WorldParadiseEstanciaDev'tConcept

Prepared for ATIDCO by: Maximino P. Zurbito, Jr., A.B.;Ll.B./J.D./Ph.D.

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The WORLD PARADISE RETIREMENT VILLAGE ECO-ORGANIC AGRI TOURISM PARK & RESORT CUM MARINA YACHT CLUB The TOURISM ENTERPRISE ZONE Under R.A. 9593, the National Tourism Act of 2009 Bgys. Pa-aon, Tacbuyan, Bayuyan and Luguingot Island Estancia, Iloilo, Philippines EXECUTIVE BRIEF DEVELOPMENT CONCEPT DEVELOPMENT CONCEPT By: Maximino P. Zurbito, Jr., A.B.; C.T.E.; Ll.B./J.D./Ph.D. CONSULTANT I. INTRODUCTION A. The Development Concept The Development Concept for the project started sometime in 1995, when the project owners and proponent the family of Alberto and Melina Requinto entertained the idea of establishing the first of its kind tourism service- oriented facility in Estancia, Iloilo. The Department of Tourism Region VI in its letter endorsement of the proposed project said: “The Department of Tourism Region VI is pleased to endorse the proposed Resort/ Retirement Village located at Bgy. Pa-on, Estancia, Iloilo for domestic and foreign investment. It may be noted that the area has been included in the Regional Development Council Capital Investment Plan for 1995 in support of the government’s thrust for development. The project site has also been recommended by the Regional Development Council Study conducted by the COWI- CONSULT and financed by the United Nations Development Program as one of the two areas in West- ern Visayas for tourism investment.” Please refer to Department of Tourism Letter Endorsement. However, due to the uncooperative and unpleasant local political environment during that period (1996), the project owners mothballed the project and concentrated in their commercial fishing business in Zamboanga City, where they have now the biggest privately reclaimed area in the waterfront of Bgy. Caragasan. This reclaimed area is the homeport of the project owners’ own, as well as the other privately-owned commercial fishing vessels operating in the fishing waters of Zamboanga Peninsula. Also, in the same reclaimed area is a mini-shipyard owned and operated by the project owners (Alberto and Melina Requinto) that fabricates steel-hulled fishing boats and an ice plant that serves the requirements of the owners in preserving their fresh fish catch. The same Requinto family is the owner of various business interests that are currently operational and based in Zamboanga City under the corporate name of ATIDCO-AMR Trade and Industrial Corporation. These businesses/ enterprises include the following: Zamboanga City, Philippines:  Fleet of Steel Hulled Deep-Sea Fishing Vessel;  Shipyard for Ship Repair and Construction;  A 12 Hectare fully Reclaimed Area duly registered with the Philippine Reclamation Authority;  Two (2) Medium and Low Cost Housing Subdivisions;  Fish Canning Factory; and,  Gasoline Stations; Estancia, Iloilo, Philippines:  Wholesale and Retail Hardware Shop; and,  Gasoline Station The passage and implementation of R.A. 9593, otherwise known as the National Tourism Policy Act of 2009, have given the impetus for the owners to revisit the proposed project and thus, this concept of development is pre- pared as the basis for the project implementation. 1

II. Indicative Project Development Cost/Fund Requirement Amount: The Total Development Fund required for the Tourism Infrastructure and Facilities within the project sit is estimated at PESOS ONE BILLION (PHP1,000,000,000.00 or USD TWENTY MILLION (US$20,000,000.00) at the current costs. III. The Proposed Project Site Location The proposed project site location is shown in the next page. 2

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IV Project Site Brief Description A. Estancia, Iloilo, Philippines The project site is the Municipality of Estancia situated in the Northeastern Tip of Panay Island, and North of Iloilo Province, which is more or less 138 Kms., from Iloilo City the Provincial Capital as well as the Regional Center of Region VI-Western Visayas. Estancia is the recognized trading center as well as the entry and exit point of travelers from and to the island provinces of Masbate, Cebu and Samar to/from the provinces and cities within Panay Island. Dubbed as the little Alaska of the Philippines by General Delano Roosevelt when he visited the town immediately after the Second World War, it was Estancia where the first US Floating Cannery was established and operated in the early 50’s. Currently its water-front is the host to the more than a thousand small to medium sized fishing boats that unload and trade their fresh fish catch in the Estancia Fishing port daily and cargo vessels that load/unload cargoes of differ- ent nature for Manila and other adjacent regional and provincial centers. Estancia is acknowledged being the busiest trading center in Northern Iloilo. Estancia has its own port regularly served by leading domestic inter-island shipping lines prior to the operation of the nautical highway ro-ro transport system but still the terminal point of the latter from Manila. In the pipeline is an appropriation of DOTC-CAAP for a feeder airport that is planned to be constructed either in the Mu- nicipality of Balasan which is 7 Kms., from Estancia) or Carles with a distance of 12 kms. Currently, air travelers to and from/to Estancia are regularly served by leading domestic air carrier via Iloilo In- ternational Airport in Cabatuan, Iloilo some 143 Kms., south; and or Roxas Airport, Roxas City, Capiz 65 kms., towards the north. On the other hand, the Feeder Port of Estancia serves as the exit and entry point for travelers to and from the islands of Gigante Islands that is now gaining more interests from domestic and foreign tourists and holiday seekers; and, Sicogon Island that was known in the late 70’s as the best tropical island where 3 foreign giant resort developers have started and now ongoing development in the island. The Municipality is one of the badly hit by Super Typhoon Yolanda that devastated almost all the horizontal and vertical structures in town and caused the oil spill from the power barge owned by NAPOCOR (National Power Corporation) resulting to the evacuation of coastal residents to the evacuation site (Tent City) where they are now staying and mainly dependent on aids of relief goods from local government and international humanitarian agencies for their daily subsistence. B. Public Utilities, Facilities and Infrastructure Available 1. Water Supply – Estancia Water District; 2. Electricity – Iloilo Electric Cooperative (ILECO); 3. Hospital/Health Clinics: a) Leon Ganzon District Hospital; b) Seventh Day Adventist Clinic; C. Transportation (Land Transport Terminal); Land: To and From the Provinces of Panay a. Ceres Bus (Airconditioned/Non-Air Con) every 30 Mins.; b. Air-conditioned/Non-Air Con Vans; c. Jeepneys. To and From Metro Manila via Batangas, Mindoro and Aklan: 1. Nautical Highway Ro-Ro System Land/Sea/Land (16 hours); Sea (Estancia Port and Estancia Feeder Ro-Ro Port): To and from Metro Manila (18 hrs.) 2. Inter-Island Shipping Lines (Negros Navigation/To Go) temporarily suspended operation; To and from the Island Provinces of Masbate, Cebu, the Island of Sicogon and Gigantes : 1. Regular Motorized Outrigger Bancas; Air: ü Via Iloilo International Airport (143 Kms.):  International Origin/Destination: From/To: Singapore Silk Air; PAL; From/To: Seoul  Domestic Destination: PAL - From/To Manila, Cebu, Davao, Zamboanga and Puerto Princesa PAL Cebu Pacific; Zest Air - From/To Manila, Cebu, Davao and Gen. Santos City; Air Philippines – From/To: Manila  Via Roxas Airport (65 Kms.): From/To Manila: PAL, Cebu Pacific;  Via Sicogon Island Airport (15 Mins. Via Fast Craft) From/To Manila: Swift Air 4

