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GCG MEMORANDUM CIRCULAR NO.2013-02

SUBJECT : PERFORMANCE EVALUATiON SYSTEM FOR THE GOCC SECTOR DATE
: 29 APR:L2013

BAcKGRouNp. "GOCC Governance Act of 2011" lR.A. No. 10149) recognizes GOCCs as significant tools for pursuing inclusive and sustainable economic groMh and development in activities where:1

1.1. The private sector is unwilling or unable to adequately provide

a vital good or service:

1.2. Market intervention is necessary to protect the disadvantaged,

marginalized or underprivileged sectors of society; or

1.3. There will be use of certain resources that the Government is required to maintain for the public's reasonable use, and which

cannot be relinquished to the private sector, pursuant to the Public Trust Doctine;

State's ownership rights through the institutionalization of

2

Towards this end, R.A. No. 10149 mandates GCG to actively exercise the a Performance Evaluation System (PES).

PuRposE. - The PES shall provide the framework for setting the organizational targets of a GOCC. The achievement of such targets shall serve as basis for the following:

(a)
(b)

Determining the grant of Performance-Based lncentives;

component

of the criteria for determining whether Appointive

merged,
.. "3

Directors are eligible for reappointment;2 and

(c) "Ascertain whether such GOCC should be reorganized,

streamlined, abolished or privatized.

3.
4.

PERFoRMANcE AcREEMENTS. - Performance Agreements shall be entered into between a GOCC, as represented by its Governing Board, and the State, as represented by the GCG.

CHEcKLtsr oF DoCUMENTS To BE SuBMtrrEp ANp GutpELtNES. _

4.1

Proposed Petformance Agreement. - The Gocc shail use the attached template Performance Agreement, which should be duly signed by the
GovERN NG THE GOCC SECTOR
ise

l See SECTiON 3,ADM!NISTRATiVE ORDER No 59,s 1988:ART 4,CCG MC No 2012-07,othel

known as the

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