Guidelines Governing the 2nd Open and Competitive Selection Process (OCSP 2) In the Award of Renewable Energy (RE) Service Contracts

I. Eligibility Criteria for OCSP Applicant.

  1. For purposes of OCSP application, the RE Proponent must be a Filipino or, if a corporation, must be a Filipino corporation at least sixty percent (60%) of its capitalization owned by Filipinos, duly registered with the Securities and Exchange Commission (SEC) and organized or authorized for the purpose of engaging in renewable energy exploration, development and utilization.
  2. In case the RE Proponent is a joint venture or consortium, the partners of the joint venture  or members of the consortium shall organize themselves as a corporation registered under the Corporation Code of the Philippines and organized or authorized for the purpose of engaging in renewable energy exploration, development and utilization.

II. Procedure for the Conduct of OCSP.

  1. Invitation to Submit Proposals and Publication

    Invitation to prospective RE proponents shall be published at least once a week for two (2) consecutive weeks in at least two (2) newspapers of general circulation. The same invitation shall, likewise, be posted in the DOE website.

  2. Pre-submission Conference for RE Proponents.
    1. A pre-submission conference shall be held on the date and venue set by RE-REC, to clarify and address possible questions of the RE Proponents on the Guidelines.
    2. RE Proponents in the OCSP are encouraged to attend the pre-submission conference.
    3. Any statement made at the pre- submission conference shall neither modify nor amend the terms of the OCSP Guidelines unless such statement is specifically identified in writing as an amendment thereto and issued as a Supplemental/OCSP Bulletin.
    4. The Supplemental/OCSP Bulletin, if any, shall be posted in the DOE website within seven (7) days from the conduct of Pre-Submission Conference.
  3. Application Fee.
    1. A non-refundable fee shall be paid by the RE Proponent covering the project being applied for. Such payment shall be made in cash or Manager’s Check payable to the Department of Energy (DOE).
    2. For Hydropower projects, the application fee per project shall be PhP 50,000.00 if the estimated capacity of less than 50 MW and Php100,000.00 for 50 MW and above, respectively.
    3. For Geothermal projects, the application fee shall be PhP 100,000.00 per project.
    4. No RE Proposal shall be accepted unless it is accompanied by a proof of payment of the application fee.
    5. Only those RE Proponents who have duly paid the application fee shall be given access to the available data of the project being applied for.
  4. Filing Process.
    1. The RE Proponent shall submit its Proposal per project containing three (3) sets of documentary requirements as enumerated in Annex “A". These documents shall be placed separately in sealed envelopes. These envelopes shall be marked as Envelope-A, Envelope-B and Envelope-C, containing legal, financial and technical documents, respectively. All envelopes shall be properly labeled following the sample shown in Annex “B.”
    2. If the envelopes are not sealed and marked as required, the DOE will not assume any responsibility for the misplacement or premature opening of the Proposal.
    3. A brief summary of proposed financial commitments shall be included in the Financial Documents. Please refer to Annex “C”.
    4. Descriptions of Work Program and Track Records/Experiences shall be included in the Technical Documents as shown in Annex “D” and “E,” respectively.
    5. Each Proposal must contain one set of original documents and two photocopies thereof and a CD/DVD-ROM containing a digital or scanned copy of each original document therein using Microsoft Word or PDF formats.  For legibility, figures must be at least 12 font size and maps must be  at a scale of not smaller than 1:50,000. The Proposal may be sent by courier, registered mail or personal delivery and must be addressed to:


      Office of the Assistant Secretary
      Chairman of RE-REC
      Department of Energy
      Energy Center, Rizal Drive
      Bonifacio Global City
      Taguig City, 1632


