TABLE OF CONTENTS TABLE OF CONTENTS... LUST OF TABLES. UST OF EXHIBITS on ae = UST OF SCHEDULES = |. PROJECT SUMMARY. ‘A. BREF DESCRIPTION OF THE PROMET «nu 11, PROJECT TIMETABLE AND STATUS .. Il, MANAGEMENT ASPECT... A. ManaceMen DURING THE PSU POROD. BL MANAGEMENT DURING THE PHYSICAL DEVELOPMENT PEND... (C ManaeMenr DURING THE SALES AND COLLECTIONS FERICO, 1V. AREA TO BE SERVED.. 'A. Genenat Descuion 3B. NATURAL FEATURES... C Poruuanion.. Ansa ofvE.ooMeNT. F. ESTABUSAMENT OF FAOLTIS. . G. Powren no WATER SYSTEMS ANDSUPRLY. HL SUBDIMSION MAINTENANCE ences VIL TAK ASPECT... ALTARS AFFECING THE PROC enn 1B. Tawes Reiareo To Coamarssions OF REALESTATE BROKER aa CL FNANCIAL ANALYSES eens sit X. SOCAL DESIRABILITY OF THE PROJECT...» /A.REVENUESTO GOVERNMENT AND UTILTY COMPANIES. 8. Eunovuenr CREATED INOUSTIES XI, REFERENCES. ooo Feasibility Study ~ Eagle Ridge Residences Page | iiLIST OF TABLES ‘Table 1. Distance of Tandag City from Other Cities and Points of interests in Caraga Ré Table 2. Population and Average Population Growth Rates, 1995-2025. Table 3. Population, Population Growth Rate in Province, City, and Barangays, 2000-2015 ......10 Table 4, Projected Population, 2017-2026... Table 5. CBR, COR, CRNI in Surigao de! Sur, Table 6. Household Population 10 years old and over by Marital Status, Surigao del Sur, 2010..12 ‘Table 7. Projected Population by Age Group, Surigao del Sur, 2017-2026. a 12 Table 8. Family Income and Expenditure, Surigao del Sur (at December 2008 priceS...crnnvnn-13 ‘Table 9. Distribution of Families by Income Class, by Main Source of income, 2012 sl Table 10. Percent Distribution of Employed Persons by Sex, by Region and Major Industry Group, January 2016. 14 Table 11. Percent Disubution of Employed Persons by Sex and alee Cooper, faneary 2016. 7 arty Table 12, Residential Bulding Construction, Surigoo del Sur, 2013-2016... soon Table 13. Subdivision and housing projects in Tandag City... Table 24, indicative Prices of High-End Subdivision House & Lot Packages. Table 15. Lot Classification and Sales Price Table 16. Expected Annual Volume of Sales. Table 17. Distribution and Percent Share of Areas. 39 Table 18. Physical Development Schedule 40 Table 19. Sources and Uses of Funds. Table 20. Computation of Profit BEP volume and sales Table 21. Cash BEP Volume and Sales. F Table 22. Capital, Recovery, and Earnings Financial Ratios LIST OF FIGURES Figure 1. Organizational Structure — Planning Period... 3 Figure 2. Organization Chart ~ Physical Development Period, 4 Figure 3. Organizational Structure — Sales and Collection Period 5 Figure 4. Location Map . - 6 Figure 5. Map of Surgno del Sur Province 6 Figure 6. Location of Tandag City in the Caraga Region 7 Figure 7. Topography of Surigao del Sur... 8 Figure 8. Infrastructure Support Map, Surigao del Sur & Caraga Region. conned Figure 9. Tourism Destinations Map, Surigao del Sur & Caraga Region. . eT Figure 10. Existing Land Uses, Tandag City. i 7 19 Figure 11. Google Map, Tandag city. 20 Figure 12. Projected Distrbuton of Sales by Market Segment. es 31 Figure 13. Location of Project Site and Barangays of Tandag City ... 32 Figure 14. Project Location and Vicinity Map 35 Feasibility Study ~ Eagle Ridge Residences Page | iiiBB EERE SB SS RS RS RS RE RE RRR BER ER RE LIST OF PLATES Plate 1. Entrance Gate and main road, from project site towards coastal road (West to east) Plate 2. Looking from north to south showing adjacent SDSSU buildings Plate 3. Perimeter fence and temporary shed on the northern side of the project site Plate 4. The western portion of the property showing coconut trees in adjoining lots LIST OF EXHIBITS Exhibit 1. Projected Income Statements Exhibit 2. Projected Cash Flow Statements Exhibit 3, Projected Balance Sheets. LIST OF SCHEDULES Schedule 1. Projected Yearly Sales, Receivables, and Collections. Schedule 2. Reservation Fees... ‘ Schedule 3. Cost of Sales and Inventoties sane Schedule 4. Salaries, Wages, and Benefits ‘Schedule 5. Office Equipment and Depreciation Expense ‘Schedule 6. Pre-Operating Costs and Amortization. ‘Schedule 7. Interest income, Receivables, end Collections. ‘Schedule 8. Income Tax Expense, Payables, and Payments... 36 37 7 38 51 Feasibility Study - Eagle Ridge Residences Page | veB ESE SS SSE SBS RE RRB RE REE. |. Project Summary A. Brief description of the project The proposed EAGLE RIDGE RESIDENCES subdivision Project Is located in a 57,727 square meters area lot at Barangay Rosario, Tandag City. The owner/developer, Pepperidge Corporation, intends to develop this Project into a residential subdivision selling 113 lots with one year duration of development. The objective is to offer a secure, accessible, and modern community just five minutes from the urban core and near the beach and other prime tourist spots. The Project will be provided with an effective and efficient drainage and sewage system, concrete major road, asphalt minor roads, light and water, a Clubhouse ina Reighborhood community center, an open space for park and playground with recreational facilities. The target markets are Overseas Filipinos, Overseas Contract Workers, ex-patriates with Filipino families, and middle to high-income professional and businessmen in Tandag City and the nearby cities and municipalities. The marketing program involves development of a website, dissemination of printed materials, TV and radio advertising, Malling, visitations, product presentations and distribution of promotional items. This subdivision will be wholly managed by the Pepperidge Corporation through its staff and contracted real estate brokers in its day-to-day transactions. Implementation of the project will generate employment and revenues to local ‘government and utility organizations. As with any project leading to the development of housing units, the project will have a multiplier effect of 16.6 in terms of industry forward and backward linkages. Selected financial ratios such as Return on Investment (23.6%), Net Profit Margin (21- 26% per year), positive Net Present Value, and Internal Rate of Return (57.78%) indicate that the project is profitable. In conclusion, the results of the marketing, technical, and management studies, the ‘socio-economic benefits to be derived by the community from the project, and its profitability indicate that the project is viable and feasible.Il. Project Timetable and Status General project planning, land surveys, preparation of specifications , project studies and permitting activities will be executed during the one-year pre-implementation phase. The project implementation phase covers five years and indudes physical development, sales promotion, sales operations, sales collection, and maintenance activities after which only maintenance staff and works will remain, The Gantt Chart below shows the project timetable. ‘etvity Project Study, Planning & Design \Permits & Licenses Physical Development [Sales Promotion Sales Operation sales colecton| [Maintenance Yeor2 | Yeor3 | vears | Years Activities in the pre-Implementation phase have lergely been completed and the permitting activities have already started. An Environmental Compliance Certificate (ECC) has already been secured. The next steps include securing the PALC and Development Permit from the City Government of Tandag followed by apliication for registration and License to Sell with the Housing and Land Use Regulatory BoardIll. Management Aspect. A. Management during the planning period Activities of the Eagle Ridge Residence during the planning period will be accomplished by Pepperidge Corporation Executive Committee with technical assistance from professional service contractors and oversight from its Board of Directors, the corporation’s highest policy-making body. Surveying works shall be contracted to a Licensed Geodetic Engineer while preliminary engineering and architectural designs shall be contracted to a Licensed Civil Engineer and an Architect. The site development plan will be evaluated by a Registered Environmental Planner. Conduct and preparation of the project feasibility study, Environmental impact Assessment, and preparation of documents for obtaining the Preliminary Approval and Locational Clearance (PALC), Development Permit, HLURB Registration and License to Sell has been contracted to Mallonga Consulting Services, Inc. a Butuan City-based privately owned, single proprietorship, independent consulting firm with broad experience in conducting project feasibility studies, environmental impact assessments, and preparing plans and documents for various types of endeavors. Organizational structure during this period is as follows: Figure 1. Organizational Structure — Planning Period Board of Directors jmnPRACTONS) B. Management during the physical development period ‘Management during the Physical Development period is the responsibility of General Manager hired for the project. Day-to-day activities shall be managed by the General Manager with assistance from his staff consisting of a Bookkeeper/Clerk and an Administrative assistant/Cashier. The contractual Project Engineer who will exercise direct supervision over development works to be undertaken by Contractors. The Project Engineer shall be under the direct supervision of the General Manager. Hiring of construction Personnel, procurement of equipment and materials, and direct supervision of engineering works shall be the responsibility of Contractors.EECrcr — ~ Other than personnel for physical development, janitorial and security personnel shall ‘be contracted from employment agencies. There will be two utility workers hired to accomplish cleaning and maintenance works in the subdivision office and around the Project area. Two security guards per 12-hour shift shall also be contracted from security agencies. ‘The organizational chart for the physical development period is as follows: Figure 2. Organization Chart ~ Physical Development Period | Board of Directors Executive Committee T . | General Manager ] Bookkeeper/ Clerk 1 a Asst / Cashier ‘C. Management during the sales and collections period Management activities during this period covers (1) sales promotion, (2) sales operations, and (3) sales collection activities, Management during period is undertaken by the same core organization of the Eagle Ridge Residences consisting of the General Manager who report to the Executive Committee which is in turn, overseen by the Pepperidge Corporation Board of Directors. Day-to-day activities shall be managed by the General Manager with assistance from his staff consisting of a Bookkeeper/Clerk and an Administrative assistant/Cashier. A Ucensed Real Estate Broker shall be hired by Pepperidge Corporation as a Sales Manager on 2 commission basis to supervise the sales promotion and sales ‘operations of the project. The Seles Manager shall handle the recruitment, ‘management and motivation of the sales force and manage Pepperidge Corporation’s relationship with the Eagle Ridge Residences seles force consisting of licensed Real Estate Brokers (called Agency Managers) and their respective PRC-accredited Real Estate salespersons. The Sales Manager shall exercise direct supervision only of the Agency Managers who shall be independent contractors and not employees of Pepperidge Corporation or itsee ee ee ee Projects. Agency Managers are solely responsible for the recruitment, management and motivation of their sales force consisting of PRC-accredited real estate salespersons. Organization structure during the sales and collection period is presented in Figure 3. Figure 3. Organizational Structure — Sales and Collection Period Board of Directors Executive Committee General Manager ‘Admin. Asst./ Cashier Security Guards (4)IV. Area to be Served A. General Description Figure 4. Location Map ‘The Province of Surigao del Sur is located in the Northeastern coast of Mindanao facing the Pacific Ocean between 125°40' to 126°20' East 5 Longitudes and 7°55’ and 9*20' North Latitudes. Itis one of the five provinces comprising Region 13 Caraga. It is bounded on the Northwest by the Province of Surigao del Norte, on the Southeast by Davao Oriental, on its Eastern side by the Pacific Ocean, and on the West and é Southwest by the Provinces of Agusan del Norte | See] and Agusan del Sur. (Figure 4. Location of s Surigao del Sur). Surigao del Sur has a total area of 493,270 hectares or 4,932.70 sq.km (NSDB, as of 2007}, aaa. BE) The province stretches 300 ken from its northernmost point at Carrascal to its southernmost point at Lingig and is SOkm at its widest stretch from Cagwait to San Miguel. Figure 5. Map of Surigao del Sur Province Surigao del Sur has two cities, Bisig = [——umeacary > and Tandag, and 17 municipalities. Tandag City is the capital of the Province as indicated on the map on the left (Figure 5. Map of the Province of Surigao del Sur). The Proposed development is