Invest In The Philippines

INVEST IN THE PHILIPPINES

Investment and Business Guide for Overseas Filipinos

OFFICE OF THE PRESIDENT

COMMISSION ON FILIPINOS OVERSEAS

Contents Title Page Foreword Introduction Part I. Investing in the Philippines 1. Investment in Government Securities 2. Establishment of Banks and Other Lending Institutions 3. Development of Tourist Resorts and Other Facilities 4. Purchases of Housing and Condominium Units 5. Development of Housing and Condominium Projects 6. Development of Memorial Parks 7. Investing in the Construction Industry 8. Agribusiness Entreprise 9. Export Marketing 10.Retail of Oil Products 11.Investing in Franchise 12.Establishment of Educational/ Vocational Training Institutes 13.DTI-Recommended Sectors by Region/ Province 14.Investing in other Services 15.Competitiveness Ranking of Philippine Cities in 2003 Part II. Doing Business in the Phippines 16.Securing Business and Other Permits 17.Registration of Partnerships and Corporations 18.Registration of Cooperatives 19.One-Stop Action Center for Investments 20.Omnibus Investment Code of 1987 21.Retail Trade Liberalization Act 22.Land Acquisition and Ownership 23.Conversion of Lands to Industrial and Commercial Use 24.Financing Small and Medium Enterprises 25.Salaries and Wages 26.Insurance and Pension Plans 27.About CFO Acknowledgement

Malacanan Palace Manila Foreword The Philippines today is no longer thougt of only in terms of its geographical boundaries. Our national interests go as far as most parts of the world because Filipinos live or work in over 160 countries and territories. Wenow have an overseas Filipino community that is significant in its size and outreach, as well as its economic importance to both the Philippines and the countries where they live. The Filipinos' physical separation from the Philippines has not weakened in the least the ties that bind them to out Motherland. They contribute in many important ways to stability at home and maintain an active interest in the progress of our country. In turn, our Government has taken steps to provide overseas Filipinos with fresh avenues to participate in, and help direct, the course of our nation. The recent passage of the Citizenship Retention and Reacquisition Act further strengthens the economic ties between Filipinos overseas and the Motherland, with the restoration of full economic rights of those who reacquire their Filipino citizenship. Through this compendium, “Invest in the Philippines”, the government provides Filipinos overseas with accurate and up to date information about business and investment opportunities as well as information essential for doing business in the country. It encourages Filipinos who have long been living in other countries to take a second look at our homeland and invest their capital invetments that can both grown andactively help in nation building. I thank all of those who contributed to the preparation of this compendium, and welcome Filipinos overseas who return to the Philippines where their economic rights and many opportunities for business and investment lie in store for them. (signed) GLORIA MACAPAGAL-ARROYO President of the Philippines Manila. September 2004.

INTRODUCTION

It is often said that almost one in every ten Filipinos lives or works overseas, an assertion that reflects the estimated number of 7.76 million overseas Filipinos as of December 2003. Overseas Filipinos will be found in more than 160 countries and territories around the world, with their number expected to continue increasing along with the growth of the Philippine population in years to come. The migration of our countrymen to other shores which started more than two and a half centuries ago, has more recently given rise to a transnational community of Filipinos who continue to maintain their ties with the Philippines. Filipinos overseas actively communicate, network and transact a host of relationships with those at home as part of their daily lives, manifesting a thriving community that exists among Filipinos across the world’s national boundaries. Other than their growing number, the familiar knowledge about overseas Filipinos is that usually associated with their foreign currency remittances, whether from permanent residents settled abroad, or from overseas workers. True, about $58 billion was remitted by overseas Filipinos to the Philippines in the ten-year period from 1994 to 2003, contributing in no small way to the country’s foreign exchange reserves, stability of the Philippine peso and improvement in living standards in many parts of the country. The Banko Sentral ng Pilipinas also estimates that $556 million in gifts or donations from overseas Filipinos came into the country over the same ten-year period. In addition, P1.37 billion in grants and donations to needy beneficiaries in 73 provinces and cities across the country were channeled through the LINKAPIL (Link for Philippine Development) program of the Commission on Filipinos Overseas from 1994 to 2003. It is also observed that the most significant source of remittances and grants in aid to the country over the years has been the United States, where most overseas Filipinos continue to reside. Other countries and territories with significant numbers of Filipino immigrants and permanent residents are Australia, Austria, Canada, Germany, Guam, Japan, New Zealand, Spain, and the United Kingdom. What would be a relatively unexplored area lies in mobilizing overseas Filipino capital for enterprises that could contribute to economic growth in the Philippines. Such investments also have the potential to contribute more directly to creating employment, dispersal of economic activity outside of Metropolitan Manila and accelerated development of agri-business enterprises, all of which are part of the 10 point program of the Government. The enactment of Republic Act 9225 otherwise known as the Citizenship Retention and Reacquisition Act in 2003, and the recent approval of its implementing guidelines has provided a new window of opportunity for many overseas Filipinos to become involved in economic activities in the Philippines. This is particularly so for former Filipino citizens who can now reacquire their Filipino citizenship and once again enjoy full economic rights in the country. Among these are Filipinos who left starting in the mid 1960s, became naturalized in their host country, and who have accumulated considerable savings and disposable income on account of their long permanent stay abroad. They can now become dual citizens, own unlimited real property, have the right to exploit natural resources in the Philippines, as well as engage in activities which are restricted to Filipino citizens such as operation of rural banks, educational institutions or mass media enterprises, among others.

It is in this light that the Commission on Filipinos Overseas has prepared this compendium, as an initial step to provide accurate information about investing and doing business in the Philippines, particularly to those reacquiring their Filipino citizenship. It is an initial step because it will necessarily undergo expansion, and updating and revision from time to time. It is also a first step because the Commission is exploring and pursuing other actions with financial institutions that would lead to the underwriting of an investment trust, tailored for individual overseas Filipino investors who are more inclined to opt for portfolio type investments. Meanwhile, overseas Filipinos with investible savings are invited to seriously look into prospects for investing, and perhaps also retiring back home in the Philippines. This compendium has initially put together information to help assess prospects for investing and doing business, particularly in small to medium scale enterprises. It provides leads about agencies or offices where more specific data could be obtained. It also gives examples, where available, of specific industries or enterprises with attractive potentials for the information of prospective investors. Just as importantly, the compendium provides information about the requirements for doing business, from the standpoint of a number of relevant government agencies including local government units. Like other similar material, the investment compendium does not presume to know all about the profitability or returns on an investment, nor does it identify or favor specific enterprises to invest in. This compendium is meant to serve as a source of general information to help in knowing about where investment and business potentials exist, leaving it for prospective investors to further examine prospects, before deciding where their capital should go into.

Manila, Philippines, August 2004

PART I INVESTING IN THE PHILIPPINES

1.

INVESTMENT IN GOVERNMENT BONDS AND SECURITIES The Philippine Government issues two kinds of government securities (GS): Treasury Bills and Treasury Bonds. Selling to the buying public originates from the Bureau of Treasury through a network of licensed dealers. Government securities are no longer certificated, they are known as “scripless”. GS discount and coupons are subject to 20% final income tax, which is withheld upon floatation of Treasury Bills, or upon payment of the coupon for Treasury Bonds. No other tax is imposed on the secondary market buyer. Government and government-owned and controlled corporations also offer shareholding to the public in the form of bonds or securities. Government securities are unconditional obligations of the State, and backed by its full taxing power, making them practically free from default. Treasury Bills and Treasury Bonds Treasury Bills are government securities which mature in less than a year. There are three tenors of Treasury Bills: (1) 91 day (2) 182 day and (3) 364 day Bills. The number of days is based on the universal practice around the world of ensuring that the bills mature on a business day. They are quoted by their yield rate or by price based on 100 points per unit. Treasury Bills which mature in less than 91 days are called Cash Management Bills. On the other hand, Treasury Bonds are government securities which mature beyond one year. At present, there are 5 maturities of bonds: (1) 2 year (2) 5 year (3) 7 year (4) 10 year and (5) 20 year Bonds. These are sold at their face value on origination and the yield is represented by the coupons, expressed as a percentage of the face value on a per annum basis, payable semi-annually. Securities Dealer Securities dealer is a financial institution organized usually as a corporation or partnership, whose principal business is to buy and sell securities, whether registered or exempt from registration, for the dealer's own account or for the account of client/s. A securities dealer is required to obtain a license from the Securities and Exchange Commission pursuant to the Revised Securities Act. Government Securities Eligible Dealer Government Securities Eligible Dealer (GSED) is a SEC-licensed securities dealer belonging to a service industry supervised by the Government which has met the (1) P100M unimpaired capital and surplus account; (2) the statutory rations prescribed for the industry; and (3) has the infrastructure for an electronic interface with the Automated Debt Auction Processing System (ADAPS) and the official Registry of Scripless Securities (ROSS) both of the Bureau of Treasury (BTr) using Bridge Information Systems (BIS), and acknowledged by the BTr as eligible to participate in the primary auction of government securities.

Kinds of bonds offered by government and government owned corporations (as of second quarter of 2004)

Government securities issued by the Land Bank of the Philippines Nature of investment

Investment Benefits

Government securities issued by Philippine National Bank

Government securities issued by Metrobank

Direct borrowings of the National Treasury issued through the Bangko Sentral ng Pilipinas to finance public expenditures High yielding Rates are at par or higher than other market instruments

Offers attractive yields for your money

Buyer earns from coupon interest semiannually

Government securities issued by China Bank

Government securities issued by Development Bank of the Philippines Through the Gintong Sikap Common Trust Fund, OFWs can now invest in GS

Gintong Sikap facilitates the investment of OFWs DBP invests the fund in high yielding long-term government securities for a 2-year holding period High yielding Liquiditypretermination is possible subject to minimal processing fee

Corporate Bonds issued by Sun Life Prosperity Funds Issued by a private entity for the purpose of corporate expansion Marketed as an investment opportunity to ensure individual financial security Backed by a leading international financial services organization preceded by its reputation for global expertise in the area of providing a diverse range of wealth accumulatio n and protection products and services

Risks

Taxation

Risk free; fully guaranteed by the government All GS are subject to 20% final withholding tax Withheld up front by the dealer and is thus charged in the net selling price of the investor

Risk free

Risk free

Risk free

Risk free

All GS are subject to 20% final withholding tax

Treasury Bills are computed on a discounted basis

All GS are subject to 20% final withholding tax

All GS are subject to 20% final withholding tax

Fixed Rate Treasury Notes/ Treasury Bonds computed on a yieldto-maturity basis

Risks are offset by high interest rates

Investme 1. Treasury nt Bills Choices • Interest may be discount ed in advance or paid upon maturity 2. Treasury Bonds • Interest payable semiannually or quarterly

1. Treasury Bills 2. Fixed Rate Treasury Notes

1.

Treasu ry Bills 2. Treasu ry Notes 3. Treasu ry Bonds

1. Treasur y Bills 2. Fixed Rate Treasur y Notes

1. Treasur y Bills 2. Treasur y Bonds

1. SLP Bond Fund: • Provide s capital preserv a-tion and regular interest income 2. SLP Balanced Fund: • Provide s total returns consisti ng of current income and capital growth 3. SLP Philippine Equity Fund: • provides long term capital apprecia -tion and purchasing power protectio n for longterm savings 4. SLP Dollar Fund: • Provide s total returns by investin g in a diversifi ed portfolio of

Minimum Placement Contacts

1. 2.

P50,000 P500,00 0

1. P100,00 0

P1,000,000

1. P50,000 2. P50,000

P5,000

Land Bank of the Philippines Treasury Marketing Unit, Local Currency Department Land Bank Plaza, 1598 MH Del Pilar St., Malate, Manila Trunklines: 450-7011 551-2200 Direct lines: 405-7268 405-7267 405-7266

PNB PNB Financial Center, CCP Complex Pres. Diosdado P. Macapagal Blvd., Pasay City Tel. Nos.: (632) 8916040 to 70 Website:

Treasury Sales Division 6th Floor, Metrobank Plaza, Makati

Makati Main Branch Paseo de Roxas cor. Villar St. Makati City Tel. Nos.: 885-5555 Fax No.: 892-0220 Binondo Center Dasmarinas cor. Juan Luna Sts. Binondo, Manila Tel. Nos.: 242-5601 to 40 Fax Nos.: 241-7058; 815-4762

Head office Sen. Gil Puyat Ave., cor. Makati Ave., Makati City

www.pnb.com.ph

E-mail: Treasury_mktg @pnb.com.ph

Mailing address: P.O. Box 1996 Makati Central Post Office, 1200 Makati City

Sun Life Prosperity Fund 10th Floor. Tower II, The Enterprise Center, 6766 Ayala Ave., Makati City Trunklines: 849-9999, 849-9744

Trunkline: (632) 8189511 to 20; 818-9611 to 20 E-mail: Info@devban kphil.com.ph

Additionally, the Philippine National Bank offers the Dollar Punla Fund, a US dollar denominated common trust fund for overseas Filipinos. The fund is invested in high grade dollar-denominated financial instruments locally and abroad. The fund calls for a minimum investment of US$1,000. For more information on the Dollar Punla Fund, please contact: Philippine National Bank Corporate Trust Marketing Division PNB Financial Center Pres. Diosdado Macapagal Blvd. Pasay City, Metro Manila Tel. no. (632) 526-3669 / 526-3684 Website: www.onb.com.ph E-mail address: [email protected]

2. ESTABLISHMENT OF BANKS AND OTHER LENDING INSTITUTIONS The banking industry is known to be a multinational operation requiring a very large amount of capital and securitization, and a high degree of accountability and regulation. Hence, small investors do not generally consider banking as a practicable and feasible business activity. There is, however, attractive business potential in saving and lending activities, particularly in areas where banks are not common. Examples are operation of lending institutions such as cooperatives that require minimum interest rates. There are more than 60,000 cooperatives in the Philippines at present with an aggregate asset through paid-up capital of P170 billion as of 2003, contributing P517 billion to the national economy. These are categorized into multi-purpose, credit, agricultural, and service, among others. The public generally borrow from cooperatives compared to banks or pawnshops due to small interest rates, minimal collateral and return of investments through dividends. In establishing a new banking organization, one must have suitable shareholders, adequate financial strength, a legal structure in line with its operational structure, and a management with sufficient expertise and integrity to operate the bank in a sound and prudent manner. Where the proposed owner or parent organization is a foreign bank, the prior consent of its home country supervisor should be obtained.

Procedures in Application for Authority to Establish a Bank

1. Accomplish the Application for Authority to Establish a Bank (Form No. 1) in triplicate. 2. Submit the following requirements in support of the application: a. “Agreement to Organize a Bank” (Form No. 2). b. Accomplished bio-data sheet of each of the incorporators, proposed directors and officers, and subscribers (Form No. 3). c. Evidence of Filipino citizenship of each of the incorporators, proposed directors and officers, and subscribers if he/she claims to be a Filipino citizen. d. Statement of Assets and Liabilities of each of the subscribers e. Statement of Income and Expense for the last three (3) calendar years of each of the subscribers f. Certified photocopies of Income Tax Returns for the last three (3) calendar years of each of the incorporators, proposed directors and officers, and subscribers. g. Clearances from the National Bureau of Investigation (NBI) and Bureau of Internal Revenue (BIR) of each of the incorporators, proposed directors and officers, and subscribers.

h. For corporate subscribers: 1. Copy of the Board Resolution authorizing the corporation to invest in such bank; and designating the person who will represent the corporation in connection therewith; 2. Copy of the latest Articles of Incorporation and By-Laws; 3. List of directors and principal officers; 4. List of major stockholders, indicating the citizenship and the number, amount and percentage of the voting and non-voting shares held by them; 5. A copy of the corporation’s audited financial statements for the last two (2) years prior to the filing of application; 6. A copy of the corporation’s annual report to the stockholders for the year immediately preceding the date of filing of application; 7. Certified photocopies of Income Tax Returns for the last two (2) calendar years; and 8. BIR clearance.

i. For foreign bank subscribers: 1. A copy of the Board Resolution authorizing the bank to invest in a bank in the Philippines, and designating the person who will represent the bank in connection therewith; 2. Historical background of the bank, such as date and place of incorporation, list of domestic and foreign branches, range of banking services offered, and financial and commercial relationship with the government, local banks, business entities and residents. 3. A copy each of the bank’s latest Amended Articles of Incorporation and By-Laws; 4. List of the bank’s directors and their citizenships; 5. List of principal officers of the bank’s head office;

6. List of major stockholders, indicating the citizenship and the number, amount and percentage of the voting and non-voting shares held by them; 7. A copy of the bank’s audited financial statements for the last two (2) years prior to the filing of application; 8. A copy of the bank’s annual report to the stockholders for the year immediately preceding the date of filing of application; and 9. A certification from the bank’s home country supervisory authority that the bank’s home country supervisory authority has no objection to the bank’s investment in a bank in the Philippines, and that adequate information on the bank and its subsidiaries will be provided to the Bangko Sentral ng Pilipinas to the extent allowed under existing laws. j.

Detailed Plan of Operation and Economic Justification for Establishing the Bank. k. Projected quarterly financial statements for the first three (3) years of operations, together with reasonable assumptions. 3. The application shall be considered filed on a first-come, first-served basis, provided all the required documents are complete and properly accomplished. 4. Pursuant to Section 26 of R.A. No. 7653, approval of application shall be subject, among others, to the condition that any director, officer or stockholder who, together with his related interest, contracts a loan or any form of financial accommodation from: (1) his bank; or (2) from a bank (a) which is a subsidiary of a bank holding company of which both his bank and the lending bank are subsidiaries or (b) in which a controlling proportion of the shares is owned by the same interest that owns a controlling proportion of the shares of his bank, in excess of five percent (5%) of the capital and surplus of the bank, or in the maximum amount permitted by law, whichever is lower, shall be required by the lending bank to waive the secrecy of his deposits of whatever nature in all banks in the Philippines. Any information obtained from an examination of his deposits shall be held in strict confidence and may be used by the examiners only in connection with their supervisory and examination responsibility or by the Bangko Sentral in an appropriate legal action it has initiated involving the deposit account. 5. Prescribed application form, together with other forms, is available at the Studies and Chartering Group, Supervisory Reports and Studies Office. Capital Requirements / Stockholdings 1. Banks to be established shall comply with the required minimum capital enumerated below or as may be prescribed by the Monetary Board: Type of Bank a. b. c.

Universal Banks Commercial Banks Thrift Banks - With head office within Metro Manila - With head office outside Metro Manila

Revised Amounts (In Million Pesos) 4,950.00 2,400.00 325.00 52.00

d.

Rural Banks - within Metro Manila - Cities of Cebu and Davao - In 1st, 2nd & 3rd class cities and 1st class municipalities - In 4th, 5th & 6th class cities and in 2nd, 3rd & 4th class municipalities - In 5th & 6th class municipalities

26.00 13.00 6.50 3.90 2.60

2. At least 25% of the total authorized capital stock shall be subscribed by the subscribers of the proposed bank, and at least 25% of such subscription shall be paid-up, provided that in no case shall the paid-up capital be less than the minimum required capital stated in Item 1 above. 3. The Stockholdings of an individual, family, corporate or business group in any bank shall be subject to the following limits: a. Foreign individuals and non-bank corporations may own or control up to forty percent (40%) of the voting stock of a domestic bank: Provided, That the aggregate foreign-voting stocks owned by the foreign individuals and non-bank corporations in a domestic bank shall not exceed forty percent (40%) of the outstanding voting stock of the bank. The percentage of foreign-owned voting stock in a bank shall be determined by the citizenship of the individual stockholders in that bank. b. A Filipino individual and a domestic non-bank corporation may each own up to forty percent (40%) of the voting stock of a domestic bank. There shall be no aggregate ceiling on the ownership by such individuals and corporations in a domestic bank. c. The citizenship of the corporation which is a stockholder of a bank shall follow the citizenship of the controlling stockholders of the corporation, irrespective of the place of incorporation. For purposes hereof, the term “controlling stockholders” shall refer to individuals holding more than fifty percent (50%) of the voting stock of the corporate stockholders of the bank.

4. At least 60% of voting stock of any commercial bank shall be owned by Filipino citizens. For any thrift bank, at least 40% of its voting stock shall be owned by Filipino citizens. Subject to Section 4 of Republic Act. No. 7353, all of the capital stock of any rural bank shall be fully owned and held, directly or indirectly, by Filipino citizens or corporations, associations or cooperatives qualified under Philippine laws to own and hold such capital stock. Requirements for the Issuance of Authority to Operate 1. Within sixty (60) days from receipt of advice of approval by the Monetary Board/Governor of their application for authority to establish the bank, the organizers shall: a. Submit the Articles of Incorporation, Treasurer’s Sworn Statement and By-Laws in seven (7) copies; and b. Deposit with any commercial bank (for commercial banks and thrift banks) and any bank (for rural banks) the initial paid-up capital of the proposed bank. 2. Within thirty (30) days after the Articles of Incorporation and By-Laws had been passed upon by the Office of the General Counsel and the corresponding certificates of Authority to Register had been issued, the

organizers shall effect the filing and registration of said documents with the Securities and Exchange Commission.

3. Within six (6) months (for commercial banks and thrift banks) and eight (8) months (for rural banks) from receipt of advice of approval by the Monetary Board/Governor of their application for authority to establish the bank, the organizers shall: a. Complete the construction and furnishing of the bank building, which shall be equipped with vault and appropriate security devices such as lighting system, time delay device, tamper-resistant locks, alarm systems, etc., and provided with furniture, fixtures, equipment and bank forms; b. Effect and complete the recruitment and hiring of officers and employees of the bank; c. Submit the following documentary requirements at least thirty (30) days before the scheduled start of operations: i. ii. iii. iv.

v.

vi. vii.

viii. ix. x. xi. xii. xiii.

xiv.

xv. xvi.

Proof of registration of Articles of Incorporation and By-Laws; Certification of compliance with the conditions of approval duly signed by the incorporators; List of principals and junior officers and their respective designations and salaries; Bio-data sheet, evidence of citizenship and NBI and BIR clearances of each of the officers (who have not had the previous approval of the Monetary Board/Governor) which are needed for the evaluation of their qualifications as officers; Chart of Organization; Manual of Operations (for commercial banks and thrift banks); Plantilla showing the positions with corresponding salaries, the total of which should more or less conform with the amount of salaries shown in the submitted projected statement of earnings and expenses; Two (2) sets of specimens of principal bank accounting and other forms; Bond policy on officers and custodial employees; Insurance policy on bank properties required to be insured; Blueprint of floor layout of bank premises; Contract of lease on bank’s premises, if the same are to be leased; Excerpts of the minutes of the organizational meetings confirming all organizational and pre-opening transactions relative to activities undertaken to prepare the bank to operate (such as appointment of officers, contract of lease, etc.); An alphabetical list of stockholders with the number and percentage of voting stocks owned by them; A separate list containing the names of persons who own voting stocks in banks and who are related to each other within the 3rd degree of consanguinity or affinity; Certification by the President that no person who is the spouse or relative within the 2nd degree of consanguinity or affinity of any person holding the position of Chairman, President, Executive Vice-President or any position of equivalent rank, General Manager, Treasurer, Chief Cashier or Chief Accountant will be appointed to any of said positions in the bank;

xvii.

xviii.

Appointment of an officer of the proposed bank who shall have undergone orientation on the reportorial requirements with the Department of Thrift Banks and Non-Bank Financial Institutions (DTBNBFI), and a certification by the Manager that he is fully aware of said reportorial requirements and the respective deadlines for submission to the BSP (for thrift banks); and Other documents/papers which may be required.

d. File with Supervisory Reports and Studies Office a request for ocular inspection of the bank premises at least thirty (30) days before the scheduled start of operation. For more information on the establishment of banks, please contact: Supervisory Reports and Studies Office Bangko Sentral ng Pilipinas Vito Cruz cor. Mabini St., Malate, Manila Tel. No.: (632) 524-7011 local 2766 Website: www.bsp.gov.ph

3. DEVELOPMENT OF TOURIST RESORTS AND OTHER FACILITIES Tourism for domestic and international travelers maintains its potentials for further growth and expansion in the Philippines. This is particularly so because of the natural attributes of the country (such as long stretches of beaches, numerous islands and ecological preserves) cultural and historical sites of major importance, the expected growth in regional tourism, as well as population growth in the country. Investment in tourism facilities includes development of resorts, hotels and homestay facilities, local and specialty restaurants, catering, picnic excursion sites, convention and events facilities, native goods/ products and tour and transportation services.

The tourism sector in particular offers potentials for high rates of employment and job opportunities due to its service and specialty orientation. The following matrix provides some options for business and investments in tourism in different provinces in the Philippines: Area and Description Rizal Beach

Gubat, Sorsogon 576,978 sq.m. • Suited for world class hotel/resort with conference rooms and water facilities. • Ideal for hiking, camping and picnic

Interest and Cost (as of May 2004) Joint venture for P50 Million

Contacts and addresses Pastor Ave., New Market Site, Batangas City Tel. No.: (6343) 980-6149

Monte Villa Dumansi, Diffun, Quirino Park and Resort 11 hectares • Surrounded by scenic lowlying hills and caves and other natural attractions • Offers facilities such as big swimming pool with built-in kids pool, picnic cottages, function halls for training/conferences and children plaza

Joint venture/ outright sale/lease for P15 M

DENR-Diffun, Dumansi, Diffun, Quirino

Lourdes Brushwood Resort and Convention Center

Brgy. Rizal, Guagua, Pampanga 7.9 hectares • 30 different amenities of international standards • pre-school house and a mini-hotel • underground power, communication and drainage system

Joint venture for P54.23M

Sabang Beach

Brgy. Bacungan, Puerto Princesa City, Palawan 72,485 sq. meter • white sand beach with an abundance of coconut trees • situated in a large cove and near the Puerto Princesa Subterranean River National Park

Joint venture

9 Nightingale St., Zabarte Subdivision, Novaliches, Quezon City Tel. Nos.: (632) 936-9103; 939-6829 Fax No.: (632) 417-1266 35 Malvar St., Puerto Princesa City, Palawan Tel. No.: (063) 816-6666

Cost is negotiable

Simpocan Beach Property

Simpocan, Puerto Princesa City 15.57 hectares • approximately 1, 042 meters beach front • fully planted with coconut, cashew and other fruit trees • ideal for resort, beach side subdivision, mountaineering with the virgin forest of Mt. Beaufort

For sale for P250/sq.m.

DENR-CENRO Peneyra Rd., San Pedro, Puerto Princesa City, Palawan Tel. No.: (048) 433-7321 / 2414

Beach Resort Property (Rocamora's)

Sitio Talaudiong, Bacungan, Puerto Princesa City, Palawan 2.5 hectares and 3.5 hectares • lot with beach front of whitish-pinkish colored sand • site is near the proposed Puerto Princesa Forest Park and Nagtabon Beach

Outright sale

40 Libis Road, Brgy. San Pedro, Puerto Princesa City, Palawan Telefax No. (048) 433-7125

Napsan Beach Resort

Napsan, Puerto Princesa City 4.5 hectares • near the national highway • 500 meters of beach front, with wild flora and fauna and with mild and tropical weather • highly suitable for resort development

For sale for P150/sq.m.

The Palawan Bank, 167 Rizal Ave., Puerto Princesa City, Palawan Tel. No.: (048) 433-2489 / 2589

San Rafael Beach Resort

San Rafael, Tanabag, Puerto Princesa City 136,704 sq.m. • long flat beach front and unpopulated

For sale for P250/sq.m.

Nagtabon Mountain Resort

Nagtabon, Puerto Princesa City 22,000 sq.m. • mountain resort with clubhouse and swimming pool • restaurant, aircon rooms and conference hall

Joint venture for P1M

The Palawan Bank, 167 Rizal Ave., Puerto Princesa City, Palawan Tel. No.: (048) 433-2489 / 2589 c/o Puerto Pension, 35 Malvar St., Puerto Princesa City, Palawan Tel. No.: (063) 816-6666

Cost is negotiable

Samal Island Property (Sison's)

Cogon Talikud Island, Kaputian District, Samal Island a. 22.12 hectares b. 7.54 hectares c. 4.49 hectares •

• • •

The island garden of Samal is one of the country's flagship project areas for tourism in Mindanao White and pristine beaches excellent for scuba diving and snorkeling Marine and fish sanctuaries and rare coral gardens Mountain resorts, waterfalls, unique flora and fauna are among the island's best

For sale/lease For sale: a. P44,245, 200 b. P22,603,20 0 c. P8,987, 200

2631 Rockefeller St., Sison Mansion, Makati City Tel. No.: (632) 843-4463 / 8892397 / 843-6311 / 812-8911

For lease: a. P184, 355 b. P94, 180 c. P37, 466.66

Siargao Beach Property (Boncaro's)

Brgy. Malinao, Gen. Luna, Siargao 16,788 sq. m. • 40-nautical miles from Surigao City and 16 kilometers away from the municipality of Dapa, the entry point to the island • includes waterfalls, caves, mountains, lagoon, beaches and rich marine life • ideal for beach resort development

For sale Php500/sq. m.

Brgy. 1, Poblacion Hospital Road, Siargao, Surigao del Norte

Sharifa 7 and Regina Resort

Siasi Lapak Island, Jolo, Sulu 32.6 hectares • accessible by plane and superferry • ideal location for an integrated resort complex due to its proximity with the rapidly growing economies of Southeast Asia • tourist attractions like: caves, wildlife, white sand beach, mountain, abundant flora and fauna, lagoons and coves

Joint venture US$300M

424 Sta. Teresita St. cor. G. Tuazon St., Sampaloc, Manila Tel. No.: (632) 749-4863 / 7143421

Camiguin Seaside Lodge, Inc.

Barangay Agoho, Mambajao, Camiguin 27,692 sq.m. • fine gray sand and water is ideal for swimming and snorkeling • includes 16 private cottages, 16-room dormitory, a canteen and a social hall • 3 pump boats

For sale Cost is negotiable

Camiguin Seaside Lodge, Inc. Agoho, Mambajao, Camiguin Province Tel. No.: (088) 387-9031

Beach Property (Daminar's)

Panghiawan, Catarman, Camiguin 9,125 sq.m. • property is ideal for beach resort development • water is ideal for swimming and snorkeling

For sale for P3,193,750

Llacuna St., Umyco, Mambajao

Development of a Beach Resort (Dalhog's)

Brgy. Pangubatan, Samal Island, Davao del Norte 328,261 sq.m. • classified as totally raw land property with a 1.5 kilometer shoreline • abundance of marine life • lagoons, coves and coral formations add to the area's natural beauty

Outright sale at P250/sq.m.

Legal Management Department, ALSONS Properties Tel. No.: (082) 222-3177

Lake Mainit Floating Restaurant and Cottages

Brgy. San Roque, Kitcharao, Agusan del Norte • an hour ride from the region's center of trade and commerce, Butuan City • situated in one of the country's cleanest inland bodies of water • diverse flora and fauna

For sale or lease for P3,735,682.13

DOT-CARAGA Telefax No.: (085) 341-6371

Development of Resort Complex (Samal Island)

Brgy. Pangubatan, San Remegion, Samal Island 30 hectares

For joint venture or sale

c/o Lanang Country Club, J. P. Laurel Ave., Lanang, 8000 Davao City Tel. No.: (082) 233-1718 Fax No.: (082) 233-2557

Open to joint ventures Open to negotiations

Development of Jimbart Tourism Economic Zone

Brgy. Dao Dauis, Panglao Island, Bohol 49.9 hectares • strategically located within the Panglao Island Tourism State (PITE) municipalities and is about a 20 minute drive from the capital Tagbilaran • 600 meters in length of rocky cliff with beach below • suited for integrated resort complex and a single resort zone

For joint venture /lease for P300/sq. m.

Lot I-B-III-B Brgy. Masile, Bagong Kalsada, Calamba, Laguna 10,000 sq.m. • about 45 minutes from Makati Business District • 3-storey hotel building, 10 2storey family cottages, 1 3storey private villa, a 2storey conference building, a chapel, a restaurant, 15picnic huts, 12-hot spring swimming pools, 24-barrel baths, 20 basin baths as well as lagoon for fishing and boating. • Includes indoor games such as billiards, dart and table tennis • Adequate parking space

For sale for P300M

Jimbart Land Ventures Bolod, Panglao, Bohol c/o Bohol Investment Promotion Center, GF Governor's Mansion, CPG Ave., Tagbilaran City Tel. No.: (6338) 411-4559 Email: [email protected]

Web page: www.bohol.gov.ph/bipc

Henry's Country Barns Resort and Hotel

Cell Phone No.: (0918) 584-6315 Tel. No.: (632) 563-8750

Processing Guide for Accreditation of Tour Operators 1. Application form duly accomplished and notarized 2. Mayor's permit and/or Municipal license with official receipts 3. If corporation or partnership, copy of Articles of Incorporation and its By-laws and Business Name Certificate, if applicable. If single proprietorship, submit Business Name Certificate. 4. Resolution of the Board of Directors of the Corporation, association or other entities authorizing the filing of the application and designating the person authorized to sign and act for and in its behalf and transact business with the Department. If single proprietorship or partnership, a letter of authority from the owners/partners. 5. List of all officials and employees with their respective positions, nationalities and home addresses, certified by the general manager and notarized. Separate list

for main and branches, if any. In case of new agency, bio-data of at least two permanent staff with at least two years experience in tour operations. 6. For new general manager, application for permit to work and documents to prove a minimum of three years managerial experience in travel and tour agency operations. In the absence thereof, proof that she/he is a graduate of Bachelor of Science in Tourism or has successfully completed a travel agency management course or a tour operator's course. 7. List of tour guides, travel representatives, consultants, sales agents or persons who are regularly engaged in soliciting and booking of passengers with their nationalities and home addresses. 8. For alien personnel, valid busy from the Bureau of Immigration (ICR for native born/resident aliens and visa for prearranged employees) and permit from the Department of Labor and Employment (Alien Employment Registration Certificate for resident aliens and Alien Employment Permit for non-resident aliens). Submit papers for resident aliens only once unless there are amendments. 9. Proof of inbound/local tour operation and/or foreign exchange earning receipts from local and inbound tours (official receipts-those accredited only by the DOT, i.e. hotels/resorts bookings). 10. Audited Financial Statements and Income Tax Return for the preceding year. 11. Summary of sales report for the preceding year. 12. Tour packages with name of tour guides, hotels, resorts, transport operators, restaurants, entertainment establishments and tariff rates (those accredited only by DOT). 13. In case of new tour operator, proof of compliance with the P500,000.00 working capital requirement. (Original Bank Certification) 14. Notarized contract of lease of office space or a sworn statement by the lessor that the agency is a lessee thereof including branches, if any. (Not applicable if renewal unless there is a change in address.) 15. For tour operators with branches, affidavit executed by the general manager of the main office acknowledging the existence of said branch office; assuming full responsibility for its operations, and certifying that it is not managed nor operated by the persons/entities other than the duly accredited employees and officers of the main office. 16. Photocopy of surety bond policy submitted to the Local Government Unit. 17. Deeds of sale/assignment of shares, if applicable. 18. Payment of the following fees: (If check, pay to the order of the Department of Tourism.) Accreditation Fee P1, 400.00 Branch Office P1, 400.00

ID Fee (Optional) P 30.00 Sticker P

100.00

For more information on the accreditation of tour operators, please contact: Department of Tourism DOT Building, T.M. Kalaw, Rizal Park, Manila Tel. Nos.: (632) 522-7057 / 4561 / 523-8411 / 525-3029 / 524-7734 Fax. No.: (632) 521-8113 Website: www.wowphilippines.com.ph

4. PURCHASE OF HOUSING AND CONDOMINIUM UNITS The growing population in urban and suburban areas in the Philippines has increased demand for housing, as well as pushed up in the long term prices of single unit and condominium residential facilities. Increase in property values as a result of demand offers excellent possibilities for secure investment in residential subdivisions and condominium units, depending on area preferences. While development of single unit residential subdivision tend to move away from urban centers, condominium units are usually built closer to commercial areas and place of work. Examples of land and property developers are Ayala Land, Bonifacio Land, Empire East, Robinson Land and Rockwell. The purchase of real property in the Philippines of overseas Filipinos may, in addition to usual in-house financing, be made possible through the Philippine Home Loan Program of the Philippine National Bank. The program also finances construction of a residential home or property owned by the borrower, improvement of an existing house, or refinancing of a home mortgage loan. Documentary Requirements for Buyers of Condominiums General Requirements 1. Reservation Application/ Late Reservation Application 2. Letter of Intent 3. Deed of Assignment of Rights 4. Contract to Sell/Deed of Conditional Sale 5. Payment Schedule 6. Post Dated Checks 7. Floor Plan/Lot Plan 8. Unit Plan 9. Subdivision Plan 10. Parking Plan 11. Specimen Signature Card/s 12. Information Sheet Specific Requirements

A. For Individual Buyers 1. 2. 3. 4. 5. 6. 7. 8.

Income Tax Returns (2 years) Tax Identification Number Community Tax Certificate Audited Financial Statements (2 years) DTI Registration of Business Name (if applicable) Bank Inquiry Authorization (1 for every bank reference) Special Power of Attorney (if applicable) One (1) valid ID with picture

B. For Partnership/ Corporate Buyers 1. 2. 3. 4. 5. 6. 7.

Income Tax Returns (for last 2 years) Tax Identification Number (Company and Authorized signatory/ies) Community Tax Certificate (Company & authorized signatory/ies) SEC Registration DTI Registration of Business Name Articles of Incorporation/ Partnership & By-Laws Board Resolution / Secretary’s Certificate Authorizing the purchase & authorized signatory/ies 8. Company Profile/Annual Report 9. Financial Statements (In-House & Audited for last 2 years) 10. Bank Inquiry Authorization (1 form for every bank reference) 11. List of Major Suppliers and Clients C. Bank Loan Requirements 1. 2. 3. 4. 5. 6. 7.

