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    TERMS OF REFERENCE

    PROCUREMENT OF CONSULTING SERVICES FOR THE FORMULATION AND

    IMPLEMENTATION OF A DIVESTMENT STRUCTURE FOR THE SUBIC BAY

    INTERNATIONAL AIRPORT

    1. BACKGROUND / RATIONALE

    The Subic Bay Metropolitan Authority (“SBMA”) intends to divest itself of the

    operation and management of the Subic Bay International Airport (SBIA). The SBMA

    recognizes the potential of the SBIA as a transportation hub for business, general

    aviation and charter flight operations. To achieve that goal, it needs the participation of

    the private sector not only for the investment it can provide but also the expertise

    necessary to run the operations and management of the SBIA towards it growth.

    The SBMA board on its regular session approved a resolution for the SBIA to

    undergo a divestment proceeding.

    To further enhance its potential and to attract more investments, the Subic Bay

    Metropolitan Authority has recently commenced a program of rehabilitation and

    upgrading of the communications, navigational and surveillance equipment of the Subic

    Bay International Airport using funds provided by the National Government to restore

    its reliability and capability as an International Airport allowing aircraft to operate under

    instrument Flight Rules (IFR).

    The operation and management of the Subic Bay International Airport by the Subic

    Bay Metropolitan Authority is provided for under Republic Act No. 7227. The divestment

    arrangement shall be governed and guided by Republic Act No. 6957, as amended by

    Republic Act No. 7718, otherwise known as the “BOT Law”, and its Implementing Rules

    and Regulations (IRRs) or the NEDA Joint Venture (JV) Guidelines or other

    appropriate laws relevant to the chosen mode of divestment.

    2. CAVEAT

    The information in this TOR is given to assist prospective CONSULTING FIRMS

    engaged in the provision of consulting services in the preparation of their proposal and / or

    serve as a guide in the performance of the required services if awarded the contract. The

    SBMA does not guarantee the accuracy and completeness of the information contained

    herein or its various attachments. In all cases, interested parties should conduct and exert

    their own diligence, investigations, and projections for the proposed project:

     None of the information herein will be used by the recipient or any of its employees or representatives in any manner whatsoever, in whole or in part, other than in connection

    with its evaluation of works for the purposes of considering the provisions of services

    proposed herein.

     Without limiting the generality of the foregoing, the recipient will not reproduce this TOR to any person other than a limited number of the recipient employees or

    representatives who have a clear need to know such information; and

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     Any proposed action by the recipient which is inconsistent in any way with the foregoing agreements will require written consent from the SBMA.

    While the SBMA is open to all applications from qualified parties, SBMA reserves the

    right to reject any and all bids for this consulting services, declare a failure of bidding, or

    not award the contract in accordance with Section 41 Reservations Clause of RA 9184.

    3. OBJECTIVES AND EXPECTED RESULTS

    The overall objective of this Terms of Reference is to procure and engage the

    services of a consulting firm to identify and formulate a mode of divestment for the Subic

    Bay International Airport that is consistent with the policies and programs of the Subic

    Bay Metropolitan Authority. The formulated mode of divestment shall ensure that all areas of

    concern, all possible options and their implementation have been carefully considered.

    At the end of the consulting services it is expected that a suitable and advantageous

    form of divestment shall have been identified, formulated and ready for implementation

    which shall include all the articulated outputs and results mentioned above and in the

    Scope of Services of this TOR.

    It shall have the following results and outputs:

    a. Identification of the most suitable and advantageous form of divestment.

    b. Identification and mitigation of all areas of concern: Legal, Financial, Technical and

    the Socio- Economic implications to affected stakeholders.

    c. Incorporation of the existing MOA with the AFP in the divestment arrangement. The provisions for the utilization of joint areas along the SBIA for AFP operations

    as indicated in the MOA should be included in the planning and development of the

    Airport facilities and operations.

    d. Determination of the full utilization of airport assets and to come up with an inventory and database of airport-owned properties through an Airport Asset

    Management Program, including but not limited to the existing hangars/buildings

    and spaces vacant building space and land available for commercial development,

    as well as their site-specific attributes.

    4. SCOPE OF SERVICES

    The CONSULTING FIRM’s scope of services is outlined below and described in detail

    in Annex “E” of this Terms of Reference. The consulting firm shall provide professional

    services in performing these works to ensure that the desired results stated in the above

    objectives are met through advanced methods and techniques in accordance with the

    requirements set forth herein. The services to be performed are divided in two phases listed

    as follows:

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    A. Phase I: Inception Phase

     Familiarization of the Undertaking based on existing relevant documents

    regarding the Subic Bay International Airport and the extent of its aerodrome

    operation.

     Presentation and discussion of the consulting firms plans and programs to

    attain the desired result of this Terms of Reference to the representatives of the

    SBMA/SBIA.

     Submission of inception report and the first monthly report

    B. Phase II: Divestment Scheme Identification and Preparation

    Under this phase, the consulting firm should accomplish the following:

     Formulation of the Proposed Divestment Scheme

     Preparation of Divestment Agreements and Any Ancillary Agreements:

     Preparation/Compilation of Bid Tender documents for the chosen mode of

    divestment and the necessary and required inclusions therein;

     Financial and Economic Analyses of the chosen mode of divestment

     Other outputs as required

    5. TIMELINES AND DELIVERABLES

     Commencement Date and Period of Consulting Services

    The consulting service with the desired results shall be completed within a

    period of 4 months commencing from the date stated on the Notice to Proceed

    (NTP). Phase I shall be for a period of three weeks, Phase II for a period of three

    months.

    Refer to Annex A for an illustration of the indicative implementation timeline of

    the consulting service.

     Submission of Reports

    Within seven (7) days from the date of commencement indicated in the Notice

    to Proceed of the consulting service, the consulting firm shall submit to and discuss

    with SBMA its plans and programs in achieving the intended results and outputs

    stipulated in this Terms of Reference.

    An electronic copy of the report shall be provided to SBMA in every submission

    of the hard copy.

    The Inception Report shall include, among others, the approved detailed plans

    and programs, the description of the corresponding activities as stated in Phase I,

    Section 4, Scope of Services, milestones to be accomplished and the approaches

    and methodologies to be utilized in the formulation of the Study. It shall be

    submitted three weeks after the date of the Notice to Proceed.

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    The Monthly Progress Reports shall include updates on the physical and

    financial accomplishments of each activity under Section 4, Scope of Services,

    detailed in Annex E and other works as stipulated in this Terms of Reference,

    including the difficulties encountered and measures taken to overcome them.

    Submission of this is within 3 calendar days from end of agreed month period.

    The Draft Final Reports and Documents, which shall be submitted to

    concerned SBMA Department or Committee for final approval, shall consist of the

    consolidated monthly reports, the Draft Bid Tender Documents and other required

    outputs listed in this Term of Reference. This is to be submitted two (2) months

    after the review and approval of the Inception Report.

    The Final Bid Tender Documents, which shall be submitted to concerned

    SBMA Department or Committee for final approval, shall consist of the

    consolidated monthly reports, the Final Bid Tender Documents and other required

    outputs listed in this Term of Reference. It shall be submitted one (1) month after

    the submission of the Draft Reports and Documents.

    The Final Report which shall be submitted to SBMA for final approval shall

    consist of all the consolidated deliverables and

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