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TA 4293: PHILIPPINES CAPACITY BUILDING FOR HOUSING MICROFINANCE FINAL REPORT

VOLUME 1: MAIN REPORT APPENDIX 27 December 2009 PAGE 29

Appendix 28

HLURB Memo Circular No. 25

TA 4293: PHILIPPINES CAPACITY BUILDING FOR HOUSING MICROFINANCE

FINAL REPORT

VOLUME 1: MAIN REPORT APPENDIX 28

December 2009 PAGE 1

Appendix 28

HLURB Memo Circular No. 25

Appendix 29

Policy Impact Assessment of the

Technical Assistance


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Appendix 29

POLICY IMPACT ASSESSMENT OF THE ADVISORY TA

Policy Objective/Strategy Actions Taken Results/Impact Performance Indicator

1. INSTITUTIONALIZING MARKET-BASED AND ACCESSIBLE HOUSING FINANCE MECHANISMS

Improve linkage of formal sector financial institutions to informal sector settlers and the economy

Improve access to credit for housing and livelihood opportunities for the urban poor

Based on a series of discussions, seminar-workshops, and inter-agency consultations funded by the TA, drafted the Housing Microfinance Loan Product and Procedures Manual for HUDCC, DBP and BSP. This manual became the basis of a BSP memorandum to all banks approving the housing microfinance product which was designed to address the housing needs of the economically active poor using best practices developed over the years for microenterprise and housing finance. The salient features of the manual and the BSP memorandum include: definition of the pro-

poor housing microfinance product in terms of purpose, eligibility, loan amount, loan value, payment and terms;

use of rights-based secure tenure instruments as collateral substitutes for house construction and house and serviced plot acquisition loans;

an appraisal and loan valuation framework for rights-based instruments such as freehold, usufruct, leasehold, and right to

Formal recognition by the Philippine banking system of housing microfinance as a pro-poor product which is similar but different from microenterprise finance.

Liberalization of collateral instruments, allowing banks to lend to the eligible poor for housing microfinance not just against freehold titles which tended to be costly but also against usufruct, long-term leases and other rights-based variants.

Adoption of a more financially sustainable guarantee system for housing microfinance through cash-flow guarantees.

More suitable risk management features to make microfinance more suited to pro-poor housing finance.

Additional incentives approved by the BSP for housing microfinance: Housing microfinance

loans considered eligible as alternative compliance to mandatory credit allocation to agrarian reform and other agricultural credit; The loans have an

assigned risk weight of 50% when not guranteed and 0% when guaranteed by the Home Guarantee Corporation; When the volume of

HUDCC Policy Paper on improving the urban poor’s access to shelter financing.

Issuance of BSP Memorandum No. M-2008-015 on the housing microfinance product to all banks on 19 March 2008.

Appraisal and loan valuation framework for rights based secure tenure arrangements as collateral substitutes issued as Annex A of BSP Memorandum No. M-2008-015.

HUDCC’s Housing Microfinance Loan Product and Procedures Manual

Under DPUCSP, six MFIs initiated housing microfinance programs and disbursed a combined total of P85 million.

Another BSP circular dated 6 January 2010 has been issued recognizing loans for housing to microfinance clients as part of a wider range of financial services to the sector.

The USAID-funded Rural Bankers Association of the Philippines Microenterprise Access to Banking Services (RBAP-MABS has subsequently launched its housing microfinance program.


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occupy and/or build assessment of the

clients’ ability to repay based on cash flow analysis and affordability

additional risk cover from the Home Guarantee Corporation cash flow guarantee program

accreditation of banks by HUDCC for DPUCSP participation with standards approved by the BSP and formalized through a Memorandum of Agreement.

loans achieved a desirable level, business transactions by larger banks such as securitization and outright purchase also considered an alternative Agri-Agra compliance.

2. SECURING GOVERNMENT-OWNED URBAN LAND FOR LOW-INCOME HOUSING

Strengthen mechanisms for land consolidation and facilitate land banking

Improve implementing rules and regulations for the practice of land proclamation in order to make it more targeted, coordinated and efficient

Facilitate the conveyance of land to LGUs and the urban poor beneficiaries

Develop mechanisms to encourage the creation of local housing boards

Assisted in finalizing the omnibus guidelines on the proclamation of land for socialized housing.

