PROJECT PROFILE. Municipal Mayor Tupi, South Cotabato Tel. No. (083) Address:
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1 PROJECT PROFILE I. Title of the Project MT. MATUTUM FRUIT PARK II. Applicant/Contact Person Hon. REYNALDO S. TAMAYO, Jr. Municipal Mayor Tupi, South Cotabato Tel. No. (083) Address: ENGR. WARLITO R. LAURON MEEDO Manager Tupi, South Cotabato Mobile No. (0925) III. Type of Investors /_ / Institutional (i.e. banks, insurance, pension fund) / / Public-Private Partnership /_ / Individual Investors (i.e. angel investors, venture capitalist) IV. Executive Summary The proposed project is a tourist stop-over and destination that will showcase the fruit produces of Tupi, South Cotabato and the Pasalubong items of the province. It will include a view deck overlooking nearby Mt. Matutum. The arcade will include restaurants to complete the amenities of a tourist stop-over. A conference room for rent will be provided to host various meetings, seminars, and conferences. The fruit park can accommodate the 103 fruit vendors which are currently illegally occupying the road right of way of the National highway. The development cost of the project is Php 51,961, with a projected income of Php 1,975, for 5 years, with rental assumption of Php 1, per month per stall plus the Comfort Room, Restaurant, view deck and the conference room with 8% rate of increase in income and 5% rate of increase in expense. The fruit park shall be owned and operated by the municipality and shall serve as one of the anchor projects of the LGU given the high socio-economic returns from its operation. V. Project Description Two (2) hectares of land will be provided by the LGU. The project site is parallel to the National Highway, overlooking the panoramic view of Mt. Matutum in the east and the Quezon Range in the west, where Mt. Parker is located. The cost of construction will be the counterpart of the private partner. The project will sell locally produced fruits and delicacies made from the area of SOCCSKSARGEN with Mt. Matutum and the Roxas mountain range as backdrop. The 1
2 potential concessionaires are the 103 fruit vendors who are illegally occupying the road right of way of the National Highway. The view deck, restaurant, conference hall and the comfort rooms are to be operated by the private partner who will invest for the establishment of fruit park. In addition, indirect beneficiaries will be the farmers or fruit growers in Tupi who will supply the fruits to be sold in the fruit park. As of year 2011, Tupi produces annually 32,000 MT of papaya, 1,500MT of lakatan bananas, 1,200MT of latundan and bongulan bananas, 6,000MT of cardava bananas, 121,000MT of pineapple (mainly grown by Dole Philippines), 1,000MT of durian, 2,800MT of guava-apple, 290MT of guyabano, 360MT of jackfruit, and 81MT of passion fruit and 63MT of rambutan. The first phase will be the site development for the establishment of stalls for fruit vendors, with some areas for dining and parking. The bulk of the design of the Provincial government will be part of Phase2 which will involve the construction of administrative building-cum restaurant complex with function rooms, and view decks. a. Development Steps to be considered to operationalize the process b.1 Meeting with LGU b.2 ID of area to be developed b.3 Project Concept devt and promotion b.4 Biz matching with potential investors b.5 Drafting and finalizing of MOA/JV b.6 Profiling of vendors b.7 Preparation of bldg plan and program of works b. 8 Processing of documentary requirements b.9 Construction of building/structures b.10 Start of operation b.11 Trainings and marketing events b.12 Promotional activities b. Stakeholders LGU, Investor, Community c. Expected Barriers/Problems Possible resistance on the rental cost of stall from the fruit vendors VI. Market Aspect The Population of South Cotabato including GSC is currently at 767, 254 based on the May 2012 statistics. Approximating that 20% of this population will ply the GSC- Koronadal road and purchase at least Php 200 in one year, estimated sales from local residents is at Php 34, per month (there are 75 stall owners in the proposed project). Currently there are 9,658 establishments in the area as customer for the fresh fruits and the conference hall. Another market are travellers passing the National Highway through the Municipality of Tupi. This highway links the different towns and municipalities of South Cotabato 2
3 to other provinces and cities such as Cotabato City to the north, Davao del Sur and Davao City to the southeast, Sarangani Province and General Santos City to the south. VII. Project Cost/ Budget VIII. Project Output IX. Project Outcome Expected Investment : Php 51, 961, (see table below) A fully developed tourist facility at Mt. Matutum Fruit Park fruit vendors who are part of the informal sector to have a safe area to display and sell their products, allowing the LGU to properly regulate their operations. - Local farmers or fruit growers who supply the fruits to be sold in the fruit park. - Local food and fruit processors who can also have the fruit park stalls as outlets for their products. - Local residents and visitors who will have the opportunity to buy and taste the fresh fruits produced by the municipality. - Added revenues in the form of taxes and other fees to be paid by the legitimate businesses operating in the facility. X. Photos 3
4 4
5 PROJECT COST/BUDGET: ITEM OF WORK ESTIMATED COST General Requirements 100, Earth Works 4, 018, Reinforce Concrete Works (Class A) 13, 879, Masonry Works 6, 461, Steel Works 7, 718, Roof Covering 2, 974, Carpentry Works 2, 018, Installation of Doors and Windows 1, 221, Painting Works 1, 912, Tile Works 7, 842, Plumbing Works 1, 274, Septic Tank and Catch Basin 478, Electrical Works (dis. Line and Facilities) 2, 062, TOTAL PROJECT COST Php 51, 961, PROJECTED INCOME STATEMENT (4 scenarios of rental rates) ANNUAL: Rent per month Php Php Php Php 1, Income: stall rentals 405, , , , cr rentals 36, , , , viewing deck 360, , , , restaurant concession 144, , , , conference room rental 1,200, ,200, ,200, ,200, ,145, ,307, ,388, ,550, less: Operating Expenses Salaries 710, , , , Benefits 72, , , , Utilities 300, , , , Supplies 12, , , , maintenance 120, , , , depreciation 800, , , , total expenses 2,014, ,228, ,228, ,228, NET INCOME 130, ,078, ,159, ,321, CASH BASIS INCOME 930, ,878, ,959, ,121, PROJECTED INCOME STATEMENT (5 YEARS) using P1000 rental for stalls YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 5
6 Income: stall rentals 810, , , ,020, ,101, CR rentals 36, , , , , viewing deck 360, , , , , resto concessionaire 144, , , , , conference room rental 1,200, ,296, ,399, ,511, ,632, ,550, ,754, ,974, ,212, ,469, less: Operating Expenses Salaries 710, , , , , Benefits 86, , , , , Utilities 300, , , , , Supplies 12, , , , , Maintenance 120, , , , , Depreciation 800, , , , , Total Expenses 1,228, ,290, ,354, ,422, ,493, NET INCOME 1,321, ,463, ,619, ,789, ,975, CASH BASIS INCOME 2,121, ,263, ,419, ,589, ,775, Rate of increase in income 8% Rate of increase in expense 5% RETURN OF INVESTMENT Net Income/ P 800 per stall 1,159,200/ 20,000,000 = P1, 000 per stall P1,321,200/20,000,000 = 6.7% Payback P 800 per stall 20,000,000/ 1,959,200 = P1, 000 per stall 20,000,000/ 2,121,200 = 9.4 yrs 6
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