Light Rail Transit Authority (1)

August 14, 2003 FIRB RESOLUTION NO. 001-03 SUBJECT : Light Rail Transit Authority (1) WHEREAS, the Light Rail Transit Authority (LRTA) is engaged in the operation of a mass transport system intended to answer the transport needs of commuters belonging generally to the low and middle income groups and to decongest the road traffic network; WHEREAS, LRT Line 1 Capacity Expansion Project- Package B is intended to respond to the felt need for an expansion of the capacity of the country's first LRT system which has continued to operate with its original fleet acquired in the mid-1980's and to cope with the present and expected increase in volume of passengers using LRT Line 1 and the additional passenger demand to be generated under an integrated MRT Line 1, 2 and 3 systems; WHEREAS, the Project requires importation of air-conditioning units, construction and light rail system materials and equipment to ensure its completion; WHEREAS, if the taxes and duties on the Project-related importations are borne by the LRTA, it may have financial difficulty in complying with such obligations, in view of the latter's tight financial position; WHEREAS, there is also a need to ensure that all importations covered by this tax subsidy grant will be used exclusively for the Project and not for other purposes; NOW THEREFORE BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to grant tax subsidy to the LRTA in the amount of P131,740,735 only , representing taxes and duties on its (a) 2002 importation which arrived on December 24, 2002 after the cut-off period of December 15, 2002; and (b) 2003 importations of materials and equipment intended for the exclusive use of the Line 1 Capacity Expansion Project Phase II- Package B per Annex A hereof: Provided, however , that (a) the initial issuance of the corresponding Certificate of Entitlement to Subsidy (CES) shall be limited to the amount of P22,799,539 only , representing the taxes and duties due on importations [3 shipments with Bureau Of Customs (BOC) billings] that arrived from December 24, 2002 to March 19, 2003 (Annex B); and (b) the subsequent CES shall be issued upon the submission by the LRTA to the FIRB of required billings and/or documents evidencing the importations: Provided, further , that all materials and equipment for which tax subsidy is granted shall form part of the regular inventory of the LRTA (in the case of materials and movable equipment) and/or be located in their designated project stations/operating areas (in the case of immovable equipment) as certified to by the resident Commission on Audit (COA) auditor of the LRTA and its Project Station/Operating Area Manager, respectively: Provided, finally , that the grant of such subsidy shall be in accordance with the terms and conditions of Section 13 of the 2003 General Appropriations Act, subject to the availability of funds therefor, pursuant to the terms and conditions of the Rules and Regulations to Implement the Subsidy Provision Under Executive Order No. 93. DaTISc (SGD.) NIEVES L. OSORIO Undersecretary of Finance Presiding Officer FIRB Reference: FIRB Technical Committee Meeting dated July 22, 2003 FIRB Meeting dated August 14, 2003 ANNEX A List of Importations Chargeable Against the FY 2003 Tax Subsidy ANNEX B Tax Subsidy Endorsed, 2003: Coverage of the First CES