BSP spends P5 billion for initial batch of polymer bills – COA

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) spent P4.98 billion for the initial batch of polymer banknotes recently launched for circulation, a report by the Commission on Audit (COA) showed.

Based on the BSP’s financial statement for 2023 submitted to COA, the central bank’s Monetary Board (MB) had approved the award of five contracts for the supply of materials and the actual production of polymer bills in P1,000, P500, P100 and P50 denominations, under the so-called “New Generation Currency Banknotes” project.

The COA incorporated the financial statement in its 2023 annual audit report on the BSP.

The breakdown showed that one contract worth €4.432 million, equivalent to P269.028 million, was awarded to French company Surys, for the supply and delivery of 3,040 rolls of “optically variable device patch” to be used for the production of the P1,000 polymer bills.

Germany-based Papierfabrik Louisenthal GmbH, a leading manufacturer of banknotes and security-protected papers, meanwhile, bagged the biggest contracts totaling P3.718 billion.

One of the two contracts cornered by Papierfabrik amounted to €18.542 million (P1.113 billion) for the supply and delivery of 51,020 reams of banknote paper in P50 denomination, while the other amounted to €42.431 million (P2.605 billion) for the supply and delivery of 75,200 reams of banknote paper in P100 denomination.

Another German company, Giesecke+Devrient Currency Technology GmbH, meanwhile, was awarded a contract worth €11.751 million (P727.475 million) for the supply and delivery of 200,000 bundles of “finished banknotes with enhanced security features and tactile marks” in P500 denomination.

Lastly, a contract amounting to €4.497 million (P269.524 million) was awarded to British company De La Rue International Limited for the supply and delivery of 150,000 bundles of enhanced finished banknotes in P50 denomination.

The financial report stated that all the contracts were based on the BSP-approved “technical specifications and terms of reference.” All the contracts were also exclusive of value-added tax and other applicable taxes and charges.

The audit report showed that the BSP also awarded a contract amounting to €16.196 million (P973.643 million) to Swiss printing company Koenig & Bauer Banknote Solutions SA for the “Enhanced New Generation Currency Equipment,” “inclusive of technical and maintenance support, training, supply and delivery of RM (raw materials), consumables, and wear and tear spare parts for 12 months as per BSP terms and conditions, terms of reference and technical specifications.”

The report, however, did not state whether the equipment would be for future use in connection with the BSP’s plan to eventually print the polymer banknotes locally, or whether it was contracted for utilization abroad in connection with the outsourcing of the printing of the first batch of the polymer bills.

Last week, BSP Governor Eli Remolona Jr. presented the new polymer P500, P100 and P50 denominations to President Marcos at Malacañang.

The new bills use polymer materials instead of traditional paper, as the BSP earlier stated that this type of bank note was more hygienic, more resistant to wear and tear and has security features designed to prevent counterfeiting.

The new polymer banknotes also have accessibility features, such as the highly embossed tactile dots on the top edge to help the elderly and persons with vision impairment.

The new banknotes are already available in limited quantities in the Greater Manila area. The BSP said the banknotes would be circulated nationwide in January.