Provided technical assistance to LGUs in determining land suitable for socialized housing and qualified socialized housing beneficiaries.

Prepared primer on how to expedite the conversion of legally convertible national government or LGU-owned sites for socialized housing.

Assisted in the creation of local housing boards as part of LGU compliance with DPUCSP participation.

Reviewed and revised template used by HUDCC to help LGUs formulate and/or update their shelter plans.

Streamlined and improved process for assessing the eligibility of public land for socialized housing.

More public land identified by LGUs as suitable for socialized housing.

Dissemination of clearer policies and guidelines on the conversion of agricultural land for socialized housing.

More effective and targeted local housing policies and programs stemming from the creation of local housing boards or local housing offices

More demand-driven and resource based socialized housing programs at the local level.

HUDCC letters to NGAs and LGUs requesting compliance with Section 7 of the UDHA which directs all LGUs to conduct an inventory of all lands and improvements within their respective localities.

27,282 hectares of public land with an estimated beneficiaries of 278,580 proclaimed for socialized housing as of end of 2009.

New housing board and/or local office created (e.g. Bago City) using DPUCSP template containing pro-forma city resolution.

LGU shelter plans prepared or updated with DPUCSP assistance

3. ENACTING REFORM MEASURES TO PROVIDE SECURE FORM OF INTERIM LAND TITLE

Develop a mechanism for providing interim

Using a participatory and consultative approach

Adoption of an incremental and more

HUDCC Policy Paper on accelerating pro-poor


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land titling and registration for beneficiaries of CMP-type projects

Enable beneficiaries of CMP-type projects to use interim titles as collaterals

implemented through a series of interagency workshops funded by the TA, worked with HUDCC and concerned NGAs to determine and formulate rights-based instruments that would be valid, necessary, appropriate and recognizable for the government agencies concerned to accelerate the distribution of secure tenure to the poor using the following guidelines: The ultimate goal is

secure tenure, not necessarily a formal or final title.

The framework of existing laws, regulations, procedures and processes for orders of award, patents CELAs, CLOAs, and recognition of property rights over forest lands will be used.

It is essential to determine and differentiate when vested property rights can be conferred and when they can be recognized, registered and transferred.

The conferment of beneficiary rights must be matched with their corresponding obligations.

Worked with HUDCC and BSP for interim titles (also known as rights-based instruments) to be accepted as collateral substitutes under housing microfinance

affordable approach to secure tenure (i.e., which rights are being conferred or recognized on a progressive basis and which corresponding rights-based instruments are appropriate).

Institutionalized links and working arrangements among concerned agencies for the adoption of rights-based approaches and registration of land use rights instruments. Linkages established included rights-based instrument issuing agencies (e.g., DENR, HUDCC), and between such agencies and the Land Registration Authority.

More inclusionary housing finance which allows banks and microfinance institutions to accept rights-based instruments from the poor as collateral substitutes.

housing through rights-based secure tenure arrangements.

The Technical Working Group (TWG) comprising representatives from the various NGAs involved, after a series of workshops and meetings conducted through the TA, completed the following: Draft Executive Order

(EO) on “Accelerating the Distribution of Secure Tenure to Qualified Socialized Housing Beneficiaries Through The Use of Rights-Based Secure Tenure Instruments Under the National Shelter Program.”

Draft joint implementing guidelines for the NGAs concerned.

Standardized and harmonized rights-based instrument forms (Deed of Sale, Contract to Sell, Lease, Usufruct, and CELA).


4. ENHANCING PRIVATE SECTOR PARTICIPATION IN SOCIALIZED HOUSING SUPPLY

Generate incentives to Provided technical Increased private sector Issuance of HLURB


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encourage developers to become involved in socialized housing

Improve compliance with the mandated 20% proportion of private development in socialized housing of UDHA

Introduce more appropriate standards for low cost shelter

inputs to the preparation of HLURB guidelines and incentives to increased private sector participation in the development of land proclaimed for socialized housing.

Assisted in the review and update of BP 220 and PD 957 standards to encourage increased private sector participation in socialized housing.

Developed modalities, implementation frameworks, templates and tools for PPPs to facilitate DPUCSP financing for private sector groups pursuing socialized housing projects.

resources mobilized for pro-poor, socialized housing.