located in Barangay Rosario, Tandag City. ‘mounan 5uN0 ‘OFPmmUreIs Tandag City has an area of 291.73 ‘sq.km. and is located along the coast of ‘Surigao del Sur facing the Philippine Sea. It is bounded on the north by the municipalities of Cortes and Lanuza, on the east by the Philippine Sea, on the south by the towns of Tago and San Miguel, and on the west by the province of Agusan del Sur. It is located 448 nautical miles from Manila and 150 nautical miles from Cebu. The distance from‘Surigao City in the north to Tandag is about 200 kilometers. Tandag is 331 kilometers ‘away from Davao City in the south. The city consists of twenty-one barangays, four of which are classified urban - Bagong Lunsod, Bongtod, Dagocdoc, and Telaje - while the rest are rural. (NSDB: Urban-rural classification based on 2000 CPH, Report No. 4 Urban Population, National Statistics Office, June 2006). Table 1 and Figure 3 below indicate the location of Tandag City in relation to primary Cities and points of interest in the Caraga Region. Table 1. Distance of Tandag City from Other Cities ond Points of Interests in Caraga Region [traveling distanceto | Traveling Timeto —] Municipal Tandag City _Tandag City = Basie Cry 353 km 1hr58 min = Surigao ity 369 km 2s 43 min | | Bayugan Cty 137 km dhrsimn | Butuan Cy 176 km 2 bes 36 min | Cabacbaran Cty 395 km 2s 34 min Government Center, Prosperidad | 124 km ihr 38 min Enchanted River, Hinatuan 144 km br 51 mine britania Islands, San Agustin 72km hr Source: www. distoncesfiom.com Figure 6. Location of Tandag City in the Caraga Region Google Maps8. Natural features Much of the province of Surigao del Sur is hilly while approximately one-sixth of it is ‘mountainous with the highest peak at Mount Diwata (553 m). A little over one-fifth Of the province constitute of low-lying areas, mostly near the coast. On the other hand, the northwestern and southwestern portions of Tandag City are mountainous and rugged and the eastern portions, facing the Pacific Ocean, are coastal flatlands or lowlands. (Figure 4. Topography of Surigao del Sur). Figure 7. Topography of Surigao del Sur Source: http://www. maphill.com/phiippines/region-14/surigao-de-su1/3G- ‘maps/physical-map/ The proposed Eagle Ridge project is located in an area of natural beauty in the coastal Barangay Rosario, a village approximately 5 minutes from the Central Business Districtof Tandag, The barangay links directly to the main route between Tandag and the municipalities in Surigao del Sur. Surigao del Sur has a tropical climate described as Type ll under the Modified Coronas Classification. This type of climate has no dry season with a very pronounced maximum rain period from December to February. There is not a single dry month. Minimum monthly rainfall occurs during the period from March to May. Throughout the year, particularly during the dry season, the northeast trade winds prevail in Surigao del Sur while monsoon or strong winds arise during the rainy season. The climate in Tandag City mirrors that of Surigao del Sur. C. Population 1. Past and expected future population Surigao del Sur had a population of 592,250 in 2015, 561,219 in 2010, 501,808 in 2000 and thus average annual growth rate (AAGR) was higher in 1995-2000 (1.26%) and 2000-2010 (1.13%) compared to 1.08% from 2010 to 2015. Except for Bislig City and the municipality of Lingig, Tandag City and most of the ‘municipalities have increasing populations. (Table 2: Population and Average Population Growth Rates, 1995-2015). Table 2. Population and Average Population Growth Rates, 1995-2015 "AAGR | AAGR | AAGR ty/ | Population | Population | Popuiation | Population | 2010- | 2000. | 3995. Municipality | 2015 | 2010 _| 2000 | 1995 | 2015 | 2010 | 2000 Surigao del Sur | $92,250 | 561,219 | sonsoe | 71203 108] 143 126 Barobo | 48,730 | 43.563 [aa ssa | a2.226| 264] 237] 2ar] Bayaboe ei6e | _7,779 os | _ 623 | 097 | 009] 371 ‘Bislig Gty 34.535 | 96,578 | 97,860 | 303,560 | 0.43) | (0.43) | his} Cagwait_ | 20,388 [18,899 | 18577 | 7.001] 1521 017] 179 Canton a14oz| 30.231 25,077| 24961] oe] 1.89] 0.83 Carmen. 10,347 10,287 9551 ~8248| 012] 075] 298 Garrascal 22479 | 16,523] 13,157 | 32018] 634] 231] 183, Cones [~1s12 | as,sai | —a4925 | 33,054] 047 | 047 | 258 inatuan seeuz| 38,731 | 36.170] 38602] 057] oes] 0.09 Lanza 12001 [13857] 10057 | 83 | 024| 1.66] 261 tanga 29.493 [28.905 | 95,018 | 35,005 | 040} 246] 0.01 [Lingle 34485 | 31,540 26,487 | 93,477 | (0.04) | 176 | 74a Madeid 1522 | 14888 | 14,065| 12,992] 045 | 057] 1.60 Marinara iasis | 17.926 | 16,308 | 13,254 | 0.65 | 0.90 Son Agustin 22,73 | 20.655 | 14,805 | 13,768 198] 336] 157, San Miguel 39.380 | 36.287 | 97,883 | 24,006 | 1.63 | 267] 3.08 Tepbine seas2 [3412 | 34057] 32295| 271 022] 107 Toes 3529 | 33,993 | 29,721 | 27,100] 077] 135] 186] Tandog Gy so3ea| Santa] easz7 | a0,222] 158] 1.63] 248 Source: PSA; Computations by MCS Bisligis the home of the defunct company PICOP Resources, Inc. (PRI, or previously known as the Paper Industries Corporation of the Philippines), which was the largest paper mill in Asia and one of the largest in the world. With the permanent shutdown officially ruled in mid-2008, thousands of people lost their jobs as wellSs — as smalll businesses dependent on the PICOP employees and their families. The loss of job and business opportunities and the resulting outmigration is probably the most important reason why Bislig City’s population continues to decline. On the other hand, while Lingig’s population steadily increased from 1995 to 2010, the population growth rate has been declining and by 2015, the population has declined such that this has resulted to a negative growth rate. Carrascal has shown significant increase in its population between 2010 and 2015 as shown by its AAGR of 6.34% most probably due to the influx of people availing, of employment and secondarily, business opportunities brought about by the ‘mining operations of CTP Mining Corporation and Carrascal Nickel Corporation in the municipality. Tandag City has higher AAGR than the province for both periods at 1.58% in 2010- 2015 and 1.63% in 2000-2010. Population growth, however, seems to be slowing down for both province and city. Nevertheless, the barangay where the proposed subdivision is to be located, Rosario, is enjoying high population growth rates. (Table 3: Population, Population Growth Rate in Province, City, and Barangays, 2000-2015). Table 3. Population, Population Growth Rate in Province, City, and Barangays, 2000- 2015 ‘Average Annual Growth Population Rate (6) Province/City/Barangay | 2015 [2010 2000 | 2010-2015 | 2000-2010 Province of Surigao del Sur 592,250 | $61,219 | 501,808 1.08 13 Gity of Tondo 56,364| 53114 44,327 1.58 1.63 | ‘Awasian 1427 1510 1190 [(1.) Bar Bagong Lungiod [Pob,) 5493 [5,734 [5,563 | (oop 012 Bioto 7.186 1,010 730 326 330) Buenavista 2687 [2,529 | 2.402 122 052 Bongiod Pab (Eat Wert) 5577 | 5,922 5.463 (0.86) 064 | | Dagocdioc (Pob.) 4353] 436] 4.088 (0.98) 0.66 ‘Mabua 6271 | 5,654 3,968 2.09 355) ‘Mabuhay 7041 703, us ‘817 7.38 Maitur 3,829 | 1548, 1320 339 i6h Maticdum 23 335 553 | 10.29) az | Pandanon aa 332 695 | (0.34) 382 angi 80 323 78 135 1.96 ‘Quezon 346s | 1,209 7,088 328 139 Rosario 3.262 | 2576 1922 an 297 ‘Schadien 993 730 561 248, 3.48 San Agustin Norte 2135 708 3733 227 087, San Agustin Sur 5485 | 4s67 | 3.5az 200 348 San Antonio 669 2 ‘7 147 0.85, ‘San Isidro 736. 755 608 oat 224 San lose 710 ae S03 262 238, Telaie am | 7261 | eer 385, 082, Source: PSA; Computations by MCSI 10Based on the 2010-2015 annual population growth rates for the province and the ‘ity and the participation rate for each barangay, projected population was calculated for the years 2017-2026. These are presented in Table 4: Projected Population, 2017-2026 below. Table 4. Projected Population, 2017-2026 Projected Population Province/Ciy/Baraneny | 2017 | 201m [ 2639 | 3070 | 2023 | 2002 | 2003 | zeae | 208s | Zoxe Provines of Surigwo det Sur|@o4,513]610,740| 617,031 525 386 ]579 507 [636 254642 848649 450] 656,152] 63,817 (cay of Tendog 57.593] 58.i26] Si,72a] 59,327] 39338] cose] 6179] e1mi0| G2ane] 63.033 Tawasion Las] 147i 1487] 10x] isiel_ 1533] 1svol_asesl sei] 1eod [Begone tengsod (Fob) | 5.607] 5.664] 5,723] 5,782] sai] 5.902] sea] o0va| 6.006] 6 187 isoro ‘L2ual 3223] 1-236 1.248] 1.963] 1774] 1.307] 2.303] a asal —.335] [Bvenavita 2743] 2,77i| 2,799] 2,028] 2,857] 2,867] 2.917] 2947] 2.977] 3,004 [Songtod rob. (East West) | S.693] 5,751] s.a10| 5.870] 5.931] S992] —G0sal 6116] 6.179] 6.271 (Osgocdoe (Pot) cazsa{ 4283] 4,327] 4371] 4416] 3.402] 9,508] 4,558] 4.603] 274 (Mabe ‘aol| 6467) 6,534] 5,601] 6,669] 6737] 68071 6877] Goual 7.058) Iabuay 053] 1,073] 1,088] 1006] 1.107] 1.138] 1.430] 1.143) —aasal 2373 Imeem 14867| 1586] 1,906] 1.925] 1.945] 1,965] 1.985] 2.006] 2.026 7058] ‘suo as] 57] ‘sec] 275] 004] — e201 — 902] — 9121 o2e) [Pendanon 34] e844] 852] 6il 470] 679] esa] 097] 9061 —a20) [Pani #9] 9071 17] 26] e36] 94s] 055] 96s] 975, a0] favezon Zaee| i514] i529] i543] is6il i577] 383] 16:0] —Zee7| 1653 inosaro — 3300] 3364l 3.398] 3.434] 3.469] 3,505] 3,5a1]_2577| 3614) 3.67 [Sshacion ‘13| 92a] 930] 340] s50] 959] 909] — 979] 98911008) [san Agustin Wore ‘2a79| 2202] F224] 7247] 7270] 7204) 9.217] 2.243] 2365] 2.400 [san Aguetin Sur 500] S.es6| 5714] 5,774] 5099] 5.93] 5.54] 6015] 6077] 173 [sen Antone 2] 690] 657] 70x] — 733 733] — rae] rsa] 7a] 753] [Sn cdr 02] aisl eto] a7] 36] 045] 853] _vea] a7, 035] [Sanove Tas] 73a|__ 740] 748] 755] Tes] rail 779] —7a7| 799} [Teaie ‘3953] Sous) essa 9232] 9.397] 9,03] 9,520] 610] 9737] 97a Source: MCSI Computations 2. Population change Since 2000, crude birth rates in Surigao del Sur have been havering near the 28 births per 1,000 population while crude death rates have been decreasing from 8.05 deaths per 1,000 population in 2000-2005 period to 6.88 deaths per 1,000 Population in the 2010-2015 period. (Table S: CBR, CDR, and CRNI in Surigao de! Sur, 2000-2015). Since total population increase from 2010-2015 is 55 per 1,000 Population and crude rate of natural increase per 1,000 population is 21.20, the difference may be reasonably attributed to net migration. Table 5. CBR, CDR, CRNI in Surigao de! Sur,2000-2015 2030- | 2005- | 2000- Vital Statistic 2015_| 2010 | 2005 ‘Crude birth rate (per thousand population) 28.08 28.65] 28.27 ‘Crude death rate (per thousand population) eas] 7458.05 Crude rate of natural increase (per thousand population) | 21.20] 21.20] 20.22 Source: PSA Quickstat a~§ PEs eS 3. Marriages Registered marriages in Surigao del Sur totaled 2,563, 3,106, and 2,814 in 2013, 2012, and 2011, respectively. 'n 2010, of the household population 10 years old and over in Surigao del Sur, 44.2. Percent were never married while 43.4 percent were married. The rest of the Population was categorized as follows: in common-law/live-in marital arrangement (6.9 percent), widowed (4.5 percent), and divorced/separated (1.0 Percent). Among the never-married persons, 56.0 percent were males while 44.0 ercent were females. For the rest of the categories for marital status, the females outnumbered the males. (Table 6: Household Population 10 years old and over by Marital Status). Table 6. Household Population 10 years old and over by Marital Status, Surigao : del Sur, 2010 Marital Status Both Sexes Male Female Total 429,131 220,708 208,428, Single 189,710 106,238 83,472 Marries 186,160 92,569 93,281 Widowed, 19,319 4587 14,332 Divorced/Separated 4197 1.979 2,218 ‘Common Law/Live-in 79458 14.558 14,914 Unknown 277 78 201 ‘Source: PSA 2010 Census 4. Age groups ‘The projected population by age group is estimated based on 2010 proportions as shown in Table 7: Projected Population by Age Group, Surigao del Sur, 2017- 2026 below. ‘Approximately 57.5% of men and women in Surigao del Sur are aged 18 and over; this is generally the marriageable or already married age group. On the other hand, persons 0-14 years old - the young dependents - comprise 35.5% of total population while old dependents ~ persons aged 65 and over - comprise 4.90%. The working age population 15-64 years old total 39.6%. Dependency ratio is thus 68 which means that there are 68 dependents (60 young dependents and 8 old dependents) for every 100 persons in the working age Population. Table 7. Projected Population ty Age Group, Surigao del Sur, 2017-2026 [Age Group] 2017 | 208 | 2019 | 2020 | 2021 | 2022 | 2023 | 2026 | 2028 | 2026 Jo-14 | 214,602] 216,813] 219 046] 221,202] 223,581 225,804] 226,211] 230,56%] 252,936] 235,330] jis—64 [360,290] 364,001] 367,750] 371,538] 375 365] 379,231] 383,127] 387 084] 361,0731 395,099] 18 and ever] 347,595] 351,176] 354,793] 358,447] 362,139) 365,269] 369,638] 373,445] 377.2911 381.177] [s0.and over] 44,734] 45,195] 45,660] 46,133] 46,606) 47,096] 47,573] 48,053] 48,556) 49,055 [eS and over|_29,621] 29,526] 30,235] 30,546) 30,861] 31,178] 31,500] 