APPROVING THE IMPLEMENTING GUIDELINES ON THE DEVELOPMENT AND OPERATION OF ON-SHORE FACILITIES FOR FERRY SYSTEM AND OTHER ACTIVITIES IN THE LAGUNA DE BAY REGION

WHEREAS, in consideration of proposals to ply
ferry boats in the Laguna de Bay to transport passengers and goods to
lakeshore towns, the LLDA Board passed Resolution No. 67, Series of
1998, approving the Policy Framework Towards Operationalizing a Ferry
System in the Laguna de Bay Region;

WHEREAS, the LLDA Board further adopted Resolution
No. 74, Series of 1998, approving the Policy Guidelines on the Operation
of a Ferry System in the Laguna de Bay Region and Resolution No. 81,
Series of 1998, approving the Implementing Rules and Regulations
Governing the Operation of a Ferry System in the Laguna de Bay Region;

WHEREAS, Section 7 of Board Resolution No. 81,
Series of 1998, provides that certain on-shore structures,
facilities/equipment may be established, installed and/or made available
for use by the vessels for loading, unloading, refueling and other
activities subject to separate clearance/permit from the LLDA and such
other permit/clearance/license as required by other concerned government
agencies and local government units; and

WHEREAS , formulation of guidelines for the
development and operation of aforesaid on-shore structures is necessary
in support of the ferry system and other activities in the Laguna de Bay
Region;

NOW, THEREFORE, for and in consideration of above
premises, BE IT RESOLVED, as it is hereby RESOLVED, to approve the
following the Implementing Guidelines on the Development and Operation
of On-Shore Facilities for Ferry System and Other Activities in the
Laguna de Bay Region:

ARTICLE 1.       Title. — These guidelines shall
be known and cited as the “Implementing Guidelines on the Development
and Operation of On-Shore Facilities for Ferry System and Other
Activities in the Laguna de Bay Region.”

ARTICLE 2.       Statement of Policy. The
Authority hereby declares an open policy on the development and
operation of on-shore facilities within the Laguna de Bay Region. While
the Authority has the exclusive jurisdiction over the shoreland areas of
the said region and exercises primary responsibility to implement
integrated and coordinated planning development, operation and control
on facilities on the said shoreland areas, it encourages and allows
private sector, local government units and other authorized government
agencies to participate in the provision of on-shore facilities. When
public interest so requires, the project may be opened for joint-venture
agreement with both the LLDA and any of these participants as proponent
or through the build-operate-transfer scheme or any of its variants.

The implementation of these guidelines shall adhere to the following declared policies:

a)      The management and control of the use and/or occupancy
of the shoreland areas and operation of ferry system shall be within the
context of national socio-economic development plans and policies as
well as environmental concerns;

b)      All shoreland areas lying below elevation 12.50 meters
shall be maintained as buffer zones in consonance with the Authority’s
policies, plans and programs for the management of the water quality,
protection and conservation of the water resources of Laguna de Bay; and

c)      The development of on-shore facilities related to the
operation of a ferry system and other activities in the region shall be
pursued in consonance with the objectives of achieving the sustainable
development of the lake’s water resources.

ARTICLE 3.       Scope and Coverage . — These guidelines shall cover the following on-shore facilities:

a)         Passenger/ferry terminals including wharves and piers;
b)         Radio or telecommunication and other related facilities;
c)         Garbage/sewage disposal and other sanitary facilities;
d)         Warehouse and cold storage facilities;
e)         Mooring/berthing facilities; and
f)          Other ancillary on-shore facilities.

ARTICLE 4.       Definition of Terms . — For the
purpose of these guidelines, whenever any of the following words, terms,
phrases or abbreviations are used herein or in any amendment or
supplementary thereto which may issued hereafter, they shall have the
meaning ascribed in these guidelines:

a)      Authorized Government Agency — government entity which
by virtue of its charter is authorized to enter into joint venture
agreements;

b)      Berth — the part of the pier/wharf that is occupied by a vessel, or a place where a vessel may tie up;

c)      Build-Operate-and-Transfer (BOT) Scheme — the project
proponent carries out the financing, construction, operation and
maintenance of an on-shore facility. It operates the facility over a
fixed term during which it is allowed to charge facility users
appropriate tolls, fees, rentals and charges not exceeding those
specified in its contract. Such fees and charges should enable the
proponent to recover its investment and to cover operating and
maintenance expenses in the project. The facility is transferred to the
government agency or LGU at the end of the fixed term which shall not
exceed 50 years.

