DOJ Opinion No. 025, s. 2004

DOJ OPINION NO. 025, s. 2004 March 8, 2004 Secretary Juanita D. Amatong Department of Finance Manila M a d a m : Subject herein is your request of your predecessor for confirmation that the obligations assumed by the Republic of the Philippines under its Performance Undertaking (PU), in connection with the 200 MW Mindanao Coal-Fired Power Plant Project of the National Power Corporation (NPC), are, under the laws of the Philippines, legal, valid and binding obligations enforceable against it in accordance with the terms thereof. The request, it appears, was precipitated by the two opinions rendered by this Department: one on the PU (DOJ Op. No. 25, s. 2003) and another on the Government Acknowledgment and Consent Agreement (GACA) (DOJ letter dated September 7, 2003). It is claimed that neither opinion "contains an express statement that the obligations of the Republic of the Philippines under the PU constitute legal, valid and enforceable obligations." Relative thereto, please be advised that the Department cannot agree to the view that our subject opinions contain no statement concerning the validity, legality and enforceability of the obligations assumed by the Republic of the Philippines under the subject PU. As we have categorically stated in our April 11, 2003 Opinion: Based on the foregoing representations, and in the light of the applicable provisions of the 1987 Administrative Code, we confirm that the Secretary of Finance has the authority to issue the subject performance undertaking. xxx xxx xxx In the instant case, it is our view that the performance undertaking may be issued for the project and that the execution of the performance undertaking is within the authority of the Secretary of Finance. dojcd2004 Explaining in the relation to the issuance of the GACA, we, thus, stressed in our letter of September 17, 2003: . . . . As such, we are of the view that: (1) the execution of the GACA by the Secretary of Finance is within the Special Authority issued by the President on January 7, 2003, and (2) if executed, the obligations expressed to be assumed by the Republic of the Philippines through the Department in the GACA are, under the laws of the Philippines, legal, valid and binding obligations enforceable against the Republic of the Philippines in accordance with the terms thereof . Please be guided accordingly. aEHTSc Very truly yours, (SGD.) MA. MERCEDITAS N. GUTIERREZ Acting Secretary