Policy Guidelines on the Implementation of Sitio Electrification Program (Phase 2-Grid Connection)

April 25, 2018

AMENDMENT TO NEA MEMORANDUM NO. 2018-001 "POLICY GUIDELINES ON THE IMPLEMENTATION OF SITIO ELECTRIFICATION PROGRAM (PHASE 2-GRID CONNECTION)"

RATIONALE:

Corporate Budget Memorandum No. 40 issued by the Department of Budget and Management (DBM) on January 3, 2018 mandated all Government-Owned or Controlled Corporations (GOCCs) to adapt and implement for FY 2019 the new budget reform bill of shifting from a multi-year obligation-based budget to an annual cash-based budget.

To put more emphasis on accelerating program delivery by shifting to a One Year Horizon with annual cash-based budget, the budget as planned and legislated should be fully executed within the year. The shift strengthens the focus and accountability of government and ensures that its operation are on schedule and appropriated budgets are fully disbursed within the fiscal year. Also, to limit the national budget to the cash requirements for the goods and services that will actually be delivered within the year.

BACKGROUND:

The existing Policy Guidelines on the Implementation of Sitio Electrification Program (Phase 2-Grid Connection) under Section IV,Implementing Guidelines, Clause B, Schedule of Fund Release, Item Nos. 4 and 5, provides the following:

IV. IMPLEMENTING GUIDELINES

B. Schedule of Fund Release

4. The Deputy Administrator for Corporate Resources and Financial Services (DACRFS) then recommends the Request for the Release of Construction Funds (RRCF) to the Administrator for final approval of release of funds to the EC.

5. Upon approval of the RRCF for a specific project classification, funds shall be released by the Treasury Division (TD) to the ECs as follows:

• First release shall be seventy percent (70%) of the total evaluated project cost to cover mobilization, full payment of the material cost and after submission of the Notice of Award/Notice to Proceed with the winning bidder.

• Second release shall be twenty percent (20%) of the total project cost after completion of at least 50% physical accomplishment of the project including submission of the duly signed Budget Request, accomplishment report and accounting of funds of the initial subsidy release (70%).

• Third/final release shall be ten percent (10%) of the total project cost after final inspection/acceptance of the project including submission of Certificate of Completion of Project, Certificate of Energization, Certificate of Final Inspection and Acceptance (CFIA), Final Accounting of Funds of the project, As built staking sheets and bill of materials, Project Implementation Report, Summary of Household Connections including list of beneficiaries per sitio and Budget Request.

AMENDMENT:

To implement FY 2018 budget as if it is as cash-based budget as recommended by DBM and to correct the statement of Item No. 4, Section IV, Implementing Guidelines, Clause B, Schedule of Fund Release, Item Nos. 4 and 5 of the existing policy guidelines are amended, as follows:

IV. IMPLEMENTING GUIDELINES

B. Schedule of Fund Release

4. The Administrator/Deputy Administrator for Corporate Resources and Financial Services (DACRFS) then approves the release of funds to the EC.

5. Upon approval of RRCF for a specific project classification, funds shall be released by the Treasury Division (TD) to the ECs as follows:

• Initial release shall be ninety percent (90%) of the total evaluated project cost to cover mobilization, full payment of the material and labor cost and after submission of the Notice of Award/Notice to Proceed with the winning bidder.

• Final release shall be ten percent (10%) of the total project cost after final inspection/acceptance of the project including submission of Certificate of Completion of Project, Certificate of Energization, Certificate of Final Inspection and Acceptance (CFIA), Final Accounting of Funds of the project, As built staking sheets and bill of materials, Project Implementation Report, Summary of Household Connections including list of beneficiaries per sitio and Budget Request.

EFFECTIVITY:

This Amendment on Schedule of Fund Release shall take effect on SEP and other subsidy-funded projects with funds release in Year 2018 and onwards.

CLUSTER ON TOTAL ELECTRIFICATION

(SGD.) ARTIS NIKKI L. TORTOLAOversight

(SGD.) ANA ROSA D. PAPAChairman

(SGD.) HENRIETTA A. MARAMOTCo-Chairman

(SGD.) RODERICK N. PADUACo-Chairman

Members:

(SGD.) GUILLERMO M. PAZ

(SGD.) MILAGROS A. ROBLES

(SGD.) MA. CHONA O. DELA CRUZ

on travelERNESTO O. SILVANO, JR.

(SGD.)LIDA E. DELA MERCED

(SGD.) MARCELINO D. CACDAC

(SGD.) JOSEPH M. SANGALANG

(SGD.) FELICISIMO U. PULA

(SGD.) ARNEL P. GALARPE

(SGD.) LEILANI L. RICO

(SGD.) RODOLFO D. EVANGELISTA

(SGD.) LUISA I. HERNANDEZ

Secretariat:

on travelRAYMOND M. NAPILOT

(SGD.) JOVANI B. LAGON

(SGD.) DARIL JEFF M. HIDALGO