TERMS OF REFERENCE

CONSULTING SERVICES FOR THE PROCESS AND

PROCEDURE REVIEW OF THE NATIONAL GRID
CORPORATION OF THE PHILIPPINES (NGCP)

A. RATIONALE

The Energy Regulatory Commission (ERC) is the independent, quasi-

judicial regulatory body created under Republic Act No. 9136,
otherwise known as the “Electric Power Industry Reform Act of 2001”.
Section 43 (s) of the EPIRA, authorizes the Commission to inspect, on
its own or through its duly authorized representatives, the premises,
books of accounts and records of any person or entity at any time in the
exercise of its quasi-judicial power for purposes of determining the
existence of any anti-competitive behavior and/or market power abuse
and any violation of its rules and regulations.

With its existing organizational structure vis-à-vis its mandates over

regulated entities, the ERC does not have the technical expertise and
capability to conduct system operations process and procedure review
of the National Grid Corporation of the Philippines (NGCP).

National Grid Corporation of the Philippines (NGCP)

The NGCP has the crucial task of delivering safe and reliable electricity
throughout the archipelago, a responsibility formerly held by the
National Transmission Corporation (TransCo). Incorporated in 2008,
the private corporation won in the bidding for the franchise to operate
and maintain the country’s transmission network. The fifty-year
franchise provides NGCP with the right to operate, maintain, expand
and further develop the country’s power transmission system which
involved with more than 21,000 circuit kilometers of lines, 20,000
transmission towers, and 140 substations.

As System Operator (SO) of the Philippine power grid, NGCP balances

the supply and demand of electricity to efficiently serve all its
customers—power generators, private distribution utilities, electric
cooperatives, government-owned utilities, eco-zones, industries, as
well as directly-connected companies. It is responsible for putting
online the right mix of power plants that generate high-voltage
electricity and transmitting this to the various distribution utilities
which, in turn, deliver the electricity at a lower voltage rating to

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 households and other end-users. NGCP also operates and maintains
grid-metering facilities and provides technical services, particularly
system studies, and operation and maintenance of customer facilities.
The performance of the SO depends on the availability of transmission
facilities, which is one of the functions of the Transmission Network
Provider (TNP). As TNP, it is responsible for maintaining adequate
grid capacity in accordance with the Philippine Grid Code (PGC).

NGCP operates in all the three major Philippine islands: Luzon,

Visayas, and Mindanao. Luzon is the region with the largest grid in
NGCP’s network, composed of Metro Manila, Northern Luzon, and
Southern Luzon. It is the country’s main industrial and commercial
region, which accounts for 74% of the country’s total power demand.
Visayas is composed of separate but interconnected island grids of
Cebu, Negros, Panay, Leyte, Samar, and Bohol, which accounts for 14%
of the country’s power demand. Situated in the southernmost section
of the Philippine archipelago is Mindanao, which is the second largest
island group in the Philippines that accounts for 12% of total power
demand in the country.

Market Operator and NGCP Coordination in the WESM

The WESM was established by the DOE, in accordance with the EPIRA,
to facilitate a competitive market environment in the Philippine
electricity industry. The market operator, a non-stock and non-profit
organization with equitable representation from electric power
industry participants, was constituted by the DOE in November 2003
to operate the WESM in the interim. It is headed by Board of Directors
whose members are independent of government and of the market
participants.

Republic Act No. 9136, otherwise known as the Electric Power Industry
Reform Act (EPIRA) requires that WESM market operations be
transferred to an independent entity that is separate from its governing
body. As jointly endorsed by the market participants and the
Department of Energy (DOE), market operator will take on this role
and pursue the WESM objectives of having a transparent, fair,
competitive, and reliable market for the trading of electricity
throughout the Philippines.

The market operator operates the Philippine Wholesale Electricity

Spot Market (WESM) in close coordination with the System Operator
(SO). The market operator is responsible for the commercial aspects of
WESM transactions, while the SO takes care of the physical
implementation of these market transactions.

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 The market operator runs the electricity market by, among other
things, managing the registration of market participants, receiving
generation offers, coming out with market prices and dispatch
schedules of the generation plants, monitoring the day-to-day market
trading, and handling billing, settlement, and collections. It discharges
its mandate under the policy and regulatory oversight of the
Department of Energy (DOE) and the Energy Regulatory Commission
(ERC).

