NPM 071-2004

Requesting Entity: National Transmission Corporation

Issues Concern: Procurement of Equipments under Section 23.11.1 of the Implementing Rules and Regulations Part A (IRR-A) of Republic Act No. 9184 (R.A. 9184)



Whether or not the National Transmission Corporation (TransCo) may invite foreign entities to participate in the procurement of its needed equipments under Section 23.11.1 of the IRR-A of R.A. 9184.

It must be noted that aforequoted provision (Sec. 23.11.1, IRR-A) is not a self-executing one, as it needs the prescribed standards that will provide the necessary guiding principles to carry this provision into effect. Hence, with respect to the issue of whether or not foreign entities may be allowed to participate in the procurement of the needed equipments for the upgrading of your various substations and grid system, we are of the opinion that TransCo cannot rely upon the aforequoted provision in Section 23.11.1 of the IRR-A of R.A. 9184, considering that said proviso cannot be put into operation in the absence of implementing guidelines that would implement such.

The GPPB, however, is conscious of the fact that the consequent dormancy of said provision in Section 23.11.1 due to absence of the implementing guidelines would be detrimental to public service as this would unduly hamper the operations of government agencies, particularly those which are confronted with the situation of unavailability of necessary goods in the domestic market. Thus, to address this predicament of government agencies, we would like to inform you that the GPPB, during its 1st Meeting on January 29, 2004, resolved to issue the provisional guidelines for Section 23.11.1 of the IRR-A of R.A. 9184 for the participation of foreign suppliers, manufacturers and distributors in Government procurement. Accordingly, a resolution was issued prescribing the interim standards, parameters and conditions that should be observed in the application of said provision in a situation where the goods to be procured by government agencies are not available from local sources. Said resolution is now routed for signature to the members of the GPPB and would soon be promulgated.