PRESCRIBING THE PROCEDURE WHEREBY THE REPUBLIC OF THE PHILIPPINES MAY WAIVE SOVEREIGN IMMUNITY FROM SUIT AND OTHER LEGAL PROCEEDINGS WITH RESPECT TO ITSELF OR ITS PROPERTY IN CO…

WHEREAS, in the pursuit of economic growth and development,
it has become imperative for the Republic of the Philippines to enter into
contracts or transactions with international banking, financial and other
foreign enterprises;

WHEREAS, recognizing this need, existing legislations
expressly authorize the Republic of the Philippines to contract foreign
obligations, including borrowings in foreign currency, and to guarantee foreign
obligations of corporations and other entities owned or controlled by the
Government of the Philippines;

WHEREAS, circumstances in the international market may
require that sovereign states entering into contracts or transactions make
express waivers of sovereign immunity in connection with such contracts or
transactions;

WHEREAS, it is in the national interest that a procedure be
prescribed with respect to the waiver of sovereign immunity of the Republic of
the Philippines in respect of international contracts or transactions entered
into by it;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Republic of the Philippines, by virtue of the powers vested in me by the
Constitution, do hereby order and decree:

SECTION 1. Procedure for, and Conditions of, Waiver of
Sovereign Immunity.—In instances where the law expressly authorizes the Republic
of the Philippines to contract or incur a foreign obligation, it may consent to
be sued in connection therewith. The President of the Philippines or his duly
designated representative may, in behalf of the Republic of the Philippines,
contractually agree to waive any claim to sovereign immunity from suit or legal
proceedings and from set-off, attachment or execution with respect to its
property, and to be sued in any appropriate jurisdiction in regard to such
foreign obligation.

For purposes of this decree, a foreign obligation means any direct, indirect,
or contingent obligation or liability capable of pecuniary estimation and
payable in a currency other than Philippine currency.

SEC. 2. Validity of Existing Waivers.— Nothing in
this Decree shall be construed to revoke or repeal any waiver of sovereign
immunity from suit or legal proceedings or from set-off, attachment or execution
granted under or pursuant to other provisions of law.

SEC. 3. Effectivity.—This Decree shall take effect
immediately.

Done in the City of Manila, this 16th day of January in the year of Our Lord
nineteen hundred and eighty-one.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JOAQUIN T. VENUS, JR.
		Deputy Presidential Executive Assistant

Vol. 25, Vital Documents, Presidential Decree 1980-1981