Opportunities at the

‘Maogmang Lugar’
The Naga Coliseum Project

City Planning and Development Office

Naga City
 CURRENT VISION STATEMENT

‘An Maogmang Lugar’

By 2015, Naga City shall be the recognized model of:
• Good governance and responsible
citizenship
– driven by a shared development direction crafted, implemented and continually improved in
an inclusive manner
– sustained by a citizenry that asserts and accepts their roles and responsibilities in nation-
building

• People-centered development
– anchored on quality and accessible services in health, education and other social services,
especially for the marginalized and the vulnerable;
– that enables the private sector to generate the best value from local talents, technology and
resources, and provide gainful jobs and entrepreneurial opportunities for the Nagueno; and

• Abiding faith
– that expresses itself in social solidarity and a culture of excellence flourishing in a city that is
peaceful, safe and in accord with nature; where cultural values are nurtured and religious
diversity respected; and where technology enables the Nagueño to be part of a global
community of people and nations.
 COMMUNICATING THE VISION

‘Maogmang Lugar’ restated

• Cleaner Naga • Being able to walk
• Good schools streets at night unafraid
• Decent house to • Available health service
live in every time it is needed
• City of trees • Vibrant city of
• Three meals a day history, music,
• Gainful jobs culture and arts
• Well-paved roads, • Clean and honest
working drainage government
and orderly streets • A place where one can
realize his full potentials
Local Investment Plan
 Financing the Plan
• The city needs
between
P780M to P1B
to fully
implement the
plan over the
next six years
• Between P640
and P860M in
new money is
required
outside of the
city’s annual
budget
 Project Brief
• Naga City Coliseum • Filcab Van Terminal
– Location: CBD 2
– Seating capacity:
10,000
– Leasable space: 1,500
sqm
• Ground floor: 20 units
@ ~ 55 sqm each
• Mezzanine: 11 units @
~ 59 sqm each
– Parking slots: 40
– 12 bays for 10
intraregional routes to
South Bikol
– Around 150 trips per
day
– Leasable space: 400
sqm
• 20 stalls @ 20 sqm
each
– Parking slots: 250
 Location Map
• Key anchor of CBD2
development

Coliseum – Van
Terminal Project

SM Naga City Mall

Central Bus Terminal

Wellness Center
 Site Map
• 10,000 sqm
main
coliseum
site
• 7,000 sqm
adjoining lot
for parking,
other use
To be the best
of its kind in
Bicol Region
 Financing
• Project cost: P165.7M
• Proposed financing scheme: P10M equity
(Filcab Terminal), P155.7M borrowing
• Loan terms: Based on Land Bank offer
(best thus far)
– Payable over 15 years
– 9% interest per annum
– 3 year grace period on principal
 Base Assumptions
Filcab Terminal Fees Notes/Assumptions Revenue Share
Route Daily Revenue Annual Revenue
Eastbound 7,500 2,737,500 Rounded off from present daily revenue of P7275
7,500 2,737,500 20%

Filcab Terminal Stall Rentals

20 stalls (20 sqm) 3,000 1,080,000 Daily rental rate of P7.50/sqm

Parking Revenues
250 parking slots 100 slots for Filcabs, 150 slots for private cars
Filcab (150 trips per day) 2,250 821,250 Fixed parking rate of P15 per entry
Private cars (48 events) 180,000 100% utilization of parking slots during events 7%
Private cars (ordinary days) 356,625 50% utilization of private car slots during non-event days
1,357,875

Coliseum Event Rentals

Premium 150,000 3,600,000 Maximum of 24 premium events per year
Basic 75,000 1,800,000 Maximum of 24 basic events per year
5,400,000
43%
Coliseum Space Rentals
20 stalls (g/f, 52 sqm) 6,240 2,246,400 Daily ground floor rental of P6/sqm
11 stalls (mezz, 59 sqm) 1,947 700,920 Daily ground floor rental of P3/sqm
8,187 2,947,320

Advertising Revenues
Major billboards (4 x 45' x 15') 30 668,250 Monthly rate at P30/sq ft -- 50% of 2005 Manila prices 5%
Minor billboards (2,260 sq ft total) 10 271,200 Monthly rate at P10/sq ft -- 23% lower than local prices
40 939,450

