MEMORANDUM OF AGREEMENT

KNOW BY ALL MEN BY THESE PRESENTS

This Agreement made and entered into by and among

The PHILIPPINE TOURISM AUTHORITY, a government owned and controlled corporation with office address at DOT Building, T.M. Kalaw St., Ermita, Manila, represented herein by its General Manager & Chief Executive Officer, ROBERT DEAN S. BARBERS, MNSA, hereinafter referred to as the AUTHORITY;

The PHILIPPINE COAST GUARD, a government agency created under the law, with office address at 139 25th Street, Port Area, Manila represented by its Commandant, ADMIRAL DANILO A ABINOJA hereinafter referred to as the PCG.

The MUNICIPALITY of LOBO, PROVINCE OF BATANGAS, represented by its Mayor, Honorable VIRGILIO R. MANALO, hereinafter referred to as the MUNICIPALITY;

-and-

The AKIKO THOMSON, INC., a corporation duly organized under the laws of the Republic of the Philippines, with principal office at 1225 Penefrancia Street, Paco, Manila, represented by its Director, JAMES MARSH THOMSON hereinafter referred to as the CORPORATION;

WITNESSETH

WHEREAS, the PCG, pursuant to its mandated function of promoting “safety of life of sea”, which can be facilitated through proper maintenance of vital aids to navigation, considers to extensive rehabilitation, upgrading and continued maintenance and operation of the Malabrigo Lighthouse situated at Malabrigo, Lobo, Batangas of urgent importance;

WHEREAS, the thrust of the National Government and Local Government Units of the country is to promote the tourism industry and it has long been the aspiration of the people of the Municipality of Lobo for the development of the Malabrigo Lighthouse as a tourist spot and distination.

WHEREAS, due to lack of funds, the PCG, with the consent of the President of the Republic of the Philippines, initiated the “Adopt a Lighthouse” program to ensure the preservation and maintenance of lighthouses, many of which are built during the Spanish times, like the Malabrigo Lighthouse;

WHEREAS, in order to hasten the preservation, operation, maintenance and promotion of the project, the Authority, and the Corporation have offered and so agreed to adopt the Malabrigo Lighthouse;

WHEREAS, the thrust of the National Government and Local Government Units of the country is to promote the tourism industry and it has long been the aspiration of the Municipality of Lobo to develop the Malabrigo Lighthouse as a tourist destination;

WHEREAS, the Municipality has also agreed to provide the necessary support and assistance in the operation and maintenance of the lighthouse;

WHEREAS, the PCG, recognizing the potential of these project, is very much willing that the Authority, Municipality and the Corporation undertake their respective commitments for the Lighthouse not only to promote tourism but also to improve the socio-economic condition of the locality;

NOW THEREFORE, for and in consideration of the foregoing premises and mutual covenants and undertaking herein set forth, the PCG agrees and the AUTHORITY, the MUNICIPALITY and CORPORATION accept under the Adopt a Lighthouse Program, the Malabrigo Lighthouse under the following terms and conditions, to wit;

ARTICLE I : OBJECTIVE

The AUTHORITY, the PCG, the MUNICIPALITY and the CORPORATION hereby agree to undertake the proposed rehabilitation and development, operation, maintenance and promotion of the MALABRIGO LIGHTHOUSE located at Barrio Malabrigo, Lobo, Batangas for the benefits and enjoyment of foreign and local tourists.

ARTICLE II : RESPONSIBILITIES OF PARTIES

On the part of the PHILIPPINE TOURISM AUTHORITY

The Philippine Tourism Authority shall:
1. Provide the necessary fund in the amount of THREE MILLION PESOS (P3,000,000.00), representing the restoration and rehabilitation costs of the Malabrigo Lighthouse project located at Lobo Batangas, in accordance with Plans and Specifications of the Program of Works agreed upon by the parties and hereto attached as Annex “A” and made an integral part of this agreement.
a. Initial release shall be in the amount of ONE MILLION PESOS (P1,000,000.00)
b. 2nd release – ONE MILLION PESOS (P1,000.000.00)
c. 3rd & Final release – ONE MILLION PESOS (P1,000,000.00)

The 2nd and 3rd release of financial assistance shall be effected by the AUTHORITY only upon submission of liquidation reports of the initial fund released duly authenticated by the Commission of Audit.

2. Assign a Project Engineer who will monitor the progress of construction and recommend disbursements for the Project out of the funds provided by the AUTHORITY.
3. Turn over said project, upon completion to the Municipality and the Corporation, which shall thereafter, be fully responsible for its operation, administration, conservation, proper maintenance and promotion.

