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SUPPLEMENTAL NOTES FOR THE 2016 BLEREB

These notes are simply intended to be additional notes for the REBLEX 2016 and are only to supplement the notes and materials which materials form the core of the scope for the licensure examinations and are supposed to have been taken during the comprehensive real estate seminars and review.

NATIONAL ECONOMY

SUPPLEMENTAL NOTES FOR THE 2016 BLEREB These notes are simply intended to be additional notes for

Build-operate-and-transfer [ BOT ]- A contractual arrangement whereby the project proponent undertakes t he construction, including financing, of a given infrastructure facility, and the operation maintenance thereof. The project proponent operates the facility over a fixed term during which it is allowed to charge facility users appropriate tolls, fees, rentals, and charges not exceeding those proposed in its bid or as negotiated and incorporated in the contract to enable the project proponent to recover its investment, and operating and maintenance expenses in the project.

The project proponent transfers the facility to the government agency or local government unit concerned at the end of the fixed term which shall not exceed fifty (50) years: Provided, That in case of an infrastructure or development facility whose operation requires a public utility franchise, the roponent must be Filipino or, if a corporation, must be duly registered with the Securities and Exchange Commission and owned up to at least sixty percent (60%) by Filipinos

RA. 6957 [ BOT LAW ], "AN ACT AUTHORIZING THE FINANCING, CONSTRUCTION, OPERATION AND MAINTENANCE OF INFRASTRUCTURE PROJECTS BY THE PRIVATE SECTOR, AND FOR OTHER PURPOSES

OTHER TYPES of CONTRACTUAL ARRANGMENTS

  • 1. Build-and-transfer - the project proponent undertakes the financing and construction of a given infrastructure or development facility and after its completion turns it over to the government agency or local government unit concerned, which shall pay the proponent on an agreed schedule its total investments expended on the project, plus a reasonable rate of return thereon.

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  • 2. Build-own-and-operate - a project proponent is authorized to finance, construct, own, operate and maintain an infrastructure or development facility from which the proponent is allowed to recover its total investment, operating and maintenance costs plus a reasonable return thereon by collecting tolls, fees, rentals or other charges from facility users:

  • 3. Build-lease-and-transfer - a project proponent is authorized to finance and consruct an infrastructure or development facility and upon its completion turns it over to the government agency or local government unit concerned on a lease arrangement for a fixed period after which ownership of the facility is automatically transferred to the government agency or local government unit concerned.

  • 4. Build-transfer-and-operate - the public sector contracts out the building of an infrastructure facility to a private entity such that the contractor builds the facility on a turn- key basis, assuming cost overrun, delay and specified performance risks.

  • 5. Contract-add-and-operate - A contractual arrangement whereby the project proponent adds to an existing infrastructure facility which it is renting from the government. It operates the expanded project over an agreed franchise period. There may, or may not be, a transfer arrangement in regard to the facility.

  • 6. Develop-operate-and-transfer - favorable conditions external to a new infrastructure project which is to be built by a private project proponent are integrated into the arrangement by giving that entity the right to develop adjoining property, and thus, enjoy some of the benefits the investment creates such as higher property or rent values.

  • 7. Rehabilitate-operate-and-transfer - an existing facility is turned over to the private sector to refurbish, operate and maintain for a franchise period, at the expiry of which the legal title to the facility is turned over to the government.

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  • 8. Rehabilitate-own-and-operate - an existing facility is turned over to the private sector to refurbish and operate with no time limitation imposed on ownership

PPPs - Public-Private Partnership PPP is broadly defined as a contractual agreement between the Government and a private firm towards financing, designing, implementing, and operating infrastructure facilities and services that were traditionally provided by the public sector. It embodies optimal risk allocation between the partiesthe Government minimizing the cost while realizing project developmental objectives; and the private sector getting a reasonable rate of return.

Trans-Pacific Partnership (TPP) is a landmark agreement that eliminates or reduces tariffs, lowers the cost of trade, and sets new and high standards for global trade while

addressing next-generation issues. The TPP is envisioned to promote economic growth, create jobs, raise living standards, reduce poverty, promote good governance, and enhance labor and environmental protections among its member countries.