As the Central Registration Body (CRB) for the retail electricity market,
market operator plays a pivotal role in fostering competition in the
Philippine electricity sector. Under the existing legal framework for
Retail Competition and Open Access (RCOA), electricity end-users
become part of the contestable market upon reaching the applicable
contestability demand threshold. After being certified by the ERC,
these contestable customers are given option to secure their supply
from a licensed retailer of their own choosing duly licensed by the ERC.
As CRB, market operator maintains a registry of these contestable
customers and their current suppliers, tracks the market transactions
made by their suppliers on their behalf, and effect customer-switching
in the retail market.

The market operator is also preparing to assume the registrar functions

for the Renewable Energy Market (REM) once it is established
pursuant to the Renewable Energy Act of 2008. The REM is a market
for the trading of Renewable Energy Certificates (RECs) in the
Philippines intended as a venue for Mandated Participants obligated
under Renewable Portfolio Standards (RPS) to comply with their RPS
requirements. The functions include administering the operations of
the REM and maintaining the REC Registry.

Currently, the WESM is operational in Luzon and Visayas whereas the

Interim Mindanao Electricity Market commenced operations in
December 2013.

The market operator ensures the optimal dispatch of generation based

on the submitted offers from generators, bids from customers and
conditions of the grid from NGCP, wherefrom a spot price for
electricity throughout the grid is set. It facilitates the settlement of
financial accounts of the trading participants based on the same
sources of information.

Subject to technical constraints, NGCP provides the central dispatch to

all generation facilities and loads connected, directly or indirectly, to
the transmission system, in accordance with the dispatch schedule
submitted by the market operator. The NGCP, in coordination with the
market operator, significantly contributes in the development of

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 procedures, processes or systems, and assists with any aspect of the
WESM operations.

Results of the Independent Operational Audit of the Systems

and Procedures on Market Operations

In accordance with Clause 1.5 of the WESM Rules, the market operator,
through an Independent Reviewer, has conducted four (4)
Independent Operational Audits of the Systems and Procedures on
Market Operations since 2009 up to 2013.

The said audit covered the WESM bid-to-bill operations. However,

operations of the SO were not included in the audit scope. Thus, data
and information coming from the SO were considered as valid and the
reasons behind SO’s actions as noted by and submitted to the market
operator were not validated.

In this regard, the Independent Reviewer of the annual market audits

had strongly recommended the conduct of SO Audit noting the
significance of SO's operations, processes and input data to the over-
all efficiency and effectiveness of the WESM.

The proposed conduct of SO Review is also consistent with Items 13.1.1

and 13.1.2 of the PEM Audit Market Manual Issue 2.0 dated 05 October
2010, to wit:

13.1.1 The System Operator shall ensure an audit trail of

documentation that is fully adequate to substantiate and
reconstruct all relevant actions performed. For data and
documents related to the WESM Rules and this Manual, such
audit trail shall be maintained for a period of at least seven (7)
years, unless specified otherwise in the WESM Rules or other
Applicable Law, Rules and Regulations.

Governing Rules and Guidelines

NGCP balances the demand and supply of electricity to efficiently serve

all its customers, which include generators, private distribution
utilities, electric cooperatives, government-owned utilities, ecozones,
industries, and directly connected customers in accordance with the
following rules and guidelines, among others:

1. Electric Power Industry Reform Act of 2001 (EPIRA) and its

Implementing Rules and Regulations;

2. Philippine Grid Code (PGC);

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 3. Open Access Transmission Service (OATS),

4. Ancillary Services Procurement Plan (ASPP);

5. Procedures on Dispatching, Operations Planning, Ancillary

Services, Grid Protection, Supervisory Control and Data
Acquisition (SCADA), Energy Management System (EMS), and
other protocols covering SO;

6. ERC Rules and Regulations;

7. Republic Act No. 9511 (NGCP Franchise Act); and

8. Other Relevant Issuances.

B. OBJECTIVE

In this context, the process and procedure review of the technical

operations of NGCP, specifically aims to:

1. Review and assess the accuracy and appropriateness of systems,

data management and other procedures and working processes
used by the NGCP-SO to:

▪ Identify the appropriate steps and measures to help the NGCP-

SO effectively and efficiently perform its responsibilities in time
and form in accordance with the WESM Rules;

▪ Assess if the NGCP-SO practices and work processes ensure the

necessary transparency, independence, predictability, and non-
discrimination, and are in compliance with the WESM Rules and
best international practices; and

▪ Propose recommendations to improve the procedures to collect

and process the information and controls of quality and security
of data for the WESM.

