COST OF DOING BUSINESS 2012 As of April 2012

START-UP COSTS

I. REGISTRATION FEES

PHILIPPINE SECURITIES AND EXCHANGE COMMISSION (SEC) Registration of Corporations & Partnerships Main Fees to be Paid (In Pesos)

Stock Corporations

1/5 of 1% of the Authorized Capital Stock or

Filing Fee the subscription price of the subscribed capital stock whichever is higher but not less than P1,000.00 plus LRF* By-laws P500.00 plus LRF*

Non-Stock Corporations

Filing Fee of Articles of Incorporation P500.00 plus LRF*

By-laws P500.00 plus LRF*

Partnership

1/5 of 1% of the partnership's capital Articles of Partnership but not less than P1,000.00 plus LRF*

*Legal Research Fee equivalent to 1% of Filing Fee but not less than P10.00 Source: http://www.sec.gov.ph/

DEPARTMENT OF TRADE AND INDUSTRY (DTI)

Business Name Registration Main Fees to be Paid (Bureau of Trade Regulation and consumer Protection - (In Pesos) - BTRCP) Single Proprietorship (based on territorial jurisdiction): Barangay P200.00 City/Municipality P500.00 Regional P1,000.00 National P2,000.00 Documentary stamp P15.00

Source: http://www.dti.gov.ph/

BOARD OF INVESTMENTS (BOI)

a Filing / Application Fees Classification Project Cost MSE Fees Regular Fees (Php) (Php) New / Expansion

Micro Not exceeding Php3 million Waived 1,500 Small Exceeding Php3 million but not over Php4 million 375 1,500 Exceeding Php4 million but not over Php15 million 750 3,000

Medium Exceeding Php15 million but not over Php20 million NA 3,000 Exceeding Php20 million but not over Php50 million NA 4,500 Exceeding Php50 million but not over Php100 million NA 6,000

Large Over Php100 million NA 6,000 Existing Assets Micro Not exceeding Php3 million Waived 1,500 Small Exceeding Php3 million but not over Php15 million 375 1,500 Medium Exceeding Php15 million but not over Php100 NA 1,500 million Large Over Php100 million NA 1,500 Registration Fees Classification Project Cost MSE Fees Regular Fees (Php) (Php) New Expansion Micro Not exceeding Php3 million Waived 1/10 of 1% of Small Exceeding Php3 million but not over Php15 million 25% of project cost, 0.1% of but not less project than cost, but Php3,000; and not less not to exceed than Php15,000 Php3,000 Medium Exceeding Php15 million but not over Php100 NA million Large Over Php100 million NA Existing Micro Not exceeding Php3 million Waived 3,000 Small Exceeding Php3 million but not over Php15 million 750 3,000 Medium Exceeding Php15 million but not over Php100 NA 3,000 million Large Over Php100 million NA 3,000

There is additional fee for Legal Research Fund (LRF), equivalent to 1% of filing fee but not lower than Php20.00 as per P.D. 1856. Source: http://www.boi.gov.ph

PHILIPPINE ECONOMIC ZONE AUTHORITY (PEZA)

APPLICATION Main Fees to be Paid (In Pesos) Registration of Ecozone Enterprises Application for New Project (non-pioneer) P3,600.00

Application for New Project (pioneer) P6,000.00 Application for any Amendments in Registration P1,200.00 (application) P3,600.00 (registration) Application for Conversion from Non-Pioneer to P2,400.00 Pioneer Application for Expansion for Production Capacity P2,400.00 Registration Fees

Registration for New Projects P6,000.00

Registration for Expansion of Project - New Project P3,600.00 Telecom Services and Other Utilities P6,000.00 + 10% of monthly gross revenues from operations

All other Services Enterprise P3,600.00 II. PROCESSING FEES Availment of Incentives

Endorsement of 5% Gross Income Tax and of Income P1,200.00 Tax Holiday Extension of ITH Entitlement Period P1,200.00 III. CERTIFICATION / TRUE COPIES Certificate of Registration P120.00 Filing approval of application P120.00 Other Documents P120.00

Source: http://www.peza.gov.ph/

II. TAX RATES

Taxation in the

The country's taxation system is governed by the Tax Reform Act 1997, passed into law on December 11, 1997 and became effective on 01 January 1998. The law was aimed at the expanding the country's tax base and maintaining the healthy fiscal standing of the government.

Corporate Income Tax Rates Domestic/Resident Non-resident Foreign Foreign Corporation Corporation Taxable income not subject to special tax rates 30% 30% Interest from deposits and yield from deposit 20% 35% substitutes/trust funds and royalties Interest on foreign loans N/A 20% Interest income derived by a domestic 7.5% N/A corporation from a depository bank under the expanded foreign currency deposit system Dividends from domestic corporations 0 15% / 35% Gains on sales of shares of stock not traded in the Stock Exchange Not over P100,000.00 5% 5% On any amount in excess of P100,000.00 10% 10%

NOTES: The rates of tax applicable for corporations entitled to special tax privileges are set out below:

1. The corporate tax rate was increased from 32% to 35% with effect from 1 July 2005 but will be reduced to 30% effective 1 January 2009. 2. The rate is reduced to 7.5% for interest income derived by a domestic corporation from a depository bank under the expanded foreign currency deposit system. 3. The rate of 15% applies if the host country exempts the dividend from tax or permits a 20% or greater credit for underlying corporation tax paid by the company paying the dividend. 4. The 5% rate applies to the first P100,000 of gains annually, with the 10% rate applying to the excess. Stocks of shares in listed companies are subject to a 0.5% tax on the sale proceeds.

Entity Rates Tax Base

Proprietary educational institutions and non- 10% Taxable income profit hospitals Certain enterprises registered with the 5% Gross income Philippine Economic Zone Authority Non-resident owner or lessor of aircraft, 7.5% Gross Philippine rentals, machinery and other equipment lease, charter fees Non-resident owners of vessels chartered by 4.5% Gross Philippine rentals, Philippine nationals and approved by the lease, charter fees Maritime Industry Authority Non-resident cinematographic film owners, 25% Gross Philippine source lessors or distributors income Foreign international carriers (air and sea) 2.5% Gross Philippine billings Offshore banking units (OBUs) and foreign 10% Gross Taxable Income on currency deposit units (FCDUs) authorized by Foreign Currency the Bangko Sentral ng Pilipinas Transaction 32% Taxable Income Other than Foreign Currency Transaction Regional operating headquarters 10% Taxable income

Income Tax Rates as Passive Income of Domestic/Resident Corporation Cash and/or Property Dividends Beginning January 1, 1998 6% Beginning January 1, 1999 8% Beginning January 1, 2000 & 10% thereafter Interest on any currency bank deposit 20% of final tax and yield or other monetary benefit from deposit substitutes and from trust fund and similar arrangements Interest Income from foreign currency 7.5% of final tax deposits with Foreign Currency Deposit Units (FCDUs) Gains for shares of stock not listed and 5% capital gains tax (CGT) on net gains not traded in the local stock exchange exceeding P 100,00 and 10% on the amount in excess of P 100,000. Gains from sale or exchange of land or 6% CGT on gross selling price or fair market buildings not actually used in business value, whichever is higher and treated as capital asset Royalties (except on books as well as 20% literary & musical composition – 10%)

New Taxes for Corporation Under the Tax Reform Act of 1997

Minimum Corporate Income Tax (MCIT) - A 2% MCIT on gross income on an annual basis is imposed on corporations whose regular corporate income tax liability is less than the MCIT beginning the fourth taxable year following the year they commenced business operation. Any excess of the MCIT over the normal tax shall be carried forward and credited against the normal tax for the three (3) immediately succeeding taxable years.

