NEA OKs negotiated equipment sale in Odette-hit areas

Danessa Rivera – The Philippine Star

January 4, 2022 | 12:00am


MANILA, Philippines — State-run National Electrification Administration (NEA) has allowed electric cooperatives (EC) affected by Typhoon Odette to secure distribution equipment via negotiated procurement to speed up restoration works.

In a memorandum, the NEA said it recognizes the importance of immediately restoring electricity service up to the household level of ECs affected by the recent typhoon.

“In order to fast-track the rehabilitation and reconstruction of damaged distribution lines and facilities, ECs may resort to the conduct of negotiated procurement,” it said.

The negotiated procurement should be in accordance with the Revised Procurement Guidelines and Simplified Bidding Procedures for ECs and with the Government Procurement Reform Act or Republic Act 9184.

ECs may engage in alternative modes of procurement such as negotiated procurement during emergency cases caused by man-made or natural calamities, NEA said.

In this case, this only covers the rehabilitation or restoration of the damaged electric distribution system affected by Typhoon Odette, including substations, poles, transformers, conductors, hardware, service drop wires and meters.

“The procurement of equipment and electrical materials must strictly adhere to the provisions of RA 10531 (National Electrification Administration Reform Act of 2013) and its implementing rules and regulations, particularly…for procurements funded by EC’s internally generated fund, loan proceeds, or reinvestment fund for sustainable capital expenditure (RFSC),” the NEA said.

The RFSC is envisioned to fund the amortization of debt service of the ECs’ indebtedness associated with the expansion, rehabilitation or upgrading of the existing electric power system of the ECs in accordance with their ERC-approved capex plan.

“On the other hand, if procurement is funded by subsidy grants from the government, provision of RA 9184 on emergency procurement should prevail,” the state-run firm said.

A total of 74 ECs were affected by Typhoon Odette.

Last week, the NEA reported that the estimated damage cost by the typhoon reached P2.04 billion as reported by 30 ECs.

So far, the agency said 75.13 percent of the 937 municipalities affected now have restored power. In terms of household connections, power has been restored to 55.73 percent of 4.16 million households.

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