2. Review and assess the resilience of the interfaces and exchange of

information among the market operator, System Operator (SO),
and other trading participants.

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 3. Review and assess the sufficiency of the infrastructure used by the
SO in carrying out its functions and responsibilities under the
Governing Rules and Regulations;

4. Review and assess the accuracy, reliability and availability of data

or information gathered from power plants, substations, and other
power utilities.

5. Capacity building of ERC through trainings, technology transfer and

development or formulation of manuals and process flows on
process and procedure review.

C. SCOPE OF WORK

The Review shall cover NGCP’s operations for Luzon, Visayas and
Mindanao. The review shall cover procedures, processes and systems
being employed by NGCP through its organizational units but not
limited to the following:

▪ Network Operations Division (NOD);

▪ Power Network Planning Division (PNPD);

▪ Grid Security Management Division (GSMD);

▪ Network Protection Division (NPD);

▪ SCADA/EMS Division;

▪ Telecom Division; and

▪ Technical Service Division.

It is worthy to note that this review is the second part of three

(3) phases for the conduct of NGCP audit in its compliance,
system process, procedure and information technology review
including communications.

The NGCP’s compliance to the standards prescribed under the PGC

and other rules and regulations is covered by another project entitled
“Consulting Services for the Compliance Review of the National Grid
Corporation of the Philippines (NGCP)” (for reference termed as Phase
1).

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 On the other hand, the audit to determine the security of the national
transmission grid’s infrastructure amidst physical and virtual threats,
assess vulnerability risks, review compliance to existing standards,
regulations, industry best practices and formulate action plans to
ensure grid security aimed at protecting public interest and
national security will be covered by a separate project
entitled “Consulting Services for the System Security Audit of the
National Grid Corporation of the Philippines (NGCP)” (for reference
termed as Phase 3).

Further, the Review shall cover the relevant interfaces of the SO with
the market operator and its customers which include generators,
private distribution utilities, electric cooperatives, government-owned
utilities, economic zones, industries, and directly connected
companies.

In relation to the WESM operations, the Technical Consultant shall

review the sufficiency of the information, processes, systems, and
procedures of the SO as required under the Governing Rules and
Regulations and validates the correctness of market information and
results being generated from data acquired by the market operator
from the SO. Table 1 lists the vital information and inputs provided by
SO to the market operator.

Table 1: Data Coming from NGCP

Market Operator
Input Output
Processes
Load forecasts (RTD,
Load Forecasting
Energy Management DAP, WAP)
System (EMS) Snapshot Scheduling and DAP, RTD and RTX
Pricing schedules
Outage Schedules
Contingency List WAP, DAP, RTD and
Scheduling and
Transmission Limits and RTX schedules and
Pricing
Security Limits Prices
Reserve Requirements
WAP, DAP, RTD and
Transmission Network Scheduling and
RTX Schedules and
Model Pricing
Prices
Updating of the MNM used in
System Notices on
Market Network dispatch and
Network Configuration
Model (MNM) scheduling

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 Daily Operations Report Market assessment
(DOR)/Daily Operations Market Monitoring reports; market
Highlights monitoring indices
Real-Time System
Condition or System Information Market operator
Operator Advisory on dissemination to Advisory to TPs and
Transmission System Market participants other stakeholders
Conditions
Must-Run Unit/Must- Market operator
Stop Unit and Dispatch Settlement Data report and
Deviation Report Settlement Amounts
Day Ahead Ancillary
Schedule (DAAS)/ Non-compliance
Market Monitoring
Dispatch Discrepancy Report
Monitoring
Market Monitoring Report Over-riding
Market Monitoring
(Daily) Constraints Report

The Consultant is expected to accomplish the following tasks, among

others on Process and Procedure Review:

a) Assess if single outage (N-1) contingency criterion is being always

satisfied. If not, look into the measures being undertaken to meet
this PGC requirement;

b) Assess the measures being implemented to address credible

multiple outage contingency events, such as the application of
Special Protection Systems;

c) Assess SO's process in designating Must-Run and Must-Stop

Units;

d) Assess the adequacy of the Automatic/Manual Load Dropping

procedures and execution;

e) Assess the adequacy of the System Operator's process in ensuring

the reliability of the grid;

f) Assess the interfaces procedures, processes or system among the

market operator and the System Operator;

g) Validate if network congestion problems as identified by the ERC

and the market operator are being properly addressed by
transmission upgrade and expansion projects;

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 h) Assess if NGCP has internal operating guidelines and are in
accordance with internationally accepted standards; and

i) Confirm if documented internal operating guidelines, standards,

procedures, and work instructions are being followed. Validate if
these documents are aligned or harmonized with the PGC, WESM
Rules and Manuals.

