(NAR) VOL. 7 NO. 1 / JANUARY-MARCH 1996; 92 OG No. 13, 1852 (March 25, 1996); Malaya and Times, March 16, 1996
WHEREAS, the Asset Privatization Trust (APT)
was created to take, for the benefit of the National Government, title
to and possession of, conserve, provisionally manage and dispose of
assets which have been identified for privatization and transferred to
the APT;
WHEREAS, the APT, in its divestment program,
should seek to restore, as soon as possible, existing physical
facilities of the transferred assets into viable and productive
operations under private sector management and ownership, and thus to
contribute towards national economic recovery within the context of a
private enterprise system and thereby generate maximum cash recovery for
the National Government;
WHEREAS, the APT is
authorized to conserve the transferred assets and to rehabilitate such
assets if necessary to conserve their value or permit their sale,
including, without limitation, to oversee the management and operation
of corporations or other businesses constituting such assets, and to
enter into such service agreements as may be necessary for such
purpose;
WHEREAS, the APT has been accorded the
widest latitude of flexibility and autonomy in its operations,
particularly in the areas of accounting, auditing, procurement,
contracting, asset management, disposition and
personnel;
WHEREAS, the APT, after more than eight
(8) years of existence, is left with assets which by their physical
nature, technical obsolescence, legal impediments, or business prospects
are considered very difficult to dispose of by final
sale;
NOW, THEREFORE, I FIDEL V. RAMOS, President of
the Republic of the Philippines, by virtue of the powers vested in me by
law, do hereby order:
SECTION 1.
Alternative and/or Intermediate Modes of Privatization. — To
enhance the assets transferred to the APT pursuant to Proclamation No.
50 (s. 1986) and/or maximize recovery therefrom, but without in any way
impending the speedy disposition of these assets, the APT is hereby
authorized to enter into the following alternative modes of
privatization and/or intermediate modes of privatization prior to the
final disposal of the asset, particularly, but not limited to cases,
where the asset is deemed marketable and shutdown or mothball costs
approximate costs of operation, or where preservation of factor inputs,
such as technical skills or contractual relations including franchises,
is deemed necessary:
1.1
Joint
Venture — whereby the APT arranges for the APT-held asset to
carry on a specific business enterprise with another person/entity for
their mutual benefit, using their combined funds, land resources,
facilities and services, either through a joint venture corporation or
as separate personalities. Thereafter, the joint venture project is
privatized or referred to the proper government agency for
implementation in accordance with Section 23, paragraph 2 of
Proclamation No. 50 (s. 1986)
1.2
B-O-T Schemes — whereby the APT finds proponents who
will undertake infrastructure and/or development projects using the
APT-held asset, under any of the arrangements provided for under
Republic Act No. 6957, as amended, which project is then referred to the
proper government agency for implementation in accordance with Section
23, paragraph 2 of Proclamation No. 50 (s.
1986)
1.3
Management
Contract — whereby a corporation undertakes to manage or
operate all or substantially all of the business of an APT-held asset.
This contract may also be designated as a service contract or operating
agreement;
1.4
Lease-Purchase — whereby the lessee of an APT-held
asset would have the right to purchase the same. The price and terms of
the purchase must be set forth for the option to be valid, which option
may run the length of the lease period;
and
1.5
Securitization —
whereby the form of the APT-held asset is changed or modified, such as
from physical form to equities or certificate of participation, subject
to Section 2 of Republic Act No. 7886.
SECTION 2.
Applicability of Laws and Regulations. — The exercise
by the APT of its authority to enter into the foregoing alternative
and/or intermediate modes of privatization shall be subject to the
pertinent laws and regulations.
At the expiration of
the term of the APT, all contracts and other obligations created through
the foregoing alternative and/or intermediate modes of privatization
shall be handled by the special committee to be created by the President
pursuant to Republic Act No. 7886.
SECTION 3.
Effectivity. — This Executive Order shall take effect
immediately.
Adopted: 30 Jan.
1996
(SGD.)
FIDEL V.
RAMOS
President
By
the President:
(SGD.) RUBEN D.
TORRES
Executive Secretary