More affordable and targeted housing for the poor as a result of better compliance with the balanced housing provision of UDHA.

More streamlined and improved processes for private sector initiated and implemented socialized housing.

Greater awareness and interest among private sector developers of DPUCSP which is a pioneering attempt by HUDCC and DBP to finance PPPs in socialized housing.

Memorandum Circular No. 25 providing new guidelines on the accreditation and registration of private sector implemented housing projects in government resettlement programs as compliance with the 20% socialized housing requirement of UDHA.

HLURB Board Resolution No. 830-A, Series of 2009, amending the minimum level of development requirement in the issuance of license to sell for subdivision projects.

Approval by DBP and the ongoing implementation under DPUCSP of Pamayanang Maliksi, a PPP subproject of the Province of Cavite and R-II Builders that aims to provide 4,834 pro-poor house and lot packages.

BP= Batas Pambansa; BSP= Bangko Sentral ng Piilipinas; CELA=Certificate of Entitlement to Lot Allocation; CMP= Community Mortgage Program; DBP= Development Bank of the Philippines; DENR= Department of Environment and Natural Resources; DPUCSP= Development of Poor Urban Communities Sector Project; HLURB=Housing and Land Use Regulatory Board; HUDCC= Housing and Urban Development Coordinating Council; IRR=Implementing Rules and Regulations; LGUs= Local Government Units; NGAs= National Government Agencies; PD=Presidential Decree; PPP= Public Private Participation; UDHA=Urban Development and Housing Act of 1992; USAID=United States Agency for International Development

Appendix 30

D-PPMS: Summary of Capacity

Building Activities


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Appendix 30

D-PPMS Summary of Capacity Building Activities as of December 2009


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Appendix 31

Impact Assessment of the Capacity

Building Activities


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Appendix 31

IMPACT ASSESSMENT OF THE CAPACITY BUILDING ACTIVITIES

Activity Description Results/Impact Performance Indicator

1. ORIENTATION WORKSHOPS ON DPUCSP

Orientation workshop series on DPUCSP for DBP and HUDCC

Orientation workshop series on DPUCSP to LGUs

Orientation workshop series on DPUCSP to MFIs

Series of workshops designed to orient the participants on the DPUCSP key features, subproject development and implementation processes including subproject prioritization criteria and scoring methodology. Participants were also briefed on the latest trends and approaches in housing microfinance and how they relate to DPUCSP.

Increased familiarity of key project stakeholders with DPUCSP and acceptance of the design features driving the project which include incremental housing, the use of rights-based instruments, housing microfinance, targeted, capital subsidy versus interest rate subsidies, public-private partnerships, and community-based planning.

126 participants from DBP and 28 participants from HUDCC.

266 participants from LGUs, 36 letters of intent (LOIs) to participate in DPUCSP received from LGUs; 16 local council resolutions indicating intent to participate in DPUCSP received from LGUs

565 participants from MFIs, 11 letters of intent (LOIs) received from MFIs; 11 board resolutions signifying interest to participate in DPUCSP received from MFIs.

2. TECHNICAL WORKSHOPS

Writeshops on CAPs and FS for LGUs and Private Sector Proponents

Orientation on CAPs and FS for DBP PMO and Account Officers and HUDCC PMO and regional officers

Workshops for LGUS on Environmental Assessment

Writeshop for MFIs and DBP Account Officers on MAPs

Workshops for LGUs and Private Sector Proponents on Procurement of Civil Works

Workshop for HUDCC and DBP on the Preparation of S-curves and subproject implementation plans (SIPs)

Combination of workshops and on-the-job training to familiarize and improve the technical skills of participants using electronic templates or e-tools prepared by the Consultants in the following areas: community action

planning; feasibility study

preparation; environmental impact

assessement; microfinance

availment planning; procurement of civil

works under DPUCSP; and the

preparation of S-curves and subproject implementation plans.

Improved and upgraded technical skills of participating officers from HUDCC, DBP, LGUs and MFIs in community action planning, project preparation, environmental impact assessment, and procurement in accordance with DPUCSP policies and guidelines.

Developed and well-understood electronic templates or e-tools to facilitate DPUCSP subproject preparation and implementation.

