Republic of the Philippines

Province of Aklan
Municipality of Kalibo

REHABILITATION OF MUNICIPAL SLAUGHTERHOUSE, OPERATION

AND MAINTENANCE OF THE WHOLE KALIBO MEAT PLANT

Project Information Memorandum

25 March 2019
 DISCLAIMER

The information contained in these Project Information Memorandum (the “PIM”), and other
documents subsequently provided to all Comparative Private Sector Proponents (“Comparative
PSP”), whether verbally or in documentary or any other form, by the Municipality of Kalibo (the
“Municipality”), or by the Public Private Partnership – Selection Committee (“PPP-SC”) on behalf
of the Municipality, is provided to the Comparative PSP on the terms and conditions set out herein
and such other terms and conditions subject to which such information is provided.

The Tender Documents are not agreements nor offers by the Municipality to the Comparative
PSP or any other person. The purpose of the Tender Documents is to provide interested parties
with information that may be useful to them in making their bids or comparative proposals (the
“Comparative Proposal(s)”). The Tender Documents include statements, which reflect various
assumptions and assessments arrived at by the Municipality in relation to the Project, as defined
herein. Such assumptions, assessments and statements do not purport to contain all the
information that each Comparative PSP may require. The Tender Documents may not be
appropriate for all persons, and it is not possible for the Municipality or the PPP-SC to consider
the investment objectives, financial situation and particular needs of each party. The assumptions,
assessments, statements and information contained in the Tender Documents, and associated
documents may not be complete, accurate, adequate or correct. Each Comparative PSP should
therefore, conduct its own investigation and analysis and should check the accuracy, adequacy,
correctness, reliability and completeness of the assumptions, assessments, statements and
information contained in the Tender Documents and obtain independent advice from appropriate
sources.

Information provided in the Tender Documents is on a wide range of matters, some of which may
depend upon interpretation of law. The information given is not intended to be an exhaustive
account of statutory requirements and should not be regarded as a complete or authoritative
statement of law. Neither the Municipality nor the PPP-SC accepts any responsibility for the
accuracy or otherwise for any interpretation or opinion on law expressed herein.

Neither the Municipality nor the PPP-SC makes any representation or warranty and shall have no
liability to any person, including any Comparative PSP, under any law, statute, rules or
regulations, principles of restitution or unjust enrichment or otherwise for any loss, damages, cost
or expense which may arise from or be incurred or suffered in its participation in the Tender
Process or on account of anything contained in the Tender Documents, including their accuracy,
adequacy, correctness, completeness or reliability and any assessment, assumption, statement
or information contained therein or deemed to form part thereof or arising in any way for
participation in the Tender Process.

Neither the Municipality nor the PPP-SC accepts any liability of any nature whether resulting from
negligence or otherwise howsoever caused arising from reliance of any Comparative PSP upon
the statements contained in the Tender Documents.
1. Overview

The rehabilitation of Municipal Slaughterhouse, operation, and maintenance of the whole Kalibo
Meat Plant (the “Project”) of the Municipality of Kalibo (the “Municipality”) is a Public-Private
Partnership Project to be undertaken in accordance with General Ordinance No. 002, series of
2015 entitled “An Ordinance enacting the Public-Private Partnership (PPP) Code of the Province
of Aklan” which was adopted by the Municipality of Kalibo by enacting Resolution No. 2015-324
entitled “Resolution Adopting by Reference the Public-Private Partnership (PPP) Ordinance of the
Province of Aklan for PPP Projects of the Municipality of Kalibo and Authorizing the Municipal
Mayor to Issue the Appropriation Executive Order” (“PPP Code”). Furthermore, the corresponding
Implementing Rules and Regulation embodied in the Municipality’s Executive Order No. 021,
Series of 2015 entitled “An Executive Order providing the Implementing Rules and Regulations
of the Provincial Public-Private Partnership (PPP) Code of the Province of Aklan for Kalibo PPP
Projects” (“IRR”) shall also be applicable.

The Project is expected to cover the upgrading and rehabilitation of the municipal slaughterhouse
and operation of the whole Kalibo Meat Plant in order to comply with the National Meat Inspection
Services (“NMIS”) requirement and the Good Manufacturing Practices (“GMP”) provisions, and to
maintain the Double “AA” accreditation.

The Project is expected to provide the Municipality with a sustainable and environmentally friendly
Municipal Slaughterhouse and Kalibo Meat Plant. Specifically, the benefits expected from the
Project include:

 Access by residents of the Municipality to clean and secure meat products

 Operation of Kalibo Meat Plant compliant with environmental laws and regulation,
ensuring continued compliance with standards under
 Employment generation associated with the construction, operation, and maintenance of
the Project

The Project, which involves the rehabilitation of the existing Kalibo Slaughterhouse, and the
operation and maintenance of the Kalibo Meat Plant for a period of Twenty-Eight (28) years is the
subject of the unsolicited proposal submitted to the Municipality by the Philippine Slaughterhouse
Management Operation, Inc., (the “Original Proponent”).