D. RESPONSIBILITIES OF THE CONSULTANT

1. Close Cooperation with the ERC

Close coordination with the ERC Commission En Banc and

officials and regular liaison with ERC staff will therefore be an
integral part of the scope of work. The Consultant will also be
required to prepare monthly progress reports, attend monthly
progress monitoring meetings (this can be done via conference
call) and, from time to time, assist the ROS team to present
progress reports directly to the Commission (the actual
presentations will generally be made by ROS team members).

Any significant issue arising from the work should be immediately

brought to the attention of the ERC, with appropriate
recommended action. This requires presentations to the
Commission.

Meetings with ERC and presentations to Commission will adhere

to the ERC schedules and procedures. Only in exceptional cases
will requests for special Commission meetings be considered.

Close coordination and communication of the Consultant with the

ERC throughout the project is mandatory. The Consultant must,
at the minimum, conduct monthly meetings with ERC.

The Commission and the ERC shall have full access to any
information, data, documents or working records acquired or used
by the Consultant during the project.

The Commission or any of its authorized representatives may

participate in project meetings and join the Consultant during
onsite inspections or meetings with the NGCP. Communication
with the NGCP shall, always be coursed through the ERC.

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 2. Knowledge Transfer

The project requires that knowledge about the process and

procedure review (either or for both the ERC and the NGCP) be
transferred either through workshop or training using either
actual presence or webinar to the ERC. All costs related to the
conduct of physical or webinar workshop or training shall be for
the account of the Consultant.
The Consultant shall submit knowledge transfer program/plan to
the ERC. In the event that the ERC may be required to travel to the
office of the Consultant, the full transport, accommodation and
subsistence costs associated therewith are to be included in this
proposal.
The training/workshop may also involve regulated entities to
ensure their sufficient compliance to the technical requirements of
the ERC in accordance to its framework. However, any related cost
on the aforesaid activities shall be on the account of the regulated
entities.
Equipment used during the audit process may be transferred
through donation to the ERC.

3. Security

It should be noted that some of the on–site fieldworks are likely to

be carried out in areas where additional security arrangements
may be required. While NGCP will provide personnel to
accompany the Consultant(s) during these Process and Procedure
Reviews, any additional security arrangements will be to the
account of the Consultant. (Note that the ERC does not accept any
responsibility for the security or well-being of the Consultant(s)
during or after the execution of this project).

Any travel requirements related to COVID-safety protocols of the

consultants during the fieldworks and at least 3-4 ERC personnel
who will be joining the fieldworks will be to the account of the
Consultant.

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 2. Data Gathering and Ocular Inspection

The Consultant shall conduct actual and on-site gathering of

relevant data; and ensure data consistency and interpretation of
the results.

For activities involving actual physical presence, the ERC may

consider alternative means in consideration of the current state of
health emergency and adherence to the prescribed health
protocols.

3. Confidentiality

The Consultant shall not release any information or data obtained

during this project to any person without written consent from the
ERC.

4. Intellectual Property

All intellectual property, including studies, reports or other

materials, models, spreadsheets or otherwise, prepared,
developed or produced by the Consultant shall belong to and
remain the property of the ERC. The Consultant should not retain
a copy of such documents and software, for any purpose.

E. RESPONSIBILITIES OF ERC

The ERC shall facilitate the subject Process and Procedure Review by
providing the following:

a. Assistance in coordinating with the NGCP in gathering relevant

data, conducting on-site field work verification/inspection of
NGCP transmission assets, and soliciting comments and inputs
related to the system operations process and procedure review;

b. Provide technical and secretariat support to activities involving

the subject process and procedure review such as but not limited
to, coordinating meetings and field works;

c. Monitor stipulated timelines; and

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 d. Determine the acceptability of the deliverables and whenever
appropriate, shall be the approving authority for all activities
related to this project.