Fringe Benefits Tax - Fringe benefits granted to supervisory and managerial employees are subject to 32% tax on the grossed-up monetary value of the fringe benefit. Fringe benefits given by OBUs regional operating headquarters of multinational companies, petroleum contractors and subcontractors to qualified alien employees and in certain cases, to Filipino employees, are taxed at 15% of the grossed-up monetary value of the fringed benefit.

Improperly Accumulated Earnings Tax - a 10% tax is imposed on the improperly accumulated earnings of a corporation, except in the case of publicly held corporations, banks, and other non-bank

financial intermediaries and insurance companies. When a corporation allows its earnings or profits to accumulate beyond its reasonable needs, it shall be assumed that the purpose is to avoid tax on stockholders, unless proven to the contrary.

5 Individual Taxation Rates Non-resident aliens not engage in trade and 25% business flat income tax rate Resident citizens/aliens (gainfully employed) 0%-35% Graduated income tax rates

The following individuals shall not be required to file an income tax return: 1. An individual whose gross compensation income does not exceed his total personal and additional exemptions; 2. An individual whose compensation derived from one year employer does not exceed P60,000 and the income tax on which has been correctly withheld; 3. An individual whose income has been subjected to final withholding tax (alien employee as well as Filipino employee occupying the same position as that of the alien employee of regional or area headquarters and regional operating headquarters of multinational companies, petroleum service contractors and sub-contractors, and offshore banking units, non-resident alien not engaged in trade or business), and 4. An individual who is exempt from income tax.

Married individuals shall file single return for the taxable year to include the income of both spouses, separately computing their individual income tax based on their respective taxable income. Where it is impracticable for the spouses to file one return, each spouse may file a separate return.

Tax Table for individuals earning purely compensation income and individuals engaged in business and practice of profession If Taxable Income Tax Due is: If Taxable Income Tax Due is: is: is: Not over P10,000 5% Over P10,000 but not P500+10% of the Over P140,000 but P22,500+25% of the over P30,000 excess over P10,000 not over P250,000 excess over P140,000 Over P30,000 but not P2,500+15% of the Over P250,000 but P50,000+30% of the over P70,000 excess over P30,000 not over P500,000 excess over P250,000 Over P70,000 but not P8,500+20% of the Over 500,000 P125,000+34% of over P140,000 excess over P70,000 the excess over P500,000

Note: Effective January 1, 1999, the maximum rate shall be thirty-three percent (33%) and thirty-two percent 32% on January 1, 2000.

Note: When the tax due exceeds P2,000.00, the taxpayer may elect to pay in two equal installments, the first installment to be paid at the time the return is filed and the second installment on or before July 15 of the same year at the Authorized Agent Bank (AAB) within the jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered.

Value Added Tax (VAT) Sale of goods, other properties, and services in the Philippines, as well as importation of goods to the Philippines, are subject to the 12% VAT. VAT is imposed on the gross selling price (in case of sale of goods) and gross receipts (in case of sale of services).

Tax Rate

For output tax (0% or 12%) For input tax on importation of goods or local purchases of goods, properties or services, including lease or use of properties, in the course of trade or business (0% or 12%)

For creditable input tax on advance VAT payments made by the seller/owner of refined sugar and importer/miller of wheat/flour (12%)

Stock Transaction Tax 1/2 of 1% of gross selling price is imposed on the sale, barter, exchange or other disposition of shares through the facilities of stock exchange, which shall be paid by the seller or transferor.

Source: Bureau of Internal Revenue (BIR)

COST OF LIVING

I. Education

The Philippines has both private and public school systems for elementary, secondary and college levels. The public schools are subsidized by the Government, fees are minimal and teaching is done in English and Filipino. The normal school year is from June to March.

Foreign nationals have a choice of going to either the elite local private schools, majority of which are run by religious orders and teaching is done in English, or the international schools.

English is the Philippines’ second native tongue, and it is widely taught in schools. In Cebu, there are over 40 registered English language schools/providers, and 9 universities providing language courses. (Source: Cebu Hub for English Learning Excellence or CHELE).

CEBU INTERNATIONAL SCHOOL Pit-os,

FEES SHEET FOR SCHOOL YEAR 2011-2012

1A. NEW STUDENTS $US FEE ENTRANCE FEE TUITION OTHER FEES TOTAL FEES (SY11-12) GRADE IN PESO IN PESO IN PESO (PESO PORTION ONLY) P3 $116 PHP 0 PHP 81,916 PHP 0 PHP 81,916 P4 $116 PHP 0 PHP 130,612 PHP 0 PHP 130,612 K $116 PHP 0 PHP 188,172 PHP 0 PHP 188,172 G1, G2 $1,560 PHP 146,158 PHP 180,798 PHP 119,598 PHP 446,554 G3, G4 $1,560 PHP 146,158 PHP 180,798 PHP 120,780 PHP 447,736 G5 $1,560 PHP 146,158 PHP 180,798 PHP 124,355 PHP 451,311 G6, G7 $1,560 PHP 146,158 PHP 193,341 PHP 122,772 PHP 462,271 G8 $1,560 PHP 146,158 PHP 193,341 PHP 133,855 PHP 473,354 G9, G10, $1,560 PHP 146,158 PHP 281,155 PHP 143,368 PHP 570,681 G11 G12 $1,560 PHP 146,158 PHP 281,155 PHP 153,666 PHP 580,979

1B. RETURNING STUDENTS $US FEE ENTRANCE FEE TUITION OTHER FEES TOTAL FEES GRADE IN PESO IN PESO IN PESO (PESO PORTION ONLY) P4 $116 PHP 0 PHP 130,612 PHP 0 PHP 130,612 K $116 PHP 0 PHP 188,172 PHP 0 PHP 188,172 G1 $1,560 PHP 146,158 PHP 180,798 PHP 119,598 PHP 446,554 G2 $1,560 PHP 0 PHP 180,798 PHP 119,598 PHP 300,396 G3, G4 $1,560 PHP 0 PHP 180,798 PHP 120,780 PHP 301,578 G5 $1,560 PHP 0 PHP 180,798 PHP 124,355 PHP 305,153 G6, G7 $1,560 PHP 0 PHP 193,341 PHP 122,772 PHP 316,113 G8 $1,560 PHP 0 PHP 193,341 PHP 133,855 PHP 327,196 G9, G10, $1,560 PHP 0 PHP 281,155 PHP 143,368 PHP 424,523 G11 G12 $1,560 PHP 0 PHP 281,155 PHP 153,666 PHP 434,821

Source: Cebu International School - http://www.cis.edu.ph/

For college education, the tuition fee in top private universities such as the University of San Carlos ranges from P17,000–P40,000 per semester.