Business Taxes
Non-Food (34) 9,000 306,000 Non-food locators assumed at 2/3 of total
Food (17) 11,100 188,700 Food locators assumed at 1/3 of total
20,100 494,700

Real Property Taxes 25%

51 business firms 3,800 193,800

Amusement Tax (15% of gross receipts)

Premium 112,500 2,700,000 P100 average ticket price during premium events at 75% capacity
Basic 56,250 1,350,000 P50 average ticket price during non-premium events at 75% capacity
4,050,000

Total Revenues 19,200,645 100%

 Three Scenarios
Low Middle High
Base assumptions • Average • Average basic
premium ticket ticket price
price increases by increases by 50%
50% to P150 (to P75)
(same as PBA • Non-revenue
game) public events are
• Bulk events are factored in.
introduced. Assumed at 24 per
Assumed at one year
event per quarter
P19.2 million P20.2 million P21.4 million
Projected Annual Base Revenues
Source Annual Percentage
Revenue Share
Integrated Filcab Terminal P3.8 M 20%
Fees and Stall Rentals
Coliseum Event and Space 8.3 M 43%
Rentals
Parking Fees 1.4 M 7%
Advertising Revenues 0.9M 5%
Incremental Taxes (Business, 4.7 M 25%
Realty, Amusement)
TOTAL P19.2 M 100%
Projected Operating Expenses
Expense Item Annual Percentage
Expense Share
Personal Services P1.52 M 30-41%
Water 0.12 M 2-3%
Telephone 0.03 M 1%
Maintenance 0.24 M 5-6%
Insurance 0.39 M 8-10%
Power (@ P30,000/day) 1.44-2.76 M 38-55%
SUBTOTAL P3.35-5.06 M 100%
Plus: Marketing Expenses 10% of Coliseum Event Rentals
 Low Scenario
Annual Cash Flow, Yrs 1-7
CASH INFLOW YEAR 1 2 3 4 5 6 7
Capital (Loan + Equity) 165,721,300
Revenues Coliseum Event Rentals 2,700,000 3,240,000 3,780,000 4,320,000 4,860,000 5,400,000
Coliseum Space Rentals 1,473,660 1,768,392 2,063,124 2,357,856 2,652,588 2,947,320
Filcab Terminal Fees 2,053,125 2,737,500 2,737,500 2,737,500 2,737,500 2,737,500 2,737,500
Filcab Terminal Stall Rentals 810,000 1,080,000 1,080,000 1,080,000 1,080,000 1,080,000 1,080,000
Parking Fees 678,938 1,357,875 1,357,875 1,357,875 1,357,875 1,357,875 1,357,875
Advertising Revenues 203,400 939,450 939,450 939,450 939,450 939,450 939,450
Business Taxes 60,800 247,350 296,820 346,290 395,760 445,230 494,700
Real Property Taxes 86,035 96,900 116,280 135,660 155,040 174,420 193,800
Amusement Taxes 2,025,000 2,430,000 2,835,000 3,240,000 3,645,000 4,050,000
Total Cash Inflows 169,613,597 12,657,735 13,966,317 15,274,899 16,583,481 17,892,063 19,200,645

CASH OUTFLOW
Capital Investments 165,721,300
Optg Ex Personal Services 998,172 1,524,816 1,524,816 1,524,816 1,524,816 1,524,816 1,524,816
Operating Expenses (except Power) 112,500 150,000 150,000 150,000 150,000 150,000 150,000
Power 45,000 720,000 864,000 1,008,000 1,152,000 1,296,000 1,440,000
Maintenance Expenses 45,000 240,000 240,000 240,000 240,000 240,000 240,000
Insurance 389,303 389,303 389,303 389,303 389,303 389,303 389,303
Marketing Expenses 270,000 324,000 378,000 432,000 486,000 540,000
Amortization - Principal 12,976,775 12,976,775 12,976,775 12,976,775
Amortization - Interest 14,014,917 14,014,917 14,014,917 12,847,007 11,679,098 10,511,188 9,343,278
Total Cash Outflow 181,326,192 17,309,036 17,507,036 29,513,902 28,543,992 27,574,082 26,604,172

