other concerned agencies. Funding for succeeding years shall be incorporated in their respective regular appropriations. (Section 3)
Repealing and Separability Clauses
• All issuances, orders, rules, and regulations or parts thereof which are inconsistent with the provisions of this EO are hereby revoked and/or modified accordingly. (Section 4)
• If any provision of this EO is declared invalid or unconstitutional, the other provisions unaffected shall remain valid and subsisting. (Section 5)
Effectivity Clause
• This EO shall take effect immediately upon its publication in a newspaper of general circulation. (Section 6)
Mandating the Inclusion of ADR Provisions in Contracts
• All contracts involving PPP projects, BOT projects, and JVAs between the government and private entities shall include provisions on the use of ADR mechanisms, at the option and upon agreement of the parties. (Section 1)
• LGUs are encouraged to stipulate the use of ADR mechanisms in similar contracts, in accordance with their own JV rules, guidelines or procedures. (Section 1)
• When parties agree to submit the case for ADR, the use of either domestic or international ADR mechanisms shall be highly encouraged, giving the parties complete freedom to choose the venue, forum, rules or procedures. (Section 1)
Implementing Agency and Rules
• NEDA, in consultation with appropriate agencies, is directed to issue the Implementing Rules and Regulations (IRR) to implement this EO, which shall be binding on all government agencies and shall guide LGUs. (Section 2)
Information Campaign
• The DOJ through the OADR, NEDA through the PPP Center, and government media instrumentalities shall conduct a massive information campaign on this policy directive and the different ADR mechanisms. (Section 3)
• The initial funding requirements for the information campaign shall be shared by and charged against the current appropriations of the PPP Center, NEDA, OADR, and other concerned agencies. Funding for succeeding years shall be incorporated in their respective regular appropriations. (Section 3)
Repealing and Separability Clauses
• All issuances, orders, rules, and regulations or parts thereof which are inconsistent with the provisions of this EO are hereby revoked and/or modified accordingly. (Section 4)
• If any provision of this EO is declared invalid or unconstitutional, the other provisions unaffected shall remain valid and subsisting. (Section 5)
Effectivity Clause
• This EO shall take effect immediately upon its publication in a newspaper of general circulation. (Section 6)