Yearly tuition range of international students would range from US$ 1,000 to US$ 2,500. This does not include room, board or other external costs. Tuition may vary by area of studies, course level, campus location, student nationality or permanent residence, enrollment year and other criteria. (Source: 4 International Colleges and Universities - http://www.4icu.org/)

Estimated Tuition Fee for SY 2011-21012

$US Fee Tuition Fee(Includes Miscellaneous fee & other fees) BS Computer Engineering USC- Talamban Campus 678.60 Php29,000.00 CIT-University 585.00 Php25,000.00 USJR-Main Campus 585.00-608.40 Php25,000.00-26,000.00 BS Nursing CIT-University 725.40 Php31,000.00 Cebu Doctor’s Univ 725.40-819.00 Php31,000.00-35,000.00 Cebu Normal Univ. 351.00-468.00 Php15,000.00-20,000.00 BS Commerce UP- Cebu 468.00 Php20,000.00 USC-Main Campus 561.60 Php24,000.00

II. Public Transport

Computation of Fares: Add-on Method

Land

1. Jeepneys

As of April 2012, fare costs P8.00 / person (US$0.19 cts) for the first 4 kilometers and an additional Php P0.90(US$.02) for every succeeding km.

2. Buses (usually used for long journeys)

As of April 2012, fare costs P8.50/person (US$.20cts) for the first 5 km + P1.20(US$.03) per succeeding km.

3. Taxi

As of January 2011, the flag down rate is P40.00 (US$0.93) for the first 500 meters and an additional P3.50 (US$0.08) for every succeeding 250-metres or 2 minutes waiting time.

4. Public utility vans / Van for Hire (commonly known as V-Hire)

Generally cheaper than taxis but more expensive than jeepneys, a V-Hire is an air-conditioned van that can accommodate 14-16 passengers (excluding driver), and usually travel distances from 12km – 100 kms. They run on designated routes and usually pick up passengers at the start and end points of the routes, but passengers can alight with the driver’s agreement. Current rates for common routes (one-way) are:

Cebu City (SM Mall) to Lapu-lapu City – P35.00-P40.00(US$0.82-US$0.94) Cebu City (Ayala Mall) to Mandaue City/Consolascion/Liloan – P35.00(US$0.82) Cebu City (Citilink Terminal) to Talisay City/Minglanilla – P 30.00(US$0.70) Cebu City (Citilink Terminal) to Naga – P 35.00(US$0.82) Cebu City (Ayala Mall) to Balamban – P110.00 - P120.00(US$__)

5. Tricycles

P5.00 – P10.00(US$__) for ordinary fare (You would likely share the ride with 4 or 5 people.) Add P10.00 - P30.00 (US$__)for special trips.

Sea

For updated rates, please check websites of major shipping lines:

2Go TRAVEL (formerly Cebu Ferries, Negros Navigation, SuperFerry, and SuperCat): http://travel.2go.com.ph/

COKALIONG SHIPPING LINES: http://www.cokaliongshipping.com/

SULPICIO LINES INC. : http://www.sulpiciolines.com/

SUPERCAT: http://www.supercat.com.ph/

TRANS-ASIA SHIPPING LINES: http://www.transasiashipping.com/

OCEAN FAST FERRIES (OCEANJET): http://www.oceanjet.net/

SRN FASTCRAFTS (WEESAM EXPRESS): http://www.zimnet.com/weesam/php/index.php; http://www.weesamexpress.net/

Sample Rates / Fares:

Fare: Manila – Cebu City

Vessel: Superferry (slow boat trip)

Fare Breakdown

Net Fare 650.00

Security Fee 30.00

Terminal Fee 44.64

Fuel Surcharge 55.00

Insurance 20.00

Meal Fee 174.00

Linen Fee 30.00

Web Admin Fee 133.93

Vatable Amount 1,137.57

VAT 12% 136.51

Total Amount Php 1,274.08

Source: 2GO Travel - http://travel.2go.com.ph/

Vessel: Supercat (fast craft)

Discounted Fare Route Promo Fare Senior Disabled Student Minor Discount Citizen Citizen Privilege (3-11 yrs. old) CEBU- PhP 530.00 428.57 480.00 510.00 300.00

Note: • Fare does not include terminal fee. Terminal fee outgoing Cebu and trips is PhP 25.00. • Rates are inclusive of 12% VAT.

Source: Supercat - http://www.supercat.com.ph/fare.asp

Vessel: Oceanjet (fast craft)

Promo and Discounts: Cebu to Tagbilaran & vice versa one-way trip is Php500.00.

Advanced purchased rates for one way or round trip tickets: ONE (1) day before departure date - Php400.00 - open air accommodation only TWO (2) days before departure date - Php500.00 ONE (1) week before departure date - Php400.00

Computation of discounts applicable for Libre Balik Promo. Senior Citizens - less 20% round trip or one way Students : One Way - Php500.00, Round Trip - offer them the libre balik promo of Php800.00 Minor : Php600.00 less 50% = Php300.00 per way

Source: Oceanjet - http://oceanjet.net/

Air

Air Transport (Domestic Flights to Cebu – One way Fare per Person)

Promotional Fare: PhP 1,000.00 to PhP 3,000.00 (some airline promo fares go as low as P1.00 for domestic destinations within prescribed travel dates)

Regular Fare: PhP 4,000.00 to PhP 6,000.00

III. Shopping and Entertainment in Cebu

The country's leading producer of export-quality handicraft products, Cebu is a shopping haven for novelty items at bargain prices. Highly polished products also include fashion accessories, furnishings and giftware.

As a major trading center in Central and Southern Philippines, Cebu has numerous malls, commercial centers and hypermarkets, such as: SM City Cebu, Ayala Center Cebu, the Gaisano chain of stores, Robinson's Mall, Elizabeth Mall, Mango Square Mall, Cebu Parkmall, J Centre Mall, SM Save More, Rustan’s Shopwise, Fooda Savers Mart, Colonnade, La Nueva Supermart, Tita Gwapa stores, and a slew of retail shops in Colon Street, Manalili Street and Cebu City’s downtown areas.

There are also strip malls and entertainment centers like Banilad Town Centre, Bridges Town Square, Cebu IT Park, Crossroads, The Gallery, One Acacia Place, etc.

Cebu also has accessible and well-stocked public markets such as the Carbon market, Tabo-an market, Lapu-lapu City market, and Mandaue City market.

