Aquino signs revised AFP Modernization Act

MANILA, Philippines - President Benigno Aquino III on Tuesday signed the revised Armed Forces of the Philippines (AFP) modernization Act.

The President said that the new law, which extends the military modernization program for another 15 years, will "boost the AFP's capability upgrade program as it shifts from internal to external defense capability."

Republic Act 10349 amends RA 7898 or the AFP Modernization Act.

The law allocates a budget of P75 billion for the first five years of implementation of the modernization program subject to the capacity of the Department of National Defense (DND) to utilize and implement the program in accordance with the Defense System of Management (DSOM).

The new law exempts certain major defense purchases such as aircraft, vessels, tanks, armored vehicles, communications equipment and high-powered firearms from public bidding.

It also exempts from value-added tax (VAT) and customs duties the sale and importation of weapons, equipment and ammunition to the AFP which are directly and exclusively used for its projects, undertakings, activities and programs.

RA 10349 also institutionalizes the defense system of management, which incorporates a collegial and collaborative planning and decision-making process by senior defense and military leaders.

It also allows additional funding from public-private partnerships entered into by the DND as well as multi-year contracts.