43 workshops conducted; 438 number of participants trained

11 electronic templates developed and tested with the participants

14 CAPs developed with LGUs

14 FS developed with LGUs

5 MAPs developed with MFIs

6 environmental clearances or certificates applied for by LGUs

4 procurement/subproject implementation plans prepared with LGUs


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3. POLICY DIALOGUES AND CONFERENCES

Urban Renewal Reform Workshop Series

Urban Land Reform Conference on Accelerating Pro_Poor Housing Through Rights-Based Instruments

Technical Working Group Meetings on Rights-Based Instruments

Technical Working Group Meetings on Pro-Poor Shelter Finance Reform

Consultative policy conferences and workshops involving various government agencies concerned in enacting policy reforms to accelerate pro-housing through rights-based instruments and housing microfinance.

Formal recognition by the Philippine banking system of housing microfinance as a pro-poor product which is similar but different from microenterprise finance.

Liberalization of collateral instruments, allowing banks to lend to the eligible poor for housing microfinance not just against freehold titles which tended to be costly but also against usufruct, long-term leases and other rights-based variants.

Institutionalized links and working arrangements among concerned agencies for the adoption of rights-based approaches and registration of land use rights instruments.

More inclusionary housing finance which allows banks and microfinance institutions to accept rights-based instruments from the poor as collateral substitutes.

Issuance of BSP Memorandum No. M-2008-015 on the housing microfinance product to all banks on 19 March 2008.


Technical Working Groups (TWG) comprising representatives from the various NGAs formed to accelerate pro-poor housing through rights-based instruments, more inclusionary housing and housing microfinance, and a more streamlined land proclamation process.

Draft Executive Order (EO) on “Accelerating the Distribution of Secure Tenure to Qualified Socialized Housing Beneficiaries Through The Use of Rights-Based Secure Tenure Instruments Under the National Shelter Program.”

4. EXPOSURE VISITS AND LEARNING EXCHANGE WORKSHOPS

Study Tours on LGU Subprojects and MFI operations by DBP and HUDCC Senior Management, DBP account officers, and LGU representatives

Learning Exchange between HUDCC, DBP and the Consultants on Effective DPUCSP Marketing

Exposure trips and sites visits to pro-poor housing and MFI operations to enable participants to gain appreciation and better understanding of good practices in urban upgrading and site development and microfinance.

Greater appreciation and knowledge by DPUCSP participants of good practices in sustainable urban upgrading.

Improved understanding of tried and tested microfinance practices.

Partnership agreement between LUPAHO and ASKI

Completed FS for Passi subproject; approved DPUCSP subloan for Passi LGU

P50 million credit line for CARD under Part B approved by DBP

5. PPMS DESIGN AND INSTALLATION


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Meetings with HUDCC and DBP to develop the web-based PPMS based on the monitoring and reporting needs of DBP, HUDCC, NEDA, and ADB

Pilot test runs on the developed PPMS modules

Pilot test runs on the computerized modules

Training on the PPMS for HUDCC and DBP officers

Series of activities designed to develop and make operational the DPUCSP Project Performance Monitoring Systems

Enhanced system of monitoring the status of DPUCSP subprojects for reporting and decision-making, report preparation, and accessing of project documents electronically.

DPUCSP PPMS made operational and accessible to HUDCC, DBP, and the Consultants

Semi-annual DPUCSP reports, subproject reports, and ADB disbursement report electronically generated by DBP and HUDCC from the DPUCSP PPMS.

DPUCSP documents and reports stored electronically in the PPMS

6. e-TOOLS ORIENTATION AND WORKSHOPS

Workshop series with DBP, HUDCC, LGUs, MFIs, and Private Proponents to review and convert the existing DPUCSP templates into e-tools

Pilot test runs with HUDCC and DBP on the e-tools or editable PDF versions of the DPUCSP templates

Orientation and training of DBP, HUDCC, LGUs and MFIs on how to access and use the editable PDFs versions of the DPUCSP templates from the website and the e-Haus

Series of activities designed to accelerate DPUCSP subproject preparation through the use of user-friendly e-tools downloadable from the DPUCSP website and PPMS

Reduced transaction costs of developing and implementing DPUCSP subprojects through the use of ICT applications

Easily accessible and user friendly e-tools for pro-poor housing subproject preparation and implementation