OFWS
OFWS
addressing next-generation issues. The TPP is envisioned to promote economic growth, create jobs, raise living standards,
Source : POEA
Source : POEA
addressing next-generation issues. The TPP is envisioned to promote economic growth, create jobs, raise living standards,

Supplemental Notes for REBLEX 2016© ATM | 3

BPOS

BPO (business process outsourcing) - the “delegation of service-type business processed to a third-party service provider.”

Based on the 2015 data, the BPO industry

  • employs around 1.1 million Filipinos and

  • is expected to generate $21.3 billion dollars

compared to the 11 million OFWs that sent a total of $25 billion dollars in 2015.

http://filamstar.net

TOURISTS/ TOURISM

BPOS BPO (business process outsourcing) - the “delegation of service -type business processed to a third-party

Visitor Markets, January to December 2015. Korea still continued to be the biggest visitor- generating market with the year 2015 marking another milestone for this country by providing 1.34 million visitors, the first country market to passed the 1.3 million mark. This market accounted for one-fourth or 25% of the total arrivals and likewise registering a significant growth of 13.97%.

1.

Korea

1,340,000

2.

United States of America

: 779,217

3.Japan :

495,662

4.

China :

490,841

5.

Australia :

241,187

6.

Singapore :

181,176

7.

Taiwan :

177,670

8.

Canada :

156,363

9.

Malaysia :

155,814

10.United Kingdom :

154,589.

High growth markets, January to December 2015.

In addition to the top twelve markets,

countries with substantial growth in inbound are: Spain with 24,144 arrivals (+24.76%), New Zealand with 20,579 arrivals (+16.24%), France with 45,505 (+16.84%), Saudi Arabia with 50,884 arrivals (+17.02%), Netherlands with 28,632 arrivals (+13.46%), and Hongkong with 122,180 (+7.08).

Prepared by:

Tourism Research and Statistics Division (TRSD),

Office of Tourism Planning, Research and Information Management (OTPRIM)

Tourism Development Planning (TDP), Tourism Development, ____________________________________________________________________________________________

POPULATION
POPULATION
High growth markets, January to December 2015. In addition to the top twelve markets, countries with
High growth markets, January to December 2015. In addition to the top twelve markets, countries with

Supplemental Notes for REBLEX 2016© ATM | 5

ENVIRONMENT

NATIONAL GREENING PROGRAM

The National Greening Program (NGP) is a massive forest rehabilitation program of the

government established by virtue of Executive Order No. 26 issued on Feb. 24, 2011 by President Benigno S. Aquino III. It seeks to grow

  • 1.5 billion trees in 1.5 million hectares nationwide

within a period of six years, from 2011 to 2016.

LEED

Leadership in Energy and Environmental Design (LEED) is a rating system that is recognized as the international mark of excellence for green building in 150 countries.

DENR ACCOMPLISHMENTS

  • 1. Identified the Top 10 provinces highly susceptible to landslides, to wit:

    • a. Marinduque

    • b. Rizal

    • c. Cebu

    • d. La Union

    • e. Southern Leyte

    • f. Benguet

    • g. Nueva Vizcaya

    • h. Batangas

    • i. Mt. Province

    • j. Romblon

  • 2. Identified the Top 10 provinces highly susceptible to flooding, to wit:

    • a. Pampanga

    • b. Nueva Ecija

    • c. Pangasinan

    • d. Tarlac

    • e. Maguindanao

    • f. Bulacan

    • g. Metro Manila

    • h. North Cotabato

    • i. Oriental Mindoro

    • j. Ilocos Norte

  • 3.

    Completed

    the

    geohazard

    assessment

    and

    municipalities, with a scale of 1:50,000.

    mapping

    of

    all

    the

    1,634

    cities

    and

    • 4. Distributed a total of 75,000 map sheets to all local government units down to the barangay

    level, with corresponding training and capability-building to interpret the maps.

    • 5. Started the preparation of more detailed geohazard maps in 2011, with scale of 1:10,000,

    initially targeting 218 municipalities.

    RECLAMATION

    Accomplished Reclamation Projects

    Manila Bay:

    Bay City Reclamation Project (formerly Boulevard 2000)

    This project, located in the Cities of Pasay and Parañaque, is composed of the following island

    reclamation:

        Central Business Park I-A Central Business Park I- B & C Central
    Central Business Park I-A
    Central Business Park I- B & C
    Central Business Park II
    Asia World

    Central Business Park I - A (CBP I-A)

    CBP I-A covers an area of 200 hectares. It is entirely located in the City of Pasay, contributing more than 10% to the city‟s former land area of 1,900 hectares. The major land owners are the SM Group,

    the Metrobank Group of Companies, and the PRA.

