2007-07-30

NPM 027-2007

Requesting Entity: Metro Iloilo Water District

Issues Concern: Cash Deposit Certificate

 

Details

Whether a cash deposit certificate issued by a licensed bank must certify a hold-out on cash deposits at least equal to ten percent (10%) of the ABC, which shall be specific to the contract to be bid.

If the bidder opts to submit a cash deposit certificate, said certificate must comply with the following elements:

(a) It must contain a clear commitment to hold out a specific amount of cash;

(b) The amount of cash being held out must not be lower than that set by the procuring entity in the bidding documents, which is at least equal to ten percent (10%) of the ABC;

(c) It must be specific to the contract to be bid;

(d) The commitment must be issued by a licensed bank. (NPM No. 15-2006 dated 07 November 2006)