Completely filled-out bank loan application form ID photo (2x2) for both spouses Certificate of Employment for both spouses Bank statements (for the last 6 months) Photocopy of Marriage Contract Proof of non-salary income such as Certificates of Deposits Stocks/Bonds Certificate, lease contract showing terms & monthly payments 8. Any proof of Billing Receipt 9. Business Background/Profile D. Requirements for Foreign Buyers 1. Photocopy of Passport (original copy of presentation) 2. Working Visa or Special Investor Residence Visa Additional Requirement for Overseas Workers 1. Contract of Employment/Certificate of Employment (with validation by the Philippine Consulate) 2. History of Employment/ Latest Crew Contract, if applicant is a Seaman 3. Photocopy of Passport Procedure 1. Applicant selects the unit he/she would like to purchase. 2. Applicant pays the reservation deposit.

3. Applicant submits required documents. 4. The condominium developer prepares the evaluation report not later than 14 days from receipt of application. 5. Evaluation report is then submitted for approval of the Business Development Head. 6. Once the application is approved, the applicant selects a payment schedule. 7. Upon receipt of the payment the buyer and the condominium developer signs a Contract of Sale.

Available Condominium Projects as of the 2nd quarter, 2004 Unit 2301 Civic Place, Filinvest Corporate City, Alabang

Area and Description Ÿ Ÿ Ÿ Ÿ

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West Parc Condominiums, Filinvest Corporate City, Alabang

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30-389 sq.m. Ideal for an office or home office Units can be combined to accommodate bigger space requirements Situated in front of the City Center, a 28 hectare area zoned for commercial/retail developments Near the sites of the Asian Hospital, Festival Supermall, Northgate Cyberzone and prime condominiums and office buildings 31-37 sq.m. studio units or 69-73 sq.m. 2bedroom units Situated at the heart of Filinvest Corporate City, Southern Metro Manila’s premier satellite city 5-minute away from the luxuries of the city’s main commercial hub while providing the comforts of the countryside where greens and fresh air abounds Situated in an area zoned for commercial/retail developments

Investment Cost Ÿ P1.7M24.3M/ Ÿ Cash or Deferred Cash payment basis Ÿ Reservation Fee of P25K

Contacts Filinvest Alabang, Inc., Filinvest Corporate City, Alabang, Muntinlupa City Tel. No.: (02) 850-2301 Fax No.: (02) 807-6907 E-mail:

2301@filinvestcorpcity. com Website:

www.filinvestcorpcity.c om

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1.8M-5.6M Filinvest Alabang, Inc., Reservation Filinvest Corporate City, Fee of Alabang, Muntinlupa City P50K Tel. No.: (02)8500888/809-5425 E-mail: [email protected]

Pioneer Pointe, Mandaluyong City

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Vivant Flats, Filinvest Corporate City, Alabang

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Fifth Avenue Place, Fort Bonifacio

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20.5 sq.m.-148 sq.m. 28-storey residential condominium in the heart of a booming business metropolis Malls and shopping hubs are practically outside your doorstep With an innovative concept called “Shared Development,” one can own his studio or twolevel, 2-bedroom unit at cost

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30 sq.m.- 105 sq.m. a 17-storey residential tower located along Alabang’s Parkway Avenue, Filinvest Corporate City’s premium residential block. Combines the modern conveniences of condo living within the luxury of breathing space and a garden of greens Right at the heart of the country’s center of business and leisure

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33.38 sq. m.-122.7 sq.m. 33-storey Residential Condominium With Swimming Pool, Landscape Garden, Jogging Path, Gym and Children’s Playground

P1.8M-P6.3M

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P1.0MP9.4M For as low as P12.0K+ a month, no lump sump and no down payment

Pioneer St. (35 meters from the corner of Reliance), Mandaluyong City Tel. Nos.: (02) 687-1155/ 687-1177 E-mail:

[email protected] Website: pioneerpointe.com

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P2.1MP5.5M Choose from a range of no down payment, low monthly and extended payment plans

Flexible Terms of payment

Filinvest Alabang, Inc., Filinvest Corporate City, Alabang, Muntinlupa City Tel. No.: (02) 850-0777/ 809-6517 to 22 Fax No.: (02) 807-6907 E-mail: [email protected]

Website:

www.filinvestcorpcity.c om

Robinsons Properties Marketing and Management Corporation

One Gateway Place, Mandaluyong

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Two Adriatico Place, Pedro Gil, Ermita

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36 sq.m. – 255.7 sq.m. Rising 28-storey residential condominium with access to the Robinsons Gateway Mall Sits at the corner of EDSA and Pioneer Street in the City of Mandaluyong that offers studio and 1-Bedroom Units Has contemporary architectural design with tri-axial plan With Swimming Pool, Children’s Play Area, Gym and Multi-Purpose Court 36 sq.m.- 270.21 sq.m. Offers a spectacular view of the famous sunset of Manila Bay 38-storey, strategically located along Adriatico and Pedro Gil Streets in the lively Malate close to government offices, services, hospitals, churches, and educational institutions. Proximity to the city’s major roadways marks its unique and practical central location

P1.8M-17.2M Units available for as low as P22K monthly

Robinsons Properties Marketing and Management Corporation 32/F Robinsons Equitable Tower, ADB Avenue corner Poveda Road, Ortigas Center, Pasig City E-mail: [email protected]

P2M-P18.6M

Robinsons Properties Marketing and Management Corporation 32/F Robinsons Equitable Tower, ADB Avenue corner Poveda Road, Ortigas Center, Pasig City E-mail: [email protected]

5. DEVELOPMENT OF HOUSING AND CONDOMINIUM PROJECTS The growing demand for different types of residential (as well as commercial) units has made property development a profitable and attractive venture, although requiring larger amount of capitalization.

The Housing and Land Use Regulatory Board (HLURB) is the planning, regulatory and quasi-judicial national government body tasked to regulate land use and, real estate and housing development. A registered owner or developer of a parcel of land who wishes to convert the same into subdivision or a condominium project shall apply for the approval of the subdivision/condominium plan with the HLURB by filing the following requirements: Application for the Approval of The Subdivision Development Plan

Application for the Approval of the Condominium Plan

A. For Optional Application for Preliminary Subdivision Development Plan 1. Two (2) sets of the Site Development Plan 2. Vicinity Map 3. Topographic Plan 4. Survey Plan 5. Two (2) copies of Certified True Copy of Title and Current Tax Receipts 6. Right to use or deed of sale of right-ofway for access road and other utilities when applicable

B. For Application for Subdivision Development Plan The following in addition to the above: 1. Subdivision Development Plan 2. Civil and Sanitary Works Design 3. Two (2) copies of water system layout duly signed and sealed by a licensed sanitary engineer or civil engineer 4. Certified True Copy of Tax Declaration covering the property(ies) subject of the application 5. Certified True Copy of Environmental Compliance Certificate (ECC) or Certificate of Non-coverage (CNC) duly issued by the DENR 6. Zoning Certificate from HLURB Regional Office 7. Certified True Copy of DAR Conversion Order 8. Two (2) copies of project description for projects having an area of 1 hectare and above 9. Plans, specifications, bills of materials and cost estimates duly signed and sealed by the appropriate licensed professionals 10. Permit to drill from the National Water Resources Board (NWRB) 11. Traffic Impact Assessment (TIA) for subdivision projects 30 hectares and above 12. List of Names of duly licensed professionals who signed the plans and other similar documents in connection with the application

1. Two (2) sets of Condominium Plan duly signed and sealed by a licensed architect 2. Two (2) copies of Vicinity Map 3. Building specifications and Estimated Cost 4. Zoning Certificate from HLURB Regional Office 5. Certified True Copy of DAR Conversion Order 6. Certified True Copy of Environmental Clearance Certificate (ECC) or Certificate of Non-Coverage (CNC) duly issued by the DENR, whichever is applicable 7. Certified true copy of title(s) and current tax receipt 8. Right to use or deed of sale of right-of-way for access road and other utilities when applicable 9. Project Study 10. Permit to drill from the National Water Resources Board (NWRB) or certificate of coverage from concerned local franchise holder 11. List of Names of duly licensed professionals who signed the plans and other similar documents in connection with the application

Application for Registration The owner or the real estate dealer interested in the sale of lots or units in a subdivision project or condominium project, respectively, shall register the project with the Housing and Land Use Regulatory Board (HLURB) by filing the following: 1. Sworn Registration Statement 2. Certified true copy of titles 3. Duly audited balance sheet / Income Tax Return / Sworn Statement of Assets, whichever is applicable 4. Articles of Incorporation, By-Laws, and latest annual corporate report to SEC 5. Copy of brochure, circular or prospectus for advertisement of the subject project 6. Sample copy of the Contract to Sell 7. Certified true copy of the Environmental Compliance Certificate (ECC)/ Certificate of Non-Coverage (CNC), whichever is applicable 8. Zoning Certificate from HLURB Regional Office 9. Certified true copy of DAR conversion order 10. Electrical plan duly signed and sealed by a licensed electrical engineer 11. Permit to operate a deep well and water resistivity and potability test results from concerned government agencies Additional Requirements 1. For Condominium Projects a. Master Deeds with Declaration of Restrictions duly annotated at the back of title and plans registered with the Register of Deeds b. Building Permit 2. For Subdivision Projects: a. 2 copies of verified survey returns b. Copy of the following documents in case the development permit was issued by the LGU:

§ § §

Sangguniang Resolution/Ordinance approving the subdivision plan or Development Permit or its equivalent Proof of compliance to Sec. 18 of RA 7279 Approved subdivision development plan

c. Project study d. Copy of brochures and other forms of advertisements Application for License to Sell The owner of the real estate dealer interested in the sale of lots or units in a subdivision or condominium project shall apply with the HLURB for a License to Sell by submitting the following documents: 1. Program of development signed and sealed by a licensed engineer or architect 2. Affidavit of undertaking to perform the following: a. Segregation of the individual titles for all lots or units within the project; b. Submission of proof that titles to the saleable lots or units have been issued; and c. Submission of certified true copy of title of the common areas / open space. 3. Duly accomplished and notarized fact sheet Steps in Application for Registration and Licensing: 1. Filing of application with the Records Division, order of payment is issued, payment of 50% for processing fee with the cashier; 2. Records Division forwards application to Director and Head of the Technical Services for preliminary evaluation and assignment to processor; 3. Processor evaluates application (sends notice of deficiency of requirements if needed), conducts site inspection (if needed) and prepares draft decision/action on application, secure clearances for legal, appeals, monitoring (processing is not resumed unless deficiencies are submitted; 4. Head of the Technical Services reviews and initials action/decision; 5. Regional Director reviews, approves/disapproves application; and 6. Applicant claims decision/action from Records Division after payment of remaining 50% of processing fees. Note: A notice to publish in a newspaper of general circulation is issued upon submission of the following: Ÿ Registration Statement (stating the name of project and location), corporate papers (following HLURB prescribed form) Ÿ Sangguniang Bayan / Panlungsod Resolution or ordinance approving the development of subdivision project and copy of site development plan Ÿ Certified true copy of title(s) covering the project After inspection for determination of remaining cost of development, a notice to post performance bond/bank guaranty is issued.

Performance Bond The performance bond required for the issuance of the license to sell may be in any of the following forms: 1. A surety bond amounting to 20% of the development cost of the unfinished portion of the approved plan issued by a duly accredited bonding company; or 2. Real estate mortgage to be executed by the applicant as mortgagor in favor of the Republic of the Philippines as mortgagee over a property other than that subject of the application, provided that the value of the property shall be at least 20% of the total development cost; or 3. Cash bond equivalent to 10% of the development cost of the unfinished portion of the approved plan. For more information on the licensing and registration of subdivision and condominium projects, please contact any of the following: The HLURB Regional Office, which has jurisdiction over the place where the subdivision or the condominium is located, or Rules and Standard Development Office 2/F HLURB Building Kalayaan Ave., cor. Mayaman St., Diliman, Quezon City Tel. No.: (632) 924-3386 Fax No.: (632) 927-2724 E-Mail: [email protected]

6. DEVELOPMENT OF MEMORIAL PARKS The development of memorial parks offers excellent business potentials, particularly in utilizing areas that are not suitable to agricultural, commercial or other productive uses. The demand for plots in modern memorial parks has also grown alongside that of other pre-need products and services, and is foreseen to continue along this trend. The Housing and Land Use Regulatory Board (HLURB) is the national government agency that regulates the development of memorial parks. The Rules and Regulations for Memorial Park/Cemetery approved per HLURB Board Resolution No. 681 Series of 2000 on 21 September 2000 have prescribed the following guidelines. Basic Design Standards for Memorial Parks/Cemeteries

Memorial parks or cemeteries must conform with the land use plan or zoning ordinance of the locality having jurisdiction over the project site, the pertinent provisions of the Sanitation Code, Water Code, National Building Code of the Philippines and its referral codes, like the Accessibility Law, Plumbing Code, Electrical Code, and other applicable laws and rules affecting related services and the following design standards: Site Criteria Cemeteries or memorial parks shall be located on the periphery of the town center or in areas sparsely inhabited and where little hazard to human life or health could result. Undue proliferation of memorial parks/cemeteries in any municipality/city shall not be allowed. The number of cemeteries/memorial parks to be allowed within each municipality/city shall be based on the needs or death rate in the municipality and future catchment areas as well. Location In municipalities/cities with approved comprehensive land use plan or zoning ordinance, memorial parks/cemeteries shall be located in areas zoned for cemetery purposes, otherwise, project site shall only be allowed in: 1. Areas zoned as open space and not within the Strategic Agriculture and Fisheries Development Zones (SAFDZ) as certified by the Department of Agriculture (DA). 2. Areas zoned as agricultural, provided that the site is not tenanted and not covered by operation land transfer and not considered as prime agricultural land and located in areas covered by the Comprehensive Agrarian Reform Program (CARP) as certified by the Department of Agriculture (DA); and not irrigated as certified by the National Irrigation Administration (NIA). In cities/municipalities without an approved comprehensive land use plan or zoning ordinance, the memorial park/cemetery shall be allowed in the following, provided that the aforementioned restrictions are met: 1. An area adjacent to an existing cemetery/memorial park. 2. An area where the dominant land use within one hundred (100) meters from the periphery of the proposed memorial park/ cemetery is neither residential, commercial, industrial or institutional. 3. An area deemed by the Board as appropriate and in accordance with the principles of Planned Unit Development (PUD). PUD is defined as one concept of real estate development and/or land development scheme which aims to optimize the use of the land through adaptive/innovative site lay-out, provision of generous open space and complementarity of uses/activities. Physical Suitability The memorial park/cemetery must be located on ground where the water table is not higher than four (?) and 4.50 meters below the ground surface as

certified by the National Water Resources Board (NWRB) and shall not be allowed in environmentally critical areas as defined in Proclamation No. 2146. Accessibility The site must be served by a road with a minimum width or right-of-way of not less than 8 meters. (The right-of-way of major roads shall be increased as project size increases) All relevant provisions of BP Blg. 344 e.g. dropped curves, curb cut-outs, etc. shall be observed. Design and Planning Considerations Cemetery/Memorial Parks must achieve flexibility in design and orderly layout to respond to the various spatial requirements of burial ceremonies, economic land use and environmental control. Suitable areas must also be allocated for the planting of trees, shrubs, plants and for other functional and decorative elements such as monuments, sculptures, fountains and benches. Land Allocation There shall be no fixed ratio for saleable area, provided that the required areas for roads, pathways, parking and other facilities and amenities are reserved. Likewise, at least 50% of the saleable area shall be utilized for underground interment in order to retain park-like character of the project. Development of Memorial Parks Every registered owner or developer of a parcel of land who wishes to convert the same into a memorial park/cemetery shall apply for the approval of the memorial park/cemetery plan with the HLURB or city/municipality concerned by filing the following requirements: Application for the Approval of the Preliminary Memorial Park Plan

Application for the Approval of Final Memorial Park Plan

1. Site Development Plan/Scheme 2. Vicinity map/location map duly signed by a geodetic engineer 3. Topographic Plan 4. Zoning Certification issued by the HLURB or city/municipality concerned 5. Certified True Copy (CTC) of Environmental Compliance Certificate (ECC) or Certificate of Non-Coverage (CNC) duly issued by the DENR 6. CTC of conversion order or exemption clearance from the Department of Agrarian Reform 7. CTC of Title and Survey Plan

1. Final Memorial Park/Cemetery Plan 2. Engineering Plans duly signed and sealed by a licensed civil engineer 3. Storm drainage duly signed and sealed by a licensed sanitary engineer 4. Centralized or combined storm and sewer system duly signed and sealed by a licensed sanitary engineer 5. Site grading plan duly signed and sealed by a licensed civil engineer 6. Electrical plan and specifications 7. Landscaping plan 8. Summary of Project Study indicating market, source/s of fund, statement of income, cash flow and work program 9. CTC of title or other evidence of ownership or intent to sell and authority to develop signed by the owner, Tax Declaration and current real estate tax receipt 10. Clearances/Permits/Certifications from other agencies applicable to the Project 11. Joint affidavit of owner/developer and licensed environmental planner that the memorial park/cemetery plan conforms to the standards and requirements of HLURB rules 12. List of names of duly licensed professional who signed the plans and other similar documents in connection with the application filed with HLURB

Approval of the preliminary memorial park/cemetery plan shall be valid only for a period of 180 days from date of approval. A revalidation can be availed of only once after said period. After the preliminary approval of the Memorial Park/Cemetery, the owner or developer shall proceed with the preparation and submission of documents for the approval of final memorial park/cemetery plan. If the application for the project is physically feasible and the plan complies with the zoning ordinance of the city or municipality where it is situated, the project shall be issued a development permit issued by the HLURB or the city/municipality concerned upon payment of the prescribed processing fee. Registration and Licensing of Memorial Park/Cemetery Projects for the Lease/Sale of the Plots When the proponent has at least accomplished 20% of the total development and is interested in the perpetual lease/sale of plots in a memorial

park/cemetery project, he shall register the project with the HLURB by filing in duplicate a sworn registration statement containing the following information: 1. Name of the owner or dealer; 2. Name, location and area of the project; 3. The location of the dealer’s and owner’s principal business office; 4. The names and addresses of all directors and officers of the business firm if the owner and/or dealer is a corporation, association, trust or other entity, and all the partners, if it is a partnership; 5. The general character of the business actually transacted by the owner; and 6. A statement of the capitalization of the owner, including the authorized and outstanding capital stock and the proportion thereof which is paid up. The following documents shall be attached to the registration statements: 1. A copy of the Transfer Certificate of Title in the name of the applicant if none was submitted in the application for plan approval; 2. Article of Incorporation or Articles of Partnership of Association 3. Affidavit stating that the property is free from liens and encumbrances 4. A copy of contract from to be used in the lease/sale of lots 5. A copy of any circular, prospectus, brochure, advertisement, letter of communication to be used for the public offering of the memorial park/cemetery plots. Steps in Application for Registration and Licensing: c. Filing of application with the Records Division, order of payment is issued, payment of 50% for processing fee with the cashier; d. Records Division forwards application to director and Head of the Technical Services for preliminary evaluation and assignment to processor; e. Processor evaluates application (sends notice of deficiency of requirements if needed), conducts site inspection (if needed) and prepares draft decision/action on application, secure clearances for legals, appeals, monitoring (processing is not resumed unless deficiencies are submitted; f.

Head of the Technical Services reviews and initials action/decision;

g. Regional Director reviews, approves/disapproves application; h. Applicant claims decision/action from Records Division after payment of remaining 50% of processing fees. Publication of the Notice of the Filing of the Registration Statement The HLURB, at the expense of the applicant, shall cause the publication of the registration statement for the lease/sale of the project in two newspapers of

general circulation (one published in English and another in Filipino), upon finding that the project may be registered in accordance with the rules.

Application for License to Lease/Sell No owner or dealer shall lease/sell any disposable plot in the registered project without a license to lease/sell issued by the HLURB. Upon proper application, submission of the required work program, performance bond and payment of the prescribed license fee, the HLURB shall issue the license to lease/sell the plots in the project. Performance Bond The performance bond required for the issuance of the license to sell may be in any of the following forms: 1. A surety bond amounting to 20% of the development cost of the unfinished portion of the approved plan issued by a duly accredited bonding company; or 2. Real estate mortgage to be executed by the applicant as mortgagor in favor of the Republic of the Philippines as mortgagee over a property other than that subject of the application, provided that the value of the property shall be at least 20% of the unfinished portion of the approved plan; or 3. Cash bond equivalent to 50% of the development cost of the unfinished portion of the approved plan. For more information on the licensing and registration of memorial parks, please contact any of the following: The HLURB Regional Office, which has jurisdiction over the place where the project is located, or Rules and Standard Development Office Housing and Land Use Regulatory Board 2/F HLURB Building Kalayaan Ave., cor. Mayaman St. Diliman, Quezon City Tel. No.: (632) 924-3386 Fax No.: (632) 927-2724 E-Mail: [email protected]

7. INVESTING IN THE CONSTRUCTION INDUSTRY

The construction industry performance during the first quarter of 2004 has been cited as “the strongest since 2001”. This is fueled by strong economic growth, particularly in the real Gross Domestic Product, remarkable performance of the agricultural sector, continuing strength of the service sector, and expansion in the industry sector. Employment levels in the construction industry rose by 2.6% in April 2004 with a total of 1.79 million workers compared to the same period last year, generating about 46,000 more jobs as housing construction increased. Construction output registered an improved growth of 6.5% for the first quarter of 2004. Construction investment also grew 3.7% during the first three months of the year. Private construction also increased as demand for housing and trade establishments increased. Among the financial reforms that continue to influence the construction sector, specifically in housing, are: the extension of the Bangko Sentral ng Pilipinas rediscounting facility to socialized and low cost housing, among others; issuance of bonds by the Home Guaranty Corporation to support guarantee operations; increase in ceilings for socialized and low-cost housing to keep pace with the general escalation of prices; and the reduction of interest rates by the Home Development Mutual Fund (HDMF). Public construction, on the other hand, accelerated due to increased government expenditures in capital outlay as pump-priming activities in the countryside expanded. As of June 2004, a total of 5,913 licenses were issued to contractors for 2003-2004. Small contractors comprised the biggest percentage of the total contracting population with a 50.9% share, followed by medium-sized contractors (A&B) which accounted for 40.8% and large contractors (AAA & AA) with 8.3%. General Engineering (GE) contractors also increased, exhibiting a 58.5% share. General Building (GB) contractors consist of 32.7%, trade contractors constituted 3.1%, while the remaining 5.6% are specialty contractors. The Philippine Contractors Accreditation Board (PCAB), has likewise, issued special licenses to 31 foreign contractors, all categorized as AAA contractors. Construction Prospects

Due to improved investment climate and increase in housing construction, the National Economic and Development Authority (NEDA) forecasts that the growth in the construction industry will be between 5.0% to 5.8% in 2004. The housing backlog in 2001 rose to 2.1 million units of shelter. To address the backlog, about 500,000 housing units are targeted annually for the next 4 years. Pipeline projects under the Build-Operate-Transfer and other schemes are the following: Name of Project

Estimated Project Cost

Schemes

NAIA Expressway Project (Package I)

P131.3M

BTO

Manila North Harbor Modernization

P60.0M

BOT

To be determined

BOT

P1B

BT & BOO

P842.48M

-

P17.3M

BOO

P1.428M

BTO

Transportation

MIAA Cargo Terminal Project LRT Line No. 4 (MRT 4) LRT Line 1 Extension Northern Intermodal Transport Terminal Complex MRT Line 7

P859M

MRT 8 East Rail Line Project (Phase 1) Property Development General Santos Integrated Transport Terminal & Commercial Complex SSS Corporate Center

P2.7M

BOO

P141.6M

BOT

P100M

BOT

P70M

BOT

P6.4M

Concession

P34M

BOO

Environment & Power Metropolitan Waterworks Sewerage System Treated Bulk Water Supply Davao del Norte Integrated Water Resources Development Project Upgrading & Rehabilitation of Olongapo City’s Electric Power Distribution System Metro Cebu Water District (MCWD) Treated Bulk Water Supply

The Construction Industry Authority of the Philippines (CIAP) The Construction Industry Authority of the Philippines (CIAP), an attached agency of the Department of Trade and Industry, was created by virtue of PD 1746 on 28 November 1980, to promote, accelerate and regulate the development of the construction industry in conformity with national goals. It coordinates with government agencies that conduct business with or exercise regulatory powers over the construction industry. It acts as an umbrella agency over the following units:

1. Philippine Contractors Accreditation Board (PCAB) The PCAB is mandated to issue, limit, suspend and revoke contractor’s licenses, as well as upgrade the classification of licensed contractors that have the requisites of technical personnel, equipment and financial capabilities 2. Philippine Overseas Construction Board (POCB) The POCB develops, promotes and regulates the activities of the overseas construction industry. It aims to implement the state policy of actively encouraging construction activities that lead to the export of Filipino goods and services, particularly, technical and managerial expertise. 3. Philippine Domestic Corporation Board (PDCB) The PDCB formulates, recommends and implements policies, guidelines, plans and programs for efficient implementation of public and private construction in the country. 4. Construction Industry Arbitration Commission (CIAC) The CIAC was established under the Executive Order 1008 as a quasijudicial body tasked to provide the necessary facilities for the speedy and equitable settlement of construction disputes.

Contractor’s Licensing In order to promote the safety and protect the interests of the general public from risks of dealing with ill-prepared, unreliable and incompetent contractors, the CIAP maintains and implements a licensing system through the PCAB. Republic Act No. 4566 or the Contractor’s Licensing Law requires all persons/entities engaged in the construction contracting business in the country to be licensed to undertake such operations. Documentary Requirements for New License Application The following pertinent documents and information are to be submitted in support of said application: A. Legal

1. Duly accomplished PCAB Form Nos. 101a and 102 2. Certified True Copy of BTRCP Certificate of Registration with pertinent BTRCP Form No. 16 (for sole proprietorship) or Certified True Copy of SEC Certificate of Registration and Articles of Partnership/Incorporation and ByLaws and subsequent amendments thereto showing construction as a primary purpose 3. Authorized Managing Officer (AMO) Affidavit (PCAB Form No. 13) with a passport size picture of AMO 4. Original NBI clearance of Filipino AMO B. Financial 1. Audited Financial Statements dated within the last six (6) months immediately preceding the filing of application signed on each and every page by independent CPA and supported by the following documents, if applicable: •

For old companies, copy of the quarterly or annual Income Tax Return certified true by the BIR, covering the income reported in the Audited Income Statement submitted for the quarter or taxable year immediately preceding the filing of application, whichever is applicable;

•

Original copy of Bank Certification/Bank statement of account certified by Bank Manager of cash deposits as of the Balance Sheet date and Authorization to Depository Bank (PCAB Form No. 105);

•

List of land and building/s owned by the company and registered in its name (PCAB Form No. 106a) and Certified true copy of TCT including back page;

•

List of Construction and/or Transportation/Delivery Vehicles/Equipment/ Machineries/Plants owned by the company and registered in its name (PCAB Form No. 106b);

•

Certified true copy of the LTO Certificate of Registration and current Official Receipt of Registration of registrable Construction and/or Transportation / Delivery vehicles/Equipment reported;

•

Certified true copy of Deed of Sale for non-registrable construction equipment/machineries/plants;

•

Authorization to BIR and other agencies (PCAB Form No. 105a)

C. Technical 1. List of Sustaining Technical Employees – STE (PCAB Form No. 106c) supported by the following documents for each STE: •

STE Affidavit/s (PCAB Form No. 107) with a passport size picture/s of the nominated STE/s;

•

Certified true copy by of valid PRC ID of STE as licensed professional or original Certification of Good Standing from PRC;

•

Original NBI Clearance/s of STE/s;

•

STE Affidavit/s of Construction Experience (PCAB Form No. 108);

•

Personal Appearance Form duly accomplished and signed by the STE/s appearing before the designated officer of the PCAB or the nearest DTI regional/provincial office (PCAB Form No. 109)

Note: Original Signature of AMO on each and every page of the application forms including supporting documents except in the PCAB Form No, 109 is required. Processing of Application 1. The processing of License applications shall be made on a monthly batch basis. 2. The PCAB shall either approve or disapprove each application subject to subsequent approval of the CIAP. 3. The decision shall be communicated in writing to each applicant within ten (10) days from the date of such decision, and, accordingly, the license certificates shall be prepared for and issued to those whose applications were duly approved. 4. An applicant may file a written request for reconsideration within 30 days from receipt of notice of disapproval. Failure to do so shall be a ground for the Board not to entertain such request. Contractor’s Accreditation for Government Infrastructure Projects The Philippine Domestic Construction Board (PDCB) placed special emphasis on the task of contributing to the improvement of government infrastructure management aimed at ensuring an efficient and equitable contractual system in the domestic industry. The Implementing Rules and Regulations of PD No. 1594 governing infrastructure contracts provides a registration system for screening prospective contractors for government infrastructure projects to determine their general ability to undertake different types and sizes of projects. Classification of Government Projects Classification of Projects General Engineering A. Road, Highway pavement, Railways, Airport horizontal structures and bridges B. Irrigation and Flood Control C. Dam, Reservoir and Tunneling D. Water Supply

Major Agencies Involved DPWH, PNR, LRTA, DPWH, DOTC DPWH, NIA NIA, NPC, DPWH DPWH, LWUA

E. Port, Harbor and Offshore Engineering General Building A. Building and Industrial Plant B. Sewerage and Sewage Treatment/Disposal Plant C. Water Treatment Plant and System D. Park, Playground, and Recreational Work Specialties A. Foundation Work B. Structural Steel Work C. Concrete Pre-casting and Pre-stressing D. Plumbing and Sanitary Work E. Electrical Work F. Mechanical Work G. Airconditioning and Refrigeration Work H. Elevator and Escalator Work I. Fire Protection Work J. Waterproofing Work K. Painting Work L. Well Drilling Work M. Navigation Equipment and Instrument Installation N. Communication Equipment and Instrument Installation

PPA, DPWH, PEA NAIA, DOTC, NPC, NEA, DPWH, NHA, PPA, PAGASA LWUA DPWH DPWH, LGUs

DPWH, LWUA NPC, NEA NPC, NEA

DPWH, LWUA NAIA, DOTC DOTC, DPWH, PPA, PAGASA

Categorization of Contractors For each of the above types or classes of projects, a contractor shall be categorized on the basis of its evaluated capability to carry out contracts of different costs, as follows: Category Small Sub-Category A Sub-Category B Medium Sub-Category A Sub-Category B Large Sub-Category A Sub-Category B

Allowable Range of Contract Costs Less than or equal to P 0.5M Less than or equal to P 3.0M Above P3.0M up to P15.0M Above P3.0M up to P 30.0M Above P3.0M up to P50.0M Above P3.0M

Who May Apply for Registration The following may apply for registration as contractor: 1. Filipino contractors as defined in the IRR 2. Contractors forming themselves into a joint venture 3. Foreign contractors who are duly licensed by the Philippine Contractors Accreditation Board

Criteria for Registration To be legally qualified for registration with the Committee, a contractor must meet all the following requirements: 1. Possession of a valid Contractor’s License for the current year pursuant to RA 4566; 2. For a joint venture, a subscribed joint venture agreement making the parties jointly and severally liable for a particular contract and compliance with LOI 630 (at least 75% Filipino capital) and a separate Joint Venture License per RA 4566 on a project to project basis; and

3. In the case of foreign contractor, a special license duly issued by the Philippine Contractors Accreditation Board for a particular project and a certificate as bonafide contractor in their own country duly authenticated by their respective embassies/consulates. For more information on contractor licensing and accreditation procedures, please contact the following: Philippine Construction Accreditation Board Construction Industry Authority of the Philippines 4/F Jupiter I Building, 56 Jupiter St., Bel-Air, Makati Tel. Nos. (632) 895-4424 / 897-9313 / 895-4258 / 897-0869

8. AGRIBUSINESS ENTERPRISES The expansion of agribusiness enterprises is a profitable opportunity in the Philippines considering the vast natural resources that the country offers. The production of a wide array of agricultural land products and the millions of hectares of fishing grounds that are filled with marine life provide for various potentials, which can be taken advantage of, such as crop production, livestock production, meat processing, food processing and packing, etc. Investors can put capital in all stages of an agribusiness venture, including purchase of raw supplies, provision of up-todate machinery, construction of related facilities, financing and management of actual processing operations, training, transport of finished products, marketing and the like. The country’s infrastructure, telecommunications systems, international shipping ports and airlines, export processing zones and world-class industrial estates also offer agribusiness investors an attractive business environment. Department of Agriculture Investor Assistance The Department of Agriculture is the primary agency mandated to spur the flow of investments in agribusiness making agriculture the centerpiece of the Philippine economy. Its office for Agribusiness and Marketing Assistance Service (AMAS) spearheads its agribusiness investment activities. To effectively and efficiently deliver its services to agribusiness investors, the AMAS set up the Department of Agriculture Investment Promotion Unit Network (DAIPUN). The network consists of representatives from DA attached agencies, bureaus and regional field units and renders the following services:

• • • • • • • • •

Conduct and/or coordinate activities on agribusiness investment promotion Organize inbound/outbound trade and investment mission Arrange possible investment dialogue/matching Compliment activities with the National IPU headed by the Board of Investment Review investment project study Evaluate the credentials of the project proponent Assist investor in site visits Facilitate approval of permits, licenses, or other authorization required by the respective offices/agencies Review/streamline systems and procedures

Agribusiness Modality Options for Investors The following modality options are open to investors in commercial plantations: 1. Leasehold Agreement A contract is signed between a lessee (occupant of the property) and a lessor (owner of the property) stating the agreed rental fee and duration of use as well as the option for renewal or non-renewal. 2. Contract Growing /Growership Scheme In this agribusiness venture, the farm-worker-beneficiaries own the land but commit to produce certain crops for an agribusiness firm that contracts them to buy the product at pre-arranged. It is a form of production-marketing contract. In this scheme, beneficiaries should satisfy market standards at all times. 3. Contract Marketing Agreement A marketing agreement (MA) is signed between the cooperative and the agribusiness firm stating the agreed terms and conditions, such as volume and quality requirements for processing and/or raw product for export, price and mode of payment. The signing is usually made before the onset of the planting season in order to allow cooperative to have ample time for production planning. In some cases, the Purchase Order (PO), issued by the anchor firm, takes the place of an MA and can be used as a bank collateral. 4. Joint Venture

In a joint venture arrangement, the agribusiness firm and the cooperative agree to form a joint venture (JV) company. The JV leases the land from the cooperative while the agribusiness firm provides the technology, financing and management of operations. The cooperative members now become hired laborers in the farm or the processing plant. The market could be the JV company and/or the agribusiness firm. 5. Nucleus Estate Scheme An integration of contiguous individual lots to form a single estate or several nucleus farms. The management of the nucleus estate can be handled by a cooperative or a company. •

Cooperative-Managed Farm Set-up The company negotiates the lease of land to individual owners over a fixed term. The nucleus farm can be managed by the anchor firm as a “core” plantation. Management is centralized. The company handles the production, financing and management of the nucleus farm. The cooperative members are hired as laborers.

