NPM 006-2004

Requesting Entity: National Transmission Corporation (TransCo)

Issues Concern: Request for Clarification on the Procurement of Remote Terminal Units (RTUs) for Mindanao under World Bank Guidelines



Whether or not the TransCo can proceed with the award of contract procured under the World Bank Guidelines with local funds to be utilized as funding for the implementation of the contract.

We agree with TransCo Managementís position that local funds cannot be used to finance contracts procured using the guidelines other than those that are prescribed by R.A. 9184 and its IRR-A. We are in full accord with TransCo Managementís recommendation to cancel the award of the contract and to conduct new bidding.

On account of the cancellation of the funding by the World Bank for the supply and delivery of RTUs for Mindanao, the procurement proceedings under the World Bank guidelines should be considered null and void due to this supervening event. Since it is now the intention of TransCo to fund the project from local sources, the procurement of RTUs for Mindanao should be undertaken under R.A. 9184 and its IRR-A from procurement planning up to contract implementation and termination. This is in consonance with express provision of IRR-A of R.A. 9184 and the governing principle on government procurement, which is a streamlined procurement process that uniformly applies to all government procurement.