CHAPTER VIII

MANNER OF FINANCING

This chapter is an elaboration of the concept on economy anda detailed

explanation of financial requirements needed for the proposed Las Puentes de
Camalig: A Cultural Heritage Retreat and Tourism Complex to be able to come to
being.

8.1 SOURCE OF FUNDS

The proposed Las Puentes de Camalig: A Cultural Heritage Retreat and

Tourism Complex will gather its funds from the partnership of Local Government
Unit of Camalig,Albay together with private companies as investors. In addition,
the creation of Albay-Masbate-Sorsogon (ALMASOR) alliance will be an
opportunity for possible support funding for the said tourism infrastructure project.

8.2 PROBABLE CONSTRUCTION COST

The cost will be based on the current market price assessments and
estimated values of construction materials, equipment and professional fees that
will give computation of the possible funds needed for the proposed Las Puentes
de Camalig: A Cultural Heritage Retreat and Tourism Complex.

8.2.1 BUILDING COST

Discussed below is the approximate Building Construction Cost based on
the total buildable area and its corresponding cost per square meter.

Table no. 30 - Building Cost

TOTAL AREA COSTRUCTION
BUILDING TOTAL COST
(SQ.M.) COST (PHP)
Admin Building 1008.345 20,000 20,166,900
Cabin Type 1
29.64 15,000 11,115,000
(3 pax)
Cabin Type 2
33.760 15,000 5,064,000
(6 pax)
Group Bunker (7-
42.12 20,000 3,369,600
10 pax)
Group Bunker (25
85.02 20,000 13,603,200
pax)

113
 Table no. 31 - Building Cost
TOTAL AREA COSTRUCTION
BUILDING TOTAL COST
(SQ.M.) COST (PHP)
Spa Building 899.08 20,000 17,981,600.00
Amphitheater 358.80 20,000 7,176,000.00
Maintenance/Utility
160.810 15,000 2,412,150.00
Building
Function Hall 442.650 20,000 8,853,000
Worship Hall
Staff House
Public Toilet 18.655 15,000 279,825.00
APPROXIMATE BUILDING CONSTRUCTION COST ₱ 109,066,925.00

8.2.2 LAND DEVELOPMENT COST

Land Development Cost is approximately around 30% of the Building

Construction Cost.

Table no. 32 - Land Development Cost

APPROXIMATE BUILDING PERCENTAGE OF LAND DEVELOPMENT
CONSTRUCTION COST ABCC COST
₱ 109,066,925.00 30% ₱ 32,720,077.00

8.2.3 FURNISHING AND EQUIPMENT COST

Furnishing and Equipment is approximately 15% of the Total Building

Cost.

Table no. 33 - Furnishing and Equipment Cost

APPROXIMATE BUILDING PERCENTAGE OF FURNISHING AND
CONSTRUCTION COST ABCC EQUIPMENT COST
₱ 109,066,925.00 15% ₱ 16,360,038.80

8.2.4 PROFESSIONAL FEE

Based on the UAP DOC. 202, the proposed project falls under Group 3,
which is classified as an “exceptional structure”. It requires 4 Million + 7% of
excess of 50 million of the Project Construction Cost ranging from P50 million –
P100,000 million.

114
 Table no. 34 - Professional Fee
PERCENTAGE OF
APPROXIMATE BUILDING MINIMUM BASIC FEE TOTAL
CONSTRUCTION COST (Over 100-200 PROFESSIONAL FEE
Million)
7.5 Million + 6% of
₱ 109,066,925.00 ₱ 8,044,015.50
excess of 100 million

Therefore, the total amount of Professional Fee is ₱ 8,044,015.50.

8.2.5 PROBABLE PROJECT CONSTRUCTION COST SUMMARY

Stated in the Probable Project Construction Cost is the summary of the
Total Building Cost, Land Development Cost, Furnishing and Equipment Cost,
and Professional Fee.

Table no. 35 - Probable Project Construction Cost Summary

DESCRIPTION COST
Building Cost ₱ 109,066,925.00
Land Development Cost ₱ 32,720,077.00
Furnishing and Equipment ₱ 16,360,038.80
Professional Fee ₱ 8,044,015.50
PROBABLE PROJECT CONSTRUCTION COST ₱166,191,056.00

8.3 SOURCE OF INCOME

The following are the rentals or fee for guest accommodations and
facilities of the proposed Las Puentes de Camalig: A Cultural Heritage Retreat
and Tourism Complex. The researchers multiplied the number of users of each
building to it’s corresponding income or rentals, the answer is then multiplied
again into the assumed number of 365 days to get the annual income.

