Light Rail Transit Authority (Line 2)

August 12, 2004 FIRB RESOLUTION NO. 007-04 SUBJECT : Light Rail Transit Authority (Line 2) 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, 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 P82,337,137.00 only, representing taxes and duties on its 2004 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 P31,186,350.00 representing the taxes and duties due on importations [35 shipments with Bureau of Customs (BOC) billings] that arrived from November 16, 2003 to March 22, 2004; (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; and (c) 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 as reenacted, 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. aHcDEC (SGD.) NIEVES L. OSORIO Undersecretary of Finance Presiding Officer FIRB References : Joint FIRB-Technical Committee Meeting dated August 12, 2004. ANNEX A SCHEDULE OF ESTIMATED TAXES AND DUTIES