ANNUAL PROFIT (LOSS) (11,712,595) (4,651,301) (3,540,719) (14,239,003) (11,960,511) (9,682,019) (7,403,527)
Utilization 50% 60% 70% 80% 90%
Events per Year 24 29 34 38 43
 Low Scenario
Annual Cash Flow, Yrs 8-15
CASH INFLOW YEAR 8 9 10 11 12 13 14 15
Capital (Loan + Equity)
Revenues Coliseum Event Rentals 5,400,000 5,400,000 5,400,000 5,400,000 5,400,000 5,400,000 5,400,000 5,400,000
Coliseum Space Rentals 2,947,320 2,947,320 2,947,320 2,947,320 2,947,320 2,947,320 2,947,320 2,947,320
Filcab Terminal Fees 2,737,500 2,737,500 2,737,500 2,737,500 2,737,500 2,737,500 2,737,500 2,737,500
Filcab Terminal Stall Rentals 1,080,000 1,080,000 1,080,000 1,080,000 1,080,000 1,080,000 1,080,000 1,080,000
Parking Fees 1,357,875 1,357,875 1,357,875 1,357,875 1,357,875 1,357,875 1,357,875 1,357,875
Advertising Revenues 939,450 939,450 939,450 939,450 939,450 939,450 939,450 939,450
Business Taxes 494,700 494,700 494,700 494,700 494,700 494,700 494,700 494,700
Real Property Taxes 193,800 193,800 193,800 193,800 193,800 193,800 193,800 193,800
Amusement Taxes 4,050,000 4,050,000 4,050,000 4,050,000 4,050,000 4,050,000 4,050,000 4,050,000
Total Cash Inflows 19,200,645 19,200,645 19,200,645 19,200,645 19,200,645 19,200,645 19,200,645 19,200,645

CASH OUTFLOW
Capital Investments
Optg Ex Personal Services 1,524,816 1,524,816 1,524,816 1,524,816 1,524,816 1,524,816 1,524,816 1,524,816
Operating Expenses (except Power) 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000
Power 1,440,000 1,440,000 1,440,000 1,440,000 1,440,000 1,440,000 1,440,000 1,440,000
Maintenance Expenses 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000
Insurance 389,303 389,303 389,303 389,303 389,303 389,303 389,303 389,303
Marketing Expenses 540,000 540,000 540,000 540,000 540,000 540,000 540,000 540,000
Amortization - Principal 12,976,775 12,976,775 12,976,775 12,976,775 12,976,775 12,976,775 12,976,775 12,976,775
Amortization - Interest 8,175,368 7,007,459 5,839,549 4,671,639 3,503,729 2,335,820 1,167,910 0
Total Cash Outflow 25,436,263 24,268,353 23,100,443 21,932,533 20,764,624 19,596,714 18,428,804 17,260,894

ANNUAL PROFIT (LOSS) (6,235,618) (5,067,708) (3,899,798) (2,731,888) (1,563,979) (396,069) 771,841 1,939,751
Utilization Total Subsidy (83,084,734)
Events per Year Average Annual Subsidy (6,391,133)
 Key Points
• Naga Coliseum a strategic investment
of the city government
– Benefit-cost ratio – factoring in economic
benefits over 15 years – estimated at 3.1
– Driven by five factors:
• Sales from Coliseum events
• Accelerated CBD2 development
• Informal economic activities
• Job creation, and
• Improved productivity arising from urban
agglomeration
 Key Points
• A public good that private sector cannot
provide
– Increased cost means project can no longer
pay for itself
– Will require city government subsidy of
around P6.4 million per year for as much as
13 years to break even
• Should be taken wholly with adjoining SM
Naga City development
– Incremental revenues from an SM mall (est.
at P30-40M annually) can very much cover
operating shortfalls
 Opportunities
Financial institutions: Private investors
• Better financing terms • Full management of
coliseum and Filcab
van terminal
– Events, leasing,
terminal operation
• Coliseum events
organizing/
management only