31824] 32.1521 32,483] Source: MCSI Computations 2— _~ 8 ff 2 2 = 5. Household income The latest available published statistics on income and expenditures for the Province are from the 2000 Family Income and Expenditures Survey (FIES) of the NSO which shows that the average annual family income at 2008 prices was Php 73,089 while annual per capita income was Php 20,793 as shown in Table 8 below. Table 8. Family Income and Expenditure, Surigao del Sur (at December 2008 prices 2000 1397 1994 ‘Total number of families 97,346 | 110,169 97,795, ‘Annual average family income (in Peso) 73,080 | 66,950 | 88,556 “Annual average family expenditure (In Pes) 73,081 | 64,759 | $9,525 ‘Annual average family saving (In Peso) 10.475, 2,330 7A2s ‘Annual per capita income (In Peso) 20,793| _15,783| 13,797 ‘Average per capita expenditure (in Peso) ig203| 14,030 12,238, Source: NSO, FIES 2000 in Moreover, the 2012 FIES indicates that 18.0% of families in Caraga Region earn Php 250,000 and over mostly from salaries and wages 47.7% and other sources (33.7%). At the other end of the income class, 3.8% of familias in the region earn income less that Php 40,000 mostly from entrepreneurial (38.4%) and other sources (45.0%). Nevertheless, 44.4% of the Caraga population earn Pho 100,000 to Php 249,999. (Table 9 below). Table 9. Distribution of Families by income Class, by Main Source of income, 2012 [ ‘all Income Class income! Under | 40,000 - | 60,000 - {100,000 -] 250,000 Main Source of income _|Classes| 40000 | 59,999 | 99,999 | 249,999 | and over! (Number of Families In thousands) 532| 20 a7] 134] __236| se [Percent Share Per incomeGiass| 100.0] 3.8| _8.8| _25.2| 444i 180) Percent 100.0{ 100.0] 100.0] 400.6] i006] 10000 Salaries Wages 426) 16.5| 28.3) 346] 396] 7.7] [Entrepreneurial activities 2a7|38.4[29.5| 3a4[ 295s 18.6] [Other sources of income 327] 450] 42.2) 320/303] 337] Source: NSO FIES 2012 6. Economic activities and occupations Since 1960, when Surigao del Sur became a province, the economy has been based primarily on agriculture, fishery and forestry. Forest production played a leading role in the early years with at least six large wood-based companies that took control and managed our forest resources and four manufacturing/ processing plants that produced veneer, plywood, pulp and paper. In recent years, trading and services sectors has grown steadily particularly in the capital town of Tandag, the municipalities of Cantilan in the north and Barobo In. the south and Bislig City. Trading and services sectors today are vibrant and profitable. (DA, Abaca Investment Plan 2015-2018).‘About 45 % of the total land area is developed to agriculture. Major crops are rice, corn, coconut, abaca, soybeans, coffee, and other high value crops. Fishponds are responsible for the continuous production of prawns, milkfish, and, crabs both for consumption and exportation. The latest available data on major industry groups disaggregated by region indicates that about 2/5 or 38.5% of employed persons in Caraga Region are in the primary (production) sector consisting of agriculture, hunting, and forestry, fishing, mining and quarrying while 12.8% are in the secondary (manufacturing) sector. The rest (48.7%) are in the tertiary (services) sector with 17.6% of total employed persons engaged in Wholesale and retail trade; repair of motor vehicles, and motorcycles. (Table 10: Percent Distribution of Employed Persons by Sex, bby Region and Major Industry Group, January 2016). Males outnumber females in the agricultural and manufacturing sectors while the services sector is overwhelmingly dominated by females. Table 10. Percent Distribution of Employed Persons by Sex, by Region and Major Industry Group, January 2016 = Tad [ale [Female Number (in thousands) I 395 ————<$<$<———— Tea Toa oes 085 agers Agere ing weary woa| see] aaa Fang ao]-se] 09 Minigand garni sat 77] 14 anatacterng Meneecnrt ea[ ea] 55 Flot, gs, var and a ondRiong sphy eal os] 02 Water supp sewerae, waste management ararenedaten | — 9. ties i Consructon sa[-sa] on Tenvces Wholsae ahd etal Wade Yep of larvae and = mooreyles Transporation and aoage a ‘Accommodation and foo sve NSE 3a Tnformaen snd commuricrion 08 Francia end quence ection a Professional seni nd wechnica vine oa ‘Adminstativeand support sevice actvie 03 Public adnan and defers, compusoy soca s20uTy a Edecrton a2 Tar fe and saa wor aie ia Ars, eneriirent and recreation 03 Other sere aivies 34 Source: PSA Labor Force Survey, January 2016 14The January 2016 Labor Force Survey from the PSA indicates that 32.4% of employed persons in Caraga Region are laborers and unskilled workers while 21.7% are officials of government and special-interest organizations, corporate executives, managers, managing proprietors, and supervisors. Other major ‘occupation groups in the region are service workers and shop and market sales workers (12.3%), farmers, forestry workers, and fishermen (11.2%], and trades and related workers (5.8%). (Table 11). Table 11. Percent Distribution of Employed Persons by Sex and Major Occupation Group, January 2016 Total [Male | Females ‘Number (in thousands) 3065[ e739 Total 100.0 | 100.0; 400.0 Offa of government and specarinterest organizations, corporate executives, managers, managing proprietors and supervisors ny 152 Professionals Sa 105 Technicians and associate professional 33] 2a Clerks 48 a3 Service workers and chop and marlet sles wore | 123 Da Farmers, foresty workers and fishermen [a2 as Trades and related workers 338 23 Plant and machine operstors and ssemblers a2) 07] [Laborersand unstiledworkers | 32.4] 340 20.6 Special oscupstons a3} os z Source: PSA Labor Force Survey, January 2016 Itis interesting to note that females outnumber males in most of the occupation groups especially those requiring management and technical skills. Males outnumber females in occupations traditionally dominated by men such as farmers, forestry workers, and fishermen group, trades and related workers Broup, plant and machine operators and assemblers group, and laborers and unskilled workers group. Males also dominate the special occupations group. Based on the latest provincial estimates (October 2015 Labor Force Survey), 64.5% of persons 15 years old and over in Surigao del Sur are in the labor force of which 93.7% are employed. D. Infrastructure, Facilities and Amenities ‘The maps on the following pages indicate the location of various infrastructure, facilities and amenities in Tandag City. Figure 8: Infrastructure Support Map on the next page shows the transportation facilities—roads, bus stations, piers, airports as well as locations of hydropower plants, wind power plants, cell sites, power lines and sub-stations in Caraga Region and Surigao del Sur while Figure 9 on the next page shows the tourist destinations as. the Caraga Region, particularly Surigao del Sur, has many natural tourist attractions. 15Figure 8. Infrastructure Support Map, Surigao del Sur & Caraga Region & | Lecenos | senor corm @ wumen B wommss BB wcounas rewnass sro power Par » ave Seaport Fever Argon Seeonser sever | 80 KV | | ‘unr snexpropoee 138s OC tran oned * (Propowec| 34 SOKY (om (Ene KV Une ae 18 KU Una (Ea os Mure pat una, ‘Source: Coraga Regional Development Plon 2011-2016Figure 9. Tourism Destinations Map, Surigao del Sur & Caraga Region vances fovea | Aman tet este Annan det — Source: Caraga Regional Development Plon 2011-2016Figure 9: Existing Land Use Map and Figure 11: Google Map of Tandag City shows the agricultural and industrial area, commercial areas, residential areas, institutional areas, and other facilities and amenities such as schools, churches, and hotels. It is evident that most of the commercial areas and government offices (except for barangay LGUs) in Tandag City are concentrated within Barangays Poblacion and Telaje areas while residential areas are in the suburbs. There are also commercial areas along the Surigao-Davao Coastal Road particularly going to Barangay Rosari Moreover, the Surigao del Sur State University (SDSSU) and the Tandag Memorial Cemetery is located along the coastal road in Rosario. Tandag has 26 public elementary schools, 5 public secondary schools, and the SDSSU. There are also 6 private pre-schools offering Kindergarten program, 2 private schools offering elementary and secondary education, and 1 private school offering kindergarten to secondary education Aside from the Tandag City Health Center and the barangay health stations, Tandag City also has one government and 3 private hospitals.or owe ous st02-s002 d9 A Bopuoy :a2.nos AyD Bopuog ‘sesr) puoy bujsixgPoy ‘Ap Gopuny “dow a6o09 “TT asndiyV. Marketing Aspect. A. Demand 1 Residential Construction As there are no published statistics on transactions in subdivision lots, demand for subdivision lots may be gauged from the number, floor area, and value of residential construction in Surigao del Sur for the past three years. As may be seen in Table 12 below, the number of residential building construction in Surigao del Sur increased by as much as 19% between 2013 and 2014 and 12% between 2014 and 2015. Table 12. Residential Building Construction, Surigao del Sur, 2013-2016 | 2013 2014 [2035 | 2016 (Q1-02) Surigao del Sur I _ Residential (number) 453 539 601) 282 Total floor area (sq.m.) 24,055 | 33,597| 26,390 | 12,898 Value (Php “000) 140,444 | 168,854 | 163,050 Source: PSA Quickstat 2. Housing Shortage The PSA reported that the number of households in Surigao del Sur in 2010 was recorded at 114,969, higher by 20,941 households compared with the 94,028 households posted in 2000. The average household size in 2010 was 4.9 persons, lower than the average household size of 5.3 persons in 2000. Moreover, a total of 113,804 occupied housing units were recorded in the province of Surigao del Sur in 2010. This translates to a ratio of 101 households for every 100 occupied housing units, with 4.9 persons per occupied housing unit. In 2000, there were 102 households per 100 occupied housing units, and 5.4 persons per occupied housing unit. This indicate that while the housing backlog has been addressed between the years 2000 to 2010 as evidenced by the lower ratio of households per 100 occupied housing units, there was still a remaining backlog of 1,165 doubled-up households. This backlog may have been addressed from 2010 to 2015 but considering that there are more than 2,500 marriages per year in Surigao del Sur as well as the 1.03% population growth rate, it may be reasonably assumed that at most, there is a yearly backlog equivalent to the number of marriages per year. B. Factors affecting trend in past and future demand 1. Population changes and characteristic ‘As discussed in the previous section, there are at least 2,500 households (new marriages) needing new housing units per year in Surigao del Sur. Moreover, based on a net migration rate of 34 per 1.000 population, approximately 3,400 ‘migrant families per year would need housing units. Feasibility Study Eagle Ridge Residences Page | 212. Economic activities and occupations The continued improvement of Surigao del Sur's infrastructure, particularly the national highways and local roads, have significantly improved the province's economy and people are moving to areas where there are better opportunities for employment and businesses such as Carrascal and Cantilan (mining), Tandag, Tago and Barobo (mining and tourism), and San Agustin (tourism). Tandag, in particular, with its booming tourism and mining industry and available urban facilities and amenities such as the Gaisano Mall, Jollibee, banks, the SDSSU, various types of commercial enterprises, and government offices is a magnet for migration. The influx of people increases the demand for housing units. 3. Overseas Filipinos ‘There are 10.2 million Overseas Filipinos (OF) worldwide, or around 10% of the Philippine population. Of ali OFs, 48% are permanent migrants, 41% are temporary residents and expected to return to the Philippines and thus includes Overseas Contract Workers, students and the like, The restare those not properly documented or overstayers. The top ten countries of OFs are: 1) United States, 2) Saudi Arabia, 3) United Arab Emirates, 4) Malaysia, 5) Canada, 6) Austrialia, 7) Italy, 8) United Kingdom, 9) Qatar, and 10) Singapore. From 2005 to 2014, there were a total of 1,380 registered Filipino immigrants coming from Surigao del Sur. (COF, 2014). ‘The 2015 Survey on Overseas Filipinos by the PSA reported an estimated decrease to 41,600 OFWs in 2015 coming from the Caraga Region compared to 46,400 OFWs in 2014. The proportion of female OFWs (52%) was higher than male OFWs (48%). Many of these individuals are earning higher incomes than their home based compatriots. Cash remittances sent home by OFWs to the Philippines amounted to Php 135.637M in 2015 while cash brought home totaled Php 37.260M and those brought or sent home in kind was Php 7.412M. The average remittance sent by male OFW was Php 107,000 while female OFW's average remittance was Php ‘58,000. Regardless of the amount of the cash remittances sent, more than three in every five (65.7%) OFWs were able to set aside less than 25 percent of the total ‘amount received. (PSA 2015 Survey of Overseas Filipinos). Moreover, cash remittances from overseas Filipinos (permanent migrants, OFWs, etc) amounted to $24.3 billion from January to November 2016, according to the Bangko Sentral ng Pilipinas (http://www.bsp.gov.ph/Statistics/keystat/ofw.htm), about 5.2% percent higher compared to the previous period in 2015. In Tandag City, there are 365 OFWs, 165 of whom are males and 200 are females. 