Prices in shopping and entertainment centers in Metro Cebu are at par or even cheaper than those in Metro Manila and other urban centers in the country. Dining out is relatively inexpensive with budget meals from Php25.00 (“carenderia”) to Php100.00/person, and buffet / eat-all-you-can meals from as low as Php 150.00/person in local restaurants to about Php 2,000/person in luxury hotels &resorts.

Below is a sample list of retail prices of basic and prime commodities in Cebu as of February 13, 2012:

DTI WEEKLY PRICE MONITORING – CEBU CITY As of February 13, 2012 Source: DTI-Cebu Provincial Office

REGION VII - Key City: Cebu City Prevailing Price BASIC NECESSITIES AND PRIME COMMODITIES Wet Markets Supermarkets/ Groceries I. CANNED SARDINES tomato sauce, 155g 5 5 5 12.60 12.55 Family 12.25 12.50 Youngstown 12.25 12.20 Mega 12.25 12.25 2. PROCESSED MILK Condensed Filled Alaska 300 ml 47.00 46.60 Milkmaid 300 ml 55.00 54.85 Evaporated Filled Alaska 370 ml 33.50 33.10 Alpine 370 ml 45.00 44.50 Angel filled 410 ml N/S 35.75 Powdered Filled Alaska 150 g 49.95 49.95 Bear Brand w/ Iron, 180 g - 50.85 Bear Brand, 150 g 46.50 46.40 Nido Full Cream,160 g 68.00 68.55

REGION VII - Key City: Cebu City Prevailing Price BASIC NECESSITIES AND PRIME COMMODITIES Wet Markets Supermarkets/ Groceries 3. COFFEE (REFILL) Blend 45, 25 g 16.75 16.45 Great Taste(Granules) 25 g 18.75 18.65 Nescafe 25g 19.45 19.45 Nescafe 50 g 38.00 38.20 4. DETERGENT/LAUNDRY SOAP 400 g/480 g Perla, 400g 44.00 44.00 Surf Bar Kalamansi 420 g 17.50 17.70 5. BREAD Loaf Bread 410 g 34.00 Loaf Bread 500 g 42.50 Pandesal , 25 g 2.00 6. SALT *( Iodized) Fidel, 250 g 7.50 7.40 Rock Salt, 1kg 14.45 15.00 7. FLOUR-25 kg/ bag Hard General * (GMC) 900.00 ( Kutitap) Baker's - GMC & PILMICO 890.00 Soft Amigo (PFMC) ( Mega - Pilmico) Isla - GMC 790.00 Island (GMC) 800.00 8. PROCESSED/ CANNED PORK Luncheon Meat CDO (Chinese Style)165 g 28.95 Maling 397, g * 69.75 Purefoods,Chinese Style165g) 30.55 Meat Loaf Argentina 170 ,g 17.90 17.85 Gusto ,150 g * 16.45 9.PROCESSED/CANNED BEEF Corned Beef Argentina 175g 32.25 32.20 CDO,150 g 25.50 25.50 Purefoods,150 g 46.75 46.75 Beef Loaf Argentina, 170 g (16.28) 17.25 17.20 Purefoods (Superior),200 g N/A 24.90 Winner, 170 g 18.45 10.Instant Noodles-Chicken Flavor Lucky me,55 g 7/21/08 6.90 6.90 Payless,55 g 6.10 6.10 11. VINEGAR Datu Puti,(Gin Bottle)350 ml 12.20 12.05 Marca Piña Sukang Puti(Gin btl.350ml NS 9.85 Silver Swan(Gin btl.)350ml 11.20 11.05 12. PATIS Datu Puti,350 ml N/A 16.60 Rufina ,325 ml 14.75 Silver Swan,350 ml (special) 13.75 13.60

IV. Accommodation

A. Hotels & Resorts and Pension Houses / Tourist Inns

Hotels & Resorts:

For local residents: Standard room (air-conditioned, twin-bed, cable TV, free breakfast): range from Php 1,500/day (economy hotels) to Php 12,000/day (luxury hotels & resorts)

For non-local residents: PHP13,000 to Php 18,0000 (luxury hotels) or range from US$ 70 (economy hotels) to US$ 500 (luxury hotels)

Pension Houses/Tourist Inns: Single bed (Php 600 – Php 800, without breakfast) Double bed (Php 900 – Php 1,000 without breakfast) Double bed (Php 1,200 – Php 1,700, with breakfast) or range from US$ 20/day – US$ 40/day

B. House and Apartment

Rental:

Sample Ad Postings as of February 2012 Php US$ (US$ 1 = Php 42.00) 2-storey, 2-bedroom fully-furnished house in a subdivision in Lapu-lapu City P 17,000 / month; $ 405 / month * 5 minutes= Gaisano Grand Mall 1 month advance, 2 months 1 month advance, 2 *25-30 minutes=domestic and international airport deposit months deposit *5 minutes = Mactan Doctors hospital *15-25 minutes= seaside and beaches *5 minutes =public market =minimum of 6 months= 17,000 monthly rental rate =water, electric, internet connection is excluded 2-bedroom, 55 m² apartment for rent, long or short term in Mandaue City P 35,000 / month $ 833.33 / month * Fully Furnished and fully equipped kitchen * Fully air-conditioned * Cable TV with CNN NBC DISNEY and more (subject to change) + DVD Player * Free high speed internet * Secure parking + 24-hour security guard + 24-hour cameras surveillance * Personal Electronic Safe * Hot and cold shower for bathing/washing * Weekly linen change and cleaning services * Spacious two bedroom units, maximum 4 persons * 5 minute walk from new Metro shopping centre 2-storey, 3-bedroom, 632 m², House at Barangay Busay, Lahug, Cebu City P 100,000 / month $2,381 / month * Lot Area 632 m²; Floor Area 350 m² * Location: Busay, Cebu City (5 kilometers / 15 minutes from JY Square, Lahug) Outlay Advance Rent 2 Outlay Advance Rent * House Built: November 2005 (well-maintained); Contemporary Home with TEGOLA Roof months + Security Deposit 2 2 months + Security * Very spacious Living & Dining Areas, floors with imported Spanish tiles months = Deposit 2 months = * Master's Bedroom (approximately 27 sqm) with Walk-In Closets & Toilet & Bath (imported P 400,000; $ 9,524; tiles & fixtures) Rent/Lot Area= P158/m²; Rent/Lot Area= * 2 Spacious Bedrooms (20-24 sqm) with own Toilet & Bath (imported tiles & fixtures) Rent/Floor Area= P285/m²; P158/m²; * Maid's Quarter with own Toilet & Bath Rent/Floor Area= * Laundry Area P285/m²; * 2.5 covered car garage + 3 open car garage * Centralized Hot and Cold Water with Filter & Softener System * Basement Area (approximately 70 sqm which can be designed for additional living space) * 2 Kitchens: Clean Kitchen with built-in Italian electric stove top & oven & hood with customized cabinets by Anything Timber * Dirty Kitchen with stainless steel tops and pantry * Two-level Decks with City and Mountain Views * Cathedral Ceiling * Clean Title & updated property taxes