 Accommodation Facilities;  Endielinas Inland Resort 36 Rooms;  Pa-on Beach Club and Resort 48 Rooms;  Sandrine Inn;  Endielina’s Inland Resort (200 Capacity);  Pa-on Beach Club and Resort (200 Capacity) G. Attractions: Mainland: Estancia Fishing Port; Japanese Garrison (Marker to be developed); Roosevelt Landing Site (Marker to be developed); Pa-on, Tanza/Jolog Beaches; Requinto Family owned Mini-Forest, Tacbuyan and Pa-on; Apang Hills, NIPSC-Northern Iloilo Polytechnic State College Campus. Islands: Luguingot Island Beaches (partly owned by the project owners/proponent and the site of Paraiso sa Isla. Please refer to Site Development Perspective; Isla de Bayas Beaches (10 minutes via a wooden outrigger motorized banca locally known as pump-boat); Islet of Magusipol Beaches (10 Minutes via wooden outrigger motorized banca locally known as pump-boat) ; Islet of Mangalangcalangan Beaches (10 mins. via wooden hull outrigger motorized banca locally known as pump- boat) ; Sicogon Island, Carles, Iloilo ( 20-30 Minutes via wooden hul outrigger motorized banca locally known as pump-boat) where the site of three (3 ) International class resorts of a Singapore-based international resort operators now under on-going construction. Gigante Islands, Carles, Iloilo site of Isla Encantada Escaňo Eco-Park and Beach Paradise; and, a dozen of virgin/ uninhabited islets with mile long sandbars, caves, forests, high rise cliffs and the famous Tanke inland lagoons (1 Hr. 45 Minutes via wooden hull motorized banca known as pumpboat.) g. Educational Institutions: College (Tertiary) : Northern Iloilo State University (NISU) Secondary (High School): Public: NISU—Northern Iloilo State University West Campus; Estancia National High School; Private: King of Glory Christian Academy (Elementary & Secondary); Hijas de Jesus High School (Elementary and Secondary); Seventh Day Adventist School (Elementary) V. The EFFECTS of Super Typhoon Yolanda (Haiyan) Estancia is one of the most badly hit by Super Typhoon Yolanda (Haiyan), which devastation de- stroyed the thousands of family homes as well as fishing boats serving as the main source of living of families along the coastal plains. Due to the unm itigated effects resulting from the w rath of Typhoon Yolanda, no less than President Aquino appealed to the international business communities to consider investments in the areas that suffered most the devastation of Super Typhoon Yolanda. This includes Estancia, the site of the proposed project. Super Typhoon Yolanda, however, though left some pains in the project site, she likewise afforded enormous gains exemplified by the unprecedented publicity achieved in almost all major tri-media networks as well as social networks along the Information Highway. Recently, the newly elected President Ferdinand R. Marcos, Jr., affirmed that investments and developments must be prioritized in these areas, hence, this project is a fitting trib- ute to such pronouncements. VI. The PROPERTIES Sites of the Proposed Project The Requinto Family Properties identified as sites of the proposed project are situated in the following:  Bgy. Pa-on - the site of World Paradise Main is situated along the eastern coastline of Estancia that engulfs the Estancia Bay with its beach-line safely sheltered by various islands and islets, particularly Lugingot Island which is less than 500 meters across channel that is the site of proposed extension facility of World Paradise Main;  Bgy. Luguingot Island – the site of “Paraiso sa Isla” is situated parallel the coastline of Bgy. Paon some 500 meters southeast of Bgy. Paon;  Bgy. Tacbuyan – Site of Paraiso sa Norte Mountain Resort; and,  Bgy. Bayuyan – Site of Iloilo Norte Boutique Hotel and Commercial Complex. (Please see Vicinity Map. The rests of other extension facilities, i.e., Paraiso sa Isla, Isla Luguingot; Paraiso sa Norte, Bgy. Tacbuyan; and, Iloilo Norte boutique Commercial Complex are all situated in most strategic sites and locations.) 5

The properties Site of the proposed projects to be designated TEZ-Tourism Enterprise Zone are as follows: Table No. I World Paradise (Retirement Village cum Resort with Marina Yacht Club) Mainland Location Cad. Lot No. Title No. Area SQ.M. Bgy. Pa-on: Lot 15-C F-39392 5,135 -do- Lot 18-C F-39393 45,847 -do- Lot 18-E F-40302 39,205 -do- Lot 18-F F-39942 31,648 -do- Lot 18-H F-39943 40,800 -do- Under Process to be Re- 110,000 claimed Total 272,2815 These parcels of land are contagious with each other with the elevated portions situated in the hilly areas overlooking the Estancia Bay with panoramic view of more than a dozen islands and islets scattered across channel that includes the famous Sicogon and Gigantes Islands. Paraiso sa Isla (Island Resort World Paradise Extension Facilities) Location Land Features Title No. Area SQ.M. Luguingot Island Undulating Hilly portion in the center to Under Pro- gradual Plain in the coastline cess 320,000 This parcel of land is situated in an island barangay of Luguingot immediately immediate parallel the coastline of the parcels of land in the immediately preceding site of the World Paradise in the mainland. It is well-covered with greenery of different tropical trees and more or less 300 meters across a narrow channel from the site of the World Paradise Main. Paraiso sa Norte (Inland Resort, World Paradise Extension Facility) Location Land Features Title No. Area SQ.M. F-23688 111,455 Bgys. Tacbuyan A thickly forested with 3-decade old Ma- and Bayuyan, hogany, Gemelina and other tropical fruit Estancia, Iloilo bearing trees hilly landscape with gradual plain surrounding. This parcel of land is situated some 2 kms. Northeast of the town center and 3,000 meters southwest of the site for the World Paradise with a private property separating both sites. Iloilo Norte Boutique Hotel & Commercial Complex Location Land Features Title No. Area SQ.M. Bgy. Bayuyan, Gradual plane landscape with full grown 12,300 Estancia, Iloilo Mahogany and Gemilina trees. This parcel of land is situated along the National Highway northeastern side of the town center approximately .6 kms. North of the town center. The area is now a developing commercial center where various commercial establishments are operational. All of the listed properties and such others under the ownership of the Sps. Alberto and Melina Requinto family have already been apprised by Integrated Appraisal Corporation sometime in 1996. Please refer to the Appraisal Report in the Annexes. D. Summary and Total Area of Real Estate Properties The Summary and Total Area is found in Table No. 2, in the next page. 6