F. TIMELINES/DELIVERABLES

The project shall be completed within one hundred eighty (180) days,
commencing from the date of receipt of the NTP by the Consultant.

An Inception Report shall be submitted by the Consultant within

fourteen (14) days and final outputs shall be submitted at the end of
one hundred eighty (180) days. The Consultant shall be released from
its commitment to the contract not more than fourteen (14) days upon
acceptance of the final outputs by ERC.

The Consultant shall adhere to the following timelines:

Outputs/Deliverables Timeline
Conduct Kick-off meeting
Within five (5) days from the date of
receipt of the NTP
Output: Minutes of the Meeting
Delivery of Work Plan (Inception Report)
Within fourteen (14) days from the date of
receipt of the NTP
Output: Inception Report
Conduct of Clarificatory Meetings
Within sixty (60) days from the date of the
receipt of the NTP
Output: Minutes of the Meeting
Comments/Recommendations on the
Clarificatory meetings Within ninety (90) days from the date of
the receipt of the NTP
Output: Issues Paper/Report
On-site inspection
Within one hundred twenty (120) days
from the date of the receipt of the NTP
Output: Field Inspection Report
Submission of Initial/Draft Report on the
system operations process and procedure
review and inspection activities
Within one hundred fifty (150) days from
assessments/observations
the date of the receipt of the NTP
Output: Report on Observations and
Findings
Submission of Final Report for the system
operations process and procedure review Within one hundred eighty (180) days
from the date of the receipt of the NTP
Output: Final Report

The Consultant is expected to provide the following:

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 1. Reports

a. An inception report that reviews the relevant information to be

provided by the NGCP on its operations and identifies the
issues to be assessed and discusses the approach that the
Expert proposes to use to complete the system operations
process and procedure review in accordance with the
Commission’s requirements. The report should identify any
required information that should be provided in the
submission and including a schedule of information that the
Expert considers will be needed to complete the review.

The inception report is to be presented to the ERC prior to the

first clarificatory meeting.

b. Submission of monthly progress report outlining work

undertaken and discussing any problems or issues
encountered including any identified inconsistencies or non-
compliance of the systems and procedures under the relevant
rules and guidelines.

The progress report shall provide highlights of document

reviews and interviews of relevant NGCP personnel and other
parties. An inventory of outstanding issues, recommendations
and status of all identified issues shall also be provided

2. Presentation and Meetings

a. Preparation and presentation to the ERC of a detailed report

(initial/draft report) presenting the findings of the Expert
regarding its system operations process and procedure review
of NGCP in Luzon, Visayas, Mindnao grids. The reports shall
provide, among others, the following:

▪ Review of NGCP’s system operations process and

procedure to the rules and guidelines which are covered in
the scope;

▪ Process and procedure review methodology;

▪ Main findings; and

▪ Recommendations, such as possible improvements to the

relevant rules and guidelines, operating procedures,
control objectives, specific controls, practices, and

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 processes, to address non-compliance and other issues
such as quality control and best practices, among others.

b. Attendance at clarificatory meetings.

3. Documentation

a. Documentation of all the functions performed in reviewing,

examining and evaluating of SO function, systems, data,
processes, infrastructure, interface, as mandated by the
Governing Rules and Regulations and guided by the Objectives
of the Process and Procedure Review and of the reasons for
coming up with the recommendations;

b. Detailed documentation of the operations review process

including interfaces with stakeholders shall be maintained;

c. Best Practice documentation, particularly:

▪ Corrective measures and obtain response and action plans

to address identified issues of SO; and

▪ Enhancements to achieve better international practices

where opportunities for improvements in processes and
procedures are identified during review.

d. Inconsistencies in the Governing Rules and Regulations and in

the conduct of SO and corrective measures to harmonize
implementation of the Governing Rules and Regulations.

Electronic copies of all relevant documents gathered in this

project, including the detailed system operations process and
procedure review documentation containing the Consultant’s
analysis, findings, and recommendation, must be
contained/stored on a USB flash drives (in MS Word or MS
Excel format) and must be delivered to the ERC, or submitted
via email.