10 e-tools developed to facilitate the subproject preparation of LGUs and uploaded to the DPUCSP website and PPMS

10 e-tools developed to facilitate the preparation of PPP subprojects

4 e-tools developed to facilitate the subproject preparation of MFIs

ADB=Asian Development Bank; ASKI=Alalay sa Kaunlaran, Inc.; BSP=Bangko Sentral ng Piilipinas; CAPs=Community Action Plans; DBP=Development Bank of the Philippines; DPUCSP=Development of Poor Urban Communities Sector Project; EO=Executive Order; FS=Feasibility Study; HUDCC=Housing and Urban Development Coordinating Council; ICT=information and communications technology; LOI=Letter of Interest; LGUs=Local Government Units; LUPAHO=Local Urban Poor Affairs and Housing Office; NEDA=National Economic Development Authority; MAPs=Microfinance Availment Plans; MFIs=Micfinance Institutions; PD=Presidential Decree; PPP=Public Private Participation; PPMS=Project Performance Monitoring System; SIPs=subproject implementation plans; TWG=Technical Working Group

Appendix 32

Draft Procurement Guidelines for

LGU Subprojects


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Appendix 32

Draft Procurement Guidelines

for LGU Subprojects


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ABBREVIATIONS AND ACRONYMS

APP - ANNUAL PROCUREMENT PLAN

BAC - BID AND AWARDS COMMITTEE

CIAP - CONSTRUCTION INDUSTRY AUTHORITY OF THE PHILIPPINES

COA - COMMISSION ON AUDIT

G-EPS - GOVERNMENT ELECTRONIC PROCUREMENT SYSTEM

GPPB - GOVERNMENT PROCUREMENT POLICY BOARD RESOLUTIONS

GPRA - GOVERNMENT PROCUREMENT REFORM ACT

IAEB - INVITATION TO APPLY FOR ELIGIBILITY AND TO BUILD

IRR - IMPLEMENTING RULES AND REGULATIONS

LCE - LOCAL CHIEF EXECUTIVE

NCA - NATIONAL CONTRACTORS ASSOCIATION

NTP - NOTICE TO PROCEED

PCAB - PHILIPPINE CONSTRUCTORS ACCREDITATION BOARD

POR - PROCUREMENT OBSERVATION REPORT

PPMP - PROJECT PROCUREMENT MANAGEMENT PLAN

TWG - TECHNICAL WORKING GROUP


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DEVELOPMENT OF POOR URBAN COMMUNITIES SECTOR PROJECT (DPUCSP)

PROCEDURES FOR THE PROCUREMENT OF CIVIL WORKS for LGUs I. THE ORGANIZATIONAL STRUCTURE

1. THE BID AND AWARD COMMITTEE (BAC)

1.1 Composition of the BAC

Shall consist of at least 5 members and shall not exceed 7 members;

The Local Chief Executive LCE of the Procuring Entity shall designate the members who should occupy plantilla positions;

All members designated by LCE are regular members except end- user member who are considered provisional member;

Officials from regular offices under the Office of the Mayor may be designated as members of the BAC;

Offices that may be represented in the BAC: i. Office of the City/Municipal Administrator; ii. Budget Office; iii. Legal Office; and iv. General Services Office

1.2 BAC Policies

The BAC members shall elect from among themselves the Chairman and the Vice Chairman;

The BAC members shall be designated for a term of one (1) year only;

The Chairman shall be at least a third ranking permanent official of the LGU. (e.g. LGU Department Heads);

Succession - in case of resignation, retirement, separation, transfer, re-assignment, removal, the replacement shall serve only for the unexpired term;

Leave or Suspension - In case of leave or suspension, the replacement shall serve only for the duration of the leave or suspension;

The following officials are disqualified from membership: i. Chief Executive and other elective officials i.i The official who approves the procurement transactions i.i.i Chief Accountant or Head of Accounting Office and his/her staff unless the Accounting

Department is the end user

In no case shall the approving authority be the Chairman or a member of the BAC BAC members shall give utmost priority to BAC assignments over all other duties and responsibilities;

QUORUM: The majority (½ of membership plus 1) of the BAC shall constitute a quorum, provided that the Chairman or Vice Chairman should be present in all meetings and deliberations;

The Chairman or, in his absence, the Vice Chairman shall preside over the meetings;

The Presiding Officer shall vote only in case of tie;

All BAC decisions should be embodied in resolutions signed by at least a majority of the members and the Chairman or Vice Chairman, as the case may be.