    The Shrine of Jesus is the first landmark built in the area. Across it is the Mall of Asia which was opened in May 2006. The mall, one of the largest in Asia, spans a floor area of 386,000 square meters. With SM by the Bay, the Mall of Asia complex is possibly the largest single attraction in the entire metropolis. It has daily visitors reaching 100,000 and it employs more than 6,000 Pasay City residents. CBP I-A is also home to Mall of Asia Arena, an ultra-modern events venue with a full- house capacity of 20,000 and facilities of NBA standard.

    The Metropolitan Park, owned by the Metrobank Group of Companies, is the home of Manila Tytana Colleges (formerly Manila Doctors College), Toyota Manila Bay Corp., Le Pavilion, Metrobank Branch, Bay Garden Condominiums, Petron Gas Station and Blue Wave, a complex of restaurants and commercial establishments.

    A prominent part of CBP I-A is an esplanade adjacent to SM by the Bay. It is the new preferred recreation area for the public where people can freely access a view of the sea and of the famous Manila Bay sunset.

    Central Business Park I - B & C

    A joint venture of PRA and R-1 Consortium, CBP B & C cover 210 hectares of reclaimed land. Bordered on the north by the Redemptorist Channel and Mall of Asia Arena in CBP I-A, and in the south by the Seaside Channel CBP-II and the Manila Bay Town Subdivision, the project stretches

    across the shoreline of Manila Bay with approximately 1.2 kilometers offshore with an approximate perpendicular distance of 1.5 kms.

    Part of CBP B & C is PAGCOR‟s Entertainment City where Solaire Resort & Casino stands. Opened in March 2013, Solaire Resort & Casino provided 4,600 managerial and entry-level jobs for Filipinos.

    Currently, CBP B & C is fast-becoming the new central business district of the City of Parañaque.

    Central Business Park II

    Entirely owned by Manila Bay Development Corporation, the 43-hectare area is home to Uniwide

    Coastal Mall and Metro Manila Development Authority‟s Southwest Integrated Provincial Transport

    Terminal . The bus terminal operates 24-hours a day and dispatches 900 buses that serve approximately 54,000 passengers every day.(http://www.president.gov.ph/news/aquino-inspects-major-terminals- in-metro-manila/) It is part of a centralized, intermodal and integrated bus terminal system which aims to improve the mobility of people and the traffic situation within the road networks of Metro Manila.

    Asia World

    This 173-hectare property, owned by the Tan Yu family is now a residential complex with

    infrastructure facilities already in place.

    Reclamation projects in the pipeline

    Las Piñas - Parañaque Coastal Bay Project

    The Las Piñas - Parañaque Coastal Bay Project involves the reclamation of shallow portions of Manila Bay in the southwest of Manila. Las Piñas City has 431.71 hectares under its jurisdiction while Parañaque City has 203.43 hectares. This 635.14 hectare project is intended to be a government center, residential, industrial, educational, and commercial zone. It is bounded by Asia World Properties in the North, and the Municipality of Bacoor, Cavite in the South.

    Mactan North Reclamation and Development Project

    The Mactan North Reclamation and Development Project is being undertaken by the City of Lapu-Lapu by virtue of the Memorandum of Agreement between the City and PRA. Covering 400 hectares of foreshore and offshore areas in Mactan Bay, the project aims to integrate industrial, commercial, residential and tourism development . PRA will have a land share of 20 hectares while Lapu-Lapu City will own 380 hectares.

    Aklan Beach Zone Restoration and Protection Marina Development Project

    A beach stabilization and sea level rise adaptation strategy, the seafront development started life as an answer to the unabated coastal erosion. It is a 2.6 hectare project located at Caticlan, Malay, Aklan. The reclaimed land is envisioned to become tourist related sites that will complement the nearby island of Boracay.

    BREDCO

    A joint undertaking of PRA, Bacolod Real Estate Development Corp., and the City of Bacolod, the

    project is a 108-hectare reclamation area located in the City of Bacolod for commercial and industrial uses.