Table No. 2 Summary and Total Area of the Real Estate Properties Pro- posed Sites of Proposed Subjects Project Name Location Title No. Area SQ.M. Comment 1. World Para- Bgy. Pa-on, Estancia, F-39392 5,139 dise Retire- Iloilo F-39394 45,847 ment Village F-40302 39,205 with Marina F-39942 31,648 Yacht Club F-39943 40,800 (Main) For Reclamation For application with PRA 110,000 reserved for Marina Yacht Club Total 272,639 2. Paraiso sa Isla Bgy. Luguingot, Under Process 320,000 Luguingot Island, Estancia, iloilo 3. Paraiso sa Bgy. Tacbuyan, F-23688 70,000 Norte Estancia, Iloilo Under Process 12,300 4. Iloilo Norte National Highway, Commercial Bgy. Bayuyan, Complex & Estancia, Iloilo Boutique Hotel Total 674,4939 7

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The PLAN for LUGUINGOT ISLAND BEING A COMPONENT OF THE WORLD PARADISE RETIREMENT VILLAGE MARINA YATCH CLUB ECO THEME PARK RESORT-THE TOURISM ENTERPRISE ZONE UNDER R.A. 9593 THE TOURISM POLICY ACT OF 2005

VII The Legal Basis The legal basis of the proposed projects are as follows: A. Republic Act 9594 otherwise known as the National Tourism Policy Act of 2009, particularly the following: “Rule V – Tourism Enterprise Zones Chapter I - Designation of Tourism Enterprise Zones Section 69 -Survey of Resources. The TIEZA shall, in coordination with appropriate authorities and neighboring cities and municipalities, conduct a survey of the physical and natural assets and potentials of the Tourism Enterprise Zone (TEZ) areas under its jurisdiction Section 70 - Designation of Tourism Enterprise Zones. The TIEZA shall designate TEZs, upon the recommendation of any Local Government Unit (LGU) or private entity, or through joint ventures between the public and the private sectors. Such designation shall be subject to the provisions of the Act and to minimum requirements which the TIEZA shall subsequently promulgate. Section 71 - General Criteria for the Designation of TEZ Any geographic area where a Tourism Enterprise Zone may be established shall conform with the following general cri- teria to ensure that they will not proliferate in a manner that diminishes their strategic economic and developmental value to the national economy The area is capable of being defined into one contiguous territory; It has historical and cultural significance, environmental beauty, or existing or potential integrated leisure facilities within its bounds or within reasonable distances from it; It has, or it may have, strategic access through transportation infrastructure, and reasonable connection with utili- ties infrastructure systems; It is sufficient in size, such that it may be further utilized for bringing in new investments in tourism establishments and services; and It is in a strategic location such as to catalyze the socioeconomic development of neighboring communities. Section 72 - Specific Criteria The Board shall promulgate rules and regulations prescribing specific criteria and guidelines to define the general criteria in Section 71 of this Rules. Section 73 – Development Plan. No TEZ shall be designated without a development plan duly approved by the TIEZA and without the prior approval, by resolution, of the concerned municipality or city. The development plan shall specifically identify the following: Tourism focal points and resources available within the proposed TEZ and adjoining areas; Features which satisfy the requisites for the designation of a TEZ enumerated under Section 59 of the Act; Areas for infrastructure development, for investment, and for preservation, as well as the kind of development, nature of investment or sustainable activities allowed within preserved areas, respectively; (d) Medium and long-term studies on market trends, and corresponding development strategies for the TEZ (e) Studies on the economic impact of development within the TEZ and in surrounding communities; (f) Studies on the environmental, cultural and social carrying capacity of the TEZ and surrounding communities; Design plans for structures which incorporate design and sustainability principles from local architecture and the sur- rounding environment; and Such other information that the TIEZA may require. Any deviation or modification from the development plan shall re- 8

quire the prior authorization of the TIEZA. Any unauthorized deviation or modification may result in the suspension of granted incentives and withdrawal of recognition as a TEZ Operator. The TIEZA may likewise impose reasonable fines and penalties upon TEZ Operators and responsible persons for any failure to properly implement the approved develop- ment plan Section 74 - Exemption from Land Reform Laws. Lands identified as part of a TEZ shall qualify for exemption from the coverage of Republic Act No. 7279, otherwise known as the Urban Development and Housing Act of 1992, and Republic Act No. 6657, otherwise known as the Com- prehensive Agrarian Reform Law, subject to rules and regulations to be crafted by the TIEZA, the Housing and Urban Development Coordinating Council and the Department of Agrarian Reform. Section 75 - Relationship between Tourism Enterprise Zones and Economic Zones. Where an area comprising a Tourism Enterprise Zone overlaps, falls within or encompasses that of an economic zone, the Department and the DTI shall promulgate rules and regulations to govern the relationship between TEZs created under the Act, and economic zones created under Republic Act No. 7227, otherwise known as the Bases Conversion and Development Act of 1992, and Re- public Act No. 7916, as amended, otherwise known as the Special Economic Zone Act of 1995, provided, that such rules and regulations shall consider the special nature and requirements of tourism in relation to other industries, establish- ments and operations in economic zones. Chapter II - Registration of Tourism Enterprises Section 76 - General Qualification for Registration. Subject to the provisions of the Act and to minimum requirements which the TIEZA shall subsequently promulgate, any person, firm, association, partnership, corporation, or any other form of business organization may apply for registration as a tourism enterprise within the TEZ to avail of incentives and benefits. Applicants for registration as tourism enterprise shall comply with the applicable nationality, control and/or owner- ship requirements of the working capital in accordance with the pertinent provisions of the Philippine Constitu- tion, Foreign Investments Act of 1991 and other existing laws and regulations. Section 77 – Fees and charges. The TIEZA shall impose fees and other charges in pursuance of its powers and functions under the Act. Section 78 - One-Stop Shop Center. A one-stop shop center shall be established to facilitate the registration, licensing, issuance of permits and grant of in- centives to TEZ enterprises. All government agencies involved shall assign their respective representatives for this pur- pose. Chapter III - TEZ Administration Section 79 - TEZ Operator. Each TEZ shall be administered and supervised by a TEZ Operator who shall be an entity duly incorporated under the Corporation Code and other relevant laws, unless the TEZ Operator an LGU or any other instrumentality of the govern- ment in the pursuit of their mandates, where capital may be provided by LGUs and/or private entities. Section 80 - Board of Directors and Consultative Bodies of TEZ Operators. The seats of the Board of Directors of a TEZ operator shall be allocated pro-rata according to the respective capital contributions of the TEZ operator's shareholders. TEZ Operators are encouraged to reserve seats on their Boards of Directors for relevant interest groups, such as those representing environmental, religious, and cultural, TEZ investors', TEZ residents' and other interests. In any case, TEZ Operators may form consultative bodies for such special interest groups to assist them in the for- mulation and implementation of policies, plans and projects. Section 81 - TEZ Administrator. The Board of Directors of each TEZ Operator shall appoint its TEZ Administrator, who shall be responsible for imple- menting the policies, plans and projects of the TEZ Operator's Board of Directors. The necessary educational and practical qualifications required of a TEZ Administrator are the following: 9

