2007 R - 184 - AUTHORIZING THE CITY MAYOR HON. JAMES GORDON, JR. TO ENTER INTO A MOA WITH THE INTERNATIONAL FINANCE CORPORATION FOR ADVISORY SERVICES

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON NOVEMBER 21, 2007 AT THE CITY HALL.


PRESENT:

Hon. Cynthia G. Cajudo - - - - - - - - - - City Vice-Mayor & Presiding Officer
Hon. Gina Gulanes-Perez - - - - - - - - - - - - - - - - City Councilor
Hon. John Carlos G. Delos Reyes- - - - - - - - - - - “ “
Hon. Marey Beth D. Marzan- - - - - - - - - - - - - - - “ “
Hon. Sarah Lugerna Lipumano-Garcia - - - - - - - - “ “
Hon. Edwin J. Piano- - - - - - - - - - - - - - - - - - - - - “ “
Hon. Angelito W. Baloy - - - - - - - - - - - - - - - - - - “ “
Hon. Aquilino Y. Cortez, Jr.- - - - - - - - - - - - - - - - “ “
Hon. Anselmo A. Aquino- - - - - - - - - - - - - - - - - - “ “
Hon. Elena C. Dabu- - - - - - - - - - - - - - - - - - - - - - “ “
Hon. Robine Rose C. Buenafe- - - - - - - - - - - - - - - SK Federation President

ABSENT:

Hon. Rodel S. Cerezo- - - - - - - - - - - - - - - - - - - - - City Councilor
(On Official Business)
Hon. Carlito A. Baloy- - - - - - - - - - - - - - - President, Liga ng mga Barangay
(On Official Business)


RESOLUTION NO. 184
(Series of 2007)

A RESOLUTION AUTHORIZING THE CITY MAYOR HON. JAMES GORDON, JR. TO ENTER INTO A MEMORANDUM OF AGREEMENT WITH THE INTERNATIONAL FINANCE CORPORATION FOR ADVISORY SERVICES FOR THE PUBLIC UTILITIES DEPARTMENT

WHEREAS, the Olongapo City Government owns and operates the Public Utilities Department (PUD) which is in the business of providing the City with electric power;

WHEREAS, the PUD is experiencing business reverses, is mired in a huge debt and needs serious rehabilitation;

WHEREAS, the Olongapo City Government is considering private sector participation as a viable option for the PUD’s rehabilitation;

WHEREAS, the aim of the rehabilitation of PUD is the modernization, upgrading and expansion of the City-owned-and-operated electric power distribution system following a competitive bidding process prescribed by the Philippine Build-Operate-Transfer Law;

WHEREAS, an initial step to such rehabilitation is for the Olongapo City Government to engage in the services of an independent, competent and reputable advisor to guide the City Government through the process by the assessment, preparation, design and implementation of a viable transaction to attract private sector participation;

WHEREAS, the International Finance Corporation (a subsidiary of the World bank), an international organization established pursuant to the Articles of Agreement among its member countries, including the Republic of the Philippines, has submitted a proposal to assist the City in structuring and marketing a viable Private Sector Participation transaction for investors and undertaking a fair, transparent and competitive process for selecting a competent private sector proponent who will finance, upgrade, operate, maintain and expand the PUD;

WHEREAS, IFC is the private sector arm of the World bank Group with proven global and local experience and expertise in the area of PSP in infrastructure and public services, including the energy sector;

WHEREAS, the IFC will assist the City in transacting and clearing key policy and regulatory issues with the proper government regulatory bodies that would allow, among others, a private operator to efficiently carry out the concession for the rehabilitation and management of the power utility, including a strategy or the formulation of a long term solution for the payment of its debt with the National Power Corporation ( NAPOCOR);

WHEREAS, the Olongapo City Government has considered the services of the IFC, an institution established in 1956 which is the largest multilateral source of loan and equity financing for private sector projects in the developing world, the expertise of which is precisely the present need of the PUD, private sector investment to insure that the process of inviting private sector participation will be considered and pursued with caution, with utmost transparency and good faith whose aim is to benefit more than 40,000 consumers, expected to gain access to improved public services upon the realization of the goals of the rehabilitation process;

NOW, THEREFORE, on motion of Councilor John Carlos G. delos Reyes, with the unanimous accord of the Members of the Sangguniang Panlungsod present,

RESOLVED, AS IT IS HEREBY RESOLVED, by the Sangguniang Panlungsod in session assembled, to authorize, as it hereby authorizes the City Mayor Hon. James Gordon, Jr. to enter into a Memorandum of Agreement with the International Finance Corporation for Advisory Services for the Public Utilities Department.

APPROVED UNANIMOUSLY, November 21, 2007.


CYNTHIA G. CAJUDO
City Vice-Mayor & Presiding Officer


GINA GULANES - PEREZ JOHN CARLOS G. DELOS REYES
City Councilor City Councilor


RODEL S. CEREZO MAREY BETH D. MARZAN
City Councilor City Councilor
(On Official Business)


SARAH LUGERNA LIPUMANO-GARCIA EDWIN J. PIANO
City Councilor City Councilor

ANGELITO W. BALOY AQUILINO Y. CORTEZ, JR
City Councilor City Councilor


ANSELMO A. AQUINO ELENA C. DABU
City Councilor City Councilor


CARLITO A. BALOY ROBINE ROSE C. BUENAFE
President, Liga ng mga Barangay SK Federation President
(On Official Business)

ATTEST:

ELFLIDA S. SALMON
Council Secretary

APPROVED BY HIS HONOR, THE CITY MAYOR ON______________________.


JAMES GORDON, JR.
City Mayor
ATTEST:

DELFIN A. JUICO, JR.
Secretary to the City Mayor