The National Electrification Administration (NEA) has reminded electric cooperatives (ECs) to comply with the recommendations of the Commission on Audit (COA) on the implementation of Sitio Electrification Program (SEP) Projects.
NEA issued a technical advisory emphasizing the importance of adhering to the designated timeline for project completion and energization. ECs are urged to take into account Item 3.a in the Memorandum of Agreement between NEA and the ECs to prevent the suspension of additional subsidy funds.
Item 3.a states that “the project(s) should be implemented and completed within six (6) months after receipt of the subsidy appropriations by the recipient from NEA.”
If the projects cannot be completed within the approved six-month timeframe, ECs are required to submit a written request for an extension within 30 days prior to the deadline.
Under Item 3.b, it is stated that the “NEA shall act on the request for an extension within the same 30-day period. Furthermore, any extension of the said six-month period shall, in no case, exceed three (3) months.”
NEA reiterated the provisions in the MOA in response to the issuance of Audit Observation Memorandum (AOM) No. 2022-057, which specifically addressed the implementation of CY 2022 Audited Electric Cooperatives’ Subsidy Funded Projects, especially on the delays that occurred in the construction of
Meanwhile, NEA also warned all ECs against blacklisted contractors in its effort to avoid setbacks in the implementation of subsidy-funded projects.
Under NEA Memorandum 2023-23, ECs are authorized to charge and impose liquidated damages against disobedient contractors for all delays sustained in the implementation of the projects, according to the provisions of their respective contracts with the contractors.
NEA further urged electric cooperatives to provide a list of their blacklisted contractors.
“All blacklisted contractors are no longer eligible to bid contracts in any and all electric cooperatives for a period of one (1) year, reckoned from the time of posting on the NEA website,” NEA said in a statement.