Creation and Nature of TIDCORP
- Establishment of the Trade and Investment Development Corporation of the Philippines (TIDCORP) as a body corporate.
- TIDCORP has permanent corporate existence with its principal office in Metro Manila.
- It is a wholly owned government corporation, subject to laws applicable to government-owned and -controlled corporations unless inconsistent with the decree.
Primary Purposes of TIDCORP
- Guarantee foreign loans to Philippine entities with prior Monetary Board concurrence.
- Guarantee Philippine banking and financial institutions against losses from loans/credit accommodations to exporters, producers, or contractors with approved foreign contracts.
- Provide insurance cover, credits, and services to facilitate Philippine exports.
- Guarantee or insure investments of Philippine entities.
Functions of TIDCORP
- Promote and facilitate foreign loan entry focusing on export-oriented and government-encouraged industries.
- Guarantee loans from Philippine banks to qualified exporters and contractors.
- Facilitate implementation of approved foreign service contracts by providing counter-guarantees to banks issuing standby Letters of Credit or Letters of Guarantee.
- Assist domestic entities in coordinating development and expansion plans.
- Provide technical assistance for preparation, financing, and execution of development or expansion programs.
- Undertake actions consistent with its primary purposes.
Borrowing and Other Powers
- Authority to borrow funds locally or abroad with appropriate approvals.
- Ability to buy and sell securities issued or guaranteed by the Corporation.
- Rights to underwrite securities for domestic entities consistent with its purpose.
- Invest surplus funds in government securities or highly rated debt instruments.
- Exercise additional powers and establish rules necessary to fulfill its functions.
Board of Directors Composition and Powers
- Board consists of nine members, including:
- Secretary of Finance (Chairman) or designated Undersecretary.
- President of TIDCORP (Vice-Chairman).
- Secretary of Trade and Industry or designated Undersecretary.
- Governor of Bangko Sentral ng Pilipinas or designated Deputy-Governor.
- Director-General of National Economic and Development Authority or Deputy.
- Chairman of the Philippine Overseas Construction Board or Vice-Chairman.
- Three private sector representatives (at least one from the export community) elected by ex officio board members.
- Private sector representatives serve up to two consecutive years and must be reputable.
Organizational Structure and Personnel Management
- Board to establish organizational structure and staff positions.
- President recommends appointments and compensation, Board has exclusive authority over personnel matters.
- Positions subject to a compensation and classification system comparable to the private sector, with periodic review.
- TIDCORP is exempt from certain existing laws on compensation but should aim to conform to principles of Republic Act No. 6758.
Transition and Continuity Provisions
- Existing personnel of the predecessor corporation continue duties for up to one year during reorganization.
- Board may provide separation benefits to displaced personnel.
- Retiring or separated personnel entitled to incentives and benefits in addition to those mandated by law.
- All assets, liabilities, rights, obligations, and functions of the predecessor corporation transfer to TIDCORP upon effectivity.
Severability Clause
- Invalidity of any provision does not affect the validity of the remaining provisions.
Repealing Clause
- All inconsistent laws, decrees, executive orders, and regulations are repealed or amended accordingly.
Effectivity Clause
- The Act takes effect 15 days after publication in the Official Gazette or two newspapers of general circulation, whichever is earlier.