•

Cooperative-Managed Farm This is a grower-type arrangement between the company and cooperative. The cooperative is contracted as a supplier of raw materials for the company. In this case, the members of the cooperative surrender their right to operate the land they owned to the cooperative which subsequently manages the nucleus farm. The member-owner of the nucleus farm provides the necessary labor.

The following options are offered for agribusiness investments that involve construction of service facilities, such as terminal markets, slaughterhouses, postharvest facilities, irrigation systems, and other related infrastructures:

1. Build-Operate-and-Transfer (BOT) A contract is signed between a proponent (business operator) and the government (and/or landowner), which provides the terms and conditions of agreement. At the end of the term, investment is transferred to the government and/or landowner. The proponent is responsible for the total infrastructure development. To recover the investments and enable the business to operate profitably, the proponent, under the contract is allowed to charge rentals, fees, tolls and other charges for the use of the facility. 2. Build-Own-and-Operate (BOO)

The proponent is authorized to finance, construct, own, operate and maintain infrastructure or development facilities. In order to recover the investment as well as operating and maintenance costs, the proponent is entitled to collect rentals, fees, tolls plus a reasonable gain from facility-users. Proponents under this scheme may assign facility operators. 3. Build-Transfer-and Operate (BTO) A local government unit (LGU) commissions a private entity to build an infrastructure facility on a turn-key basis. After the satisfactory completion of the project, the title is handed to the implementing agency. However, the private entity will manage the operations under an agreement. 4. Rehabilitate-Operate-and-Transfer (ROT) An existing facility is turned over to the private sector for it to refurbish, operate and maintain under a franchise agreement covering a specific period of time. After the end of the franchise period, the legal title of the facility is returned to the government. This modality also refers to the purchase of an existing facility from another country and the manner of importing, refurbishing, erecting and consuming it within the host country. 5. Rehabilitate-Own-Operate (ROO) This modality option refers to the turn-over of an existing facility to the private sector for it to refurbish and operate with no time limit imposed on ownership, provided that the operator does not violate the conditions of the franchise. The operation of the facility can be perpetual. 6. Build-Lease-and-Transfer (BLT) The proponent is authorized to finance and construct an infrastructure or development facility and, upon its completion, to turn it over to the government agency or LGU concerned on a lease arrangement for a fixed period of time. At the termination of the lease, ownership of the facility is automatically assumed by the government agency or LGU. Incentives to BOI Registered Agribusiness Firms The Board of Investment (BOI) provides incentives to pioneer enterprise or agribusiness firms and non-pioneer agribusiness firms. A pioneer enterprise is a registered enterprise engaged in any of the following categories: • • •

•

Manufacturing, processing or production, and not merely assembling or packaging of goods/products or raw materials that have not been or are not being produced in the Philippines on a commercial scale Using a design, formula, scheme, method, process or system of production or transformation of any element, substance or raw material into another raw material or finished product that is new and untried in the Philippines Engaging in the pursuit of agricultural, forestry and mining activities and/or services, including the industrial aspects of food processing whenever appropriate, pre-determined by the Board in consultation with an appropriate Department and to be feasible and highly essential to the attainment of the national trust Production of non-conventional fuels or manufacturing of equipment that utilizes non-conventional sources of energy or converts to coal or other non-

conventional fuels or sources of energy in its production, manufacturing or processing. The pioneer enterprise is listed in the Investment Priority Plan of the BOI. Under the “pioneer status”, the foreign investor can own 100% while under the “nonpioneer status” the allowable ownership is only 40%. Priority Agribusiness Joint Venture Projects The Agribusiness and Marketing Assistance Service (AMAS), Department of Agriculture has compiled the list of Philippine agribusiness projects in post-harvest, processing and commercial production which are open to potential investors. It contains the project title, proponent, brief description, estimated cost, and collaboration desired by the proponents. The intention is to look for joint ventures/business partners in these agribusiness projects. Although the agricultural and fisheries sector remain to be the core of the Philippine economy, very few Filipinos are able to invest in commercial scale agribusiness due to lack of capital. The following are the identified potential investment ventures in agribusiness categorized in post harvest activities, processing and commercial production: POST HARVEST FACILITIES REGION/PROJECT/ PROPONENT/LOCATION 1. Sub-Zero Cold Storage and Warehouse, Ms. Virginia Salomon, Km. 171 Mc. Arthur Highway, Carmen, Rosales, Pangasinan

2. Cold Storage Facility for Vegetable Crops, Santiago City Development Corp., G/F Travelers Bldg., Centro East City, Isabela 3. Agro-Industrial Grains Complex, Mr. Alejandro C. Paciente, Manager, Farmers Multi-Purpose Coop., Poblacion, Tulunan, Cotabato

4. Seaweed Buying Station, Sulu Seaweed Growers Multi-Purpose Cooperative, Jolo, Sulu

5. Cold Storage & Warehouse, Mr. Manuel L. Tan, Molino Marine Products Corporation, 353 Bo. Molino 3, Bacoor, Cavite

PROJECT DESCRIPTION The proposed project is a cold storage facility for agricultural and marine products with a capacity of 2,400 metric ton or 720,000 metric ton per year. The cold storage has twelve rooms with holding capacity of 200 metric ton each. The project will serve as a cold storage facility for growers/farmers from the city and its neighboring municipalities. The project seeks to establish agroindustrial grain complex in Tulunan, Cotabato. The project will put-up two (2) units of grains drying equipment with a capacity of 10 tons per hour, 50,000 bag capacity warehouse, twin sack manufacturing facility and a mini-feedmill plant. The project aims to install a buying station that will serve as a venue for direct buying of seaweeds and seaweed products. This will minimize the control of traders/middle men buyer and enable the growers to receive higher price. The proposal deals with the establishment of cold storage and warehouse for products exported to USA, Japan, and Germany.

PROJECT COST (US$) 1.63 M

COLLABORATION DESIRED Funding

0.42 M

Financing

0.8 M

Joint venture, Market access

0.5 M

Joint venture, Procurement of Machinery & Equipment, Market access

0.6 M

Financing

6. Feedmill, Corn Drier and Silo: Expansion Project, Mr. Demosthenes Du, CAPICOR, Julio Pacana St., Cagayan de Oro City

7. Integrated Slaugtherhouse Cold Storage and Tannery, Mr. Arsenio G. Carcosia, Chairman, Midsayap Meat Vendors MPCI, Midsayap, Cotabato 8. Metro Cotabato Regional Agri Industrial Center, Ibrahim K. Guiamadel, DTI Cotabato City

9. Polypropyline (PP) Sack Making Plant, Hon. Virgilio L. Leyretana, Sr., Cotabato City 10. Farmers' Market and Shopping Center, Hon. Virgilio L. Leyretana, Sr., Cotabato City 11. Integrated Grains Post-harvest & Processing Center, Hon. Virgilio L. Leyretana, Sr., Cotabato City

12. Food Terminal, Hon. Virgilio Leyretana, Cotabato City 13. Post Harvest Facilities, Mr. Alejandro S. Paciente, Km 126 Farmers MPCI, Poblacion, Tulunan, Cotabato 14. Mindanao Cooperative Grains Complex, Mr. Primitivo F. Panogadia, Manager-North Cotabato Free Farmers cooperative, Inc., Capayuran Pigcawayan, Cotabato Province

The project seeks to expand existing corn drying and storage facilities in Puntod, Cagayan de Oro to Bukidnon to have operational capacity of 5,000 metric ton. In addition it will also expand operation of existing feedmill in Cagayan de Oro from10 mt/hr. to 20 mt/hr. including of pelletizing and extrusion machines. The project seeks to upgrade and expand existing slaughterhouse facilities (addition of 10 T storage facility and leather tanning facilities). The project involves the development of 129 hectares to an agri-industrial area (with water supply, drainage, sewerage, solid waste facilities, power/lightning standard factory buildings, Administrative buildings, security facilities, fire station, health center, etc.) The project deals with the establishment of a polypropylene (PP) sack making plant as container of agricultural products. The project will establish a farmers' market, a 6-level commercial center and a suitable parking area. The project is designed to process rice, corn and other grains within the 80 km. radius of Cotabato City. Estimated average yearly production of grains within the catchment areas is 1 M tons. The project is about integrated slaughterhouse cold storage facility for processing cattle, poultry and marine products. The project involves the expansion of existing post harvest facilities and services which include: grains dryer (20t/day) grains warehouse (50,000 bags), & plastic twin sack manufacturing (8M pcs./year). The project will establish a modern grains processing complex in a 2 hectare site located along the National Highway, Capayuran Pigcawayan and Cotabato. The site is very strategic in terms of its location and its accessibility to land, sea and air conveyances.

3M

Financing, Joint venture

1.1 M

Joint venture, Financing

33.2 M

Site developers Joint venture, Financing

298 T

Financing Joint venture

5.3 M

Financing, Joint venture

769 T

Joint venture, Financing

436 T

Financing, Joint venture

800 T

Financing, Joint venture

7.3 M

Joint venture, Market access, Technical expertise, Procurement of machinery & equipment

PROJECT COST (US$) 2.5 M

COLLABORATION DESIRED Joint venture, Build operate transfer scheme

PROCESSING REGION/PROJECT/ PROPONENT/LOCATION 1. MNLF Grains Complex, MNLF Central Cooperative, Municipality of Matalam, Cotabato

PROJECT DESCRIPTION The proponent will establish a grain complex in Matalam, Cotabato to produce great volume of grains that could spur economic development and provide livelihood in the province.

2. Natural Grade (PNG) Carrageenan Plant Expansion and Installation of an Integrated Fully Refined (TRC) Carrageenan Facilities, MCPI Corp., Tugbongan, Consolacion , Cebu

3. Integrated Abaca Plantation and Pulp/Paper Mill, Mr. Teodosio Cada, Department Manager, DBP, Region 8

4. Mango Processing, Siegfred Tomen Enterprises, Santa Cruz, Davao del Sur

5. Fruit Processing Facility, Fruit Industries Development Coop., Tacurong, Sultan Kudarat

6. Integrated Orchard Crops and Food Processing Plant, Kidapawan Federation of Diocesan Cooperative, Kidapawan City

7. Palm Oil Production and Processing, North Cotabato Rubber Development Cooperative (NOCORDECO), San Nicolas and San Vicente, Makilala, Cotabato Province 8. Integrated Coconut Processing, Cotabato Integrated Industries MultiPurpose Cooperative, Binoligan, Kidapawan, Cotabato City 9. Palm Oil Processing Facilities, Mr. Antonio C. Garcia, Vice Pres. Central Cotabato Oil Palm Growers, Tacurong, Sultan Kudarat

MCPI Corporation produces the Quality Refined Natural Grade (PNG) carrageenan (Kappa & Lambda) which is being used for processed meats, dairy, bakery, dessert, gels, beverages, canned pet food, personal care and other industrial products. MCPI plans to expand its product lines to include traditionally refined carrageenan (Lambda & Lota) which is used by textile, toothpaste and paint industries. The project consists of establishment of a 30,000 ha. of abaca plantation including a nursery and an abaca pulping and paper mill with a minimum rated capacity of 50,000 tons of abaca handicraft manufactured (handbags, hats, slippers, etc.) will be undertaken. The proposed processing plant is located in a special economic zone and falls under the jurisdiction of the Southern Philippine Council Peace and Development (SPCPD). It is situated at the ports, both Davao and General Santos City have international airports. The project involves the establishment of an integrated fruit (specifically mango) processing facility which will include vapor heat treatment of fresh mango for exports, mango puree and dried/candied mango. In a production of 50 metric tons per year from 1,000 hectares, about 20% will be processed into puree juice, dried candy, etc. and the remaining volume will be sold locally. The project will establish an integrated orchard plantation (yam, jackfruit, soybean, etc) and food processing plant in Kidapawan City. The plant will produce yam flakes, jackfruit purees, dried rice pulp, soya milk and flour, textured vegetable protein and full fat soybean meal. The proponent proposes the establishment of 2,000 ha of oil palm plantation including oil mill facility.

25 M

Capital funding

162 M

Joint venture, Compensation Agreement, Crop production , Subordinating franchise, Market access

1.25 M

Joint venture, Market access, Procurement of machinery and equipment

1M

Equipment purchase, Market access

6M

Joint venture, Market access, Procurement of machinery and equipment

200 M

Funding

The project will establish an integrated coconut processing plant that will produce coco fiber.

2M

Joint venture, Market access, Financing

The project will develop 10,000 ha. oil palm plantation and processing plant that will extract and refine oil. It will produce edible oil for food preparation and oleochemicals for industrial and commercial use.

4M

Market access, Technology

10. Halal Meat Processing, Mr. Abdullah D. Dimaporo, Prov'l. Governor of Lanao del Norte, Baloi, Lanao del Norte

11. Passion Fruit Processing, Bai Rachma Biruar Sinsuat, Parang, Maguindanao 12. Sugar Refinery Project, William & Company Phils., Inc., Tubod, Sapad and Salvador Lanao del Norte

13. African Palm Oil Production Processing Plant, Kutawatu African Palm Oil Agro-Industrial Ventures Municipal Development Council (MCDC), Pigcayawan, Cotabato 14. Balabagan Integrated Coconut Processing Plant, Dr. Edna B.S. Ogka, Mayor Lanao del Sur, Balabagan, Lanao del Sur

15. Integrated Coconut Processing Plant, Mindanao Processing Plant, Malabang, Lanao del Sur 16. Abaca Production and Processing Plant, Manobo Agro Industrial Estate Farm, Manobo, Cotabato

17. Organic Fertilizer Factory, Cotabato Sugar Multi-Purpose Development Cooperative, Matalam, Cotabato

18. Marine Fishery and Development Project, Pitogo Integrated Agro Marine Cooperative, Pitogo Bay, Kalingalan, Kalwang Sulu

The halal meat project requires feedlot and slaughterhouse facility which will be established in the Municipality of Baloi, Lanao del Norte utilizing a 2-hectare land. This will also include provision of machinery, equipment and office facilities. The proposed site is close to raw materials. The project will establish about 1,000 ha. passion fruit plantation and a processing plant. Passion fruit is a highly potential crop in processed form. The project will utilize new processing technology of integrating the boiling house and its auxiliary into a compact refined sugar factory. Source of raw sugarcane for the sugar refinery will be from the 10,000 ha. sugar plantation to develop during the first phase of the project. The proponent proposes to establish an African palm oil plantation in Pigkawayan, Cotabato including the setting-up of processing plants near the plantation site. The complex will produce 40 million matured nuts yearly with the following end products and byproducts: bristle and mattress fiber (4,320 tons), fiber board (500,000 tons), coconut flour (5,240 tons), pyrolygneous liquor (250 tons) and extra shells for fuel or other uses (4,500 tons). The proponent proposes to establish an integrated coconut processing plant to process the raw materials into coco coir, cocodust, foam booster and vinegar. This project consists of four components: Establishment of Abaca Plantation, Establishment of Abaca Semi-Processing units, Infrastructure Support and Mass Housing and Human Resource Development. This project proposed to produce a seaweed-based organic fertilizer in pellet form. It is from composite materials of organic source such as sugarcane bagasse or corncobs, animal manure and brown seaweeds. The use of organic fertilizer can lessen the dependence on inorganic fertilizer without damage to soil fertility. The project includes deep-sea fishing, fish culture and production, fish preservation and processing and marketing. The proposed project also includes buy and sell of cultured and preserved products and the policy of its marketing network.

2.8 M

Joint venture, Market access

0.88 M

Joint venture, Market access, Equipment purchase and expertise Financing, Capital investments, Marketing technology transfer

120 M

18 M

Joint venture, Soft loans

7.5 M

Joint venture, Financial infusion

1.04 M

Joint venture, Market access, Technology, Capital infusion

17.2 M

Joint venture, Soft loans

1.19 M

Financing

2.67 M

Joint venture, Market access, Technical assistance, Financing

19. Integrated Coconut Processing Center, Engr. Rolando T. Delfin, Sultan Kudarat Center, Isulan, Sultan Kudarat

20. Herbal Medicine Manufacturing and Processing Plant, Dr. Eduardo T. dela Fuente, Dela Fuente Herbal Farms, 156 Sinsuat Ave., Cotabato City 21. Rice Straw Board, William Valdez, DA-RFU III, San Fernando, Pampanga 22. Rubber Processing Plant, Ms. Meriaty Subroto, Investment Technology Division, Investment Services, Asia-Pacific Unit, UNIDO Email:[email protected]./ [email protected] 23. Fruit Processing, Packaging and Trading Center, Mr. Rex A. Rivera, President, Gen. Santos City Sarangani Fruit Cooperative, 11 Magsaysay Ave., Gen. Santos City 24. Palm Oil Processing Facilities, Mr. Antonio C. Garcia, Central Cotabato Oil Palm Growers, Tacurong, Sultan Kudarat

25. Mixed Spices for Export Processing, SF-PAJMAHS, San Flor Garments, Tibanga, Iligan City 26. Crumb Rubber Processing Project, Engr. Glicerio Hilario, Mindanao Agricultural and Rubber Growers Integrated Cooperative (MARGICO), Makilala, Cotabato 27. Feedmill Plant, Mr. Virgilio L. Leyretana, Sr., CITEC, Cotabato City

28. Integrated Corn Processing, Engr. Cader Mamburay, Muhajis Halal Foods Manufacturing and Marketing, 172 Lilod St., Marawi City 29. Organic Fertilizer Production, Prime Sultan Development, Corp., Tacurong, Sultan Kudarat

The project seeks to establish a 5km integrated coconut processing facility capable of producing refined edible oil with vinegar, charcoal, coconut flour and coconut meal or by-products. The project involves the establishment of a herbal medicine plant with a capacity of 50 M assorted tablets/month from a 20hectare herbal medicine plantation. The project seeks to establish a manufacturing plant of straw board. The project involves the establishment of a manufacturing facility to process rubber into finished/semi-finished products from over 4,500 has. of rubber plantation in North Cotabato. The project deals with the establishment of agricultural infrastructure facility - fruit processing/packaging plant and trading center. The proposal seeks to establish palm oil processing facilities to extract and refine palm oil from an estimated 10,000 hectares palm plantation in Sultan Kudarat, to be to be able to produce edible oil for food and industry. The proposal seeks to establish processing plant for of mixed spices (ginger, red pepper, leeks, onion and salt) for export. The proposal involves the establishment of a crumb rubber processing plant in Malarila, Makilala, Cotabato. The finished product is baled crumb rubber or crumb 20. The proposal involves the establishment of a feed-milling facility for the poultry/livestock industry in Cotabato City and nearby provinces. The proposed project is a medium sized corn processing plant with a capacity of 30,000 mt. of corn kernels. The project is a commercial production of organic fertilizer using compost and guano as base ingredients. The province of Sultan Kudarat has a significant deposit of guano.

800 T

Financing, Joint venture

0.66 M

Financing, Joint venture

10 M

Joint venture, Financing Financing, Joint venture

2.3 M

633 T

Financing, Joint venture

4M

Joint venture, Financing

526 T

Joint venture

0.2 M

Financing

0.2 M

Joint venture, Financing

1.04 M

Joint venture, Financing

0.5 M

Joint venture, Technical Expertise

30. Integrated Zero Waste, Agri-based Food/Cosmetics/Pharmaceutical Ingredients Processing Plant, Mr. Emmanuel C. Reyes, Tentay Food Sauces, Inc. Fax: (632) 833-4633

The project deals with the establishment and operation of a strategically located (Gen. Santos City) modern agri-based food, cosmetics and pharmaceutical ingredients processing plant, which will produce dried, dehydrated, powder concentrates and essential oil extracts from fresh, tropical fruits, vegetables, tubers, root crops, herbs and spices for domestic and international markets. The facility will use a mixture of the latest and effective imported and house grown processing technology and equipment for an economical size plant.

2.45 M

Joint venture, Processing

PROJECT COST (US$) 1.25 M

COLLABORATION DESIRED Joint venture, Financing

2.9 M

769 M

Joint venture, Equity contribution, Procurement of Machinery and Equipment, Marketing Assistance, Financing Financing

418 T

Financing

1.28 M

Financing

1.28 M

Joint venture, Financing

0.5 M

Joint venture, Financing

1.23 M

Financing, Joint venture Financing, Joint venture

COMMERCIAL PRODUCTION REGION/PROJECT/ PROPONENT/LOCATION 1. Eel Fattening, Mr. Fred Panisa, Cotabato City

2. Fish Pen, Datu Abubakar M. Halun, President, Business Center Tawi-Tawi, Bongao, Tawi-Tawi

3. Palm Oil Production, Socsargen Realty & Development Corp., Dadiangas North, General Santos City 4. Peanut Seed Production, Mr. Emmanuel B. Avancena, So. Frontier Farms, Nacalaban St., Cagayan de Oro City 5. Mega Integrated Agro-Livestock Project, Mr. Hong C. Lee, Lapasan Hiway, Cagayan de Oro 6. Crocodile Farming for Meat and Hide Production, Mr. Virgilio Leyretana, Sr., CITEC, Cotabato City 7. Chicken Egg Production, Mr. Virgilio L. Leyretana, Sr., CITEC, Cotabato City 8. Young Corn as Export Product, New Ultra MPCI Matanog, Maguindanao 9. Mango Production Intercropped with Jackfruit and Rambutan, Mr. Virgilio L. Leyretana, Cotabato City.

PROJECT DESCRIPTION The project will engage in eel production using modern technology. The project will produce about 1,190 mt. eel per year. Fattened eel will be marketed to Metro Manila and other urban centers of the province. The project is composed of deep sea fishing and other seaweed farming and trading. The project is expected to give decent source of income for takers and fishermen. Proposed products include groupers, milkfish, shrimps, tuna & seaweeds. The proposal seeks to establish 90,000 ha. oil palm plantation in South Cotabato, Sultan Kudarat, Saranggani and General Santos City. The project seeks to develop 500 hectares (SOCSARGEN including Cotabato, Davao Provinces, Misamis Oriental, Bukidnon, Zamboanga del Sur & Norte) for commercial peanut production. The project is an expansion of Mega Farm's existing hog operations from 1,400 sow level to 2,800 sow level. The project proposes to establish in a 5-ha. area a crocodile collection, breeding and culturing to be used for crocodile hide and meat production. The project proposes to raise 100,000 chickens (egg-layers) to fill the demand in the area including nearby provinces. The proposal deals with production of young corn in a 500 ha area. The project seeks to propagate & plant Cebu variety of sweet mangoes with jackfruit and rambutan in a 13 hectares area.

77 T

10. Fruit Production, Samirh Musali, Datalbao, MPCI, Columbio, Sultan Kudarat 12. Integrated Livestock Production and Marketing Project, Mr. Jovencio Bautista, Livestock Producer's and Marketing Coop. (LIPROMAC) Labo, Camarines Norte 13. Integrated Cutflower and Strawberry Growing Operations and Transport Facility, Mr. Sabado Walong, La Trinidad MPCI, Longlong, Puguis, La Trinidad, Benguet 14. Palm Oil Plantation and Refinery, Mr. Ibrahim P. Paglas III, Chairman, Datu Paglas, Maguindanao

15. Integrated Cooperative Mushroom Production and processing, Saka-Laya Cooperative, Toril, Davao City

The project proposal seeks to establish 300 ha. each of mango and durian plantation in Datalbao, Columbio, Sultan Kudarat. The project proposes to establish a fully integrated livestock growing operations including feedmill, breeding center, marketing outlet, research facility slaughterhouse and cold storage. The project is about the establishment of a fully cutflower and strawberry growing operations supported by post harvest collection center and transport facility. The plantation estate is located in the eastern portion of the municipality which is flat to undulating terrain with some hilly to steep slope. The target area for the plantation is 15,000 ha, which is own by the Paglas Corporation and some members whether individual or family own. The project seeks to establish a commercially cooperativized, sustainable mushroom production, processing and marketing organization.

1.74 M

Financing, Joint venture

0.7 M

Financing

0.6 M

Financing

32.5 T

Joint venture, Marketing, Technical Expertise, Financing

128 T

Financing

For further assistance and information in the establishment of agribusiness industries, please contact the following: Agribusiness Investment and Enterprise Development Division Department of Agriculture Rm. 108 Elliptical Road, Diliman, Quezon City Tel. No.: (632) 920-4073 / 920-2216 Fax No.: (632) 926-6434 E-mail: [email protected] Website address: www.da.gov.ph/agribiz/amas.html

9. EXPORT MARKETING The Philippine government is counting on exports to increase economic growth to as much as 4.5 percent annually. Exports account for about 40 percent of the country's gross domestic product. Overseas sales of electronic components, the country's biggest export, rose to 17 percent in September 2003 to $1.69 billion after 18 percent growth in August 2003. Shipments to the United States, which buys about a quarter of Philippine exports, rose 5.5 percent to $833.5 million, compared with a 5.4 percent increase in 2003. Exports to Japan, which accounts for about 15 percent of overseas sales, grew 11 percent to $437 million after 12 percent in 2003. The following are the major products for exports in the Philippines: § § § § §

electronics and semi-conductors shell products and jewelries abaca, manila hemp and fiber handicrafts coffee and cacao beans and other agricultural products

The government has established special economic and processing zones in various parts of the Philippines to encourage foreigners and former Filipino citizens to invest in the Philippines through production of goods for exports. Among the benefits afforded to investors in these zones are tax incentives, permanent residency status for foreigners, and government support through official development assistance. ONE STOP EXPORT DOCUMENTATION CENTER OF PHILIPPINE EXPORTERS CONFEDERATION, INC. The One Stop Export Documentation Center (OSEDC) houses under one roof the following government agencies engaged in the processing of Commodity Clearances and Certificates: • • • • • • •

Bureau of Animal Industry Bureau of Customs Bureau of Fisheries and Aquatic Resources Bureau of Plant Industry Fiber and Industry Development Authority Garments and Textile Export Board National Statistics Office

OSEDC clients are encouraged to attend the seminar on OSEDC to know the procedures and documentation required for accreditation. Documentation Requirements and Procedures

Export Declaration (ED) is a document required for every export shipment, whereby the exporter or his duly authorized representative declares and certifies the full particulars of a shipment. It is also a pre-loading document required by the Bureau of Customs to enable the exporter to load his goods from any of the customs ports for every shipment with or without exchange of foreign proceeds. 1. Pre-Loading Attachments a. Commercial / Pro-Forma Invoice (3 copies) b. Commodity Clearance (if needed) c. Certificate of Identification duly signed by the Customs Examiner • For products with imported raw materials • For products under repair • For imported products under re-export bond • For exhibition purposes (is applicable) d. Import entry (for returned shipments not coming back to the Philippines, e.g. defective items, wrong shipment, capital equipment indicating the payment of duties and taxes) e. Passports and packing list for personal consumption (photocopy) 2. Bureau of Customs Certificate of Origin (CO) is the declaration of the exporter, certified by BOC, that his exports comply with the original requirements specified under bilateral, regional or multi-lateral trading arrangements to which the Philippines is a party. Supporting documents: a. b. c. d.

commercial invoice bill of lading (non-negotiable signed by the shipping lines) copy of approved / processed export declaration amendments (if necessary)

Procedure: a. Exporter / Broker buys CO form to be accomplished in quadruplicate by the exporter / broker b. Exporter / Broker files CO together with the supporting documents and pays P115.00 BOC documentary stamp at Counter 3 c. Signing officer checks the accuracy and completeness of the documents and affixes her signature on CO d. Releasing officer assigns control number on approved CO and releases the same to concerned exporter / broker As per Customs Memorandum Circular CIC No. 182-96 GSP Form A bound for Canada and USA will no longer require the official certifying authorities to stamp and sign Certificates of Origin covering beneficiaries’ shipments. 3. Export Commodity Clearance

Export Commodity Clearance (ECC) shall refer to all pre-exportation requirements issued by the government agency other than those of the BOC to authorize loading. These agencies are: a. Bureau of Fisheries and Aquatic Resources (BFAR) – The BFAR is tasked with inspecting and providing Commodity Clearances and Health Certificates for the exportation of fish and fishery products prior to shipment. b. Garments and Textile Export Board (GTEB) – The GTEB was created to integrate and rationalize government policies and procedures governing the Philippine garments industry. It is in charge with the overall administration and allocation of export quota, processing and issuance of garments and textile export clearances, bonded manufacturing warehouse licenses, and authority to import raw materials. c. Bureau of Animal Industry (BAI) – The BAI prescribes standards for the quality of manufacture, importation, labeling, advertising, distribution and sale of livestock, poultry and allied industries. d. Fiber Industry Development Authority (FIDA) – All FIDA-licensed Grading-Baling Establishments (GBEs) are allowed to export fibers upon compliance with the standardization policies of the Authority. Fiber shall refer to any indigenous fiber derived from plants or from animals, such as hair, feathers and silk. It shall be denominated and interpreted according to its common and commercial significance and not its scientific nomenclature. e. Bureau of Plant Industry (BPI) – In issuing Commodity Clearance, the BPI- Plant Quarantine Service prevents the introduction of foreign pests into the country, prevent the further spread of pests already present in the country, and complies with the Phytosanitary requirements of the importing country. f.

Department of Trade and Industry – National Capital Region (DTINCR) issues Handicraft Certification (for European Union countries), Certification of Handmade Products, and Certification (for Austria).

For more information on requirements and procedures for export activities and marketing, please contact: Philippine Exporters Confederation, Inc. (PHILEXPORT) ITC Complex, Roxas Boulevard cor. Sen. Gil Puyat Ave. Pasay City Tel. Nos.: (0632) 833-2531 to 34 Fax. No.: (0632) 834-2353 Email Add.: [email protected] Website: www.philexport.net PHILIPPINE ECONOMIC ZONES Investment Incentives for Ecozone Developers / Operators •

Income Tax Holiday;

• • • • • •

Incentives under the Build-Operate-Transfer Law, which includes government support for accessing Official Development Assistance and other sources of financing; Provision of vital off-site infrastructure facilities; Option to pay a special 5% Gross Income Tax, in lieu of all national and local taxes; Permanent resident status for foreign investors and immediate family members; Employment of foreign nationals; Assistance in the promotion of economic zones to local and foreign locator enterprises.

Incentives for Ecozone and Information Technology Locators •

• • • • • •

Income Tax Holiday (ITH) or Exemption from Corporate Income Tax for four years, extendable to a maximum of eight years; After the ITH period, the option to pay a special 5% Tax on Gross Income, in lieu of all national and local taxes; Exemption from duties and taxes on imported capital equipment, spare parts, supplies, raw materials. Also breeding stocks and/or genetic materials or the equivalent tax credit on these items, when sourced locally; Domestic sales allowance equivalent to 30% of total sales; Exemption from wharfage dues and export taxes, imposts and fees; Permanent resident status for foreign investors and immediate family members; Employment of foreign nationals; Simplified import and export procedures;

Other incentives under Executive Order 226 (Omnibus Investment Code of 1987), as may be determined by the PEZA Board. For more information on economic zones, please coordinate with the following: Philippine Economic Zones Authority Promotions and Public Relations Group Tel. No.: (0632)551-3436 Website: www.peza.gov.ph SPECIAL ECONOMIC ZONES IN THE PHILIPPINES 1. SUBIC BAY METROPOLITAN AREA Subic Bay provides a wide range of investment opportunities for various industries - ranging from electronic communications technology to world class hotels, housing units and convention complexes on prime waterfront sites to shopping malls and high rise buildings. The SBMA continues to develop its Central Business District by devoting its 181-hectare area to commerce and tourism, allotting 5 hectares to a minibusiness park, 1.27 hectares for multi-story mixed-use project, 8,500 m2 additional office spaces, 15 hectares ship repair facility and waterfront residential area. Among the business enterprises in the SBMA are the following:

A. SUBIC GATEWAY This site, situated along Argonaut Highway, is ideal for a 12-hectare shopping mall, 8-hectare convention center and 1.5-hectare business hotel to house convention participants. The convention center is envisioned to be a twomodule type center with state-of-the art convention equipment. The first building would be a 3,500 capacity Plenary Hall with 20 meeting rooms varying from 200 to 1,500 seating capacity. The second module will be a 10,000 square meter multi-purpose hall as venue of local and international exhibits, trade shows, performances, concerts and other indoor assemblies. Adjacent to the Subic-Tipo Expressway will be the Gateway Business Hotel, intended for a 300-room hotel with restaurants, bars, banquet halls, a swimming pool and other recreational facilities of a three-star hotel. B. SUBIC BAY INDUSTRIAL PARK The Subic Bay Industrial Park (SBIP) is a 153-hectare industrial area managed by the Subic Bay Development and Management Center (SBDMC). Phase I of the SBIP covers about 105 ha. with the remaining area, consisting of about 48 ha., reserved for Phase II. Among the investors now located at the SBIP are Acer, Taiwan Hitachi, Teco Electric and Machinery, Contex Corporation, Taian Subic and Tailin Abrasives Corporation. Acer's main supplier of notebook peripherals, Catcher Technology (Philippines) Inc., has chosen to relocate in the park. C. SUBIC TECHNO PARK The Subic Techno Park (STEP) is a 60-hectare Philippine-Japanese joint venture industrial estate among the SBMA, Japan International Development Organization Ltd. (JAIDO), Toyo Construction Co. Ltd., Kawasho Corporation and The Bank of Tokyo Mitsubishi, Ltd. It features a Techno Center (Area A) with two standard factory buildings and an administration building, and Techno Park (Area B), an industrial estate. The administration building provides temporary office spaces to prospective locators. It also hosts one local bank (affiliate of Japanese bank) that provides full banking service to STEP locators. Pioneer locators in the area include Omron Corporation and Nihon-Inter Electronics. More companies engaged in electronic commerce are pouring in. Sankyo Seiki, viewed as the second largest facility in the Freeport, manufactures micro motors for hard disk drives & pick-ups for digital video disks. Juken Sangyo is engaged in wooden interiors. Philippine Interelectronics Corporation is a manufacturer of semi-conductors. Sanyo Denki is a world leader and the oldest Japanese manufacturer of high quality Fan Motors for electronic equipment cooling systems. D. ILANIN RESORTS Linking the Freeport to the Bataan Techno Park (BTPI) is the former NAVMAG, now known as Ilanin Forests, reserved for recreational and tourism use under the National Integrated Protected Areas System (NIPAS). The area is envisioned to be transformed into a Subic Bay Nature Park, a low density and high value resort complex which shall feature, among others,

adventure tourism activities, a Marine Park and other ecologically sound projects. The area has been subdivided into project sites: Ilanin II refers to the fourhectare Camayan Point. The area is an ideal site for a 400-room resort hotel complemented by watersport facilities. Ilanin III or the 5,000 sq. m. Commercial Tourism Area at Camayan Wharf is located at the center of Ilanin Resorts. The site may serve as a transportation depot and is a suitable location for souvenir shops, restaurants, health clubs and other services and amenities. Ilanin IV or the 3-hectare hidden beach may include facilities such as villas, hotels with restaurants, bars and swimming pools. Hidden Beach is partly forested and partly grassland.