Construction of New House (Sample Costing):

As of January 2012, the average estimated cost per square meter for building a home in the Philippines, done by a contractor, is: *Between Php 17,000 and Php 20,000 for the average subdivision-home / Between US$ 405 – 476 /per sqm *Between Php 20,000 and Php 25,000 for ‘Expat houses’ (‘foreigners’) / Between US$ 476 – 595/per sqm

Included are mostly: 1. Design, Blueprints, Permits 2. Plumbing 3. Electrical works 4. Embedded items for Aircon 5. Floor, walls and ceiling finishes 6. Roof 7. Doors and windows 8. Painting 9. Hardware items, door locks, hinges

Excluded are mostly: (offered but charged separate) 1. Deposits to Electrical and Water utilities 2. Fence and gates 3. Swimming pool 4. Aircon units 5. Furnitures and cabinets 6. Transformer for 110 volts 7. Deepwell and reservoir

Source: http://sibonga.com/

C. Condominium Ownership (Metro Cebu)

Sample Ad Postings as of February 2012 Php US$ (US$ 1 = Php 42.00) fully-furnished one bedroom unit in Ayala Business Park P 33,000/month (Exclusive of monthly $ 786 / month Fully-Furnished One Bedroom Unit for Rent on the 8th FLOOR of building (ready for utility bills and association dues) occupancy) Floor Area: 53.75 sqm, inclusive of one basement parking slot 2 months Deposit, 3 months Advance, 1 Year Contract

A short walk away to Ayala Center, Cebu City Sports Club and accessible to Cebu’s top Private Schools, Golf Clubs, Churches, shopping malls and restaurants

Description A fully-furnished one bedroom unit in Park Tower 2 (ready for occupancy), where you have more options to enjoy condominium living in the premier business district in Cebu. - Cathedral ceiling lobby with reception/security counter - 24/7 security guard - Passenger elevator - CCTV monitoring in common areas - Basement parking - Comprehensive fire alarm system - Water reservoir - Standby power generator for common areas - Building Administration Office - Social Hall - Swimming Pool A mixed-use (Office, Commercial, Business and Residential) SALEABLE AREAS: SALEABLE AREAS: Condominium in Cebu Business Park, Cebu City Residential Suites @ P95,000- Residential Suites @ 99,750/sq.m $ 2,262 – $2,375 / sqm; Office Spaces @ P86,000-90,000/sq.m Office spaces @ $ 2,048 - $ 2,143 /sqm Condominium unit in Mabolo, Cebu City STUDIO UNIT (SALE) STUDIO UNIT (SALE) Floor Area: 23 sq meters Floor Area: 23 sq meters Proximity to... General Hospital (10 min); Downtown Area (10 min); Seaside(30 Price: PhP 1,843,154 Price: $ 43,885 min); Shopping Mall (5 min); Police Station (10 min); Fire Station (10 min); Domestic Airport (45 min); International Airport (45 min) 1 BEDROOM 1 BEDROOM Floor Area: 41 sq meters Floor Area: 41 sq meters Price: PhP 2,927,257 Price: $ 69,697

2 BEDROOM 2 BEDROOM Floor Area: 60 sq meters Floor Area: 60 sq meters Price: PhP 5,030,209 Price: $ 119,767

3 BEDROOM 3 BEDROOM Floor Area: 101 sq meters Floor Area: 101 sq meters Price:PhP 8,867,418 Price: $ 211,129 Residential condominium Unit (Penthouse) in Cebu Business Park, P 25,028,040 $ 595,906 Cebu City Floor Area 256 sq. m. Floor Area 256 sq. m.

D. Land & Office Space Rental

Php US$ (US$ 1 = Php 42.00) Land & Office Space Rent in Metro Cebu P 350 – P 600 per sq.m. / month 8.33 – 14.28 PEZA-accredited IT building in Cebu IT Park Basic commercial terms: Basic commercial terms: Rental Rate: P475/sqm/mo. Rental Rate: $11.31/sqm/mo. Parking Rate: P1,400/slot/mo. Parking Rate: $33.33/slot/mo. CUSA (admin): – P110/sqm/mo. CUSA (admin): – $2.62/sqm/mo. A/C Charges: P90/sqm/mo. plus actual A/C Charges: $2.14/sqm/mo. plus actual consumption consumption A mixed-use (Office, Commercial, Business LEASEABLE AREAS: LEASEABLE AREAS: and Residential) Condominium in Cebu Office @ P750.00/sq.m. (Ground Floor) Office @ $17.86/sq.m. (Ground Floor) Business Park, Cebu City Office @ P500.00/sq.m. (Upper Floors) Office @ $11.90/sq.m. (Upper Floors) Parking Lot @ P3,000.00/month (2nd-5th Floor) Parking Lot @ P71.43/month (2nd-5th Floor)

E. Factory and Warehouse Space Rental

Php US$ (US$ 1 = Php 42.00) Factory / Warehouse Space rental Range of P80 - P120 per sqm, exclusive of 12% Range of $1.90 - $2.86 per sqm, (per sq. m. / month) VAT exclusive of 12% Value-Added Tax

Example of an ad posting for a Mandaue City lot: Warehouse lot of 1,244 sqm @ Warehouse lot area of 1,244 sqm, with office, 2 $1.90/sqm. Total rental = $2,370, CRs, high ceiling at P80/sqm. Total rental is exclusive of 12% Value Added Tax P99,520/month, exclusive of 12% VAT. For Lease-Warehouses at Mandaue City Rent P 60,000/month ~ P 120,000/month Rent $1,429/month ~ Or about P 120/per sqm $2,857/month Location: Mandaue, Cebu City - strategically located Or about $2.86/per sqm in the city, church, banks, hotels, commercial Outlay Advance Rent 3 months + Security Deposit 2 establishments. Transportation accessible. months = P 300,000 ~ P 600,000 Outlay Advance Rent 3 months + Year Built: 2010: Building Structure Construction: Security Deposit 2 months = Concrete; with Water Supply Floor Area 500 sq.m. ~ 1,000 sq.m. $ 7,143 ~ $ 14,286

Floor Area 500 sq.m. ~ 1,000 sq.m.

MANPOWER COSTS

I. Manpower Resources (Labor):

The laws on labor standards and employment relations are consolidated in the Labor Code of the Philippines. The salient points of employment conditions and employee benefits under the Philippine labor laws are as follows:

Hours of Work. Eight (8) hours per day or 48 hours per week. Rest periods of short duration during work hours shall be counted as hours worked.

Meal periods. Every employer shall give his employees not less than sixty (60) minutes time- off for their regular meals.

Night shift differential. Every employee is entitled to a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work performed between ten o’clock in the evening and six o’clock in the morning.

Work Day. A day is the 24-hour period which commences from the time the employee regularly starts to work.