22C. Supply expected in the future 1. Sut ion and housing project Housing supply in Tandag City comprises mainly of the following low-cost residential subdivisions: Table 13. Subdivision and housing projects in Tandag City ] ‘area in| No.of Lots/ Name of Subdivision Type Barangay sq.m. Units | Surpoco Subdivision | Low-cost__| Rosario, TandagGity | 16,000 | 92 Lots Pacific Sunrise Low-cost | Rosario, TandagCity | 39,682 133 Lots Neighborhood Association “Source: Tendog Gly 2005 Eco profile ‘Two subdivisions, Villa Julia Subdivision and Duero Hills Subdivision, offering 83 lots and 14 lots respectively, have ceased operating due to various reasons. Melissa Homes Subdivision, offering low-cost single-detached (40 sq.m. floor area) and row house units, is in Barangay Victoria in the adjacent municipality of ‘Tago while further afield are Ericson Subdivision, T.U.G. Subdivision, and Villa Josefa Subdivision, all in Bislig 2. Private residential buildings ‘As may be gleaned from Table 12: Residential Building Construction, Surigao del Sur, 2013-2016 above, the rate and number of residential buildings constructed per year in Surigao del Sur have significantly increased over the years, D. Prices in other projects Prices for subdivision lots range from Php 1,000 to Php 2,500 per square meter for low-cost housing subdivision in Tandag and Tago while house and lot packages of low cost subdivision projects are Php 570,000 to Php 600,000. As there are no high-end subdivision projects in Tandag, the following indicative prices for house and lot packages are taken from high-end subdivisions in the highly- urbanized Butuan City, the regional center for Caraga Region. Table 14. Indicative Prices of High-End Subdivision House & Lot Packages Subdivision/Model ‘Area/Features Price | Filinvest Homes Butuan, | Floor area -53.6 sq.m. 2- storey Php2.2M ] Baan, Butuan City - Opal | townhouse, 3 bedrooms, 2 toilet and baths | Duplex = = | | West Highlands Gof & | Lot Area — 180 sqm. Floor area — 103 php 4,214,000 | Residential Estate, sq.m.;4 bedrooms; 2 Toilet & Bath, 1 Bonbon, Butuan City Maig's room with 188, balcony, garage Camella Butuan, Villa | Min, Lot Area: 99,00 sq. m.; Floor Area: Php 3,447,632 Kananga, Butuan City— | 72.00 sq. m. ; 4Bedrooms, 2 Toilet & baths, Cari Provision for balcony & carport 23Table 14, continues = ‘Area/ Features [Price Camella Butuan, Vila Min. Lot Aree: 68.00 sq.m; Floor Area: 65.00 | Php 2,836,432, Kananga, Butuan laity | sq. m; 3 Bedrooms, 2 Toilet & Baths, Car Provision for Balcony & carport Sources: iniemet Search ~ tps //eameliahomes.ne cormunives/outvan/carmelabatwan. Php; /eei//wur property com ph/propertyisting/175225/West Highlands-Golf-@-Butuon-City wi filrvesthomesbutuar.com; wwwilinvest.com/projects/iinvest-nomes-butuan E. Marketing program 1. Channels of distribution RA S646 or the Real Estate Service Act (RESA) as well as PD 957 prohibits selling of subdivision lots by unlicensed and unregistered real estate brokers and salespersons. Eagle Ridge residences intends to strictly comply with these requirements by engaging only PRC-licensed and HLURB-registered brokers and salespersons in the selling of Eagle Ridge Residences lots. The real estate brokers may be in-house (employed by Pepperidge Corporation) or those with agency agreements with Pepperidge Corporation. It is understood that Pepperidge Corporation will enter into a contract (employment or agency agreement) with the licensed and registered real estate brokers only and that this contract also entails that such brokers strictly comply with the PRC accreditation and HLURB registration requirements for their salespersons. 2. Promotional methods Pepperidge intends to employ all practicable types of media to promote Eagle Ridge Residences. This includes word-of-mouth, person-to-person contacts by brokers/salesperson to prospective buyers, dissemination of brochures and other marketing collaterals, signboards and posters, emails and website. 3. Financing scheme for the sale of lots Available financing scheme for homebuyers include the following: a) Bank financing Pepperidge Corporation will establish linkages with banks in Tandag City for them to extend housing loans to prospective buyers. Banks for possible linkage include BDO, MetroBank, and RCBC. Pepperidge Corporation will only accept bank loans with a maximum term of 3 years. Banks differ in terms of what they have to offer such as interest rates and the term of loan. Banks may lend up to 80% of the actual property value and a minimum of 400,000. Amount to be loaned is also dependent on the individual's paying capacity. For bank loans, interest rates may range from 5.75%, subject tore-pricing after one year, to 12%. Buyers can also opt for a fixed interest rate from 1 to 3 years. 24The buyer will be the one to apply for the bank loan. The requirements to avail of a bank loan may vary depending on the bank, the buyer's employment status (if the buyer works here or abroad, self-employed or employed in a company), and purpose of the loan. At the minimum, a bank would require financial statements and Income Tax Return, Certificate of Employment, pay slips, copy of TCT (Transfer Certificate of Title), valid 1Ds, lot plan and vicinity map, marriage contract if applicable, proof of remittance for 3 months (for OFWs) and certificate of Business Registration (for self-employed). Pepperidge Corporation will supply the lot plan, vicinity map, titles, and other relevant Pepperidge Corporation documents as required to the bank extending the loan in support of the buyer's application for bank loan. Only when the loan,has been approved and the loanable amount from the bank is known will Pepperidge finalize the equity amount for the balance of the selling price not covered by the bank loan and require postdated checks for the same. b) In-House Financing In this financing scheme, Pepperidge Corporation will offer buyers payment schemes that suit their financial capacity. This also means that the buyers directly pay their monthly amortization to the developers. This type of financing requires a background check of the buyer, down payment, and postdated checks for the balance of the selling price. Maximum term is 3years and the interest rate is 14% to 18%. Pepperidge Corporation will require the buyer to complete a detailed loan application form, and thoroughly verify all of the information the buyer provides there. This includes running a credit check and vetting employment, assets, financial claims, references, and other background information and documentation, The written sales contract ~- which specifies the terms of the deal along with the loan amount, interest rate, and term -- shall be made contingent upon the Pepperidge’s approval of the buyer's financial situation. The loan shall be secured by the property 30 Pepperidge can foreclose if the buyer defaults. A down payment will be collected from the buyer. Documents required include Certificate of Employment and Compensation, source of income (Income Tax Returns for the past 3 years), bank statements or remittance slips. ©) Pag-IBIG Financing For Pag-lbig financing Pepperidge Corporation will assist the Pag-IBIG member in processing his/her housing loan. This would require incorporating the developer's costs in assisting the member in the total price In this scheme, Pepperidge secures a purchase commitment from Pag-IBIG for the lot. The lot is taken out (paid for) by Pag-iBIG after the housing loan for 25the Pag-IBIG member is approved. The amount paid by Pag-IBIG is equal to tthe amount of housing loan granted to the Pag-IBIG member. The balance not covered by the housing loan (the equity) is paid for by the buyer. Pepperidge Corporation will require the Pag-I8IG member to complete the necessary requirements within the one-month reservation period in order to fast-track processing. Pepperidge will finalize computations of equity amount to be paid (postdated checks required) only when a Notice of Approval (NOA) from Pag-1BIG and the loanable amount is known. Terms of sale and interest 0) Reservation Fee This is a non-refundable fee paid by the buyer to Pepperidge to ensure that the property the buyer is planning to buy will be reserved and taken out of the market so that it cannot be sold to another person. The Reservation Agreement shall state the property's basic information and specifications Reservation is good only for one month. b) Bown payment A downpayment equivalent to 20% of the selling price shall be collected for in- house and bank financing schemes. Repayment period Payment of the equity (the balance not covered by bank or Pag-IBIG housing loans) may extend up to two (2) years. ‘A maximum repayment period of only three (3) years is allowed for loans covered by in-house or bank financing schemes. For sales under Pag-IBIG financing, it is estimated that the period from reservation to take-out (payment of lot by PAG-IBIG loan of member) is three months, one month reservation period for member to organize documents and apply for Pag-IBIG loan, one month or more to process documents and secure Pag-1BIG Notice of Approval of loan, and one month or less to secure payment of lot. d) Interest rate on unpoid balance ‘The interest rate is a maximum of 6% per annum on the unpaid balance ©) Other fees A processing fee is paid by the buyer to Pepperidge to cover reasonable costs (transportation, personnel, printing and reproduction, communication, and the like), relating to Pepperidge’s assistance in processing the housing loan as well as closing costs such as local transfer taxes, title registration, notarization fees. Processing fees are already included in the total sales price. The sales price is VAT-inclusive. Other costs such as the Pag-18IG loan processing fee and bank loan processing fees are for the account of the buyers. 265. Passage of legal title Title shall pass to the buyer upon full payment of the sales price 6. Lot classifications and prices Table 15 presents the location, area, and corresponding sales prices of the 113 individual residential lots in the project with an aggregate area of 34,180 square meters or 3.418 hectares. Table 15. Lot Classification and Sales Price Block) tot | Area Projected Year of Sale No. (sam) Type of Lot Yet | Year? ‘Year 3 1 Block tot | tot 335 1 sai 500 tt? 301 at 2317.70 tots 301 2317,100 tot 302 Fa 2.317.700 Tots 301 —2:317,700 its 2317,700 tot = 3317700 tots 2317.70 tot 301 | 2,347,700 tot 10 So1__| Regular 7ai2350 tot ih 501 | Regular “[aanaas0 tot 2 301 | Regular 3,212,350 tot 2 301 | Repuler 2212350 =| ‘ctu S01 | Reguler 2.212.350 | {ets 301 | Regular 2.212350 tot 36 3a | Reguer 2.212.350 ot 47 301 | Reguler 2.212350 Tote 302 | Reguer 2219, Lot 9 237 | Regul 1.741350 | Block? tot ar | comer 3AS5 AD tot ao7 | corner 3,455,490 re a 2,325,400 ot 305 | Regular | 2348 500 Lot 301 Regular z 2,317,700 tote 305 7.34500 ot “30L —a'347,700 tots 302 2,325,400 Block [tet 720 7540400 ot 728 | Regular 675,500 [ters 728 | Regular 1,675,800 tat 228 | Regul 1,675,800 | lets 78 — | Regular 1,675,800 a oa ctonet tearTable 15, continued Block/ Lot Area Projected Year of Sale no. | (sam) | typeottot_[~ veara Year? Years Block 3 tot 7 242 Corer 1,956,570 | lot 8 226 Regular 1,661,100 | Tot 726 | Regular 1,661,100 [totic 726 | Regular 4,661,100 | Lot 11 226 Regular 1,661,100 | Wot 7 240 [ Comer 1,940,400 Block 4 } Wot 28 | Comer 7,678,600 | tot? 329 | Regular lot 229 | Regular (ot 329 | Comer tot 188 | Comer a tet 6 27 tot 7 227 ote 78. Block I [leet 344 | Comer [toe 2 344 | Regular | [hot 358 | Regular [rota 372 | Regular | 2,864,400 fers 396 | Regular 2,372,200 | [tots 417 | Corner 3,540,330 [ot7 414 | Comer 3514860 Lot ® 384_| Regular 7,956,800 Lot 371 | Regular 2,856,700 | tot 10 359 | Regular Lot 11 346 Regular _ i tet 12 347 —[ Comer [ Blocks lot 33 | Comer 2,530,605 lt? 300 | Regular 2,205,000 [tees 300 | Regular 2,205,000 ‘ota 300 | Regular 2,205,000 Lot 300 | Regular 2,205,000 wots | 313 | Comer | 2,590,605 | let? 313 | Comer | 2,590,605 ot 300 | Regular 2,205,000 et9 300 | Regular 2,205,000 \et10 "300 Regular 2,205,000 tot at 300 | Reguler 2,205,000 [hota 313 | Corner 2,530,605 28Table 15, continued Block/ tot | Area Year of Sale No. (sam.)