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1.3 Responsibilities of the BAC

Recommend to the Mayor the method of procurement to be used (Public bidding or alternative methods);

Creation of the Technical Working Group (TWG) to assist in the procurement process;

Undertake the advertisement and/ or posting of the Invitation to Bid;

Conduct pre-procurement conference and pre-bid conference;

Determine the eligibility of bidders;

Sole authority to receive and open the bids;

Conduct bid evaluation with the assistance of the TWG;

Undertake post-qualification proceedings;

Resolve motions for reconsiderations filed by bidders and other concerned parties;

Recommend award of contracts to the Head of Procuring Entity or duly authorized second ranking official;

Recommend the imposition of sanctions in accordance with Rule XXIII of the IRR-A of R.A. 9184;

Prepare a procurement monitoring report that shall be approved by the Mayor;

For each procurement transactions , accomplish a checklist showing its compliance with RA 9184 (this will be submitted to the Mayor and made part of the transaction records);

Invite Observers required by law to be present during all stages of the procurement process;

Furnish observers, upon latter‟s request, the following documents: Minutes of BAC meeting, Abstract of bids, Post-qualification summary report, Annual Procurement Plan (APP) and related Project Procurement Management Plan (PPMP);

Conduct due diligence review, or verification of the qualifications of Observers;

Give utmost priority to BAC assignments over all other duties and responsibilities, until the requirements for the procurement at hand are completed;

Perform such other related functions as may be necessary to the procurement process.

2. THE TECHNICAL WORKING GROUP (TWG) The BAC may create a TWG from a pool of technical, financial, and/or legal expert to assist in the procurement process. In creating the TWG, the BAC shall consider the expertise required based on the nature of procurement. TWG for infrastructure shall include experts in civil works like engineers, architect, etc.

2.1 Responsibilities of the TWG:

Assist the BAC in the preparation of the bidding documents;

Assist the BAC in the conduct of eligibility screening of prospective bidders;

Assist the BAC in the evaluation of bids and prepare reports for the BAC‟s consideration and approval;

Assist the BAC in the conduct of post-qualification activities and prepare the post-qualification summary report;

Assist the BAC and BAC Secretariat in preparing resolution recommending award;

Provide utmost priority to BAC assignments over all other duties, until the requirements for the procurement at hand are completed.


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3. THE OBSERVERS

3.1 Observers Composition: The BAC must invite three (3) observers, and must include:

COA Representative;

At least one observer who shall come from a duly recognized private group in a sector or discipline relative to the procurement at hand. For infra: National Contractors Association duly recognized by Construction Industry Authority of the Philippines (CIAP) or PICE.

3.2 Responsibilities of Observers

Preparation of the Procurement Observation Report. The report shall indicate : (1) BAC‟s compliance with the substantive and procedural requirements of RA 9184 (2) The areas of improvement in the BAC‟s Proceedings;

Prepare a report, jointly or separately, on their assessment of the extent of the BAC‟s compliance with the provisions of the law/ regulations and areas of improvement in the BAC‟s proceedings;

Sign the abstract of bids if the BAC followed the correct procedures;

Sign the post-qualification summary report if the BAC followed the correct procedures and the observer is amenable to the results of the post-qualification.

4. THE TECHNICAL SECRETARIAT The Technical Secretariat is the main support unit of the BAC.

Responsibilities of the Secretariat:

Provide administrative support to the BAC;

Organize and make all the necessary arrangements for the BAC meetings;

Attend BAC meetings as Secretary;

Prepare Minutes of BAC meetings;

Take custody of procurement documents and be responsible for the sale and distribution of bidding documents;

Assist in managing the procurement process;

Monitor procurement activities and milestones;

Consolidate Project Procurement Management Plan (PPMPs) from various units;

Make arrangements for pre-procurement and pre-bid conferences and bid openings. II. PROCUREMENT OF CIVIL WORKS

The following are considered civil works projects:

Construction Improvement;

Rehabilitation;

Demolition;

Repair;

Restoration or Maintenance of roads and bridges, railways, airports, seaports, communication facilities, irrigation, flood control and drainage, water supply, sewerage and solid waste


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management systems, shore protection, energy/ power and electrification facilities, buildings, and other related construction projects of the government.