The BOT scheme includes a supply and operate situation with
which the supplier of equipment and machinery also operates the
facility. In the process, it transfers technology and provides training
to Filipino nationals.

d)      BOT Variant — any of the following contractual arrangements by which on-shore facilities may be undertaken:

•        Build-and-Transfer (BT) — the
project proponent undertakes the financing and construction of on-shore
facility. After its completion, the proponent turns it over to the
implementing government agency/local government unit upon payment to the
proponent, using an agreed schedule, of its total investment expended
on the project plus a reasonable rate of return;

•        Build-and-Lease-Transfer (BLT) — the
project proponent is authorized to finance and construct on-shore
facility. Upon its completion, the proponent turns it over to the
agency/LGU concerned on a lease arrangement for a fixed period.
Ownership of the facility is automatically transferred to the agency/LGU
after such period;

•        Build-Own-and-Operate (BOO) — the
proponent is authorized to finance, construct, own, operate and maintain
on-shore facility, and in return, collect tolls, fees, rentals or other
charges from facility users. The proponent which owns the assets of a
facility may assign its operation and maintenance to a facility
operator;

•        Build-Transfer-and-Operate (BTO) —
the concerned agency/LGU contracts out the building of an on-shore
facility to a private entity on a turnkey basis. Once the facility is
commissioned satisfactorily, the title is transferred to the
implementing agency under an agreement;

•        Contract-Add-and-Operate (CAO) — the
proponent adds to an existing on-shore facility which is rented from
the government. Thereafter, the proponent operates the expanded project
over an agreed franchise period. There may or may not be a transfer
arrangement on the added facility provided by the proponent;

•        Develop-Operate-and-Transfer (DOT) —
the right to develop an adjoining property is given to the proponent of
a new on-shore facility/project to allow enjoyment of benefits created
by investing in the project, such as higher property or rent values;

•        Rehabilitate-Operate-and-Transfer (ROT)
— the proponent refurbishes, operates and maintains an existing
on-shore facility over a franchise period. At the expiration of such
period, the facility is turned over to the government; and

•        Rehabilitate-Own-Operate (ROO) — an
existing on-shore facility is turned over to the private sector to
refurbish and operate with no time limitation imposed on ownership. As
long as the operator does not violate its franchise, it can continue
operating the facility.

e)      ECD — the Engineering and Construction Division of the LLDA;

f)       EPD — the Environmental Protection Division of the LLDA;

g)      Ferry System — a network of vessels including motorized
boats of at least three (3) gross tonnage plying the designated
navigational routes to carry people and goods across and within the
Laguna de Bay, its tributaries and the Napindan Channel;

h)      Joint Venture Agreement — a consortium between or among
private individuals/partnerships/corporations, LLDA and other government
agencies for the financing, design, construction, operation and
maintenance of on-shore facilities where members bind themselves to be
jointly and severally responsible for the obligations of the proponent
under a contract;

i)       Laguna de Bay Region — comprises the whole provinces of
Rizal and Laguna, the cities of San Pablo, Pasay, Caloocan, Quezon,
Manila, Marikina, Pasig, Muntinlupa, Antipolo and Tagaytay, the towns of
Tanauan, Sto. Tomas and Malvar in Batangas, the towns of Silang and
Carmona in Cavite, Lucban in Quezon and the towns of Taguig and Pateros
in Metro Manila;

j)       LGU — Local Government Unit;

k)      On-Shore Facilities — passenger/ferry terminals
including wharves and piers, radio or telecommunication and other
related facilities, garbage/sewage disposal and other sanitary
facilities, warehouse and cold storage facilities, mooring/berthing
facilities, eco-tourism support facilities as may be required by the DOT
such as medical facilities, parking space, food catering services/snack
bars, information/orientation booth, souvenir shops and other on-shore
facilities;