G. QUALIFICATION REQUIREMENTS

1. Qualification Requirement. The audit shall be undertaken by

a reputable Consultant who may be a person or entity engaged in
consulting services. The Firm shall mobilize key personnel, i.e., a
principal/lead consultant and at least five (5) experts. The

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 Consultant, as well as the principal/lead consultant and experts,
must meet the following qualifications:

QUALIFICATION MINIMUM REQUIREMENTS

▪ Knowledgeable in fields of
accountancy, economics, finance,
law, engineering or other related
disciplines to undertake the tasks
required for this consultancy
services.

▪ It is strongly encouraged that the

Consultants be composed of local
(Filipino) and foreign consultants in ▪ Expertise in the field of economics,
the team, with the view to support finance, accountancy, law,
the project at hand, and as part of an engineering or other related
action to establish local sources of disciplines.
experts that can become involved
with regulatory activities in the ▪ Must have been engaged in similar
future. or relevant professional and
consulting services.
▪ Involvement in similar and/or
relevant consulting or professional ▪ Must be highly competent in a
services of complexity and technical similar nature as this proposed
specialty comparable to the job consultancy service or process and
under consideration. procedure review, in the Philippines
Quality of the
or of similar jurisdiction.
Consultancy
▪ Recognized competence in a project
Firm
of similar nature or review as this ▪ The Team Leader shall have project
proposed consultancy service, in the management skills and strong
Philippines or of other jurisdiction. background in a similar nature as
this proposed consultancy service or
▪ Must have been involve in a similar process and procedure review.
nature or review as this proposed
consultancy service, in the ▪ The members of the Process and
Philippines or in other jurisdictions; Procedure Review Team shall have
knowledgeable with the different been engaged in a similar nature as
methodology used in the process and this proposed consultancy service or
procedure review of transmission process and procedure review.
utility or similar utility.

▪ The Team Leader and at least one (1)

Key Personnel must have previous
exposure to regulatory practices of
similar nature as this proposed
consultancy service or process and
procedure review for the last ten (10)
years; and at least five (5) years of
experience in undertaking projects
of similar nature as this proposed

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 consultancy service or process and
procedure review.

▪ Consultants should not have current

engagement with the NGCP.

Education
Lead Consultant: At least an MA/MS
Educational attainment in law, degree holder, PhD will be an
accounting, economics, finance, advantage.
engineering and/or related fields, with
strong background in regulatory Experts: At Least BS/BA degree
practices. holder, MS/MA an advantage.

Training Lead Consultant: Must have at least

forty (40) hours training on similar
nature to this proposed consultancy
service, for transmission utility and
other similar and/or relevant trainings

Experts: At least 24 hours training on

similar nature to this proposed
consultancy service, for transmission
utility and other similar and/or
relevant trainings
Professional Experience
Lead Consultant: At least five (5)
The Consultants must have 5 years of years of experience on projects of
extensive background on projects of similar nature as this proposed
similar nature as this proposed consultancy services, for transmission
consultancy services or actual exposure utility/other similar entities in the
to the best practices of other Philippines.
jurisdictions;
Experts: At least two (2) years of
The Consultants must have extensive experience on projects of similar
knowledge with the Republic Act 9136 nature as this proposed consultancy
or the Electric Power Industry Reform services, for transmission
Act (EPIRA) and its Implementing utility/other similar entities in the
Rules and Regulations (IRR), and of Philippines.
the compliances of a transmission
utility;
Lead Consultant: Must have been
involved in similar or related work
engagement with at least one (1)
Involvement in similar and/or related
Certificate of Satisfactory Service from
consulting or professional services of
completed similar or related projects.
size, complexity and technical specialty
comparable to the job under
Experts: At least one (1) similar or
consideration
related work engagement.

The shortlisting and selection of qualified candidates is rated

based on the attached criteria in ANNEX A and B, respectively.

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 2. Criteria for Selection. The consultant shall be selected
using the Quality Based Selection Criteria/Evaluation
(QBE) procedure as prescribed under Section 33 of the 2016
Revised Implementing Rules and Regulations (IRR) of Republic
Act (RA) No. 9184 and based on the following criteria:

a. Quality of personnel to be assigned to the project which

covers suitability of key staff to perform the duties of the particular
assignments and general qualifications and competence including
education and training of the key staff;

b. Experience and capability of the consultant which include

records of previous engagement and quality of performance in
similar and in other projects; relationship with previous and
current clients; and, overall work commitments, geographical
distribution of current/impending projects and attention to be
given by the consultant. The experience of the consultant to the
project shall consider both the overall experiences of the firm and
the individual experiences of the principal and key staff including
the times when employed by other consultants; and

c. Plan of approach and methodology with emphasis on the

clarity, feasibility, innovativeness and comprehensiveness of the
plan approach, and the quality of interpretation of project
problems, risks, and suggested solutions.

