• BAGONG NAYONG PILIPINO MANILA BAY TOURISM CITY


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    • Abstract: BAGONG NAYONG PILIPINO MANILA BAY TOURISM CITYTERMS OF REFERENCE(As Amended)We are pleased to announce herewith the Terms of Referenceregarding the Bagong Nayong Pilipino Manila Bay Tourism City project.

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BAGONG NAYONG PILIPINO MANILA BAY TOURISM CITY
TERMS OF REFERENCE
(As Amended)
We are pleased to announce herewith the Terms of Reference
regarding the Bagong Nayong Pilipino Manila Bay Tourism City project.
I. Objectives of Bagong Nayong Pilipino Manila Bay Tourism City
As one of the priority projects of government, the Bagong
Nayong Pilipino Manila Bay Tourism City project will have the
following contributions toward national economic
development:
a. Boost tourism and increase influx of tourists. It is
estimated that more than a million additional tourists per
year can be attracted as a result of this project.
b. Employment generation will be substantial. Direct
employees of the hotel entertainment complex upon full
operation will exceed 40,000 Filipinos, all of whom will be
at income levels at par with other hotel casino complexes
in the region, and salaries of whom shall be in United
States Dollars (USD). In addition to the direct
employment, indirect employment of support operations
could amount to 150,000 additional jobs.
c. Increased earnings for the national government. It is
expected that the project could generate gross revenues
of several billion US$ per year upon full implementation
and could triple the present annual income generation of
PAGCOR from US$500 million to US$1.5 billion, thus
dramatically increasing the income of the National
Government to whom all PAGCOR revenues accrue.
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II. The following are the Terms of Reference which all project
applicants must conform to in order to qualify for a PAGCOR
license to operate each integrated casino-entertainment
complex project:
1. Site Location
The initial phase of the project site will be an area of
approximately 40 hectares of reclaimed land along Manila
Bay in Parañaque City. Other locations in this vicinity as
may be approved by PAGCOR will also qualify.
2. License Application Fee
Each application must be accompanied by a Manager’s
Check in the amount of US$50,000 payable to PAGCOR,
which is non-refundable.
3. Project Proponents
Applicants must have the financial capability and a well-
established experience in the hotel and gaming business.
Applicants who are principally financial investors are also
welcome but will be required to engage qualified hotel
and gaming operations entities (whether organizations or
individuals), who have the track record in organizing and
operating world-class hotel and gaming projects.
4. Minimum Investment Requirement
All applicants must submit proposals for a total
entertainment complex with a minimum project cost of
US$1 billion, consisting of both equity and debt.
Of this total project cost, a minimum of 40% of the total
project cost must be invested within a period of two (2)
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years from site delivery (for PAGCOR owned land) or from
the date of signing of the Provisional License. A hotel
must be fully operational on site prior to casino operation.
The balance of the total project cost should be utilized to
complete the whole project development in accordance
with the Project Implementation Plan to be submitted by
the proponent within 120 days from signing of the
Provisional License and approved by PAGCOR.
5. Debt/Equity Ratio Requirement
All project proponents must have a minimum debt equity
ratio of 70% debt and 30% equity, in order to assure the
project’s financial viability. Projects with less than a 30%
equity component will not be accepted.
6. Citizenship Requirements
Equity ownership on companies engaged in gaming
operations will be governed by applicable laws.
7. Lease Period & Lease Rate
For selected applicants who will lease the land owned by
PAGCOR, lease period is for 25 years or until the
expiration of the twenty-five (25) year term of PAGCOR as
provided in RA 9487. The lease shall be renewable by
mutual agreement for another 25 years.
The annual lease rate shall be announced at a later date.
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8. Performance Assurance
Within 30 days from the date of the Provisional License,
each selected proponent must submit a Bank Guarantee or
Letter of Credit or Surety Bond to be secured from a
reputable firm acceptable to PAGCOR, in the amount of
ONE HUNDRED MILLION PHILIPPINE PESOS
(PHP100,000,000.00).
The Performance Assurance shall guarantee the
Proponent’s completion of the project.
9. Escrow Account
Within fifteen (15) banking days from the signing of the
Provisional License, the Proponent shall open an Escrow
Account with a universal bank acceptable to PAGCOR and
the Proponent and shall make a deposit to the said Escrow
Account amounting to at least ONE HUNDRED MILLION
UNITED STATES DOLLARS (US$100,000,000.00). All funds
for the development of the project shall pass through the
Escrow Account.
The Escrow Account shall have a maintaining balance of
FIFTY MILLION UNITED STATES DOLLARS
(US$50,000,000.00).
10. PAGCOR Fees
Upon commencement of the gaming operations, the
following fees are to be imposed in lieu of all taxes with
reference to gaming revenues:
a. From Non-junket table and Slot Machine operations:
1. 15% of gross gaming revenues generated
from High Roller tables;
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2. 25% of gross gaming revenues generated
from non-High Roller Tables;
3. 25% of gross gaming revenues generated
from slot machines;
4. 2% of total gross gaming revenues generated
from both High Roller and non-High Roller
tables, for the restoration of cultural heritage.
b. From Junket Operations:
15% of gross gaming revenues generated
from both High Roller and non-High Roller
tables
Definition of High Roller Tables: To be determined at a
later date.
PAGCOR fees on gross gaming revenues from tables
utilizing foreign currency denominations, shall be
remitted in United States Dollars (USD).
PAGCOR may collect a fee equivalent to five percent (5%)