_| typeof tot_|~ Year Year? Years Block? [toes 313 | Comer 2,530,605 iot2 300 | Regular 2,205,000 lot 300 | Regular 2,205,000 Lota 300__| Regular 2,208,000 Lots 300 | Regula 2,205,000 | Lots 313 | Comer 2,530,605 Let 313 | Comer 2,530,605 1 Lote 300 | Regular 2,208,000 wots 300 | Regular 2,205,000 7 et10 300__| Regular 2,208,000 lott 300__| Regular 2,208,000, tot 12 313 | Comer 2.530605 Blocks ott 268 | Comer 2,217,600, ot 2 268 | Reguler 1,876,000 Lot 267 | Corner 2,055,900. Lota 376 | Regular 2,632,000, wots | 373 | Regular 2,611,000, ais Lot6 355 | Reguler 2,495,000 Lot7 354 | Regular 2,478,000. Lote 334 | Regular 2,338,000 | Lots 334 | Regular 2,338,000. tot 10 313 | Reguler 2,191,000, Lotit 316__| Regular 2,212,000, tot 1? 304 | Comer 2,380,800 | Lots 309 | Corner 2,379,300 Block 0 T [tora 363__| Regular 2,541,000, [toe2 300__| Regular 2,100,000 lots 301__| Regular 2,107,000, [hora 300 | Regular 2,100,000 Lots 300 Regular 2,100,000 Loté 300__| Regular 2,300,000 lot 7 300 Regular 2,100,000 Lots 300 | Regular 2,100,000 Lot 300 | Regular 2,100,000, Loto 300 | Regular 2,100,000, iorat 300 | Regular 2,100,000 tot12 301 | Regular 2,107,000 \otas_| 322 | Regular 2,254,000 — Lotus 301__| Regular 2,107,000, Lets 301__| Regular 2,107,000 Lots 301 Reguiar 2,107,000 ou? 408 | Regular 2,856,000] | 29A commercial lot with an area of 132 sq.m. will be retained by Pepperdige Corporation. This may be leased in the future. 7. Expected buyers The project and its basic features narrows the possible target market to buyers who will be primarily attracted by the project's location near the beaches and tourist spots in Tandag as well as the site’s characteristics (ie. gated community, accessible urban amenities). The primary group is expected to be mature U.S. and Canada-based Filipinos and Filipino-Americans ("OF") who want to acquire some property for use either as. vacation homes when they visit the Philippines, as retirement abodes, or as investments. This group tends to rate proximity to tourist spots and urban amenities very highly in considering geographic relocation. The secondary group consists of Overseas Contract Workers (“OCWs") and their families who will purchase new houses for their own use. The target demographic for this group falls in the middle-aged professional (40 ~ 44) group. This groups tends to rate prestige and comfort very highly. A third group consists of foreigners who have Filipino spouses, and expatriates who want to invest in houses in the Philippines (“Ex-Pats”). Such group would tend to value future saleability and return on investment highly in considering, purchases. A fourth groups consist of high-income employees in the mining industry ("Miners") within Tandag and nearby municipalities. A fifth group consist of upwardly mobile professionals and businessmen ("Yupbies") who value prestige in locating in such 2 community and the convenience and accessibility of commercial and institutional facilities and tourism spots from their residence. 8. Projected sales quantity When planning the phasing of the development, the related residential mix and the assumed market absorption rates, we have considered, among other relevant findings from the market research, the following: * The current undersupply of quality residential property in Tandag City and Surigao del Sur; and + Theidentified demand characteristics for the developed lots and the buyer segments (oversea contract workers, middle-to-high income professionals and entrepreneurs, and financially-comfortable retired and empty nesters.) In projecting expected market absorption rate and pricing of the residential components, besides the factors mentioned above, the identified main market drivers are also considered such as:+ Location of the proposed development; * Quality of the offered property product in Surigao del Sur; + Price (per sq.m.) associated with a given quality level as a measure of housing affordability; and + Desire for a better quality Accordingly, we have assumed a massive launch in the first two years of selling with the early positioning of the project as a residential estate with low-density housing, green landscapes and lifestyle supply elements. These early takers will serve as the critical mass for the community core. Sales will gradually taper until all units have been sold. Considering the demand, supply, prices, and marketing program, Pepperidge expects the following annual volume of sales of Eagle Ridge Residences lots for the programmed 3-year selling period (Table 16: Expected Annual Volume of Sales): Figure 12 shows the project distribution of sales by market segment. Table 16. Expected Annual Volume of Sales Yeart_| Year? [Years No. oilois 2 [46 28 Total Area (eam Ta74—| 13,087 3875 Figure 12. Projected Distribution of Sales by Market Segment ww Yeart Year? Year3 OFS MOCWs SExPats mMiners mYupbies 31Vi. Technical Aspect A. Permits and Titles Before implementation of the Eagle Ridge Residences project, Pepperidge would first have to secure the following certifications, clearances, licenses, and permits. 1. Environmental Compliance Certificate (ECC) from the Environmental Management Bureau 2. Preliminary Approval and Locational Clearance from Tandag City LGU/Sangguniang Panglunsod 3. Development Permit from Tandag City LGU/Sangguniang Panglunsod ] 4. Zoning Certification from Tandag City LGU Deputized Zoning Administrator In addition, Pepperidge should also apply for a Certificate of Registration from the Housing and Land Use-Regulatory Board (HLURB). Pepperidge should also apply for a License to Sell from the HLURB once the required minimum level of development - land clearing and grubbing, road tracing and entrance gate if included in the brochure or advertisement ~ shail have been completed. B. Location 1 Location map The proposed project site is located in Barangay Rosario, a coastal barangay on the eastern side of Tandag, just 5 minutes away from the Poblacion area as shown in Figure 13 below. Figure 13. Location of Project Site and Barangays of Tandag City 322. Desirability of the location One of the primary advantages of the project site is that it is isolated from the congested, over-developed areas which are increasingly becoming common in the urban areas of Caraga Region. There are nearby residential areas, however, including other subdivisions and housing projects such as the Surpoco Subdivision and Pacific Sunrise Neighborhood Association, both within Barangay Rosario. Moreover, the proposed project site is only 5 minutes away from the urban core which contains the commercial areas and places of employment. 2) Commercial Areas The urban core contains the public market, Gaisano Mall, convenience shops, dry goods stores, computer shops, banks, remittance centers, hotels, lodging houses, fastfood and fine dining restaurants, and night spots. Other service establishments include dress and tailoring shops, beauty parlors, repair shops, construction firms, financial service firms, transport and other service providers. There are also suppliers of construction materials and hard wares, agricultural inputs, copra and grains trading, household appliances, and many others. b) Institutional Facilities Also within the urban core are four hospitals, several clinics, and pharmacies. Barangay Telaje and barangays within the Poblacion area also house national, provincial, and municipal government offices. Pre-schools, elementary and secondary schools, and churches of various denominations are located all over Tandag. Within Barangay Rosario is the main campus of the Surigao del Sur State University, the Rosario Elementary School, and the private school, Tandag Christian School. There are also convenience stores, cafes, internet cafes, offices of professionals and business firms, and gasoline stations. ) Transportation The Eagle Ridge Residences is accessed via Surigeo-Davao Coastal Road which connects to AH26, the Pan Philippine Highway, via the municipality of Placer, Surigao del Norte in the north and the Lianga-Prosperidad Road in the south. The entrance to the project itself faces the Coastal Highway and affords view of the coast which is only 150 meters across the highway. The nearest airport to the site is Tandag Airport. The easiest route to the airport is along Surigao-Davao Coastal Highway (about 5.5 km) then along the Airport Road to the airport terminal (about 1 km from the Coastal Highway). The total journey time to the airport is approximately 6 minutes Accessibility within Tandag City is provided by single motorcycles, motorized tricycles, motorized trisikads, and non-motorized trisikads. Land transportation from Tandag to the cities of Surigao, Butuan and Davao are provided by public utility buses of the Bachelor Express. There are also 33jeepneys plying the Tandag-Cortes route and Tendag-Cantilan route while airconditioned vans ply the Tandag-Surigao City route. The municipality has an integrated bus and jeepney terminal allocating & berths for buses and 8 berths for jeepneys. 3. Availability of water and electric power ‘The Tandag Water District (TWD) serves 5,059 connections covering almost seventy percent (70%) of the entire area of Tandag City. A total of 41,573 is the calculated population to have benefited in the District water systems in fourteen (14) different areas: Awasian, Bag-ong Lungsod, Bioto, Bongtud, Buenavista, Dagocdoc, Mabua, Pangi, Quezon, Rosario, Salvacion, San Agustin Norte, San ‘Agustin Sur and Telaje. Moreover, drilling for an exploratory 50-meter deep production well at Brgy. Rosario is ongoing. This project aims to supply more groundwater resources for Tandag’s growing population. Power is distributed by the Surigao del Sur Electric Cooperative (SURSECO II) power station located in Barangay Mabua. This station has 10 megawatts which is capable of energizing relatively large industries. At present, all of the 21 barangays are energized 4. Freedom from noise, smoke, odor, and dangerous gases The project’s location is relatively free from nuisances such as noise, smoke, odor, and dangerous gases as there are no industrial areas nearby which can be sources of noise, and pollutants. Moreover, trees along the coastal road side of the subdivision will serve as carbon sinks for gas emissions from land transportation plying the highway. 5. Relative freedom from floods Rosario, like all other areas in Tandag that are coastal lowlands, is considered 2 flood-prone area. This indicates the use of mitigation measure to minimize flooding in the project site 6. Sanitation Collection of garbage is only done within the city proper and only 44.8% of the total 10,375 households in Tandag have their garbage collected. Aside from having garbage collected, households in Tandag practice a combination of waste disposal practices which consists primarily of burning (54.8%), composting (28.8%), dumping in closed pits (6.2%), dumping in open pits (7.7%), and other waste management methods (0.03%). Only 23.9% practice waste segregation and 8.6% practice recycling. (CBMS 2015} Tandag has a City Ecological Solid Waste Management (ESWM) Ecopark at Barangay San Jose where the garbage collected are disposed of.7. Peace and order situation Tandag is generally a peaceful and orderly city. in 2015, 30 persons were victims of crime. (CBMS 2015). From 2008-2011, 47 persons were victims of crime of which 2 were in Barangay Rosario (CBMS 2008-2011), 8. General environment Barangay Rosario, like most of Tandag, has a restful, quiet appeal which makes it a great place to live in. Being a costal barangay, Rosario residents enjoy the cool wind and sea breeze. Barangay Rosario has large agricultural, agro-forestry, and open areas with residential and commercial areas mostly concentrated just beside or a few meters away from the Surigao-Davao Coastal Road and the Barangay Rosario Road. There are also widely=scattered dwellings in the agricultural and agro-forestry areas west of the coastal road. C. Area 1. Description of the area The project area consists of a parcel of land, more or less rectangular in shape, with an area of 57,727 sq.m. or 5.7727 hectares. Identified as Lot 3748, Cad 392- D, the project site is bounded on the east by the existing Coastal Road, on the south by the Surigao del Sur State University, on the west by Lot 3747 and on the north, by Lot 3744 as shown in Figure 14: Project Location and Vicinity Map. The Project site is outlined in green while adjacent lots bounding the project are outlined in blue. Figure 14. Project Location and Vicinity Map 35‘An encroachment block of 335 sq.m. is excluded from development, thus, the project area totals 57,382 sq.m. or 5.7392 hectres. 