1. INVESTMENT OPPORTUNITIES
SALE OF CONCESSION RIGHTS - PORT IRENE
INVESTMENT OPPORTUNITIES

2. THE CAGAYAN SPECIAL ECONOMIC AND FREEPORT ZONE

3. Cagayan Special Economic and FreePort Zone
The FreePort operates as a separate customs territory similar to Hong Kong, Singapore, Lubuan in Malaysia and Hamburg in Germany.
Envisioned to be a major transhipment point for trade in the Asia-Pacific rim.

4. Location
Located at the northeastern tip of the Philippines surrounded by the waters of Balintang Channel, China Sea and the Pacific Ocean.
Covers the entire Municipality of Sta. Ana and the Islands of Fuga, Barit, Mabbag in the Municipality of Aparri, Cagayan.
With approximately 54, hectares of urban, suburban and agro-industrial lands for prime development.

5. International Transhipment Hub
Located along the major shipping lanes between the U.S West Coast and China, and is readily accessible to international ports in Japan, Taiwan and Hong Kong.

7. Ancillary activities with linkages to transhipment include:
Warehousing
Seacraft and aircraft repair
Cold storage
Banking and finance
Drying
Wholesale and retailing
Packaging
Operation of Utilities (i.e., power, water and sewerage, telecommunications, and gas
Trucking and other land transport services
Airport and other airport services

8. Investment Highlights
Investment and Business Opportunities
Energy Generation (Fossil Fuel and Renewable)
Steel Mill and Metals Processing
Industrial Park Development
Mining and Petrochemicals
Manufacturing
IT Development
Business Process Outsourcing

9. Investment Highlights
Medical Tourism
Hotel, Resort and Eco-Tourism Development
Banana, Pineapple and Sugarcane Plantation
Fertilizer Production
Food Processing
High-Value Crop Production, Processing and Packaging
Fish Production and Agriculture
Pulp and Paper Production

10. Investment Highlights
Incentives for CEZA Registered Enterprises
4-6 years income tax holiday
Special tax rate of 5% of gross income in lieu of all local and national taxes
Tax credits for foreign corporations
Tax and duty free importation of articles, raw materials, capital goods, equipment and consumer items
Permanent resident status for foreign investors and immediate family (must maintain not less than US$150, 000 capital)

11. Other applicable incentives under Omnibus Investment Code of 1987:
Multiple entry visa, valid for a period of two years
Tax treatment of merchandise in the Zone
Tax credits
Additional deduction for labour expense
Exemption from local taxes and licenses
Exemption from Contractor’s Tax
Exemption from Wharfage Dues and any Export Tax, Duty, Impost and Fee on non-traditional export products

12. THE CAGAYAN ECONOMIC ZONE AUTHORITY

13. Cagayan Economic Zone Authority (CEZA)
is a government owned and controlled corporation that was created by virtue of Republic Act 7922, otherwise known as the “Cagayan Special Economic Zone Act of 1995″, which was authored by Senator Juan Ponce Enrile (a native of Cagayan Province) and approved by President Fidel V. Ramos.
It has been tasked to manage and supervise the development of the Cagayan Special Economic Zone and Freeport (CSEZFP).

14. The CEO
Administrator Sec. Raul L. Lambino

15. Board of Directors Chairman: Sec. Ramon M. Lopez
Vice-Chairman/Acting Chairman: Sec. Raul L. Lambino
Member / Acting Vice-Chairman: Katrina C. Ponce-Enrile
Members: Antonio Generoso Buendia, Jr.
Milton A. Alingod
Geary L. Barias
Arturo P. Bautista
Darwin A. Tobias
Shalimar D. Tumaru
Alfonso V. Lim

16. Board of Directors Members: Allan U. Ty Jaime Roque Escaño
Jose V. Hipolito
Vicente Cuevas
Jose D. Balagan
Ernesto J. Fueconcillo
Corporate Board Secretary: Atty. Victoria M. Perez
Legal Basis: (CEZA) Republic Act No. 7922, otherwise known as “The Cagayan Economic Zone Act of 1995″

17. PORT IRENE

18. History of Port Irene
Port Irene was constructed in 1972, during the time of former Pres. Ferdinand E. Marcos. Then Port Casambalangan was repaired and developed by the late Pres. Marcos, but he also changed its name to Port Irene.
The construction of Port Irene was made to cater the exportation of logs and lumber to countries like Japan, China and Korea, and which was still allowed at the time. Port Irene was also used for the exportation of molasses.
The Port Authority before was still PPA, when CEZA came in 1995, PPA eventually transferred control in Starting that time, CEZA, through The Port Operations Division, has managed Port Irene, as well as the Port San Vicente.