On the part of the PCG:

The Philippine Coast Guard shall:
4. Continue to be role sole owner and administrator of the Malabrigo Lighthouse with the right to deny entrance into the area during emergency;
5. Remain responsible for the actual operation and regular maintenance of the Malabrigo Lighthouse “beacon light” including all supporting mechanism (i.e. generator, solar panels, etc.) and provide/source-out funds needed for such purpose;
6. Be responsible in the deployment of Coast Guard personnel which shall oversee the operation of the “beacon light” and all other supporting mechanism;
7. Allow the Authority and the Corporation in close consultation with the appropriate government agencies and concerned NGO’s i.e. National Historical Institute (NHI) and the Heritage Conservation Society (HCS) to restore/rehabilitate its buildings (main building and tower) without the altering the original structural design;
8. Allow the Authority and the Corporation to develop and maintain its vicinity and establish additional facilities and amenities for tourism purposes: i.e. establishment of trails for trekking/hiking, construction of souvenir shops, comfort rooms, cafeteria, picnic sheds and other similar facilities;
9. Supervise any construction, undertaking and vicinity development activity of the Malabrigo Lighthouse and its area;
10. Allow the contracting parties to impose fees in the utilization of the new facilities and amenities and other regulatory fees to be used for the operation and maintenance;

On the part of the MUNICIPALITY and the CORPORATION

The Municipality and the Corporation shall:

1. The MUNICIPALITY shall accept the fund appropriated for the implementation of the Project and place the same in a trust fund for which it can be disbursed upon the recommendation of the AUTHORITY’s Engineer/duly authorized representative and/or the MUNICIPALITY’s Engineer, together with the Corporation’s designated technical representative for the project, and the Municipal Mayor which will later be subject to liquidation.
2. The MUNICIPALITY shall submit a report of disbursements to the AUTHORITY as noted by the Corporation and verified by the Commission on Audit. No additional amount shall be transferred unless the initial 2nd fund transfers have been accounted or liquidated.
3. The MUNICIPALITY shall undertake the bidding for the implementation of the project thru its Bids and Awards Committee of the Municipality in accordance with government rules and regulations and witnessed by the Corporation and the Authority.
4. The MUNICIPALITY shall advise the PCG, AUTHORITY and the Corporation on the date and place of bidding to witness the opening of bids.
5. The MUNICIPALITY shall accept the formal turn over of the project upon its completion in accordance with the approved plans as certified by the AUTHORITY, PCG, MUNICIPALITY and CORPORATION’s representatives shall be wholly responsible for its operation, administration, conservation, maintenance and promotion.
6. The MUNICIPALITY shall appropriate adequate funds for the continuous operation, administration and sufficient maintenance of the project. In this connection, the Municipality and Corporation shall appoint their respective administrators who shall be directly responsible for the project and provide a full complement of manpower necessary and required thereat;
7. The MUNICIPALITY shall undertake the promotion of Malabrigo Lighthouse as a tourist destination for the Municipality of Lobo, principally for the development of tourism particularly in the development of the Malabrigo Lighthouse as its pivotal center;
8. The MUNICIPALITY shall clear with the PCG, the Authority, NHI and HCS before any further improvements and construction shall be made;
9. The MUNICIPALITY shall assure that no settlement of any kind shall be allowed within the Lighthouse area in accordance with the provision of existing laws;
10. The MUNICIPALITY shall keep the PCG free from any claim from third parties arising from the use and operation of the facilities and the area as a tourist spot.

ARTICLE III : OTHER COVENANTS

1. All revenues generated from the operation of the Project shall accrue for the continuous operation, conservation, maintenance and promotion of the same.
2. It has hereby understood and agreed that the AUTHORITY or its duly authorized representative shall have the right to inspect the premises at any reasonable hour of the day upon presentation by the representative of an authorization and proper identification for the purpose. Failure to present the above shall give the right to deny access to the premises.
3. It is hereby understood and agreed that the MUNICIPALITY shall take up in its books of accounts the project in accordance with accounting and auditing rules and regulations.
4. The total fund transferred to the MUNICIPALITY will have to be liquidated to the AUTHORITY, in accordance with auditing rules and regulations.
5. The reportorial requirements and requisite documents to be submitted by the MUNICIPALITY and the CORPORATION to the AUTHORITY will be treated in separate letters accompanying the remittance of project funds.
6. It his hereby understood and agreed that should there be any violation of the terms and conditions of this Agreement by the Municipality and the Corporation, the AUTHORITY shall be constrained from entertaining or considering requests of similar nature or such other tourism-oriented projects.

This Memorandum of Agreement, which supersedes previous agreements on the restoration and development of Malabrigo Lighthouse, shall take effect on the date signed hereof by the parties concerned and shall only be terminated with the mutual consent of all parties.
IN WITHNESS WHEREOF the parties have hereunto affixed their signatures this ____________________day of __________________ at _________________.

PHILIPPINE TOURISM AUTHORITY                                                      PHILIPPINE COAST GUARD
By :                                                                                                               By :

ROBERT DEAN S. BARBERS, MNSA                                                         ADM DANILO A ABINOJA PCG
General Manager & CEO                                                                              Commandant 

MUN. OF LOBO, BATANGAS                                                                     AKIKO THOMSON, INC.
By:                                                                                                                By:

VIRGILIO R. MANALO                                                                               CAPT. JAMES MARSH THOMSON, PCGA
Mayor                                                                                                            Director