ISO 9001 Certified
NATIONAL DEVELOPMENT COMPANY
National Development Company
ISO 9001 Certified
BACKGROUND
National Development Company (NDC)
• Established in March 10, 1919 (~ 94 yrs)
• 100% government owned
• Established to function as the
government’s investment arm.
RRS (July 2012)
National Development Company
ISO 9001 Certified
National Development Company (NDC)
Mandate:
“to invest in pioneering and development-oriented
projects in which the private investors are unwilling,
because of the high risk or uncertainties involved, or
unable, because of the large investment required, to go
into, but which projects are needed by the country”
BACKGROUND
RRS (July 2012)
National Development Company
ISO 9001 Certified
NDC had a hand in the establishment and the privatization of the many
vital companies that are today among the biggest and oldest
companies in the country:
• Philippine Airlines (PAL)
• Philippine Electrical Manufacturing Company (PEMCO)
• Cebu Portland Cement Corporation
• Manila Textile Mills
• (continued…)
BACKGROUND
RRS (July 2012)
National Development Company
ISO 9001 Certified
National Development Company (NDC)
Companies started and privatized:
• Insular Sugar Refining Corporation
• Philippine Communication Satellite (Philcomsat)
• Philippine National Lines
• National Shipyard and Steel Corporation
• Manila Gas Corporation
• National Housing Authority
• National Coconut Corporation
• National Tobacco Corporation
• National Footwear Corporation
• National Abaca Corporation
• Others…
BACKGROUND
RRS (July 2012)
“Historically, the National
Development Company has functioned
as the mother of industries. It has
given birth to a number of industrial
enterprises embracing a broad
spectrum of sectors. It has played a
significant part in helping bring our
country to the threshold of the
Industrial Age.”
National Development Company
ISO 9001 Certified
NDC Today
An attached agency of the Department of
Trade and Industry (DTI), managing some
P4.6 Billion worth of investment portfolios.
RRS (July 2012)
National Development Company
ISO 9001 Certified
National Development Company (NDC)
“NDC shall engage or invest in or enter into joint
ventures with Filipino and foreign investors…
…in industrial, mining, agricultural, and other
enterprises, which may be necessary or contributory
to the economic development of the country, or
important to the public interest”
NDC Revised Charter
RRS (July 2012)
National Development Company
ISO 9001 Certified
Investment Guidelines
“Perform a strategic role as the government’s corporate
arm for developing, financing, and implementing
projects vital to the government’s industrialization
program..
..NDC’s undertakings, continue to abide by the
established guideline of deferring to private
initiative where it is adequate, and withdrawing
when the private sector is ready to take over.”
RRS (July 2012)
National Development Company
ISO 9001 Certified
Investment Guidelines
Investment Criteria
• Has critical and pioneering impact on national socio-
economic development
• Lack of or absence of willing investors to pursue project
• Commercially viable
• With exit mechanism
Investment Philosophy
Equity investment in areas of strategic value in line with the government’s perspective, where the highest economic development can be achieved.
NDC should not compete in areas which are adequately serviced by the private sector and other government entities;
NDC’s equity participation should be with preference for a proactive minority.
Consistent with the Medium Term Philippine Development Plan (MTPDP) and Investment Priorities Plan (IPP).
RRS (July 2012)
National Development Company
ISO 9001 Certified
Board of Directors
Chairman Secretary Gregory L. Domingo Department of Trade and Industry
Sec. Cesar V. Purisima Department of Finance
Sec. Florencio B. Abad Department of Budget and
Management
Sec. Carlos Jericho L. Petilla Department of Energy
Sec. Ramon J. P. Paje Department of Environment and
Natural Resources
Amando M. Tetangco Jr. Governor, Banko Sentral ng Pilipinas
Adrian S. Cristobal Jr. Managing Head, Board of Investments
Jose A. Nuñez, Jr. Chairman, Development Bank of the
Philippines
Virgilio A. Yuzon Representative, Private Sector
Ma. Lourdes F. Rebueno General Manager, National
Development Company
RRS (July 2012)
National Development Company
ISO 9001 Certified
Recent Projects
San Carlos Bio-Energy Inc. (SCBI) San Carlos Bioenergy, Inc. (SCBI), a joint venture project
between the private and the government sector, is an
integrated ethanol distillery and power cogeneration
plant with an output capacity of 125,000 liters per day
(lpd) of fuel grade ethanol and approximately 8 MW of
electricity. SCBI is the pioneering ethanol plant in the
country and the first in Southeast Asia.
RRS (July 2012)
The San Carlos Bioenergy plant in San Carlos City, Negros Occidental
National Development Company
ISO 9001 Certified
Recent Projects
Funding of the National Irrigation Administration’s (NIA) Irrigation Systems NDC was identified to provide funding for
the restoration and rehabilitation of existing communal irrigation systems of the National Irrigation Administration’s (NIA) under the pump-priming activities of the government.
Philippine Mining Development Corporation (PMDC)
PMDC is an affiliate of the Natural Resources Development Corp. (NRDC), the corporate arm of the Department of Environment and Natural Resources (DENR). PMDC has the mandate to implement the development plan of Mt. Diwalwal with its
exclusive mining rights in the area.
RRS (July 2012)
National Development Company
ISO 9001 Certified
Recent Projects
PITC-Pharma Inc. (PPI)
PITC Pharma is mandated to take the lead in the
implementation of the government’s Half-Priced Medicine Program. Under this initiative is a flagship
program known as Botika ng Bayan (BnB) that is a
network of privately operated drugstores distributing
high quality, low priced medicines.
