Requesting Entity: Tarlac City Water District
Issues Concern: Cash Deposit Certificate
Whether a Cash Deposit Certificate (CDC) may be submitted as part of the financial eligibility documents of a prospective bidder in lieu of Net Financial Contracting Capacity (NFCC) computation or a Credit Line Commitment (CLC).
Prior to the amendment of the IRR Part A of Republic Act (RA) No. 9184, a CDC in an amount at least equal to ten percent (10%) of the Approved Budget for the Contract (ABC) may be submitted as an alternative to NFCC computation or a CLC. However, with the amendment of the IRR of RA 9184, CDC is no longer a recognized financial eligibility document.
Section 23.1 of the revised IRR of RA 9184 x xx expressly allows the bidder to submit either a computation of its NFCC or a CLC.
[T]he present IRR, the only options available to bidders, insofar as compliance with the financial eligibility requirement is concerned, are NFCC computation and CLC. CDC is no longer a recognized document for purposes of eligibility requirement and, thus, cannot substitute for either the NFCC computation or CLC.