NPM 018-2009

Requesting Entity: Environmental Management Bureau Department of Environment and Natural Resources

Issues Concern: Public/Competitive Bidding for GOCC Requirements



Whether or not the National Power Corporation, the National Transmission Corporation, and the Power Sector Assets and Liabilities Corporation would have to undergo the usual bidding procedures for the engagement of the services of Philippine National Oil Company Alternative Fuel Corporation.

Based on the foregoing (Sec. 53[e], Rule XVI, IRR-A), NPC, TRANSCO and PSALM cannot directly engage the services of PNOC-AFC through agency-to-agency arrangement since the latter is a GOCC incorporated under the Corporation Code.

Nevertheless, if it could be established, pursuant to the international law principle of pacta sunt servanda embodied in Section 4 of R.A. 9184, that the agreement between DENR-EMB, UNIDO and GEF partakes of the nature of a treaty or executive or international agreement, and, the procedure for the procurement of the services of the operator of the destruction facility is specifically provided therein, then such procurement procedure would have to be observed by DENR, NPC, TRANSCO and PSALM in engaging the services of PNOC-AFC, albeit subject to mutually agreeable terms and conditions.