Light Rail Transit Authority (Line 1)

December 7, 2005 FIRB RESOLUTION NO. 007-05 SUBJECT : Light Rail Transit Authority (Line 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 Modernization Phase II-Project aims to modernize and upgrade existing BN ACEC light rail vehicles (LRVs). WHEREAS, the Project involves the procurement of technical services, critical electronic equipment, traction motor armatures, spare parts of non-operational LRVs, various equipment sensors and refurbishment of some chopper modules to make it operational to serve the riding public. 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 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 P18,743,595.00 only , representing taxes and duties on its 2005 importations of materials and equipment intended for the exclusive use of the LRT Line 1 Modernization Phase II-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 P3,449,068.00 representing the taxes and duties due on three (3) importations that arrived on July 8, 2005 to September 18, 2005 with Bureau of Customs (BOC) billings; (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 14 of the 2005 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. FOR THE FIRB: (SGD.) LINA D. ISORENA Executive Director Head, FIRB Secretariat Reference: Joint FIRB-Technical Committee Meeting dated December 7, 2005 ANNEX A SCHEDULE OF ESTIMATED TAXES AND DUTIES