l)       PPA — Philippine Ports Authority;

m)     PPDD — the Planning and Project Development Division of the LLDA;

n)      Pier — any structure built into the lake but not
parallel to the shoreland and includes any landing stage, stair, jetty,
floating barge or pontoon and any bridge or other works connected
therewith;

o)      PMD — the Project Management Division of the LLDA;

p)      Private Sector — specific individual, single proprietorship, partnership or corporation;

q)      Project Proponent — any private individual, single
proprietorship, partnership or corporation, whether local or foreign, or
local government unit and, other government agencies which/who formally
signifies intention to finance the engineering, design, construction,
operation and maintenance of on-shore facilities and submits complete
requirements for project proposals;

r)       SCO — the Special Concerns Office of LLDA; and

s)      Wharf  — a continuous structure built parallel to or
along the margin of the sea or alongside, canals, or waterways where
vessels may lie along side to receive or discharge cargo, embark or
disembark passengers or lie at rest.

ARTICLE 5.       Clearances/Permits for On-Shore Facilities.
The development of on-shore facilities including the use of equipment
in the conduct of activities such as loading, unloading, refueling and
others shall be required to secure:

a)         LLDA Clearance in accordance with Sections 4 (d) and
41 of R.A 4850 as amended and its implementing rules and regulations;

b)         Discharge Permit, Authority to Construct and Permit to Operate Emission Source Installations, if applicable;

c)         Shoreland Occupancy Permit (SOP), if the site is an untitled shoreland area below 12.50-meter elevation;

d)         Permit to Construct for new ferry landings as per PPA Administrative Order No. 06-95; and

e)         Other permits/clearances/licenses as required by other concerned agencies and LGUs.

ARTICLE 6.       Joint Venture Agreements. — In
the absence of any qualified private sector proponent, the LLDA may
enter into a joint venture agreement with the private sector, local
government units and/or other authorized government agencies for the
development and operation of on-shore facilities or services only on
on-shore projects or services that are not yet available or when public
interest so dictates. Provided, further, that the LLDA shall have
adequate representation in the management board of the joint venture
company which shall be commensurate to its investment and other assets
in the joint venture. The LLDA shall advertise proposed joint venture in
a newspaper of general circulation.

SECTION 1.       Qualifications of Joint Venture Proponent. — The joint venture proponent shall have the following basic qualifications:

a)         It must have proven track record in similar undertakings;

b)         It must have sufficient technical and financial capability to undertake the project; and

c)         Other qualifications as may be imposed by the LLDA.

SECTION 2.       Citizenship Requirement. — The
resulting Joint-Venture Company shall comply with the citizenship
requirement of the Constitution of the Philippines and other existing
laws.

ARTICLE 7.       Institutional Arrangements with LGUs and/or Authorized Government Agencies.
— When no private sector proponent qualifies or signifies intention,
the LLDA may enter into an institutional arrangement with LGUs and/or
other authorized government agency through a Memorandum of
Agreement/Understanding.

ARTICLE 8.       Build-Operate-Transfer Scheme and Other Variants.
— These guidelines are supplementary to the implementing guidelines,
rules and regulations of R.A. 6957 as amended by R.A. 7718 otherwise
known as amended BOT Law. The private sector may be allowed to
participate in the implementation of on-shore projects and services
through the build-operate and transfer (BOT) scheme or any of its
variants in accordance with the following guidelines:

a)    In general, only projects included in the Medium Term
Public Investment Program (MTPIP) as approved by NEDA may be allowed for
implementation under the BOT Law;

b)    Projects not listed in the MTPIP may also be allowed for
BOT scheme under the “unsolicited proposal” provision of the BOT Law,
provided such proposals are consistent with the Laguna de Bay Master
Plan;

c)    Requisites/requirements for proposals, either solicited or
unsolicited, shall follow the Implementing Rules and Regulations of the
BOT Law as amended.

d)    In the aforementioned cases, LLDA’s decision to allow
projects for implementation through BOT scheme or other variants shall
consider the cost of pre-feasibility, feasibility and detailed
engineering studies as part of the investment of the other contracting
party/ies. Such cost of studies shall not exceed the rate as prescribed
by NEDA.

