Anda di halaman 1dari 17

The Omnibus Policy of the Subic Bay Metropolitan Authority

on the Imposition of Performance Bond and its Applicable Rates

THE OMNIBUS POLICY


OF THE SUBIC BAY METROPOLITAN AUTHORITY
ON THE IMPOSITION OF PERFORMANCE BOND
AND ITS APPLICABLE RATES
The following are hereby promulgated by the Board of Directors of the Subic
Bay Metropolitan Authority pursuant to:
1. Paragraphs (b)(2) and (b)(11) of Section 13 of Republic Act No. 7227, as
amended by Republic Act No. 9400, otherwise known as the Bases
Conversion and Development Act of 1992; and
2. Paragraphs (b), (k)(11) and (m) of Section 10, Paragraphs (a), (e), and (f) of
Section 11, and Section 12 of the Rules and Regulations Implementing the
Provisions Relative to the Subic Special Economic and Freeport Zone and the
Subic Bay Metropolitan Authority under Republic Act No. 7227.
RULE I
GENERAL PROVISIONS
SECTION 1. Title. This Policy shall be known and cited as The Omnibus Policy of
the Subic Bay Metropolitan Authority on the Imposition of Performance Bond and its
Applicable Rates.
SECTION 2. Declaration of Policy. It is the declared policy of the Subic Bay
Metropolitan Authority to take all measures necessary to secure the best use of its
properties within the Subic Bay Freeport Zone. The imposition of performance bonds
help ensure that only investors with the proven ability to develop SBMA properties
are allowed to lease them, and that even if they fail to develop, SBMA is
compensated for any attendant opportunity cost.
SECTION 3. Purposes, Intents and Objectives. It is the purpose, intent and
objective of this Policy:
a. To establish the framework and mechanism for the posting of performance
bonds including the applicable rates for the same;
b. To ensure that the development commitments of Subic Bay Freeport
Enterprises on the properties within the Subic Bay Freeport Zone and the
expansion areas covered by Executive Order No. 675, Series of 2007are
fulfilled;
c. To protect the interest of the Subic Bay Metropolitan Authority over these
properties by imposing necessary penalties in case of violations or noncompliance with this Policy.
SECTION 4. Definition of Terms. For purposes of this Policy, the following
definitions shall apply to the following terms:

1|P a g e

The Omnibus Policy of the Subic Bay Metropolitan Authority


on the Imposition of Performance Bond and its Applicable Rates

a. Act shall refer to Republic Act No. 7227, as amended by Republic Act
No. 9400, otherwise known as the Bases Conversion and Development
Act of 1992.
b. Accounting Department shall refer to the Accounting Department of
SBMA.
c. BIDs shall refer to the Business and Investment Departments of SBMA.
d. Board of Directors shall refer to the Board of Directors of SBMA.
e. BPSD shall refer to the Building Permit and Safety Department of SBMA.
f. Certificate shall refer collectively to the Certificate of Registration and the
Certificate of Registration and Tax Exemption issued by SBMA to SBF
Enterprises.
g. Development Commitment shall refer to the contractual obligation of an
SBF Enterprise to construct and/or develop physical improvements on a
SBMA property according to a contractually agreed schedule and in a
manner that meets a contractually agreed investment amount.
h. FPBD shall refer to the Financial Planning and Budget Department of
SBMA.
i.

IRR shall refer to the Rules and Regulations Implementing the Provisions
Relative to the Subic Special Economic and Freeport Zone and the Subic
Bay Metropolitan Authority under Republic Act No. 7227, as amended.

j.

Legal Department shall refer to the Legal Department of SBMA.

k. OSDABI shall refer to the Office of the Senior Deputy Administrator for
Business and Investment.
l.

Performance Bond shall refer to an instrument that serves as a


guarantee or promise to pay or forfeit money in the event a SBF Enterprise
is unable to fulfill its development commitment.

m. Policy shall refer to this Omnibus Policy of the Subic Bay Metropolitan
Authority on the Imposition of Performance Bond and its Applicable Rates.
n. SBF Enterprise shall refer to any individual, partnership, corporation,
Philippine branch of a foreign corporation, or other entity incorporated
and/or organized and existing under Philippine laws, duly registered by the
SBMA to operate any lawful economic activity within SBFZ and the
expansion areas covered by Executive Order No. 675, Series of 2007:
Provided, however, that for purposes of this Policy, the term SBF
Enterprise shall only pertain to entities covered under Section 5 hereof.

2|P a g e

The Omnibus Policy of the Subic Bay Metropolitan Authority


on the Imposition of Performance Bond and its Applicable Rates

o. SBFZ shall refer to the Subic Bay Freeport Zone, a secured and fencedin area operated as a separate customs territory consisting of the portions
of the City of Olongapo and the Municipality of Subic of the Province of
Zambales and the Municipalities of Morong and Hermosa of the Province
of Bataan.
p. SBMA shall refer to the Subic Bay Metropolitan Authority created under
Section 13 of the Act.
SECTION 5. Coverage. This Policy shall be applicable to all SBF Enterprises with
development commitments amounting to One Million Pesos (Php1,000,000.00) and
above on new projects, repairs of facility or expansion projects; regardless of status,
whether a direct lessee of SBMA, a sublessee, further sublessee or assignee; newly
registered or already existing, and granted with tax incentives or not.
RULE II
COMPLIANCE REQUIREMENTS FOR SBF ENTERPRISES
ON THE POSTING OF THE PERFORMANCE BOND
SECTION 6. Performance Bond. The SBF Enterprise within the coverage of this
Policy shall post a performance bond to guarantee faithful performance and
satisfactory completion of its approved development commitments.
The Performance Bond to be posted by the SBF Enterprise for its approved
development commitment should conform to the following conditions:
a. That the Performance Bond shall, for the entire duration of the
development commitment schedule, be equivalent to two percent (2%) of
the total amount of the approved development commitment if in the form of
cash, managers check or bank guarantee, or equivalent to ten percent
(10%) of the total amount of the approved development commitment if in
the form of a surety bond;
b. That the Performance Bond, if in the form of cash or managers check,
shall be non-interest bearing;
c. That the Performance Bond, if in the form of a surety bond, should be
callable upon demand without need of any explanation and issued by the
Government Service Insurance System or by a surety or insurance
company duly registered with or accredited by SBMA and certified by the
Insurance Commission to issue such bond and belonging to the Top 30
Non-Life Insurance Companies according to Networth based on the latest
available ranking issued by said Commission;
d. That the Performance Bond, if in the form of a bank guarantee, should be
issued by a commercial bank.
e. That SBMA should be the sole beneficiary of the Performance Bond;

3|P a g e

The Omnibus Policy of the Subic Bay Metropolitan Authority


on the Imposition of Performance Bond and its Applicable Rates

f. That the Performance Bond should be effective for the whole duration of
the approved development commitment schedule of the SBF Enterprise up
to one hundred twenty (120) calendar days after the target date of
completion of the development commitment: Provided, That if the
Performance Bond is in the form of a surety bond or bank guarantee
covering the first year of the development commitment, the same should
be renewed annually in accordance with Section 8 hereof.
No Performance Bond shall be accepted by the BIDs unless the same conforms to
the conditions set forth in this Section.
SECTION 7. Posting of Performance Bond. The SBF Enterprise shall post the
full amount of Performance Bond, without need of demand, within the following
periods, as the case may be:
a. Within thirty (30) calendar days from the issuance of the Certificate for
newly registered SBF Enterprises;
b. Within thirty (30) calendar days from the signing and execution of the New
Lease Agreement for additional facility or the Amendment to the Lease
Agreement or the Deed of Undertaking for Assignment of Leasehold
Rights, as the case may be, reflecting the approved development
commitment of existing SBF Enterprises that are direct lessees of SBMA;
or
c. Within thirty (30) calendar days from the signing and execution of the
Deed of Undertaking reflecting the approved development commitments of
existing SBF Enterprises that are not direct lessees of SBMA.
For posting of the Performance Bond in the form of cash or managers check, the
SBF Enterprise shall secure a billing assessment from its BID prior to the posting of
the Performance Bond to the Treasury Department.
For posting of Performance Bond in the form of a surety bond or bank guarantee, the
SBF Enterprise shall submit the original surety bond or bank guarantee to its BID.
SECTION 8. Renewal of Performance Bond if in the Form of a Surety Bond or
Bank Guarantee. For the annual renewal of Performance Bonds posted in the
form of a surety bond or bank guarantee, the SBF Enterprise shall, without need of
demand and not later than fifteen (15) calendar days prior to the expiration of its
existing surety bond or bank guarantee, submit to its BID the new surety bond or
bank guarantee for the subsequent annual coverage of the remaining duration of its
approved development commitment up to one hundred twenty (120) calendar days
from the target date of completion of the development commitment: Provided, That
the new surety bond or bank guarantee should conform to the conditions provided in
Section 6 hereof.

4|P a g e

The Omnibus Policy of the Subic Bay Metropolitan Authority


on the Imposition of Performance Bond and its Applicable Rates

RULE III
MONITORING AND REPORTORIAL MECHANISMS
FOR THE POSTING OF THE PERFORMANCE BOND
SECTION 9. Role of BIDs. The BIDs shall:
a. Inform the SBF Enterprise in writing, within five (5) working days from
approval of the development commitment of the latter, of the requirement
to post the Performance Bond as provided for in this Policy;
b. Inform BPSD in writing, within five (5) working days from receipt from the
SBF Enterprise of the signed and notarized Lease Agreement,
Amendment to the Lease Agreement or Deed of Undertaking, as the case
may be, of the development commitment reflected in these instruments;
c. Furnish the Accounting Department a copy of the signed and executed
Deed of Undertaking reflecting the approved development commitment of
existing SBF Enterprises that are not direct lessees of SBMA within five (5)
working days from receipt of the same;
d. Issue the Billing Assessment to the SBF Enterprise for the posting of
Performance Bond if in the form of cash or managers check;
e. Endorse to the Treasury Department the original surety bond or bank
guarantee submitted by the SBF Enterprise within five (5) working days
from receipt of the same;
f. Keep a copy of the surety bond or bank guarantee endorsed to the
Treasury Department for record and monitoring purposes;
g. In case of non-posting or non-renewal of the Performance Bond:
1. Issue a Notice of Non-compliance to the SBF Enterprise that falls
under the First Period of Non-compliance provided in Section 14 a.1
and b.1 hereof, within five (5) working days from commencement of
said period, informing the latter of the imposition of the fine and
reminding the same of the requirement to post or renew the
Performance Bond, as the case may be;
2. Issue a Second Notice of Non-compliance to the SBF Enterprise that
falls under the Second Period of Non-compliance provided in Section
14 a.2 and b.2 hereof, within five (5) working days from
commencement of said period, informing the SBF Enterprise of the
imposition of the additional fine, reminding the same of the requirement
to post or renew the Performance Bond and giving a warning that
continuous non-compliance would result to the suspension of the
Certificate of the SBF Enterprise.

5|P a g e

The Omnibus Policy of the Subic Bay Metropolitan Authority


on the Imposition of Performance Bond and its Applicable Rates

h. Submit to OSDABI, every 7th day of the month, or on the immediately


following work day in case the 7th day of the month falls on a Saturday,
Sunday or holiday, a report to containing the following:
1. List of SBF Enterprises that failed to post the Performance Bond for the
immediately preceding month (Annex A);
2. List of SBF Enterprises that failed to renew the Performance Bond, if
posted in the form of a surety bond or bank guarantee, for the
immediately preceding month (Annex B); and
3. List of SBF Enterprises that has outstanding non-compliance with
regard to the posting and renewal of Performance Bond for prior
months indicating therein to which period of non-compliance, as
provided in Section 14 hereof, the SBF Enterprise falls under (Annex
C).
SECTION 10. Role of OSDABI. The OSDABI shall:
a. Consolidate the reports submitted by the BIDs;
b. Submit to the Accounting Department, every 15th day of the month or on
the immediately following work day in case the 15th day of the month falls
on a Saturday, Sunday or holiday, a report containing the list of SBF
Enterprises that fall under the First, Second and Third Periods of Noncompliance provided in Section 14 hereof;
c. Submit to the Legal Department, every 15th day of the month or on the
immediately following work day in case the 15th day of the month falls on a
Saturday, Sunday or holiday, a report containing the list of SBF
Enterprises that fall under the Third Period of Non-compliance provided in
Section 14 hereof;
d. Recommend to the Board of Directors the suspension or cancellation of
the Certificates, pre-termination of lease agreements, revocation of
SBMAs consent on sublease agreements and issuance of Cease and
Desist Orders, as the case may be, to SBF Enterprises that fall under the
Third and Final Periods of Non-compliance provided in Section 14 hereof,
copy furnished the Legal Department.
The reports submitted by OSDABI shall be deemed as an endorsement to the Legal
Department and the Accounting Department to take appropriate actions against noncompliant SBF Enterprises in accordance with the schedule of penalties provided in
Section 14 hereof.

6|P a g e

The Omnibus Policy of the Subic Bay Metropolitan Authority


on the Imposition of Performance Bond and its Applicable Rates

SECTION 11. Role of the Legal Department. The Legal Department shall, within
five (5) working days from receipt of the report submitted by OSDABI, and in
accordance with the schedule of penalties provided in Section 14 hereof, issue Final
Demand Letters, Notices of Default and Notices of Pre-termination of Lease
Agreement, as the case may be, to SBF Enterprises that are non-compliant with the
posting or renewal requirements under this Policy, copy furnished the BIDs.
SECTION 12. Role of the Accounting Department. The Accounting Department
shall, after receiving the report submitted by OSDABI, bill the SBF Enterprises that
are non-compliant with the posting and renewal requirements under this Policy with
the appropriate fine in accordance with the schedule of penalties provided in Section
14 hereof.
SECTION 13. Role of the Treasury Department. The Treasury Department shall
be the document custodian of the Performance Bonds posted by SBF Enterprises,
regardless of whether in the form of cash, managers check, surety bond or bank
guarantee, and keep an updated record of the same.
RULE IV
PENALTY PROVISIONS
SECTION 14. Penalties for Non-compliance with the Posting and Renewal
Requirements. Any SBF Enterprise which fails to comply with the posting and
renewal requirements under this Policy shall be imposed the following penalties:
a. For SBF Enterprises that are direct lessees of SBMA:
1. First Period of Non-compliance (from 1st calendar day up to 30th
calendar day after the lapse of the period provided in Section 7 hereof
or the expiration of the surety bond or bank guarantee, as the case
may be) Issuance of a Notice of Non-Compliance and imposition of a
non-interest bearing fine amounting to Twenty Five Thousand Pesos
(Php25,000.00);
2. Second Period of Non-compliance (from 31st calendar day up to 60th
calendar day after the lapse of the period provided in Section 7 hereof
or the expiration of the surety bond or bank guarantee, as the case
may be) issuance of a Second Notice of Non-compliance and
imposition of an additional non-interest bearing fine amounting to Fifty
Thousand Pesos (Php50,000.00);
3. Third Period of Non-compliance (from 61st calendar day up to 90th
calendar day after the lapse of the period provided in Section 7 hereof
or the expiration of the surety bond or bank guarantee, as the case
may be) suspension of the Certificate of the SBF Enterprise,
issuance of a Notice of Default and imposition of an additional noninterest bearing fine amounting to Seventy Five Thousand Pesos
(Php75,000.00).