    6. Proposals shall be received on the date, time and place specified in the Invitation to Submit Proposal (ITSP). Proposals submitted after the deadline shall not be accepted.
  5. Modification and Withdrawal of Proposals.
    1. The RE Proponent may modify its Proposal after it has been submitted: Provided, That the modification is made only once and  received by the RE-REC on or before the deadline prescribed for the submission of Proposals. The RE Proponent shall not be allowed to retrieve its original Proposal, but shall be required to submit a modified Proposal with complete documentary requirements in accordance with the filing procedure prescribed in Item 4 above. RE-REC shall automatically disregard the earlier submitted Proposal upon timely receipt of the modified Proposal. Modified Proposals received after the applicable deadline shall not be considered and shall be returned to the RE Proponent unopened.
    2. The RE Proponent may, in writing, withdraw its Proposal for any reason, provided that the Letter of Withdrawal is received by the RE-REC prior to the deadline prescribed for submission of Proposals.
    3. Proposals requested to be withdrawn shall be returned unopened to the RE Proponents.  The RE Proponent that has withdrawn its Proposal shall not be permitted to submit another Proposal, directly or indirectly, for the same area.
    4. RE Proponent who withdrew their Proposal as provided in items b and c herein shall have no right to raise questions on matters relating to the conduct of the OCSP.
  6. Opening and Evaluation of Proposals.
    1. The RE-REC shall open the Proposals on the date, place and time indicated in the ITSP. The RE Proponents or their duly authorized representatives shall attend the opening of the Proposals.
    2. The RE-REC shall open the Proposals in public to determine each Proponent’s compliance with the documentary requirements. For this purpose, the RE-REC shall check the submitted documents of each Proponent against a checklist of required documents (Annex “A”) to ascertain if they are all present, using a non-discretionary pass/fail criterion. If an RE Proponent submits the required document, it shall be rated “passed” for that particular requirement. In this regard, Proposals that fail to include any requirement or are incomplete or patently insufficient shall be considered as “failed”. If Envelope “A” is found to be insufficient and patently incomplete, the Proposal shall automatically be disqualified and the remaining envelopes shall no longer be opened. Likewise, if Envelope “B” is found to be incomplete and hence rendered “failed” for being non-compliant, Envelope “C” shall no longer be opened and the Proposal shall automatically be denied.
    3. Only Proposals with “Passed” mark for all the three (3) envelopes shall be considered for evaluation. The technical and financial components of the Proposal which have been certified by the RE-REC to have passed the legal evaluation shall be subjected for comparison/ranking based on the point system set herein (Annex “F”).
    4. A processing fee of PhP 23,850.00 per  hydropower project and PhP 6.50 per hectare for geothermal  projects shall be paid by the RE Proponent that passed the completeness check within three (3) days from receipt of the Order of Payment. The processing fee may be paid in cash or Manager’s Check payable to the DOE.
    5. Evaluation of qualified RE Proponent shall commence upon receipt of proof of payment of the processing fee. Failure to pay the processing fee within the prescribed period shall result to automatic disqualification of the Proposal.
    6. The RE-REC shall complete the evaluation process within three (3) months from the date of the opening of the Proposals.
    7. All qualified RE Proponent shall be notified in writing by the RE-REC of the results of the evaluation.
  7. Awarding of Hydropower/Geothermal Service Contract.
    1. The RE Proponent whose Proposal got the highest points shall be awarded an RE Service Contract.
    2. The RE-REC shall submit to the Secretary the list of area with corresponding winning Proponents.
    3. The DOE shall award the RE Service Contract to the winning Proponent/s within fifteen (15) days from the date of approval of the result of the OCSP.
  8. Failure of OCSP.
    1. The RE-REC may recommend a failure of OCSP upon the existence of any of the following conditions:
      1. No Proposal is received;
      2. All Proposals fail to comply with all the documentary requirements;
      3. The winning RE Proponent refuses, without justifiable cause to accept the award of contract, and no award is made; or
      4. All the Proposals were lost or destroyed on the ground of force majeure before the opening of Proposals.
    2. In case of failure of OCSP, RE Service Contracts for the offered areas for both geothermal and hydropower projects shall be made through Direct Negotiation under Section 10. a of Department Circular No. DC2009-07-0011 and Department Order No. DO2013-08-0011 except if the failure is based on the ground stated in item a. (iv) above, in which case, the OSCP shall be rescheduled immediately.
  9. Timeline.
    1. The Timeline for the 2nd OCSP and Awarding of Service Contract is set herein and shown in Annex “G”.
    2. Adjustment to the dates provided in the said Timeline may be made upon the recommendation of the RE-REC and/or at the discretion of the DOE Secretary on any ground/s it may consider fit and proper.

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