MANILA – President Benigno Aquino III signed into law yesterday the revised Armed Forces of the Philippines Modernization Act, that extends the program for another 15 years.

The President said the new law 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. It has a budget of P75 billion for the first five years of implementation subject to the capacity of the Department of National Defense to use and implement the program in accordance with the Defense System of Management.

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 and Customs duties, the sale and importation of weapons, equipment and ammunition to the AFP, that are directly and exclusively used for its projects, undertakings, activities and programs.

RA 10349 also institutionalizes the defense system of management, that 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.*PNA

back to top