May 12, 1999

MEMORANDUM FROM THE PRESIDENT

Your request for clearance to enter into contract with the Philrock, Incorporated for the restoration of the Maramag-Kibawe-Kabacan Road (Pinamaloy-Damulog Section) in the Province of Bukidnon with a total project cost of TWO HUNDRED EIGHTY-SEVEN MILLION AND FOUR HUNDRED NINETY-NINE THOUSAND, SIX HUNDRED SIXTY-EIGHT PESOS AND FIFTY-FOUR CENTAVOS (P287,499,668.54) under the IBRD-assisted Highway Management Project (PHI Loan 3430), is hereby approved, subject to the following:

1. Any cost adjustments and changes in the implementation schedule of the project from what have been determined under the above contract shall secure prior approval of the Office of the President.

2. Any part of the contract may not be subcontracted without the prior approval of the Office of the President. In such cases, the covering contracts shall provide for the joint and several liability of all.

3. Performance security of Philrock for the project shall be in the form of a guarantee from any government-accredited banks, equivalent to 20 percent of the above total project cost.

4. Advance payments, if any, shall comply with the provisions of Section 88 of the

5. The contract shall enclose thereto a certification from the DPWH Secretary that it does not contain any provisions prejudicial to the interest of the Philippine Government.

In view thereof, you are also hereby instructed to revise and finalize the above contract accordingly to incorporate the aforementioned conditions.

For compliance.