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Key elements of the transaction are summarized below:

Feature Terms
Project Scope The Project involves the provision of the following
infrastructure facilities:
 Upgrading of the existing municipal
slaughterhouse
 Construction of wastewater treatment facility
 Holding Pen
 Ice Plant and Cold Storage

Indicative Cost Up to Php 30.0 million

Scheme Contractual Joint Venture
Concession Period The Project shall have a Term of Twenty-Eight (28)
years commencing from the effective date of the JV
agreement. The construction period shall be completed
within 12 months from receipt of Notice to Proceed.

Revenue Source Slaughter fees

Bid Parameter Highest initial percentage share of the gross slaughter
fees given to the Municipality
Project Site The Project shall be situated in Barangay Tinigao,
Kalibo, Aklan where the existing Kalibo Slaughterhouse
is located. It has an area of 1,884 square meters and is
about 1.5 kilometers away from the Poblacion of Kalibo,
Aklan
Obligation of the  Provide the existing slaughterhouse and the
Municipality corresponding right-of-ways
 Warrant that the slaughter of any kind of animal
intended for sale and consumption within the
market shall be performed only in the accredited
slaughterhouse
 Undertake preliminary site preparation work
referring to landfill to the Project Site enough to
raise the KMP site to a level above the water
level

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1.1 Competitive Challenge Timetable

The competitive challenge process is expected to take approximately _____ months from the
dates of issuance of Tender Documents. Key dates are outlined the table below:

Milestone Party Target Date

Responsible
Initial Publication of Invitation for Municipality March 4 and 6,
Comparative Proposals 2019
Second Publication of Invitation for Municipality March 11 and 13,
Comparative Proposals 2019
Submission of Expression of Comparative PSP March 18, 2019
Interest
Availability and Issuance of Tender Municipality March 25, 2019
Documents for Purchase
Submission of Comparative Comparative PSP April 15, 2019
Proposal- First Envelope
(Qualification Documents)
Completion of Evaluation of Municipality April 25, 2019
Qualification Documents
Pre-Selection Conference Municipality, May 6, 2019
Comparative PSP
and Original
Proponent
Submission of Comparative Comparative PSP May 27, 2019
Proposal- Second Envelope
(Technical and Financial Proposal)
Completion of Evaluation of Municipality June 6, 2019
Technical and Financial Proposal
Deadline for Original Proponent to Original June 14, 2019
Match the Highest Complying Bid Proponent
Determination of the Winning Municipality June 15, 2019
Proponent
Contract Signing and Issuance of Municipality July 10, 2019
Notice of Award
Submission of and compliance with Winning July 25, 2019
the Post-Award Requirements Proponent
Issuance of Notice of Compliance Municipality August 14, 2019
with Post-Award Requirements

The actual schedule may be changed by the PPP-SC at any time as it may deem reasonable.
The Comparative PSP, as well as the Original Proponent, shall be notified by the PPP-SC of
changes in the target dates through Supplemental Notices.

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1.2 The Project as an Unsolicited Proposal

The Project was evaluated by the Municipality and accepted as an Unsolicited Proposal with the
Original Proponent Status granted on 15 May 2018. Challengers now have the opportunity to
develop and submit their Comparative Proposals to the PPP-SC. The initial percentage share of
the gross slaughter fees given to the Municipality is the single bid parameter that will determine
the winning qualified Challenger.

The Original Proponent will have the opportunity to match the financial proposal of the winning
Challenger and, if it does, it will be awarded the contract. If the Original Proponent is unable to
match, however, the Project will be awarded to the winning qualified Challenger.

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2. Points of Contact

The PPP-SC Secretariat may be contacted through the following information:

JENNIFER POLICARPIO-ITULID
PPP-SC Seretariat
Kalibo Municipal Hall, Arc. Reyes Street
Kalibo, Aklan
Tel. No. (036)26804135 / 09995108550
Email: [email protected]

3 General Municipal Profile

The Ati-Atihan Town of Kalibo, the provincial capital of the Province of Aklan is the hub of political,
social, economic, and religious activities. It is composed of 16 Barangays, 8 of which are coastal
and 2 are island barangays accessible only by boats.

The thriving economy of the Municipality was recognized and awarded based on Cities and
Municipalities Competitiveness Index (“CMCI”) 2014 of the National Competitiveness Council
Philippines.

