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 PE A 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