Section 3
SECTION 3. For the purpose of this Decree and any provision of law to the contrary notwithstanding, the President of the Philippines is hereby authorized in behalf of the Republic of the Philippines, to contract such loans, credits or indebtedness including supplier's credit, deferred payment arrangements upon such terms and conditions as maybe agreed upon with any local or foreign source or lender not exceeding Three hundred million United States dollars, or its equivalent in other foreign currencies at the exchange rate prevailing at the time of the contracting of the loans, credits, or indebtedness, suppliers credits and deferred payment arrangements and at terms of payment of not less than ten years and to enter into and conclude bilateral agreements involving other forms of official assistance such as grants and commodity credit arrangement or indebtedness as may be necessary with Government of foreign countries with whom the Philippines has diplomatic or trade relations or which are members of the United Nations, their agencies, instrumentalities or financial institutions or with reputable international organizations or non- governmental national or international lending institutions or firms extending supplier's credit or deferred payment arrangements: Provided, That such loan, credit or indebtedness shall be incurred only after the plans for such project have been prepared by the Department of National Defense and approved by the President of the Philippines; Provided, further, That such loans, credits or indebtedness shall be incurred only when the Commissioner of Budget has certified that for the fiscal year in question, funds are appropriated and programmed to meet the servicing of the external debt of the public sector, including the loan, credit or indebtedness proposed to be contracted, and that the counterpart peso funding requirements of the projects for which such loans, credits or indebtedness are being contracted have been programmed and shall be available as and when needed for the completion of the project; Provided, finally, That in contracting any loan, credit or indebtedness under this Act, the President of the Philippines, when necessary may agree to waive or modify the application of any law granting preferences or imposing restrictions on international public bidding.