In order to rationalize the system of evaluation of applications for inland treasure hunting or shipwreck recovery permits, and as recommended by the Technical Review Committee on Treasure Hunting constituted under Memorandum Order No. 48 dated January 27, 1999, the following criteria are hereby issued pursuant to Memorandum Order No. 389 dated July 26, 1996 and in accordance with Presidential Decree No. 1726-A dated October 1, 1980.

Section 1. Scope and Coverage. - Treasure hunting permits shall be issued for the following:

a. All inland treasure hunting activities in government properties or portions of the public domain. These involve any and all inland activities such as but not limited to locating, digging or excavating, securing, transporting and disposition of recovered treasures.

b. All shipwreck recovery activities. These involve any and all underwater activities such as but not limited to surveying, locating and exploring, salvaging and recovery of sunken vessels and all cargoes and other valuable items therein, including the process of securing, preservation, documentation and disposition of the salvaged or recovered valuables.

Treasures found in private properties shall be governed by the Civil Code, in accordance with Sec. 7 of P.D. No. 1726-A.

Section 2. Qualified Applicants. - The following individuals or entities may apply for treasure hunting permits:

a. For inland treasure hunting activities: Individuals, single proprietorships, partnerships or corporations may apply for inland treasure hunting permit. Applicants must be able to show verifiable documentary and/or testimonial proof of existence of the claimed hidden treasures. They must also prove personal and/or corporate integrity, and financial and technical capability to undertake the project.

b. For shipwreck recovery: Only corporations or partnerships duly registered with the Securities and Exchange Commission (SEC) may apply for shipwreck recovery permit. Applicants must be able to show verifiable documentary and/or testimonial proof of existence of the shipwreck and valuable cargo, and prove financial and technical capability to undertake shipwreck recovery operation.

Section 3. Criteria/Guidelines for the Technical Evaluation. - The legal, technical, financial and operational capabilities of the applicant shall be evaluated in accordance with the following criteria or guidelines:

a. Legal and Administrative Capability

1. The applicant must accomplish and submit the prescribed Personal and/or Corporate Information Sheet.

2. To validate personal and/or corporate circumstances, the following documents should be submitted:

2.1. National Bureau of Investigation (NBI) clearance

2.2. Philippine National Police (PNP) clearance

2.3. Local Police clearance and

2.4. Provincial/City Prosecutor's clearance.

The same clearances apply to all project consultants and personnel.

3. Applicants of foreign nationality shall also submit:

3.1. a copy of their Alien Certificate of Registration (ACR)

3.2. a certification of good moral character

3.3. technical and financial capability authenticated by their respective Consular Offices and validated by the Philippine Consular offices.

4. For corporations and/or partnerships:

4.1 the applicant must secure from the SEC a certificate of good corporate standing

4.2 the applicant must show evidence of corporate mandate to engage in the Project.

4.3 submit certified true copies of the following:

4.3.1 SEC Articles of Registration

4.3.2 Board resolutions authorizing the Project and appointing a Project Officer, and

4.3.3 Mayor's Permit where the business is located.

5. Where the area to be affected involves both public and private land, i.e. it is situated in government property or a portion of public domain but the diggings are bound to affect neighboring lands which are privately owned, the applicant must show proof of the consent of property owner where the project is located.

6. The applicant must submit a certified true copy of notarized Joint Venture Agreement(s), if any.

b. Technical Capability

1. The applicant for treasure hunting must describe in detail the following:

1.1.

vicinity/location;

1.2.

applicant's reasons for concluding that hidden treasures exist or can be recovered from the site;

1.3.

procedures and processes to be employed to recover the hidden treasure/appropriate technologies that will be utilized in the various stages of the operations;

1.4.

extent and program of work (locating, digging and excavating activities) to be done including the required number of days, project phasing and schedule of activities;

1.5.

nature and extent of damages to the environment, if any; and the applicant's proposed restoration program and budget. This shall be the basis for the assessment and submission of the required surety bond for the restoration works;

1.6.

equipment specifications, mode of acquisition and cost estimates;

1.7.

breakdown of estimated project costs.

2. The applicant for shipwreck salvaging must describe in detail the following:

2.1

vicinity/location;

2.2

applicant's reasons for concluding the existence of a shipwreck with cargo or items that are valuable and worth recovering from the site;

2.3

appropriate technologies that will be utilized in the various stages of the operations;

2.4

nature and extent of damages to the environment, if any; and the applicant's proposed restoration program and budget. This shall be the basis for the assessment and submission of the required surety bond for the restoration works;

2.5

project phasing, work program and schedule of activities in such form as may be required by the Technical Review Committee;

2.6

equipment specifications, mode of acquisition and cost estimates;

2.7

breakdown of estimated project costs.

3. The applicant shall submit a list of experts/technical consultants they intend to hire. Contracts and agreements, if any, shall accompany respective professional resumes.

c. Financial Capability - To facilitate the financial evaluation, the following documents will be required:

1. project financial statements including monthly projection of cash flow requirements from pre-operating phase to end of project;

2. bank guarantees, credit lines and cash deposits and other proofs or evidences of the sources of funding or access to financing;

3. certified true copies of audited corporate financial statements;

4. bank references;

5. latest income tax returns.

d. Managerial and Operational Capability - To evaluate managerial and operational capability, the following information and documents must be submitted:

1. Table of organization and compensation schedule;

2. Profile of shareholders/investors, officers and project management team.

Section 4. Required Documents. - Documents required in support of the applications as stated in Annex "A"*, which forms part of this Memorandum Order, shall be submitted by applicants.

Section 5. Effectivity. - This Memorandum Order shall take effect immediately.

Adopted: 31 May 1999

By Authority of the President:

(SGD.) RONALDO B. ZAMORA
Executive Secretary

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^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.