3.1 Location

The municipality of Kalibo is particularly located at the center of all coastal municipalities of Aklan,
where the big Aklan River has its mouth. It is bounded on the North by the Sibuyan Sea, on the
South by the Municipality of Banga, on the West by the Municipalities of Lezo and Numancia and
on the East by the Municipality of New Washington.

The whole area of the municipality is generally flat that favors rapid economic and urbanization
growth. This is characterized by intensive agriculture and high density of urban development.
Soils suitable for diversified crops are estimated to be 1,111 hectares which is considered good
(have properties favorable forrated use). For tree crops, 1,555 hectares are declared highly
suitable or good (alluvial soils). The present area which is approximately 1150 hectares planted
to rice is predominantly classified as highly suitable for rice and diversified farming and the rest
of the area (435 hectares) is considered fair.

The Municipality of Kalibo is predominantly an agricultural domain occupying the biggest portion
of the total area. This is the reason why the major thrust of the Municipality is making Kalibo as
the center of agricultural-based economic industry and eco-tourism. This land classification is
mostly planted to agricultural crops like rice, coconuts, bananas, corns, root crops and vegetables.
Some areas were also devoted to fishpond and backyard livestock production. It is subsequently
followed by built-up classification (comprises residential, commercial, industrial, institutional,
parks/playground, infrastructure utilities and other uses) followed by special uses (quarrying,

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grazing land and tourism purposes). Forestland (Mangrove Reforestation project) occupies a
minimum area of more or less 220 hectares out of the total land area.

3.2 Population

As a bustling Municipality and urban capital of the province, Kalibo has the largest population
among the 17 towns garnering 13.93% of the total Provincial population.

This is explained by the rapid in-migration from neighboring municipalities, provinces and even
cities because of the socio-economic potential of the Municipality wherein better employment
opportunities and presence of social amenities like light, water, telecommunications, recreation
centers, business centers and educational institutions are basically available and still growing in
numbers.

For this year 2014, the total projected population of Kalibo is 80,138 with a Population Density of
15.79 or approximately 16 persons in every hectare or 1,579 persons in every square kilometer
of the area. The whole municipality of Kalibo was already classified as an Urban Community per
1990 NSO Census of population.

The municipality has a higher growth rate of 1.80% compared to the provincial growth rate of
1.73%. This is due to the in-migration from neighboring towns in order to seek for better education,
business and employment opportunities.

4. Project Information

4.1 Market Assessment

The primary target market for the Project is meat dealers/retailers engaged in selling meat
products in the local market and/or privately owned shops. In Kalibo alone, there a number of
licensed meat dealer and more than 60 meat retailers. There is also an available market among
investors involved in the processed meat production and there are a handful of registered
processed meat producers.

Aside from meat local retailers in Kalibo, there are 17 other municipalities in Aklan whose meat
requirements can be catered by the Project. At present, the existing Municipal Slaughterhouse
has the capacity to slaughter with an average of 115-125 heads of hog per day, large cattle
average is between 6-8 heads per day, while carabao averages 4-6 per day.

4.2 Preliminary Technical Specifications

Once rehabilitated, the Municipal Slaughterhouse will leave the old system behind. To comply
with the provisions of GMP and to provide a Hygienic way of slaughter, the Project shall be
introducing the following modern structural innovations:

 Improvement of the building structure of the Municipal Slaughterhouse;

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  Compliance with the system mandated by NMIS including: (1) from the holding pen to the
stunning box the pig must walk for at least 5 meters to prevent contamination and (2) the
walk way should have a water sprinkler to clean the pig;
 Holding pens will be renovated to hold numerous pigs and will have a projection design
for possible increase in the near future;
 A modern stunning gun will be provided for the killing of pigs and cows;
 Introduction of design innovation in entry point for the pigs and cows to be slaughtered;
 Fabrication of Stainless Steel Sticking and Bleeding Tables;
 Fabrication and Installation of Scalding Baths;
 Construction and Installation of Splitting and Evisceration Area; and
 Other equipment including but not limited to hands-free water faucet, boot hanger in
butcher’s quarters, dehairing tables, gambrels, and innards washing area.

4.3. Environmental Compliance

Safeguards in the implementation of the Project including, but not limited to, the following:

 All mitigating measures in the submitted Environmental Performance Report and

Management Plan (“EPRMP”) shall be implemented;
 Implement proper housekeeping practices to prevent generation of obnoxious odor and
proliferation of files.
 Implement waste minimization, segregation, re-use and other ecological waste
management practices.
 Ensure the effective operation of its Wastewater Treatment Facility (“WTF”) ensure
compliance with the effluent standards of the Department of Environment and Natural
Resources (“DENR”).
 Planting of trees shall undertake either within the project site and/or in other areas as part
of the proponent’s social and environmental program.

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