Overtime work. An additional compensation equivalent to an employee’s regular wage plus at least twenty-five percent (25%) shall be given if the employee does overtime work. Work performed beyond eight hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at least thirty percent (30%) thereof.

Minimum Wage (Manufacturing Sector). The minimum wage rate for agricultural and non- agricultural workers in every region are determined by the Regional Tripartite Wages and Productivity Board.

Fringe Benefits. This refers to goods, services, or other benefits furnished by an employer in cash or kind, in addition to basic salaries; to managerial or supervisory employees such as but not limited to the following:  Housing  Expense Account  Vehicle of Any Kind  Household personnel, such as maid, driver and others  Interest on loans at less than market rate to the extent of the difference between the  market rate and actual rate granted;  Membership fees, dues and other expenses borne by the employer for the employee in  social and athletic clubs or other similar organizations;  Holiday and vacation expenses  Educational assistance to the employee or his dependents; and  Life or health insurance and other non-life insurance premiums or similar amounts in  excess of what the law allows

Managerial employees refer to those who are given powers or prerogatives to lay down and execute managerial policies and or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees. Supervisory employees are those who effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment.

Overtime (OT) Remuneration. Overtime premium is allotted for work exceeding the maximum prescribed period. Every employee who is entitled to premium pay is likewise entitled to the benefit of overtime pay Computation of Wages.

Computing Overtime: In Ordinary Days Plus 25% of the hourly rate multiplied by the number of hours.

On a Rest Day, Special Day or Regular Holiday Plus 30% of the hourly rate on said days multiplied by the number of hours.

Computing pay for work done on: A Special Day (130% x basic pay) A Special Day, which is also a scheduled Rest Day (150% x basic pay) A Regular Holiday (200% x basic pay) A Regular Holiday, which is also a scheduled Rest Day (260% x basic pay)

Computing Night Shift Premium where Night Shift is a Regular Work: On Ordinary Day (110% x basic hourly rate) On a Rest Day, Special Day, Regular Holiday (110% of regular hourly rate for Rest Day, Special Day, Regular Holiday)

Computing Overtime on Night Shift: On Ordinary Day (110% x overtime hourly rate) On Rest Day, Special Day or Regular Holiday (110% x overtime hourly rate for Rest Days, Special Days, Regular Holidays)

Computing 13th Month Pay: Total basic salary earned for the year exclusive of overtime, holiday, and night shift differential pay divided by 12 = 13th month pay.

Source: Bureau of Working Conditions, Department of Labor and Employment http://www.bwc.dole.gov.ph/faq.php?page=2

DAILY MINIMUM WAGE RATES REGION VII, Central Visayas Per Wage Order No. ROVII-16 a/ Effective September 22, 2011

MINIMUM WAGE RATES INDUSTRY/SECTOR CLASS A CLASS B CLASS C CLASS D

Non Agriculture P305.00 P285.00 P275.00 P260.00

Agriculture

Non-Sugar 287.00 270.00 255.00 240.00

Sugar 255.00 255.00 255.00 255.00

Sugar Mills 275.00 275.00 275.00 275.00

Class A - Cities of Carcar, Cebu, Danao, Lapulapu, Mandaue, Naga and Talisay, and the Municipalities of Compostela, Consolacion, Cordova, Liloan, Minglanilla, and San Fernando (or expanded Metro Cebu) Class B - Cities of Toledo and Bogo, and the rest of the Municipalities in the Province of Cebu except the municipalities in the Islands of Bantayan and Camotes Class C - Cities and municipalities in the Provinces of Bohol and Negros Oriental

Class D - Municipalities in the Province of Siquijor and municipalities in the Islands of Bantayan and Camotes

a/ Grants a P20.00 basic wage increase per day to all minimum wage workers in the region in all sectors.

Issued August 31, 2011, published at Sun Star Daily on 7 September 2011. Source: National Wages and Productivity Commission Department of Labor and Employment http://www.nwpc.dole.gov.ph/pages/region_7/cmwr_table_r7.html

II.Mandatory Employment Contribution

13th Month Pay. Employers are required to give their employees a 13th month pay equivalent to at least one (1) month salary.

13 th month pay should be given not later than December 24 of every calendar year

Contribution to Home Development and Mutual Fund (HDMF). Companies/employers are also required to contribute at least P100.00 per month to HDMF for employee benefits. Companies/employers remit this contribution plus that of the employee’s which will be deducted from their payroll, in accordance with the periodic remittance schedule provided by HDMF.

Contribution to National Health Insurance Program (NHIP). As mandated by Republic Act 7835 on Medicare Program which is administered by the Philippine Health Insurance Corporation (Philhealth), both employers and employees are to contribute for the medical insurance/benefits of the employees in accordance with the schedule provided by Philhealth. Premium Contribution Schedule - For the Employed Sector - Effective January 1, 2007 (pdf file) (Source: Philippine Health Insurance Corporation http://www.philhealth.gov.ph/members/employed/contri_tbl.htm)

Contributions. As Mandated by law, both employer and employees are to contribute for the social security benefits of the employees in accordance with the new schedule provided by SSS. SSS Contribution Schedule - Effective January 1, 2007:

Source: Social Security System http://www.sss.gov.ph/sss/printversion.jsp?id=111&file=regi_contrib_table.html

TRANSPORTATION COSTS

OCEAN FREIGHT RATES Freight Rates of Ocean going Vessels (20-Footer Container Van) Route Freight (US$)

Manila - Kaoshiong 300.00

Manila - Hongkong 40.00 – 540.00

Manila - Singapore 75.00 – 650.00

Singapore - Manila 75.00 – 650.00

Manila - Bangkok 70.00 – 650.00 Manila - Jakarta 60.00 – 550.00 Jakarta - Manila 60.00 – 550.00 Manila - Nagoya/Yokohama 300.00 – 900.00 Manila - Osaka 300.00 – 750.00 Manila - Tokyo 350.00 – 850.00 Cebu - Osaka 650.00 Cebu - Tokyo 650.00 Manila - Middle East 1,795.00 Manila - US West Coast 1,490.00 – 2,510.00 Manila - US East Coast 2,450.00 – 3,985.00 Manila - Northern Europe 2,050.00 Manila - Central & Southern Europe 1,250.00 Last Updated: April 2011

Above are the current ocean freight rates from DTI-PSB accredited sea freight forwarders for general merchandise and cargoes. These rates are determined based on recent activity and current freight rates in the international market.