Experience Factors: 30%

Firm Factors: 30%
Technical Factors: 40%

H. MODE OF PROCUREMENT

The procurement of the consulting services shall be undertaken though

competitive bidding pursuant to R.A. No. 9184 and its 2016 Revised
IRR.

I. FUND SOURCE AND APPROVED BUDGET FOR THE

CONTRACT (ABC)

1. Fund for this engagement shall be sourced from the General

Appropriations Act (GAA) for the fiscal year 2021 of the ERC.

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 2. The ABC for the project is FIFTEEN MILLION PESOS
(PhP15,000,000.00), inclusive of all applicable government
taxes and charges, professional fees, and other incidental and
administrative costs, which shall be paid on an output basis (e.g.,
reports, consultations, materials, etc.).

3. Note that this consulting contract shall be a fixed price contract.

Any extension of contract time shall not involve any additional
cost to the ERC except due to the fault of the latter.

4. All reports, materials, databases, references, etc. acquired through

the conduct of the project shall be turned over to ERC at the
conclusion of the undertaking and shall not be released to any
person without prior written consent from ERC.

J. PAYMENT SCHEME/SCHEDULE

1. An amount of FIFTEEN MILLION PESOS

(PhP15,000,000.00) shall be allocated for the cost of
conducting the project. This shall be in accordance with the
following delivery schedule and subject to the usual government
accounting and auditing requirements:

DELIVERABLES Percent Allocation

Upon submission and acceptance of Final
15%
Inception Report/ Work Plan
Upon conduct of Clarificatory Meetings 15%
Upon submission of comments /
recommendations after the conduct of
Clarificatory Meetings on the system 10%
operations process and procedure Review
Process
Upon conduct of on-site inspection and
submission of field inspection report 20%
Upon Submission and Acceptance of
Initial/Draft Report on the System Operations 20%
Process and Procedure Review
Upon Submission and Acceptance of Final
Report for the System Operations Process and 20%
Procedure Review

2. Since all the above payments shall be subject to the usual

government accounting and auditing requirements, the Consultant
is expected to be familiar with the Government Accounting and
Auditing Manual (GAAM).

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 3. The Consultants shall have the flexibility to allocate the budgets for
expenditures made in the performance of the Services but shall not
exceed the ABC.

K. LIQUIDATED DAMAGES

1. Where the Contractor refuses or fails to satisfactorily complete the

work within the specified contract time, plus any extension time
duly granted and is hereby in default under the contract, the
Contractor shall pay ERC for liquidated damages, and not by way of
penalty, an amount, as provided in the conditions of the contract,
equal to one tenth (1/10) of one percent (1%) of the cost of the
unperformed portion for every day of delay. Once the cumulative
amount of liquidated damages reaches ten percent (10%) of the
amount of the contract, the ERC may rescind or terminate the
contract, without prejudice to other courses of action and remedies
available under the circumstances such as but not limited to
forfeiture of performance security and/or blacklisting of the
Contractor.

2. For entitlement to such liquidated damages, ERC need not prove

the damages actually incurred. Said damages in any amount shall
be deducted from any money due or which may become due the
Contractor under the Contract and/or collect such liquidated
damages from the retention money or other securities posted by the
Consultant at the ERC’s convenience.

L. RESERVATION CLAUSE

The Energy Regulatory Commission (ERC) reserves the right to reject

any end all bids, declare a failure of bidding or not award the contract
at any time prior to contract award in accordance with Section 41 of
R.A. 9184 and its IRR, without thereby incurring any liability to the
affected bidder or bidders.

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 ANNEX A
CRITERIA FOR SHORTLISTING OF PROSPECTIVE BIDDERS
FOR THE PROCESS AND PROCEDURE REVIEW OF THE
NGCP

CRITERIA/PARTICULARS POINTS
I. Applicable Experience of the Firm 50
Prior involvement in reports or studies
related to asset valuation
II. Qualification of Officers, Key/Organic 30
Personnel who may be assigned for
the study
Education, training and years of
professional experience
III. Current Workload relative to job 20
capacity
GRAND TOTAL 100
Hurdle Rate 70

Note: only the top five (5) ranked consultancy firms with at least 70% rating based
on the short-listing criteria will be invited to submit the Technical and Financial Proposals.

