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

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

Supplemental Notes for REBLEX 2016 ATM | 1

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.
.
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 turnkey 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.
.
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
Supplemental Notes for REBLEX 2016 ATM | 2

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

Source : POEA

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

Visitor Markets, January to December 2015. Korea still continued to be the biggest visitorgenerating 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.
Supplemental Notes for REBLEX 2016 ATM | 4

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

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 mapping of all the 1,634 cities and
municipalities, with a scale of 1:50,000.
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.

Supplemental Notes for REBLEX 2016 ATM | 6

RECLAMATION
Accomplished Reclamation Projects
Manila Bay:
Bay City Reclamation Project (formerly Boulevard 2000)
This project, located in the Cities of Pasay and Paraaque, is composed of the following island
reclamation:
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 citys 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 fullhouse 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
Supplemental Notes for REBLEX 2016 ATM | 7

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 PAGCORs 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 Paraaque.
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 Authoritys 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-terminalsin-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 Pias - Paraaque Coastal Bay Project
The Las Pias - Paraaque Coastal Bay Project involves the reclamation of shallow portions of
Manila Bay in the southwest of Manila. Las Pias City has 431.71 hectares under its jurisdiction
while Paraaque 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.

Supplemental Notes for REBLEX 2016 ATM | 8

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 Americas largest
trade association, representing 1 million members, including NARs 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
ASEAN MEMBER STATES
1.
2.
3.
4.
5.

Brunei Darussalam
Cambodia
Indonesia
Lao PDR
Malaysia

6.
7.
8.
9.
10.

Myanmar
Philippines
Singapore
Thailand
Viet Nam

Supplemental Notes for REBLEX 2016 ATM | 9

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 Dasmarias 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 Lands Vista City and Ayala Lands 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 Manilas 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.
Supplemental Notes for REBLEX 2016 ATM | 10

3 Makati. The countrys foremost financial and business district wont 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. Taguigs population is projected to reach almost one million by 2020, which will make it
the National Capital Regions fourth more populous (after Quezon City, Caloocan and Manila) and
the countrys 9th. The citys real estate sector has been on an upswing ever since Fort Bonifacio was
privatized, noted Lamudi. It added that several projects now are underway: Megaworlds McKinley
West and Ayala Lands 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 countrys biggest developers, one
of which is Avidas South Park District, a mixed-use development sitting on the former Nestl 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
________________________________________________________________________________________

Supplemental Notes for REBLEX 2016 ATM | 11

HLURB 2014 ANNUAL REPORT

GOD BLESS and GOOD LUCK TO YOU ALL !

Supplemental Notes for REBLEX 2016 ATM | 12