Source: Philippine Shippers’ Bureau

FREIGHT RATES OF DOMESTIC VESSELS FOR EXPORT CARGOES Breakdown of Total Charges

Distance Total Charges Sea Sea Route Charges 1 nautical Auxiliary from Transport Charges Transport Transport Freight/n.m. miles Charges Repositiong Freight/n.m. (US $) Freight (n.m.) 2 (US $) Manila – Cebu 392 553.94 30.12 144.23 311 0.79 Manila - Cagayan de Oro 504 680.34 30.91 166.61 369 0.73 Manila – Zamboanga 512 689.37 30.91 166.61 384 0.75 Manila - Gen. Santos 723 927.50 30.91 166.61 453 0.63 Manila – Davao 829 1,047.14 30.91 166.61 507 0.61

Source: Domestic Shipowners Association 1 Includes local arrastre at ports of origin and destination, wharfage & doc. stamps. 2 Freight of empty containers

FREIGHT RATES FOR CONTAINERIZED CARGOES OF LOCAL ORIGIN/DESTINATION Route Distance(n.m.) Freight – $ Rate/ nautical Rate 1 US S2 1 US $ 2 $ Rate/ n.m. P miles (n.m.) Manila – Cebu 392 17,634 354.88 0.79 Manila - Cagayan de Oro 504 21,658 435.86 0.76 Manila – Zamboanga 512 21,946 441.65 0.76

Manila - Gen. Santos 723 29,319.92 590 0.80 Manila - Davao 892 33,335 670.86 0.75

Source: Domestic Shipowners Association 1 Excluding 10% VAT 2 Exchange Rate : 1 US$ = P41.85

FREIGHT RATES FOR CONTAINERIZED CARGOES FOR SELECTED ROUTES: Another category of cargo transport involves non-containerized breakbulk cargoes. Tabulated below are the attendant freight rates for selected routes: Distance Route (n.m.) Freight (per cbm or ton) Rate/n.m. Rate/ n.m. Manila – Hongkong 633 US$ 5 US $ 0.0079 Manila - Keelung, Taiwan 732 US$ 15 US $ 0.02 Manila – Singapore 1,308 US$ 12 US $ 0.009 P 503.23 - 773.52 US$ Manila - Cagayan de Oro 504 US $ 0.02-0.03 10.12- 15.56 P 586.07 - 1,054.54* Manila - Gen. Santos 723 US $ 0.016 -0.029 US$11.79 - 21.22 P 774.57 - 1,190.56 Manila - Davao 829 US $ .018 - 029 US$15.59- 23.96 Source: Philippine Shippers’ Bureau for the oceangoing rates and Maritime Industry Authority for the domestic rates. *Covers the range of freight rates for Class C to Class A commodities which are now deregulated

Mailing Rates

International (As of June 16, 2010) Airmail Letters P 30 – 3,545.00 (20 g. - 2000 g) Aerogram and Postcards P13.00/pc. to all countries via airmail Printed Matter & Small Packet (20 g -1,000 g.) P25.00 - 1,695.00 (add’l. 500g or less) P435.00 - 850.00 Domestic (As of June 2011) Ordinary Mail P7.00 - 113.00 (Intra) (first 20 grams to 2k) P9.00 - 135.00 (Inter/Airmail) Priority Mail P20.00 - P 155.00 (Intra) (first 20 grams to 2k) P25.00 - P 205.00 (Inter) Express (first 20 grams to 2k) P40.00 - 170.00(Intra) P45.00 - 225.00 (Inter) Registered P25.00 - 155.00 (Intra) (first 20 grams to 2k) P30.00 - 205.00 (Inter/Airmail) 3rd Class & C.O.D. P5.00 - 90.00 (Intra) (first 20 grams and 2k) P6.00 - 101.00 (Inter)

Source: Philippine Postal Corporation http://www.philpost.gov.ph/

NTERNATIONAL SHIPPING

FedEx International For International Priority Shipments (Rates exclude special fee and fuel surcharge) Major China(South), China Australia, Canada, France, Czech Brazil, Russia, US Puerto Destinations Hong Kong, (Excluding Cambodia, Mexico Germany, Republic, Panama, South (Western Rico, (From Taiwan South), India, UK Israel Uruguay Africa, Region) U.S. Manila) Japan, New UAE (Rest of Taiwan Zealand Country)

0.5 kg US$19.10 US$31.70 US$40.30 US$44.80 US$45.60 US$45.00 US$49.00 US$54.00 US$42.60 US$42.60 1.0 kg US$22.60 US$34.70 US$45.90 US$51.30 US$53.80 US$54.00 US$58.80 US$64.80 US$48.60 US$48.60 1.5 kg US$26.10 US$37.70 US$51.50 US$57.80 US$62.00 US$63.00 US$68.60 US$75.60 US$54.60 US$54.60 2.0 kg US$29.60 US$40.70 US$57.10 US$64.30 US$70.20 US$72.00 US$78.40 US$86.40 US$60.60 US$60.60 2.5 kg US$33.10 US$43.70 US$62.70 US$70.80 US$78.40 US$81.00 US$88.20 US$97.20 US$66.60 US$66.60 Fuel Charge for Export Shipment as of January 2, 2012 is ______. Source: www.fedex.com.ph

DHL International

Major Destinations Rates (from Manila)

(Documentation Package, 1kg)*

Hong Kong, Singapore US$18.66 China, Indonesia, Thailand, Japan US$24.33 United Arab Emirates(Dubai/Abu US$68.74 Dhabi) Italy US$59.57 Spain, Finland, Denmark US$68.74

United States US$37.71 * China US$30.90

*Inclusive of Fuel Charge (Last Updated: April 11,2011) Source:http.dhl.com.ph

UTILITY COST

I. FUEL AND GAS

PREVAILING RETAIL PRICES OF PETROLEUM PRODUCTS IN CENTRAL VISAYAS As of March 29, 2012 Area: Cebu City

P R O D U C T S Prem / Vortex ULG / ULG / CO. Velo Blaze Regular ADO Kero DIFF XCS Gold DIFF Extra Silver DIFF DIFF DIFF DIFF OLD NEW OLD NEW OLD NEW OLD NEW OLD NEW OLD NEW CALTEX 57.27.3 56.92 60.79 48.15 54.26 PETRON 64.80 65.05 0.25 55.132 55.38 0.25 54.13 59.74 59.99 0.25 46.80 47.05 0.25 54.79 SHELL 61.30 58.55 58.30 56.94 47.80 55.02 Fying V none 56.30 55.95 none 47.95 none PTT none 55.36 55.06 none 47.79 none

STAR OIL none 55.53 54.53 none 47.20 none Total (Phil) none 56.90 56.50 none 47.65 none 0 PREVAILING RETAIL PRICES OF LPG PRODUCTS IN CENTRAL VISAYAS As of March 29, 2012 Area: Cebu City

DEALER PICK-UP (PhP) RETAIL OUTLET (PhP) BRAND CAP OLD NEW OLD NEW 11 968 920 1003 950 GASUL 50 4399 11 1021 1026 928 SHELLANE 50 4360 4425 3997 11 1001 965 PRYCE 50 4355 4255 11 995.50 993.50 PETRONAS 50 4378 4128 FIESTA GAS / 11 975 920 985 950 CALTEX LPG 50 4415

