2009-12-29

NPM 066-2009

Requesting Entity: Social Security System

Issues Concern: Clarification on the extent of participation, ownership, and interest of each of the Filipino partners in the joint venture.

 

Details

Clarification on the extent of participation, ownership, and interest of each of the Filipino partners in the joint venture.

Eligibility Requirements

For purposes of determining the eligibility of a valid joint venture for the procurement of good, provided in Section 23.1 (b) of the IRR of RA 9184 are Class "B" Document/s.

[I]n addition to the JVA or notarized statements as described [in Section 23.1(b)], each partner or prospective partner to the JV, local or otherwise, must submit its Class "A" legal documents, i.e., registration certificate from the Securities and Exchange Commission, Department of Trade and Industry for sole proprietorship or Cooperative Development Authority for cooperatives, or any proof of such registration as stated in the bidding documents, and, its mayor's permit issued by the city or municipality from its principal place of business. In case the JV partner is a foreign bidder, the foregoing may be substituted by the appropriate equivalent documents, if any, issued by the country of the foreign bidder concerned. A translation of the documents in English certified by the appropriate embassy or consulate in the Philippines must accompany the eligibility requirements under Class "A" and "B" documents if they are in other foreign language. Correspondingly, submission by any one of the partners or prospective partners of its Class "A" technical and financial documents shall be sufficient for the purpose.

Eligibility Criteria

As a general rule, the nationality requirement of a JV shall be governed by Section 23.5.1.1 (e).
Hence, for purposes of eligibility to participate in the bidding for the procurement of goods, Filipino ownership in the JB must be at least equivalent to sixty percent (60%). Corrollarily, therefore, it can be said that regardless of the extent of participation of each of the Filipino partners to a JV, the paramount consideration is for said JV to be at least 60% Filipino-owned, provided, that, each of the partners complies with the required eligibility documents.
Finally, it bears stressing that the participating entities entering into a JVA, are to be treated as a single bidder and, will be held jointly and severally responsible or liable for the obligations of said JV.