Law Summary
Direction to Implement EVBO
- DOF, DOTC, DBP, LBP, and other agencies are ordered to implement the EVBO pursuant to the BLT Agreement.
- Implementation components include: a) Acquisition by government of all outstanding MRTC shares and/or rights in the MRT Line 3 Project through equity or asset purchase. b) Execution and submission of a Compromise Agreement to the Singapore Arbitration Committee. c) Settlement of MRTC’s local tax liabilities, which government must bear under the BLT Agreement. d) Termination of the BLT Agreement.
Decision on Mode of Purchase and Implementation
- DOF, DOTC, DBP, and LBP shall decide on the mode of EVBO (equity or asset purchase) and cost.
- DOF will proceed with the purchase and retirement of notes, shares, securities, or assets.
- Financial, legal, and technical advisors may be engaged by DOF for assistance, specifically regarding MRT3 Notes.
Compromise Agreement to Settle Arbitration
- DOTC and Office of the Solicitor General (OSG) to enter into a Compromise Agreement with MRTC.
- Agreement includes no admission of fault by the Philippines.
- Conditions must not prejudice government interests.
- Agreement to be submitted to Singapore Arbitration Committee to effect dismissal of the case.
Settlement of MRTC’s Local Tax Liabilities
- DOF, DOTC, OSG, and Department of Budget and Management (DBM) to recommend mechanisms for settling MRTC’s local taxes in compliance with law.
- Approval of the President required for tax settlement mechanism.
Termination of BLT Agreement
- DOF, DOTC, and OSG to review all BLT-related agreements.
- They will recommend termination based on legal and financial considerations.
Funding for EVBO
- DOF Secretary authorized to raise funds through domestic or foreign borrowings.
- Borrowings to fund the EVBO and its components as per Sections 1 and 2.
- Secretary can execute necessary documents and agreements related to borrowing.
Government Agency Coordination
- All concerned government agencies and instrumentalities must provide full support and cooperation for successful EVBO implementation.
Separability Clause
- If any provision is declared invalid or unconstitutional, unaffected provisions remain valid and in effect.
Repealing Clause
- Executive Order No. 855 (S.2010) and all inconsistent provisions are repealed, amended, or modified accordingly.
Effectivity Clause
- The Executive Order takes immediate effect upon issuance.