Source: http://www.doe.gov.ph/

II. ELECTRICITY RATES

PDU”s Average Effective Rate, December 2009

PDU Residential Commercial Industrial Others Average VECO 7.5120 7.7059 6.3307 6.9602 6.9901 Note: Based on Monthly Operations Report Submitted by Private DU Source: www.doe.gov.ph

VISAYAN ELECTRIC COMPANY (VECO) Average rate in PhP per kWh September 2011 rates only

September 2011 Consumption Demand Load Customer Class (September 10 (kWh) (kW) Factor to October 9, 2011) Schedule I – FZ Streetlights 12,521 34,300 9.1295 Schedule II – R Residential 200 10.3206 General Schedule III – P 572 10.4355 Service Schedule IV – P General Power 5,353 9.2700 Schedule V – P Bulk Power 36,504 100 50% 8.2445 Wholesale Schedule VI – P 273,780 750 50% 7.7765 Power Special Schedule VII – P 730,080 2,000 50% 7.1190 Wholesale

Note: 1) Average rate was derived using the 0.75% Local Franchise Tax (LFT) of Cebu City. Customers outside Cebu City will be charged with 0.50% LFT. 2) Using the typical consumption of each customer class. 3) Demand of Schedule I – FZ is in Watts.

Source: VECO (emailed on Sept. 12, 2011 to [email protected] by Ms. ETHEL TANEO-NATERA, VECO Department Manager - CorpComm)

III. WATER RATES

MCWD New Water Rates Effective July 1, 2006

Commodity Charges

Consumption Rate Per Cubic Meter

Minimum / Service Charge 51-up cu. Cost per 30 11-20 cu.m. 21-30 cu. m. 31-40 cu. m. 41-50 cu. m. m. cu. m. (First 10 cu.m.)

P 15.00 / 48.40 / 462.50 / P 136.00 17.65 / cu.m. 48.40 / cu.m. 48.40 / cu.m. cu.m. cu.m. cu.m.

Source: Metropolitan Cebu Water District (MCWD). Charges apply only for a 1/2" inch domestic connection (meter size).

Service Charges based on Meter Size (minimum = 0 – 10 cu. m.)

Meter Size Regular Charge

½” 136.00

¾” 217.60

1” 435.20

1 ½” 1,088.00

2” 2,720.00

3” 4,896.00

4” 9,792.00

6” 16,320.00

8” 26,112.00

10” 37,536.00

Note: 5% less if payment is made on-time.

Source: Metropolitan Cebu Water District (MCWD)

IV. TELECOMMUNICATION RATES

LANDLINE RATES & CHARGES

PLDT Residential Plan

Monthly Service Fee P 650.00*

Outgoing call rates Local Free & Unlimited NDD P 5.10/minute Cellular P 14.00/minute IDD $ 0.40/minute

*GMM rate only. Rates inclusive of 12% VAT but absolute value may vary depending on foreign currency adjustment. Rates may change without prior notice.

MyDSL Internet Service Fees

Monthly Service Pac kage Type Speed Fee (Pesos) Xperience upt to 1.0 Mbps * 999 Xcite up to 2.0 Mbps * 1,995 Xcel up to 3.0 Mbps * 3,000

InterneInternet@Home Internet Service Fees

MONTHLY SERVICE FEE P990 Internet (up to 512 kbps) UNLIMITED Local Call UNLIMITED NDD Call P 5.10/min CELLPHONE Call P 6.50/min

IDD Call Top 21 Destinations US$ 0.40/min Selected Countries US$ 0.98/min Rest of the world US$ 2.18/min

Corporate Internet Packages

For Corporation's LAN to Internet Requirement Package Download CIR MRC (Php) SmallBiz Micro up to 3.0 Mbps 307 Kbps 3,000 SmallBiz Lite up to 3.5 Mbps 358 Kbps 4,000 SmallBiz Jr. up to 4.5 Mbps 454 Kbps 8,000 SmallBiz Sr. up to 5.0 Mbps 512 Kbps 14,500 Powerpacked A up to 6.0 Mbps 614 Kbps 20,000 Powerpacked B up to 7.0 Mbps 768 Kbps 35,000 Powerpacked C up to 8.0 Mbps 1024 Kbps 50,000 Source:www.pldt.com.ph

Cellular Mobile Phone System

Local Text Call Abroad Text Call NDD Globe P1.00 P6.50 same network P15.00 USD.40/min P7.00/min 7.50 other networks & Landline Smart P1.00 per 160 char P6.50 same network P15.00 USD.40/min 7.50 other networks per160 char & Landline Sun P0.50 same network P5.50 same network P2.00 USD0.10/mi P10.00/min 1.00 other networks 6.50 other networks & Landline

Sources: www.smart.com.ph,www.globe.com.ph,www.suncellular.com.ph,

SMART Broadband

Unlimited Home Broadband Plug-it Pocket Wifi Sim Only Micro Sim Canopy Wixmax Pow Starter Rocket Post Prepaid Post Pre Sim Only Sim Pre Post Plan Plan er Plug-it Plug-it paid paid paid Plan 495 Only paid paid 999 999 Plug Plan -it 999 One-time None None P12 P995 P3,995 None P3,985 None P40 None None P40 None fee 45 Monthy P999/ P999/ *P10 *P10 P10 for P999/ P495+P150 P999/ * P495/ P999/ *P10 P999/ fee month month per per 30 30 m month device month P10 month for month per 30 month 30 mins ins ammortization per 50 hours. mins mins /month for 50 30 Excess hours. Excess mins hours hours P10 for P10 for every 30 every 30 mins. min Inclusive Unllimit Unlimite Non None None Unlimit None Unlimit Non 50hrs Unlimited None( Unlimit Hours ed d e (Pay (Pay ed (Pay per use) ed e Pay ed (Pay per per (Pay per per use) use) per use) use) use) Speed Up to 1 Up to 1 Up Up to Up to Up to Up to 5 mbps Up to Up Up to 2 Up to 2 Up to Up to mbps mbps to 5 3.6 12 2 5 to 2 mbps mbps 2 2 mbp mbps mbps mbps mbps mbp mbps mbps s s Locked- 24 mos. 24 mos. Non None None 24 None 24 Non 6 mos. 6 mos. in period e mos. mos. e *Or may avail of any usage package (UnliSurf,Per Minute,Prepaid Lifestyle) Source: www.smart.com.ph

Fax Rates

Lo cal Rate

Local number Toll-free number Receiving faxes FREE $0.20 (USD) per page*

Receiving voice messages FREE $0.20 per minute

International Rate

Fax destination Send Rate

Philippines $0.39 (USD) / per page*

Currency:

*These rates apply to fax pages that take less than 60 seconds to transmit, which covers approximately 90% of all fax pages. Faxes, regardless of size, that take longer than 60 seconds to transmit will be billed on a per-minute basis instead of per page. Value Added Tax (VAT) may apply to all charges depending on your country of residence. Source: https://www.j2.com/jconnect/twa/getRates