Must have a bachelor's degree in any of the following fields: business, law, tourism, public administration or oth- er relevant fields and have demonstrated expertise therein; Must have served in a managerial capacity for at least three (3) years prior to his or her appointment; and, Must possess such other qualifications as may be prescribed by the TEZ Operator’s Board of Directors. In addition to such qualifications, all TEZ Administrators must undergo and pass a training program of the Depart- ment to provide them with knowledge and skills relevant to the operation of a TEZ Section 82 - Civil Dispute Resolution. The TIEZA shall establish a civil dispute mediation office to effectively and efficiently resolve civil disputes concern- ing tourism enterprises and/or tourism-related issues within a TEZ where at least one of the parties to the dispute was residing in the TEZ at the time the dispute arose and is still residing within the TEZ at the time the complaint is filed with the mediation office. No civil dispute may be filed in court without having undergone mediation proceedings as provided under this sec- tion except in extraordinary cases where a party may suffer irreparable damage. The TIEZA shall charge reason- able fees for civil dispute mediation. This provision is without prejudice to the application of the rules pertaining to Katarungang Pambarangay with respect to other matters. Section 83 - Labor Dispute Resolution. To resolve disputes between workers and employers for any violation of Presidential Decree No. 442, as amended, oth- erwise known as the Labor Code of the Philippines, the TIEZA shall, in coordination with the Department of La- bor and Employment (DOLE), establish a labor dispute resolution office to mediate between workers and em- ployers. Section 84 – Penalties. The TIEZA shall have the power to impose penalties for failure or refusal of the tourism enterprises to comply with, among others, the approved development plan and the terms and conditions of its registration. Rule VI – Tourism Incentives Section 85 - General Principles on the Grant and Administration of Incentives. The TIEZA shall have the sole and exclusive jurisdiction in the grant and administration of incentives provided under this Rules. This shall not be impliedly repealed or modified. In the grant of incentives, equal preference shall be given to large investments, those with great potential for employ- ment and those of local small and medium enterprises. Registered tourism enterprises owned and operated by overseas Filipino investors shall enjoy the same incentives grant- ed to TEZ operators and registered enterprises in general. The investment incentives offered under the Act shall be without prejudice to availing other incentives provided under other laws, decrees, and presidential issuances. However, for similar or identical incentive schemes provided in these laws, decrees or presidential issuances, the investor may only avail of the scheme provided under one particular law, decree or presidential issuance. e) The minimum investment requirement for Greenfield tourism zones shall be determined by the TIEZA Board. (f) LGUs are likewise encouraged to provide incentives for tourism enterprises through, among others, reductions in ap- plicable real estate taxes and waivers of fees and charges, among others. Should an LGU grant such incentives, it shall report the same to the Department and the PTPB to assist in the marketing and promotions of invest- ment in that LGU. Section 86 - Fiscal Incentives Available to TEZ Operators and Registered Tourism Enterprises within TEZs .(a) Income Tax Holiday 10

New enterprises in Greenfield and Brownfield Tourism Zones shall, from start of business operations, be exempt from tax on income for a period of six (6) years. The income tax holiday may be extended if the enterprise undertakes a substantial expansion or upgrade of its facil- ities prior to the expiration of the first six (6) years. Existing enterprise in a Brownfield Tourism Zone shall be entitled to avail of a non- extendable income tax holiday if it undertakes an extensive expansion or upgrade of facilities. The cost of such expansion or upgrade in relation to the original investment shall be considered in the grant of said incentive. These enterprises shall be allowed to carry-over as a deduction from the gross income for the next six (6) consecu- tive years immediately following the year of the loss, their net operating losses for any taxable year immediately preceding the current taxable year which had not been previously offset as deduction from gross income. Only such losses as have been incurred after registration may be carried over. Gross Income Taxation. Except real estate taxes and such fees as may be imposed by the TIEZA, a new enterprise shall be exempt from payment of all national and local taxes and license fees, imposts and assessments In lieu thereof, it shall pay a tax of five percent (5%) on its gross income earned which shall be distributed as follows: (i) One-third to be proportionally allocated among affected cities or municipalities; (ii) One-third to the national government; and (iii) One-third to the TIEZA. Capital Investment and Equipment A registered enterprise shall be entitled to an exemption of One Hundred Percent (100%) of all taxes and cus- toms duties on importation of capital investment and equipment provided that these are directly and actually needed and will be used exclusively by the enterprise in its registered activity. (f) Transportation and Spare Parts Importation of transportation and the accompanying spare parts of new and expanding registered enterprises shall be exempt from customs duties and national taxes, provided that: they are not manufactured domestically in sufficient quantity, of comparable quality and at reasonable prices; they are reasonably needed; and will be used exclusively by an accredited tourism enterprise. (d) Goods and Services Importation of goods actually consumed in the course of services actually rendered by or through registered enter- prises within a TEZ shall enjoy One Hundred Percent (100%) exemption from all taxes and customs duties: Pro- vided, however, That no goods shall be imported for the purpose of operating a wholesale or retail establish- ment in competition with the DFPC; and, A tax credit shall be granted equivalent to all national internal revenue taxes paid on all locallysourced goods and services directly or indirectly used by the registered enterprise for services actually rendered within the TEZ. (f) Social Responsibility Incentive A registered enterprise shall be entitled to a tax deduction equivalent to a reasonable percentage, not exceeding fifty percent (50%), of the cost of environmental protection or cultural heritage preservation activities, sustainable livelihood programs for local communities, and other similar activities. Section 87 - Non-fiscal Incentives Available to TEZ Operators and Registered Tourism Enterprises. (a) Employment of Foreign Nationals A registered enterprise may employ foreign nationals in executive, supervisory, technical or advisory positions, for 11