ARTICLE 9.       Requirements for Project Proposals/Applications
. — All proposals/applications, whether for joint venture, BOT scheme
or any variant thereof or inter-agency memorandum of agreement shall
comply with requirements as imposed by the LLDA.

SECTION 1.       Individual Proponent. — For individual proponent, requirements shall be covered by Article 5 of these guidelines.

SECTION 2.       Joint Venture Proponent . — Proposal for joint venture shall be accompanied with a pre-feasibility study which includes the following components:

a)      Demand analysis based upon current and projected
passenger and cargo traffic, passenger flow and other special/relevant
traffic;

b)      Alternative technical schemes to meet present and future
demand including assessment of the size, location and technical
soundness of each option. This will deal with alternative types of
structures, construction materials and methodology, project schedules
and cost estimates;

c)      Implementing and operating cost of each alternative
based on the types of operation and varying cargo handling systems to be
adopted and equipment to be used;

d)      Quantification of economic benefits including but not limited to savings in vessel or cargo operations;

e)      Benefit-cost analysis to determine Economic Internal
Rate of Return (EIRR) and Financial Internal Rate of Return (FIRR) of
each alternative;

f)       Plans/Drawing including: i) Site and vicinity plans, ii) Development plan

SECTION 3.       BOT Proponent . — Proposals for BOT scheme shall comply with the requirements of the amended BOT Law, as follows:

a)         Technical Proposal to include:

i)       Technical soundness/preliminary engineering design
consisting of engineering design consisting of engineering surveys,
plans and estimates; construction methods and schedules; proposed
project timeline;

ii)      Proposed organization, methods and procedures for operating and maintaining the completed facility;

iii)     Preliminary environmental assessment which indicates
possible negative or adverse effects on the environment or proposed
design and technology, and the corresponding corrective/mitigating
measures;

iv)      Project cost including operating and maintenance cost
requirements and proposed financing plan (proposed equity contribution,
debt, etc.);

v)       Other terms to enhance the proposal such as provisions
allowing the government/LLDA to share in revenues, less government
guarantees, or reduction in the level of government/LLDA support;

vi)      Bid security in the form of cash, certified check,
manager’s check, letter of credit, or bank draft/guarantee issued by a
reputable bank, or a surety bond callable on demand issued by an entity
duly registered and recognized by the Office of the Insurance
Commissioner and acceptable to the LLDA, or any combination thereof
payable to the Authority in accordance with the following schedules:

Required Bid Security	Estimated Cost of Construction
Not less than 2.0% of the estimated cost of construction	Less than P5.0 billion
Not less than 1.5% of the estimated cost of construction but at least P100 million	5.0 billion to 10.0 billion
Not less than 1.0% of the estimated cost of construction but at least P150 million	10.0 billion and above

The posting of the bid security is for the purpose of
guaranteeing that the proposed contract awardee shall within seven (7)
calendar days from receipt of the Notice of Award enter into contract
with the LLDA and furnish the required performance security within the
time prescribed therefor.

Bids and bid securities shall be valid for a period to be
prescribed by the LLDA in the bidding documents but in no case beyond
one hundred and eighty (180) calendar days from the date of opening of
bids.

vii)  Other documents as may be required by the LLDA to support the technical proposal.

b)         Financial Proposal for those who will be qualified based on the evaluation of the technical proposal:

i)   For BOT, BOO, CAO, DOT, ROT, ROO and similar schemes:

•           Proposed user tolls/fees/rentals/other charges; and
•           Present worth of proposed user
tolls/fees/rentals/other charges over the fixed term based on the
prescribed discounting rate and foreign exchange rate.

ii)  For BT, BLT, BTO and similar schemes:

•           Proposed amortization payments and repayment period; and
•           Present worth of proposed amortization payments based
on the prescribed discounting rate and foreign exchange rate.

iii) For project where the LLDA, LGU and other concerned
agencies require payment to be made by the project proponent to the
government:

•           Proposed payment scheme; and
•           Prescribed present worth of proposed payments based on discounting rate and foreign exchange rate

