MEMORANDUM CIRCULAR NO. 51 REQUESTS FOR AUTHORITY TO NEGOTIATE AND/OR SIGN INTERNATIONAL AGREEMENTS, FOREIGN LOAN AGREEMENTS, FOREIGN GRANT AGREEMENTS, AND GUARANTEES May 27, 2024

WHEREAS,Section 17, Article VII of the 1987 Constitution provides that the President shall have control of all executive departments;

WHEREAS,Section 20, Article VII of the 1987 Constitution states that the President may contract or guarantee foreign loans on behalf of the Republic of the Philippines with the prior concurrence of the Monetary Board, and subject to such limitations as may be provided by law;

WHEREAS,the President, as the sole organ of the country's foreign relations and the constitutionally assigned chief architect of the country's foreign policy, is vested with the exclusive power to conduct and manage the country's interface with other states and governments;

WHEREAS,Section 2, Chapter 1, Title 1, Book IV of Executive Order (EO) No. 292 or the "Administrative Code of 1987," mandates the Department of Foreign Affairs (DFA) to be the lead agency that shall advise and assist the President in planning, organizing, directing, coordinating and evaluating the total national effort in the field of foreign relations;

WHEREAS,under Section 3 (5), Chapter 1, Title II, Book IV of EO No. 292, the Department of Finance (DOF) is directed to undertake and supervise activities related to the negotiation, servicing, and restructuring of domestic and foreign debt incurred or guaranteed by the government and its instrumentalities;

WHEREAS,Section 51, Chapter 12, Book I of EO No. 292 provided that contracts in behalf of the Republic of the Philippines shall be executed by the President, unless authority therefor is expressly vested by law or by him in any other public officer;

WHEREAS,the General Appropriations Act requires departments, bureaus, offices and instrumentalities of the national Government, including Constitutional Offices enjoying fiscal autonomy, state universities and colleges (SUCs) and government-owned or -controlled corporations (GOCCs), except those engaged in banking, to secure the approval of the President, the concurrence of the Monetary Board, the issuance of a Forward Obligation Authority (FOA) by the Department of Budget and Management (DBM) for project loans, or the issuance of a Development Budget Coordination Committee (DBCC) resolution covering the full amount in the case of program loans, and an equivalent document for those undertaken by GOCCs, as well as other conditions provided by pertinent laws, prior to the execution of foreign or domestic loan agreements;

WHEREAS,the General Appropriations Act requires prior clearance and approval by the President, or his authorized representative, based on the recommendation of the Secretary of Finance, prior to the acceptance of grants, in cash or in kind, from governments of foreign countries, their agencies and instrumentalities or multilateral institutions or organizations;

WHEREAS,EO No. 459 (s. 1997) establishes the Guidelines in the Negotiation and Ratification of International Agreements;

WHEREAS,Memorandum Circular (MC) No. 16 (s. 2017) directs departments, agencies, instrumentalities, bureaus, and offices of the government, including GOCCs and DUCs, to secure authorization from the Office of the President (OP) prior to the negotiation, and/or signing of international agreements, and agreements covering borrowings, guarantees, and foreign grants;

WHEREAS,MC No. 72 (s. 2019) as reiterated by MC No. 02, (s. 2022) and MC No. 21 (s. 2023), requires the conduct of complete staff work (CSW) for all requests for Presidential issuances, authorizations and/or approvals, to be signed by the President or the Executive Secretary "by authority of the President"; and

WHEREAS,it is imperative to clarify and streamline the existing processes with regard to requests for authority to negotiate and/or sign international agreements, as well as foreign loan agreements, foreign grant agreements, and guarantees, and strictly enforce the same, with the end in view of ensuring the efficient and effective delivery of crucial government programs and projects;

NOW, THEREFORE, I, FERDINAND R. MARCOS, JR.,President of the Philippines, by virtue of the powers vested in me by the Constitution and exiting laws, do hereby order:

Section 1. Authority to Negotiate and/or Sign.Authorization from the President must be secured prior to the negotiation and/or signing of international agreements or foreign loan agreements, foreign grant agreements, and guarantees.

Section 2. Endorsing Agencies.All heads of departments, agencies, instrumentalities, bureaus, and offices of the government, including GOCCs ans SUCs, are hereby directed to coordinate closely with the DFA, as endorsing agency, prior to the negotiation and/or signing of international agreements.

For foreign loan agreements, foreign grant agreements, and guarantees, all heads of departments, agencies, instrumentalities, bureaus, and offices of the government, including GOCCs and SUCs, shall coordinate closely with the DOF, as endorsing agency, prior to the negotiation and/or signing of the said agreements.

The DFA or the DOF, as the case may be, shall endorse the request for Special Authority to the OP, unless it determines that the nature or scope of the agreement does not require prior authority from the OP.

Section 3. Requirements for International Agreements.The DFA shall evaluate the request for authority to negotiate and/or sign international agreements to ensure timeliness of its submission, and completeness of all its supporting documents. If the DFA finds merit in the request, it shall endorse the same to the President, accompanied by the following documents: (i) letter of the proponent agency; and (ii) copy of the draft agreement.

While the submission of certificates of concurrence is not mandatory for the evaluation of a request for Special Authority, the DFA may, upon its determination require any relevant agency to provide its concurrence to the international agreement.

Section 4. Requirements for Foreign Loan Agreements, Foreign Grant Agreements, and Guarantees.The DOF shall evaluate the request for authority to negotiate and/or sign foreign loan agreements, foreign grant agreements and guarantees to ensure timeliness of its submission, and completeness of all its supporting documents. If the DOF finds merit in the request for Special Authority to negotiate and/or sign foreign loan agreements, it shall endorse the same to the President, accompanied by the following documents: