Alaminos Paper

8/14/2019 Alaminos Paper

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A Novel Way of FinancingLocal Development Projects

of The City of Alaminos, PhilippinesHome of the Hundred Islands


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Colayco Foundation for Education &The City of Alaminos, Pangasinan

Alaminos Infrastructure Bonds(AIBs) or Alaminos Growth Bonds(AGBs) and Alaminos DelopmentCorporation (ADC)

C-Financials Proposed Structure Next Steps


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Colayco Foundation for Education

The City of Alaminos, Pangasinan


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The Colayco Foundation forEducation (CFE) is a non-stocknon-profit organization dedicated

to actively promoting financialliteracy for the average incomeearners, overseas Filipino workers,and students.

Our objective is to fill-in the dearthof public financial information,reach out to a bigger audience andspread the good news thatfinancial independence is withineveryones reach. This is our ownlittle way of contributing to

nation-building.


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CFE is a publisher of books onpersonal finance. These bestsellerbooks are authored by CFE Founderand Chairman, Francisco J. Colayco.These publications serve as a guidefor every Filipino on how to saveand grow their savings.

CFE embarked on publishing DVDs onthe same subject matter.


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From the beginning of our mission in 2003,we have conducted over 300 seminars andworkshops for government agencies andfinancial institutions, the armed services,trade and professional associations,

business clubs, community groups,academic institutions, and topcorporations in service, product andmanufacturing industries.

For overseas Filipino workers in the Far East,Middle East and Europe, we conductregular seminars in partnership with

private financial institutions, the OverseasWorkers Welfare, Philippine embassies andworkers associations.

We provide our audience ways to managetheir personal finances effectively byplanning, wise spending, saving andinvesting.


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The City of Alaminos, Pangasinan isthe center for trade, commerce andeducation in Western Pangasinan.Although it is a young city, it hasbeen identified as one of the growthcenters inRegion I. Home to the world-famous HundredIslands National

Park, Alaminoshas a wonderfulopportunity tofurther itsdevelopment byexpanding tourism,

trade and commerce.


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The Alaminos city government headed byMayor Hernani Braganza envisionsAlaminos to be a peaceful city, [with] welleducated, healthy and God-centeredcitizens, sharing fully in a development,

propelled by a competitive local economyanchored on ecotourism, agriculture,commerce and light industry, [and toserve] as the vibrant hub of WesternPangasinan and as a living showcase of afamily oriented, environmentally-sensitivegrowth with equity.

A step towards achieving this vision is thecreation of development projects withmechanisms that encourage activeparticipation from Alaminos locals. Thecity government currently has threepriority projects for which funding hasbeen earmarked. These enhancements tothe citys infrastructure are sure to benefit

Alaminians.


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Transport and trade go hand in hand. Witha good transport system, trade andcommerce is sure to be enhanced. Amain project of the city government is aterminal-market intended to be a hub ofpeople and goods. The terminal willcater primarily to provincial buses. It willconnect travelers to the various localtransportation options in Alaminos.

On the other hand, the market willshowcase wares not only from Alaminosbut also from Western Pangasinan, thus

there will be many more goods availableto buyers. Having the market side byside the terminal is also a way to keeptransport costs down. Goods cantherefore be bought potentially cheaper,than if the market were in anotherlocation. In addition with the terminal

attached, buying from the market will beconvenient for both residents andtravelers.


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Public health is another important areaof concern. The city governmentwould like to establish a hospital tocater to Alaminians. This hospital isenvisioned to provide low-cost high-quality healthcare. With the newhospital and dedicated medicalpractitioners, more patients can beaccommodated in the whole ofAlaminos whether for planned oremergency health needs. In this way,the city government safeguards itsgreatest resource-its people. Ahealthy Alaminian is a productiveAlaminian. In the future, the hope isthat this hospital will be a primarydestination for healthcare in thewhole of Western Pangasinan.


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The education of young Alaminians is atop priority. The city governmentwould like to establish a respectabletertiary education institution that

offers high quality education andformation at affordable prices. Theuniversity will educate and trainAlaminians in their chosen fields aswell as in their responsibilities ascitizens. It will also promote researchwhich could be useful for the

development of Alaminos. Theuniversity is envisioned to be theprimary destination for tertiaryeducation in Western Pangasinan.With well-educated residents ofAlaminos, the city government isensuring the citys progress andinfluence in the province for years tocome.


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In line with Investment Promotion,Point 8 of the Citys 10 PointAgenda, these projects are

potential avenues for growingwealth and private sectorparticipation. The citygovernment would like to usethis opportunity to promote andprovide alternative saving andinvestment vehicles to thecitizens of Alaminos.


