(NAR) VOL. 9 NO. 2 / APRIL - JUNE 1998
The following are the applicable periods and rates to be adopted in all countertrade agreements (whether for offset, counterpurchase or a combination thereof) to be signed in compliance with the ITB for the supply of MRF's and OPV's to the Philippine Air Force and Philippine Navy, respectively.
I
Period Performance for Countertrade Obligations
Value of CT
Obligation In
US | Primary Period | Grace Period | Total |
1 M-50 | 3 years | 2 years | 5 years |
over 50M-100 M | 4 years | 2 years | 6 years |
over 100 M-150 M | 5 years | 2 years | 7 years |
over 150 M-200 M | 6 years | 2 years | 8 years |
over 200 M-400 M | 7 years | 2 years | 9 years |
over 400 M | 8 years | 2 years | 10 years |
II
PITC Monitoring/Management Fees
Value of CT | FEES |
Obligation in US$ | (% of CT Obligations) |
1M-50M | 1.5% |
over 50 M-100 M | 1.25% |
over 100 M-150 M | 1.00% |
over 150 M-200 M | 0.75% |
over 200 M-400 M | 0.50% |
over 400 M | 0.25% |
III
Penalty for Non-Performance and Guarantees
A. PENALTY: Penalty shall be 10% of the unfulfilled CT obligations.
B. GUARANTEE: The guarantee shall secure the payment of penalty for non-performance. The following guarantees shall be provided:
50% of the penalty — to be secured by Bank Guarantee
50% of the penalty — to be secured by Corporate Guarantee
(not comfort letter)
The terms/conditions of the aforementioned bank and guarantee and Corporate Guarantee shall be approved by PITC.
Adopted: 27 May 1998
(SGD.) ISMAEL B. CRUZ
President