NFCC or Credit Line Certificate

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NFCC or Credit Line Certificate

Post by riddler on Sat Nov 21, 2009 2:32 pm

May i ask if after the Award of the Contract or during the Signing of Contract, do we still need to require the winning Bidder/s a Credit Line Certificate from the Bank after it already submitted an NFCC during Eligibility Check and Opening of Bid?

ganito kasi nakalagay sa ITB 31.4(e) Credit Line in accordance with ITB Clause 5.5, if applicable;

while under the ITB Clause "5.5 Unless otherwise provided in the BDS, the Bidder must submit a computation of its Net Financial Contracting Capacity (NFCC) or a Commitment from a Universal or Commercial bank to extend a credit line in its favor if awarded the contract for this project (CLC).
xxx xx xx ."

What if we opt not to provide in the BDS the submission of CLC by the winning bidder? Will the NFCC be enough?
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Re: NFCC or Credit Line Certificate

Post by RDV @ GP3i on Sun Nov 22, 2009 7:34 am

ruel wrote:May i ask if after the Award of the Contract or during the Signing of Contract, do we still need to require the winning Bidder/s a Credit Line Certificate from the Bank after it already submitted an NFCC during Eligibility Check and Opening of Bid?

ganito kasi nakalagay sa ITB 31.4(e) Credit Line in accordance with ITB Clause 5.5, if applicable;

while under the ITB Clause "5.5 Unless otherwise provided in the BDS, the Bidder must submit a computation of its Net Financial Contracting Capacity (NFCC) or a Commitment from a Universal or Commercial bank to extend a credit line in its favor if awarded the contract for this project (CLC).
xxx xx xx ."

What if we opt not to provide in the BDS the submission of CLC by the winning bidder? Will the NFCC be enough?

Ruel, as you very well know, a bidder has the option to submit as part of its Class A - Financial documents, for purposes of eligibility check, either an NFCC or a commitment to extend a credit line (CLC) from a universal or commercial ban .

If the bidder then submits a CLC, instead of an NFCC, and if awarded the contract, he has to replace that commitment to extend a credit line with an actual credit line certificate from the same bank. On the other hand, if a bidder submits as NFCC, that would be enough, meaning there is no longer a need to require the submission of a credit line commitment.

I hope I have clarified the issue. - RDV
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Re: NFCC or Credit Line Certificate

Post by riddler on Sun Nov 22, 2009 10:12 am

thank you very much RDV. Smile
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Re: NFCC or Credit Line Certificate

Post by matclem on Thu Sep 23, 2010 2:47 pm

Hi Sir:

I would like to inquire what if the bidder is computed an insufficient NFCC during the post-qualification. Can we still allowed to require the the bidder to provide a CLC or CDC, if ever the bid will be awarded to them? By the way, we only bidder in the project.
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Re: NFCC or Credit Line Certificate

Post by jcolas on Thu Sep 23, 2010 7:24 pm

d]]"Sir Matclem wrote:[/b]

I would like to inquire what if the bidder is computed an insufficient NFCC during the post-qualification. Can we still allowed to require the the bidder to provide a CLC or CDC, if ever the bid will be awarded to them? By the way, we only bidder in the project


If during the post-qualification of the Lowest Calculated Bidder and it has been found out that the bidder has submitted an NFCC which is less than the ABC, their is no other recourse for the BAC, but to disqualify the said bidder. The BAC shall immediately inform the bidder in writing and immediately initiate the post-qualification process on the bidder with the second Lowest Calculated bid notwithstanding any pending Motion for Reconsideration. (Section 34.5 & 34.6,, Rule X- Post Qualification)

You are not allowed to ask him to submit a CLC.
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Re: NFCC or Credit Line Certificate

Post by sunriser431 on Thu Sep 23, 2010 9:06 pm

matclem wrote:Hi Sir:

I would like to inquire what if the bidder is computed an insufficient NFCC during the post-qualification. Can we still allowed to require the the bidder to provide a CLC or CDC, if ever the bid will be awarded to them? By the way, we only bidder in the project.
Reminder CDC is no longer required in the revised IRR. Failure to comply with the requirement is ground for disqualification. bounce
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