7|P a g e

The Omnibus Policy of the Subic Bay Metropolitan Authority


on the Imposition of Performance Bond and its Applicable Rates

The Notice of Default and the suspension of the Certificate of the SBF
Enterprise shall not be lifted until compliance with the requirements for
the posting or renewal of the Performance Bond and the full payment
of all fines imposed pursuant to this Section;
4. Final Period of Non-compliance (from 91st calendar day after the lapse
of the period provided in Section 7 hereof or the expiration of the surety
bond or bank guarantee, as the case may be, and moving forward)
cancellation of the Certificate of the SBF Enterprise and pretermination of the lease agreement with SBMA.
b. For SBF Enterprises that are not direct lessees of SBMA:
1. First Period of Non-compliance (from 1st calendar day up to 30th
calendar day after the lapse of the period provided in Section 7 hereof
or the expiration of the surety bond or bank guarantee, as the case
may be) Issuance of a Notice of Non-Compliance and imposition of a
non-interest bearing fine amounting to Twenty Five Thousand Pesos
(Php25,000.00);
2. Second Period of Non-compliance (from 31st calendar day up to 60th
calendar day after the lapse of the period provided in Section 7 hereof
or the expiration of the surety bond or bank guarantee, as the case
may be) issuance of a Second Notice of Non-compliance and
imposition of an additional non-interest bearing fine amounting to Fifty
Thousand Pesos (Php50,000.00);
3. Third Period of Non-compliance (from 61st calendar day up to 90th
calendar day after the lapse of the period provided in Section 7 hereof
or the expiration of the surety bond or bank guarantee, as the case
may be) suspension of the Certificate of the SBF Enterprise,
issuance of a Final Demand Letter and imposition of an additional noninterest bearing fine amounting to Seventy Five Thousand Pesos
(Php75,000.00).
The Final Demand Letter and the suspension of the Certificate of the
SBF Enterprise shall not be lifted until compliance with the requirement
for the posting or renewal of the Performance Bond and the full
payment of all fines imposed pursuant to this Section;
4. Final period of Non-compliance (from 91st calendar day after the lapse
of the period provided in Section 7 hereof or the expiration of the surety
bond or bank guarantee, as the case may be, and moving forward)
cancellation of the Certificate of the SBF Enterprise, revocation of
SBMAs consent on the Sublease Agreement and issuance of a Cease
and Desist Order to do business.

8|P a g e

The Omnibus Policy of the Subic Bay Metropolitan Authority


on the Imposition of Performance Bond and its Applicable Rates

RULE V
COMPLIANCE REQUIREMENTS FOR SBF ENTERPRISES
ON THE SUBMISSION OF REPORTS ON THE DEVELOPMENT COMMITMENT
SECTION 15. Submission of the Final Report on the Development
Commitment. - All SBF Enterprises shall, without need of demand, submit to its BID
a complete final report on the development commitment project not later than thirty
(30) calendar days from the approved target date of completion of the development
commitment. Such report shall contain the documents listed in Annex D. All
documents submitted pursuant to this Section must be duly signed by the authorized
representative of the SBF Enterprise and the supervising construction architect or
engineer and must bear the professional seal of the latter.
RULE VI
MECHANISMS FOR THE VALIDATION OF REPORTS
ON THE DEVELOPMENT COMMITMENT
AND PROCESSING OF REFUND OR FORFEITURE OF PERFORMANCE BONDS
SECTION 16. Validation of Final Reports. The following procedure shall govern
the validation of the final reports submitted by SBF Enterprise in compliance with
Section 15 hereof:
a. The BID shall endorse to BPSD, for its validation, the final report submitted
by the SBF Enterprise within five (5) working days from receipt of the
same;
b. The BPSD shall issue the result of its validation to the BID concerned
within thirty (30) calendar days from receipt of the endorsement for the
same. The validation of the final report submitted by the SBF Enterprise
shall be liberally construed so that BPSD may perform its functions in an
efficient, effective, equitable, just, speedy and inexpensive manner;
c. The BID shall inform the SBF Enterprise of the result of the validation
within five (5) working days from receipt of such result and, in accordance
with the same result, the refund or forfeiture of the Performance Bond, as
the case may be.
SECTION 17. Processing of Refund of Performance Bonds. The following
procedure shall govern the processing of refund of the Performance Bonds of SBF
Enterprises that were validated by BPSD of meeting their approved development
commitments:
a. For refund of a Performance Bond that was posted in the form of cash or
managers check:
1. The BID shall, within five (5) working days from receipt of the result of
the validation from BPSD, submit to FPBD a completely filled up
Budget Utilization Request for such refund with the result of the
validation as an attachment to the same;