    The land development in the vicinity of the project includes mixed industrial, institutional, residential and commercial areas. The major thoroughfares of the project can accommodate both vehicular and pedestrian traffic ranging from light to heavy loads. Locators within the reclamation area include SM City Bacolod, Shell Service Station, SeaOil and Phoenix Oil Depot, San Sebastian College, Trans Asia Shipping Lines, Inc., Sulpicio Lines, Inc., a hotel and a condominium among others.

    Coron

    The project, located along the foreshore and offshore areas of Coron Bay in Barangays Poblacion and Tagumpay in the Municipality of Coron, Palawan, is envisioned to become a world-class “tourism estate”. Out of the total 50 hectare project area, about 9.7 hectares has been reclaimed and developed. Among the amenities already established in the area include the three-storey Coron Gateway Hotel, Tourism Office and Park Administration Building, Barangay Hall, two-storey Restolane Buildings and other support facilities and utilities.

    Mabini

    In partnership with SeaOil and Mabini Terminal Development, Inc., the 8.5 hectare reclamation project in the Municipality of Mabini, Batangas is intended for mixed commercial and industrial use.

    PROFESSION/PRACTICE/ REAL ESTATE ORGANIZATIONS

    AREAA - Founded in

    2003, the Asian Real Estate Association of

    America (AREAA) is a

    nonprofit trade organization dedicated to promoting homeownership within the Asian American and Pacific Islander (AAPI) community.

    • - over 15,000 members in 35 chapters across the US and Canada, AREAA is the largest Asian organization in North America

    NAR - National Association of REALTORS®, “The Voice for Real Estate,” is America‟s largest trade association, representing 1 million members, including NAR‟s institutes, societies and councils, involved in all aspects of the residential and commercial real estate industries.

    Membership is composed of residential and commercial REALTORS®, who are brokers, salespeople, property managers, appraisers, counselors and others engaged in all aspects of the real estate industry. Members belong to one or more of some 1,400 local associations/boards and 54 state and territory associations of REALTORS®, or to one of 81 cooperating associations in nearly 60 countrieS

    OTHERS
    OTHERS

    ASEAN MEMBER STATES

    • 1. Brunei Darussalam

    6.

    Myanmar

    • 2. Cambodia

    7.

    Philippines

    • 3. Indonesia

    8.

    Singapore

    • 4. Lao PDR

    9.

    Thailand

    • 5. Malaysia

    10. Viet Nam

    NorthSouth Railway Project South Line

    The Government of Philippines‟ (GoP) NSRP South Line aims to deliver a reliable, safe, and

    environment-friendly transport service to currently underserved areas in southern Luzon and encourage more productive activities. The Project is comprised of two components:

    • 1. Long-Haul Passenger Rail Operations

    from Manila to Legaspi City in the Bicol Region, with extensions to Batangas City and Matnog in Sorsogon (478km main line, with 175km for extensions)

    • 2. Commuter Rail Operations

    from Manila to Calamba City in Laguna (56km)

    THE CLARK GREEN CITY

    Building a „Green City‟ at the 36,000 hectare portion of the Clark Special Economic Zone in Pampanga will approximately cost P200 billion. The green metropolis would be a mix of industrial, institutional and commercial areas, which would apply green technologies by adapting a Green Building System. Renewable energy from sustaining sources will be used by all facilities and buildings in Clark Green City that is half the size of Metro Manila.

    • 9 TRENDING LOCAL CITIES THIS YEAR

    By: Tessa R. Salazar

    @inquirerdotnet Philippine Daily Inquirer 12:50 AM January 23rd, 2016

    Property analysts and experts forecast that developers will continue to pursue township developments in and outside Metro Manila in 2016. Now, where could these, and other types of developments be? Here are the nine likeliest urban locations:

    • 1 Cavite. Colliers International Philippines cites three reasons Cavite is on developers‟ maps:

    Cavite has been known as a suburban support area to Metro Manila. With its relatively cheaper housing costs, Cavite has drawn within its boundaries hundreds of thousands, who still commute daily to their workplaces within Metro Manila.

    Numerous infrastructure projects recently launched will allow Cavite to flourish. The LRT-1 extension project will end in Bacoor; the government has now started the bid for LRT-6 which will further extend the LRT line from Bacoor to Dasmariñas City. Furthermore, the 44-kilometer Cavite-Laguna Expressway (Calax) project will provide necessary access to growth areas in Cavite.

