Light Rail Transit Authority (Line 2) [2]

December 7, 2005 FIRB RESOLUTION NO. 008-05 SUBJECT : Light Rail Transit Authority (Line 2) [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 Metro Manila Strategic Mass Rail Transit Development (Line 2) Project 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 light rail system materials and equipment to ensure its completion; WHEREAS, the FIRB in its June 30, 2005 meeting already approved the amount of P8,214,104.00 only out of the requested amount of P25,626,953.00, covering the taxes and duties of LRTAs 2005 importations certified as valid importations for the Line 2 Project and have arrived as of June 30, 2005; 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 P2,433,577.33 only , representing taxes and duties on its 2005 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 P2,018,330.00 representing the taxes and duties due on importations [3 shipments with Bureau of Customs (BOC) billings] that arrived from June 20, 2005 to July 14, 2005; (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