E. HILL 394 Hill 394 is found in the eastern part of Ilanin Forest. Called as such because it used to be a secret helipad 394 feet above sea level, intentionally constructed in the forest for military secrecy. It is home to 51 species of birds and 151 species of trees. A panoramic view of the lush forests, Zambales and Bataan mountains can be enjoyed at the top of the hill. The hilltop is accessible by a four-wheel drive vehicle or is a 45-minute trail hike, and is perfect for picnics, trail ride, mountain biking, camping and bird watching. F. GRANDE ISLAND Located at the mouth of Subic Bay is the tempting Grande Island, a selfcontained recreational center off the shores of Subic Bay. Because of its location, it has held a significant role in the defense of the Philippines since the 16th century. It was the former Fort Wint, with a heavily fortified and armed outpost guarding the entrance of Subic Bay. Remains of history can still be found like the anti-aircraft battery bunkers and cannons. The island is being tapped for hotels, restaurants, golf course, and other recreational facilities. A ferry boat will bring you to this beautiful island. G. REDONDO PENINSULA This scenic 3,800-hectare peninsula has been earmarked for the development of subdivisions, golf courses, resort hotels and restaurants. In 1998, 40 hectares of Redondo was used for the construction of the US$125 million platform towed to Palawan for the Shell-Malampaya gas to energy project. This area is open to tourism, industrial and port projects. H. BATAAN TECHNO PARK The management and control of Bataan Techno Park, Inc. (BTPI) has been formally turned over to SBMA. The 365-hectare area can be utilized for the establishment of, among others, manufacturing, tourism-related businesses, centers for research and education, center for agriculture and aquatic resource and retirement villages. The development of the BTPI complex will enable its locators to gain access to Subic's world class facilities and infrastructure including the seaport and the airport. For more information on the SBMA, please coordinate with the following:

Promotions and Marketing Department Subic Bay Freeport Zone Building 225, Dewey Avenue, Subic Bay Freeport Zone Tel. Nos.: (06347) 252-4626 / 4627 / 4354 / 4216 Fax. No.: (06347) 252-4216 Email Add.: [email protected] Website: www.sbma.com 2. CLARK SPECIAL ECONOMIC ZONE A former U.S. military base, Clark’s location is right at the center of growing markers in the Asia-Pacific region. The zone’s modern infrastructure facilities, fiscal and non-fiscal incentives, professional support services, amenities, and other advantages make it an ideal place for investments. The 4,400-hectare main zone and 29,213-hectare sub-zone transforms the area into an airportdriven urban center with information and communications technology, aviation support, commercial trading, agro-industrial opportunities, tourism and other sectors. The following advantages are being offered in the Clark Special Economic Zone: • • • • • •

Access to Clark’s 2,500–hectare modern aviation complex designated as the country’s future premier gateway site Modern telecommunications facilities, power and water supply, waste management, vast road network and other infrastructure Waiver of local and national taxes, provision for 100% equity on most industries, duty free status and other fiscal and non-fiscal incentives Ready access to a pool of highly qualified, and English-proficient skilled labor Competitive lease rates on buildings starting at US $0.30 per sq. m. per month, available for short, medium and long-term lease period Access to several industrial and technology parks located within the zone

Among the industrial and technology parks located in Clark are the following: • • • •

PHILEXCEL Industrial Park Philippine Cyber Technopark Corporation Clark Premier Industrial Park Berthaphil, Inc.

For more information on the Clark, you may coordinate with the following: Marketing Department Clark Special Economic Zone Building 2127, C.P. Garcia St. cor. E. Quirino St., Clarkfield, Pampanga Tel. No.: (06345) 599-4652 Fax. No.: (06345) 599-2642 Email Add.: [email protected] Website: www.clark.com.ph

3. MACTAN EXPORT PROCESSING ZONE The Mactan Export Processing Zone (MEPZ) is located in Mactan Island, Cebu with access to seaport and airport. Over the past 16 years, the MEPZ has been consistently forging important links with the business sector whose interests cover a wide range of industries: electronics, computers, communication, precision instruments, metals, chemicals, garments and furniture. To date, MEPZ boasts of a total of 92 registered companies with 74 companies in the operational stage while others are implementing their projects. Export from the MEPZ in 1994 totaled US $663 million. Direct employment in the MEPZ covers more than 27 thousand workers and is one of the biggest employers in the country today. It is currently paying an average of P130 million in monthly salaries and wages. The MEPZ enterprises are confident that by maintaining their good relationships with both their employees and local government, they will continue to grow, providing increased employment in the region and further stimulating economic growth. Among the big exporters in the MEPZ are the following: Name of Company 1. Abtech Machineries and Engineering Services Corp.

2. AEI Enterprise, Inc. (formerly AEI Enterprise)

3. Alicia Ann International, Inc. 4. All Bags International Corp. 5. Al-Safe Phils., Inc.

Product/Activity Manufacture of various models of large diameter spiral steel pipemaking & processing equipment; reconditioning / refurbishing of highly specialized agricultural / farm implements. Manufacture of various kinds of handicrafts, shell crafts & novelty items, fashion accessories, costume jewelries & its components, beads & basketry. Manufacture of sewing baskets, knitting stands, knitting bags and scissors. Manufacture of various bags and luggages. Manufacture of optical casings for binoculars, cameras, etc. and woven industrial and occupational clothing.

Equity Participation 100% Filipino

100% Filipino

No Data Available

E-mail Address [email protected]

-

[email protected]

60% Filipino 40% German

-

99.99% French 00.01% Filipino

-

6. Asia Technologies Corp. 7. Autoliv Izumi Phils., Inc. (formerly Philippine Izumi Corp.) 8. Cebu AOI Development Technologies Corp. 9. Cebu Chip Connection, Inc.

10. Cebu Daiichi Corp. 11. Cebu Daiki Corp.

Sub-assembly of camera parts.

100% Filipino

Manufacture of automobile parts specifically steering wheels and other plastic parts. Manufacture of metal parts for riflescopes, sporting scope of cameras, overhead projector, copiers and fishing reels. Manufacture of fine gold bonding wires for industrial purposes.

100% Japanese ali.caballero@autolivasp.

Manufacture of molding dies and industrial plastic parts. Manufacture of ladies' and men's ready-towear garments such as suits, jackets, skirts, pants, sportswear, polos and blouses.

-

com

100% Japanese

-

99.995% Caymanian 00.002% American 00.003% Filipino 55% Filipino 45% Japanese

[email protected]

99.99% Japanese 00.01% Filipino

[email protected]

[email protected]

For more information on the MEPZ, please coordinate with the following: General Manager, Mactan Export Processing Zone 2 Field Office: ACOLAND, INC. 2F Administration Building, MEPZ 2 Amodia St., Basak, Lapulapu City, Mactan, Cebu Tel. No. (63-32) 3404-680 to 682 Fax No. (63-32) 3404-670 Cellphone: (0917) 322-5858 E-mail: [email protected] Website: www.acoland.com/acoland 4. BAGUIO CITY ECONOMIC ZONE Name of Company 1. Adriste (Phils.), Inc

Product / Activity Manufacture of high fashion leather gloves.

Equity Participation 80% SwissItalian 10% Swiss 10% Indian

E-mail Address [email protected]

2. Bay Sports Mfg., Inc. (formerly Baylock Manufacturing , Inc.) 3. Consolidated Industrial Gases, Inc. 4. Dae Gu Apparel Corp.

5. Fit In Trade and Services, Inc. 6. ITW Ampang Industries, Inc. (formerly Ampang Industries Phils. Co., Inc.) 7. MOOG Controls Corp. (Phil. Branch) 8. Omed Manufacturing Corp. 9. Pycon Technology (Phils.), Inc. 10. Tara Designs (Formerly Tara of Manila) 11. The Norwegian Collection, Inc. 12. TI (Phils.), Inc. (replaced Texas Instruments (Phils.), Inc.)

Manufacture of door answering machines, alarm clocks, other security devices & other electronic devices and, and / or parts and components. Manufacture of liquid gaseous nitrogen. Manufacture of knitted sweaters.

Repair and maintenance of PCB (burn-in-board). Manufacture of unplasticized PVC shipping tubes for use as packaging material for semiconductor industries.

90% Filipino 10% German

[email protected]

60% Filipino 40% Australian

[email protected]

[email protected] 99.99% Korean 00.01% Filipino 100% Filipino

[email protected]

100% American

[email protected]

Manufacture / assembly of service components. Manufacture of plastic trays to be used for repackaging of semiconductor products. Repair and maintenance of PCB (burn-in board). Manufacture of high quality embroidered table linen, bedroom and bedroom linen.

100% American

[email protected]

100% Japanese

[email protected]

100% American

rfiguracion@pycontech. com

100% Canadian

[email protected]

Wood home decors and gift items.

99.85% Norwegian 00.15% Filipino 100% American

[email protected]

Upgrading of test and quality production processes and production of Quad Flat Pack (QFP).

[email protected]

For more information on Baguio City Economic Zone, you may contact:

Officer-In-Charge Baguio City Economic Zone Loakan Road, Baguio City Tel. No.: (06374) 447-3334 / 3330 Fax. No.: (06374) 447-3331 / 3683 Email Add.: [email protected] 5. BATAAN ECONOMIC ZONES Name of Company 1. Allen Garments Corporation 2. Almatech Manufacturing Corp.

3. Arts 21 Corp. 4. Bahrain Fiberglass International (Phils.), Ltd. 5. Biggy & Bernie Mfg., Inc. 6. Camp Summit Corp. (formerly c. Yusung Industries, Inc. b. Kor-Crest, Inc. a. Majesty Wear, Inc.) 7. Cases International Phils., Inc. (formerly S. Bobelock Enterprises) 8. Chun Chiang Enterprises Mfg. Co., Inc. 9. Composite Designs Technologies, Inc.

Product/Activity Manufacture of garments and blankets. Manufacture of anodized / powder coated frames for all kinds of sporting bags, child carriers, strollers, harness snowshoes, etc. Manufacture of textile and beaded / sequined bags. Production of glass reinforced plastic products, environmental plants and marine products. Manufacture of embroidered patches, symbols and insignias. Manufacture of heavy garments such as skiwear, pants, jogging pants and other similar products.

Equity Participation 97% Taiwanese 03% Filipino 60% Filipino 40% Korean

E-mail Address

100% Filipino

[email protected]

100% British

[email protected]

91% Filipino 09% Chinese

[email protected]

97% Korean 02% Filipino 01% Chinese

-

Manufacture and assembly of musical instrument cases.

100% American

Manufacture of wearing apparel such as men's and ladies' trousers, etc. Manufacture of fiberglass reinforced products such as boat, shower cabin and boat accessories.

99.62% Taiwanese 00.38% Filipino 95% Bahraini 05% Filipino

-

[email protected]

[email protected]

-

10. Crismina Garments, Inc. 11. Da Won Manufacturing Corp. 12. Dong-InEntech K1, Inc.

Manufacture of denim jeans, jackets and woven trousers for men and ladies. Manufacture of high frequency embroidered products and patches for footwear and nonwearing apparel. Manufacture of various types of sporting bags, backpacks and garment products. Manufacture of golf bags.

No Data Available

[email protected]

40% Korean 60% Filipino

-

97% Korean 03% Filipino

[email protected]

13. Dong-In60% Filipino Sundara Phils., 40% Korean Inc. 14. DunlopManufacture of tennis 64% British Slazenger balls. 36% (Phils.), Inc. Australian (formerly International Sports Co. (Phils.), Inc.) For more information on Bataan Economic Zone, please contact: Zone Administrator Bataan Economic Zone Mariveles, Bataan Tel. No.: (06347) 935-4009 / 4004; 731-3272 Fax. No.: (06347) 561-2449 / 2451 Email Add.: [email protected]

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10. RETAIL OF OIL PRODUCTS The Philippines is a major consumer, although minor producer, of gasoline and oil products. Its growing population and increasing number of industries demand a large bulk of these products to be able to continue and sustain its activities. There has been a monopoly of gasoline and oil production in the past years by the three biggest oil players, Petron, Shell and Caltex. In the last 5 years, however, small industry players like Seaoil, Flying V, and Unioil were able to enter the industry because of the Oil Deregulation Law. Their entry has paved the way for competition and provided more opportunities for small businesses. Other than gasoline and oil production, the companies ventured into other business activities such as franchising, and operation of gift and grocery shops. For example, Petron has “Treats” and Caltex has “Starmart”. An individual who wants to invest in the gasoline station business now also has an opportunity to be in the retail of grocery, gift and other items. There are also opportunities in energy production, particularly in generation of electricity. Electricity demand in the Philippines is expected to grow by around 9% per year until the end of the decade, necessitating as much as 10,000 MW of new installed electric capacity. The Philippines is the world's second largest producer of geothermal power, and has a strong potential for wind generation. A. Petron Corporation Petron is the Philippines’ leading oil refining and marketing company. Its refinery in Limay, Bataan has a capacity of 180,000 barrels per day – the largest in the country. It can process imported crude oil into a full range of petroleum products. It also operates a fully automated lubeoil plant in Pandacan.

Today, Petron supplies more than one-third of the country’s all requirements. It sells fuel oil and diesel in bulk to customers in power generation, construction, land and marine transport, fishing, and various manufacturing sectors. It also supplies jet fuel to airlines. Likewise, it retails gasoline, diesel and kerosene to motorists, public transport operators, and sells its own LPG brand to consumers through a dealership network. Almost half of Filipino households use the LPG brand “Gasul”. Petron also offers motorists shopping convenience through convenience stores called “Treats”. There are now over 32 Treats stores located in selected service stations all over the Philippines. Petron Suppliers’ Accreditation Procedure 1. Prepare a Letter of Intent addressed to Manager Materials Procurement and Services Department Petron Corporation 32nd Floor, Petron Mega Plaza 358 Sen. Gil Puyat Avenue, Makati City 2. Include the following data in your letter a. Company background, including nature of business b. Product lines carried (identifying exclusively distributed items) description / brand name / source / (name and location of principal) c. Companies supplied by your company for the past 5 years. Indicate telephone numbers and contact person d. List of major suppliers e. Bank references f. List of equipment 3. Attach the following documents a. Agreements of distributorship for the exclusively and authorized distributed products b. Documents (purchase order, invoice, delivery receipt) showing your experiences / transactions with companies you listed as requested c. One page, blank original invoice with VAT registration d. Brochures or manuals for products being offered (2 sets) e. Certification of authentication from the Foreign Service of the Philippines (for exclusive distributor only) For certain product lines, submission of product samples for testing by end users may be tested. B. Seaoil Philippines Over the years, Seaoil has continuously served the bulk of the fuel requirements of multinational corporations, as well as those in the grass roots level. This long and vast experience has equipped the company with an enriched knowledge and understanding of the international and local market. As a result, the company is able to produce innovative products and services

tailored-fit to the needs of the market, thus remaining uncontested in its claim as the leader among the independent oil companies. In 1980, Seaoil took a bold step towards its development when it opened its first distribution depot facility in Mandaluyong, serving industrial requirements for storage of bunker fuel oil. Later on, additional tanks were constructed to serve the varied storage requirements of local and multinational companies. What is in store in being a Seaoil franchisee? • • • • • •

The Seaoil Station conforms to the pre-set designs formulated by Seaoil’s highly-skilled architectural team. 24 hour technical support from Seaoil's Technical Service Group. A steady supply of competitively-priced, high quality petroleum products that would ensure attractive margins and consistent volumes. Full marketing support and personalized service from Seaoil's aggressive Reseller Department. The steadfast commitment of Seaoil Philippines Incorporated to support the growth and development of the business. Acceptance into the exclusive family of successful Seaoil Dealers.

How to get a Seaoil franchise? • • • •

• •

Submit a letter of intent to Reseller Project Coordinator stating one’s desire to become a Seaoil Dealer. Secure and fill out a Dealer Application Form. Provide a photocopy of one’s Community Tax Certificate to be used in executing a Dealer Supplier Agreement and Equipment Lease Contract. Provide a photocopy of the TCT covering the lot area of the proposed station site along with a vicinity map showing its location. If the franchisee plans to locate the station on someone else's land, include a photocopy of the Lease Contract entered into (all lease contracts should have unexpired life of at least ten years). Submit a Bank Certification and/or Financial Statement indicating cash and/or assets amounting to at least 3 million Pesos. Present a business plan indicating the target market and the amount of volumes intended to be generated or ask Seaoil Reseller staff for a basic outline.

Once the application to become a Seaoil dealer is approved, the franchisee will be provided with the following to get the business started: • • • • • • •

Brand-New Underground Fuel Storage Tanks High-quality Fuel Dispensing Pumps Highly visible Seaoil signages Detailed Architectural Plans and Engineering Drawings Attractive Seaoil promotional items A basic Operations and Standards Manual to help the franchisee during your initial stage of operation A special training course for the employees regarding effective forecourt operations

Details of the Dealership Agreement and its pre-requisites shall be discussed with the franchisee. When all the requirements have been complied with, the

franchisee shall be asked to submit at least 10% of the Dealership Fee to fund the actual evaluation of the proposed site. For more information, please contact the following: Marketing Department Ground Floor, Meridien Bldg. #29 Anapolis St., Greenhills, San Juan, Manila Tel. No.: (632) 723-5272 Fax. No.: (632) 531-6462 or 933 Claro Castañeda St., Brgy. Namayan, Mandaluyong City Tel. No.: (632) 531-9051 to 55 Fax. No.: (632) 532-6462 C. Pilipinas Shell The Shell Marketing Retail of Shell Philippines oversees the retail trade and Shell’s national service station network, and offers products and services to our customers which includes: Shell fuels and lubricants, Select convenience stores, Proserve lubrication service and Rainbow carwash. It offers the following services to potentials retailers and dealers: 1. Shell Brand and other Trade Marks 2. Location - site selection and market studies 3. Layout and Fitting out service station 4. Building and equipment 5. Operating Standards 6. Training - Retailer and staff 7. Procurement Programs 8. Pre-opening Assistance 9. Grand opening assistance 10. Marketing Strategies 11. Research and Development 12. Business Counseling Retailers of Shell products may expect to have a return of investments by 35 – 45% in 2-3 years with opportunity for business upgrading. A retailership agreement covers a period of three years, and is renewable upon evaluation of the retailer’s performance. Shell does not impose a franchise fee. The initial investment usually amounts to P2-3 million, termed as Retailer’s Fee, and covers the following: 1. 2. 3. 4.

stocks on fuels (2-3 day stock cover) stocks on lubricants (1 month cover) stocks in the Shell Shop/Select lube/washbay equipment (change oil equipment, car washer, tools, vacuum cleaner and others) 5. initial operating expense (salaries, utilities, uniforms, business permit and others) 6. power generator 7. allowance for provision of in house credit

The Application Process Asia Corporate Select (ACS) handles the pre-screening of all applicants and recommends to Shell qualified applicants. Stage 1 1. Attend the applicant’s briefing and pay a processing fee of P3,300.00 (VAT included) for Stage 1 processing fee. 2. Third party to do Credit and Background investigation. 3. Applicant will be scheduled to take a Psychological Examination. ACS will inform applicant regarding the schedule of psychological examination. Stage 2 1. For applicants who pass Stage 1, they shall undergo an “In-depth interview” and pay P3,300.00 (VAT included) as Stage 2 Processing fee. 2. Home interview will be conducted by ACS at applicant’s residence. Stage 3 1. For applicants who pass Stage 2, they shall be interviewed by Shell’s Retailer Selection Panel (RSP). 2. All applicants who pass the Retailer Selection Panel (RSP) will be entered into the “Active Retailers Pool” and pay P5,500.00 (VAT included) as processing fee for Stage 3. 3. All applicants in the “Active Retailers Pool” shall await station availability. 4. Retail District will choose from the pool of candidates to fill any requirements for new Retailers. They shall be interviewed by the Retail District to confirm if he is FIT for the trading area where the available station is located. 5. The chosen applicant will then undergo an OJT program for one (1) month and pay P10,000.00 (VAT inclusive) as Training Fee under Stage 4. 6. Applicants who pass the OJT program will be formally appointed by the Retail District as Retailer of a specific service station. 7. Shell retains the prerogative of appointing qualified applicants. For more information, please contact the following: Dealer Development Manager – Philippines Retail Operations Pilipinas Shell Petroleum Corporation Shell House, 156 Valero Street, Salcedo Village, Makati City Tel. Nos.: 0917-324-9417; (0632) 816-6501 loc. 6883 Email Add.: [email protected] Website: www.shell.com.ph

11. INVESTING IN A FRANCHISE Franchising is a business method whereby a franchisor (business owner or manager) allows a franchisee (person or entity) to market products or services under its name and trademark, and in strict adherence to a system he prescribes. Among the benefits are: •

Minimized risk of business failure and higher chance of success;

• •

Savings on advertising costs with the use of a recognized trademark and, pooling of resources with other franchisees; and Provision of detailed training and help by the franchisor to the franchisee and staff.

Who may avail of franchising opportunities under Order Negosyo • •

Any interested individual, either you or any of your family member/s, or any group of individuals who may pool resources together; or A Filipino based or working abroad who wants to put up and operate his own business here in the Philippines, as well as, those who are planning to return to the Philippines.

How much investment is needed Investment is dependent on the nature of the chosen franchise business. Investment could range from as low as P200,000 to as high as P4 million. (The initial investment to put up a Jollibee franchise ranges from P15M to P30M [US$300,000 to US$500,000] depending on the store size and model. This includes construction of the store, kitchen equipment and facilities, furniture and fixtures, air-con system, signage and pre-operating expenses. Return of investment is usually between three and five years.) Factors that affect investment size are: • • • • • • • • •

Size/area of establishment Location Equipment Outlet type Stock inventory Office / space rental Insurance Permits and licenses Other working / operating expenses

In general, franchise investment includes: • • • • • • • •

Franchise fee Marketing study Store design Layout assistance Training programs Leasehold improvements ( outlet construction ) Equipment Pre-opening marketing expense, and pre-opening supplies

What assistance does the Mother Company extends The franchisor or the Mother Company will provide continuing support to its franchises including the initial training program. Before the franchisee gets started with his business, he will undergo a Basic Operations Training Program (BOTP). This, along with other programs, will enrich the franchisee's management and analytical skills needed in the operation of the restaurant. The full time training program lasts for 3 months and is conducted in a designated training store.

Other forms of assistance include: • • • • • • •

Store and layout and design, equipment specifications, furniture and fixtures construction management. Creative advertising and marketing programs Product development Manufacturing and logistics facilities Consultative services for operations Manpower and personnel Recruitment and training of management team

How much is the expected profit Income from the business is dependent on a number of factors such as: location, market condition and type of supervision, advertising and marketing. Depending on the franchise business, recovery period can be anywhere from 6 months to 36 months. What are the basic requirements in applying for a franchise • • • •

Letter of Intent (LOI) - containing the exact address of your proposed site, your exact mailing address, contact numbers, etc. Vicinity Map of Proposed Site - for on-site evaluation Legal document certifying applicant's ownership of the site Detailed resume or bio-data FRANCHISE REQUIRING INVESTMENTS BELOW P500,000.00

REYES HAIRCUTTERS

PARCEL SELECT

NACHO KING

ZAGU

Benefits/ Advantages / Nature of Investment

•

•

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Fastest growing franchise in salon needs nationwide High market demand and less capital investment Established salon operating system with proven prototype Supplier network and advertising and promotional support Sufficient area for growth and realization of return of investment Continuous training of staff Easy management system

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The Parcel Select outlet concept meets the personal and business needs of consumers with a diverse array of mailing, shipping, expedited deliveries and air courier, and other business services-all in one convenient location. Handles 48% of the world's mail volume With fully automated Track and Trace system With 24hours7days a week support website Operates a transport and delivery fleet of 202,000 vehicles Servicing more than 265 countries worldwide Transports mail by air (15,000 commercial airplane

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Low investment and zero royalties for Mini-Carts Unique Nacho King is the leading name in Nachos and Toppings. It is the first company that provided toppings to nachos and it also provides other products such as tacos, Mexican-style pizza and sweet pie. Fast growing number of franchises nationwide, which currently is pegged at 150 franchises. A franchisee is not limited in just having one or two carts as long as he can physically and financially manage the operations of the carts Established brand name. Nacho King has been in operation since 1995 Easy to

•

•

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A well-known brand in the pearl shake business Provides preoperation training and continuing support services. Marketing and advertising support will be provided by the company, as well as, continuous research and development of its products. No Royalty Fee

Application 1. Letter of Intent with Requiremen 2X2 ID ts picture and sketch of proposed site/location 2. Sole proprietor or 60% ownership of company or corporation 3. Financial capability a. Able to shoulder the franchise fee, initial cash investmen t and working capital requireme nt of Php1M or less 4. Full Time commitment a. Motivatio n to succeed and entrepren eurial spirit b. Successf ul track record on people handling skills and manage ment c. Willing to work within

Refer to business space and site location requirement

1. Attendance to a Business Opportunity Presentation scheduled every Saturdays at 10am to 2pm 2. Filing of Application Form and Submission of necessary requirements a. Community Tax Certificate b. Tin Number c. Location Map d. Documents showing financial standing or proof of income (at least 2) • Within 3 mos. pay slip • Latest Income Tax Return • Within 3 months bank statement • Within 3 months credit card financial statement

1. Personal appearance to the Head Office 2. Letter of Intent including the desired area/site 3. Endorsement letter (malltype) 4. Other requirements are to be discussed directly with the company

Site/locatio n requirement

• •

Minimum of 60 square meters Significant pedestrian traffic all throughout the week

A business space or a present business located within business/comme rcial areas, malls, universities, or any high-traffic trading areas. A minimum area of 10 sq. m. or allocated area to receive mails and packages. Parcel Select outlet has a protected territory that ensures no other Parcel Select outlet will be placed in the immediate territory. However, determination of size of protected territory varies per location. This is subject to zoning and market research, determining the volume of business that can be generated per immediate area.

• •

Mini cart = 2 to 3 square meters Mall cart = 4 to 6 square meters

Minimum area of location is 2 x 2 square meters for mall and road type

Investment Costs

1. Franchise fee: Php200,000 • Includes use of name, service marks, salon system, staff evaluation and training, salon design and other services that are incidental to franchise operation 2. Initial franchise deposit: Php10,000.0 0 • Valid for 2 months; nonrefundable 3. Security deposit: Php50,000.0 0 • Refundable after the term

The estimated initial investment is ranging from P200,000 to P250,000 Breakdown: 1. P75,000 for 1 year accreditation 2. P25,000 for training 3. P50,000 for Initial Marketing Supplies and Inventories 4. P20,000 consumable deposit for Domestic Shipments 5. P30,000 consumable deposit for International Shipments 6. P50,000 budget for fax machine, weighing scales, office supplies, minor improvements *Actual costs vary depending on individual locations and circumstances.

Mini-Cart = P32, 500.00/P42, 000.00 Mall-Cart = P149, 000.00 with monthly royalty of P2, 250.00

Franchise Fee: 1. International Franchise = US$5, 000.00 2. Local Franchise = P24, 000.00 + P25, 000.00 as cash bond to be applied for goodwill, repair and commitment. The cash bond is refundable upon termination of agreement. Other Expenses: Initial Expenses Construction or Rental Deposit Signage Equipment Inventory Uniforms Training Insurance Business License/Permit Working Capital Salaries Utilities Maintenance and Repairs Supplies

Return of Investment

6 months to 2 years

Not indicated

4 months or shorter depending on the following factors: management location marketing

Not indicated

Franchise Term

5 years

Not indicated

Not indicated

Contacts and Addresses

Reyes Haircutters Franchise Director #2 Anonas St., Proj. 3 1102 Quezon City Philippines

Tel. Nos.: (632) 8678055/56/78/79

Franchise is nontransferable. Observance of standard pricing among Nacho King franchises with the approval of the Company. Nacho King Poblete Compound Interior 343 Interior, West Service Road Sun Valley, Paranaque City

E-mail Add.: [email protected]

Tel. Nos.: (632) 912-7359 (632) 913-6250 (0917) 479-6532 (0979) 773-3856

Tel. No.: (0632) 821-7986 Telefax: 8221935, 824-0029

Zagu Manager, Sales Department 12 Brixton St., Barrio Kapitolyo, Pasig City Tel. No. (02) 687-4403 Fax No. (02) 687-4424 E-mail: [email protected]

Telefax: (0632) 91366252 Email: [email protected]

FRANCHISE REQUIRING INVESTMENT OF P500,000.00 – P2,000,000.00

MR. DONUT

CANDY CORNER

MINI-STOP

MR. QUICKIE

Benefits/ Advantage s/ Nature of Investmen t

Mister Donut has been in the Philippines for more than 20 years. A US born brand, Mister Donut has gone a long way in providing customers not just great donuts and coffee. At present, it has more than 1,200 outlets nationwide. A well-known international food brand with strong TV advertisements and effective sales promotions Requires low capital investment (as low as P220T) and low space requirement (min. of 4 sq. m. for cart spaces) It requires no royalties and no advertising fee on the gross sales or any other hidden charges

Low risk and hassle free investment

Small capitalization requirement

36 imported candy varieties that are sold at an average of 45% discount

Independent Entrepreneurial management

The only professional bags, shoes and other leather accessories repair in the country

Business Experience not necessary

All-season recession-proof business

Full Franchiser's support through training programs, advance business systems, distribution center and store operation guidance

Over 165 outlets nationwide

Very low Royalty Fee - 3% of the Monthly Gross Sales + 1% Marketing Fund Leading Retailer of Candies and Confectioneries Provincial operation is available nationwide Long shelf life of products, usually between 6 months to 1 year for most of the products. For chocolates, shelf life is between 3 mos. to 8 months

Start-Up Franchise Package for a Candy Corner Cart Operation = P259, 750.00 • 18 candy Easy to operate bins (with or No Cooking and w/o no refrigeration dividers) requirements • 1,000 pieces of Free delivery of candy bags goods to the • Cart with franchisee’s Panaflex shop. A special signage arrangement can • Inventory in

A store is operated by at least 8 store personnel Investment includes construction and renovation costs of the store, signage, minor equipment, and merchandise.

Applicatio n Requirem ents

Letter of Intent addressed to the Business Development Manager, which contains the following: •

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Applicant's interest to be a franchisee of Mister Donut Applicant's address, contact numbers and e-mail (if any) Proposed location address and vicinity map (if any)

Letter of Intent, which includes area of interest, addressed to: President Candy Corner Franchising Corp. No. 3 E. Rodriguez Jr. Ave. Bagong Ilog, Pasig City *Please include at least three desired areas. Ÿ

Comprehensi ve Resume/Pers onal Information Sheet of the Applicant

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Must be between the ages of 21 and 60 years old

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Willing to directly manage the operations of the store

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Financially capable to invest

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Send Letter of Intent to:

Robinsons Convenience Stores, Inc. Franchising Division 3rd Floor Fortune Building 144 Pasig Blvd., Pasig City E-mail: [email protected]

Fax No.: (0632) 672-0923 •

Fax a vicinity map or sketch of the site with details, i.e. store size, for a feasibility study

Letter of Intent with sketch of location

Site/locati on requireme nt

Heavy pedestrian foot traffic, like jeepney, tricycle, and bus terminals, public markets, shopping malls, groceries, school canteens, churches, lobbies of office buildings, etc.

Shipping cost for provincial areas are to be shouldered by the franchisee. Although shipping costs have been proven to be minimal. Provincial sites are subject to ocular inspection and evaluation of the company

Ministop stores require a minimum of 80 square meters and maximum of 120 square meters Ministop can provide a location for a prospective franchisee

Not indicated

Investmen t Costs

Capital P280, 000.00 = investment for a new setup, cart Mister Donut system Franchise varies according to the - P500, 000.00 = type of shop best counter system fit the proposed location. - P1M to P1.5M = full size store Indoor Take Out Booth Approximately P220T for indoor spaces measuring approx. 4-6 sq. m. (E.g. cart spaces inside malls) Take Out Shop Approximately P400T for enclosed commercial spaces measuring 4-9 sq. m. Dine In Shop Approximately P700T or higher (depending on store space and extent of construction and renovation). Mister Donut Dine in Shops require a floor area of at least 25 sq. m. (The figures above are inclusive of the franchise fee, security deposit, display showcase, signage, and equipment to be

P1.2M to P2.8M depending on the franchise package

Minimal capital investment required Loan assistance - helps you secure a franchising loan from Bank of Southeast Asia (BSA) or any other bank In-house financing program applies only to 56% of the total cost of machinery and does not include the franchise fee and renovation costs. Amortization schedule are as follow: 12 month, 24 month and 36 month Franchise fee: P200,000 Equipment: P450-800,000 With training of personnel (cashier and sapatero)

Return of Investmen t

Franchise Term

The gross profit margin is 30%. Per piece, the franchisee will earn P4.20 from a regular donut that sells for P14.00

6 months to 12 months

Mister Donut Philippines does not grant territorial exclusivity. New shops may be placed where customers are not yet served.

4 years

2-3 years

Average payback period of 2-3 years with a profit rate of 20 to 40% Buy-Back guarantee - Mr. Quickie will buy back the entire package at a pre-agreed amount if you decide to give up your franchise within your first year of operation

Franchise Store Management Training is for one month. Included in the training are systems knowhow, store operations, and franchise accounting.

