Purpose, policy, and governing intent
- The decree declares that the continued expansion of the tourist industry creates an imperative need for additional hotels and related tourist facilities.
- The decree treats financing and promoting local tourist facilities as a matter of national policy for government financial institutions, including GSIS.
- The decree recognizes the Manila Hotel’s prime location and the inadequacy of the existing pre-war structure against accepted international standards.
- The decree directs a more practical and economical approach: partial or full demolition and construction of a new, internationally comparable hotel.
- The decree treats completion of the new Manila Hotel as a priority tied to a major international conference schedule in September, 1976.
- The decree assigns to GSIS flexibility to carry out the project under suitable legal arrangements, including with partnerships and subsidiaries (Section 2).
Issuing authority and legal foundation
- Ferdinand E. Marcos issues the decree by virtue of the powers vested in me by the Constitution and to assist GSIS in pursuing its assigned task (preamble).
- The decree empowers GSIS and/or its subsidiary structures to undertake financing-support functions, contracting, demolition, renovation, and construction (Sections 2–4).
- The decree governs land transfer and operational consolidation for the Manila Hotel premises through GSIS ownership (Whereas clauses and Section 5).
- The decree establishes the dissolution and liquidation mechanism for the existing Manila Hotel Company by valuing net assets and compensating minority stockholders (Section 1).
Dissolution of Manila Hotel Company; asset transfer
- The decree orders that the existing Manila Hotel Company is dissolved, liquidated, and abolished (Section 1).
- The net asset value of the shares is determined under generally accepted accounting and appraisal principles and procedures (Section 1).
- The decree requires that the land owned by the Manila Hotel Company be appraised at its fair market value (Section 1).
- The computed net asset value is the basis for compensating minority stockholders for their shares (Section 1).
- The decree authorizes the Manila Hotel Company and/or GSIS to hire private accounting and/or appraisal firms and to obtain certification on the value of the company’s assets, liabilities, and net worth (Section 1).
- If the liquid assets are insufficient to compensate minority stockholders, GSIS is authorized to pay the deficiency from its own funds (Section 1).
- The decree transfers and vests in GSIS the records, properties, equipment, assets, rights, and choses in action of the Manila Hotel Company as a return of GSIS investments (Section 1).
- The decree provides that GSIS is not liable for capital gains tax or any other taxes as a consequence of the liquidation of the Manila Hotel Company (Section 1).
- Any personnel of the Manila Hotel Company are entitled to a gratuity of one month’s pay for every year of service, capped at not exceeding one year’s pay if not otherwise entitled to retire under existing laws (Section 1).
- The decree allows the gratuity to be paid by the Manila Hotel Corporation or by GSIS, and if paid by GSIS, it must be booked as part of its investments on the land transferred (Section 1).
GSIS authority for new hotel development
- GSIS is authorized to initiate and pursue plans for the development, construction, and operation of a new Manila Hotel either singly or in partnership with any other entity, whether government or private (Section 2).
- For that purpose, GSIS may form a partially-or wholly-owned subsidiary corporation or corporations as necessary to achieve the objective (Section 2).
- GSIS, either directly or through a partially- or wholly-owned subsidiary, is authorized to cause the partial or full demolition of the present Manila Hotel building (Section 3).
- GSIS is authorized to renovate any portion of the old building it chooses to retain (Section 3).
- GSIS is authorized to construct a new building equipped with facilities and amenities necessary to make it comparable with the best hotels abroad (Section 3).
Contracting, procurement, and project execution powers
- GSIS is authorized to negotiate and contract for partial or full demolition and the removal or disposal of the demolished building (Section 4).
- GSIS is authorized to negotiate and contract for the construction of the new building or the renovation of any remaining portion (Section 4).
- GSIS is authorized to procure all materials, supplies, equipment, or machineries for construction and/or improvement of the Manila Hotel (Section 4).
- GSIS is authorized to contract for architects, engineers, or firms or persons necessary to achieve the decree’s objectives (Section 4).
Land cession to GSIS and title transfer
- Two parcels of land in the City of Manila covered by TCT No. 67398 are conveyed, transferred, and ceded to GSIS as additional contribution of the National Government to augment the actuarial solvency of the Retirement Insurance Fund administered by GSIS (Section 5).
- The parcels are described by their subdivision plan portions and are identified in Section 5 as:
- Parcel 2-B of the subdivision plan Psd-14000, containing an area of FIVE THOUSAND FIVE HUNDRED SEVENTY SQUARE METERS AND FIFTY SQUARE DECIMETERS (5,570,50) (Section 5).
- Parcel 2-C of the subdivision plan Psd-14000, containing an area of SIX THOUSAND NINETY-TWO SQUARE METERS AND NINETY DECIMETERS (6,092.90) (Section 5).
- The decree states that this cession is made in consideration of the financial and other supports GSIS will extend in the demolition of part or whole of the existing Manila Hotel building and in the construction, development, and operation of a new hotel meeting the highest international standards (Section 5).
- The decree directs that the Register of Deeds shall immediately transfer the title to GSIS for the specified parcels (Section 5).
Repeal, modification, and implementation command
- Section 6 repeals or modifies any provision of law, executive order, rules and regulations that is inconsistent with the decree.
- Section 7 directs that all concerned implement the decree.
- The decree provides no separate sunset or expiration date and establishes no phased timetable beyond the project authorization and operational directives in Sections 1–5.