national development company · 2013. 1. 23. · national development company iso 9001 certified...

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)


ISO 9001 Certified


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)


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)


ISO 9001 Certified


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.”


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)


ISO 9001 Certified


“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)


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)


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)


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)


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


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)


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)


ISO 9001 Certified

Charter Corporation

- Philippine International Trading Corp.

Asean Joint Venture Companies

Other Investments

RRS (July 2012)


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)


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


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.


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


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


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


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


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.


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


ISO 9001 Certified


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


ISO 9001 Certified


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


8/F, NDC Bldg., 116 Tordesillas St.

Salcedo Village, Makati City

Email: [email protected]

Tel No.: (02) 8404838 loc 256

Fax No.: (02) 8404937

national development company · 2013. 1. 23. · national development company iso 9001 certified...

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