2. Technical characteristics of the area ‘The existing terrain of the project site consists of fairly flat topography, with grasses and some isolated trees. The majority of the site drains to the west ‘towards the agricultural areas. The site slopes from east to west. The elevation at the Coastal Road ranges from 12.9 to 13.4 meters, while the western portion of the site ranges from an elevation of 7.3 to 7.6 meters. ‘The type of soil in the project site is prismatic clay loam. tt has dark grayish brown color in the surface and reddish brown in the inner portion. It is also characterized as hard in dry condition and easily cracks or friable. The soil texture is coarse or granular and becomes plastic-like or sticky when wet. 3. Status of the area The project area is vacant land with a 10-meter wide road running from east to west and ending in the central part of the property. An entrance gate facing the coastal road has been constructed. On the north side is a perimeter fence. A temporary shed serving as a watchman’s quarters has been constructed. (Plates 1104). heiand co Plate 1. Entrance Gate and main road, from project site towards coostal road (west to east) 36Plate 3. Perimeter fence and temporary shed on the northern side of the project site 37Plate 4. The western portion of the property showing coconut trees in adjoining lots D. Development Plan 1. Filling and grading required Filling and grading of at least one meter is required to bring the site elevation at the level of adjacent properties and prepare the ground for construction of roads and other infrastructure and facilities. 2. Proposed layout ‘The Site Development Pian attached as Appendix A shows the entrance gate to the subdivision on the eastern side of the property facing the Surigao-Davao Coastal Road. The residential area is grouped in blocks of between 8 to 19 individual lots each starting from both sides of the entrance gate facing the coastal road with roads between blocks for easier access. Individual lot areas range from 198 to 408 sq.m. a) Parks and playground The parks and playground area is denominated as Block 7 which is situated between Block 6 and Block 8 in the southwest quadrant of the project. This 2,700 sq.m. area will be landscaped with grass, shrubs, and trees and provided with seating areas for a relaxing experience while the northern half will be allocated for a Recreation Center with basketball court and space for other types of sports & recreation a -s. Playground equipment may be installed later depending on the homeowners’ preferences. 4) Neighborhood multi-purpose center ‘The area for the neighborhood multi-purpose center is denominated as Block 11 and will contain the Clubhouse with function room and garden area, retail 38outlets and services that serve the needs of local residents, and other functional areas depending on homeowners’ preferences. ) Other Facilities Two blocks, denominated as Blocks 12 and 13, are designated as parking spaces for a total of 30 vehicles. The blocks are situated on the eastern and western side of the parks and playground area. A commercial lot is also allocated and is located on the lots adjacent to the eastern boundary of Block 2 near the entrance gate. The adjoin lot to the north is allocated for the sewage treatment plant. 3. Total area distribution Table 17 presents the distribution of the project area. Table 17. Distribution and Percent Share of Areas 7 ‘rea (sq.m) | %oftotal area Soleabie Area Residental area 3480 36 Sub-Total Saleabie Area 34.180 58.56 ‘Nor-Saleable Are | [Parks and Playgrourd 25 aa7| Neighborhoed Mult.Purpose Center 7 2.00 [ Roads and Other Open spaces | 39387 3343 ‘Commercial ict 132 023 Parting 375 0s Sewage Treatment Plant (STP) 72 033 landscape 7 oa Sub-Total Non Ssleable Area 7312 wo.sa TOTAL PROJECT AREA 57.392 7100.00 This distribution conforms to the minimum standards contained in PD 957, viz: ‘+ Saleable area ~ maximum of 70% of total area (project: 59.6% only) * Non-Saleable Area — minimum of 30% of total area (project: 40.4%) + Parks & Playgrounds — 3.5% of gross area for projects with a density of 20 & below lots per hectare (project: housing density — 19 lots/hectare; 3.7% allocated for parks & playground) ‘* Presence of Neighborhood Multi-Purpose Center * Area of individual lots - the area of individual lots range from 198 ~ 408 sq.m. which conform to PD 957 minimum standard of 100 sq.m. for medium cost housing 4. Specifications of roads and other improvements Roads and other improvements shall conform to the requirements of PD 957 392) Roads The hierarchy of roads is as follows: major and minor. The road right-of-way for major road is 14 meters while minor roads are 12 meters. All roads shall be paved with concrete with a minimum thickness of 150 millimeters while asphalt shall have a minimum thickness of 50 millimeters. Planting strips shall be established at 0.80 meters and sidewalks at 1.20 meters. The non-saleable area total 23,212 sq. m. which is within the PD 957 standard of minimum 30% allocation for non-saleable lots. i b) Drainage System The drainage system of the subdivision shall conform to the natural drainage pattern of the subdivision site, and shall drain into the public drainage system. Its layout shall'conform to sound engineering design/principles certified by a duly licensed civil/sanitary engineer. Drain lines shall be of durable materials and approved installation practices. Underground drainage system shall_be properly engineered and environmentally sound and shall be provided with adequate Reinforced Concrete Pipes( RCP), catch basins manholes, inlets, and cross drain for efficient maintenance. Minimum drainage pipes diameter shall be 30 centimeters. Streets and street lighting system Streetlights will be provided at 50-meter distance per pole, along the road, or every other pole if distance is less than 50 meters. E. Area development The schedule for the area physical development is shown in Table 18 below. Table 18. Physical Development Schedule T wpe yw i vata} eas] mae | |e |07] mano] no | 13 | 22 || 2] a | || a mer Entrance Gate/ Perimeter Fence Clearing Filling & Compaction. Excavation [Sewer Lines I Reeseeetistaa | [rane lweterunes ranage canal oad Works Street gh 40The management will hire a contractual Project Engineer who shall oversee the Contractors’ implementation of the project's plans and designs. Physical development shall start as soon as possible. To minimize downtime due to inclement weather, projects requiring dry season shall be executed during the relatively dry months. Project activities will be adjusted to take advantage of good weather. As in any Philippine city, Tandag has a ready supply of semi-skilled and skilled construction workers such as construction helpers, carpenters, masons, steelmen among others. The project will rent heavy equipment such as dumptruck, bulldozer, grader, and roller as needed from private construction companies or heavy equipment rental firms. Construction materials such as cement and steel bars may be sourced from hardware stores in the central business district of Tandag, Butuan City or Cebu. Asphalt mix may have to be sourced from the asphalting contractors in Butuan City along with the ‘equipment needed. ‘Temporary connection to the Tandag Water District line will be utilized during the physical development period for water needs during construction. Likewise, temporary connection to the SURSECO line will be utilized for electrical power needs. A bunkhouse cum warehouse will be constructed to be used during this period. F. Establishment of facilities The Eagle Ridge Residences has an allocated space of 2,793 sq.m. for parks and playground which will be landscaped. Playground equipment may be installed depending on the agreement with the duly organized Homeowners Association Space for a neighborhood multi-purpose center has also been allocated. This will contain the Clubhouse and retail establishments for the convenience of the residents. Environmental facilities consist of the sewage treatment plant and garbage disposal system. Sewer lines from households and other buildings will be connected to the sewage treatment plant. The design and operation of the system shall conform to the Fequirements and provisions of the Sanitation Code of the Philippines and other applicable rules and regulations. Eagle Ridge Residences shall have a sanitary and efficient refuse collection and disposal system in conjunction with the city garbage collection and disposal services. ‘A Materials Recovery Facility shall also be established within the subdivision for the convenience of residents. aG. Power and water systems and supply 1. Power Supply Systems Power supply would be adequate. The Surigao del Sur Electric Cooperative {SURSECO) which is the primary supplier of electrical power will be requested to issue certification that it will supply electric power energy to the project. Every individual dwelling unit will be connected to the primary source of power. {nstallation practices, materials and fixtures used shall be in accordance with the provisions of the SURSECO. 2. Water Supply System Eagle Ridge Residences will connect to the Tandag Water District system. Every dwelling unit will be served by an individual supply of water sufficient to meet the total hourly domestic needs of every household for any 8 hour period. The average daily demand (ADD) is 150 liters per capita per day. Distribution pipes shall conform to the standards required by the LWUA Provision for fire protection shall comply with the requirements of the National Fire Protection Code. For this purpose, a water tank with a capacity sufficient for the ADD of all households plus 20% fire reserve shall be provided. H. Subdivision maintenance Maintenance of the streets, parks and playgrounds, sewage treatment plant, and other subdivision facilities shall be provided by Pepperidge Corporation. 42VIL. Tax Aspect A. Taxes affecting the project ‘Taxes affecting the project indude Value-Added Tax (VAT) or percentage tax, local transfer tax, documentary stamp tax, and creditable withholding tax, all of which are connected to the sale and transfer of the subdivision lot. ‘The tax base of the 12% output VAT, the Documentary Stamp Tax and the Transfer Tax for the sale of real property is the highest among the (1) selling price, (2) Bureau of internat Revenue (BIR) zonal value, and the (3) assessed value by the city assessor. 1. VAT or Percentage Tax ‘A 12% value-added tax (VAT) is imposed on sale by developers of residential vacant lots with sales price exceeding Php 1,919,500. For sales of residential vacant lots with sales price of Php 1,919,500 and below, a 3% percentage tax is imposed. If two or more adjacent lots are sold or disposed in favor of one buyer, for the purpose of utilizing the lots as one residential lot, the sale shall be exempt from VAT only (but subject to percentage tax) if the aggregate value of the lots does not exceed P1,919,500.00. ‘The time of payment will depend whether the sale is an installment sale or a cash sale. A transaction treated as a cash sale makes the entire selling price subject to VAT in the month of sale. For installment sales, each installment payment actually and/or constructively received by the seller is subject to VAT. ‘The monthly VAT return should be filed and paid at the BIR on or before the 20th day of the month (manual filing) or 23 days following the end of the month under the Electronic Filing and Payment System (EFPS). The quarterly VAT return, should be filed on or before the 25th day of the month following the last month of the quarter (April 25, July 25, October 25, January 25). 