Republic of the Philippines DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS PRE-QUALIFICATION BIDS AND AWARDS COMMITTEE SPECIAL BID BULLETIN NO. 24 -2013 Subject: MACTAN-CEBU INTERNATIONAL AIRPORT NEW PASSENGER TERMINAL PROJECT. TO ALL BIDDERS: Please find attached the proposed Duty Free Philippines Corporation (DFPC) Lease Terms. These terms are merely indicative. Any final agreement between DFPC and the Concessionaire will be subject to the parties arriving at mutually acceptable terms and conditions. For your guidance and information. Issued this 11" day of November 2013. oOXe ATTY! PERPETUO M. LOTILLA Undersetretary for Legal Affairs Chairman, Pre-Qualification Bids and Awards Comm ‘THE COLUMBIA TOWER TELEFAK (632) 7123-49-25 BRGY. WACK-WACK, ORTIGAS AVENUE. ‘TRUNKLINE (632) 727-79-60 TO 79 41555 MANDALUYONG CITY, PHILIPPINES OTC ACTION CENTER HOTLINE: 7890 PML |3- 6040In the Service of Philippine Tourism nore 16 October 2013 ) HON. RENE K. LIMCAOCO Undersecretary for Planning & Development ev Department of Transportation & Communication Re : PROPOSED LEASE TERMS Mactan Airport PPP Project Dear Usec. Limcaoco: DFPC fully supports the DOTC in the Mactan Airport PPP Project. DFPC has always envisioned to operating in an intemational airport environment competitive with our neighboring Asian countries. We are extending our full cooperation to support this endeavor. Based on our meeting yesterday, the DOTC, DOF, DOT and DFPC acknowledged that the inclusion of the duty free operations cannot form part of the bidding for the airport operations of the Mactan International Airport and the franchising option cannot be implemented at this time for lack of legal basis as stated in the OGCC Opinion No. 214 seties of 2013. Therefore, in the exercise of DFPC’s exclusive authority as per RA 959 to ‘operate duty free shops, please find below the proposed lease terms for the operation by DFPC of duty free shops at the Mactan International Airport. We have taken into account discussions and inputs made in yesterday's meeting, a) Term of Lease: Coterminous with the Concession Agreement of the winning bidder for the operation of the Mactan International Airport b) Leased Area: Must have the largest prime retall space allocation for single tenant at the departure and arrival areas (airside) with a floor area of no less than 1,000 square meters Adjaceney requirements of the brand consistent with global standards for travel retail must be maintained. Image requirements have to be preserved within the vicinity of duty free shops. Duty free shops should be strategically located within the natural flow of arriving and departing passenger traffic. ‘FiestaMall, EHA Building, Ninoy Aquino Avenue, Paratiaque City, Philippines 1 “Tel. Nos. (463)2 879-3559 = 52-4352 » 554-4353 + 554-4354 + Fax No. (+63)2 552-4301 ‘Website: haps/vww.dp.com-ph DUTY FREE PHILIPPINES CORPORATIONd) Concession Fees (CPF): ¢) Fixed monthly rent ‘Common Area Expenses ) Reporting of Sales: ‘A separate area of at least 500 square meters intended for, offices and warehouse should be provided. Depending on the allocated space and based on the international passenger traffic, DFPC shall carry and sell the following duty and tax free merchandise, among others: + Confectionery & Snacks + Wines & Spirits + Perfumes & Cosmetics Fashion including eyewear, watches, jewelry + Cigarettes & tobacco + Toys + Electronics/Gadgets + Travel accessories + Local foods We propose @ graduated CPF scheme based on international passenger traffic of the airport as follows: 15% on gross sales for total international passenger traffic of less than 2.5 million annually 40% on gross sales for total international passenger traffic of 2.5 million to 5.5 million annually 415% on gross sales for total international passenger traffic of more than 5.5 million annually Based on standard commercial rates applied to all tenants/concessionaires of the Mactan International Airport DFPC shall maintain its own POS system to which the lessor may access the sales data requiredAll other provisions of the lease agreement with the winning bidder not covered above shall be based on standard, uniform rates applied to all tenants/concessionaires of the Mactan International Airport. We trust that everything is now in order and look forward to the success of this project. truly yours, Copy Furnish: Hon. Ramon R. Jimenez Jr. Secretary, Department of Tourism Hon, Carlo A. Carag Undersecretary, Depariment of Finance Hon. John Phillip P. Sevilla Undersecretary, Department of Finance Hon. Cosette V. Canilao Executive Director, Public-Private Partnership Center Atty. Romulo R. Mahor Chief, Customs Duty Free Division Atty. Eugene Kaw. Assistant Secretary, Department of Tourism