Not indicated

Contacts and Addresse s

Business Development Department Mister Donut Philippines 7th Floor, 80 Roces Ave., Diliman, Quezon City

President Candy Corner Franchising Corp. No. 3 E. Rodriguez Jr. Ave., Bagong Ilog, Pasig City

Tel. Nos.: (0632) 373-1234 locals 3304/3201/3303

Robinsons Convenience Stores, Inc. Franchising Division 3rd Floor Fortune Building 144 Pasig Blvd., Pasig City E-mail:

P.O. Box 12964 Ortigas Center Post Office Emerald Avenue, Pasig City, Philippines Tel. Nos.: (632) 671-9542 (632) 910-3857 (632) 910-3856

[email protected]

Fax No.: (02) 672-0923

Telefax No.: (0632) 373-7913 E-mail Address:

Fax No.: (632) 671-9541 Email: [email protected]

[email protected]

For In-person Visits: Banner St. corner Danny Floro Street, Bagong Ilog, Pasig City

FRANCHISE REQUIRING INVESTMENT OF MORE THAN P2,000,000.00

FIX BENCH

BENCH

JOLLIBEE

GOLDILOCKS

Benefits/ • Advantage s/ Nature of Investmen • t

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Best salon services at reasonable prices The company shall guide the franchisee with regard to the construction, list of suppliers, purchase of salon products, delivery and training schedule Free training of staff/stylists

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Manufacturer and distributor of men's and ladies' apparel and accessories with over 285 boutiques, corners, franchise outlets and authorized distributors in the Philippines. BENCH operates companyowned shops in Guam and China, as well as other franchise outlets abroad. Proud of its fashionable high quality products at reasonable prices, which gives the brand a competitive edge, even in the most competitive markets. Company will provide the following:

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Store concept and design Hands-On Training of Franchisee Marketing and Promotions

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Reputable fast food chain company One of the top corporations in the Philippines and in Asia Comprises three segments; the Hamburger chain (Jollibee); the Pizza-Pasta fast food segment (Greenwich); and the Oriental food market (Chowking)

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Goldilocks Bakeshop, Inc. provides almost everything to run your own shop Training programs; initial training of all crews is free of charge Continuing advisory service on promotional, business or operational problems Goldilocks Shop can either be: 1. Bakeshop – selling only baked products 2. Full Store – combination of baked goods and Filipino dishes Among the top and dynamic franchising companies in the Philippines Continuous development of new and better products

Applicatio n Requirem ents

1. Letter of Intent with preferred city or location 2. Bank certificate 3. 2 x 2 ID Picture 4. Accomplishe d Business Application Form from B/Cut Corporation 5. Photocopy of Business License of existing business if any 6. Map or sketch of proposed location and floor plan if already available All available documents are to be mailed/submitted to: Franchise and Export Department B/Cut Corporation 2214 Tolentino St., Pasay City

1. Letter of Intent 2. Location map of proposed site 3. Business Application Form (from Suyen) 4. Brief business plan 5. Bank Certificate

1. For the franchisee: • Good community standing • Strong leadership and people handling skills • Willingness to devote time in managing restaurant • Successfully completed the required training program 2. Application form 3. Proposal containing the following documents: • Letter of Intent (LOI)containing the exact address of proposed site, exact mailing address, contact numbers, email address, etc., of applicant • Vicinity map of proposed site • Legal document certifying applicant's ownership

1. For the franchisee: • Good moral character and reputation • Strong managerial capability and experience • Good financial capability • Risk taker 2. Letter of Intent 3. Address, location and vicinity of proposed site 4. Comprehensive resume with the following: • • • • • • 4.

Credit references Latest Income Tax Return Fixed assets and liabilities Proof of billing address List of organizations 2X2 colored picture

Site/locati on requireme nt

Not indicated

Floor Area must be a minimum of 80 sq. m. Location: •

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Within a onestop mall with supermarket, fastfood, cinemas, complete tenant mix and ample Within a highdensity commercial area near offices, house of worship, schools and colleges, and other pedestrian traffic generating areas such cinemas and other department stores.

Size of the property is dependent on the particular model to be developed in a particular market

Minimum area of 80 sq. m. for a Bakeshop and 220 sq. m. for a full store. Proposed store location is subject to company assessment and analysis

Investmen t Costs

P2.5M for a 80 sq. m. salon • Franchise Fee P500,000 • Construction Costs P1.4M *the franchisee gets to select among the list of accredited contractors of FIX BENCH SALON • Salon Products – P200,000 • Salon Equipmen t– P160,000 • Rental Deposits – P240,000 *This amount represents 3 months security deposit plus 3 months advance rental with a rental rate of P500/square meter.

P1M+ Franchise Fee • Construction of the BENCH Franchise Outlet and Architect's fee • Store Equipment (Aircon, Cash Register, Stereo, Mannequin, etc.) • Government permits and licenses and other preoperating expenses • Space acquisition, rental deposits and advances • Beginning inventory • Store opening activities

Ranges from P15M to P30M depending on the store size and model. Included: Construction of the store, kitchen, equipment and facilities, furniture and fixtures, air-conditioning system, signage and preoperating expenses

For Bakeshop: P6-8M For Full Store: P10-12M Includes the following: • •

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Franchise fee Initial investment needed to put up a store Initial inventory

Return of Investmen t

Not indicated

Franchise Term

Term of agreement is 8 years but the contract is renewed annually. After 8 years, the FIX BENCH SALON may charge a new franchise fee the amount of which shall be determined on the eighth year of the agreement.

Not indicated

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Advertising Equivalent to a specific percentage of the Franchisee's annual revenue

Between 3-5 years Rate of return is dependent on several factors such as sales, market potential, investment and management Not indicated

Not indicated

8 years

Contacts and Addresse s

Franchise and Export Department B/Cut Corporation 2214 Tolentino St., Pasay City Tel. No. (02) 887-2311 Fax No. (02) 844-8150 Website: [email protected]

Suyen Corporation 2214 Tolentino St., Pasay City Tel. No. (632) 887-2311 Fax No. (632) 844-8150

Franchising Division 10/F Jollibee Center Building San Miguel Ave., Pasig City Network Development Manager for North Luzon 9/F Jollibee Plaza #10 Emerald Ave., Ortigas Center, Pasig City

Franchise Relations Manager Goldilocks Bakeshop, Inc. #439 Shaw Boulevard, Mandaluyong City Email: [email protected]

Telefax No. (0632) 533-2050

Network Development Manager for South Luzon 9/F Jollibee Plaza #10 Emerald Ave., Ortigas Center, Pasig City OIC, Network Development Group for Visayas and Mindanao 2/F Jollibee P. Del Rosario cor. Pelaez Sts., Cebu City Website: www.jollibee.com .ph Tel. No. (632) 898-8181 Fax No. (632) 634-1191

12. ESTABLISHMENT OF EDUCATIONAL AND VOCATIONAL TRAINING INSTITUTIONS

Education remains an essential key to solving many economic and social problems of the country in the long term. While it is the role of the government to provide access to educational services, it lacks much-needed resources to offer these services to all of the populace. For this reason, many private establishments have stepped in to offer education to selected sectors of the population, at the same time taking advantage of the viable business opportunity it presents. One of these is the establishment of day cares, learning centers and preschools during the last decades. This has been brought about by the need of working parents to put their children in reputable establishments, where the children can be taken cared of in the absence of parents or guardians, at the same time they are in a learning environment. Many parents also opt to send their children to privately-run pre-schools because of the conceived “better” quality of education, as evidenced by the availability of modern facilities, the student-pupil ratio, competence of educators, etc. Likewise, technical education has been an option for many Filipinos, especially for those who cannot afford to take up 4- or 5-year courses. While it has been made available for many years now, it has recently been “popularized” because of the need for caregiver or ICT courses. The Technical Education and Skills Development Authority (TESDA) is the government agency tasked to manage and supervise technical education and skills development in the Philippines. One of the directions set by the Authority is the registration of TVET programs to ensure that they meet certain standards before these programs are offered to the public. STANDARDS FOR THE ORGANIZATION AND OPERATION OF PRE- SCHOOLS Staff Requirements The following staff requirements are intended for owners/operators, administrators, directors, principals, head teachers or school heads, as well as classroom teachers and para-professionals who are involved in Preschool or Early Childhood Education (ECE) of children 5 to 6 years of age. Staff

Requirements

1. Owner / Operator / Proprietor

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College degree in a discipline allied to education with at least 18 units of preschool education course

2. Administrator / Director / Principal / Head Teacher / School Head

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College degree in a discipline allied to education with at least 18 units of preschool education course

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Preferably with a masters degree in education

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At least two (2) years of very satisfactory work experience in a school set-up

3. Teacher

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Bachelor of Science degree with specialization in Family Life and Child Development or Early Childhood Education or Kindergarten; or

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Bachelor of Science in Elementary Education with 18 units in Preschool Education and 54 hours of practicum in preschool classes; or

•

Bachelor of Arts/Science degree in discipline allied to education, arts, nursing, anthropology with 18 units of preschool education

Physical Environment The standards for physical environment refer to the minimum requirement for the school site, the physical facilities and the learning equipment for a preschool. Structure of the Environment School site in this standard refers to school site for Kindergarten only and does not include grade school. 1. School site must have a minimum lot area of 500 square meters. The area may be divided into a minimum of 140 square meters for the classroom and 360 square meters for the playground. This area is only good for not more than 4 classes. 2. Space for playground must be provided, otherwise, easy and safe access to the nearest part or open space not more than 200 meters walking distance from the school site may be presented as an alternative. This arrangement must be approved in writing by the authorized representative of the park or open space. 3. The school site must be used for educational purposes only. It must not serve as the residence of the owner. It should not also be a “convertible school,” that is during the day it is used as a school and after class hours converted into a residence or used for commercial purposes. 4. Provision for office, teacher’s room, music and library rooms combining any two of these must be considered. Class Size Ideal class size is 25-30 children per teacher. Class size may be increased to 30-40 pupils per teacher if there is a teacher aide. Classroom Size Classroom size should be 1 ½ square meters per child.

Equipment

1. Playground and Garden – Playground apparatus must be installed in the school ground such as jungle gym, sandbox, slide, balance beams and simple obstacles. 2. Classroom Equipment and Fixtures – Furniture such as tables, chairs, shelves lockers and cabinets should be proportionate to children’s sizes. 3. Health Facilities and Provision for Safety – Health facilities such as toilet, safe drinking and washing facilities must be adequate and suitable to children’s height, size and other special needs. First aid kits must be available. A rest area may be provided for the children. The area should be free from hazards and proper and adequate lighting and ventilation should be provided. 4. Activity Centers – The classroom should have activity areas for the following: • • • • •

Personal Care and Grooming House and Garden Care Communication Skills Sensory-Perceptual and Numeracy Skills Corner Motor and Creative Development Corner

PROVISION OF DAY CARE SERVICE Day Care Centers are widely operated not only by the local government units but by the non-government organizations, the private sector, national government agencies, people’s organizations and other social welfare development institutions. There are several laws and policies that mandate the setting-up of day care service. Republic Act No. 6972 provides for the establishment of Day Care Centers in every barangays. Executive Order No. 441 directed all government agencies and government-owned corporations to provide day care services to children of their employees below five years of age. Since the passage of the Local Government Code, the operation of day care centers has been devolved to LGUs. Nature and Objectives of Day Care Service Day Care Service is the provision of supplementary parental care to 0-5 years old children whose parents have difficulty in fully taking care of their children because of work or other legitimate reasons. The provision of the day care service may vary in form and settings as follows, depending on the needs of a specific community: 1. Day Care Centers – community or workplace-based facilities for children 3-5 years old 2. Center Based Infant Care or Child Minding Centers – are for children ages 0-3 years old with provision for the conduct of stimulating activities and feeding 3. Supervised Neighborhood Plays – are for children 2-5 years old that facilitates the conduct of play activities 4. Family Day Care Centers – provide 0-5 years old children with temporary care in the home of an accredited family child care worker Procedures in the Accreditation of Day Care Centers and Day Care Workers

The Department of Social Welfare and Development, consistent with the mandate of Republic Act No. 6972 prescribes the minimum criteria for accreditation and licensing of Day Care Centers (DCC) and Day Care Workers (DCW). 1. All requests for DCC/DCW accreditation assessment shall be forwarded to the DSWD Field Offices. 2. Accreditation assessment includes interviews with the Day Care Worker, interviews with members of the parents committee, record review (technical, administrative and program), observation of session, assessment of DCC facilities and program materials. 3. Upon favorable assessment by the authorized accreditors of DCCs and DCWs with supporting documents, certificates and identification cards shall be issued by the DSWD Field Directors in accordance with the standard rating scheme. Accreditation Rating System

I. II. III. IV. V. VI. TOTAL

Areas of Assessment Stability of Support Physical Facilities Qualities of Day Care Worker Program Service Contents/ Quality of Delivery & Presentation Availability of Program Materials/Visual Aids Availability and Utilization of Records

Expected scores 20 points 20 points 35 points 55 points 35 points 35 points 200 points

Star Rating Equivalent Star Rating Scores Duration 5 stars 200 5 years 4 stars 199-167 4 years 3 stars 166-134 3 years 2 stars 133-101 1 star 100-01 4. For those with five (5) star rating, the accreditation is valid for five (5) years; four (4) years for four (4) stars; three (3) years for three (3) stars.

Day Care Centers with 1 and 2 star rating shall not be issued accreditation certificates but instead shall be continuously provided technical assistance until they are able to meet the set standards.

Day Care Workers Qualification The following are the required qualifications of a person who shall provide substitute parental care to children aged 5 years and below left under the custody of day care centers: 1. Male or Female, between 18-45 years old 2. Must have at least 2nd year college education 3. Has relevant experiences and interest in working with children 4. Has good moral character with certification issued by the Barangay Captain 5. Must be physically, emotionally and mentally fit based on the following: a. Physical examination by a licensed physician b. Radiological examination c. Dental evaluation d. Psychological assessment 6. Has undergone training on Day Care Service or Early Childhood and Development 7. Willing to undergo annual medical examination 8. Willing to handle two shifting a day at 3 hours per session Minimum Standards for Day Care Center and Day Care Worker 1. Structural Design The Center must be in a separate single story structure or in the ground floor, if occupying 2 or more story building and must conform to safety building standards with updated fire and safety certificate. It must have accessibility features for physically disabled or special children as provided for in B.P. No. 344 or the Accessibility Law. Adequate lighting and ventilation, separate indoor toilets, washing facilities and safe drinking water should be provided. 2. Location The site must be far (at least 200 meters) from high risk areas such as rivers, dump sites or main thoroughfares. It must also be located away from gambling dens and other ill-repute establishments. A space for playground, communication and community welfare facilities must also be provided. 3. Space The site must provide enough indoor and outdoor space for every child to move freely for their social, cultural, recreational and physical activities. 4. Furnishings Indoor furnishings must be safe and proportionate to children’s sizes to allow for comfort and relaxation. Avoid toys that are made of non-toxic materials and have removable parts or sharp edges that may harm the children. The site should always be clean and safe for floor activities

The Center should provide for an updated first-aid medicines and supplies stored beyond the reach of the children. Functional and safety equipment such as fire extinguishers should be provided. 5. Services The Center must provide for activities geared towards the holistic development of the child, such as free and structured indoor and outdoor play; news sharing and story telling that promotes good values and character; and arts, crafts, games, etc. that promote physical, mental and creative development. Annual health services for the child such as physical and laboratory examination, oral and dental examination and immunization should be provided. The provision of first-aid management to the child is also expected. The conduct of regular counseling of parents and caregivers on child development, responsible parenting, and health education is likewise encouraged. Sustained participation of parents in the management of the center is preferred. 6. Program Materials Day care workers shall make use of program materials that will enhance the physical, social and cognitive development of the child particularly those that are intended for spiritual development, family life orientation, music, arts and crafts appreciation. For more information on the setting-up of Day Care Centers, please contact: Standards Regulation Unit Department of Social Welfare and Development 389 San Rafael cor. Legarda Sts. Sampaloc, Manila Tel. No.: (632) 734-8619 ESTABLISHMENT OF TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING (TVET) PROGRAMS (e.g. caregiver schools / ICT schools) The Technical Education and Skills Development Authority (TESDA) is the government agency tasked to manage and supervise technical education and skills development in the Philippines. In the performance of these functions, it shall provide direction, policies, programs and standards towards quality technical education and skills development. One of the directions set by the Authority is the registration of TVET programs to ensure that they meet certain standards before these programs are offered to the public. Unified TVET Program Accreditation System (UTPRAS) UTPRAS is a two-stage process of quality assurance, which involves the following:

1. Program Registration – TESDA prescribes the mandatory registration of programs and courses to ensure that they comply with the minimum requirements prescribed in its Training Regulations. Registration, however, is compulsory, with or without Training Regulations. An integral part of Program Registration is the Monitoring of Registered Program for continuous compliance to standards. 2. Program Accreditation – A voluntary process of institutional quality assurance whereby an institution installs quality management system in its operation and shall be assessed by qualified assessors to determine levels of recognition under the Philippine TVET Quality Awards. Programs which need to be registered 1. All TVET programs offered by public and private institutions, including programs offered by enterprise-based training centers, provided that programs offered are fee-charging and open to the public. 2. All TVET programs in industrial trades and crafts, agriculture, fishery, services and home industries; 3. All special programs with short-term duration and are fee-charging, e.g. English language for special purposes, courses which caters to the performing artists (local and abroad), caregiver, security, among others; 4. TVET programs with permit and recognition certificates granted by the Secretary of Education; 5. Apprenticeship programs undertaken by private enterprises shall be authorized on the basis of existing apprenticeship guidelines. Compliance with apprenticeship guidelines is considered as having the effect of UTPRAS registration; 6. TVET institutions with registered TVET programs which they desire to provide under the dual system shall be accredited as dual training system institutions under the guidelines implementing Republic Act No. 7686 in order that incentives provided for in the law may be availed of by concerned TVET institutions; 7. A module of employable competency or a set of modules may be registered as a TVET program. Documentary Requirements for Registration 1. Corporate and Administrative Documents • Certified Board Resolution to offer the program signed by the Board Secretary and attested by the Chairperson (private institutions only) • SEC registration must specifically cover the training delivery site (private institutions only) • Articles of Incorporation – primary purpose of Institution must mention Technical Vocational Education and Training (private institutions only) • Current Certificate of Ownership/Contract of Lease of building (covering at least five years) • Current Fire Safety Certificate 2. Curriculum and Program Delivery

•

• • •

Curriculum document complies with the competency standards where they exist (e.g. in the training regulations). If competency standards do not exist, the curriculum document must include the Philippine TVET Qualifications Framework level, the course/subject/unit titles, learning outcomes and performance criteria) Course and subject descriptions are directly cross-referenced to the competency standards in the training regulations where these are available Curriculum document specifies the equipment, tools and consumables necessary to deliver the program Curriculum document specifies the instructional materials (such as reference materials, slides, videotapes, Internet access and library resources)

3. List of Faculty and Non-Teaching Personnel • Updated list of faculty with their qualifications, areas of expertise, knowledge and skills upgraded and, seminars attended (attach supporting evidence such as copies of certificates and contracts of employment) • Updated list of non-teaching personnel with their qualifications (attach supporting evidence such as copies of certificates and contracts of employment) 4. Academic Rules • Schedule and breakdown of tuition fees and other program costs • Documented grading system • Entry requirements for the program to comply with the relevant training regulations (if applicable) • Rules on attendance 5. Support Services • Health services • Career guidance / placement services • Community outreach program (optional) • Research that supports the operation of the school is carried out (e.g. surveys, consultations, meeting with local industry and community representatives, technical research (optional); Registration Procedures 1. The applicant Training Institute shall file a Letter of Application with the TESDA District / Provincial Office in whose area of jurisdiction the institution operates, at least six (6) months before the institution will offer the program; 2. Applications with complete supporting documents shall be required to pay application fee of P1,000.00 to be officially received for evaluation. Incomplete applications shall be returned with proper notation of deficiencies. 3. The Curriculum Assessment Team evaluates the curriculum documents against its relevance to the Training Regulation and the prescribed CBC documents standards.

4. UTPRAS focal person with assistance from the regional/national technical experts organizes ocular inspection of site facilities, tools, machine and equipment and verifies faculty qualifications within three (3) months from receipt of application.

5. The results of inspection, verification and assessment, together with the corresponding recommendations of the TESDA Provincial Office shall be forwarded to the TESDA Regional Office for consideration; 6. The TESDA Regional Office shall issue a Certificate of TVET Program Registration upon payment of registration fee (P1,000.00) if it has complied with the registration requirements. Registration certificates issued for programs covered by existing training regulations shall be identified as Certificate of TVET Program Registration (WTR) and those not covered or with no training regulations shall be labeled Certificate of TVET Program Registration (NTR); 7. If the TVET Institution fails to meet the requirements for a TVET program that is intended to develop a particular level of competencies, the program may be adjusted to develop lower level competencies. If the TVET Institution meets the requirements to offer the adjusted program, the appropriate Certificate of TVET Program Registration shall be granted to the applicant institution; 8. The denial of the application for registration shall be subject to appeal to the Office of the Director General, TESDA. The decision of the Director General shall be final and executory. The Accreditation System The highest level of recognition shall be achieved by a TVET institution through accreditation as Center for TVET Program Excellence via the Philippine TVET Quality Awards (PTQA), whose rules and procedures are consistent with those of those of the Philippine Quality Awards promulgated by the Productivity Development Council. Accreditation under the PTQA shall use the seven-point education criteria for performance excellence: 1. Leadership 2. Strategic Planning 3. Student, Stakeholder and Market Focus 4. Information and Analysis 5. Faculty and Staff Focus 6. Process Management 7. Organizational and Performance Result

The PTQA shall have four levels of recognition, to wit: •

Bronze level for commitment to quality management

•

Silver recognition for proficiency in quality management

•

Gold recognition for mastery in quality management

•

Platinum award for performance excellence

For schools offering a TVET Program, visit the nearest TESDA Office or the TESDA website at www.tesda.org for online registration, or please contact: The Office of Formal TVET 5/F, TESDA Admin. Building TESDA Complex, Taguig, Metro Manila Tel. No.: (632) 817-4076 local 526 / 527 / 528 Telefax No.: (632) 818-7726

13. DTI RECOMMENDED SECTORS BY REGION / PROVINCE The assortment of Philippine products, the diversity of marine, natural and biological resources, and various Filipino needs and preferences present an array of opportunities for investors who wish to establish businesses in areas other than Metro Manila or highly urbanized cities. Investing in different provinces and regions is one strategy, which can make products and resources more accessible to the countryside, minimize production and transportation expenses, and decongest the high density urban cities, especially Metro Manila. The Department of Trade and Industry Provincial Offices are promoting the growth of at least one priority industry cluster in each province. For businessmen and potential investors in search of business opportunities, DTI has identified some specific trade and investment ventures in the priority industry clusters. Additional business opportunities related to other industry sectors in the provinces may be obtained from the Regional Resource Profiles of the Bureau of Domestic Trade (RRP-BDT). The RRP may provide prospective investors with the list of available raw materials, products and skills in the provinces. DTI Province Focus Sectors The following are the priority industry clusters indicating the respective province of origin: REGION Focus Sector National Capital Region Area I Tourism Sector (Business / Investors Guide)

Area II

Packaging Material for Fresh Fruits, Flowers and Vegetables for Export Area III Footwear Area IV Plastic Cordillera Administrative Region (CAR) Baguio City Education Abra Bamboo-based Industry (Furniture, Processed Bamboo-Pole, Bamboo Shoots as Food Items Benguet Vegetable Processing (Canned Vegetable / Production & Selling of Fresh Vegetable) Ifugao Tourism Kalinga Coffee Industry (Raw Beans) Apayao Fruit Processing Industry (Banana, Pineapple) Mt. Province Gifts & Souvenirs Industry (Woven Items: Rattan & Other Vines, Nitto, Bagings, Hand Woven Yarn, Basketry / Basket) Region I Ilocos Norte Meat Processing Ilocos Sur Furniture La Union Furniture Pangasinan Processed Milk Fish (Bangus) Region II Batanes Fish Processing (Products: Dried Fish, Bagoong, Patis & Sardines) Cagayan Wood Sector (Product: Furniture: Butaka, Sala Set, Bed, Cabinet, TV Stand, Divan, Furniture Components: Door, Door Knob, Ballusters) Nueva Vizcaya Food Processing (Mango & Pineapple Juice, Mango & Pineapple Puree, Banana Chips, Ginger Tea, Powdered & Dried Garlic, Dried Onions) Quirino Furniture (Butaka, Sala Set) Region III Bataan Fish Processing (Dried Fish, Smoked Fish, Bagoong) Bulacan Fine Jewelry (Gold) Nueva Ecija Fresh Fruits & Vegetable Pampanga Meat Processing (abattoir as CCF to be managed by Pampanga Meat Association) Tarlac Mango Industry Zambales Fresh Mango Region IV Oriental Mindoro Processed Banana Laguna Gifts & Housewares / Holiday Decors Aurora Coffee Occidental Mindoro Seaweeds Marinduque Buntal Handloom Weaving Quezon Lambanog Romblon Marble (Tiles, Novelty Items) Rizal Coffee (Raw Beans) Palawan Fish Processing (Lamayo) Batangas Service Sector (Janitorial / Repair & Maintenance) Cavite Processed Coffee Region V Albay Gifts & Housewares (Abaca) Camarines Norte Formosa Fresh Pineapple Camarines Sur Bamboo Industry Catanduanes GTH (Lasa / Tiger Grass) Masbate Aqua-Marine Processing

Regional VI Aklan Antique Capiz Guimaras Iloilo Negros Occidental Region VII Bohol Negros Oriental Siquijor Cebu Region VIII Leyte Southern Leyte Samar Eastern Samar Northern Samar Biliran Region IX Zamboanga City Zamboanga del Sur Zamboanga del Norte Basilan Region X Bukidnon Camiguin Misamis Occidental Misamis Oriental Region XI Davao City Davao del Norte Davao del Sur Davao Oriental Compostella Valley South Cotabato Saranggani Region XII Lanao del Norte North Cotabato Sultan Kudarat Region XIII Agusan del Norte Agusan del Sur

Loomweaving (Piña Industry & Abaca Sub-Sector) Muscovado Industry Horticulture Lime Processing (Industrial Grade) Bamboo-based Product (Furniture & Furnishings) Gifts & Houseware (Ceramics, Woven Items, Mixed Medium) Loomweaving (Rafia, Mats, Table Cloth / Linen Products) Unitown Development (Education Support Service) Ceramics Furniture Abaca Production & Utilization (Finished Product: GTH / Abaca Pulp) Vegetable Production & processing (Carrots, Cabbage, Baguio Beans, Bell Pepper) Mussel Industry Development (Fresh Mussel / Vacuum Fried / Shell Craft) Sinamay Production & Utilization Coconut Coir Industry Development (Planters, Geotextiles, Cocopeat & Holiday Decors) GTH & Fashion Accessories (Pardan Mats & Bags) Fish Processing (Canned Tuna / Bottled Sardines) Rubber Sector (Industrial Rubber Products: Latex, Cuplump, Crumb Rubber, Air Dried Rubber) Bottled Spanish Sardines Rubber Industry Hi-value Vegetable Production (Project: Packing Shed w/ Cold Chain Capability) Tourism Aqua-Marine Industry (Aqua-Business Center and Contract Growing w/ Buy-back Scheme) Handmade Paper Wood Products (Furniture / Construction Materials / Wood Working) Food (Mango: Fresh, Puree, Jam / Banana Chips, Calamansi Juice / Marmalade) Food (Fresh Mango, Cassava Chips, Banana Chips) Coconut-Based Items (Coco Milk, Fiber Board, Coco Peat) Wood Products (Resource-Based: Gemelina, Furniture, Furnishings, Construction Materials) Fish Processing Fish Processing (Dried Fish, Processed Bangus) Seaweeds Industry (Carageenan) Rubber Palm Oil Candish Banana (Fresh) / Food Processing: Banana Chips Wood-Based Products (Match Splints & Cases, Furniture, Sawn Lumber, Mouldings, Veneer & Other Building Components)

Surigao del Norte Surigao del Sur

Fine Jewelry (Gold) Coffee Production (Raw Beans)

BARANGAY MICRO BUSINESS ENTERPRISES A Barangay Micro Business Enterprise (BMBE) is defined as any business enterprise engaged in production, processing or manufacturing of products, including agro-processing, as well as trading and services, with total assets of not more than P3 million. Such assets shall include those arising from loans but not the land on which the plant and equipment are located. For the purpose of the Act, “services” shall exclude those rendered by any one, who is duly licensed by the government after having passed a government licensure examination, in connection with the exercise of one’s profession. The Barangay Micro Business Enterprises Act of 2002 Republic Act No. 9178 or the Barangay Micro Business Enterprises Act of 2002 is a law signed on November 13, 2003 to encourage the formation and growth of barangay micro business enterprises by granting them incentives and other benefits. BMBEs are essential to the country’s economic development since they effectively serve as seabeds of Filipino entrepreneurial talent. Thus, the Act aims to integrate BMBEs in the informal sector into the mainstream economy. Strengthening BMBEs would mean more jobs and livelihood, and a better quality of life for Filipinos. Major Incentives for BMBEs 1. Income tax exemptions from income arising from the operations of the enterprise; 2. Exemption from the coverage of the Minimum Wage Law; 3. Priority to a special credit window set up specifically for the financing requirements of BMBEs; and 4. Technology transfer, production and management training, and marketing assistance programs. Funding Agencies The following government financial institutions will provide a special credit window for BMBEs: 1. 2. 3. 4. 5. 6.

Land Bank of the Philippines Development Bank of the Philippines Small Business Guarantee and Finance Corporation Quedan and Rural Credit Guarantee Corporation Government Service Insurance System (for members only) Social Security System (for members only)

Agencies that Assist BMBEs The agencies assigned to provide assistance in the area of technology transfer, production and management training, and marketing assistance are the following: 1. Department of Trade and Industry (DTI) Bureau of Small and Medium Enterprise Development Bureau of Domestic Trade 2. Department of Science and Technology (DOST) Technology Application and Promotion Institute 3. University of the Philippines Institute for Small Scale Industries (UP-ISSI) 4. Cooperative Development Authority (CDA) 5. Technical Education and Skills Development Authority (TESDA) 6. Technology and Livelihood Resource Center (TLRC) Who May Avail Only registered BMBEs may take advantage of the credit facility and other benefits granted under the law. This means that the enterprise must have a Certificate of Authority which authorizes it to operate as a BMBE. How to Register Any person, cooperative, or association owning an enterprise that fits the description of a BMBE may register with the Office of the Treasurer of the city or municipality where the business is located. Registration Requirements 1. Duly filled-up application form (BMBE Form 01) in triplicate, signed by the owner or manager of the entity for registration; and 2. Three passport size ID pictures Procedures 1. Accomplish BMBE Form 01 in triplicate and submit to the Office of the Municipal or City Treasurer. 2. The Municipal or City Treasurer evaluates the application. The application shall be processed within 15 working days upon submission, otherwise, the BMBE shall be deemed registered. 3. A registered BMBE shall be issued a Certificate of Authority as proof of registration, effective for the period of two years. The application is renewable every two years. Registration Costs Registration and issuance of the Certificate of Authority of the local government unit (LGU) is free of charge and shall

be done promptly. However, to defray the administrative costs of registering and monitoring the BMBEs, the LGUs are allowed to charge a fee not exceeding P1,000. For further inquiries, visit the nearest DTI Provincial Office or contact: Bureau of Small and Medium Enterprise Development Department of Trade and Industry Tel. No.: (632) 897-7596 Fax No.: (632) 896-7916

BIMP-EAGA SUB-REGIONAL COOPERATION BIMP-EAGA: A Blueprint for Cooperation The East ASEAN Growth Area sub-regional forum for cooperation was initiated in 1994 for the purpose of increasing trade, investment and tourism. At its onset, the sub-region saw many encouraging cross-border initiatives between Brunei Darussalam (the whole area), Indonesia (including all provinces of Sulawesi and Kalimantan, Maluku and Irian Jaya), Malaysia (Sabah, Sarawak and Labuan) and the Philippines (the Mindanao-Palawan regions). The Philippine territories comprising the growth area benefited significantly from over $300 million in private sector investments from Malaysia as well as commercial air and sea transportation linkages set up between the region and the rest of EAGA. Some 250 business and trade delegations from EAGA countries visited Mindanao between 1994-1997, galvanizing the movement of goods, people and services between the sub-region. This cooperation agreement stalled in the wake of the Asian crisis in 1997 and various political troubles in the Philippines and Indonesia. Overcoming seemingly insurmountable odds, BIMP-EAGA's members appear to be moving on the renewed initiative with the urgency of a swiftly-recovering brotherhood of similarly-motivated nations. Recognizing the strategic importance of the growth area to the ASEAN, particularly in pursuing the ASEAN Free Trade Area, government heads have elevated EAGA to the national leadership level and strengthened transport, financial and security linkages within the sub-region. The recent acceleration of the BIMPEAGA has engendered a deeper understanding of the need to engage a more comprehensive private sector participation in the Philippine areas involved. Similarly, the private sector must prepare itself to take full advantage of this opportunity for business in an area which offers numerous advantages for mutual growth. BIMP-EAGA: Business Opportunities There are a great number of business opportunities still waiting to be tapped in Mindanao, particularly in infrastructure development, high-value agro-industry, financing services, natural resource-based manufacturing and tourism. Mindanao possesses notable advantages in commodities such as banana and pineapple, and

in specific value-added products, such as processed tuna. In addition, Mindanao is well-placed to excel in newer market niches such as IT-based services outsourcing. Mindanao's food products prove to be exceptionally lucrative. With an abundance in marine products, fruits and vegetables, seaweed and livestock, Mindanao is not far from becoming the food basket of Asia, given efforts to harness its growth potential. Other economically gratifying projects at stake include largescale farming, plantations and food processing. Transportation services have been moving along quite efficiently. Direct flights between Davao City and Kota Kinabalu have resumed. Flights between Zamboanga and Sandakan, and Davao and Brunei are well underway. Fast ferry services facilitate movement between Zamboanga and Tawau, supplementing the existing service between Zamboanga and Sandakan. Two framework plans are available for utilization in the development of Mindanao in conjunction with the purposes and goals of BIMP-EAGA: •

The Mindanao 2000 Development Framework Plan (1995-2010) or Mindanao 2000 formulated in 1995 with USAID assistance, a guideline of the Government for the development of Mindanao.

•

The Philippine National Development Plan (1999-2025): Direction for the 21st Century or PNDP 21, the latest national plan formulated in 1998.