    With the completion of the Muntinlupa-Cavite Expressway (MCX), a toll road which connects the South Luzon Expressway (SLEx) to Daang Hari, property values in the area are foreseen to escalate rapidly. The new toll road will spur rapid development in emerging master-planned communities such as Vista Land‟s Vista City and Ayala Land‟s Vermosa Estate, which have the potential to establish themselves as full-blown central business districts (CBDs).

    Property portal Lamudi Philippines, in its 2016 top cities list, shares eight more locations that will benefit from real estate investments.

    • 2 Quezon City. The population of Metro Manila‟s largest city is projected to grow to more than 3.5 million by 2020, with many looking into relocating there. Quezon City properties are relatively more affordable compared to Makati and Taguig, and offers plenty of options to homebuyers.

    3

    Makati. The country‟s foremost financial and business district won‟t be outdone, even if the

    average rental rate in its CBD is expected to decrease 3.39 percent year-on-year by the third quarter

    of 2016, vacancies to increase to 10.19 percent across all condo grades. Fringe areas, however, are starting to see an uptick in real estate activity, particularly Barangay San Antonio, near Ayala Avenue. “Worsening traffic conditions in Metro Manila are making these areas attractive to renters and homebuyers,” said Lamudi.

    • 4 Taguig. “Taguig‟s population is projected to reach almost one million by 2020, which will make it

    the National Capital Region‟s fourth more populous (after Quezon City, Caloocan and Manila) and the country‟s 9th. The city‟s real estate sector has been on an upswing ever since Fort Bonifacio was privatized,” noted Lamudi. It added that several projects now are underway: Megaworld‟s McKinley West and Ayala Land‟s Arca South. Access to and from the airport (particularly Terminals 1 and 2) and to Coastal Road will also improve when the flyover connecting CP Garcia Avenue to the Moonwalk Access Road and West Service Road is finally completed.

    • 5 Pasay. This city is gaining prominence because of: 1) Bay Citythe reclamation area along

    Manila Bay housing the Mall of Asia Complex, Entertainment Cityand Aseana City; 2) The SM group has already incorporated office and residential components in the MOA complex; 3) Federal Land is set to complete its Six Senses Residences in 2016 and its first tower in the Palm Beach project in 2017; 4) Improved infrastructure when the Naia Expressway connecting the Metro Manila Skyway to the Manila-Cavite Expressway and Entertainment City, is finally completed.

    • 6 Bacolod. In mid-2015, Lamudi data showed that Bacolod had become among the most popular

    cities among online property hunters. In fact, real estate giant Megaworld announced in late 2015 that it was building two integrated townships in the city (the 50-hectare Northill Gateway and the 34-hectare The Upper East), while Ayala Land has sealed an agreement with the provincial government of Negros Occidental to build the mixed-use Capitol Central.

    • 7 Davao. Davao remains southern Philippines‟ economic and business center, and one of the most

    searched cities in the Lamudi website in 2015. Its population is projected to balloon to 1.83 million

    by 2020. Davao is also consistently among the most searched by online property hunters, and the sixth and third most searched city by property hunters based in the United States and Saudi Arabia, respectively, according to Lamudi data.

    • 8 Cebu. Cebu City is one of Tholons‟ top 10 outsourcing destinations in the world (and second in

    the Philippines behind Metro Manila). According to CB Richard Ellis Philippines, exciting expansions and new developments are coming in over the next few years. In 2015 alone, two new large malls opened in the city, SM Seaside City Cebu and Robinsons Galleria Cebu. SM Seaside alone has an

    area of 10-15 hectares devoted to commercial development, similar to the E-com office towers in the MOA complex, while Robinsons Galleria will have entire floors dedicated to BPO offices.

    9. Muntinlupa. The south of Metro Manila, specifically Muntinlupa, is also projected to perform well this year, with the launch of several high-profile projects from the country‟s biggest developers, one of which is Avida‟s South Park District, a mixed-use development sitting on the former Nestlé plant in Alabang, in addition to the established Filinvest and Madrigal business districts. Further, in anticipation of infrastructure projects expected to ease travel to the south, property developers, including Rockwell subsidiary Rockwell Primaries, and Vista Land are now eyeing Muntinlupa as their next focus area.

    Source : http://business.inquirer.net ________________________________________________________________________________________

    HLURB 2014 ANNUAL REPORT
    HLURB 2014 ANNUAL REPORT

    GOD BLESS and GOOD LUCK TO YOU ALL !