Requesting Entity: National Power Corporation

Issues Concern: Exemption of the Coal Procurement of the National Power Corporation from the Filipino Ownership/ Equity Requirement Provided under Executive Order No. 40, Series of 2001, its Implementing Rules and Regulations, and Republic Act No. 5183


Exemption from the Applicability of the 60/40 Filipino Ownership/Equity Requirement:

In fine, considering that the exceptions to the Filipino ownership/equity requirement found in Section 1 of R.A. 5183 and Section 21 of R.A. 9162, respectively, are meant to address different contingencies in Government procurement, the former addressing the principle of reciprocity among States, and the latter addressing availability of local goods, we are of the opinion that the said provisions may be applied alternatively, depending on the contingency sought to be addressed. As such, we confirm that the exception provided in R.A. 9162 may be used by NPC, thereby dispensing with the reciprocity requirement under R.A. 5183.