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January 14, 2019

MEMORANDUM No. 2019-003

TO ALL ELECTRIC COOPERATIVES

SUBJECT GUIDELINES ON NEA ACCREDITATION OF MANAGEMENT

CONSULTANTS FOR ELECTRIC COOPERATIVES (ECs)

A. RATIONALE

Pursuant to Section 3 of the Implementing Rules and Regulations (IRR) of RA 9136

which provides that NEA shall develop and implement programs to strengthen the
technical capability and financial viability of Electric Cooperatives (ECs) through
offering of services to the ECs other than those related to its lending functions, for
a fee duly approved by the NEA Board of Administrators and may consider hiring
of qualified external industry management experts and shall provide their services
to the ECs: Provided, that such services will not increase Retail Rates.

Likewise, as provided in RA 10531 particularly Section 4 (e) which empowers NEA

to supervise the management and operations of all ECs and Section 4 0) which
empowers NEA to ensure the economic and financial viability and operation of all
ECs, NEA hereby issues this guidelines to establish a system of accreditation of
management consultants for ECs in order to address the specific areas of concern
of ECs and to achieve a turnaround in EC operations.

In accordance with Board Resolution No. 155, Series of 2018 dated August 29,
2018, the NEA Board of Administrators approved the Policy on Management and
Consultancy Services to ECs; and granted authority for the Administrator to sign
the Management and Consultancy Services Agreement for and on behalf of NEA.

B. P OLICY STATEMENTS

1. The EC shall be provided with consultancy services by NEA through an

accredited Management Consultant approved by the NEA Administrator as
recommended by the Management and Consultancy Services Committee
(MCSeC).

2. The NEA and the concerned EC shall execute a consultancy services

agreement for specific terms and conditions as stipulated in the contract.
R.EPUHLIC OF THE PHILIPPINES
NA110NAL Ei.EC1'iUFlCAT10N ADMINISTRATION U.P. LA�fftN1t:f<
QUEZON CITY '. .. ..
'Of.FICF. nf 111� Nl1TIONAL ADM!N!3iRATiVE REGIST[R
OFflCF. OF THf. CORPOilATli: SRCRIITARY
.C-dm1r,,s1reii11e �ule:; c<:ad Rc9u1011cns
CERTlF !ED TRUE COPY

(02) 929� 1909

www.nea.gov.ph
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Affi. ALEY.ANDER PAUL T. RIVERA
C. OBJECTIVES

1. To ensure that ECs are provided with management and consultancy services
from the NEA accredited pool of experts; and

2. To determine the effectiveness of the management and consultancy services

provided to ECs in order to ensure the attainment of agreed or predetermined
deliverables.

0. LIMITATIONS OF ACCREDITATION

1. The NEA shall not be liable for any liability, damage or loss that may arise from
the engagement of accredited Management Consultant for the EC.

2. The accreditation of Management Consultants shall expire or be automatically

cancelled after its validity period as indicated in the Certificate of Accreditation.

3. NEA reserves the right to revoke the accreditation or terminate the services of
the management consultant prior to the expiration of the contract effective at
least thirty (30) days from the receipt of due notice by the Consultant.

E. QUALIFICATION REQUIREMENTS FOR ACCREDITATION OF MANAGEMENT

CONSULTANTS

Interested Management Consultant shall meet the following accreditation

requirements:

1) Compliance with Government Regulations

As the case may be, the Management Consultant must be registered with the
Department of Trade and Industry (DTI) and/or Securities and Exchange
Commission (SEC) and with valid and updated business permit.