such reasonable periods and under such terms as may be provided by the TIEZA Board. Special Investor’s Resident Visa A foreign national who invests at least Two Hundred Thousand Dollars ($200,000.00) in a registered enterprise shall be entitled to a special investor’s resident visa enabling the foreign national to reside in the Philippines while his or her investment subsists. Subject to regulations to be issued by the Bureau of Immigration (BI), the TIEZA shall issue working visas renewa- ble every two (2) years to foreign personnel and other aliens possessing highly-technical skills which no Filipino within the TEZ possesses, after they have secured Alien Employment Permits (AEP) from the Department of La- bor and Employment (DOLE). Foreign Currency Transactions Subject to the provisions of Section 72 of Republic Act No.7653, as amended, otherwise known as the New Central Bank Act: Repatriation of Investment In case of foreign investments, the right to repatriate the entire proceeds of the liquidation of the investment in the currency in which the investment was originally made and at the exchange rate prevailing at the time of repatriation. Remittance of Foreign Exchange The right to remit earnings from foreign investments in the currency in which the investment was originally made and at the exchange rate prevailing at the time of remittance. Foreign Loans and Contracts The right to remit at the exchange rate prevailing at the time of remittance such sums as may be necessary to meet the payments of interest and principal on foreign loans and foreign obligations arising from technological assistance contracts. Requisition of Investment There shall be no requisition of the property of the registered enterprise, except in the event of war or national emergency and only for the duration thereof. In such case, the affected person shall be entitled to just compen- sation, and shall have the right to repatriate such compensation as provided for in Section (c) above. Lease and Ownership of Land Without prejudice to existing laws regulating the ownership of land by individuals and corporations, and con- sistent with the provisions of Republic Act 7652, otherwise known as the Investor’s Lease Act, lands and build- ings in each TEZ may be leased to foreign investors for a period not exceeding fifty (50) years, renewable once for a period of not more than twenty-five (25) years. The leasehold right acquired under long-term contracts may be sold, transferred or assigned, subject to the con- ditions set forth under the Investor’s Lease Act. Section 88 - Incentives Available to Tourism Enterprise Outside TEZs. Upon compliance with the requirements provided by law, they shall be entitled to avail of any economic incentives found under existing laws, such as Executive Order No. 226 (1987), otherwise known as the Omnibus Invest- ments Code; Republic Act No. 7042, as amended by Republic Act No. 8179, otherwise known as the Foreign Investments Act; the Special Economic Zone Act; and the Bases Conversion and Development Act, among oth- ers, subject to the last paragraph of Section 86(a), at the option of the said enterprises. An existing accommodation establishment not located within a TEZ shall be entitled to: (1) Avail of income tax holi- day for up to six (6) years for any significant expansion, renovation or upgrade in its facilities in relation to the amount of the original investment; and (2) Import capital equipment free of taxes and duties when necessary for such expansion, renovation, or upgrade. Tourism enterprise may avail of incentives under the Omnibus Investments Code provided that: : 12

(1) Tourism activities shall always be included in the Investment Priorities Plan; (2) Rules and regulations con- cerning the grant of incentives to tourism enterprises shall be jointly formulated by the Board of Investments and the Department; (4) The income tax holiday provided under Section 39.1 of the Omnibus Investments Code shall also apply to exist- ing accommodation enterprises undergoing substantial upgrade of facilities; and (4) Accredited tourism enter- prises shall be entitled to import transportation and accompanying spare parts free of taxes and duties provided: it shall be exclusively used by the enterprise in its operations; and they are not manufactured domestically in sufficient quantity, comparable quality and prices. Section 89 – Rationalization of Incentives. Tourism enterprises located in special economic zones created under the Special Economic Zone Act or by special charter shall continue to be governed by the same. Incentives offered under the Act shall be without prejudice to the availment of other incentives provided in other laws. However, where such laws provide for similar incentives schemes as those contained herein, the investor may elect to avail of the scheme provided only under one particular law, decree, or issuance. Section 90 – Annual Review Within six (6) months from the issuance of this Rules, the TIEZA shall, in consultation with government agencies concerned, formulate the necessary mechanisms/guidelines to implement the provisions of Rules V and VI of this Rules The TIEZA Board shall conduct an annual review of the registrable activities and incentives as provided in this Rules, and issue appropriate guidelines, rules and regulations to govern the grant of incentives.”; and, B. The Rules and Regulations for Accreditation Standards, Retirement Facilities. -and- C. Municipal Ordinance No ._________, Creating the Tourism Enterprise Zone being a major component of the Mu- nicipal Tourism Development Master Plan duly adopted by virtue of SB Resolution No. _________, Municipality of Estan- cia, Province of Iloilo. 13

VIII. The Proposed Facilities The World Paradise Main (P lease refer to Site Developm ent P lan in the nex t pages. Phase I: Inland Facilities The proposed facilities in this area are open for bidding to serious investors for a long term Lease-Build- Operate Transfer Scheme. A. Center for Rural Eco Agri Tourism Education & Training Center cum Theme Park Resort (Please refer to the Project Development Feasibility Study) B. Multi-Purpose Sports, Cultural and Convention Complex convertible into Temporary Shelter in times of Emergencies (I ncluded in the Land Developm ent by P roject Ow ner or Host M unici- pality) C. Commercial Complex:  Spaces for Long Term Lease to Business Enterprise Locators:  Supermarket;  Restaurants and Eateries  Offices;  18 Lane Bowling Alleys; ü Twin Cinemas; ü Parking Areas. . Parks and Playgrounds:  Recreation Center Children’s Park;  World renowned Israel Greenhouse Technology for Eco-Organic Farming Fields for High Valued Cash Crops;  Park with Man-made Lagoon and Nature Conservation with walkways and Jogging Alleys;  Fast Food Restaurants ;  Nature Conservation Park; and  Open Air Basketball and Tennis Courts with Grandstand for Outdoor Shows and Entertainments (Concerts, etc.); D. Universal Chapel for Spiritual well-being of guests (Included in the Land Development by the Project owner) E. 68 Plus Rooms Paradise Hillside Hotel and Wellness Center  Pavilion convertible to Smaller Function Rooms;  Hilltop Infinity Swimming Pool with panoramic view of the whole village and islands and islets scattered within Estancia Bay and Visayan Sea;  Wellness Center with Body Fitting Exercise Gym, Spa and Massage Parlors; and,  Hotel Guests Parking Area; F. 130 Units of 3 Bedroom Gated Retirement Bungalows all with Private Garage G. Service Area: (Included in Land development cost by the Project owner/proponent) Standby Electric Generator Motor Pool Overhead Water Tank Engineering and Maintenance House Cool Storage for Food Supplies Preservation particularly produce of Green House technology. H. Personnel Office: (Included in the Land Development cost by Project owner/proponent) For Administration and Management . Phase II: MARINA YACHT CLUB Proposed facilities in this area are open for investors under Long Term Lease-Build Operate-Transfer Scheme. 20

 Pavilion Restaurant/Coffee Shop with Functions Rooms Convertible into Convention Hall to accommodate 1,000 Guests  10 Units Duplex Cottages or Three (3) Floors Marina Hotel  Swimming Pools Dressing and Shower Areas:  Fountain;  Children Sea Water Swimming Pool;  Adult Sea Water Swimming Pool;  Children Fresh Water Swimming Pool; and  Adult Fresh Water Swimming Pool.  One Unit 12-Room Poolside Hotel/Cabanas;  Helipad;  18 Units Yacht Berthing Wharf  1 Fuel Station  Guard Houses;  Water Tank;  Maintenance and Service Building;  Personnel Staff House;  Speed Boat Carrier/Trailer Parking Area; and,  Customer Parking Space. 21