RRS (July 2012)
National Development Company
ISO 9001 Certified
Charter Corporation
- Philippine International Trading Corp.
Asean Joint Venture Companies
Other Investments
RRS (July 2012)
National Development Company
ISO 9001 Certified
Other Investments
Laurel-Langley Companies
- Pinagkaisa Realty Corp.
- Kamayan Realty Corp.
- Batangas Land Co. Inc.
- GY Real Estate Inc.
RRS (July 2012)
National Development Company
ISO 9001 Certified
Other Investments
RRS (July 2012)
“NDC therefore, continue to perform a
strategic role as the government’s
corporate arm for developing,
financing, and implementing projects
vital to the government’s
industrialization program..
Others
- Lide Management Corp.
- Refractories Corp. of the Philippines
- Semirara Mining Corporation
- Phil. Veterans Inv't. and Dev't Corp.
- Manila Exposition Complex, Inc.
New Projects & Investment Opportunities in: 1. Trading and Processing facility for High value crops and marine products (with Tourism and R&D component) 2. Farm Mechanization 3. Renewable energy
ISO 9001 Certified
1. Trading and Processing facility for High value crops and marine products (with Tourism and R&D component)
DAVAO FOOD EXCHANGE TERMINAL Status: Pre-development activities
ISO 9001 Certified
National Development Company
ISO 9001 Certified
Project Concept
To develop the 25-hectare NDC-owned property
located in Toril, Davao City into an economic zone
for the establishment of a food exchange terminal.
National Development Company
ISO 9001 Certified
1. Food Exchange Terminal
Trading Post
Food Processing Centers
Cold Storage Facilities
2. Technology/Business Incubation Center
Research and development facilities
Advisory services on business/financial planning
Office spaces
3. Tourism
Tourist attractions with concept similar to some of the world’s best fresh markets in Japan, Italy and France
Edges are lined with cafes and souvenir shops
Project Concept
1. Farm Mechanization (as a component of climate smart agriculture)
Status: Proposal
ISO 9001 Certified
National Development Company
ISO 9001 Certified
NDC Mandate vs Current Needs
Needs / Issues • Being able to transform agriculture to
feed a growing population in the face
of a changing climate without hindering
the natural resource base
NDC Investment Guidelines
• Developmental / Pioneering
• High Impact / Strategic
National Development Company
ISO 9001 Certified
Opportunities : Climate Smart Agriculture
Studies show that local conditions play a major role in the decision whether to mechanize or
not.
The decision to mechanize should therefore be
left to market forces.
Farm Mechanization Rate:
Japan = 7.0 hp/ha
South Korea = 4.0 hp/ha
Vietnam and Thailand = 0.7 hp/ha
Philippines = 0.5 hp/ha
(Production losses at 16% of total rice
production due to inefficient farming methods)
Target Project/Concept: More productive and resilient agriculture through mechanization and better management of natural resources through practices, such as conservation agriculture, integrated pest management, agroforestry and sustainable diets.
3. Renewable Energy
Status: Pre-development activities
ISO 9001 Certified
National Development Company
ISO 9001 Certified Project 1:
Produce Electric power through Biomass gasification
Produce high density short rotation biomass energy crops
Target cost of production equal or less than the price of coal
National Development Company
ISO 9001 Certified Project 2:
Gasification of Rice Hull
for Steam Generation
GASIFICATION CHAMBER
STEAM RECEIVER & DRYER
FLUE GAS WASHER
The biomass is partially heated to extract gas available and combusted thru combustion chamber.
The generated steam are dried thru steam dryer before releasing to the process.
The generated flying ash after the gasification are collected thru flue gas washer before the flue gas exhausting to atmosphere. The collected ash are use in soil conditioner and medium of fertilizer given to the farmer for free.
National Development Company
ISO 9001 Certified
Investment Procedure
1. Project Proposal
•Exploratory meetings
/ activities
• Investor submits:
Formal letter of
intent
Project proposal /
brief
1 week
2. Review and
Validation
•NDC Checks: Project details Cost / Revenue
assumptions Project viability
(tech, social, environmental)
Proponent’s track record
• NDC ManCom Approval (Detailed Project Evaluation)
1-2 weeks
National Development Company
ISO 9001 Certified
Investment Procedure
3. Feasibility Study
• Investor drafts and
submits
comprehensive FS /
or Business Plan
1 week – 3 months
4. Due Diligence and
Recommendation
•NDC conducts due diligence on contents of FS
•NDC participation and project’s terms and conditions will be reviewed
•Approval from ManCom and Board of Directors
4 - 6 weeks
National Development Company
ISO 9001 Certified
Investment Procedure
5. Final Terms and
Conditions
•NDC and Investor/s
agree on final terms
and conditions
•NDC Board approval
on the final terms
and conditions and
release of funds
2-4 weeks
6. Signing, Release of
Funds, Start Project
For Inquiries and Project Proposals, please contact:
ROMMEL R. SERRANO
Corporate Executive Officer II
Operations and Special Projects Group
National Development Company
8/F, NDC Bldg., 116 Tordesillas St.
Salcedo Village, Makati City
Email: [email protected]
Tel No.: (02) 8404838 loc 256
Fax No.: (02) 8404937