of non gaming revenue from all food and beverage, retail
and entertainment outlets within the Bagong Nayong
Pilipino Manila Bay Tourism City (“5% Fee”). All revenues
in connection with hotel operations should not be subject
to the 5% Fee except rental income received from retail
concessionaires within the hotels. Revenues received from
any theme park and/or museum or similar operations
within the hotel shall be subject to the 5% Fee.
11. Taxes for non-gaming revenues
Non-gaming revenues will be subject to the normal taxes
or tax exemptions as may be specified by other
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government agencies under which the applicant is
registered, including but not limited to PEZA, Board of
Investments and the like.
12. Number of Licenses to be Issued
The number of licenses to be issued by PAGCOR will be
flexible and will depend on the applicant’s conformity to
this Terms of Reference and on the approved Integrated
Proposal Concept.
13. Issuance of License
A Provisional License will be issued to the winning
proponent effective for the duration of the project
development period and shall not exceed the approved
completion date of the whole project.
The Regular Casino Gaming License will be issued upon
completion of the Project and upon approval by PAGCOR
of the report detailing the actual total cost of the Project
to ensure the proponent’s compliance with the approved
project cost based on the Project Implementation Plan.
The term of the License shall not exceed the term of
PAGCOR as specified in RA 9487.
No sub-licenses will be issued nor allowed.
14. Submission of Proposal Concept
a. Documentary Requirements – If the applicant is a
Consortium or group of companies, each company
must submit the following documents:
(1) Company Profile (must highlight experience in
casino development and operation).
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(2) Consularized Company Registration, Articles of
Incorporation and By-Laws.
(3) Accomplished Directors’ and Officers’ Personal
History Statement Forms.
(4) Organizational set-up.
(5) Financial profile including audited financial
statements for the last three (3) years of
operation.
(6) Bank certification of availability of adequate
credit facilities for financing of the project.
b. The Proposal Concept -
(1) Business Plan
aa. The business plan must address the
following PAGCOR Objectives:
- Boost Tourism/Increase Influx of
Tourists
(Indicate projected number of tourists)
- Generate Jobs
Indicate projected number of jobs to be
created and sourced in the Philippines.
*Local hiring for the whole hotel
entertainment complex shall be 95%;
Casino employees shall be licensed by
PAGCOR and all casino non-officers
must be locals. Salaries of employees
shall be in United States Dollars (USD)
and shall be comparable to Asian
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standards, particularly Singapore or
Macao or the average salaries provided
by Singapore and Macao.
- Create Economic Impact
• Indicate projected earnings for
Government
• Indicate other indirect
benefits/advantages
bb. Business plan must also include the
following:
- Long-term development and expansion
programs
- Target foreign markets and marketing
plan - Positioning of the Bagong
Nayong Pilipino Manila Bay Tourism City
in the Region – as compared to
Singapore/Macau and other countries
(2) Narrative Description to include the following:
aa. Total size/area of Concept – The general
concept is the creation of a destination
that will attract not just gaming
enthusiasts but also business tourists and
leisure travelers as well.
bb. Concept must be Unique
cc. Identify key components of the Concept,
different buildings/structures i.e. size/area
of each structure, conceptual design and
contents of each building/structure,
capacity, number of floors, number of
rooms, size of rooms, etc.
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*Key components must include the
establishment of tourism facilities such as
six-star hotel, theaters, exhibition halls,
museums, and other tourism-oriented
facilities. The concept must also include
staff house/s for the casino employees.
dd. On the casino component: indicate the
size/area of the casino, number of tables,
number of slot machines, etc.
(3) Preliminary Colored Renderings/drawings of
Concept and shall include but not limited to the
following:
aa. Model Photo (if available)
bb. Master Layout Plan
cc. Preliminary architectural concepts
dd. Floor plan for each Concept component
ee. Schedule of Hotel Accommodations
It is acknowledged that project proponents
will need to retain world-class architects
and casino design specialists, whose
detailed and specific designs will require a
period of time to complete. Thus, PAGCOR
expects only preliminary design renderings
at the time of submission of the application
but the detailed and specific designs,
together with working drawings, must be
submitted to PAGCOR not later than 6
months after award of the license. All plans
and designs must conform with the
provisions of the National Building Code of
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the Philippines and other applicable laws,
rules and regulations and local ordinances.
(4) Site Surveys and Investigations, including but
not limited to aerial, hydrographic, topographic,
hydrologic, sub-surface, monumenting and
other surveys that will show that submitted
concept is suitable to site condition.
PAGCOR recognizes the fact that these details
can only be available once the specific site of
the casino is determined and approved by
PAGCOR. Thus, PAGCOR will allow a sufficient
period of time for the applicants to submit these
information, after the submission of their
application.
c. Feasibility Study
(1) Financial projections and assumptions
(2) Project cost (Please refer to Investment
Requirement portion for details.)
(3) Project timetable (please refer to Investment
Requirement portion for details)
All applications and queries should be addressed to:
Mr. EFRAIM C. GENUINO
Chairman and Chief Executive Officer
Philippine Amusement and Gaming Corporation
5th Floor, PAGCOR Corporate Office
Hyatt Hotel and Casino Manila
1588 Pedro Gil corner M.H. del Pilar Sts.
Malate, Manila


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