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 Eligibility Criteria
Consultancy Services for the Process and Procedure Review of the National Grid Corporation of the Philippines
(NGCP)

SHORTLISTING CRITERIA FACTORS CONSIDERED:

Points Multiplier
I. APPLICABLE EXPERIENCE OF CONSULTANT 50%
A) OVERALL EXPERIENCE OF THE FIRM/CONSULTANCY 10%

1. Knowledge of business processes and procedure audit or review of utilities

Yes 100 10%

No 0 10%
B) INDIVIDUAL EXPERIENCE OF THE PRINCIPAL AND KEY STAFF 20%
1. Been involved in the projects on agreed upon procedures engagements, business process review and
preparation of manuals, rules and guidelines
Yes 100 10%
No 0 10%
2) Knowledgeable with the different governing rules and guidelines on NGCP affecting the System
Operator and WESM
Yes 100 10%
No 0 10%
Number of times the consultants/firm been involved in the agreed upon procedure
C) 20%
engagements/business process review and preparetion of guidelines , rules and manuals
5 or more times 100 20%
1- 4 times 50 20%

II. QUALIFICATION OF PERSONNEL TO BE ASSIGNED TO THE JOB 30%

Knowledge in fields of accountancy, economics, finance, law, engineering or other related disciplines to
A) 10%
undetake the tasks

College Graduate 50 10%

with Masteral 75 10%
with Ph Degrees 100 10%
Lead Expert and Key staff must be involved in the projects involving procedural and process review and
drafting of guidelines, rules and manuals. Previous clients satisfactory acceptance of consultancy
B) 10%
services rendered by the firm and its experts (must present at least one Certificate of Satisfactory
Services from completed similar or related projects)
Yes 100 10%
No 0 10%
C) Number of years with the firm/consultancy service 10%
5 year or more 100 10%
1 - 4 years 50 10%
III. Current workload relative to job capacity 20%
1. Number of all on-going projects (awarded) where listed members of the project are currently
50 20%
involved
2. Number of working hours involved on current on-going projects of the consultant/firm 50 20%

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ANNEX B: TECHNICAL PROPOSAL

Consultancy Services for the Process and Procedure Review of the National Grid Corporation of the Philippines (NGCP)

TECHNICAL PROPOSAL CRITERIA FACTORS CONSIDERED:

Points Multiplier
I. Quality of Consultancy Firm/Consultant/s 30%
A) Education and field of expertise of Principal/Key staff - 10%
Knowledge in fields of accountancy, economics, finance, law, engineering or other related disciplines, with strong
background in procurement process
College Graduate 50 10%
with Masteral 75 10%
with Ph Degrees 100 10%
B) Work Experience of Principal/Key Staff - 10%
6-10 years 100 10%
1-5 years 50 10%

Exposure in electricity industry particularly on the regulatory reset of Electricity Distrbution utilities under the
C)
Performance Based Regulation - 10%
Yes 100 10%
No 0 10%

II. Experience & Capability of Firm/Consultants 30%

Records of previous engagement and quality of performance in similar projects (attached copy of proof of
A)
engagement)

For Principal /Team Leader

3 years or more 100 10%
1-2 years 50 10%
For other Key Staff
1-5 years 50 10%
none 0 10%
Must have trainings on the different rules and regulations on WESM, OATS, Market and Systems Operation of
B)
NGCP
Yes 100 5%
No 0 5%

C) Must have trainings on the different procurement process or other similar relevant trainings

Lead Consultant - at least 24 hours training 100 5%

0 5%
Experts at least 8 hours 100 5%
0 5%
III. Plan of Approach & Methodology 40%
A) Approach and Methodology -
1. Detailed Work plan and schedule 30 40%
2. Accessibility of Principal/key personnel to the project 10 40%
3. Qualification of personnel assigned
Exposure of Key personnel to the procurement process of electricity distribution utilities or of similar
Experreiecne : >5 years experience 30 40%
<5 years experience 15 40%
4. Work Load assignment
Well defined responsibility per member 5 40%
Well defiend delivery schedules 5 40%
5. Organizational Chart 5 40%

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