2) Credibility as Management Consultant

a. Experience in Management and Consultancy services for at least three (3)

years prior to application;

b. Management Consultants must preferably be a member of recognized

professional associations and authorities, local and/or foreign, if applicable;
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F. DOCUMENTARY REQUIREMENTS FOR ACCREDITATION

The applicant shall submit to MCSeC the following documents for accreditation:

a. Application letter for a. Application letter for renewal of

accreditation; accreditation which shall be filed
not later than thirty (30) working
days before expiration;

b. Duly authenticated photocopy of b. Photocopy of NEA Certificate of

DTl/SEC registration certificate; Accreditation as Management
Consultant;

c. Duly authenticated photocopy of c. Duly authenticated photocopy of

management consultant's management consultant's
membership in recognized membership in recognized
professional associations/ professional associations/
authorities and participation in authorities and participation in
any related undertaking, local any related undertaking, local
and/or foreign; and/or foreign;

d. List of trainings/consultancy d. List of trainings/consultancy

services provided, full-time, services provided, full-time,
project-based, or invites and project-based, or invites and
comprehensive resume with comprehensive resume with
emphasis on the area of emphasis on the area of expertise
expertise and trainings and trainings undertaken in the
undertaken in the last three (3) last three (3) years;
years;

e. Sworn statement attesting to the e. Sworn statement attesting to the

genuineness of the documents genuineness of the documents
submitted; and the correctness \ submitted; and the correctness
and truthfulness of data/ ! and truthfulness of data/

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G. PROCEDURES FOR ACCREDITATION

1. To cover administrative costs in the evaluation of application for new/renewal

of accreditation, an accreditation fee of Php10,000.00 shall be collected upon
filing.
2. Accreditation fee shall be paid to the Cashier's Office of NEA and is non-
refundable.
3. MCSeC shall evaluate and validate all submitted required documents for its
completeness and veracity within ten (10) working-Gay.S-.. ifo-Q! . r.~~_eigL2!__ ___
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 4. MCSeC shall request the applicant to submit lacking documents in writing within
five (5) working days from receipt of the letter request.
5. Additional documents not previously listed in Items F.1 and F.2 (Accreditation
Documentary Requirements) , but are deemed necessary, may be requested
from the applicant within five (5) working days from the conduct of evaluation
of the application.
6. Applicant, whenever necessary, may be required to present the original copies
of the submitted documents for validation purposes.
7. MCSeC shall recommend approval for accreditation of qualified Management
Consultants to the Administrator and the Certificates of Accreditation shall be
issued.
8. The Certificate of Accreditation shall be approved/signed by the NEA
Administrator.
9. Approved accreditation shall have a validity period of three (3) years which shall
be specified in the Certificate of Accreditation.
1o. MCSeC shall send a written notification to the applicants with approved
accreditation together with the original copy of the Certificate of Accreditation.
Likewise, MCSeC shall notify in writing the applicants .with denied/deferred
requests.

H. REPORTORIAL REQUIREMENTS

To be able to determine the effectiveness of the services of the Management

Consultant to the EC, an accomplishment report shall be submitted monthly based
on his/her action plan. The report shall be submitted to the Administrator thru the
Deputy Administrator for Electric Cooperative Management Services (ECMS)
within ten (10) working days after the end of the month.

I. ENGAGEMENT REQUIREMENTS

MCSeC shall undertake regular meetings with the Management Consultants on

the evaluation and assessment of performance-based engagement plans.

J. EFFECTIVITY

This Policy and Guidelines shall take effect 15 days after filing with the University
of the Philippines (UP) Law Center pursuant to the Presidential Memorandum
Circular No. 11 dated October 9, 1992.

For your information and guidance.

~~
EDGARDO R. MASONGSONG
Administrator NATIONAL ELECTRIFICATION
ADMINISTRATION

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January 22, 2019 ~

THE DIRECTOR
Office of the National Administrative Register
University of the Philippines Law Center
U .P Law Center, Diliman
Quezon City

Sir:

Pursuant to Book VII, Chapter 2, Section 3 of the 1987 Administrative Code of the
Philippines, we are respectfully submitting to the U.P Law Center for filling, publication and
recording the attached certified true copies of the "GUIDELINES ON NEA
ACCREDITATION OF MANAGEMENT CONSULTANTS FOR ELECTRIC
COOPERATIVES (ECS)" promulgated by the National Electrification Administration
(NBA) in accordance with its authority under Section 5 of P.D. No. 269 as amended.

Thank you very much.for the usual and kind assistance of the U.P Law Center.

Very truly yours.

ATTY.ALEXANDERPAULT.RIVERA
Acting Deputy Administrator for Legal Services
And Corporate Board Secretary V

(02) 929-1909
vvww.nea.gov.ph