Table no. 36 - Source of Income

FACILITIES
USER
BUILDING RENTAL/FEE ANNUAL INCOME
(PER DAY)
Restaurant 40 250 per head 3,650,000.00
Souvenir Shop 7 500 per head 1,277,500.00
Cafeteria 50 300 per head 5,475,000

115
 Table no. 37 - Source of Income
USER
BUILDING RENTAL/FEE ANNUAL INCOME
(PER DAY)
3,000 (over-all
Worship Hall 100 rental fee x 48 144,000.00
(weeks)
Spa Building 100 300 per head 10,950,000
10,000 (over-all
Amphitheater 150 rental fee x 48 480,000.00
(weeks)
15,000 (over-all
Function Hall 150 rental fee x 48 720,000.00
(weeks)
TOTAL INCOME ₱ 22,696,500.00
Assuming that every day, the facilities cater its targeted users per day.

Table no. 38 - Source of Income

ACCOMMODATIONS
USER INCOME PER
BUILDING RENTAL/FEE
(PER DAY) SEASON
PEAK SEASON (177 DAYS)
VIP Suite (6 pax) 6 1,500 per head 6,372,000.00
Cabin Type 1 (1-3 pax) 3 1,000 per head 13,275,000.00
Cabin Type 2 (4-6 pax) 6 1,000 per head 10,620,000.00
Group Bunker (7-10
pax) 10 900 per head 6,372,000.00

(5 Full
Group Bunker (25 pax) bunkers per 900 per head 41,062,500.00
year)
LEAN SEASON (188 DAYS)
VIP Suite (6 pax) 6 1,500 per head 3,384,000.00
Cabin Type 1 (1-3 pax) 3 1,000 per head 6,768,000.00
Cabin Type 2 (4-6 pax) 6 1,000 per head 5,640,000.00
Group Bunker, (7-10
pax) 10 900 per head 3,384,000.00

TOTAL INCOME ₱ 96,877,500.00

116
8.3.1 OPERATIONAL COST

Table no. 39 - Operational Cost

EMPLOYEE NO. OF MONTHLY
TOTAL
CLASSIFICATION EMPLOYEE SALARY
Administrator 1 30,000.00 ₱ 30,000.00
General Manager 5 25,000.00 ₱125,000.00
Accountant
Front desk Agent 3 15,000.00 ₱ 45,000.00
Cafeteria Manager 2 25,000.00 ₱ 50,000.00
Room Service Crew 20 20,000.00 ₱ 400,000.00
Maintenance Clerk 10 15,000.00 ₱ 150,000.00
Janitor/s 20 15,000.00 ₱ 150,000.00
Therapists 20 25,000 ₱ 500,000.00
Security Guard 8 25,000.00 ₱ 200,000.00
Shuttle Driver 6 15,000.00 ₱ 90,000.00
Farmer/Gardener 10 15,000.00 ₱ 150,000.00
Tour Guide 10 10,000.00 ₱ 100,000.00
TOTAL OPERATIONAL COST ₱

Total Salary per Month X 12 Months = Annual Employment Salary

₱1,990,000.00 X 12 = ₱ 23,880,000.00Total Annual Employment Salary

8.3.2 MAINTENANCE AND OPERATING COST

Maintenance and operating cost are computed approximately 15% of the

Total Annual GrossIncome.

Table no. 40 - Maintenance and Operating Cost

PERCENTAGE OF
TOTAL ANNUAL GROSS MAINTENANCE AND
MAINTENANCE AND
INCOME OPERATING COST
OPERATING COST
₱ 119,574,000.00 15% ₱17,936,100.00

117
8.3.3 MARKETING EXPENSES

The marketing expense is approximately 10% of the Total Annual Gross

Salary.

Table no. 41 - Marketing Expenses

PERCENTAGE OF
TOTAL ANNUAL GROSS MARKETING
MARKETING
SALARY EXPENSES
EXPENSES
₱ 119,574,000.00 10% ₱11,957,400.00

8.3.4 SUMMARY OF TOTAL EXPENSES

Table no. 42 - Summary of Total Expenses

ANNUAL GROSS SALARY ₱ 23,880,000.00
MAINTENANCE AND OPERATING COST ₱ 17,936,100.00
MARKETING EXPENSES ₱ 11,957,400.00
TOTAL EXPENSES ₱32,281,500.00

8.3.5 TOTAL ANNUAL NET INCOME

Total Annual Net Income is achieved by subtracting Total Annual Gross

Income by Total Expenses.

Table no. 43 - Total Annual Net Income

TOTAL ANNUAL GROSS INCOME ₱ 119,574,000.00
TOTAL EXPENSES ₱ 32,281,500.00
TOTAL ANNUAL NET INCOME ₱87,292,500

8.4 RETURN OF INVESTMENT

Return of Investment is determined by dividing the Total Project

Investment by Annual Net Income.

Table no. 44 - Return of Investment

TOTAL PROJECT INVESTMENT ₱199,259,483.60
ANNUAL NET INCOME ₱ 87,292,500
YEARS OF RECOVERY 2.28 or 3 years

118