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CREATED Center for Rural Eco Agri Tourism Education & Development Training Center with Resort Theme Park The Center for Rural Eco Agri Tourism Education and Development Training Center with Resort Theme Park is tone of the major Component Programs of Project TREASURE-Tourism Reinvented for Eco Agri Stimulus of the Unpro- ductive to Rejuvenate Economy the Official Corporate Social Responsibility of World Paradise-The Tourism Enterprise Zone (TEZ), that shall be operated using initially the existing facilities and structures of the project proponent, particu- larly the following: 1. Sandrine Hotel and the AMR Event Center, situated at Bgy. Poblacion Zone 1, and Bgy. Bayuyan, Estancia, Iloilo respectively. It is designed as an academic and training institution to offer both Technical and Vocation- al (TechVoc), trainings and Academic Tourism and Hospitality related programs under TESDA Technical Education and Skills Development Authority and CHED-Commission on Higher Education respectively, which curriculum is aligned with the ASEAN MRTP-ASEAN Mutual Recognition Arrangement for Tourism Professionals CCSTP-Common Curriculum Standards for Tourism Professionals. Please see the Development Concept and Feasibility Study in the Annex “B”. It is the major Program Component of Project TREASURE-Tourism Reinvented for Eco Agri Stimulus of the Unproductive to Rejuvenate Economy which Development Concept is found in Annex “A”, hereof. 18

X. Paraiso Sa Norte Eco-Park & Wellness Inland Resort Tacbuyan (Extension Facility) Proposed facilities in this area are open for investors under a Long-Term Lease-Build Operate-Transfer. (Development Perspective shall be supplied immediately after the approval by the DOT-TEIZA for the Proposed Facilities:  One (1) Unit Two-Storey 120-Bed Hostel ;  One (1) Unit Pavilion to house the Restaurant and Bar, with Divisible Function Rooms con- vertible into a Convention Center to accommodate 300-500 Guests;  Ten (10) Units of Twin-Bedded Room with Private Toilet & Shower Duplex Bungalows;  Twenty (20) Units Hillside Cabanas;  Two (2) Olympic Size Swimming Pools;  Artificial Lagoon and Mini Waterfalls;  3,000 Square Meter Aviary;  Hillside Camping Grounds to accommodate 500 Tents and Horseback Riding Areas;  Hanging Roof Bridges underneath the forest; and,  Stand-by Generator In addition to the foregoing facilities, a more or less 2 km., Zip Line or Cable Car as the special attrac- tion and amenity shall be constructed to connect the World Paradise Resort in the Mainland with the “ Isla sa Paraiso”, Luguingot Island which is across the channel. Also an area is reserved for Golf Driving Range and Putting Green. XI. Iloilo Norte Boutique Hotel & Commercial Complex Proposed facilities in this area are open for investors under Long Term “Lease-Build-Operate-Transfer” scheme. The Boutique Hotel  Eight (8) Storey Fully Air-conditioned 80 Twin-Bedded Rooms with Private Toilet & Show- er;  Coffee Shop/Restaurant  Function Rooms convertible into a Convention Hall to accommodate 1,000 Guests  One (1) Unit Olympic Size Swimming Pool;  Children’s Playground; and, The Commercial Complex Ø One (1) Unit Three (3) Floored Air-Conditioned Commercial Complex (Shopping Mall) with a total floor area of 24,000 SQ.M., and ample parking space. (Please Perspective Drawing in the next page) 26

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PARAISO sa ISLA (Luguingot Island) (Please refer to Site Development Plan)  Ports of Entries: Guests Entry Wharf; Service Entry Wharf; Village Guests Entry Wharf;  One (1) Unit Information Center Building at Village Guest Entry Wharf;  Two (2) Units Pavilion Convertible to Smaller Function Rooms;  Nineteen (19) Units Single/Double Room Cottages;  Three (3) Units Hotels with a total of 120 Single/Double Guest Rooms;  One (1) Unit Seaside Building for Canteen/Bar, shower and dressing rooms;  Thirty-Five (35) Units Seaside Cabanas;  One (1) Unit Building for Personnel/Staff House;  One (1) Unit Building for Service and Maintenance;  One (1) Unit Overhead Water Tank;  One (1) Building for Universal Chapel;  One (1) Unit Stage at the Camp Site;  Camp Site Area;  Manmade Sea Water Lagoon;  One (1) Swimming Pool;  Village Resettlement Site;  Nature Conservation Sites/Eco Parks, Organic High Valued Crop Farms/Gardens;  Life-Guard Station.;  Floating Cabanas;  Artificial Island Fortress with View-Deck; and  Fish Sanctuary in the channel separating the Island from the Paradise Main (Please see Site Development Perspective on the next page)

The PLAN for LUGUINGOT ISLAND BEING A COMPONENT OF THE WORLD PARADISE RETIREMENT VILLAGE MARINA YATCH CLUB ECO THEME PARK RESORT-THE TOURISM ENTERPRISE ZONE UNDER R.A. 9593 THE TOURISM POLICY ACT OF 2005



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The PLAN for LUGUINGOT ISLAND BEING A COMPONENT OF THE WORLD PARADISE RETIREMENT VILLAGE MARINA YATCH CLUB ECO THEME PARK RESORT-THE TOURISM ENTERPRISE ZONE UNDER R.A. 9593 THE TOURISM POLICY ACT OF 2005

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IX. The DEVELOPMENT CONCEPT A. Designation of the area Tourism Enterprise Zone This Concept is the initial submission for the designation of the whole area where the proposed projects shall be established into a Tourism Enterprise Zone under the Mixed Use Green Field Tourism Zone classification, as the area has no existing infrastructure and tourism related development in accordance with the applicable provisions of the Im- plementing Rules and Regulations of R.A. 9593 otherwise known as the National Tourism Policy Act of 2009. B. Project Development Strategy The proposed project is offered by the owners for well-established serious developers under the following: 1. Partnership/Joint Venture with Developers (Local or International Investors/Developers) under Long Term “Lease- Build-Operate-Transfer” scheme. Under this scheme, investors shall be given the option to develop the entire facilities or chose to what particular facili- ty/ies it has to invest, develop, manage and operate. The area that is reserved for such facility in accordance with the site development plan shall be under long term Accelerating Lease Agreement for minimum of 25 years renewable for the same period at the option of the investor; or, 2. Full Financing by a Consortium of Banks/Financial Institutions (Domestic or Foreign) Under this scheme, the banking/ financial institution shall finance supply the required funds for the construction and operation of all the facilities under long term loan agreement that shall be secured by the titles of the properties sites of the project. The bank and financing institutions shall have the right of first refusal on the selection of contractors thru open bidding on the following: a. Formulation of the detailed Development Master Plan as required for Tourism Infrastructure and Enterprise Zone under R.A. 9593 otherwise known as the Tourism Act of 2009 and Feasibility Study for the whole area to be designated Tourism Enterprise Zone (TEZ); b. Construction of the structures and facilities including the site land development component; and, c. Full Management and Operation of the Project. The concept of development for the proposed projects is solely based on the specific applicable provisions of the Imple- menting Rules and Regulations of R.A. 9593 otherwise known as the Tourism Act of 2009, particularly appertaining to the desig- nation and accreditation of the whole area Tourism Infrastructure and Enterprise Zone, in consonance with the PRA-Philippine Retirement Authority rules and regulations governing retirement facilities and MARINA-Maritime Industry Authority appertain- ing to the operation of water transports that is the basic requirement for a yacht club facility. X. Corporate Social Responsibility Full Adoption of Project TREASURE Tourism Reinvented for Eco-Agri Stimulus of the Unproductive to Rejuvenate Economy (Please see Primer in Annexes) In the exercise of the project’s social responsibility, ATIDCO is adopting Project TREASURE as follows: a) Continuing Tourism Awareness-Key to Institutionalization Culture of Tourism; b) Program BUKAS a periodic Summer Youth Camp for youths focusing in Tourism Education and Anti-Drug Addiction; and, c) Permanent Housing for Informal settlers in the sites of the project facilities that shall be accorded that they may own; and, d) Poverty Alleviation & Long-Term Economic Rehabilitation for Victims of Super Typhoon Yolanda (Haiyan) for infor- mal setters in the resettlement site that shall be automatically considered member of the village cooperative to manage and operate the Livelihood Agri Farming Activity using on the process the world-renowned Israeli Green- house Technology for high valued cash crops to supply the requirement of tourism facilities in the project site as well as the general public. XI. Nature and Environment Preservation In the development process highest regard is given to the conservation of the environment as it is underlined, so that more than 40% of the project sites area is preserved for greeneries (Permanent Growing Fruit Trees, Organic Farming 28