According to these plans, the regions in Mindanao are economically positioned as follows: •

Davao: component of Southern Mindanao Food Triangle and AgriIndustrial Hub in BIMP-EAGA along with SOCSARGEN and Central Mindanao (Mindanao 2000); export base to the EAGA market (PNDP 21)

•

Northern Mindanao: North Coastal Agri-Industrial Corridor and Gateway to domestic market (Mindanao 2000); Industrial Core in the north, whose main component is the Cagayan-Iligan Industrial Corridor and AgriExporting Base for the Pacific Islands (PNDP 21)

•

West Mindanao: Marine Venture and Trading Hub of EAGA (Mindanao 2000); and Trading Center with EAGA (PNDP 21)

These positions are logical as far as they are based on the natural resource endowments, geographically strategic locations, and other existing conditions of the regions for development. ZAMBOANGA Key Area/s And Product/s

Key Players

Market

Opportunities

AGRI-TOURISM •

Diverse fruit trees that thrive in the region

• • •

Farmers Traders Manufacturers

• •

Domestic International focusing on the BIMP region as well as China and Northern Australia

•

Investment in post-harvest facilities: packaging center and food processing

•

Longest coastline in the Zamboanga Peninsula region (Olutangga- a 25 -minute boat ride island from Ipil, Zamboanga Home to thousands of mysterious water snakes (WaluWalu)

•

Resort and hotel operators Fishermen/ "bankeros"/local divers Local tourist guides

•

Local and foreign visitors

•

Investment in tourism industries Sea transport, shipping lines and land transport services

Corn production

•

•

BIMP-EGA especially Brunei

•

Modern postharvest facilities

• •

Small corn farmers Traders Mill operators

• • •

Breeders Poultry farmers Traders

•

Poultry farms and horticulture

•

•

•

Livestock and poultry

• •

•

DAVAO Key Area/s And Product/s

Key Players

Market

Opportunities

•

Development of Samal Island and other potential tourist spots in the region

• • •

Hotel and Resort operators and industry workers Contractors and construction firms Land developers

• • • • •

Domestic and international BIMP-EAGA region US and Japan China Australia

• •

• • •

•

Native delicacies and other food products (dried mangoes, durian candy, rambutan, etc.

• •

Entrepreneurs Traders, farmers

•

Locals

Expansion and liberalization of China's market

•

Importers and exporters of goods and merchandise Port operators

•

Domestic and international

• •

•

Mass housing projects for the whole of Mindanao

•

Food production and processing

•

Investment in the development of international/ inter-regional ports Freight and forwarding services Export of products from other BIMP-EAGA member countries Pearl farming

Pearls

• • •

Investment in hotels and resorts Investment in air and sea linkages with other countries particularly members of the BIMP-EAGA Infrastructure development and construction Tourist spots, resorts, inns

Novelty items from tourist destinations such as Mt. Apo and the Philippine Eagle Conservation Center

•

Mountain guides

• • • •

SOCSARGEN

Shops for local and foreign tourists Small canteens for travelers Novelty shops

Key Area/s And Product/s • Marine products like tuna, shrimps, lobsters, seaweed, etc. • Dried fishes and other marine products

Key Players • • • •

Market •

Fishermen Traders Exporters Manufacturers

Domestic and foreign

Opportunities •

•

• • •

Investment in the regions fisheries and aquatic resource Production and processing facilities for marine products Seaweed farming Cold storage facilities Drying facility

CALABARZON INDUSTRIAL PROGRAM CALABARZON: A Blueprint for Development A series of viable economic corridors outside Metropolitan Manila is under way to becoming a fully urbanized area of development. The provinces of Cavite, Laguna, Batangas, Rizal and Quezon have been tapped as active participants in and beneficiaries of the Industrial Program under the Philippine Assistance Plan. The concept of this program is the complementation of basic industrial projects, support infrastructure, and adequate and well-trained manpower to meet the demands of prospective occupant industries in Region IV. The strategy being employed is geared to develop CALABARZON into an integrated urban-industrial, commercial, educational and cultural center comparable to Manila. The rapid spatial development of CALABARZON is characterized by the predominance of large foreign export-oriented firms, other large domestic firms, and small or cottage industries. The region's speedy urbanization may be attributed to this, as well as to its proximity to the vibrant economy of Metro Manila. CALABARZON: Business Opportunities Immediately after the launching of Project CALABARZON, industrial subdivisions began to mushroom in Cavite and Laguna. Spurred on by promises of full infrastructure backing and various incentives offered by the Board of Investments, 6 groups of big foreign and local business players poured some P6.6 billion in investments to develop industrial estates, which include the Carmelray Industrial Park operating in Calamba. Numerous other business opportunities sprouted as a result of the boom in industrial estate construction, in addition to other existing conditions conducive to vitalizing the spirit of entrepreneurship in the CALABARZON area. CAVITE Product

Key Players

Market

Opportunities

Contact Details

§

coffee beans

§

§ § § §

16,000 coffee farmers/ growers 22 coffee millers 22 coffee traders 10 processors 1 distributor

§

domestic

§

investment in postharvest facilities: drying and roasting facilities, packaging center

Provincial Director Aguinaldo Highway, Bgy. Biga, Silang, Cavite TN: (046) 4140904, 414-01-88 FN: 416-4799 Email: dticav_idd@ yahoo.com

LAGUNA § §

Product gifts holiday decors

§

Key Players 60 GHD manufacturers and direct exporters

§ §

Market domestic: nationwide export: USA, Hong Kong, Germany, Italy, Canada, Australia

Opportunities raw materials sourcing § product development § market analysis §

Contact Details Provincial Caretaker Laguna Trade and Tourism Center 38 Purok, Km. 75 Brgy. Bancabanca National Highway, Victoria, Laguna TN: (049) 5590151 Email: dtilaguna@ hotmail.com

BATANGAS Products

Key Players

Market

Opportunities

Contact Details

§ § § § § § § § § § §

catering canteen operation repair and maintenance utility services transport services electronic data processing building maintenance laundry services printing and publication IT services security services

§

§

skilled persons are abundant due to the presence of TESDA Regional Training Center in Batangas City groups are directly assisted by developers and locators under the Micro Enterprise Assistance Program of DTI and under FPIP’s Community Relations Program

§

industrial estates locators and developers in Batangas

§ §

increasing MEAP intervention services opportunity

Ruel R. Gonzales Provincial Caretaker NACIDA Bldg. Old City Hall Compound B, Morada Ave., Lipa City TN: (043) 7562330 FN: 756-13-36 Email: dtibats@ glimesnx.com.ph

RIZAL §

Product raw coffee beans (Robusta variety)

§

Key Players 96 coffee growers

§

Market local

Opportunities establishment of post-harvest facilities: shelling, drying and hauling machines, coffee trading center § technical training for new farmers/ investors § water supply facility installation in 2 areas § clonal garden for planting materials supplies §

Contact Details Provincial Director 4/F Fairtrade Commercial Center Bldg. Km. 23, Ortigas Ave. Ext., Cainta, Rizal TN: 660-6116, 656-6827, 66059-86 Email: rizalpo@ dti.gov.ph

QUEZON §

Products lambanog (indigenous liquor derived from coconut sap)

Key Players § 3 major distillers based in the vicinity

§ §

Market domestic: nationwide export: Taiwan, Japan

Opportunities § coconut tree replanting § supplying boxes/labels, caps and seals, paper bags and promo packs § transport services § warehousing § trade channels § buyers of bamboo poles and coco sap § product development § existing supplier of raw materials for GHD (buri, buntal) § existing supplier of raw materials for food products (copra cake, coco oil) § existing exporter of coco chemicals § potential suppliers of raw material for food products (fresh coconut)

Contact Details Provincial Director 2/F Don Froilan Lopez Bldg. Granja corner Enverga Sts., 4301 Lucena City TN: (042) 6607656 FN: 660-7658 Email: dtiqzn@ quezon.net

14. INVESTING IN OTHER SERVICES

BUILDING MANAGEMENT SERVICES The influx of infrastructure projects in the Philippines has spawned other business opportunities, particularly in the area of building management and personnel services. Instead of hiring permanent or casual employees to perform tasks, businessmen and investors opt to engage the services of duly established companies or contractors whose functions are exclusively directed towards performing building management activities. Examples of building management services include: 1. 2. 3. 4. 5.

Janitorial services Security management Plumbing, fumigation and air-conditioning services Messengerial and liaison services Other maintenance services (window cleaning, etc.)

Filipinos overseas may opt to establish ventures to provide building management or personnel services for already established companies. Both government and private enterprises in the Philippines engage the services of building management companies as a more efficient alternative to hiring of individual workers. ASSETS AND PROPERTY MANAGEMENT Business opportunities in assets and property management used to be enjoyed only by banks and lending institutions when they foreclose or acquire assets and properties from unpaid loans, or forfeited securities and bonds. The Philippine National Bank has an Assets Management Group whose functions are exclusively for database management, advertising and showcasing of the bank’s high-value properties for sale to the public. The Bank of the Philippine Islands and Citigroup Private Bank also have similar programs. In recent years, assets and property management ventures have also been undertaken by private individuals or companies who purchase from lending institutions their foreclosed properties, and develop and re-sell them at a profitable price. At present, there are business opportunities in managing the assets and properties left behind by Filipinos who migrate overseas, or in managing property in behalf of Filipinos based overseas who acquire property in the Philippines. Properties and assets can be managed professionally by a manager or administrator under a suitable contract with the absentee property owner. VEHICLE REPAIR AND MAINTAINANCE The increasing number of motor vehicles in the Philippines has brought about a need for more motor vehicle repair and maintenance shops, which are indispensable in keeping transport vehicles in good operating condition. This need provides opportunities for small and medium entrepreneurs to engage in this particular type of service activity, which calls for employment of shop supervisors, skilled workers and apprentices. Vehicle repair and maintenance service shops/centers in the country are generally classified as follows:

• • • • •

service centers of branded vehicles, exclusively attached to dealers independent service centers accredited by DTI service centers attached to (or part of) franchised gasoline stations small independent motor shops, repair shops registered with DTI micro repair and motor service shops not registered with DTI

Dealers and distributors of branded vehicles such as Toyota, Honda, Nissan, Mitsubishi, etc., as well as local assemblers of utility vehicles, have exclusive service centers and/or a network of accredited service centers. Depending on the warranty service period for a unit, owners would normally have their vehicles maintained at these centers. At the end of the warranty period, however, owners would need to have their vehicles service in other shops or service centers. A typical vehicle maintenance service would include degreasing, rust removal, painting, installing batteries, cleaning of tanks and air-conditioning units, etc. The service may vary depending on the age of the vehicle, the mileage, level of utilization, repair need, etc. Each of these repair and maintenance shops for motor vehicles or “motor shops” provide different range of services. The smaller ones may specialize in specific jobs such as electrical works, body-building works, body painting, air-condition repair and maintenance, engine overhaul, etc. The bigger shops may perform a wider range of services required by any type of motor vehicle. Services done at the shops located within gasoline stations would also be wide-ranging to include cleaning, engine tune-ups, wheel alignment and balancing, etc. In a motor service department of a major vehicle trading company, the types of services are classified into “quick service” and “main repair service.” The quick services included minor repairs and maintenance activities to be done within two to three working hours. Some of the most common activities are: • • • •

aligning and balancing and changing of tires replacement of automotive fluids or lubrication (e.g., motor oil, radiator coolant, transmission fluid, brake fluid) replacement of non-repairable equipment (e.g., brake shoes/pads, shocks, batteries, belts, mufflers, electrical components and accessories, water pumps) replacement or charging of lead-acid batteries

The “main repair” services included those tasks and activities that require one-day to one-week repair time. These would include: •

repair of fixable equipment (e.g., brake calipers/rotors/drums, alternators, fuel pumps, carburetors, power train components, airconditioning) • repairing, rebuilding or installation of engines, and other major components such as transmissions and differentials • repairing, restoring and painting vehicle bodies • replacement of underchassis and suspension parts/components OVERSEAS CONTRACTING AND PLACEMENT FOR OVERSEAS EMPLOYMENT Overseas service contracting together with placement for overseas employment offers business potentials specially for returning overseas Filipinos, who have the experience of having lived overseas and becoming familiar with overseas demand for labor and services. Knowledge of requirements overseas for the

recruitment of foreign workers also gives an advantage to overseas Filipinos deciding to go into this business. Who are qualified to establish recruitment and placement agencies a. Filipino citizens or at least 75% of the capital stock is owned by a Filipino in case of partnerships and corporations; b. Those with minimum capitalization of P2 million (P2,000,000) in case of single proprietorship or partnership and a minimum of paid-up capital of P2 million (P2,000,000) in case of corporation; and c. Those who are qualified by law or other government regulations to engage in the recruitment and placement of Filipino workers for overseas employment. Who are disqualified to establish recruitment and placement agencies a. Travel agencies and sales agencies of airline companies b. Those directly engaged in the business of a travel agency c. Corporations and partnerships, when any of its officers, members of the board or partners, is also an officer, member of the board or partner of a corporation or partnership engaged in the business of travel agency d. Those who have derogatory records such as, but not limited to, the following: 1. Existence of derogatory record or information in the National Bureau of Investigation and the Anti-Illegal Recruitment Branch of the Philippine Overseas Employment Administration; 2. Those who have prima facie finding of guilt for illegal recruitment and other related cases; 3. Those convicted of illegal recruitment or other related cases and/or crimes involving moral turpitude; and 4. Agencies whose licenses have been previously revoked or cancelled. All applicants for issuance/renewal of license are required to submit clearances from the NBI and Anti-Illegal Recruitment Branch of POEA including clearances of their respective officers and employees. e. Any official or employee of DOLE, POEA, OWWA, DFA and other government agencies directly involved in the implementation of R.A. 8042 or the Migrant Workers and Overseas Filipinos Act of 1995 and/or any of his/her relatives within the fourth degree of consanguinity f.

Persons or partners, officers and directors of corporations whose licenses have been previously revoked or cancelled for violation of recruitment laws

Procedure in License Application 1. Submit a letter of application to the Philippine Overseas Employment Administration together with the following: (the Letter of Application is to be addressed to the Licensing and Regulation Office)

a. A certified copy of the Articles of Incorporation or of Partnership registered with the Securities and Exchange Commission, or Certificate of Registration with the Department of Trade and Industry in case of single proprietorship;

b. Proof or financial capacity 1. Single Proprietorship/Partnership • Income Tax Returns (ITR) of the proprietors for the past 2 years • Savings Account Certificate showing a maintaining balance of not less than P500,000.00 2. Newly organized corporation • Savings Account Certificate showing a maintaining balance of not less than P500,000.00 3. Existing corporation • Verified financial statement • Corporate tax returns for the past 2 years • Savings Account Certificate showing a maintaining balance of not less than P500,000.00

c. Proof of marketing capability 1. Special Power of Attorney or Recruitment Service Agreement 2. Manpower request/s or visa certification from new employer/s for a minimum of 100 workers 3. Certificate from the Pre-Employment Services Office of POEA on the existence of a new market

d. Clearance from the NBI and other government agencies of all persons involved in the business

e. Undertaking from the applicant stating the following: (in case of corporation and partnership, members are jointly liable with the company over claims arising from employee-employer relationship) 1. Rigid selection process for qualified recruits •

The agency may require the worker to undergo trade testing and medical examination only after the worker has been pre-qualified for employment.

2. Full and complete responsibility for all claims and liabilities in connection with the use of the license 3. Joint liability with the employer for all claims and liabilities in connection with the implementation of the contract 4. Guarantee compliance with labor and social legislation of the Philippines and the employing country 5. Full responsibility on the actions of its officials, employees and representatives done in connection with recruitment and placement

6. Negotiate for the best terms and conditions of employment 7. Full disclosure of the terms and conditions of employment to the applicant worker 8. Deployment of at least 100 workers within 1 year upon issuance of license 9. Provision of orientation programs to workers 10. Repatriation of workers and his belongings when needed

f. Individual

Income Tax Return of the stockholders/incorporators, for the past 2 years.

proprietor,

partners,

g. Bachelor’s degree and 3 years of business experience of the proprietor, partner or chief executive officer.

h. List of all officials and personnel involved in the recruitment and placement agency with the following: • • •

Designation of each individual Bio-data with 2 copies of their passport size pictures Clearances from the NBI and the Anti-Illegal Recruitment Branch of POEA

i. Contract of Lease or Proof of Building Ownership, indicating the office address and an office space of at least 100 square meters. •

The Administration shall inspect the site and facilities of the office before issuance of license

j. Proof of publication of notice of the application with the names of the proprietor, partners, incorporators and officers.

k. Certificate of Attendance of owner and/or chief executive officer in preapplication seminar by POEA 2. Payment of P10,000.00 non-refundable filing fee and submission of proof of payment 3. Action upon the Application. Applications will be acted upon within 15 working days upon receipt of an application. Denial of an application will result to forfeiture of the filing fee. 4. Payment of Fees and Posting of Bonds. Upon approval of the application, the applicant shall: a. pay a license fee of P50,000.00; b. submit an Escrow Agreement in the amount of P1,000,000.00; c. confirmation of escrow deposit with an accredited reputable bank; and d. a surety bond of P100,000.00 from a bonding company acceptable to the Administration and accredited by the Insurance Commission. 5. Issuance of Provisional License which shall be valid for 1 year

For further inquiries on establishing recruitment and placement agencies, please contact: Licensing and Regulation Division Philippine Overseas Employment Administration POEA Bldg., EDSA cor. Ortigas Avenue, Mandaluyong City Tel. Nos.: (632) 722-1159, 724-3665, 721-0650 or 721-9498 Fax No.: (632) 726-3265 Email Add: [email protected] Website: www.poea.gov.ph DEVELOPMENT OF THE COCONUT INDUSTRY Coconut production constitutes one of the four major sectors of Philippine agriculture, the others being rice, corn and sugar. Coconut is planted in 2.7 million hectares, which account for 23% of the total croplands, and 74% of commercial croplands. About 85% of coconut is exported in the form of copra, coconut oil and dessicated coconut. Coconut products are valuable as raw materials for a wide array of industrial commodities, such as margarine, soap, lauric acid or glycerinebased industrial chemicals. Coconut products where the country’s top raw material experts in the 1970’s and the 1980’s, followed by mineral and forest products. Of the total coconut exports, 39% went to the U.S., 46% to Western Europe, and the rest to other countries like Japan and Russia. The coconut industry is very important in the Philippines because one third of the population depend on coconut production for livelihood. Recently, new coconut products as well as new markets that offer excellent potentials have also been identified. Prospective investors may wish to put their capital into the industry. The table on pages 39 and 93 list the specific industry activity from commercial production to post-harvest to processing which are open to investors. Most of the possible investments identified by the Agribusiness and Marketing Assistance Service of the Department of Agriculture are in the form of joint venture or buildoperate-transfer schemes because of large project costs, which averages $2 to 5 million. The Philippine Coconut Authority (PCA), whose objective is to develop and modernize the Philippine coconut industry through gainful production, processing, marketing and utilization of the whole coconut palm and its derivative products to improve the income, food security and sustainable development, offers the following services to assist investors, managers and workers in the coconut industry. 1. Micro-Finance credit 2. Upgrade insurance 3. Basic commodities access 4. Farm diversification 5. Direct copra marketing 6. Bio-fuel development 7. Integrated farming system development 8. Bio-technology or varietal improvement and crop protection 9. Coconut farmers institution building 10. Industry and corporate promotions

For more information on PCA programs and services, please contact: Philippine Coconut Authority PCA Building, Elliptical Road Diliman, Quezon City Tel. Nos.: (0632) 928-4501; 921-8116 Fax. No.: (0632) 921-6173 Email Add.: [email protected]

15. COMPETITIVENESS RANKING OF PHILIPPINE CITIES IN 2003

The Asian Institute of Management Policy Center’s City Competitiveness Program pioneered a project to determine the competitiveness of Philippine cities. It studied the capacity and capability of Philippine cities for effective governance, human development and business growth, using research methodologies requiring quantitative and qualitative data. The project presents the complete ranking of fifty cities, and includes the strengths of the top ranking cities per category. The publication serves as a reference for knowing more about business and other conditions in Philippine cities. The information about Philippine cities will be very helpful to investors who are particularly interested in establishing their businesses outside Metropolitan Manila. The AIM Policy Center used the following as criteria in identifying the competitiveness of Philippine cities: 1. Cost of Doing Business The affordability of doing business in urban centers is one of the primary concerns of businessmen. Competitiveness of cities in terms of the relative affordability of power, transportation, labor, and land provides selling points to potential investors because low overhead and operating costs increases the chances of having a profitable business venture. The specific indicators are: • • • • • •

Profitability of doing business is high Informal fees like bribes are non-existent Cost of power for commercial use Average rent of commercial space Average installation cost of new telephone lines Local minimum wage

2. Dynamism of Local Economy Cities are vital hubs for national economic development because they function as centers of economic development. The strength and overall attractiveness of the cities economy for business have great impact to its competitiveness. The specific indicators are: • • • • • • • • •

The city’s revenues will considerably increase in the next six months The city’s regulatory environment such as licensing procedure and fees, taxes and other regulatory requirements, is conducive to business Tourism is vibrant Average household income Local inflation rate Percentage of top 200 companies in the city Population vs. fast-food chain locators Market size Consumer Price Index

3. Linkages and Accessibility Proximity of urban centers to other growth areas and the availability of business support services provided by the local and national governments are other aspects that businessmen consider before investing in a city. Investors find it relevant that a city’s accessibility to secondary markets is vital because nearby growth centers serve as sources of revenues and raw materials. Accessibility of support services in the city for enterprise are also important. The specific indicators are: • • • •

Raw materials and other production inputs are located near the city Transportation system for moving raw materials from domestic sources to the city and finished goods to other domestic markets works very well International entry and exit points such as airports, seaports, and other transshipment points are located near the city Availability of support services, such as product or process development, marketing, and business strategy making

4. Human Resources and Training The presence of trainable and adaptive labor pool puts a city at the forefront of business ventures. Businessmen are likely to invest in cities where there is competent labor force and readily available knowledge support services that will guarantee smooth operation of their businesses. Some of the specific indicators are the following: • • • • • • •

Skilled labor needed is available Workers from the local pool are eager to develop their skills Curricula and academic programs in educational institutions equip graduates equip graduates with basic skills needed by the local industry Number of vocational and tertiary educational institutions Available IT training programs Constructive relationship between management and labor Poor labor practices such as discrimination and harassment are discouraged

5. Infrastructure Competitiveness of cities in terms of road networks, adequacy of transport service, and the availability of information and communications technology attract investments. The presence of good quality infrastructure is vital because it affects the productivity and efficiency of enterprises. The specific indicators are the following: • • • • •

City roads / road network and traffic management are well-managed Road and vehicle density Electric power is reliable Water supply is abundant Telephone lines, cellular phones and internet service providers are adequate and reliable

• •

Waste management works well Number of banks

6. Responsiveness of Local Government Units to Business Needs The ability of city officials to respond to the changing needs of business is very important. Local governance is one of the vital shapers of urban competitiveness. Good local leadership that practices participatory approach in governance with strong adherence to accountability and transparency attracts investments and fosters the dynamism and growth of enterprise. Some of the specific indicators are: • • • • • • • •

Securing business and other permits is simple and efficient City government is honest and transparent in its dealings Administration of justice is fair Policies and regulations in the city are reflective of business needs Business taxes imposed are reasonable City’s master development plan is appropriate to business sector’s needs Land use regulations, such as zoning, are reasonable and flexible Percentage of IRA to total LGU revenue

7. Quality of Life A city’s livability is one of the primary considerations of residents and businessmen before relocating in a city. The quality of life factor has been increasingly considered as one of the yardsticks in determining which cities have successfully developed and which have succumbed to the ills of urbanization. The city should be an ideal place to live in aside from having a business environment that is conducive for doing business. The specific indicators are the following: • • • • • • •

The city, especially its roads and public open spaces, and open bodies of water, is always clean Air quality in the city is clean The city’s rest and recreational facilities (cinemas, bookstores, mall, etc.) are adequate Security environment is conducive for business Incidence of theft and murder per 100,000 population Hospital beds per 100,000 population Life expectancy Competitiveness Ranking of Philippine Cities in 2003

Ran k 1 2 3 4 5

Small Cities

Mid-Sized Cities

Metro Cities

Koronadal San Fernando, La Union Tagaytay Legaspi Sta. Rosa

Bacolod San Fernando, Pampanga Cagayan de Oro Batangas General Santos

Marikina Pasig Davao Makati Las Pinas

6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Dagupan Tacloban Surigao Ormos San Carlos, Negros Occidental Naga Dipolog Olongapo Roxas Malaybalay Cavite Puerto Princesa Dumaguete Pagadian Ozamis Cadiz Oroquieta Cotabato Tagum Marawi

Iloilo Baguio Angeles Lipa Iligan

Cebu Mandaluyong Muntinlupa Quezon City Mandaue

Zamboanga Butuan Tarlac

Manila Lapu-Lapu

For more information on the City Competitiveness Program, please contact: AIM Policy Center 4th Floor, AIM Conference Center Manila Benavidez cor. Trasierra Sts., Legaspi Village, Makati City

PART II: DOING BUSINESS IN THE PHILIPPINES

16.

SECURING BUSINESS PERMITS AND BUSINESS REGISTRATION Doing business in the Philippines, either as single proprietorship, partnership or corporation, calls for licenses or permits from government. An investor or businessman needs to obtain a business license in the locality where he will establish his business, as well as register his business with the Department of Trade in case of sole proprietorship, or with the Securities and Exchange Commission in the case of partnerships and corporations. Requirements The documentary requirements in establishing a business or investment in the Philippines include: •

For New Business • Barangay Clearance • Locational Clearance • Fire Safety Inspection Certificate • Electrical Inspection Certificate • Sanitary Permit (for food related establishments) • Pollution Clearance (for manufacturers) • Cultural Tourism Affairs Office Clearance (for tourist-oriented establishments) • TCT or Lease of Contract of Site

• • • •

For Renewal of Licenses or Permits Barangay Clearance Locational Clearance Previous year permit and official receipt for the present year

Registering with the Local Government All businesses are required to secure a mayor's permit or municipal license from the municipality or city where they are located. Various cities and municipalities have different registration procedures. The following are the general requirements: •

Go to the Business Permit and Licensing Office of the city or municipal hall within the area. Secure an application form from the Public Assistance Office.

•

Submit three copies of the form together with a sketch of location •

•

business

Support application with Certificate of Business Name Registration from the DTI-NCR if you are using a firm name

Proceed to the City Treasurer's Office for any payments to be made. Present Mayor's Permit for issuance of municipal licenses Note: Business Permits should be conspicuously displayed in the business establishment

For further inquiries please contact the following: (for business/es in Quezon City only; for other locality/municipality, please coordinate with the respective local government units.) Chief, Business Permits Division Quezon City Hall Elliptical Road, Diliman, Quezon City Tel. No.: (632) 925-6045 loc. 204 / 206 Registering with the Department of Trade and Industry The Department of Trade and Industry (DTI) administers the registration of business names. A business proprietor who wishes to start his/her own business needs to register it with the DTI if he/she names it other than his/her own name. By registering the business name with the DTI, it assures the proprietor that no other individual or group may legally use the business name anywhere in the Philippines. Procedure in Registering with DTI 4. Obtain application forms (duplicate copy), preferred name slip, and index card from the Information Desk and fill these out completely. Only the owner of the business is authorized to sign the forms. 5. Meet the following requirements: •

•

Must be a Filipino citizen and at least 18 years old. Filipinos with names suggestive of alien nationality must submit proof of citizenship such as birth certificate, Professional Regulation Commission ID, voter's ID or passport. If the applicant has acquired Filipino citizenship by naturalization, election, or by other means provided by the law, he must have supporting documents such as 1.) naturalization certificate and oath of allegiance; or 2.) card issued by the Bureau of Immigration and Deportation and affidavit of election. Two recent passport-size pictures

Note: Certain types of business may have other requirements: • • • • • • • •

Service repair shops Real estate brokers Dental/Medical clinic/hospitals Pawnshops Manpower services Engineering services Architectural services Other related services provided by professionals 6. Proceed to the designated window for evaluation

7. Pay required fees at the cashier - Registration and Processing fee 4. Single - P300.00 5. Corporation/Partnership/Cooperative - P500.00

• A penalty of P100.00 is imposed if the BNRS certificate is not renewed within the three-month grace period from the certificate’s expiration date 8. Get priority number 9. Proceed to the waiting area and wait for the number to be called by the examiners at windows 1-10 10. Business Name Certificate is released within 10-15 minutes upon approval For more information about registration of business name, please contact: Department of Trade and Industry - NCR Ground Floor, DTI Main Building 361 Sen. Gil Puyat Ave., Makati City or at designated satellite registration centers in selected cities in Metro Manila Tel. No.: (632) 890-4854

Types of Business For Single Proprietor

Requirements 3. Must be a Filipino citizen, at least 18 years old 4. Two recent 2 x 2 color ID pictures of applicant 5. For Filipinos whose names are suggestive of alien nationality submit proof of citizenship such as: • Birth certificate • PRC ID • Voter’s ID • Passport

Applicable Fees Processing fee of P300 + P15 Documentary Stamp

3. Certified true copy of the certificate of authority to engage in business in the Philippines per R.A. 7042 issued by the DTI-NCR

For Foreign Investor (Single Proprietor)

4. Certified true copy of latest business permit from the concern Local Government Unit (LGU) 5.

Note: With additional requirements on a case to case basis depending on actual examination and processing of the application

Alien certificate of registration (ACR) updated for the current year and present original copy of comparison

6. Accomplished DTI Form No. 17 under R.A. 7042 7. Current written appointment of Filipino Resident Agent 8. Clearance from other involved agencies such as Department of Science and Technology (DOST), PNP, etc. 9. In case of alien retailer, current year’s permit to engage in retail business per R.A. 1180 For Corporation, Partnership and Cooperative

•

Filled-up application form

•

Certified photocopy of SEC and CDA registration and Articles of Incorporation, Partnership or Cooperative (by the board of secretary)

•

Board Resolution for the authorized signatory, if signatory is not one of the incorporators

•

Board Resolution for the registration of an adopted name/branch with specific address (if applicable)

Processing fee of P500

For more information on the registration of business name, please contact: Department of Trade and Industry - NCR Ground Floor, DTI Main Building 361 Sen. Gil Puyat Ave., Makati City or at designated Satellite Registration Centers in selected cities in Metro Manila Tel. No.: (0632) 890-4854

General Registration Requirements Investors setting up business in the country have to comply with the following general requirements: Types of Investments or Business Registration of corporations and partnerships Registration of business name/single proprietorship Registration for availing of incentives under Executive Order 226 or the Omnibus Investment Code Registration with other Investment Promotion Agencies for availing of incentives

Securing Tax Identification Number (TIN) Securing locational clearance/business permits for firms located in Metro Manila Securing membership in the government health care benefits system Securing an employer's SSS number Securing electric service connection

Securing water service

Government Agency In Charge Securities and Exchange Commission Department of Trade and Industry Board of Investments

Philippine Economic Zone Authority Subic Bay Metropolitan Authority Clark Development Corporation Cagayan Economic Zone Authority Phividec Industrial Authority Zamboanga Economic Zone Authority Bureau of Internal Revenue

Contact Information (632) 726-0931 (632) 890-4901 (632) 818-1831

(632) 891-6380 (632) 897-1857, 898-1957 (632) 897-1857, 898-1957 (632) 811-5181, 8115182, 811-5183 (632) 636-5773, 6365778, 636-5780 (632) 817-5330, 818-1338 (632) 981-7000, 929-7676

Metro Manila Development Authority or City Hall/ Municipal Offices in the localities where the business would be set up Philippine Health Insurance Corporation

(632) 882-4159, 8820893, 882-0895

Social Security System

(632) 920-6401, 9210660, 921-0825 (632) 631-2222, 631-1111

Manila Electric Co. for business in MERALCO franchise area; or local electric utility firms for companies located in nonMERALCO franchise areas Maynilad Water Company and/or Manila Water Company and Local Water Utilities Administration for firms located outside Metro Manila

(632) 637-9999, 637-5643

(632) 528-0670, 7312555, 372-2748, 9205417; (632) 920-5581, 920-5599

Securing telephone services connection

Philippine Long Distance Telephone Co. BayanTel DigiTel Smart Tel Globelines Tel

(632) 171 (632) (632) (632) (632)

412-1212 426-7212 888-1111 521-7225

For quick assistance, please contact: Board of Investments' One Stop Action Center (BOI-OSAC) Tel. No.: (632) 818-1831 Email Add: [email protected]

Operational Requirements Certain requirements have to be complied with by the enterprise while in operation, expansion and/or diversification. While in operation, the following need to be accomplished: Types of Investments or Business Reportorial requirements (i.e. Audited Financial Statement, General Information Sheet) amendment of articles of incorporation/partnership Reportorial requirements (i.e. Audited Financial Statement, ITR, etc.); registration of business/expansion for incentives

Regular tax payments Registration of Customs Bonded Warehouse (on Expansion/ Diversification) Opening of Letter of Credit (L/C) Export Declaration (Authority to Load/Certificate of Origin) Information sheet for first-time exporters Payment of wharfage fees/exemption from payment

Government Agency In Charge Securities and Exchange Commission

Board of Investments Philippine Economic Zone Authority Subic Bay Metropolitan Authority Clark Development Corporation Cagayan Economic Zone Authority Phividec Industrial Authority Zamboanga Economic Zone Authority Bureau of Internal Revenue Bureau of Customs

Contact Information (632) 724-8803

(632) 818-1831 (632) 891-6380 (632) 897-1857, 898-1957 (632) 897-1857, 898-1957 (632) 811-5181, 8115182, 811-5183 (632) 636-5773, 6365778, 636-5780 (632) 817-5330, 818-1338 (632) 981-7000, 929-7676 (632) 527-4517, 527-4537

Authorized Agent Banks Bureau of Customs - Export Coordination Division Authorized Agent Banks

(632) 527-4517, 527-4537

Philippine Ports Authority

(632) 527-8356, 527-8136

Special Permits/Clearances for Selected Export Businesses Export of products will need clearances and permit prior to every shipment: Types of Investments or Business Clearance for export of animal and animal by-products

Clearance for plant export Clearance for export of food, drugs, and chemicals Clearance/quota for coffee exports Clearance for quota allocation of garment and textile exports Clearance for export of fisheries and other aquatic products Special documentation certificate for preferential treatment of handicrafts export Export clearance for regulated coconut products (matured nuts and seedlings) Commodity clearance and license for fiber export

Government Agency In Charge Bureau of Animal Industry For exotic animals, endangered animals Protected Areas and Wildlife Bureau Bureau of Plant Industry Bureau of Food and Drugs International Coffee Organization Certifying Agency Garments and Textile Export Board Bureau of Fisheries and Aquatic Resources

Contact Information (632) 920-4066, 927-3205 (632) 924-6031, 928-0805

(632) 527-4446, 924-7761 (632) 842-8429

(632) 890-4651, 890-4312 (632) 374-2065, 371-1173

Department of Trade and Industry

(632) 890-4901

Philippine Coconut Authority

(632) 928-4501, 920-0398

Fiber Industry Development Authority

(632) 924-7985, 924-7986

Special Permits / Clearance / Registration Special Permits / Clearance / Registration are required for the following projects / activities: Types of Investments or Business Various types of visas - Special Investor's Resident Visa (SIRV), Special Retiree's Resident Visa (SRRV), 47(a)2, Treaty Trader's Visa, PreArranged Employment Visa and its derivatives - Alien Certification of Registration (ACR), Immigration Certificate of Residence (ICR), Emigration Clearance Certificate (ECC), and Special Return Certificate (SRC) Alien Employment Permit (AEP)

