Requesting Entity: Philippine Postal Savings Bank, Inc. (PostalBank)
Issues Concern: Submission of Certificate of Hold Out Deposit
Whether a Certificate of Hold Out Deposit may be submitted as part of the financial eligibility requirements of a prospective bidder in lieu of Net Financial Contracting Capacity (NFCC) computation or a Credit Line Commitment (CLC).
[U]nder the IRR Part A, a Cash Deposit Certificate (CDC) in an amount of at least equal to ten percent (10%) of the ABC may be submitted as an alternative to NFCC computation and CLC.
[U]nder the 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.