Section 3Sec./Art. 3

Negotiated Contracts.- Pursuant to the above declared policy and in the public interest and whenever it is advantageous to the Government, the President may enter into negotiated contracts for the construction, repair, rehabilitation, improvement or maintenance of power plants, projects and facilities, subject to the following requirements:

a. In order to inform competitive contractors, the list of projects to be undertaken under this Act, together with their description, the budgetary estimates involved and other salient features, shall be published in a newspaper of general circulation thirty (30) days after the effectivity of this Act;

b. Upon perfection of the contract, the terms and conditions of the same, with the name and qualifications of the contractor, shall likewise be published in a newspaper of general circulation two (2) weeks before the signing of the contract;

c. The contracts shall be awarded only to contractors with:

i. proven competence and experience in similar projects;

ii. competent key personnel and sufficient and reliable equipment; and

iii. sound financial capacity; and

d. All the awarded projects shall be subject to existing government auditing rules and regulations governing negotiated contracts.