July 12, 2012 Manila Standard Today
President Benigno Aquino III has ordered the inclusion of provisions on the use of alternative dispute mechanism in all contracts involving Private-Public Partnership projects, build-operate and transfer projects and joint venture agreements.
Executive Order No. 78 covers contracts entered into by the national government and local government units with private entities.
There is a need to provide a more inviting climate for private investments by making the resolution of disputes less expensive, tedious, and time-consuming, especially for large-scale, capital-intensive infrastructure and development contracts, Mr. Aquino said.
“The state shall encourage and actively promote the use of ADR mechanisms through conciliation and negotiation, mediation and arbitration as an efficient tool and an alternative procedure in achieving speedy and impartial justice and de-clogging court dockets,” he said.
He said the Supreme Court, in a decision in 2001, authorized the use of court-annexed mediation as a form of alternative dispute resolution.
The President tasked the National Economic Development Authority as the implementing agency that would issue the implementing rules and regulations of EO 78.