Government Agency In Charge Bureau of Immigration

Contact Information (632) 527-3259, 530-0721

Department of Labor and Employment

(632) 527-3516, 5273512, 527-2127

Clearance for garment and textile exporters Registration for operation of Customs Bonded Manufacturing Warehouse Environmental Compliance Certification Projects involving land use/conversion

Permit to construct/operate pollution control devices Trademarks/Patents registration Registration of powergeneration projects Philippine Standard (PS) Quality Mark to ensure that locally-manufactured consumer products conform to Philippine national standards Import Commodity Clearance (ICC) Quality Mark to ensure that imported consumer products conform with Philippine national standards License-to-Operate for projects which involve food, chemicals and others Registration of tourism projects Franchise for mass transit operation Telecommunications projects License/clearance for defenserelated projects Registration of advanced technology Clearance for health-related projects

Garments and Textile Export Board Bureau of Customs

(632) 890-4651, 890-4312

Environmental Management Bureau Department of Environment and Natural Resources Housing and Land Use Regulatory Board National Housing Authority Department of Agrarian Reform Department of Environment and Natural Resources Intellectual Property Office

(632) 920-4425

Department of Energy

(632) 892-4619, 8446384, 844-6386 (632) 921-3541, 924-5200 (632) 838-0545, 8380544

National Power Corporation Bureau of Products and Standards

(632) 527-4517, 527-4537

(632) 929-6626, 929-8349 (632) 924-3384, 924-3389 (632) 928-4561, 923-0395 (632) 928-6821, 926-4398 (632) 929-6626, 929-8349

Bureau of Products and Standards

(632) 838-0545, 8380544

Bureau of Food and Drugs

(632) 842-8429

Department of Tourism Land Transportation Franchising and Regulatory Board National Telecommunications Commission Department of National Defense Philippine National Police Department of Science and Technology Department of Health

(632) 523-8411, 523-7314 (632) 921-2616, 426-2508 (632) 924-4042, 4242559, 426-8215 (632) 911-5061, 421-6698 (632) 723-0401, 725-3245 (632) 837-2071, 838-8376 (632) 743-8301, 743-6107

Registering with the Bureau of Internal Revenue (BIR) For taxation purposes, every business enterprise has to register with the Bureau of Internal Revenue (BIR). The procedures in registering at the BIR are the following:

12. Secure a permanent record file number of Tax Identification Number (TIN) from the BIR National Office in Diliman, Quezon City 13. Register the business/trade name at the nearest BIR office. Secure and file an application form together with the following supporting papers: • • • •

Mayor's Permit Certificate of Business Name Registration from DTI Articles of Partnership or Corporation Residence certificate

14. Secure authority to print books of account, invoices, receipts, and other accounting records by filling out four copies of an application form with attached draft copies of the material to be printed as well as copy of the job order. For more information on acquiring TIN and registering with the BIR, please contact: Bureau of Internal Revenue National Internal Revenue Building Agham Road, Diliman, Quezon City Tel. Nos.: (632) 929-7676, 927-2511 Fax No.: (632) 926-3420 Or visit the nearest BIR satellite offices and regional branches all over the country. Registering with the Social Security System (SSS) An employer or any person who uses the services of another person in business, trade, industry or any undertaking must be registered with the SSS. Social, civic, professional, charitable and other non-profit organizations, which hire the services of employees, are considered "employers". Overseas Filipinos under the Coverage of SSS An overseas worker may be covered on a voluntary basis if he is employed in a country that has signed an agreement with the Philippine government to include Filipinos and their nationals in the social security coverage of either country, e.g. United Kingdom. A Filipino recruited by a foreign-based employer for employment abroad or one who legitimately entered a foreign country (i.e. tourist, student) and is eventually employed may be covered on a voluntary basis. He should not be over 60 years old. He may also apply for coverage as an OFW, if he was an SSS member and was separated from employment. If he is already paying voluntarily, he may also apply to change his membership status to a voluntary OFW member. General Requirements in the Application for SSS A person registering with the SSS for the first time as an employee, selfemployed, non-working spouse or OFW should submit, together with the SSS registration form, a photocopy of his/her birth or baptismal certificate or passport. In the absence of these documents, any two of the following documents: •

record of employment

•

GSIS member's record

•

certificate from the National Archive

•

birth/baptismal certificate of children

•

marriage contract

•

driver’s license

•

school records or voter’s ID card

•

Alien Certificate of Registration, or

•

joint affidavit of two disinterested parties attesting to the correct name and/or fact of birth of the person concerned

A married person should also submit his or her marriage contract upon registration. If reporting children, he or she should submit the birth or baptismal certificate of the child, if legitimate; proof of filiations showing acknowledgment of the child, if illegitimate; or decree of adoption, if legally adopted. The original or certified true copies of these documents should be presented to the SSS for authentication. An OFW should accomplish SSS Form OW-1 (Overseas Worker Record Form) and submit it together with the general requirements. For more information on the registration at SSS, please contact: Social Security System SSS Bldg., East Avenue, Diliman, Quezon City Tel. Nos.: (632) 920-6401, 920-6446 Email: [email protected] Website: www.sss.gov.ph

17. REGISTRATION OF PARTNERSHIPS AND CORPORATIONS The registration of partnerships and corporations is one of the principal functions of the Securities and Exchange Commission (SEC). The Commission is the lead government agency that regulates and supervises the operation of all corporations, partnerships or associations who are the grantees of primary franchises and/or a license or permit issued in the Philippines. Online Registration through the SEC-iRegister In compliance with Republic Act No. 8792 or the E-Commerce Act, the SEC has made available to the public the convenience of online registration through the SEC-iRegister system. It is a quick, affordable and user-friendly service that is available to the public 24 hours a day, 7 days a week. An easy, step-by-step guide allows everyone to use the web-based registration system from the convenience of their desktop. With SEC-iRegister, clients can do the following online: Ÿ Ÿ Ÿ Ÿ Ÿ

Verify proposed corporate name with records division; File their application for registration; Pay the appropriate registration fees online; Deposit the paid-up capital online; and Receive notice of approval within the same day.

SEC Express Lane Registration

Under the SEC express lane system, applications for registration of articles of incorporation and by-laws and articles of partnership with cash payment of subscription are processed upon presentation of all documents. The certificate of registration is released two days after payment of filing fee. The following are the steps in SEC registration: •

Verify proposed corporate name with records division. Reserve name in case incorporation documents will not be submitted within 3 days. Reservation for a fee is up to 30 days.

•

Present accomplished express lane forms/documents to the express lane unit of the Company Registration and Monitoring Department (CRMD) at SEC for pre-processing. Express Lane forms are available at the Express Lane Center 8. Business requiring a secondary franchise for their prior comments. 9. Upon receipt of favorable endorsement, stamping of "approved for payment" follows if all papers are found in order by processing staff.

•

Proceed to Cashier for payment of filing fees.

•

Cashier forwards the application for records set up assignment work cell, sorting, encoding, and assignment of registration number. Then forwarded to the Express Lane Unit for recording, typing of certificate of incorporation and review.

•

Express Lane Unit forwards the application incorporation to the director for signature.

•

Approved documents are updated through the computer for Work Assignment Status (WAS).

•

Claim the certificate of incorporation at the Releasing Unit, Records Division upon presentation of receipt of payment of filing fee.

Type of Business

Requirements

with

certificate

of

Business Classification

A. Corporations with 100% Filipino Equity

B. Corporations with more than 40% Foreign Equity

•

Name Verification Slip

•

Articles of Incorporation and By-Laws

•

Treasure’s Affidavit

•

Statement of Assets and Liabilities executed under oath by the treasurer of the corporation

•

Bank Certificate of Deposit

•

Authority to verify Bank Account

•

Registration Data Sheet

•

Other requirements for specific businesses

In addition to (A) and (B) also submit application form: 3. Form F-100 – For new corporations 4. Form F-101 – For registered corporations increasing its foreign equity to more than 40% 5. Form F-102 – For registered corporations with more than 40% foreign equity increasing further the percentage of such equity 6. Form F-105 – For new partnership with foreign equity 7. Form F-106 – For registered partnership with foreign equity increasing further the percentage of foreign equity

9. Mass media except recording 10. Retail trade enterprises with paid-up capital of less than US$2,500,000 11. Cooperatives 12. Private security agencies 13. Small-scale mining 14. Utilization of marine resources 15. Ownership and operation of cockpits. 16. Manufacture, repair, stockpiling and/or distribution of nuclear weapons, biological, chemical and radiological weapons and anti-personnel mines 17. Manufacture of firecrackers and other pyrotechnic devices •

•

Financing companies regulated by the Securities and Exchange Commission (SEC) Investment houses regulated by the SEC

C. Corporations with 60% Filipino – 40% Foreign Equity

The following in addition to the above:

3. Exploration, development and utilization of natural resources Proof of Inward Remittance by 4. Ownership of private lands non-resident aliens and foreign 5. Operation and corporations or their affidavit management of public manifesting intention not to utilities register investment with BSP 6. Ownership/establishment and administration of Note: All documents signed educational institutions outside the Philippines must be 7. Culture, production, milling, duly authenticated by the processing, trading Philippine consular office in the excepting retailing, of rice place where they were and corn and acquiring, by executed. barter, purchase or otherwise, rice and corn and the by-products thereof 8. Contracts for the supply of materials, goods and commodities to government-owned or controlled corporation, company, agency or municipal corporation 9. Manufacture, repair, storage, and/or distribution of products and/or ingredients requiring Philippine National Police (PNP) / Department of National Defense (DND) clearance 10. Manufacture and distribution of dangerous drugs 11. Sauna and steam bathhouses, massage clinics and the like 12. All forms of gambling 13. Domestic market enterprises with paid-in equity capital of less than the equivalent of US$200,000 14. Domestic market enterprises which involve advanced technology or employ at least fifty (50) direct employees with paidin-equity capital of less than the equivalent of US$100,000

D. Corporations with 30% Foreign Equity

Same requirements with Corporations having 40% Foreign Equity

Advertising

E. Corporations with 25% Foreign Equity

-do-

• •

•

F. Corporations with 20% Foreign Equity

-do-

Private recruitment, whether for local or overseas employment Contracts for the construction and repair of locally-funded public works except: • Infrastructure/ development projects covered in RA 7718 • Projects which are foreign funded or assisted and required to undergo international competitive bidding Contracts for the construction of defenserelated structures

Private radio communications network

G. For Foreign Corporations/ Partnerships

•

Application form

•

Name verification slip

•

Certified Copy of Board Resolution authorizing the establishment of an office in the Philippines, designating the resident agent to whom summons and other legal processes may be served on behalf of the foreign corporation; and stipulating that in the absence of such agent or upon cessation of its business in the Philippines, the SEC shall receive any summons or legal process as if the same is made upon the corporation at its home office.

•

Financial statements for the immediately preceding year at the time of filing of the application, certified by an independent Certified Public Accountant of the home country

•

Certified copies of the Articles of Incorporation/Partnership with an English translation if in a foreign language

•

Proof of inward remittance such as bank certificate of inward remittance or credit advices

•

Registration data sheet

•

Resident agent’s acceptance of appointment

•

For representative – Affidavit executed by the President or the Resident Agent stating that the applicant is in sound financial condition

Schedule of Fees The examining and filing fees of some basic registration documents are as follows: •

Articles of Incorporation • Stock corporation with par value

•

Stock corporation without par value

1/5 of 1% of the authorized capital stock or the subscription price of the subscribed capital stock whichever is higher but not less than P1,000 1/5 of 1% of the authorized capital stock computed at P100 per share or the subscription price of the subscribed capital stock whichever is higher but not less than P1,000

•

Certification of Paid-up Capital, Outstanding Stock, Percentage of Filipino Stockholdings, etc.

P400

•

Registration fee for Stock and Transfer Book

P150

•

Registration fee for Membership Book

P75

•

Name Verification – Reservation Fee

P40 per allowed name

For application of registration with SEC, please contact: Securities and Exchange Commission SEC Bldg., EDSA cor. Ortigas Ave., Greenhills, Mandaluyong City Tel. Nos.: (632) 726-0931 / 726-0939 Fax Nos.: (632) 727-6895 / 725-0543

18. REGISTRATION OF COOPERATIVES A cooperative is a duly registered association of persons who want to achieve a common lawful social or economic end. Members of the cooperative pool their money, resources and talent to build capital, produce goods and raise their income. Cooperatives serve as a mechanism for marketing the members’ produce and for availing of loans at low interest rates. The Cooperative Development Authority (CDA) is the lead government agency mandated by virtue of the Republic Act No. 6939 to promote the viability and growth of Philippine cooperatives. It is the only government agency that registers cooperatives. Cooperative Express Lane Registration The Cooperative Express Lane Registration is a program which intends to facilitate and create an efficient system of registering cooperatives. Registration under the “Express Lane” involves a 2-hour “process-release” of Certificate of Registration using Express Lane forms, counted from the receipt of complete documents by the CDA. Steps

Requirements

Applicable Fees

E. Secure Express Lane Registration Proforma Forms available for sale at the Registration Section of the different CDA Extension Offices. F. Submit duly accomplished forms and other required documents to the Registration Section. G. Pay filing fees at the Cashier. H. Claim the Certificate of Registration from the Releasing Unit at the Registration Section upon presentation of the Official Receipt of filing fees.

5. 6. 7. 8. 9.

Name Verification Slip Articles of Cooperation Cooperative By-Laws Treasurer’s Affidavit Bond of Accountable Officers 10. Economic Survey 11. Undertaking to Change Cooperative Name 12. Certificate to Submit Reportorial Requirements 13. Certificate of PreMembership Education Training Seminar from the duly accredited institutions or from the CDA Regional/Provincial Offices 14. Endorsement letter from other Government Agencies where applicable

7. Listings of Cooperatives, Proforma Articles of Cooperation, By-Laws and Economic Survey (in diskette): P50.00 per diskette 8. Name Verification/ Reserved Fee: P30.00 per allowed name 30 days reservation 9. Filing Fee: 1/10 of 1% of the authorized share capital but not lower than 1,000.00

Enterprises that Need Endorsement from Other Government Agencies Activity

Government Agency

Workers Cooperative

Specialized Agency concerned

Air Transport

Civil Aeronautics Board

Banking, Pawnshop and other financial intermediaries with quasi-banking functions

Bangko Sentral ng Pilipinas

Professional Boxing

Games and Amusement Board

Operation of games of chance (e.g. lotto)

Philippine Charity Sweepstakes Office

Educational Institution-college or tertiary course

Commission on Higher Education

Educational Institution-elementary to high school

Department of Education

Educational Institution-technical or vocational

Technical Education and Skills Development Authority

Electric Power Plants

Department of Energy

Hospitals

Department of Health

Insurance

Insurance Commission

Land Transport

Land Transportation Franchising and Regulatory Board

Water Transport construction and building of vessels

Maritime Industry Authority

Recruitment for overseas employment

Philippine Overseas Employment Administration

Security Agency

Philippine National Police

Manufacture, repair, storage and/or distribution of products and/or ingredients of firearms, gun powder and all those indicated in E.O. 95 Series 2003 Foreign Investment Negative List

Philippine National Police

Manufacture, repair, storage and/or distribution of products i.e. guns/ammunition for warfare, military ordinance and all those indicated in E.O. 95 Series 2003 Foreign Investment Negative List

Department of National Defense

For more information on the establishment of cooperatives, please contact: Cooperative Research, Information and Training Division Cooperative Development Authority Manila Extension Office 6/F Ben-Lor Bldg., 1184 Quezon Ave., Quezon City Tel. Nos.: (632) 372-6895 / 372-3808 Fax Nos.: (632) 372-3808 / 373-6896 Website: www.cooptrade.net

19. ONE-STOP ACTION CENTER FOR INVESTMENTS The Board of Investments’ One-Stop Action Center for Investment or OSAC expedites the setting up of businesses in the Philippines by providing frontline services and assistance to walk-in investors. Competent personnel are available to answer investors’ inquiries and the process of investor’s business registration thru the Investment Promotion and Network (IPN) consisting of 24 government agencies. The IPN facilitates transactions and resolves issues and concerns through a strong linkage and effective networking of the agencies concerned with investments. The OSAC is located at the: Board of Investments Ground Floor, Industry and Investments Building 385 Sen. Gil Puyat Avenue, Makati City Telefax No.: (632) 895-8322 E-mail: [email protected] or [email protected]

20. OMNIBUS INVESTMENT CODE OF 1987 AND FOREIGN INVESTMENTS ACT OF 1991 Republic Act 7042, also known as the Foreign Investments Act of 1991, defines and outlines the procedures and conditions under which foreign nationals, including former Filipino citizens, may invest and do business in the Philippines with a required paid-in capital of at least US$200,000. The law was amended by Republic Act 8179 to further liberalize the entry of foreign investments into the country. Foreign investments refer to equity investments made by a foreign national in the form of foreign exchange and/or other assets actually transferred to the Philippines and duly registered with the Central Bank, which shall assess and appraise the value of such assets. These non-cash assets may be in the form of capital goods and patents, formulae, or other technological rights or processes. Specific Areas of Equal Investment Rights for Former Filipino Nationals While most areas of business have limits for foreign investors, Section 9 of the amended Foreign Investments Act of 1991 lists the following types of businesses where former natural-born Filipinos, who have not elected dual citizenship, can enjoy the same investment rights as Philippine citizens: 1. Cooperatives

2. Rural banks 3. Thrift banks and private development banks 4. Financing companies Former natural-born Filipinos can also engage in activities under List B of the Foreign Investments Negative List. This means that their investments shall be treated as Filipino or will be considered as forming part of Filipino investments in activities closed or limited to foreign participation. The equal investment rights of former Filipino nationals do not extend to activities reserved by the Constitution for Filipino citizens, including the following: 1. 2. 3. 4. 5. 6.

Exercise of profession Defense-related activities Security agency Small-scale mining Rice and corn industry Cockpit operation and management

Former natural-born Filipinos have been given the right to be transferees of private land up to a maximum of 5,000 square meters in the case of urban land or three (3) hectares in the case of rural land to be used by him for business or other purposes. Please refer to the section on land ownership for details. Former natural-born Filipinos who have elected dual citizenship shall not be covered by the prohibitions set forth above, by virtue of Republic Act 9225. Dual citizens are not prohibited from enjoying the same investments rights as Philippine citizens. General List of Businesses Exclusive to Filipino Nationals Section 8 of the Amended Foreign Investments Act (FIA) enumerates the investment areas reserved for Filipino nationals. The Foreign Investments Negative Lists (FINL) are classified as follows: •

List A - consists of areas of activities reserved for Philippine nationals where foreign equity participation in any domestic or export enterprise engaged in any activity listed therein shall be limited to a maximum of forty percent (40%) as prescribed by the Constitution and other specific laws.

•

List B - consists of areas of activities where foreign ownership is limited pursuant to law such as defense or law enforcement-related activities, or which have negative implications on public health and morals, and small and medium-sized domestic market enterprises with paid-in equity capital of less than US$200,000.

The revised Foreign Investments Act also deleted List C of the Foreign Investments Negative List. List C contains investment areas already adequately served by existing enterprises and in which foreign investments need not be encouraged further. Deletion of this list is expected to open further the market to foreign investments and keep existing firms efficient and responsive to the needs of consumers. Consumers will also benefit through wider choices of products in terms of quality and prices. Additional Requirements

Former natural-born Filipinos who wish to do business in the Philippines must also submit a copy of birth certificate, certified by the local civil registrar or the National Statistics Office. For those born abroad, a certificate of birth from the appropriate government agency of the country where the birth is recorded will be required. It must show the father or mother to be a Filipino at the time of birth or if the citizenship of the parents is not indicated, additional proof that the parent is a Filipino citizen or has not lost his/her Filipino citizenship at the time of the applicant investor’s birth. Those born before January 17, 1973 of Filipino mothers must also submit all of the following: 4. Certified true copies of his/her sworn statement of election of Filipino citizenship 5. Oath of allegiance from civil registrar where documents were filed and/or forwarded 6. Identification certificate issued by the Bureau of Immigration In case of loss and/or destruction of record of birth or non-registration of birth, the following must be submitted: d. Certificate of non-availability of birth certificate on account of loss and/or destruction of birth record from the local civil registrar and/or appropriate government agency if birth was registered abroad e. Copy of birth certificate of mother or father certified by the local civil registrar or the NSO f.

Affidavit of two (2) disinterested persons attesting to their personal knowledge that at the time of the applicant’s birth, he/she was born of a Filipino mother or father

Documents executed or issued abroad must be authenticated by the Philippine Embassy or Consulate having jurisdiction over the place of execution or issuance of the document. BENEFITS AND INCENTIVES ON TAXES AND TARIFFS Investment Priorities Plan (IPP) The IPP is a list of various areas of economic activities for investment eligible for government incentives as provided for in the Omnibus Investments Code of 1987, as amended. This is drawn up and revised every year in consultation with concerned government agencies and the private sector. Generally, the IPP seeks to attain the following goals: 1. 2. 3. 4.

To uplift the material well-being of the poor and the marginalized To enhance global competitiveness of Philippine industries To ensure sustainable development To take advantage of global and international developments

An enterprise may still be entitled to incentives even if the activity is not listed in the IPP so long as:

• •

at least 50% of production is for exports, if Filipino-owned enterprise; and at least 70% of production is for exports, if majority foreign-owned enterprise (more than 40% foreign equity)

Incentives to Registered Firms Incentives/privileges may be enjoyed only upon registration. In general, registered enterprises are entitled to the following incentives: Tax Exemptions 1. Income Tax Holiday (ITH) a. BOI registered enterprises shall be exempt from the payment of income taxes reckoned from the scheduled start of commercial operations as follows: • • • • •

New projects with a pioneer status for six (6) years New projects with a non-pioneer status for four (4) years Expansion projects for three (3) years. As a general rule, exemption is limited to incremental sales revenue/volume New or expansion projects in less developed areas for six (6) years, regardless of status Modernization projects for three (3) years. As a general rule, exemption is limited to incremental sales revenue/volume

b. The income tax holiday is limited in the following cases: •

Export traders may be entitled to the ITH only on their income derived from the following: -

•

Export of new products, i.e., those which have not been exported in excess of US$100,000 in any of the two (2) years preceding the filing of application for registration, or Export to new markets, i.e., to a country where there has been no recorded import of a specific export product in any of the two (2) years preceding the application for registration.

Mining Activities -

Exploration and development of mineral resources are not entitled to ITH Mining and/or quarrying without mineral processing are not entitled to ITH Mining and processing of aggregates are not entitled to ITH

c. Newly registered pioneer and non-pioneer enterprises and those located in Less Developed Areas (LDAs) may avail themselves of a bonus year in each of the following cases: •

The average cost of indigenous raw materials used in the manufacture of the registered product must at least be fifty percent (50%) of the total cost of raw materials for the preceding years prior to the extension, unless the Board prescribes a higher percentage.

•

The ratio of the total imported and domestic capital equipment to the number of workers for the project does not exceed US$10,000 to one (1) worker.

•

The net foreign exchange savings or earnings amount to at least US$500,000 annually during the first three (3) years of operation to be determined by the BOI at the end of such three year period.

In no case shall the registered pioneer firm avail of this incentive for a period exceeding eight (8) years. 2. Exemption from taxes and duties on imported spare parts A registered enterprise with a bonded manufacturing warehouse shall be exempt from customs duties and national internal revenue taxes on its importation of required supplies/spare parts for consigned equipment or those imported with incentives. 3. Exemption from wharfage dues and export tax, duty, impost and fees All enterprises registered under the IPP will be given a ten (10) year period from the date of registration to avail of the exemption from wharfage dues and any export tax, impost and fees on its non-traditional export products. 4. Tax exemption on breeding stocks and genetic materials Registered enterprises will be exempted from the payment of all taxes and duties on their importation of breeding stocks and genetic materials within ten (10) years from the date of registration or commercial operation reasonably needed in the registered operations. Tax Credits 1. Tax credit on tax and duty portion of domestic breeding stocks and genetic materials A tax credit equivalent to one hundred percent (100%) of the value of the tariff duties and taxes on local breeding stocks within ten (10) years from date of registration or commercial operation for agricultural producers. 2. Tax credit on raw materials and supplies A tax credit equivalent to the national internal revenue taxes and duties paid on raw materials, supplies and semi-manufacture of export products and forming part thereof shall be granted to a registered enterprise. Additional Deductions from Taxable Income 13. Additional Deduction for Labor Expense (ADLE) For the first five (5) years from registration, a registered enterprise shall be allowed an additional deduction from taxable income equivalent to fifty percent (50%) of wages of additional skilled and unskilled workers in the direct labor force. This incentive shall be granted only if the enterprise meets

a prescribed capital to labor ratio and shall not be availed simultaneously with ITH. This additional deduction shall be doubled if the activity is located in an LDA. 2. Additional deduction for necessary and major infrastructure works Registered enterprises located in LDAs or in areas deficient in infrastructure, public utilities and other facilities may deduct from taxable income an amount equivalent to the expenses incurred in the development of necessary and major infrastructure works it may have undertaken with the prior approval of the BOI in consultation with other government agencies concerned. This privilege, however, is not granted to mining and forestry-related projects as they would naturally be located in certain areas to be near their sources of raw materials. Non-Fiscal Incentives 1. Employment of foreign nationals A registered enterprise may be allowed to employ foreign nationals in supervisory, technical or advisory positions for five (5) years from date of registration. The positions of president, general manager, and treasurer of foreign-owned registered enterprises or their equivalent shall, however, not be subject to the foregoing limitations. 14. Simplification of customs procedures for the importation of equipment, spare parts, raw materials, and supplies and exports of processed products by registered enterprises in the operation of their bonded warehouses. 15. Importation of consigned equipment for a period of ten (10) years from date of registration, subject to posting of re-export bond. 4. The privilege to operate a bonded manufacturing/trading warehouse subject to Customs rules and regulations. Entrepreneurial Development Services Considering the multitude of OFWs, and the magnitude of foreign exchange that they continue to contribute to the economy, the Board of Investments (BOI) believes that OFWs are excellent sources of investment into the Philippines, hence, the inclusion of overseas Filipinos among BOI’s target investors. To make its investment promotions effort for this sector effective and gain more impact, the BOI has integrated its overseas promotions program with the Overseas Workers Welfare Administration’s (OWWA) Reintegration Preparedness Program. Among the activities and services of the BOI for OFWs are: 1. Conduct of Business/Investment Counseling Seminar 2. Conduct of Entrepreneurial Training Workshop Depending on the preference or need of a particular job site, the BOI may conduct either a general investment briefing or a more advanced seminar workshop dealing with entrepreneurship and business/investment counseling.

3. Assistance in the preparation of project report/project feasibility for BOI registration 4. Participation in investment fairs or exhibitions overseas as venue for BOI to promote awareness among OFWs or Filipinos overseas 5. Assistance in joint venture partnership 6. Referrals to financing programs for additional capital. Provision of guidance in setting up the business •

Registering the business (documentary and procedural requirements of the Securities and Exchange Commission for partnership and corporation, and of the Department of Trade and Industry for sole proprietorship)

•

Securing Mayor’s permit

An investor who would like to engage in businesses and avail of incentives can simultaneously file his/her application for registration with the SEC/ BTRCP and application for incentives with the Board of Investments. The addresses and contact information are as follows: Board of Investments Department of Trade and Industry Industry and Investments Bldg. 385 Sen. Gil Puyat Ave., Makati City Tel. Nos.: (632) 890-9332 / 897-6682 / 895-3640 Fax Nos.: (632) 895-3512 / 890-3172 Bureau of Trade Regulation and Consumer Protection Department of Trade and Industry Trade and Industry Bldg., 361 Gil Puyat Ave., Makati City Tel. Nos.: (632) 890-5148 / 890-4901/05 loc. 416 Fax No.: (632) 890-4812 Securities and Exchange Commission SEC Bldg., EDSA cor. Ortigas Ave., Greenhills, Mandaluyong City Tel. Nos.: (632) 726-0931 / 726-0939 Fax Nos.: (632) 727-6895 / 725-0543

21. RETAIL TRADE LIBERALIZATION ACT Republic Act 8762, also known as the Retail Trade Liberalization Act of 2000, was enacted to promote consumer welfare by attracting and promoting productive investments of foreign nationals and Filipinos overseas to stimulate economic growth, and enable Philippine goods and services to become globally competitive through the liberalization of the retail trade sector. The law defines retail trade as any act, occupation or calling of habitually selling merchandise, commodities, or goods directly to the general public for consumption. Exempted Trade Activities The law shall not apply to the following: 1. Sales by a manufacturer, processor, laborer or worker, to the general public of products manufactured, processed or produced by him if his capital does not exceed One Hundred Thousand Pesos (P100,000) 2. Sales by a farmer or agriculturist selling the products of his farm 3. Sales in restaurant operations by a hotel owner or inn-keeper irrespective of the amount of capital, provided that, the restaurant is incidental to the hotel business 4. Sales that are limited only to products manufactured, processed or assembled by a manufacturer through a single outlet, irrespective of capitalization Foreign Equity Participation

Foreign-owned partnerships, associations, and corporations formed and organized under the laws of the Philippines may, upon registration with the SEC and/or DTI, or in the case of single proprietorship with DTI, engage or invest in the retail trade business, subject to the following categories: d. Category A – Enterprise with paid-up capital equivalent in Philippine Pesos of less than US$2.5 Million is reserved exclusively for Filipino citizens and corporations owned by Filipino citizens. e. Category B – Enterprise with a minimum paid-up capital equivalent in Philippine Pesos of US$2.5 Million but less than US$7.5 million may be wholly owned by foreigners except for the first two (2) years after the effectivity of this Act wherein foreign participation shall be limited to not more than sixty percent (60%) of total equity. f.

Category C – Enterprise with a paid up capital equivalent in Philippine Pesos of US$7.5 million or more may be wholly owned by foreigners, provided, however, that in no case shall the investments for establishing a store in Categories B and C be less than the equivalent in Philippine Pesos of Eight Hundred Thirty Thousand US Dollars (US$830,000).

g. Category D – Enterprise specializing in high-end or luxury products with paid up capital equivalent in Philippine Pesos of Two Hundred Fifty Thousand US Dollars (US$250,000) per store may be wholly owned by foreigners. Rights of Former Filipino Citizens Under Sec. 4 of the law, natural-born citizens of the Philippines who have lost their Philippine citizenship but who reside in the Philippines, are granted the same rights as Filipino citizens in the retail trade business. For more information on Retail Trade Liberalization, please contact: The Legal Department Board of Investments (BOI) Industry and Investments Bldg. 385 Sen. Gil Puyat Ave., Makati City Tel. Nos.: (632) 897-6682 loc. 314 or 302 / 897-3084 / 896-7895 Fax No.: (632) 895-3978

22. LAND ACQUISITION AND OWNERSHIP Land Ownership by Filipinos Overseas Article XII Section 8 of the Philippine Constitution provides that a natural-born citizen of the Philippines who has lost his/her Philippine citizenship may be a transferee of private lands subject to limitations provided by law. The laws on land ownership by Filipinos overseas are contained in Batas Pambansa Blg. 185 and Republic Act 8179, which amended the Foreign Investment Act of 1991. BP 185 stipulates guidelines on land ownership by former Filipinos for purposes of establishing residence, while Section 10 of RA 8179 specifies entitlements and conditions for land acquisition for investment purposes. Transferee The acquisition or transfer of private land refers to either voluntary or involuntary sale, devise or donation. Involuntary sale includes sales on tax delinquency, foreclosures, and executions of judgment. Qualifications of Former Filipinos Both laws define former Filipinos as citizens of the Philippines from birth without having to perform any act to acquire or perfect their Philippine citizenship, who lost said Philippine citizenship, and who have the legal capacity to enter into a contract under Philippine laws. Provisions on Land Ownership The following are the provisions of BP 185 and RA 7042, as amended, pertinent to land ownership by Filipinos overseas: Particulars

Provision under BP 185

Provisions under RA 7042 as amended by RA 8179

Size/Area of Coverage

• maximum of 1,000 sq. meters for urban land • maximum of one (1) hectare for rural land

• maximum of 5,000 sq. meters for urban land • maximum of three (3) hectares for rural land

Land Acquisition for Both Spouses

• either of the spouses may avail of the privilege

• either of the spouses may avail of the privilege

• in case both spouses wish to acquire lands for this purpose, the total area acquired should not exceed the maximum allowed

• in case both spouses wish to acquire lands for this purpose, the total area acquired should not exceed the maximum allowed

Additional Land Acquisition

In case he/she already owns urban or rural lands for residential purposes, he/she may acquire additional urban or rural lands, which when added to those he/she presently owns shall not exceed the authorized maximum area.

In case he/she already owns urban or rural lands for business purposes, he/she may acquire additional urban or rural lands, which when added to those he/she presently owns shall not exceed the authorized maximum area.

Limits to Acquisition of Land

A person may acquire not more than two (2) lots which should be situated in different municipalities or cities anywhere in the Philippines, provided that the total area of these lots do not exceed 1,000 sq. meters for urban land or one (1) hectare for rural land for use as residence.

A person may acquire not more than two (2) lots which should be situated in different municipalities or cities anywhere in the Philippines, provided that the total area of these lots do not exceed 5,000 sq. meters for urban land or three (3) hectares for rural land for business purposes.

An individual who has already acquired urban land shall be disqualified from acquiring rural land and vice versa.

Under Section 4 of Rule XII of the Implementing Rules and Regulations of RA 7042 as amended by RA 8179, a transferee who has already acquired urban land shall be disqualified from acquiring rural land and vice versa. However, if the transferee has disposed of his/her urban land, he/she may still acquire rural land and vice versa, provided that this will be used for business. A transferee of residential land acquired under Batas Pambansa Blg. 185 may still avail of the privilege granted under this law.

Use of Land

Special Requirements

The acquired land should not be used for any purpose other than for residence.

Section 5 of Rule XII specifically states that “the land should be primarily, directly, and actually used in the performance or conduct of the owner’s business or commercial activities in the broad areas of agriculture, industry and services including the lease of land, but excluding the buying and selling thereof”.

In addition to the requirements provided for in other laws for the registration of titles to lands, the transferee should submit to the Register of Deeds of the province or city where the property is located a sworn statement stating the following:

In addition to the usual registration requirements pertinent to the conveyance of real estate, the transfer contemplated shall not be recorded unless the transferee submits to the Registry of Deeds of the province or city where the land is situated, the following:

• date and place of birth • names and addresses of his/her parents, spouse, and children, if any • area, location, and mode of

• certification of business registration issued by the Bureau of Trade Regulation and Consumer Protection of

Violations and Penalties

Violations through: • misrepresentation in the sworn statement • acquisition of land through fraudulent means • failure to reside permanently in the land acquired within two (2) years from its acquisition, except when such failure is caused by force majeure shall be penalized by the following: •

liability to prosecution under the applicable provisions of the Revised Penal Code and subject to deportation in appropriate cases

- forfeiture of such lands and their improvements to the National Government through escheat proceedings by the representative of the Solicitor General 4. permanent disqualification from availment of the privilege under this Act

Requirements for Land Registration or Original Certificate of Title (Judicial Titling) The application for land registration should be filed in triplicate with the Clerk of the Regional Trial Court of the province/city where the property is located. The following documents should be attached to the application: 1. Original plan on tracing cloth duly approved by the Director of Lands or Regional Land Director, or in lieu thereof, a true copy of the same on a tracing cloth properly attested and certified by said Office or the official authorized to make such certification, together with two (2) print copies thereof 2. Three (3) copies of technical description 3. Three (3) copies of surveyor’s certificate 4. Certificate of the assessed value of the property issued by the provincial treasurer, in quadruplicate

Requirements for Land Transfer or Transfer Certificate of Title The following documents are required for the filing of land transfer: 1. 2. 3. 4.

