Light Rail Transit Authority

August 22, 2002 FIRB RESOLUTION NO. 004-02 SUBJECT : Light Rail Transit Authority 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, the LRTA is constructing the Metro Manila Strategic Mass Rail Transit Development (Line 2) Project which is intended to (a) transport people from the eastern sector of the metropolis to downtown Manila safely and comfortably; (b) accommodate a big share of public transport passengers; (c) save travel time; (d) ease heavy congestion of existing roads; (e) improve traffic safety; and (f) reduce air pollution; WHEREAS, the Project requires importation of 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 its projected negative cash and investment balance for the last three quarters of 2002; 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 P1,386,464,531 only, representing taxes and duties on its 2002 importations of materials and equipment intended for the exclusive use of the Metro Manila Strategic Mass Rail Transit Development (Line 2) Project 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 P77,678,464 only, representing taxes and duties on 37 shipments with billings of the Bureau of Customs (BOC) that arrived from January 2, 2002 to March 19, 2002; 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 importation: Provided, further, that the taxes and duties on importations that arrived in December 2001 which form part of LRTA's back accounts with the BOC shall only be considered for tax subsidy after the issue of back accounts has been cleared with the Department of Budget and Management (DBM): Provided, furthermore, 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 2002 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. CTSDAI (SGD.) NIEVES L. OSORIO Undersecretary of Finance Presiding Officer FIRB Reference : FIRB-Technical Committee Meeting dated August 9, 2002 FIRB Meeting dated August 21, 2002 SUMMARY OF ESTIMATED TAXES AND DUTIES FOR CY 2002 QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4 TOTALS Package P1 36,278,128 20,157,533 - 44,592,202 101,027,862 Package P2 & P3 92,552,652 237,717,545 83,452,780 6,649,074 420,372,051 Package P4 123,517,078 372,832,376 176,757,024 191,958,140 865,064,618 TOTALS 252,347,858 630,707,454 260,209,804 243,199,416 1,386,464,531 SCHEDULE OF ESTIMATED TAXES AND DUTIES