The National Electrification Administration (NEA) has directed the Region I, Cordillera Administrative Region (CAR) Electric Cooperatives (ECs) and the Sorsogon I Electric Cooperative, Inc. (SORECO I) (“Aggregation”) to report and explain the highly irregular process undertaken by it regarding the Competitive Selection Process (CSP) for the purchase of a aggregated power requirement of the participating ECs totaling to 130MW.

During a consultative meeting between NEA and the Aggregation last February 9, 2023, It was discovered that the Aggregation’s Joint Third Party Bids and Awards Committee earlier declared two (2) failed biddings on June 14, 2022 and December 9, 2022 when the bidders were found short of the requirements as prescribed under the pertinent Terms of Reference (TOR).

This paved the way for them to resort to direct negotiation as sanctioned under the DOE Department Circular No. DC 2021-09-0030, amending DOE Department Circular No. DC2018-02-000 ("Adopting and Prescribing the Policy for the Competitive Selection Process in the Procurement by the Distribution Utilities of Power Supply Agreement for the Captive Market,"), and NEA Memorandum No. 2019-007 (dated January 28, 2019, Adoption of the Implementing Rules and Regulations of the Policy in the Conduct of Competitive Selection Process of the Electric Cooperative’s Power Supply Agreement).

However, despite the successive failures of the participating bidders in the conducted CSPs to comply with the Project’s specifications, the Aggregation still limited negotiations with them. When pressed by the Administrator as to why the Aggregation still chose to negotiate with the CSPs participating bidders despite their apparent failure to comply with the Project’s TOR, it was further discovered that the Aggregation had in fact already issued a Notice of Award for the implementation of the Project, despite failing to inform NEA of the development.

These developments prompted Administrator Almeda to order that the Aggregation’s officers to be made to show cause why they should not be found administratively liable for having violated the pertinent laws, rules and regulations on the proper conduct and transparency for the procurement and awarding of the Project.

The Administrator likewise stressed that, should ground exist, NEA shall refer the matter to other pertinent agencies for further investigation. The Administrator stressed that fairness and transparency in the selection process for the benefit and protection of the member consumers should prevail.

The Aggregation is composed of ECs namely Ilocos Norte Electric Cooperative, Inc. (INEC), Ilocos Sur Electric Cooperative, Inc. (ISECO), La Union Electric Cooperative, Inc. (LUELCO), Pangasinan I Electric Cooperative (PANELCO I), Benguet Electric Cooperative (BENECO), Kalinga-Apayao Electric Cooperative, Inc. (KAELCO), Mountain Province Electric Cooperative, Inc. (MOPRECO) and Sorsogon I Electric Cooperative, Inc. (SORECO I). They intend to procure through a joint CSP covering their short-term (2022-2025) power requirements in their respective franchise areas. ###