ARTICLE 10.     Evaluation of Proposals . —
Proposals with complete requirements shall be evaluated following the
procedural guidelines to be issued by the General Manager of the LLDA.
Evaluation of BOT proposals, either solicited or unsolicited, shall
follow the Implementing Rules and Regulations of the BOT Law, as
amended, these guidelines and other pertinent regulations. The LLDA
shall create a Joint Venture/BOT Committee for proper evaluation of the
proposals. The Committee shall be chaired by the Assistant General
Manager of the LLDA and composed of the officer-in-Charge (OIC) of the
SCO, the Division Chiefs/OICs of PPDD, ECD, EPD, Legal Division, Finance
Division and PMD as well as representatives from the Department of
Tourism, Department of Public Works and Highways, PPA and the LGU where
the on-shore facility is to be undertaken.

ARTICLE 11.     Requirements for Approved Proposal. — For approved proposals, the following shall be required:

a)      Duly accomplished LLDA application form;

b)      Locational Clearance from the LGUs/MMDA/HLURB as the case maybe;

c)      Environmental Clearance Certificate from the DENR;

d)      Articles of Incorporation for corporations approved by the SEC; and

e)      Shoreland Occupancy Permit from the LLDA (if the site is untitled lakeshore area of Laguna de Bay);

f)       Plans (size 50 cm x 90 cm) including site development
and vicinity plans, drainage/sewer plan and layout all signed by the
owner in addition to the civil/sanitary engineer who prepared the plans;

g)      Authority to Construct from the Philippine Ports Authority;

h)      Project Description/Engineer’s Report on waste
management (liquid, gaseous and solid) including plans pertinent to
waste treatments and indicating explicitly design criteria, waste
characterization, design calculation and treatment efficiency all signed
by the owner in addition to the sanitary or chemical engineer or both
who prepared the plans;

i)       Construction timetable;

j)       BOI registration for foreign or local proponents who/which intend to avail of BOI incentives;

k)      Other requirements as may be imposed by the Authority.

ARTICLE 12.     Procedures for the Issuance of Permits
. — Permits shall be issued in accordance with the existing Permitting
Systems and Procedures (Annex 1). The LLDA shall provide the concerned
LGU with a list of qualified proponents with issued permits.

ARTICLE 13.     Responsibility for Clearing of Structures and Relocation of Informal Settlers
. — Clearing of structures and relocation of informal settlers, if
necessary, in areas where on-shore facilities will be
developed/constructed shall be in accordance with existing laws, rules
and regulations on eviction and demolition.

ARTICLE 14.     Final Provisions. —

Section 1.       Monthly Reports. — The Special
Concerns Office shall submit to the General Manager a monthly report on
all undertakings dealing with on-shore facilities/installations
including, but not limited to, proposals for joint-venture, BOT scheme,
status and progress of proposals under process or implementation,
problems concerning implementation and all related information. The
concerned LGU shall be furnished with a copy of the monthly report by
the LLDA.

Section 2.       Penalty Clause. — Violations of these guidelines shall be subject to implementing rules and regulations of R.A. 4850, as amended.

Section 3.       Separability Clause.—
Any provision or portion of these guidelines declared invalid or
unconstitutional shall not affect its other provisions to which the
declaration does not relate.

Section 4.       Repealing Clause . — All LLDA
orders, guidelines, circulars, rules and regulations inconsistent
herewith are hereby repealed or amended accordingly.

ARTICLE 15.     Effectivity . — These guidelines shall take effect fifteen (15) days from the date of publication in a newspaper of general circulation.

APPROVED.

Adopted: 27 January 2000

(SGD.) JOSE D. LINA, JR. Chairman	(SGD.) ROSELLER S. DELA PEÑA Vice-Chairman
(SGD.) ARTURO L. TIU	(SGD.) BERNARDO F. SAN JUAN
(SGD.) GODOFREDO C. VALERA	(SGD.) ZENAIDA C. MAGLAYA
(SGD.) NESTOR R MIJARES IV	(SGD.) JEJOMAR C. BINAY
(SGD.) JOAQUIN G. MENDOZA.	Directors
Directors
Attested by:
(SGD.) LORETA D. VILLARUZ Board Secretary V