Revised AFP Modernization Act

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Republic Act 10349 or the Revised Armed Forces of the Philippines (AFP) Modernization Act is an act that amends RA 7898 or the AFP Modernization Act. It was signed into law by President Benigno Simeon Aquino III on 11 December 2012.

The said act extends the modernization program for another 15 years that will help boost the AFP's capability upgrade program to shift from internal to external defense.

For the first five years of its implementation, the law allocates a budget of PHP 75 billion to utilize and implement the program in accordance with the Defense System of Management. The budget however is subject to the capacity of the Department of National Defense (DND).

The said law exempts major defense purchases such as aircraft, vessels, tanks, armored vehicles, communications equipment and high-powered firearms from public bidding. 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 shall also be exempted from value-added tax (VAT) and customs duties.

It also institutionalizes the defense system of management that incorporates collegial and collaborative planning and decision-making process of senior defense and military leaders. Additional funding from public-private partnerships as well as multi-year contracts entered into by the DND shall also be allowed.


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