2016-12-29

NPM No. 130-2016

Requesting Entity: Cebu Port Authority (CPA)

Issues Concern: Mode of Procurement; Joint Ventures

 

Details

Appropriate mode of procurement (Goods, Infrastructure Projects or Consulting Services) to be used for the preparation of Bidding Documents considering the uniqueness of the project

 

At the outset, we wish to clarify that in determining the classification of a procurement project, it is our considered view that it is the Procuring Entity (PE) that is in the best position to determine the correct classification of its procurement based on its identified needs, guided by the parameters and conditions in the relevant provisions of Republic Act (RA) No. 9184 and its 2016 Revised Implementing Rules and Regulations on what should be considered as goods, infrastructure project, and consulting services. We note, however, the peculiarity of the project being proposed by the CPA whereby private entities will be engaged at no cost on the part of CPA but instead, will be required to remit certain fees to the CPA.

 

[F]or the specific project subject of the request, CPA requires the bidder to provide the project requirements at no cost to CPA and to remit a fixed annual fee and percentage variable fee of the gross receipts of all transactions of services rendered to port stakeholders. In this regard, it is our considered view that if the project of CPA contemplates a Joint Venture (JV) as defined above, the rules, guidelines and procedures laid down in the Revised JV Guidelines shall be observed, and not the provisions of RA 9184 and its associated issuances.