Copies of the Deed of Absolute Sale Latest real estate tax payments Latest tax declaration of the property Certificate from the Bureau of Internal Revenue that the capital gains tax and documentary stamps have been paid 5. Transfer tax 6. Receipt of payment of the transfer and registration fees For more information on land ownership by Filipinos overseas, please contact: Land Registration Authority, Law Division LRA Building, East Avenue cor. NIA Road Diliman, Quezon City Tel. Nos.: (632) 920-1026/36 Telefax No.: (632) 921-1368

23. CONVERSION OF LAND TO COMMERCIAL AND INDUSTRIAL USE Criteria for conversion d. Conversion may be allowed if the land is not among those considered nonnegotiable for conversion (e.g. lands granted to tenants through the Comprehensive Agrarian Reform Program). e. When the land ceases to be economically feasible and sound for agricultural purposes or the locality has become urbanized and the land will have greater economic value for residential, commercial, industrial, or other non-agricultural purposes. f. Conversion of lands within Strategic Agriculture and Fisheries Development Zone (SAFDZ) shall consider the following: •

The conversion of land use is consistent with the natural expansion of the municipality or locality, as contained in the approved physical framework and land use plan.

•

The area to be converted is not the only remaining food production area of the community.

•

The land use conversion shall not hamper the availability of irrigation to nearby farmlands.

•

The areas with low productivity will be accorded priority for land use conversion.

•

Sufficient disturbance compensation shall be given to farmers whose livelihood are negatively affected as provided for by existing laws and regulations.

6. When the agricultural land which is the subject of the application for conversion has been acquired under RA 6657, its conversion shall be allowed only if the applicant is the agrarian reform beneficiary thereof, and after he has fully paid his obligation under Section 65 of RA 6657. Documentary requirements 7. The applicant shall submit six copies of the following documents in six separate bound folders (one original set and five photocopy sets) with table of contents and page numbers of all documents including photographs, sequentially numbered, except for maps and development plans which shall likewise be in sextuplicate but shall be submitted in six separate envelopes. 8. Of the six folders, two will be transmitted to the Municipal Agrarian Reform Officer (MARO), containing only the filled-out application form and documents (TCT, True copy of the Certificate of Title, directional map) 9. The remaining four folders shall contain all the documents enumerated and are applicable. e. Official receipt showing proof of payment of filing fee and inspection cost f.

Official receipt showing proof of posting of bond

•

Bond to Guarantee Against Premature Conversion (section 24 of the 2002 Comprehensive Rules on Land Use Conversion)

4. Applicant is required to post a cash bond equivalent to two point five percent of the zonal value of the land in form of cash or manager's check posted in favor of the DAR 5. In lieu of a cash bond, the applicant may post a surety bond, issued by the GSIS, equivalent to at least fifteen percent of the total zonal value of the land 6. DAR shall forfeit the bond in favor of the Agrarian Reform Fund when the applicant carries out actual conversion activity on the land prior to the application's approval 7. After compliance with the terms and conditions of the bond, the applicant may opt to refund or convert the bond into a performance bond after issuance of the conversion order 8. The following projects shall be exempt from posting of bond: • • •

Socialized housing projects certified by the Housing and Land Use Regulatory Board (HLURB) Resettlement projects for families displaced by development of government projects certified by the National Housing Authority Community Mortgage Program (CMP) projects certified by the National Home Mortgage Finance Corporation (NHMFC)

g. Duly accomplished notarized/authorized application for conversion h. True copy of the Original Certificate of Title (OCT) or Transfer Certificate of Title (TCT) certified by the Registry of Deeds not earlier than 30 days prior to application filing date. In case of untitled land, the following shall be required in place of the title:

i.

•

Certification from the DENR Community Environment and Natural Resources Officer (CENRO) that the landholding has been classified as alienable and disposable; and

•

Certification from the DENR CENRO (for administrative confirmation of imperfect title) or the Clerk of Court (for judicial confirmation of imperfect title) that the titling process has commenced and there are no adverse claimants

True copy of the Certificate of Title

j. True copy of the current Tax Declaration k. Project feasibility study l.

Joint venture agreement or any other business arrangement on the use of the land between the landowner and the developer (if the developer is other than the landowner) or between the EP/CLOA holders and the developer (if the land was awarded under the agrarian reform program

m. Narrative description of the development plan n. Proof of financial and organizational capability of the developer, including the following information: 4. statement of project cost and availability of potential funding sources for the development of proposed project 5. profile of the developer 6. most recent financial statement, not later than a year, authenticated by a certified public accountant 7. if the developer is a corporation, a copy of its Certificate of Registration and recent General Information Sheet for the immediately preceding year, certified by the Securities and Exchange Commission (SEC) o. Socio-Economic Benefit-Cost Study of the proposed project p. Photographs size 5R (5 inches by 7 inches), colored, and taken on the landholding under sunlight, attached to a paper background with the signature of the photographer certifying the authenticity of the pictures. On each background paper shall be written a short description of the picture. The pictures shall consists of: • • • • •

At least 4 photographs taken from the center of the landholding: one facing north, one facing east, one facing south and one facing west At least one photograph per corner of the landholding's borders At least 2 photographs each for all man-made structures on the land taken from opposite angles At least 2 photographs each of the front view of the billboard/s. The applicant shall set aside the second copy of said photograph/s for submission to the MARO Sufficient number of photographs of the most conspicuous landmarks from the nearest barangay center and leading to and from the entry and exit routes at the subject landholding to assist the ocular inspection team

q. Affidavit/Undertaking of the applicant stating the following: 5. The number and names of the farmers, agricultural lessees, share tenants, farm workers, actual tillers, and or occupants in the land holding. In the absence of such persons, submit a statement attesting to such fact. 6. That the applicant has paid or shall pay disturbance compensation to these persons 7. That the applicant has erected the required number of billboards 8. That the applicant shall not undertake and has not undertaken premature development prior to issuance of a Conversion Order 9. That he authorizes the DAR forfeiture of his bond if the need arises 10. That the subject land is not in any form of dispute in courts or outside of it r.

Certification of the MARO

s. Certification from the Housing and Land Use Regulatory Board (HLURB) Regional Officer on the actual zoning or classification of the land t.

Certification from Department of Agriculture (DA)

u. Certification from the Department of Environment and Natural Resources (DENR) v. Environmental Compliance Certificate w. Vicinity map and lot plan prepared by a duly-licensed geodetic engineer x. Directional sketch map y. Map of the development plan z. Topographic map The applicant shall submit the requirements at the time of application filing. However, for applications involving housing projects, deferment of submission is allowed and follows an alternative timetable Where to File Application and Approving Authority Type of Lands For applications involving lands with an area of less than or equal to 5 hectares or a fraction above 5 hectares For applications involving lands with an area greater than 5 hectares

For zoning certificates Filing Fee and Inspection Cost •

Filing fee:

Government Agency Regional Center for Land Use Policy Planning and Implementation (RCLUPPI) located at the DAR Regional Office addressed to the Regional Director Center for Land Use Policy Planning and Implementation (CLUPPI) located at the DAR Central Office, Elliptical Road, Diliman, Quezon City. Approving authority is the Department Secretary or a designated Undersecretary Housing and Land Use Regulatory Board Kalayaan Avenue cor. Elliptical Road, Diliman, Quezon City

• •

For lands with an area of less than or equal to 5 hectares: P1,000.00 For lands with an area larger than 5 hectares: P2,000.00

•

Inspection cost:

•

For lands with an area of less than or equal to 5 hectares:

6. P10,000.00 - if the subject landholding is in the same island as that of the Office of the Regional Director 7. P15,000.00 - if the subject landholding is not within the same island as that of the Office of the Regional Director •

For lands with an area larger than 5 hectares:

•

P10,000.00 - if the subject landholding is within the main island of Luzon, except the Bicol peninsula

•

P15,000.00 - if the subject landholding is within Regions I to IV but is not located in the main island of Luzon

•

P15,000.00 - if the subject landholding is in Bicol Peninsula or Visayas group of islands

•

P20,000.00 - if the subject landholding is in the Mindanao group of islands

•

Zoning fee: P500.00 (to be filed with the HLURB)

For more information on the conversion of lands, please contact: Center for Land Use, Policy, Planning and Implementation Secretariat Department of Agrarian Reform Elliptical Road, Quezon City Tel. Nos.: (0632) 928-7031-35 local 320; 926-1652, 928-7031-35 Fax No.: (0632) 926-1652 Website: www.dar.gov.ph Housing and Land Use Regulatory Board HLURB Building Kalayaan Avenue cor. Elliptical Road Diliman, Quezon City Tel. Nos.: (0632) 920-3500; 924-6658; 926-1061, 924-3386 Fax No.: (0632) 920-3500 Website: www.hlurb.gov.ph

24. FINANCING SMALL AND MEDIUM ENTERPRISES

Program Description In support of the National Small and Medium Enterprises (SMEs) Development Plan, government financial institutions (GFIs) collaborated to design a uniform lending program, tailored fit to meet the funding needs of SMEs. Under the unified lending program, the participating GFIs shall apply simplified and standardized lending procedures and guidelines, e.g., loan purpose, fee structures, interest rates, application forms, financial ratios, and other lending parameters, for evaluating the loan applications of SMEs. To adopt to the financing needs of SMEs, two types of loans are available under the program: short term loans payable in one year, and long term loans that are payable up to five years. The unified lending scheme operates in addition to the existing financial services of the participating GFIs. Objectives 5. To simplify and standardize the lending procedures of GFIs, thereby enhancing the SMEs' access to needed funds. 6. To shorten the list of documentary requirements to further facilitate the lending process. 7. To create a wider, borderless financing system that will afford the SMEs greater access to short- and long-term funds 8. To lower the effective cost of borrowing by SMEs and liberalize the requirements. Retail Lending for SMEs Who qualifies to borrow under SULONG? • •

Enterprises in all industries except trading of imported goods, liquor, cigarettes and extractive industries. Enterprises that are at least 60% Filipino owned, whose assets are valued at not more than P100 M, excluding the value of the land, or subject to ownership rules as defined under existing Philippine laws for specific industries.

What type of loans may be funded? • •

For short-term loans, the entrepreneur may tap the program either for export financing (export packing credit) or a credit line for temporary working capital. For long term loans, SMEs may apply for loans for permanent working capital, or to purchase equipment, a lot or to construct a building/warehouse.

What is the maximum financing? • •

For short-term loans, the program can fund up to 70% of the value of the LC/PO (export packing), or 70% of working capital requirement (temporary working capital); maximum of P5 M. For long-term loans, 80% of the incremental project cost, maximum of P5 M.

What is the repayment term?

• •

For short-term loans, a maximum of one year. For long-term loan, a maximum of five years, inclusive of a maximum one year grace period on principal monthly amortization.

Are collaterals required? If so, what assets are acceptable? The program will not decline a loan only on the basis of inadequate collateral. However, the borrower must be willing to mortgage any available business and personal collateral, including assets to be acquired from the loan, to secure the borrowing. The following are acceptable collaterals: postdated checks, registered/unregistered REM/ CHM, or the assignment of life insurance. In addition, for franchisees, the following may be considered: corporate guarantee and assignment of lease rights. If the loan purpose is for export packing credit, a borrower may assign his LC/PO or sales invoice. What financial ratios/hurdles must a borrower meet? The debt-equity ratio must at most be 80:20 after the loan. For franchisees, the required ratio is 70:30. In addition, the borrower must show positive income for the preceding year. Should the SME borrower's financials show negative income in the past year, the GFI may consider their average income for the last two or three years. What is the interest rate for loans under this program? The participating GFIs will charge the same rate for the program based on a regular review. In its program launch, the interest rate for loan releases until June 30, 2003 shall be: 9% for short-term loans; 11.25% for medium-term loans of up to 3-years and 12.75% for loans over 3-years to five years. Aside from the interest rate, what fees must be paid? A one-time application and evaluation fee of P2,000 for every P1 M, a frontend fee of 1% of approved loan, and a commitment fee of 0.125% of the unavailed balance for long term loans. Who are the participating GFIs? Interested entrepreneurs may approach the head office or branches of the following GFIs: 3. Development Bank of the Philippines 4. Land Bank of the Philippines 5. National Livelihood Support Fund 6. Small Business Guarantee and Finance Corp. 7. Philippine Export-Import Credit Agency 8. Quedan & Rural Credit Guarantee Corporation Matrix of Lending Features

SHORT-TERM LOANS

LONG-TERM LOANS

Loan Purpose

Target Industries

Export Financing (Export Packing Credit) Credit Line (Temporary Working Capital), preferably transactional)

a) Purchase of Equipment b) Building Construction Term Loans c) Permanent Working Capital

All industries except trading of imported goods, of liquor and cigarettes, and extractive industries. Each GFI shall have its own priority list as well as exclusion list which shall be prepared to ensure complementation of programs of the GFIs.

All industries except trading of imported goods, of liquor and cigarettes, and extractive industries. Each GFI shall have its own priority list as well as exclusion list which shall be prepared to ensure complementation of programs of the GFI's.

At least 60% Filipino-owned whose assets are not more than P100 million, excluding Eligible the value of the land, or Enterprise subject to ownership rules as defined under existing s Philippine laws for specific industries. Only SMEs with assets of at least P500,000 are qualified.

At least 60% Filipino-owned whose assets are not more than P100 million, excluding the value of the land, or subject to ownership rules as defined under existing Philippine laws for specific industries. Only SMEs with assets of at least P500,000 are qualified.

Subject to GFI's minimum loan requirement, which shall in no case exceed P1 million. The loan must be within the SME's absorptive capacity as evaluated by the GFI.

Subject to GFI's minimum loan requirement, which shall in no case exceed P1 million. The loan must be within the SME's absorptive capacity as evaluated by the GFI.

70% of the value of LC/PO; maximum of P5.0 Million. Subject to a GFI's minimum loan requirement which shall in no case exceed P1M. The loan must be within the SME's absorptive capacity as evaluated by the GFI.

80% of the incremental project cost; maximum of P5.0 Million. Subject to a GFI's minimum loan requirement which shall in no case be more than P1M. The loan must be within the SME's absorptive capacity as evaluated by the GFI.

Minimum Financing

Maximum Financing

A risk premium of up to 1% p.a. may be added for loans Nonnot fully collateralized and 2% collateraliz for loans with less than 50% collateral. The risk premium is ed added based on the collateral Premium position of the borrower at the time of loan application approval.

A risk premium of 1% may be added for loans not fully collateralized and 2% for loans with less than 50% collateral. The risk premium is added based on the collateral position of the borrower at the time of loan application approval.

Repayment Maximum of one year Term

Maximum of 5 years, inclusive of maximum 1 year grace period on principal monthly amortization

Registered/Unregistered Real Estate Mortgage/Chattel Mortgage Assignment of LC or PO (if applicable) Collateral** Guarantee cover Corporate Guarantee (if franchisee) Assignment of lease rights (if franchisee) Other acceptable collaterals to GFIs P2,000 for every 1 Million Plus front-end fee of 1/2 of Evaluation 1% of approved loan. A and service fee of 1% p.a. may be Service imposed if the GFI Fees accommodates projects outside of its regular areas of geographical operation. Borrower: DebtEquity Ratio

At most 80:20 after the loan

Positive income for last year (If past year's income is negative, the average income Profitability of past 2 or 3 years should be positive). It is implied that projects are operational for at least a year.

Registered/Unregistered Real Estate Mortgage/Chattel Mortgage Corporate Guarantee (if franchisee) Assignment Of lease rights (if franchisee) Other acceptable collaterals to GFIs

P2,000 for every 1 Million Plus front-end fee of 1/2 of 1% of approved loan. A service fee of up to 1% p.a. may be imposed if the GFI accommodates projects outside of its regular areas of geographical operation.

At most 80:20 after the loan At most 70:30 (if franchisee)

Positive income for last year. (If past year's income is negative, the average income of past 2 or 3 years should be positive). It is implied that projects are operational for at least a year

Other Ratios

Based on Industry standards Based on industry standards

**Collateral Policy **The Program will not decline a loan only on the basis of inadequate collateral. However, the borrower must be willing to mortgage any available business and non-business related collateral, including assets to be acquired from the loan to secure the borrowing. The program shall adopt a differentiated minimum/partial collateral policy as dictated by loan purpose and loan amounts. * Interest rates may be reviewed quarterly.

For more information on financing of small and medium enterprises, please contact: Small Business Guarantee and Finance Corporation Department of Trade and Industry Sen. Gil Puyat Avenue, Makati City Tel. Nos.: (0632) 830-0285 / 813-5720 Fax. No.: (0632) 830-0285 Website: www.dti.gov.ph TODO UNLAD OF THE LAND BANK OF THE PHILIPPINES Total Development Options – Unified LandBank Approach to Development (TODO UNLAD) is LandBank’s flagship program for countryside development. Through its various lending programs and support services, TODO UNLAD links cooperatives, local government units, private corporations / small and medium enterprises and non-government organizations in specific areas around an integrated development project. TODO UNLAD moves away fro piecemeal efforts in developing an area. Instead, it extends loans and other support services to all key players in a pre-identified area to ensure that all efforts lead to an integrated area development. TODO UNLAD projects aim to achieve countryside development by linking producers to markets and processors, strengthening cooperatives and local government units. Specifically, it hopes to increase agricultural productivity, improve basic infrastructure, and eventually pave the way towards rural industrialization and to transfer partially or wholly, the ownership and management of productive assets to cooperatives. Its projects are composed of a combination of two or more of any of the following loans and services: • Local government lending • Commercial lending • Cooperative lending • Production or post-harvest facilities financing • Market matching and production, marketing and management agreements • Cooperative strengthening • LGU advisory services • Import / export financing • Integrated loan packages for Agrarian Reform Communities Requirements for application •

For Private Corporation or Company 3. Gross revenue of at least P1 million (this can be waived on a case to case basis)

4. 5. 6. 7. •

Profitability track record for 2 consecutive years No labor strike for 2 years No adverse LBP credit findings Potential collateral business

For Cooperatives 9. Earning asset level rating at least C per LBP cooperative accreditation criteria 10.Maturity level rating at least C per LBP cooperative accreditation criteria 11.Regional Gawad PITAK Winner 12.No outstanding past due (this can be waived if the proposed project will strengthen or rehabilitate the coop partners)

For more information on TODO UNLAD, please coordinate with: Program Management Department TODO UNLAD and Access Programs Unit Land Bank of the Philippines 28th Floor, Land Bank Plaza 1598 M.H. del Pilar Street corner Quintos Street Malate, Manila Tel. Nos.: (0632) 522-0000/ 551-2200 (local 2307 or 2376) SME DEVELOPMENT APPROACH OF THE DEVELOPMENT BANK OF THE PHILIPPINES The Development Bank of the Philippines (DBP) recognizes small and medium enterprises as a potent force in spurring the growth of the economy and finances many SME projects. The SME Development Approach is a holistic program of providing credit, and non-credit assistance in the form of technical support in the areas of marketing, research and development, business diagnosis, and human resource development. The Bank has established strategic alliances with participating financial institutions and has adopted the industry cluster approach. Eligible Borrowers Single proprietorships, registered partnerships, cooperatives, associations, private corporations, private financial institutions, local government units, nongovernment organizations. Acceptable Collaterals Generally, acceptable collaterals for loans are registered first mortgage on titled real estate properties, buildings, machinery and equipment and other mortgageable assets which are already owned by the applicant or to be acquired partly or fully with proceeds of the loan applied for. Hold-out on savings and time deposits as well as government security placements are also considered as acceptable collaterals. In some cases, the Bank also accepts the guarantees of the following as part of collaterals: Quedan and Rural Credit Guarantee Corporation (QUENDANCOR), Small Business Guarantee and Finance Corporation (SBGFC), Philippine ExportImport Credit Agency (PHILEXIM), Home Insurance Guaranty Corporation (HIGC). Interest Rate and Other Charges

The rate of interest and other charges for loans and other credit accommodations are generally market-based. Debt-Equity Requirements The debt-equity requirements of the Bank would depend on the type of project to be financed taken in conjunction with the Bank's assessment of the risk factors for a particular borrower. Types of Projects Financed §

§

§

§ §

§

Industrial 17.Large manufacturing and non-manufacturing industries 18.Small and medium manufacturing and non-manufacturing industries 19.Industrial Estate Projects Public Utilities 21.Land, air and water transportation 22.Telecommunications 23.Power generation and distribution 24.Water supply and distribution Community Development 26.Housing 27.Hospitals 28.Schools 29.Infrastructure 30.Eco-Tourism Agro-industrial 32.Post harvest-facility 33.Agri-business Focused Lending Programs 35.Environmental 36.Pollution control and abatement 37.Waste minimization and recycling 38.Efficient use and/or management of natural resources 39.Occupational health & safety 40.Establishment of Environmental Management System (EMS) certification under ISO 14000 41.Micro-financing 42.Lending program for franchises 43.Program towards obtaining ISO 9000 certification 44.New and renewable energy (NRE) projects 45.Technology development and commercialization 46.LGU financing program 47.Sustainable logistics development program 48.Road/Roro Ferry Network 49.Grains Bulk Other Programs 51.Factoring 52.Loans Against Hold Out on Deposit

and

For more information on financing of small and medium enterprises by DBP, please contact: Development Bank of the Philippines Makati Avenue cor. Sen. Gil Puyat Avenue Makati City

Tel. Nos.: (0632) 818-9511 to 20; 818-9611 to 20 Email Add.: [email protected] Website: www.devbankphil.com.ph

25. SALARIES AND WAGES Salaries and wages vary depending on several factors like nature of work, location of work and time of work. Salaries in the urban areas are higher than those working in the rural areas. There are, however, laws implemented in relation to employment to give equitable compensation and benefits to employees. Examples of these are the minimum wage, health and insurance benefits, and holiday pays. Per Wage Order No. NCR-09 (Effective November 05, 2001 & February 01, 2002) Minimum Wage Industry / Sector

Basic Wage

Wage Ceiling

ECOLA (Nov. 05, 2001

ECOLA (Feb. 01, 2004

P250.00

P290.00

P15.00

P15.00

Non-Agriculture Establishment employing 10 or more workers

Agriculture Plantation Non-Plantation Private Hospitals

P213.00 P213.00

--

P15.00 P15.00

P15.00 P15.00

With bed capacity of 100 or less Retail / Service

P213.00

--

P15.00

P15.00

Regularly employing 15 workers or less Manufacturing

P213.00

--

P15.00

P15.00

Regularly employing less than 10 workers

P213.00

--

P15.00

P15.00

*Include COLAS a/ Covers the cities of Caloocan, Las Piñas, Makati, Mandaluyong, Manila, Marikina, Muntinlupa, Pasay, Pasig and Quezon and the Municipalities of Malabon, Navotas, Paranaque, Pateros, San Juan, Taguig & Valenzuela. b/ Grants Emergency Cost of Living Allowance (ECOLA) of THIRTY PESOS in the Non-Agriculture sector, receiving daily wage rates of P250 payable in two tranches: P15 effective 05 November 2001 and P15 effective 01 February 2002. > Also receive the P30.00 ECOLA are workers receiving a daily wage rate of P213.00 in the Agricultural Sector (plantation and non-plantation), Private Hospitals with bed capacity of one hundred (100) or less, Retail/Service Establishments regularly employing fifteen (15) workers or less, and Manufacturing establishments regularly employing less than ten (10) workers and all other establishments previously covered under (WO-NCR-08 regularly employing ten (10) workers or less). > The wage ceiling of P290.00 applies only to workers in the Non-agriculture Sector. > Issued on 19 October 2001 and published at the Philippine Star News on 21 October 2001. Effective July 10, 2004, the amount of P20.00 ECOLA shall be added to the daily minimum wage of employees in the private sector. Other conditions of employment and benefits given to employees 8. Normal working hours not exceeding 8 hours a day 9. Payment of overtime work (at least 25% of the employee’s regular wage) 10.Weekly rest period of not less 24 consecutive hours after every 6 consecutive normal work days 11.Provision of holiday pay

12.Service incentive leave of at least 5 days with pay for every year of service 13.Worker preference in case of bankruptcy 14.Paternity and maternity leave benefits 15.Minimum age for employment 16.Employees compensation and insurance fund (SSS and GSIS) 17.Provision of medical or health insurance

26. INSURANCE AND PENSION PLANS Insurance and pension plans offer alternative source of finances for overseas Filipinos particularly upon reaching retirement age. Investment in insurance and pension plans assure them and their families of readily available finances in cases of death, health problems and emergency. Companies offering insurance and pension plans offer a variety of benefits accompanying the plan, such as transferability of benefits to heirs, minimum amount for premiums, and assured continuity of benefits and guaranteed full payment even in cases of untimely death or disability during the paying period. The following are examples of insurance and pension plans offered by Philippine and international companies denominated in either or both peso and dollar accounts.

Type of Insurance

Insuranc e/Plan Coverag e

Prudential Life Fund Secure offers the Planholder flexibility in payment of required installments. Non-payment of succeeding installments still provide a Guaranteed Cash Benefit (GCB) corresponding to the number of installments made on the 15th year. Your plan is therefore protected from lapsation and cancellation.

Pru-Life U.K.

Philam Plans

Pru Life UK Savings products are good for accumulating funds for purposes such as education, retirement, business. These are regular savings programs that offer both savings and protection for a specific length of time you choose. At the end of the term, you will receive a lump sum payment to use for the purpose you have in mind. And, as a long-term savings plan, you may also take loans against your policy.

The Future Fund Plus of Philam Life provides guaranteed interest earnings as against other financial instruments. It maximizes returns by reinvesting the maturity benefit in Philam Plans’ Fund Management Security which is a facility that allows maturity benefit to earn interest per annum, tax free.

Sun Life Financial Philippines Sun Life Financial Philippines provides holders with the ease, flexibility and convenience to choose the scheme that best suits your needs and matches your cash requirements. It offers two classes of pension plan: Sun Pension and Sun Pension Plus.

PET Dollar Pension Plan A first in the pre-need industry, PET Dollar Pension Plan is ideal for overseas Filipino workers who are looking for a facility to invest their hard-earned dollars in; and for other Filipinos looking for a stable investment. It is backed up by PET Plans’ P2.5 billion in Trust Funds, over 100 business centers nationwide and more than 12,000 active business partners, among others.

Premium

P5,700 / year (payable quarterly, semi-annually or annually)

PruSave – P2,000 / month

P25 /daily

P10,000 per unit

$276.00

5, 7, 10 years

Payment terms is 5, 7, 10 or 20 years

PET $ Gold – with a cash allowance of up to 20% of the maturity value at the end of the 10th – 14th year and with full maturity on the 15th year

PruGold – P1,501 / month PruLife Plus – P3,000 / month PruCash – P2,066 / month

Maturity

15 years

PruMaxi Save – P4,380 / month 15, 20, 25 years

Maturity period is 10 – 30 years

PET $10 – 10th year maturity plan PET $15 – 15th year or on maturity period

Other benefits

Full Payment Guarantee

PruLink Investor* is a singleIn case of pay variable death during life product paying period, denominated • remaining either in • balance of the Philippine plan is fully Peso or US paid. Dollars, which provides a • Waiver of guaranteed Installment death benefit Due to of 125% of Disability the single premium or • In case of the value of disablity for 6 units, • consecutive whichever is months during higher. The paying period, insured can subsequent avail of the • installments living benefits, are waived. which consist of partial or • Accidental full withdrawal Death and values, which Dismemberare sourced ment from the policy’s share In case of in the unit accidental funds. death or Additional dismemberpremiums ment during called top-ups paying period, may be added the to the policy. Planholder shall receive PruLife a maximum of Assurance total Account is a installments regular paid. premium variable life Family product Assistance denominated Fund in Philippine Peso which In case of provides for death before varying the maturity benefits. Sum of the plan, a Assured is cash benefit quoted as equivalent to multiples of the total the regular installments premium. The paid shall be insured can

Complete insurance benefits through: Credit life Waiver of premium upon disability Accidental death and dismemberment benefits Non-medical insurance Flexible pension benefit payout schemes Incontestability Respon-sive service

Credit Group Life ensures that all unpaid installments will be paid and the beneficiaries will still receive the pension benefit upon maturity. Credit Groups Disability ensures that all unpaid installment will be paid in the event that the plan holder becomes totally and permanently disabled during the paying period. Dividends – on top of the pension fund, the plan holder will get dividends in the form of cash or apply to installments.

Optional Support Fund – The planholder’s family or his legitimate beneficiaries get a portion of the maturity value, in advance, in case of the planholder’s untimely demise Pension Loan Assistance Transferability Dividend earnings

Contact Information

Prudential Plans, Inc. 118 Gamboa St. Legaspi Village Makati City

Philam Plans, Inc. TN: (0632) 823-1222 www.bcbuddy .com

TN: (0632) 864-8000

Sun Life Financial Plans, Inc.

PET Plans Centre 114 Aguirre St., Legaspi Village, Makati City

TN: (0632) 887-1071 FN: (0632) 887-2008 / 843-2907

TN: (0632) 892-5546

sunlink@sunli fe.com www.sunlifeph.com

www.petplans .com

The table shows how the PruLink Investor Account works. The values are based on projected performance of the fund where the policy is linked If you save

You will receive at age 60

Philippine Peso

5%

10%

15%

P50,000 single premium US Dollar

P127,186

P513,502

P1,948,484

3%

6%

9%

US 5,000 single premium

USD 7,220

USD 17,085

USD 39,446

The Social Security System Flexi-Fund The SSS Flexi-Fund is a voluntary provided fund specifically for overseas Filipinos that provides additional benefits to the members on top of their regular SSS membership. It is a pension plan and savings account rolled into one that enables the contributions to earn interest. It also offers retirement, disability and death benefits, among others. The Flexi-Fund is open to overseas Filipinos who are: 5. recruited in the Philippines by foreign-based employers for work overseas; 6. having a source of income in a foreign country; or 7. residing permanently in a foreign country. One must first be an SSS member before becoming a member of the FlexiFund. First time members should ensure that their monthly contribution to the regular social security program is at the maximum bracket. As a Flexi-Fund member, one may withdraw his or her contributions with interest anytime. Members who reach the age of 60 are entitled to retirement benefits in the form of a monthly pension or a lump sum payment. This beneficiaries

of a pensioner who passed away shall receive a lump sump benefit equivalent to the cash value of the remaining pension. The contributions remitted to the SSS FlexiFund are invested in government Treasury Bills that yield high interest and are riskfree. The interests earned by the deposits are based on the average 91-day Treasury Bill rate of the previous rate. To enroll in the Flexi-Fund, simply register at SSS foreign representative offices located at various entities or download SSS Form OW-1 from the SSS website. For more information, please contact: International Affairs and Branch Expansion Office 3/F SSS Building, East Avenue Quezon City Telefax no.: (632) 435-9814 Website: www.sss.gov.ph E-mail address: [email protected]

27. COMMISSION ON FILIPINOS OVERSEAS The Commission on Filipinos Overseas is a Philippine Government agency under the Office of the President tasked to promote the interests of Filipino emigrants and permanent residents abroad, as well as strengthen ties with Filipino communities overseas. It was established in 1980 through Batas Pambansa Blg. 79. The Commission on Filipinos Overseas registers and provides orientation for departing emigrants, and conducts Filipino heritage programs for younger generations of overseas Filipinos. It promotes transfer of technology, material contributions and financial grants from overseas Filipino communities for

development activities in over seventy provinces in the Philippines. The Commission also provides liaison to Filipinos overseas with appropriate government and private agencies in the transaction of business and similar ventures in the Philippines. Of the total number of overseas Filipinos, more than 2.8 million or more than one third are emigrants or permanent residents overseas, as of December 2003. They live mainly in Australia, Austria, Canada, Guam, Japan, Germany, Spain, United States of America, the United Kingdom and New Zealand. Filipino emigrants and permanent residents overseas, who would mostly be naturalized citizens of other countries, can benefit from R.A. 9225, the Citizenship Retention and Reacquisition Act of 2003 or the dual citizenship law. The Commission on Filipinos Overseas is also prepared to assist those interested in looking at prospects and opportunities open to overseas Filipinos who reacquire their Filipino citizenship.

COMMISSION ON FILIPINOS OVERSEAS Citigold Center, 1345 President Quirino Avenue corner South Expressway, Manila Tel. no. (632) 561-8321; Fax no. (632) 561-8332 Email: [email protected] Website: www.cfo.gov.ph

ACKNOWLEDGMENT The Commission on Filipinos Overseas would like to thank the following for their invaluable contribution in the preparation of the Investment and Business Guide for Overseas Filipinos:

Government Agencies Bangko Sentral ng Pilipinas Supervisory Reports and Studies Office Board of Investments (BOI) The Legal Department Bureau of Internal Revenue Construction Industry Authority of the Philippines Philippine Construction Accreditation Board Cooperative Development Authority Cooperative Research, Information and Training Division Department of Agrarian Reform Center for Land Use, Policy, Planning and Implementation Secretariat Department of Agriculture Agribusiness Investment and Enterprise Development Division

Department of Labor and Employment Department of Social Welfare and Development

Standards Regulation Unit Department of Tourism Department of Trade and Industry Board of Investments Board of Investments' One Stop Action Center (BOI-OSAC) Bureau of Small and Medium Enterprise Development Bureau of Trade Regulation and Consumer Protection Small Business Guarantee and Finance Corporation Department of Trade and Industry – National Capital Region Development Bank of the Philippines Housing and Land Use Regulatory Board Rules and Standard Development Office

Land Bank of the Philippines Program Management Department TODO UNLAD and Access Programs Unit Land Registration Authority Law Division PAG-IBIG Fund Overseas Program Petroleum Association of the Philippines Philippine Coconut Authority Philippine Exporters Confederation, Inc. (PHILEXPORT) Philippine National Bank Philippine Overseas Employment Administration Licensing and Regulation Division Quezon City Hall

Business Permits Division Social Security System Securities and Exchange Commission Technical Education and Skills Development Authority The Office of Formal TVET Philippine Economic Zones Authority Promotions and Public Relations Group Subic Bay Freeport Zone Promotions and Marketing Department Clark Special Economic Zone Marketing Department Mactan Export Processing Zone 2 Baguio City Economic Zone Bataan Economic Zone

Private Sector Asian Institute of Management Policy Center

Filinvest Alabang, Inc. Administration (FAI)

Documentation Department Petron Corporation Pilipinas Shell Petroleum Corporation Seaoil Philippines Franchising Divisions: Bench Candy Corner Franchising Corp. Fix Bench Goldilocks Bakeshop, Inc. Jollibee Mini-Stop Mister Donut Philippines Mr. Quickie Nacho King Parcel Select Reyes Haircutters Zagu Foods Corporation PET Plans Centre Philam Plans, Inc. Prudential Plans, Inc. Pru-Life U.K. Sun Life Financial Plans, Inc.

While care has been taken to ensure that the information contained in the Investment and Business Guide for Overseas Filipinos is correct at the time of publication, the public is advised to examine prospects closely before making business and investment decisions.