9|P a g e

The Omnibus Policy of the Subic Bay Metropolitan Authority


on the Imposition of Performance Bond and its Applicable Rates

2. The FPBD shall have a period of not more than five (5) working days
from receipt of the Budget Utilization Request to act on it and endorse
the same directly to the Accounting Department for processing;
3. The Accounting Department shall have a period of not more than five
(5) working days from receipt of the Budget Utilization Request acted
upon by FPBD to process it and endorse the same to the Treasury
Department for check preparation;
4. The Treasury Department shall have a period of not more than five
(5) working days from receipt of the endorsement of the Accounting
Department to prepare the check and issue the same to the SBF
Enterprise as refund of the Performance Bond.
b. For refund of a Performance Bond that was posted in the form of a surety
bond or bank guarantee:
1. The BID shall, within five (5) working days from receipt of the result of
the validation from BPSD, submit to the Accounting Department a
request for such refund with the result of the validation as an
attachment to the same;
2. The Accounting Department shall have a period of not more than five
(5) working days from receipt of the request for refund from the BID to
verify the same with the provisions of the Lease Agreement or Deed
of Undertaking, as the case may be, and endorse the same to the
Treasury Department for release of the surety bond or bank
guarantee;
3. The Treasury Department shall have a period of not more than five
(5) working days from receipt of the endorsement of the Accounting
Department to issue the surety bond or bank guarantee, as the case
may be, to the SBF Enterprise as refund of the Performance Bond.
SECTION 18. Processing of Forfeiture of Performance Bonds. The following
procedure shall govern the processing of forfeiture of the Performance Bonds of SBF
Enterprises that were validated by BPSD of failing to meet their approved
development commitments:
a. For forfeiture of a Performance Bond that was posted in the form of cash
or managers check:
1. The BID shall, within five (5) working days from receipt of the result of
the validation from BPSD, submit to the Accounting Department a
notice to forfeit the Performance Bond in favor of SBMA with the
result of the validation as an attachment to the same;
2. The Accounting Department shall have a period of not more than five
(5) working days from receipt of notice to forfeit from the BID to
process the same.
10 | P a g e

The Omnibus Policy of the Subic Bay Metropolitan Authority


on the Imposition of Performance Bond and its Applicable Rates

b. For forfeiture of a Performance Bond that was posted in the form of a


surety bond or bank guarantee:
1. The BID shall, within five (5) working days from receipt of the result of
the validation from BPSD, submit to the Accounting Department a
notice to forfeit the Performance Bond in favor of SBMA with the
result of the validation as an attachment to the same;
2. The Accounting Department shall have a period of not more than five
(5) working days from receipt of notice to forfeit from the BID to
process it and endorse the same to the Treasury Department for
forfeiture of the Performance Bond;
3. The Treasury Department shall have a period of not more than five
(5) working days from receipt of the endorsement of the Accounting
Department to write the surety provider or the bank guarantor to
inform the same of calling on the surety bond or bank guarantee as
forfeiture of the Performance Bond in favor of SBMA. In addition, the
Treasury Department shall, upon issuance of the letter to the surety
provider or bank guarantor, notify the SBF Enterprise in writing that
the surety bond or bank guarantee has already been called as
forfeiture of the Performance Bond in favor of SBMA. Once the SBF
Enterprise has been notified of such forfeiture, the same shall no
longer be reversed.
RULE VII
PROCEDURE FOR AMENDMENT OF THE POLICY
SECTION 19. Amendments to the Policy. Any amendment or revision of any
provision of this Policy shall be subject to the approval of the Board of Directors.
SECTION 20. Prospective Application. Any amendment or revision of any
provision of this Policy shall have prospective application.
SECTION 21. Effectivity of Amendment. Any amendment or revision of any
provision of this Policy duly approved by the Board of Directors shall take effect
fifteen (15) days after its complete publication in at least one (1) newspaper of
general circulation and fifteen (15) days for the date of its filing with the Office of the
National Administrative Register, whichever happens later, in accordance with the
1987 Administrative Code.
RULE VIII
MISCELLANIOUS PROVISIONS
SECTION 22. Amendments to the Performance Bond Already Posted. Any
amendment to the Performance Bond already posted resulting from an amendment
of the approved development commitment of a SBF Enterprise shall strictly conform
to the provisions of this Policy.

