PH blacklists 3 firms for unfulfilled NIA contracts

Published February 19, 2021, 5:00 AM

by Madelaine B. Miraflor

Three companies were officially blacklisted from participating in any government-funded projects in the Philippines for failure to deliver their contractual obligations with the National Irrigation Administration (NIA).

A NIA statement identified the three project contractors, namely — the consortium of ITP Construction, Inc. and Guangxi Hydroelectric Construction Bureau Co., Ltd., MAC Builders, and Premium Megastructures, Inc.

National Irrigation Administration (MANILA BULLETIN)

Subsequently, aggregate performance security of the contractors amounting to P2.06billion will also be forfeited.

NIA said this is pursuant to Section 69 (Imposition of Administrative Penalties) of the Republic Act (RA) No. 9184 (Government Procurement Reform Act) and upon the findings and recommendations of the Contract Termination Review Committee (CTRC) in its Resolution of Termination.

“The blacklisting of the three contractors was made in penalty to their failure to fully and faithfully comply with contractual obligations without valid cause or non-compliance to any written lawful instruction of the procuring entity or its representative(s) pursuant to the implementation of the contract,” NIA said.

Other violations under Annex I of the Revised Implementing Rules and Regulations (IRR) of RA 9184 include the absence of minimum essential equipment listed on the Bid.

The said equipment is necessary to execute the contract works in accordance with the approved work plan and equipment deployment schedule as required for the project, NIA said. 

The consortium of ITP and Guangxi Construction, with principal address at 10 Dao Street, Project 3, Quezon City, is the project contractor of P5.86 billion Balog-Balog Storage Dam and its appurtenant structures under the Balog-Balog Multipurpose Project – Phase II (BBMP-II) located in Barangay Maamot, San Jose, Tarlac.

The contractor is suspended and disqualified from participating in all government procurement for the period of one year, starting January 28, 2021 until January 27, 2022.  

Moreover, NIA forfeited the Performance Security of the contractor amounting to P1.76 billion. 

Meanwhile, MAC Builders, with principal address at Purok 8, Barangay Linao, Ormoc City, Leyte, is the project contractor of Malinao Dam Improvement Project located at Sitio Malinao, Barangay Poblacion, Pilar, Bohol.

The project contract is amounting to P730.945 million.

This company has been barred  from participating in all government procurement for the period of one year, starting January 28, 2021 until January 27, 2022.  

In addition, NIA imposed a sanction to forfeit the Performance Security of MAC Builders in the amount of P219.28 million. 

Premium Megastructures, on the other hand, is the project contractor of P273.508-million Bonot-Bonot Earthfill Dam and its appurtenant structures located in the municipality of Buenavista Bohol.

The company, located at Purok 8, Barangay Linao, Ormoc City, Leyte, is suspended/disqualified from participating in all government procurement for the period of one year, starting January 28, 2021 until January 27, 2022.  

Likewise, the Performance Security of the contractor in the amount of P82.05 million has been forfeited.

The blacklisting of these firms came more than a year after Commission on Audit (COA) sought the termination of contracts and forfeiture of contractor’s performance bonds for some of NIA’s irrigation projects, including the aforementioned Balog-Balog project. 

 
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