1. PREPARATION OF DETAILED ENGINEERING DESIGN

No bidding and award of contracts for infra-structure project shall be made unless detailed engineering investigations, surveys, and design, including acquisition of right-of-way for the project have been sufficiently carried out and duly approved. Only after acceptance and approval of the feasibility study shall detailed engineering investigations be conducted. 1.1 Detailed engineering activities shall include the following:

Surveys;

Site investigation;

Soils and foundation investigation;

Construction materials investigation;

Preparation of design plans and design analysis;

reparation of technical specifications;

Preparation of quantity and cost estimates;

Preparation of program of work;

Preparation of proposed construction schedule;

reparation of site and right-of-way plans;

Preparation of utility relocation plan;

Preparation of design report;

Environmental impact statement for critical project;

Reparation of minimum requirements for a Construction Safety and Health Program for the project;

Reparation of Bidding Documents. 1.2 Work under detailed engineering shall include:

Design Standards (should be accordance with acceptable standards);

Field Surveys and Investigations (necessary surveys and investigations shall be carried out);

Contract plans ( site development, plans and profile sheet, typical section and details, structural plans, other details);

Quantities (construction quantities, accuracy: plus or minus 10%);

Specifications;

Unit prices;

Approved budget for the contract (to be approved by the head of procuring entity);

Bidding documents (harmonized bid documents);

Program of work (work items, quantities, cost, pert/cpm network of project activities).

2. PROCUREMENT PROCEDURES

A. Pre-procurement Conference

A pre-procurement conference is conducted to determine the readiness of the Procuring Entity to procure infrastructure project in terms of the legal, technical, and financial requirements;


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Confirm the availability of appropriations and programmed budget for the contract, and reviews all relevant documents in relation to the adherence to the laws;

Must be conducted prior to advertisement, at least 7 days prior to publication or issuance of Invitation to Apply for Eligibility and to Build (IAEB);

Participants: BAC, Secretariat, TWG, PMO, Officials concerned.

B. Advertisement/Posting

Advertisement in a newspaper at least once in one (1) newspaper of general nationwide circulation/which has been regularly published for at least 2 yrs before the date of issuance of the advertisement;

Posted continuously in the website of the Procuring Entity, if available, and Government Election Procurement System (G-EPS) for 7 calendar days starting from the date of advertisement;

Posted at any conspicuous place reserved for this purpose in the premises of the procuring entity concerned for 7 calendar days.

C. Issuance of Bid Documents

Interested party shall submit a written Letter of Interest (LOI) together with its application for eligibility which must be received by the BAC not later than 7 calendar days from last date of posting of Invitation to Bid.( GPPB Resolution No. 014-2006 , Section 21.3.1);

Even if only one prospective bidder submits an LOI, the bidding process continues. (IRR of RA 9184, Section 36). A No Objection Letter from ADB shall be secured first. If it is later declared eligible and its bid is found to be responsive to the bidding requirements, its bid will be declared as a Single Calculated Responsive Bid (SCRB);

Bidding documents shall be issued and be made available at the time the Invitation to Apply for Eligibility to Bid is advertised or posted;

The Eligibility Documents will form part of the Bid Document to be issued. (ITB of the Harmonized Bid Documents).

Eligibility Requirements

The eligibility of prospective bidder is determined based on the submission of the following documents:

CLASS „A” DOCUMENTS

DTI business name registration or SEC registration certificate;

Valid and current Mayor‟s Permit;

TIN;

Statement of the prospective bidder that it is not blacklisted;

Statement of ongoing and completed government and private contracts. Statement shall be supported by Contractors Performance Evaluation System;

Valid Philippine Constructors Accreditation Board (PCAB) registration for the type and cost of contract to be bid;

Statement of availability of bidder‟s key personnel;

Statement of the availability of equipment that may be used for the contract;

Bidder‟s audited financial statement stamped “received” by the Bureau of Internal Revenue (BIR);

Prospective bidder‟s computation of its Net Financial Contracting Capacity (NFCC) or a certification of commitment specific to the contract at hand issued by a licensed bank to extend