Republic of the Philippines

PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT

OFFICE ORDER
No. 44 [RTA-19-01-2016]
19 January 2016

GUIDELINES FOR THE PRIVATIZATION OF

SURRENDERED AND RECOVERED ASSETS

Pursuant to Executive Order No. 323, an Inter-Agency Privatization Council

(PrC) and Privatization and Management Office (PMO) under the Department of
Finance is constituted for the continuing privatization of Government Asset and
Corporations. It also designated the PCGG as member of the Privatization Council and
its Technical Committee.
To promote an orderly, coordinated, transparent and efficient privatization of
surrendered and recovered assets, the PCGG hereby set the following privatization
policy guidelines and procedures, as follows:
1. The Asset Management Department (AMD) shall prepare an annual
Privatization Plan upon review and evaluation of legal issues involving the
asset and indicating the manner and mode of disposition, recommended
floor price and timeline of bidding activities. It is understood that the
proposed floor price is in accordance with the Privatization Council (PrC)
rules on validity of appraisals/valuation.

2. The Commissioner-in-Charge (C-I-C) for AMD shall seek Commissions

approval of the proposed Privatization Plan.

3. If approved, a Commission Resolution is issued approving the floor

price(s) and manner of disposition.

4. The C-I-C for AMD shall secure PrCs approval, both in the Technical
Committee and the Council Proper.

5. The Commission on Audit (COA) shall be notified on the proposed

sale/disposition of assets and shall be provided with certificates of
ownership, TCTs, appraisal reports and other pertinent documents.

6. Upon approval by the PrC, the Invitation to Bid shall be published in three
(3) newspapers of general circulation for three (3) consecutive days. The
Invitation to Bid may also be published in local newspaper in case the
property is located outside of Metro Manila.

7. Bid Documents consisting of Bidding Rules/Terms of Reference and Bid

Forms shall be issued upon payment of Bid Document Fees, the amount of
which is in accordance with R.A. 9184, otherwise known as Government
Procurement Law.

8. The COA shall be formally notified of the bidding schedule and furnished
copies of the bidding documents.

9. Bidders shall be allowed to conduct ocular inspection or due diligence

study of the property for sale.
 10. Upon submission of pre-qualification documents consisting of
corporation/individual profile, GIS & SEC Registration, ITR, Audited
Financial Statements, the Bids and Awards Committee (BAC) conducts
evaluation of pre-qualification documents. PCGGs Legal Departments
clearance is also secured to determine if bidders have any pending civil
and or criminal case filed by PCGG.

11. Bidding Guidelines are discussed and clarifications are made during the
Pre-bid conference, which is conducted in the presence of bidders and
COA representative/s. Only pre-qualified bidders will be allowed to
participate in the actual bidding.

12. The BAC shall conduct a public bidding at least ten (10) days from the first
day of publication, which shall be conducted in the presence of bidders
and COA representative/s.

13. If at least two (2) qualified bidders submit offers at the specified date and
time, the bidding is declared successful.

14. Immediately after the bidding, the BAC submits its report and
recommendation to the Commission. The Commission acts on the BAC
recommendation during the En Banc meeting as scheduled immediately
following the submission of said report. If approved, the Commission
through the C-I-C for AMD shall formally endorse the proposed sale to the
PrC for approval.

15. Upon formal notification of PrCs approval, C-I-C for AMD issues a Notice
of Award to the winning bidder.

The Notice of Award: a) confirms the bidder of PrCs approval of the sale
and b) reiterates the provision in the Bidding Rules requiring the winning
bidder to pay the balance of the purchase price.

16. The AMD shall prepare the Closing Documents and shall schedule the
signing of the Closing Documents.

17. The winning bidder pays the balance of the total purchase price and AMD
shall transmit the same to Finance and Administrative Department.

18. The property is formally turned over to the buyer by AMD in the presence
of a representative from the Commission.
This Office Order shall take effect immediately and shall remain in full force and
effect unless revoked or superseded by another office order.