The Philippine Energy Efficiency Alliance (PE2) said the New Government Procurement Act (NGPA) or Republic Act 12009 signed into law over the weekend will help push energy efficiency higher in government buildings and public infrastructures.
Some government buildings are notorious spendthrifts.
Alexander Ablaza, PE2 president, told reporters the NGPA intentionally included life-cycle cost processes in government procurement that will encourage competitively priced purchases and contracts of energy-efficient equipment and upgrades.
The life cycle cost modality recognizes all amounts associated with obtaining, owning and disposing of an investment that in this case involves government buildings, public street and outdoor lighting and other energy uses in public infrastructure such as water supply, treatment and distribution and sewage treatment.
Ablaza said the new law will allow procurement of technologies, solutions and services yielding the lowest life-cycle costs by selecting the offer delivering the optimal energy efficiency and overall quality.
PE2 said this was not possible under the predecessor government procurement law which anchored competitive bid selection only for the lowest initial capital cost.
“In many cases, the cost of energy, typically electricity consumption, is the most significant component of life-cycle cost, often outweighing the acquisition cost of the delivered and installed equipment,” Ablaza said.
“PE2 hopes that the implementing rules and regulations of RA 12009 will have specific provisions enabling the government procurement of energy service company performance contracts, which were not possible under the superseded procurement law, RA 9184,” Ablaza added.
The government claims that the NGPA will enhance public services and promote greater transparency as it streamlines procurement procedures for both national government agencies and local government units.
The new law introduces several reforms including the most economically advantageous and responsive bid that emphasizes not only the lowest price but other factors like quality, sustainability and social impact; most advantageous and responsive bids that allow procuring entities to consider factors beyond price, such as technical specifications, delivery time and post-award services; and sustainable procurement that encourages environmentally friendly practices that consider the lifecycle cost of goods and services, including energy efficiency, recyclability and environmental impact.
