2005-02-16

NPM 013-2005

Requesting Entity: National Transmission Corporation

Issues Concern: Payment in foreign currency

 

Details

Clarification whether National Transmission Corporation (TransCo) can pay in foreign currency those foreign entities allowed under GPPB Resolution No 02-2004 to participate in public bidding.

The issue was first considered by this office in GPPB-TSO letter dated 09 December 2004, in response to TransCo’s letter-query putting forth similar question on the propriety and legality of paying foreign bidders in foreign currency. Therein, we have invoked and categorically stated the prescription of the Implementing Rules and Regulations Part A (IRR-A) of Republic Act No. 9184 (R.A. 9184) that procurement contracts shall be denominated and payable in Philippine currency. We have likewise opined that, contrary to the position of TransCo, GPPB Resolution 02-2004 is not diametrically opposed to Section 61.1 of IRR-A.

x x x x

During the 1st GPPB Meeting held on January 24, 2005, the Members of the Board unanimously confirmed the prescription embodied in Section 61.1 of the IRR-A and agreed that prospective foreign bidders should consider foreign exchange fluctuations when participating in bidding for government projects, thus, incorporating allowances for such fluctuations in their bid prices. This resolution was made in response to the Inter-Agency Technical Working Group (IATWG) of the GPPB’s proposal for revisions to Section 61. 1 of the IRR-A. In fine, the GPPB sustains the wisdom behind the prescription in the said provision.