2. Documentary Stamp Tax ‘The documentary stamp tax is an excise tax levied on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, rights, or property incident thereto. ‘The amount of taxis either fixed or based on the par or face value of the document or instrument. In the case of the sale of Eagle Ridge Residences subdivision lots, the rate shall be 1.5% of the selling price. ‘The tax is to be filed and paid at the BIR within five (5) days after the close of the month when the taxable document was made, signed, issued, accepted or transferred 3. Transfer Tax ‘Transfer taxis the tax imposed on any mode of conveying the ownership of a real property, either through sale, donation, barter, or any other mode. The tax rate varies depending on the location of the real property. For Eagle Ridge Residences, 43the transfer tax must not exceed 75% of the 1% of the tax base. Penalty for failure to pay the transfer tax is 25% of the amount due plus interest of 2% per month, not to exceed 72%. A surcharge of no more than twenty-five percent (25%) of the amount of taxes, fees or charges not paid on time is also collected The transfer tax should be filed and paid at the City Treasurer's Office within sixty (60) days from the date of the execution of the deed. 4. Creditable Withholding Tax Creditable withholding tax (CWT) is the tax which is withheld by the buyer from hhis/her payment to Pepperidge Corporation for purchase of an Eagle Ridge Residences subdivision lot. The tax is creditable against the income tax payable of Pepperidge Corporation. Under the tax rules, the following are the percentages to be withheld from Eagle Ridge Residences lot sale transactions: 3.0% of selling price for sales of lots over Php 500,000 but not more than Php 2,000,000 and 5% of selling price for sales of lots over Php 2,000,000. ‘The buyer's duty of withholding is dependent on the type of buyer. if the buyer is a resident of the Phil and is engaged in trade or business in the Phil, he/she is duty-bound to withhold the CWT. if the buyer is a resident of the Phil but is not. engaged in trade or business in the Phil (eg., employee], the EWT shall be deducted and withheld by him when paying the last installments). However, if buyer is a qualified non-resident citizen (e.g., OFW}, there is no duty to withhold the tax. This tax has to be filed and paid on or before the tenth (10th) day following the end of the month in which the transaction occurred 5. Income Tax The regular corporate income tax is 30% of the net taxable income of the corporation. This tax may be reduced by creditable withholding taxes. Income taxis to be filed and paid within sixty (60) days following the close of each of the first three (3) quarters of the taxable year whether calendar or fiscal year The annual income tax shall be filed and paid on or before the 15th day of the 4th month following close of the taxpayer's taxable year. Taxes Related to Commissions of Real Estate Broker 1. VAT If RE Broker is VAT-registered person: 12% VAT will be passed on to Pepperidge Corporation, and RE Broker must issue VAT receipt to Pepperidge upon receipt of payment of commission. If RE Broker is not a VAT-registered person: RE Broker will not pass on the 12% VAT to Pepperidge, and non-VAT receipt will be issued upon receipt ofcommission. RE Broker is subject to the 3% percentage tax on gross commission received 2. Withholding Tax Commission income of RE Broker is subject to expanded withholding tax (EWT) on the part of Pepperidge, which is remitted to BIR within 10 days of the following month, Non-withholding of tax will result in the disallowance of its commission ‘expense from gross income, whether deficiency EWT is paid or not during BIR audit. BIR Form 2307 (Creditable Withholding Tax) will be issued to RE Broker, which can be used as credit against his/her income tax liability. Income payments subject to EWT for RE brokers are as follows: 10% EWT up to Php 720,000 gross commission; 15% EWT, over Php 720,000 gross commission. Vill. Financing Aspect Financing for the project will be sourced mainly from the equity of the Pepperidge Corporation. Aside from the raw land valued at Php 44,434,000, Pepperidge will need to add cash in uneven increments totalling Php 95 million during the first year of the project based on the cash flow projections. Aside from capital infusion, revenues from sale of Eagle Ridge Residences lots will also contribute towards financing development cost, working capital, and the financing of contingencies such as overrun in construction costs- or delay in start of normal operations as well as seasonal peaks in working capital. Table 19 shows the projected sources and uses of the equity. Table 19. Sources and Uses of Funds Source ‘Amount (Php) Uses ‘Amount (Php) Equity 95,000,000 | Pre-Operating Costs 645,000 Physical Development: 85,853,432 Office Equipment 600,000 Working Capital 7,896,568 TOTAL 95,000,000 | TOTAL 95,000,000 45IX. Financial Aspect A. Major assumptions used 1. Project timetable Activity Project Study, Planning & Design Permits & Licenses Physical Development sales Promotion Year2 | Year3 | vear4 | Years 1 = Project studies, planning and preparation of detailed engineering designs will take at least one year before project operations. Project studies include project site surveys, site assessments, feasibility studies, geohazards impact identification, and environmental impact assessment. Preliminary designs will be prepared and revised based on studies conducted. The studies and designs will form part of the documentary requirements to be submitted to secure the Environmental Compliance Certificate from the Environmental Management Bureau, the Preliminary Approval and Locational Clearance (PALC) and subsequent Development Permit from the Tandag City Government and the Certificate of Registration (COR) and License to Sell (LTS) from the Housing and Land Use Regulatory Board. Physical Development will start on Year 1 and end on the 3% quarter of the 2 year. As soon as the COR and LTS has been secured, advertising and promotions and sales operations shall commence; this is projected to start on the 2 quarter of year 1 and will continue until end of year 3. Sales collections is projected to start also immediately after sales promotions and operations have started and will continue until year 5 when all installment payments have been collected. Maintenance activities will start after some facilities and infrastructure and will continue all throughout the project life 2. Sales volume ‘Number of Lots —Typeoftot | Yeara | Year2 | Year3 | TOTAL Comer Lots 3,6] 2s Regular Lots 3o[3a[ 23] _7] TOTAL 3] as[ 29 a3 ‘area ($0.m.) Typeoftot | Yeard | Year2 | YearS | TOTAL Comertots [2,081 | 3.468 [2,336 | 7,845 | Regular lots | 9.233 | 9.563 | 7.538 | 26,335 TOTAL 11274 | 13,031 [9875 | 34180 | 463. Raw materials to be used Raw materials to be used in land development and construction of facilities such as sand and gravel, cement, steel bars and other construction materials and supplies are mostly available in Tandag City. In case these are not available in Tandag City, the construction materials can be sourced from Butuan City or Cenu City. 4. Income tax rates The corporate income tax rate is 30%. Creditable withholding tax is 3 to 5% of, selling price. 5. General price levels Prices are expected to increase by 5% per year. 6. Sales Commissions Real estate brokers are entitled to 5% commission on gross selling price Commissions will be shared by the brokers to their salespersons based on their mutual agreement. B. Financial statements ‘The following projected financial statements: with supporting computations and subsidiary assumptions are presented in Exhibits 1 to 3. 1. Projected income statement 2. Projected cash flow statement 3. Projected balance sheet Projected income statements show that Pepperidge Corporation's Eagle Ridge Residences project will show profit from operations in the first year until the third year of project life. Starting in the 4% year when the only income is interest on the installments of buyers, net income on operations is negative while over-all net income, boosted by interest income, is positive. Cash outflows during the first two years are comparatively large compared to years 3 to 5 due to development costs. Pepperidge Corporation will invest additional funds to cover costs during the first year. Revenue from sales of lots, reservation fees, and interest income will be plowed back as additional funds to cover project expenses. ‘At the end of the 1* year, total equity of Pepperidge will increase to Php 160,563,308 from the initial Php 44,434,000 representing cost of raw land invested in the project. This will steadily increase until the 4" year but will gradually decrease starting in the 5® year when operating costs override the only remaining source of revenues - interest income — thus causing a deficit and decreasing equity. ‘The financial analysis in the next section covers break-even sales, capital, recovery, and earnings, net present value, and internal rate of return. a78 | a8eg soupy pn 10m (ers'e99't) Teve'ass) ovestt Te 5 5 ev ene (stg‘e99't) (6ve'89s) €z8'4oT ‘6t0r (tee'tze't) ror'ees't) Tse v0'ez TeeTLET es0'6rr'ss ‘SbOTSTL seers v65'DIZ ‘vOo'ste OLt'6iT c00'0 ooc'ee o0s'TE Obz'99 000'69 00'0r oog'ar ‘oot ooa'or s08'tsv’s ausz88'3 : : sor'vss'e zee'ots'> 000'9 00's cont ooazt 00°09 000'06 000'0E c8t'99 00069 (ojiqouw ooc'o¢ car's 00'e9 €99' ert coc'6evT Oee'TLe'T rac'ereter r68've8'C5 Brt'cee'Or fa owe cr 8 ow SBC 86 wos 000062 000'08r ‘o00'08E Op6'288' Le ogg'oze's6 o0L‘9pe'oR (dud) (ya) (dua) (4a) (aud) anuanay zen 102 oz0z sroz st07 Of sequieydes Cupue seed, Ssouspisey oBply 9/603 syuawayoys aworuy paya/o1g °T YqYXTov TET et ____ sea ovo eo ESTA ave eave Suypus eoumeg yte9 eec'sn’t ____vavara’t_____eaavec’et at t08'ez Sie een oTt slauiaeingsig (ie | ‘ST86 Bse'B9r's 6956836 TLe'sze'e (8 "yas) xey auicouy Wwr'tle't ea9'0ss't ste's90'Tt ost'zcv'er voc'tee'Tt sesuedeg Supeiedo 7 000'09 yuauidinb3 29440 Jo aseyaung o0¥'995'46 Je yes 05 waudojanag pur o0o'sv9 (9 ¥os) 51309 Buneredo-01g squoWosingsia yseD :6597, 985'606'86T 8Te‘c69"e6r eT cec'tst 9EO'LL'ETT sve'zee'ecT ‘aqgeyeny yse> jev01 “certs ___—eze een see 06 ee eatat aw ta sndhao0y yse9 en T083eT oevst 91507 ORE ET sassc0T : oco'osz o00'097 oBr‘etc's Gee'sze’ez ive'eze'es ee'TTL'86 Lid ces] remeony ouepeeh (o> : : ‘uouanuy sndesoy ys Pe eevee ovoteov'zat Testo seorvse'rt Suyuuitog ‘umes te (dud) (aud) (ud) (dua) zn veo vor sro 0€ sequiaidas jo sy secuopisoy eBpry 91603, squauiayoas mold 4509 pa322I01g 7 3IqIUKgos Tac Tov 66t Seeaee tat COREL TOT SSC Lee e5t Ser tee TST rev'ees0st_____o0'rEv by _ ro 85017 667 (er9'e90"T) oob'ege'zt $5 128 85t Sertae Tet $51'.20'951_ ser'tee‘tet z — orrvert Tevoae) ‘oerieT Etc TOs 86r Tae ear'eer EV vst Zot wees zee'se ‘66 IT zee seeosz 00'st9 an wt is9T ‘000'07 asst L99'Tt ara arowaer weve eet ‘ 96S'EE ‘zz zat oez'er’9 6tS'prs'9e ‘LET'DOT'LET ‘9E8'800'76T Ovo'soL'79T ‘Sb0're6'TT (dug) (dud) (e4a) (eu) (844) z0z 107 ozcz 6102 soz ¢ soquerdas jo sy seauspisey eDpry 1023 syaays apuojog payzelorg °€ wqI4XI uno"? S3uurievnTL0L Burpua ‘Auind3 (a2yeq) sue paurerey reudeo dn preg quounsanul jeuonippy Buruui8aq “Anda Nanos eaqgigen jee, aeAed xe), 2020) Siassw W101 13809 Bunesado-e1d 10N onezniowy 5537 1509 Bunesedo-aid WEY OTS suauidinbg 92440 10 uonepaidag paremnunssy 2527 sypssy ju9.4n9 jen, (2-495) aiqenienay asas03y) yas) Avowenay (1-425) ajgeniazey sunosoy se SY IETS STassvSchedule 1 ‘CORNERLOTS No. of Lots Total Area (sq.m) Seling Price/eq.m. Accounts Receivable bog ‘Add: Sales Total Accounts ReceWvable Less; Collections ‘Accounts Receivable end REGULAR LOTS No.of Lots Total Area (sa.m.) Seting Price/sq.m. ‘Accounts Recenable beg ‘Add: Sales Total Accounts Receivable Less: Collections ‘Accounts ReceWvable end AULLOTS No.of lots Total Area (sa.m.) Accounts Receivable beg dd: Sales “Total Accounts Receivable Less; Collections. ‘Accounts Receivable end ‘Assumptions: Projected Yearly Sales, Receivables, and Collections 2oe 2,041 7,700 (Php) 15,715,700, _ 6,355,567 960,133 0 9.233 7,000 (he) 64,631,000 (64631,000 25,621,167 39,009,833 Py nam he) 80,346,700 180,346,700 3476732 2019 808s, (hp) 9260,123 79,038,780 36,898,913 24,349,710 | 12,549,209, Py 9563 7,350 (hp) 39,009,833, 6 13.031 (rp) 47 369,957 146,196,797 98,711,270 47 485, 527 2020 6 2.336 8490 (9) 12549203 19,227,640 32,381,863 24472807 _ 7,300,036 2 7539 7,700 (be) 34,936,323 38,050,300 92,996,623 oat (Ph) 7,903,036 7,909,036 6,915,989 993,047 (Phe) 28,635,483, 28,635,483 23,635,483 2 9875 (Phe) 47,485,527 98,326,830 77,882,340 125,368,467 198,923,947 36544519) (Phe) 36,544,519, 36,544,519 20,825,229 2022 (Pre) 993,087 993,087 993,087 ° (>p} 5,726,233 5,726,233 5.726.233 (Phe) 6,719,280 6,719,280 6,719,280 11. Terms of sale ~ Bank and in-house financing: 20% downpayment upon signing of contract; balance payable in equal payments for 24 months; interest at 6% per 2. PagBIG Financing: one month for buyer to present documents to Pepperidge; one month for Pag-1BIG to process documents; take-out on third month 3. About 50% of financing will be from Pag-IBIG to cover housing loans of OCWs, miners, and yupbies Feasibility mudy ~ Eagle Ridge Residences Page | 51Schedule 2. Reservation Fees 2018 2019 2020 2021 2022 (he) (Php) (Php) (Php) (Php) No. of Lots Reserved 38 46 23 - - Reservation Fee/Lot 40,000___10,000___10,000 : : Total Reservation Fees 425,000 770,000 1,005,000. Schedule 3. Cost of Sales and Inventories 2018 2019 2020 2021-2022 (Phe) (Pho) (Ph) (Php)—(Php) Inventory Cost, beginning 444,434,000 101,662,652 43,877,761 ‘Add: Development Cost’ _ 97,566,400 Total Costs 742,000,400 101,662,652 43,827,761 Less: Cost of Sales Raw Land 14,656,200 16,940,300 12,837,500 Development Cost _25,681,548 40,884,591 30,990,261 Total Cost of Sales 57,834,891 43,827, 76 Inventory Cost, ending 43,877,761 Schedule 4. Salaries, Wages, ond Benefits 2018 2019 2020 2021 2022 (he) (Phe) (Php) (Php) (Php) Manager 240,000 252,000 264,600 277,920 291,840 Secretary/Bookkeeper «144,000 151,200 158,400 165,600 174,000 Cashier 144,000 151,200 158,400 © 165,600 174,000 Utility Workes (2) 168,000 