11 | P a g e

The Omnibus Policy of the Subic Bay Metropolitan Authority


on the Imposition of Performance Bond and its Applicable Rates

SECTION 23. Amendments to the Approved Development Commitment. Any


request of a SBF Enterprise for the amendment of its approved development
commitment shall be made prior to the target date of completion for said
development commitment. As such, no request for any amendment to the approved
development commitment shall be entertained by SBMA upon the lapse of the target
date of completion for said development commitment.
SECTION 24. Deviations from the Approved Development Commitment. Any
deviation from the approved development commitment done by the SBF Enterprise
without the prior written approval of SBMA shall be a ground for the forfeiture of the
Performance Bond posted by such SBF Enterprise.
SECTION 25. Deed of Undertaking. Any development commitment and posting of
Performance Bond of a SBF Enterprise that is a direct lessee of SBMA by virtue of
an Assignment of Leasehold Rights and that of a SBF Enterprise that is not a direct
lessee of SBMA, regardless of whether newly registered or already existing, shall be
covered by a Deed of Undertaking executed by such SBF Enterprise in favor of
SBMA. Such Deed of Undertaking shall be signed, executed and submitted to the
BID by the SBF Enterprise within thirty (30) calendar days from the approval by
SBMA of the proposal containing the development commitment. The copy of the
Model Deed of Undertaking is incorporated herein as Annex E.
RULE IX
FINAL PROVISIONS
SECTION 26. Transitory Provisions. All Performance Bonds posted in the form
of a surety bond or bank guarantee prior to the effectivity of this Policy shall be
renewed not later than fifteen (15) calendar days prior to the date of expiration of
such bond or guarantee in a manner conforming with the conditions set forth in
Section 6 hereof. Any SBF Enterprise which fails to comply with the provisions of this
Section shall be imposed the penalties provided in Section 14 hereof.
SECTION 27. Repealing Clause. All policies, rules, regulations, memoranda or
other issuances or any part thereof inconsistent with the provisions of this Policy are
hereby repealed, amended or modified accordingly.
SECTION 28. Separability Clause. If for any reason or reasons, any portion or
provision of this Policy is declared unconstitutional or invalid, all other parts or
provisions not affected thereby shall continue to remain in full force and effect.
SECTION 29. Effectivity. This Policy shall take effect fifteen (15) days after its
complete publication in at least one (1) newspaper of general circulation and fifteen
(15) days from the date of its filing with the Office of the National Administrative
Register, whichever happens later, in accordance with the 1987 Administrative
Code.

12 | P a g e

ANNEX A
(Name of Business and Investment Department)
SBF ENTERPRISES THAT FAILED TO POST PERFORMANCE BONDS
FOR THE MONTH OF _______ 20__

No.

Name of SBF Enterprise

Direct
Lessee of
SBMA
(Yes or No)

ABC Company

Yes

Deadline to
Post the
Performance
Bond

Details of the Approved Development Commitment


Specifications

Amount

From

To

Construction of a
Training Center

Php100,000,000.00

07/01/2016

06/30/2018

Prepared by:

Reviewed and submitted by:

________________________

________________________

(Records Officer or Account Officer)

Department Manager

06/15/2016

Page 1 of 1

ANNEX B
(Name of Business and Investment Department)
SBF ENTERPRISES THAT FAILED TO RENEW PERFORMANCE BONDS
FOR THE MONTH OF _______ 20__

No.

Name of SBF Enterprise

Direct
Lessee of
SBMA
(Yes or No)

ABC Company

Yes

Details of the Approved Development Commitment


Specifications

Amount

From

To

Expiration of
Performance
Bond Posted

Construction of a
Training Center

Php100,000,000.00

07/01/2015

06/30/2017

06/15/2016

Prepared by:

Reviewed and submitted by:

________________________

________________________

(Records Officer or Account Officer)

Department Manager
Page 1 of 1

ANNEX C
(Name of Business and Investment Department)
SBF ENTERPRISES WITH OUTSTANDING NON-COMPLIANCE
ON THE POSTING AND RENEWAL OF PERFORMANCE BONDS FOR PRIOR MONTHS
AS OF _____________ 20__

No.

