Napocor seeks stricter rules on supplier deals

MANILA, Philippines – The National Power Corp. (Napocor) plans to impose stricter rules on the bidding of suppliers contracts, a top company official said.

Napocor president Froilan Tampinco said they are preparing to submit their recommendation to the Department of Energy (DOE) on how to address the issue of delinquent suppliers of the company.

“We’re actually ready with the report. But before we come out with it, we have to report to (Energy) Secretary Angelo Reyes,” Tampinco said.

Tampinco said deploying stricter rules will be in compliance with Reyes’ earlier order on government suppliers.

“We will make stricter rules. For the bidders who have outstanding obligations they will not be allowed to bid outright. In the past we have been lax on that, and the Napocor board has recognized the fact that we have to be stricter. Overall, we also looked into the whole process itself to make it more efficient,” he said.

The Napocor chief said they would also implement structural changes in the bidding procedures.

“We tried to realign certain groups –structurally and process-wise, in order to have a more efficient framework,” he said.

“We will give whatever findings we have and get board approval for the implementation of the reforms that we would like to be instituted. We would like to present it to the board this month or next month,” he said.

Reyes earlier sent a directive to Napocor for the review of all existing contracts and a thorough examination of future contracts of the power firm.

The order was triggered by an award to an oil firm which turned out to have unpaid/undelivered accounts to Napocor.

“Secretary Reyes wants Napocor to take a look at all the existing contracts and review everything, including all the potential contracts,” the Napocor chief said.

Napocor was supposed to come up with its recommendation on these contracts one month after Reyes released the order or by March but the power generation firm said the review required more time.

The review will still be consistent with the Procurement Law of the National Government.

Reyes said the DOE wants the “blacklisting” of firms and contractors that have unpaid accounts with the government corporation.

Specifically, Reyes ordered a revamp of Napocor’s Bids and Awards Committee and all other groups attached to it.