NPM 082-2007

Requesting Entity: PNOC Alternative Fuel Corporation

Issues Concern: Procurement of Jatropha Seeds and Seedlings



1. Whether the procurement of Jatropha seeds and seedlings is within the coverage of R.A. 9184 and its IRR-A.

Jatropha seeds and seedlings are considered as "goods" as defined under Section 5 (k) of the IRR-A. Therefore, the procurement of the said items which are needed by PAFC is clearly within the scope and application of R.A. 9184 and its IRR-A.

2. Whether consulting services may be procured through direct contracting.

Section 50 of the IRR-A expressly provides that direct contracting or single source procurement is a method of procurement of goods. Thus, consulting services cannot be procured through direct contracting.

3. Whether there are exceptions on the 60-40% requirement for foreign corporations who would be doing business in the Philippines through joint venture contracts relative to the establishment of a plantation and refinery with the PAFC utilizing the Jatropha seeds/seedlings.

[T]he National Economic and Development Authority is currently drafting the guidelines for joint venture arrangements.