Name of SBF Enterprise

Direct
Lessee of
SBMA
(Yes or No)

ABC Company

Yes

DEF Company

No

Details of the Approved Development Commitment


Specifications
Construction
of a Training
Center
Construction
of a
Warehouse

NonPosting
or
NonRenewal

Deadline for
Posting of
PB /
Expiration
of PB

Period of
NonCompliance

Amount

From

To

Php100,000,000.00

03/01/2016

02/28/2018

NonPosting

02/15/2016

3rd Period

Php50,000,000.00

04/01/2015

06/31/2017

NonRenewal

03/15/2016

2nd Period

Prepared by:

Reviewed and submitted by:

________________________

________________________

(Records Officer or Account Officer)

Department Manager
Page 1 of 1

ANNEX D
LIST OF DOCUMENTS REQUIRED FOR THE SUBMISSION OF THE
FINAL REPORT ON THE DEVELOPMENT COMMITMENT
1. As-Built Drawings.
2. Statement of Work Accomplishments (SWA) for the Development
Commitment, to include:
a. Itemized list of work.
b. Work Accomplishment:
i.

Percentage Accomplished.

ii.

Work Time Start and Completion.

c. Work Labor and Material Cost.


3. Progress Photographs as of Target Date of Completion of the
Development Commitment.
*Note: The foregoing documents must be duly signed by the authorized
representative of the SBF Enterprise and the supervising construction
architect or engineer for the project and must bear the professional seal
of the latter.

ANNEX E
DEED OF UNDERTAKING
I, _____________________________ of legal age, (citizenship), in my official capacity as
the authorized representative of (insert company name) (hereinafter referred to as the
COMPANY), a corporation duly organized and existing under Philippine Laws, with office address
at ____________________________, Subic Bay Freeport Zone, Philippines, to execute this Deed
of Undertaking for and in behalf of the COMPANY as evidenced by the attached Secretarys
Certificate which is incorporated herein and made an integral part hereof, do hereby warrant, attest,
depose and say that:
1. The COMPANY, as Sublessee/Assignee, executed a Sublease Agreement/Assignment
of Leasehold Rights with (insert name of sublessor/assignor), as Sublessor/Assignor,
over
a
property
with
an
area
of
_______
sq.m.
located
at
_____________________________, Subic Bay Freeport Zone;
2. The COMPANY acknowledges and understands that, among other concessions, the
Subic Bay Metropolitan Authority (hereinafter referred to as SBMA) gave its consent to
the abovementioned Sublease Agreement/Assignment of Leasehold Rights by reason of
the COMPANYs representation to introduce development works on the aforementioned
property at a minimum cost of _______________ through _______________ within a
period of _______________ (hereinafter referred to as the DEVELOPMENT
COMMITMENT);
3. The COMPANY hereby undertakes and ensures the fulfillment of its aforestated
DEVELOPMENT COMMITMENT as represented to SBMA;
4. The COMPANY hereby further undertakes to deliver to SBMA, within thirty (30) calendar
days from the date of execution of this Deed of Undertaking, a Performance Bond for the
aforestated DEVELOPMENT COMMITMENT in the amount and manner strictly
complying with the provisions of The Omnibus Policy of SBMA on the Imposition of
Performance Bond and its Applicable Rates (hereinafter referred to as the POLICY);
5. The COMPANY hereby finally undertakes to submit to SBMA a complete final report on
the aforestated DEVELOPMENT COMMITMENT not later than thirty (30) calendar days
from the approved target date of completion of the same and in the form and manner
strictly complying with the provisions of the POLICY.
6. The COMPANY acknowledges and understands that failure to fulfill the aforestated
DEVELOPMENT COMMITMENT shall authorize SBMA to forfeit, in the latters favor, the
Performance Bond posted by the COMPANY;
7. The COMPANY acknowledges and understands that its failure to comply with any of the
provisions of this Deed of Undertaking shall authorize SBMA to unilaterally rescind its
consent on the abovementioned Sublease Agreement/Assignment of Leasehold Rights
without need of prior judicial determination or court action.
IN WITNESS WHEREOF, I have hereunto affixed my signature this ___ day of
___________ at ____________________.

(Signature over Printed Name)


Affiant

(*THIS DOCUMENT SHALL BE NOTARIZED)