WORLDfund.net
WORLDfund.net is affiliated with a Project Development Company registered in Cayman Islands, domiciled in Hongkong and operates in the Philippines as a branch office, providing and sourcing funds for local government units(LGU's) on their projects.
The Project Development Company is staffed with experts in packaging project development concepts that fit the needs of the LGUs(local government units) not only from the point of view of business but also from the point of view of serving the interests of the greater number of constituents of the LGUs.
The infrastructure needs of the LGUs in various parts of the country continue to multiply. This is brought about by the never-ending needs of the ever-expanding population. Under this environment, any private company willing to assist the LGUs realize their infrastructure needs must have consistent financial strength, coupled with competent organization to face the challenges ahead.
The Project Development Company can participate as investor or project developer of small to large-scale projects using its vast expertise in tapping international resources, be it financial or technical.
FINANCIAL ADVISORSHIP
The Project Development Company can act as Financial Advisor to LGUs in order for them to realize their small to large-scale projects. This may involve private placements, flotation of bonds, securitization of assets, and other fund sourcing strategies.Its expertise is customized structured project financing.
PROJECT CONCEPTUALIZATION
The Project Development Company is providing assistance to LGUs in terms of preparing feasibility studies, pre-investment studies and research, conceptual and development planning, due diligence and legal compliance of the contract awarding process. These varied services should be provided to the LGUs concerned so that before they embark on project implementation, they will have already a clearer outlook of what the project will be, especially the financial or technical points of view and assure compliance with applicable of rules and regulations.
PROJECT IMPLEMENTATION
This will now be the fruit of all the efforts undertaken by the company, in joint collaboration with the LGU. In this stage, the company is now implementing the product of its labor. In order to realize what has been originally conceptualized and envisioned, the company only engages the services of the competent and experienced Engineers, Architects and Construction Managers to undertake the project. This is to see to it that the end result will pass the taste and judgment of the meticulous public, most particularly the constituents of the LGU concerned.
PUBLIC-PRIVATE PARTICIPATION AND PRIVATE FINANCE INITIATIVES
The mode of payment mentioned under PD 1594, and its Implementing Rules and Regulations, as amended, calls for the government agency or LGU, to provide advance payyment of about fifteen percent (15%) and payment of Monthly Progress Billing. This means that the LGU, or any government agency for that matter, has already in its Bank the total amount needed for the particular project, ready for disbursement anytime, as the case maybe. This conventional practice strains the cash resources of the LGU significantly. This is where PPP and PFI are most appropriate.
Under R.A.7718, otherwise known as the BOT Law, there are nine (9)allowable contractual arrangements. These are :
1. Build-and-Transfer (BT)
2. Buil-Lease-and-Transfer(BLT)
3. Build-Operate-and-Transfer((BOT)
4. Build-Own-and-Operate(BOO)
5. Build-Transfer-and-Operate(BTO)
6. Contract-Add-and-Operate(CAO)
7. Develop-Operate-and-Transfer(DOT)
8. Rehabilitate-Operate-and-Transfer(ROT)
9. Rehabilitate-Own-and-Operate(ROO)
The Project Development Company in partnership with LGUs, can customize the investment in social overhead capital(infrastructure) or economic enterprise(income generating projects), considered most advantageous to the LGU as well as generating reasonable return on investment capital.
Below is a list of probable projects the company can participate in:
INFRASTRUCTURE: REVENUE GENERATING PROJECTS
1. Public Markets
2. Slaughterhouses
3. Ports
4. Transport Terminals
5. Post Harvest Facilities
6. Storage Plants
7. LGU operated Hotels, etc.
NON-REVENUE GENERATING PRODUCTS
1. Roads and Bridges
2. Flood control, drainage and sewerage system.
SOCIAL-ORIENTED INFRASTRUCTURE PROJECTS
1. Health Centers
2. School Buildings
3. Government Centers
ENVIRONMENTAL-ORIENTED INFRASTRUCTURE PROJECTS
1. Sanitation and Sewerage System
2. Public Memorial Parks
MASS HOUSING PROJECTS
1. Socialized Housing
2. Low-cost Housing
PUBLIC UTILITIES PROJECT
1. Local Power Generation System
2. Water Supply System
RESOURCES AVAILABLE TO LGUs
With the wide-ranging autonomy accorded to the LGUs by the Local Government Code of 1991, LGUs can now access to a variety of financing options.
As a general policy, the local government unit may create indebtedness, and avail of the credit facilities to finance local infrastructure and other socio-economic development projects in accordance with the approved local development plan and public investment program.
Briefly, the LGU can explore and avail the following:
1. Loans, credits and other Forms of Indebtedness
2. Deferred-Payment and other financial schemes
3. Bonds and other Long-Term Securities
4. Inter-Local Government Loans, Grants, and Subsidies
5. Loans from funds secured by the National Government
from Foreign Sources
6. Financing, Construction, Maintenance, Operations and
Management of Infrastructure Projects by the Private
Sector.
The Project Development Company can act as financial
and/or implementor in order to assist the LGUs realize
the objectives.
LAWS SUPPORTING FISCAL INDEPENDENCE OF LGUs
Among the prominent laws supporting the fiscal independence
of LGUs are the following :
1. RA 7160, otherwise known as "The Local Government
Code of 1991" This law accords the LGUs genuine
and meaningful local autonomy to enable them to
attain their fullest development as self-reliant
communities.
2. RA 7718, otherwise known as "The BOT Law". This law
authorizes the financing, construction, operations
and maintenance of infrastructure projects by the
private sector. This law also provides several
contractual arrangements, which the LGU may
explore.
For further details,
Please e-mail us at : greatlandph@yahoo.com
Or call : CABALITAN AND ASSOCIATES
Telephone No. : 063-716-5844
Cellular phones : 0919-4006465,0916-7809664, 0919-5606078
Looking forward to hear from you soon.
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