176,400 185,280 194,400 204,120 Security Services (4) 432,000 453,600 476,280 500,160 __525,120 SubTotal 7,282,960 1,303,680 1,369,080 Benefits (7.5%) 88830 93,222 32,343 33th Month 98,700 103,560 __ 108,640 Sub-Total 187,530 196,802 140,983 ToTAL 3,371,930 _ 1,439,762 52Schedule 5. Office Equioment and Depreciation Expense 2018 (Php) Office Equipment Computer & Printer 40,000 Fax/Scanner/Photocopier 20,000 Total Acquisition Cost 60,000 Cost of Equipment (Phe) 60,000 Life in years 3 Annual Depreciation (Php) 20,000 Months to be allocated 2 Monthly Depreciation (Php) 1667 Schedule 6. Pre-Operoting Costs and Amortization 2018 (Php) Pre-Operating Costs: Office Supplies Professional Fees Permits & Clearances Other Expenses ‘otal Pre-Operating Costs Pre-Operating Costs life in years ‘Annual Amortization (Php) Months to be amortized Monthly Amortization (Php| Schedule 7. interest Income, Receivables, ond Collections 201s = 20192020 20212022 (Php) (Php) Php) (Phe) (PhD Interest Receivable, beg. - 239,350 237,428 182,723 33,596 ‘Add: Interest due for the month 1,265,035 2,609,800 2,653,744 1,019,913 107,823, ‘Total interest receivable 1,265,035 2,849,150 2,891,171 1,202,635 141,419 Less: Collection 1,025,685 _ 2,611,722 449 141,419 Interest Receivable, end 239,350 __ 237,428 Schedule 8. income Tax Expense, Payables, and Payments 2018 2019 20200 «0212022 (Php) (Php) (Php) (Php) (Php) Income Tax Payable, beg 1,724,163 801,821 98,266 ‘Add: Income Tax Current Month 9,089,434 8,956,375 7,709,284 Total income Tax Payable 9,089,434 10,680,538 8,511,105 Less: Payment (refund) 7,325,271 9,878,717 8,412,839 Income Tax Payable end 724,163 53C. Financial analyses 1. Break-even point (BEP) 0) Profit break-even point—volume and soles ‘The purpose of the BEP analyses is to find out the sales volume (quantity), or the selling price per unit, at which a project will just break even (no gain or loss). In Year 2018, for example, the project needs to sell at least 664 square meters of lots or have total sales of Php 4,645,584 in order to break-even. The BEP volume and selling price for 2019 and 2020 are 838 sq.m., Php 6,158,490, and 755 sq.m., Php 5,813,361, respectively. 1 Table 20. Computation of Profit BEP volume and sales ] Apr 2017-Mar | Apr 20i8-Mar | Apr 2019-Mar | 2018 2019 2020 [2] Unit Seling Price (Php) 7,050 | 7380 7,700 | [2] Sales (Php) 730/346, 700 | 98,576,830 | 77,882,940 [3] Total Fixed Costs (PhD) 1,787,603 | 1,844.934 | 1,889,116 a} ie Costs Php) 49,979,352 | 69,634,111 | 59,173,713 [[stAcee of land for sale (sa.m) 11,2741 33,031 | 9,875.00 | [6] Unit Variable Cost (Php) (4/151 4az3as| 5343.73 _5,s0ae8 T7] Total Contribution Margin (Php) (2) 14) 30,367,348 | 26,692,710 | 24,700,227 Ta] Average Unit Contribution Margin(Pho| (71/151 2.698 2,202 2,502 [OLBEP Units (59.m,) {3/18} ese [755 [20] B€ Sales (Php) [9] x [1] 6,158,490 | 5,813,361 Since the projected sales volumes of 11,274 sqm. in 2018, 13,031 sq.m. in 2019, and 9,875 are higher than the BEP sales volumes, then the project is expected to gain. b) Cash Break-Even Point - volume and selling price The cash break-even point calculates the volume at which cash inflows is equal to cash outflows. When sales volume is greater than BEP, then cash inflow is higher than cash outflow; in other words, there is cash left over for operations, For instance in year 1 (April 2017-Mar 2018), the project has to sell at least 590 square meters of lots in order to break even. The BEP sales is Php 4,132,317. In year 2, BEP sales volume is 731 sq.m. while in year 3, BEP sales volume is 661. (Table 21). 54Table 21. Cash BEP Volume and Soles ‘Ape 2017-Mar | Apr20i8-Mar | Apr 2013-Mar | 2018 2020 | [i] Unit Selling Price Php) 7,000 7700 [2] sales rp) 30,346,700 ESET [ [3] Total Fixed Costs (Php) 1,580,100 1,554,122, [4] Total Variable Costs (Phe) 49,979,352 33,173.71 [5] Area of land forsale (sa.m) 31,274 9.875 | 16} Unit Variable Cost (Php) (4/15) | 433.15] 5.34373 | 5,384.68 [7] Total Contribution Margin | (Php) (2) 4) 30,367,348 | 28,692,719 | 24,709,227 | Ta] Average Unit Contribution Margin (Php) _(71/ {51 2,694 2,202 2,502 [5] BEP Units (sq.m) [3] /(8] 590 | 731 esi | [30] BE Sales (Php) (9) x [1] aiszsi7| 5374033 5,080,216 | 2. Capital, recovery, and earnings Several financial ratios are presented to aid in the financial analysis as shown in Table 22 below. Table 22. Capital, Recovery, and Earnings Financial Ratios Financial Ratio Formula Result Cash payoff period — I months ‘Accounting Rate of Average profit/initial investment 14% Return (ARR) Retum on investment | Sales Value - Costs of Investment 23.6% ~ Cost Method (RO!) Costs of investment Gross Profit Margin ‘Sales Revenue — Cost of Sales Yi — 50% (GPM) | Sales Revenue v2- 41% | Y3~ 40% Net Profit Margin Net income ofter Taxes Yi 26% (NPM) Total Revenues v2— 21% ¥3~ 23% ‘Net Present Value Present Value of Net Cosh Flows— | + Php 47,321,547 (NPV) Amount Invested | Internal Rate of, MS Excel IRR Function 57.78% Return (IRR) a) Cash payoff period As an appraisal tool, the cash payoff (or payback} period shows how fast the investment can be recovered. In the case of Eagle Ridge Residences, the cash investment of Php 95M and cash paid for raw land amounting to Php 44.434M can be recovered in about 1 year and 11 months given the projected net cash inflows. 55b) Accounting Rate of Return The accounting rate of return (ARR) is the amount of profit, or return that is expected based on an investment made. Accounting rate of return divides the average profit by the initial investment to get the ratio or return that can be expected. ARR for Eagle Ridge Residences project is 14%, far higher than current bank interest rates on time deposits but lower that the real estate development industry standard of 20%-30% ROI. ©) Return on Investment ~ Cost Method ROI indicates the percentage of invested money returned to an investor after the deduction of associated costs. The cost method calculates RO! by dividing the equity by all costs. At 23.6%, ROI for Eagle Ridge Residences Is at par with industry standard of 20% to 30%. d) Gross Profit Margin (GPM) Gross profit margin is financial metric used to assess 2 firm’s financial health by revealing the proportion of money left over from revenues after accounting for the cost of sales. Gross profit margin” or GPM serves as the source for paying additional expenses and future savings. For Eagle Ridge Residences, the GPM of 50% in year 1 is sufficient to carry its operations through to the second year while the GPM of 41% for the 2" year is also adequate to carry it through the third year. 2) Net Profit Margin The net profit margin tells how much profit a company makes for every Php LODit generates in revenue. Profit margins vary by industry, but all else being equal, the higher 2 company's profit margin compared to its competitors, the better. The net profit margin for Eagle Ridge Residences indicate a net profit (after taxes) of Php 0.26 or 26 centavos for every Php 1.00 revenue generated in the initial year. With the increased operating costs in the second year when sales Promotions are at its peak, the net profit margin decreased to 21% or a net profit of 21 centavos per Php 1.00 revenue. By the third year, with less sales promotion cost, the net profit margin increased to 23%. 3. Discounted Cash Flows. a) Net Present Value (NPV) The NPV of an investment is the Present Value (PV) of the expected cash flows created by that property less the PV of the amount invested. To calculate NPV, the minimum desired rate of return or discount rate is set at the minimum industry ROI of 20%. The period is five years. 56In summary, based on the financial anal The NPV is a positive Php 47,321,547 which means investing is this project is acceptable. investments with a zero or positive NPV are attractive as they clear the “hurdle” established by the discount rate - those with positive NPV clear the hurdle with room to spare. 4) Internal Rate of Return (IRR) The Internal Rate of Return (IRR) is the discount rate which yields a zero Net Present Value (NPV) for any given stream of cash flows. The project is acceptable if the IRRis greater than the minimum desired rate of return. IRR for Eagle ridge Residences project is 57.78% which is greater than the 20% minimum desired rate of return, therefore, the project is acceptable. lyses conducted, the project is shown to be profitable, viable, and feasible. 357X. Social Desirability of the Project A. Revenues to Government and Utility Companies Revenues can take the form of fees for permitting, zoning, and utilities, or they can reflect sales, income, or property taxes generated by construction-related economic activity. ‘At a minimum of Php 500 per month for water, the revenues for 113 households per month is Php 56,500 per month revenues to the Tandag Water District. For electricity consumption, at a minimum of Php 2,000 per month, revenue from electricity consumption for 113 households total Php 226,000 per month. Value-added taxes in connection with the sale of residential lots are estimated at Php 20,170,000 within years 1 to 3. Corporate income taxes from Eagle Ridge Residences project alone total Php 25.715 million. This does not include VAT and income taxes ‘on commissions of real estate brokers. “The real property taxis the most important tax revenue of local governments. It now accounts for 13.36 percent of total revenues of LGUs Collections from the real property tax are shared with smaller local government units that compose the province or the city. In the case of Tandag City, the barangay gets ‘one-third and the city retains two-thirds. With the improvement of the Eagle Ridge Residences project area, lot value will increase within the project and the adjacent properties redounding to the increase in assessed value which consequently will increase the amount of taxes payable on the real property. ‘A Special Education tax (SEF) of one percent is imposed on the same base, i.e. assessed values of real properties. The proceeds are earmarked for public education. (The yield of this tax is included in the RPT revenue figures.) Inaddition, Tandag, City government can impose a tax on the transfer of real property ‘ownership at one percent of the selling price or approximately Php 1.9 milion. B. Employment Housing in the Philippines is generally labor-intensive, This means that by more low- ‘wage workers can be employed, benefiting them directly and benefiting many others who gain from the multiplier effect. For example, to build a low-cost housing unit, no less than eight workers are needed for an estimated three weeks or a total of 124 man-days. This could possibly be double for medium-cost housing. At 248 man-days at the minimum wage of Php 280, the employment income generated is Php 69,440/housing unit. For 113 housing units, this totals to Php 7.8 million. Given that semi-skilled and skilled workers are to be employed, this is a low estimate. In addition, land development work and facilities construction would require heavy equipment operators, semi-skilled and skilled construction workers, and laborers 58which would also increase employment income generated at an estimated Php 29 million, C. Related industries The sales of residential lots naturally progresses to the construction of residential buildings. According to rule-of-thumb reckoning, real estate development and, in Particular, medium and low-cost housing create a 16.6-percent multiplier effect on overall economic growth. Because of this multiplier effect, every peso spent for one housing unit is equivalent to 16.6 pesos added to the gross national product as aresult of the various industries involved in the construction of the housing units. Building homes is such a complex enterprise that it requires the participation of so many sectors. All the elements needed to put a roof over a family’s head come not just from developers, architects, engineers and construction workers, but also from manufacturers of everything from concrete nails and aluminum sidings to window Panes and paint. After the house has been built, painting and finishing touches are undertaken after which furniture and other appliances are then purchased. Thus, selling a residential lot leads to a number of benefits which multiplies its effects. 59XI. References City Government of Tandag. 2015. Community-Based Monitoring System Census City Government of Tandag. Comprehensive Land Use Plan Commission on Filipinos Overseas (CFO). 2014 Commission on Filipinos Overseas Compendium of Statistics on international Migration. March 2016. ISSN 2345- 8100. http://www.cfo.gov.ph/ Department of Agriculture. Surigao del Sur Abaca Investment Plan 2015-2018, http://drive.daprdp.net/iplan/pcip/PCIP+of+Surigao+de!+Sur+(Abaca) pdf. Accessed on January 17, 2017. Philippine Statistics Authority. 2015 Survey of Overseas Filipinos. May 2016. 60