NPM 140-2004

Requesting Entity: Alphaomega Integrated Corporation

Issues Concern: Request for Clarification on Some Procurement Policies Anent National Transmission Corporationís Bid Project



1. Whether or not foreign bidders may be allowed to bid.

Foreign suppliers are allowed to participate in public bidding, albeit limited and on the condition that the requirements as set forth in GPPB Resolution 02-2004 are complied with. The same being merely an exception to the general rule, the provision allowing participation of foreign bidders must be strictly construed, so as not to defeat the policy of granting preference to domestic bidders and entities as pronounced in Commonwealth Act 138 and reiterated in the 1987 Constitution.

2. Whether or not foreign bidders may be paid in foreign currencies.

IRR-A is categorical with respect to bid currencies and currencies of payment. Thus, in Section 61.1 of the rules, all contracts shall be denominated and payable in Philippine currency, and this shall be stated in the bidding documents. Should the procuring entity receive bids denominated in foreign currency, the same shall be converted to Philippine currency based on the exchange rate prevailing on the day of the bid opening, for purposes of evaluation.

Hence, unequivocal is the rule that bids are payable in Philippine currency.