Government offices required to buy local

File photo
File photo

CEBU City has passed an ordinance requiring government offices to allot at least 10 percent of their procurement of goods and services to those produced or provided in Cebu City.

During its regular session on Wednesday, July 26, 2023, the Cebu City Council approved on third and final reading the ordinance entitled “An ordinance prescribing for the allocation of at least 10 percent of the total procurement value of the City Government of Cebu NGAs, RLAs and other government agencies holding offices in the city, for locally produced goods and services and their mandatory promotion thereof.”

“It’s about time that we finally give priority to locally produced goods or services in the City of Cebu for our local market,” said Vice Mayor Raymond Alvin Garcia, author of the ordinance.

Garcia explained that under the ordinance, when it comes to the purchase of goods and services by the City Government, “consideration must first be made, whether or not there are local counterparts of these products or services deemed to be purchased.”

The major provisions of the ordinance:

1. In every purchase of the goods and services by the Cebu City Government, National Government Agencies (NGAs), Regular Line Agencies (RLAs) and other government agencies holding office in the City, consideration must first be made on whether or not there are local counterparts of these products and services deemed to be purchased.

2. At least 80 percent of the tokens to be given in all activities of the Cebu City Government and other government agencies holding office in Cebu City must be locally produced goods and services with due regard to the provisions of the Government Procurement Reform Act.

3. At least 80 percent of the goods displayed in City Government-administered Pasalubong Centers must be locally produced.

4. At least 10 percent of the total procurement value of goods and services supplied to the Cebu City Government NGAs, RLAs and other government agencies holding office in Cebu City annually must be solely devoted to locally produced goods and services.

“In other words, the City needs 10 percent of attainment for purchasing from registered businesses in Cebu City,” Garcia explained.

“I think we have also exceeded this since most of our suppliers are registered business owners in the city of Cebu,” Garcia said.

Councilor Nestor Archival, however, asked Garcia about the number of developers in the city of Cebu.

“I understand the contractors that we have. We have a lot of contractors which are not from Cebu like the one we are contracting for CCMC (Cebu City Medical Center),” Archival said.

Garcia replied by giving this example: “At least 10 percent of the total procurement value. Let’s just say a P10 billion budget, so we only need (only) P1 billion.”

“As long as we can meet the 10 percent, that’s already okay. We can engage actually those that are not locally produced services or goods,” Garcia said.

A registry of micro, small and medium enterprises (MSMEs), or those having capitalization of not more than P100 million, will be made to serve as the basis for the procurement of locally produced goods and services.

The MSMEs must be 100 percent owned by Filipino citizens, or at least 60 percent owned by a Filipino citizen living in the Philippines for juridical entities. (CNU interns Claudine D. Flores with CTL)

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