Fields for High Valued Cash Crops and Flower Bearing Shrubs utilizing on the process the world renowned Gur Lavi Green- house Technology from Israel) for Agri Tourism attraction serving as Nature Parks, Aviary with Mini-Zoo, Marine Reserve/ Fish Sanctuary and Aquarium with ample walk-ways and jogging alleys and bicycle lanes. In consideration of the foregoing, within the retirement village, Electric Power Supply shall be totally provided by Solar Renewable Energy Power System; and, NO diesel/gasoline engine powered motorized transport shall be operated to service the guests’ movements within the resort, but electric/battery operated or horse-drawn carriages. Motor vehicles shall be allowed entry only up to the designated parking spaces fronting the main entrance gate of the commercial complex that is far secluded from the retirement duplex-bungalows. Please see Site Development Perspective Drawing. XII. Solid/Liquid Wastes Disposal The disposal of solid and liquid wastes shall strictly follow the existing laws, rules and regulations. For this purpose, the project proponent has reserved a portion of its other property situated in an area which is almost 3 kms., from the pro- ject site for sanitary land fill where the solid wastes shall be dumped. In the same manner that, a sewerage system mecha- nism shall be installed so that toxic liquid shall be disposed separate while waste waters shall flow to the central open man- made lagoon for consolidation and treatment for reuse to irrigate the organic farm fields, gardens and green parks. XIII. Promotion of Local Products The strict policy on the operation of the Commercial Complex within the Tourism Enterprise Zone (World Paradise Main) is for the business/enterprise locators to promote and sell with priority products that are locally produced, particu- larly handicrafts for souvenir items and food preserves. It is however considering accommodation of Duty-Free-shops to sell genuine imported goods exclusively for tourists and retirees staying in the retirement village. XIV. The Target Markets The targeted potential markets of the proposed projects are as follows: A. World Paradise (Main) 1. Retirement Village Duplex Bungalows The units in this facility shall be pre-sold to potential clients particularly former residents/inhabitants of Es- tancia who resided and successfully practiced their professions/business overseas (USA, Europe and other devel- oped countries in Asia), who already have retired or about to retire and this early have manifested their serious interest to look into the possibility of purchasing a time-share for or full-purchase of a unit where they would spend the remaining years of their retirement life enjoying all the services and amenities envisioned in this concept . As at the latest count, this market category being considered built-in to the proposed project comprises not less than 2,000 all with roots from Estancia, or the neighboring towns in Northern Iloilo, Philippines. The add-ons for this market category are the relatives and friends of the spouses of those who married foreign nationals while in the countries of their residence during their active professional and/or business practice. All of them no doubt are con- sidered successful in their respective endeavor and have experienced modernity as they enjoyed all the comforts in their living while abroad. They are all considered with financial capabilities and the resources to spend while enjoy- ing the waning years in the twilight of their lives. In addition to the foregoing, considered as sure markets for this facility are the: a. Individuals: i. Foreign Retirees/Senior Citizens opting to retire in the Philippines, particularly foreign nationals USA, Europe and Asian countries in accordance with the Rules and Regulations of the Philippine Retire- ment Authority (PRA) through Direct purchase of the unit/s. These include former residents of Estan- cia, Iloilo who have seriously considered to return and spend their retirement years in their hometown which is the site of the proposed project; ii. Active local Senior and Middle-Aged Professionals and Businessmen on a Time-Sharing Scheme con- vertible into full ownership of the units thru purchase option; and, iii. Corporate Accounts for its Owners, Senior and Junior Executives b. Tourists/Transient Visitors 29

Included in this market category are the following: i. MICE-Meetings, Incentives, Conventions and Exhibits both Foreign and Domestic Delegates and Participants; and, ii. Groups and Individuals short staying (3-5 days) foreign and domestic tourists for unused units re served for Time-Sharing clients where the latter shall earn the portion of the accommodation charges equivalent to 60% of the total if sold. (Note: These groups and individuals are dominated by nationals originating from Mainland China, South Korea, Taiwan, Singa- pore and Russia that are now the mainstay markets of Boracay Island. The average total arrival of these market category is more or less 900,000 to 1,000,000 persons annually since 2008. Boracay Island is a part of the province of Aklan, that is situated some 140 Kms. Northwest of Estancia, the proposed project site. Noteworthy is the fact that since 2009, some visitors in Bora- cay Island have already extended their visit to Gigante and Sicogon Islands which jump-off point is Estancia, Iloilo.) Once the proposed project is operational, the targeted share out of these markets is at an average of 5% or a total of 40,000 to 50,000 minimum for the 1st to 2nd years and a projected increase at an average not less than 5% per annum. Marina Yacht Club This is intended for a membership facility and shall be for the exclusively use of members that maybe join as club members. The membership shall be as follows: Bronze – One (1) Year Validity; Silver – Three (3) Years Validity; Gold – Five (5) Years Validity; Platinum – Ten (10) Years Validity; and, Lifetime World Paradise Hillside Hotel and Wellness Center This facility is intended to supplement the accommodation and other facilities of Marina Yacht Club, and open to accom- modate individual and group tourists. The Wellness Center however, shall be offered for membership. Commercial Complex Commercial Spaces in this facility shall be open for lease to business/enterprise locators i.e., souvenir shops, eateries, supermarket, day/night entertainments, and indoor sports, etc. Open Air Basketball and Tennis Court Area designed for Open-Air Shows, Entertainment and Concerts of local and inter- national talents Paraiso sa Isla Facilities in this resort shall serve to complement the ones available at the world Paradise Main and open for the general membership. It’s main target, however, are domestic tourists particularly the youths that are most interested in adventure and outdoor camping. The Paraiso sa Isla shall be the base of water sports, i.e., swimming, sailing, boating, island hopping and sport fishing. It intends to host organized outdoor camping and other special events. Paraiso sa Norte (Mountain/Inland Resort) The main markets of this facility are the domestic/local family excursionists and special functions. It may however cater to individual foreign independent adventure tourists (backpackers). It intends to likewise host organized special events related to outdoor camping, MICE, family day excursionists and outdoor sports. Iloilo Norte Boutique Hotel & Commercial Complex Hotel rooms in this facility shall be open for domestic and foreign independent and group travelers. It is also in- tended to accommodate special functions and events related MICE. The commercial complex shall be open for lease to business/enterprise locators. 30

