July 12, 2012, InterAksyon
President Benigno Aquino III has signed Executive Order 78 mandating the inclusion of provisions on the use of alternative dispute mechanisms in all contracts involving Private-Public Partnership projects, build-operate-transfer projects, and joint venture agreements.
EO 78 will cover contracts entered into by the national government and local government units with private entities.
Aquino said that under Republic Act No. 876, parties to any contract may agree to settle by arbitration any arising controversy.
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 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,” the order read.
“There is a need to provide a more inviting climate for private investments by making the resolution of disputes arising out of a contract less expensive, tedious, complex and time-consuming, especially for large-scale, capital-intensive infrastructure and development contracts.”
The National Economic Development Authority is the government agency tasked to issue the implementing rules and regulations of Aquino’s order.
The Department of Justice, through the Office of the Alternative Dispute Resolution, NEDA through the PPP Center, and the government media shall conduct massive information campaign on this policy directive, the President said.