19. SALE OF CONCESSION RIGHTS – PORT IRENE
100% ownership of company with exclusive concession rights
Acquisition of 100% of APITI via its sole shareholder, August Star Holdings, Inc.

20. Port Irene General Site Plan

21. Exclusive Concession Rights (25 years)
Entered into on December 22, 1999
Approved by the Office of the President on May 23, 2000
Coverage
APITI has sole and exclusive responsibility to finance, construct, rehabilitate, manage, operate, and transfer to CEZA the Development Facility of Port Irene under a Build-Operate-Transfer (BOT) arrangement.

22. Rights Granted to APITI
Exclusive Concession Period of 25 years, renewable for another 25 years
Right to assign or encumber its interest in the facility without written approval of CEZA
Right to lease any portion of the facility without written approval of CEZA
Right to charge fees, rent and charges constituting Port revenues at rates determined by APITI

23. Obligations
APITI
Undertake the Port Development Facility in Port Irene, specifically:
a. Phase 1 : immediate port upgrading
b. Phase 2 : construction of additional berth up to 300,000 TEUs
c. Phase 3 : construction of another additional berth for 200,000 TEUs
Award contracts for the Project, with or without tender;
Enter into Tenancy Agreements;
Acquire additional land whenever necessary for the construction of container yard, road network and other facilities, which at the end of Concession Period, shall remain in APITI’s possession;

24. Obligations
CEZA
Deliver to APITI a condition conducive for the commencement of Work (i.e. clean possession of the existing pier, reclaimed area, and other CEZA properties in Port Irene, free and clear of all tenants, squatters, and improvements and/or waste materials).
Assist APITI to acquire additional land for the construction of container yard, road network and other facilities, through sale or lease, including rights-of-way to enable APITI execute the Work.

25. Assist APITI in acquiring all necessary documents from respective Governmental Agencies (i.e. permits, licenses, approvals for building and construction works, environmental compliance certificate and other authorizations)
Assist APITI in obtaining visas and work permits, and tax exemptions upon completion of the necessary requirements.
Maintain all facilities, equipment, and infrastructure in good condition in accordance with standards set for the conduct of commercial navigation in Port Irene.

26. Assist APITI in obtaining Site Utilities (e.g. power and water)
Make available the Port Zone and all existing rights-of-way, rights of access to and possession of, and right to build on agreed boundaries.
Commit to obtain funds for and to commence construction of a breakwater and dredging of a path to create a navigational channel to assure safe passage of Post-Panamax vessels, within one year from the effectivity of the Agreement, and to complete construction of the breakwater and navigational channel prior to In-Service Date.

27. Indicative Price
Indicative Price of $15 M

28. 850 Meter Breakwater - Completion
Seaport Development: Port Irene
850 Meter Breakwater - Completion
Scheduled for Oct. 2014
Port Irene: Present
400-meter berth
10-12 hectares container yard and cargo storage
Seawall
Cold storage
Cargo handling equipment
Equipment & machinery repair/workshop building
Port administration building
Medical & first aid clinic
Helicopter landing pad & associated facilities
Radio & telecommunication facilities
Security fence
Power substation & stand-by power generation facilities;
Provision for ship bunkering
Deepwell water supply system & treatment facility
Drainage and wastewater collection and disposal system
Status:
Phase I of the Port Irene Breakwater Project
(250 meters) is completed.
Phase II-A (construction of additional 250
meters) is completed.
. Phase II-B (construction of additional 200
meters) is completed.
.Phase III (construction of additional 150
Meters) is on-going.

29. ATTACHMENTS
Concession Agreement (CEZA & APITI)

30. Approval of the Concession Agreement

31. Signing Page

32. ATTACHMENTS ASIA PACIFIC INTERNATIONAL TERMINALS, INC.
(CERT. OF REGISTRATION & GIS)

33. Certificate of Registration

34. GENERAL INFORMATION SHEET (2016)

35. GENERAL INFORMATION SHEET (2016)