XV. The Markets and Marketing Strategy The proposed project is considered the pioneering venture in this part of Philippines and the first of its kind conceived un- der the law. Considering the holistic approach in its development strategy as an ALL-in-ONE complex for all of the duly organized tourism-oriented service systems, where a tourists or retiring clients are paying just one (1) for all the amenities and services of self-contained exclusive community, therefore a hustle-free holiday/vacation or retirement life is the underlying consideration transcending all others that awaits every client and guest.  Marketing Approach and Strategy Under this Concept the Marketing Approach and Strategy shall include among others the following:  Formulation of a consolidated marketing and promotional Strategic Action Plan that shall include the creation of mar- keting collaterals and tools, particularly the following  Printed Catalogue/Brochure or film in CDs containing all the information of the facilities within the declared Tourism En- terprise Zone (TEZ) for distribution to overseas and domestic travel/tour agencies, airline companies and shipping lines;  Utilization of the Information Highway and Cyber Space Technology by way of:  Construction of Website to contain all the information of the project;  Opening of Accounts with all available Social Networks, i.e., Facebook, LinkedIn, Twitter, etc; and,  Using the most successfully tested on-line marketing and sales for booking and reservations;  Membership with duly recognized International organizations and associations of Hotels/Resorts for active participation in congresses, exhibits and sales missions as duly accredited by the Department of Tourism while establishing links with the duly organized tourism industry-oriented groups and associations; and,  Organization of a highly trained and well-experienced marketing and sales team responsible for the direct selling and pro- motions of the facilities and the Pre-Selling of Units in the Retirement Village in close coordination with the Philippine Re- tirement Authority, as well as the Membership with the Marina Yacht Club, Wellness Center and other facilities that shall be open to membership. XVI. Employment Opportunities Qualified local workforce, particularly the informal settlers in property shall be given top priority in employment opportunities. For this purpose, continuing training and reeducation shall be conducted in coordination and assistance of the Department of Tourism, Technical Education and Science Development Authority. Once realized, the project may create estimated job opportunities found in the Table No.3. 31

Table No. 3 Employment Opportunities Indicative Figures Only Project Phase Area of Work Category of Workers No. of Period of A. Construction Period Workers Employment 1. World Paradise Main Skilled, Semi-Skilled Con- From 12 to 15 B. Operating Period struction Workers and 150 Helpers 80 Mos.. 60 2. Paraiso Sa Norte -do- 10-12 Mos. 120 10-12 Mos. 3. Paraiso Sa Isla -do- -do- 4. Iloilo Norte Boutique Hotel & Commercial Complex 1. World Paradise Main Resort Facility Managers, Per Contract Supervisors, Chefs, Basis Minimum Cooks, Bar Tenders, Food Servers, of 6 mos. Renewable for Housekeepers, Drivers, the same period Motorboat Operators, Sea Sports Instructors/ to Regular Employment Supervisors, Maintenance Crews En- 200 60 -do- tertainers. 80 -do- Storekeepers/Sales Staff, 80 -do- Commercial Complex 830 Service Crews, etc. 2. Paraiso sa Norte -do 3. Paraiso sa Isla -do- -do- 4.Iloilo Norte Boutique Hotel & Commercial Complex Total 32

XVII. Initial Project Costs/Fund Requirements Project Site Land Development Subject to adjustments due to increase/decrease of construction costs (Materials and Labor), the indicative Project Cost and Fund Requirements for the Project Site Land Development of the proposed projects are found in Table No. 4. Table No. 4 Indicative Project Costs/Fund Requirements Land Site Development only Project Name/Facilties Project Site Percentage Cost per Construction Total Total Land of Total SQ.M. in Period Amount Area Pesos Required in Area In In Man-Days SQ.M. 10% Pesos 27,263.9 2,000.00 1. World Paradise Main: 272,639 300 54,525,780 Land & Site Development (20% of Total Area) (Reclamation & Dredging, Interior-Arterial Road net- work, Organic Vegetable Gardens/Farm-lots, Wa- ter System Installation, Perimeter Concrete Fenc- ing and Sewerage Facilities. 2. Paraiso sa Isla 320,000 10% 1,500.00 180 72,000,000 Land and Site Development Reclamation, Interior 48,000 and Arterial Road network, Camp Site, Clearing 180 25,077,375 and Relocation of settlers, Drainage System, - Dredging and Reclamation) Total 151,603,155 3. Paraiso sa Norte 111,455 15% 1,500.00 Land and Site Development (Perimeter Fencing, 16,718 Walk-ways, Reforestation, Artificial Waterfalls and Camp Site) 4. Iloilo Norte Boutique Hotel & Commercial Complex, Bgy. Bayuyan, Estancia, Iloilo Land and Site Development The initial fund equivalent to 10% Portion of the total amount or Php 15,160,315.00 more or less shall be provided by the project proponent/owner and the balance shall be sourced out from National Agencies concerned for assistance, particularly the Department of Tourism (DOT) thru the Tourism Infrastructure and Enterprise Zone Authority (TIEZA, the Department of Public Works and Highways (DPWH); and, International Agencies and banking or financial institutions for funding in the form of Soft Loan utilizing as collaterals the real estate properties site of the proposed projects. 33

ANNEXES: A.) DEVELOPMENT OPERATION CONCEPT Project TREASURE As Official CSR-Corporate Social Responsibility B.) DEVELOPMENT, OPERATION & MANAGEMENT CONCEPT & FEASIBILITY STUDY (CREATED) Center for Rural Eco Agri Tourism Education & Development A Major Program Component of Project TREASURE “Continuing Tourism Awareness-Key to the Institutionalization Culture of Tourism” Which INCOME out of it OPERATION shall be the INITIAL SOURCE of FUNDS for the START UP CAPITAL in the DEVELOPMENT of IMMEDIATELY INCOME- GENERATING INFRASTRUCTURE and FACILITIES to be INRODUCED in the PROJECT SITES. 25

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