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Alaminos Infrastructure Bonds (AIBs)or Alaminos Growth Bonds (AGBs)and Alaminos Development Corporation

(ADC)


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The Alaminos Infrastructure Bonds(AIBs) or the Alaminos GrowthBonds (AGBs) is an investmentinstrument conceptualized by the

local government of Alaminos. Theseinstruments will be sold directly to thelocal inhabitants of Alaminos on aretail basis in units of P50,000.00 (orin lots of P100,000.00).

In this way, if a project requires a totalfunding cost of P200,000,000.00, then

4,000 units (or 2,000 units) will besold. Through the purchase of thisunit, the citizens of Alaminos canexercise their civic duties at the sametime the success of this novel financinginstrument as well of the developmentprojects will be an additional source of

local pride.


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A pre-requisite to this instrument is theestablishment of the AlaminosDevelopment Corporation (ADC), acorporate entity that may be into but

not limited to development, projectmanagement, and arranger.

The ADC will serve as the mainproponent for development projects.

The ADC will focus on the design and

development of projects that will be ofgreat benefit to Alaminos.

The ADC will identify a local bank tohandle the actual implementation ofthe fund raising instrument issuance,administration, record-keeping,

regular repayment, and the like.


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C-Financials


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C FINANCIALS, a financial advisorycompany headed by Francisco J.Colayco, is pleased to offer its

services to the local governmentof Alaminos. The principals of CFINANCIALS have a combined100 years experience in the areaof investment. As such, CFINANCIALS is an excellentpartner in conceptualizing,managing and implementing thisinitiative.

C FINANCIALS is ready to designthe AIBs/AGBs to suit the needsand personality of Alaminos.


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Proposed Structure


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Univ

ersity

Ho

spital

Terminal

Alaminos

DevelopmentCorp.

(ADC)

Development|

ProjectManagem

ent|Arranger

+

=

PhP20

0M

1.

Equity

-owners

P

articipationCertificatesD

ividend

s

2.

Lenders

AIBs/AGBs5

%to8%Interest

3.

Part-owner,part-lender

+


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Next Steps


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1. Working CommitteeThe working committee is tasked to determine

the best course of action in pursuing the proposedprojects. It will commission a reputable researchfirm to do feasibility studies. Based on the findingsthey will draft a proposal of the project to be

presented to stakeholders. The working committeeis composed of representatives from the localgovernment and independent consultants.

The establishment of the working committeewill formalize the engagement between C-Finacials/Colayco Foundation and LGU-City ofAlaminos.

1. Feasibility StudiesA reputable research firm will be commissioned

to do feasibility studies on the three projects terminal-market, hospital and university. Thestudy will determine the economic viability of theprojects. It will determine the potentials andchallenges of each project, its technical andorganizational requirements and it will provide afinancial overview. Thoroughly analyzing theproposed business, operations and financialmodels, is a necessary step in maximizing thesuccess of the projects.


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3. Presentation to Top Stakeholders / Community /Select Group (Cooperatives, LGUs, Chambers ofCommerce)

In any development project it is important toinclude the stakeholders and target beneficiaries in

the various stages of the project. Theirparticipation will engender in them a sense of localpride and nationalism, valuable in buildingcommunity and sustaining development in the long

run.Top stakeholders such as the various LGUs,

chambers of commerce, cooperatives,

representatives from major sectors, etc. will beconvened. The working committee will thenpresent the projects and its plans to the assemblyin order to get their support, participation andfeedback.

4. Establishment of ADCServing as the main proponent of development

projects in Alaminos, the ADC will focus on thedesign and development of projects that will be ofgreat benefit to Alaminos.


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The ADC will also be responsible for managingdevelopment projects from its conception andexecution through to its evaluation stages. Lastly,the ADC will make the necessary arrangements tocarry out the novel model proposed for financing

development projects. The ADC, through a localbank will take charge of the fund raising instrument issuance, administration, record-keeping, regular repayment, and the like.

5. Seminar RoadshowsTo complement the LGUs efforts at promoting

citizen participation through the financing ofdevelopment projects, the Colayco Foundation for

Education will be conducting financial literacyseminars in Alaminos. Learning personal financialmanagement is one of the best ways of creatingand enhancing Alaminians saving culture. Thegoal of these seminars is to create awareness andmotivate personal change in ones personalfinances and its management and to introduceopportunities for investment in Alaminos.

Alaminos Paper

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