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MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

[ MEMORANDUM ORDER NO. 417, March 25, 1974 ]

CREATING INTER-AGENCY TEAMS TO UNDERTAKE STUDIES FOR THE ESTABLISHMENT OF AN ALUMINUM SMELTER.

There are hereby created two Inter-Agency Teams that will undertake studies leading to the establishment of an aluminum smelter in the Philippines. These teams shall concentrate on the engineering and legal requirements as well as possible corporate arrangements for such a project, and shall be, composed of the following:

Engineering Team

Mr. Demetrio Paz National Power Corporation	Chairman
Mr. Victor Taylor Development Management Staff	Member
Lt. Cmdr. Laureano Tanquilot Bureau of Coast and Geodetic Survey	Member
Mr. Constante Belandres Bureau of Mines	Member
Mr. Antonio Goco Bureau of Public Highways	Member
Mr. Florencio Aricheta Ports & Harbors Division, BPW	Member
Mr. Leopoldo Kagahastian Water Resources Survey Division, BPW	Member
Mr. Alvier Makana Philippine Astronomical, Geoph	Member
Mr. Arnulfo Ramirez Development Management Staff	Chairman
Atty. Lilia Bautista Board of Investments	Member
Mr. Gabriel Itchon Central Bank	Member
Mrs. Alice Reyes Development Bank of the Philippines	Member
Atty. Calinico Comsti Bureau of Mines	Member
Mr. J. Roberto Abling Development Management Staff	Member
Mr. Arthur Alvendia Development Management Staff	Member
Mr. Edgardo Abesamis Development Management Staff	Member
Atty. Saturnino Gonzales Development Management Staff	Member

These teams shall carry out their studies in coordination with representatives of Reynolds International, Inc., a proponent of the aluminum smelter project. The target site for this project shall be the Island of Leyte, to utilize the geothermal power now being tapped there. Coordinating Secretariat for these studies shall be the Program Execution Monitoring Office of the Development Management Staff.

The Engineering Team shall:

1. Locate and investigate possible plant sites;

2. Determine infrastructure requirements and cost of providing such infrastructures at each alternative site;

3. Monitor the Tongonan geothemal drilling program

4. Initiate preliminary bauxite investigations;

5. Prepare a program of implementation for the various engineering works needed in support of this project;

6. Undertake such other related investigations and initiate such action that may be necessary to ensure the successful implementation of this project.

In undertaking its studies, the Engineering Team shall focus on the establishment of an industrial complex which shall include the proposed aluminum smelter project.

The Finance/Corporate Structure/Legal Team shall:

1. Evaluate alternative joint venture arrangements among the Philippine Government, Reynolds International and other parties interested in the project, and the corporate structures corresponding to each of these arrangements;

2. On the basis of these alternative arrangements, determine the various legal requirements for/ restrictions on such matters as tax incentives, land ownership, exploitation of natural resources, etc.;

3. Prepare preliminary studies on the amount and possible sources of financing needed, based on its investigations as well as those of the Engineering Team;

4. Prepare projected cash flow and other financial statements which will allow an evaluation of the financial viability of the project;

5. Prepare draft agreements on such matters, as the recommended joint venture arrangement, technical assistance, management contract, etc.;

6. Prepare a program of implementation indicating the different activities needed to be undertaken to set up the structure that will handle this project;

7. Undertake such other financial, organizational and legal studies as may be necessary to evaluate the desirability of this project.

These teams are empowered to set up sub-committees to handle specific aspects of the functions described above.1aшphi1 For this purpose, the Teams herein constituted are empowered to call upon any department, bureau, office and instrumentality of the Government for assistance in terms of technical expertise, information, and other such matters as may ensure the successful implementation of their assigned duties.

This Order shall take effect immediately.

By Authority of the President:

(SGD.) ALEJANDRO MELCHOR
Executive Secretary

Manila, 25 March 1974

The Lawphil Project - Arellano Law Foundation

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