PERFORMANCE AGREEMENT

This Performance Agreement has been executed pursuantPERFoRMANcE EvALUAnoN SYSTEM FoR THE GOCC Secron (GCG2013-021 between the -

GOVERNANCE COMMISSION FOR GOCGs (GCG)

-and-

PHILIPPINE FISHERIES DEVELOPMENT AUTHORIW (PFDA)

WITNESSETH: THAT -

The Parties agree to the following terms:

1. Period. - This Agreement shall be effective for a period of two (2)

calendar years beginning from the execution of this agreement and

ending on 31 December 2014.

2. Charter Statement and OPIF Logframe. - PFDA's Charter Statementand OPIF Logframe for the Period specified in Section t hereof, shallbe as follows:

Mission: (i) To establish, operate and maintain strategic and globally

competitive fishery post-harvest infrastructures andfacilities, as well as provide market information and relatedservices;

(ii) To conduct operations prudently, providing viabilityfinancial growth to assure continuous improvement offacilities and delivery of service:

(iii) To satisfy stakeholders' business needs with timely andquality service; and

(iv) To work as a team with skill and dedication in anenvironment that ensures groMh opportunities.

A dynamic and viable government corporation that providesservices and contributes to the country's food security bysupporting an environmentally sustainable and competitivefishing industry through technologically advanced poslharvest facilities and infrastructure.

6 /t^'U ,//

to theMC No.

andport

Vision:

PERFoRMANcE AGREEMENT l2of 5GCG and PFDA

PFDA Logframe

3. Measurement of Pertormance. - Based on PFDA's lnterim

Performance Scorecard, attached hereto as Annex A, the evaluation

of PFDA's performance tor 2013-2014 shall be based on the following

Measures/Performance lndicators and Annual Targets, to wit:

SOCIETAL GOAL

lnclusive GroMh and Poverty Reduction

SECTORALGOAL 4

Access to social goodsand services

SECTORALGOAL 3

GroMh in agriculture andtishery sector

SECTORALGOAL 2

Agriculture sectorresilience to climate

chanqe

SECTORALGOAL I

Food Security

INTERMEDIATE OUTCOME 2

Pos!harvest losses reducedINTERMEDIATE OUTCOME I

Quality, adequacy and accessibility of infrastructurefacilities and services enhanced

ORGANIZATIONAL OUTCOME 2

Handling and distribution of fish and fisheryproducts improved

ORGANIZATIONAL OUTCOME I

Fish ports and other post-harvest facilitiesand services enhanced

MFO 2

Fishery Post-harvestFacilities Construction

Services

MFO 1

Fish Port and OtherPost-Harvest Facilities

Operation Services

MFO l: FishPort and OtherPost-Harvest

FacilitiesOperationServices

Performance MeasurestWeight Baseline Annual Targets

2013 2014 2010 2011 2012 2013 2014

Quantity: No. of clients/port-users served

1ovo 10./. 4,902 5,021 5,963 6,500 7,000

Quality: Utilization of porlfacilities/assets

Landing quays/piersMarket HallCold Storagelce Making PlantProcessing AreasCommercial/lndustrial Areas

35%

6%6%6Vo

8%4o/o

5%

35%

60/o

60/o

6o/o

80/o

4o/o

50k

58%80%77voOZ-/o

50vo42lo

50%82vo45o/o

66%s60/o

4SYo

7gvo8'tvo68Vo74o/o

60%490k

7gyo8'tvo

52%*88Yo60%490k

78%83%

59%*89%60%49%

Financial: Net income 15o/o 15% 4.23 3.65 4.79 6.65

Subtotal of Weighb: 60"/" 60%

L ,4fr,t

PERFoRMANcE AGREEMENT l3of 5GCG and PFDA

MFO 2:Fishery Post-

harvestFacilities

ConstructionServices

Ouantity 1: No. of constructionprojectsa) Startedb) Completed

15o/o

SYo'tovo

't5vo

5Vo1ovo

8'13

34

44

46 5

Quantity 2: No. of projectdevelopment studies conducleda) lnfra-assessment surveysb) Feasibilitv Studv

'livo

5o/o

'toYo

15o/o

SYo

10%28

3864

3612

5018

7021

Subtotal ot Weights: 30v" 30%

GeneralAdministration

and SupportServices(GASS)

Timeliness l: Response timeto project requesuproposalsa) Letters, comments, elc.b) Preliminarvaooraisal

4o/o

2vo2Vo

4o/o

2o/o

2o/o

7 days20 days

7 days20 days

7 days20 days

5 days15 days

5 days'15 days

Timeliness 2: DetailedEngineering studies completedon schedule*a) Less than P20M project costb) More than P20M Droiect cost

6Yo

3o/o

3o/o

6vo

3vo3o/o

105 days145 days

'105 days145 days

105 days145 days

90 days120 days

90 days120 days

Subtotal of weigh6: 10% 'too/o

100% 100.h' See formulas and data provder on Annex I" Decrease in taqets in view of the on€oing ehabilllalion of the facilites'_ Measured in no. ofdavs aflerfund bansfer to PFDA

It is understood that the PFDA must achieve a weiqhted-averaqe of atleast 90% to be eligible to grant any Performance-Based Bonus.

4. Strategic lnitiatives. - PFDA hereby commits to undertake thefollowing key programs and/or projects identified as having a significantimpact on its Performance Scorecard (PES Form 2), attached heretoas A/rnex B, to wit:

(a) Strategic lnitiative 1 - Rehabilitation/Upgrading of the NavotasFish Port Complex; and

(b) Strategic lnitiative 2 - Conversion of the Camaligan Fish Port(CFP) into a Satellite Port of a NewRegional Fish Port Complex in BicolRegion.

The Commitment herein includes obtaining all necessary approvals, ifapplicable, such as those for Major Development Projects under GCGMC No. 2013-03. PFDA shall include updates on the foregoingStrategic lnitiatives in its submission of quarterly monitoring reports(PES Form 3) to the GCG.

Quarterly Submission of Performance Monitoring. - PFDA shallsubmit a quarterly monitoring report to the GCG within thirty (30)

calendar days from the close of each quarter using the monitoringreport attached hereto as Annex C.

Good Govemance Conditions. - ln addition to the covered portionsof the Performance Scorecard, PFDA must fully comply with the GoodGovernance Conditions enumerated under GCG MC No. 2013-02,namely:

5.

o.

6 /r L//

PERFoRMANcE AGREEMENT I4of 5GCG and PFDA

6.1 . Conditions common to National Govemment Agencies andGOCCs:

(a) Transparency Seal,

(b) Ph|IGEPS Posting;

(c) Cash Advance Liquidation;

(d) Citizen's Charter or its equivalent; and

(e) Compliance with the submission and review requirementscovering Statement of Assets, Liabilities and Net worth(SALN);1

6.2. Conditions specfrc to GOCCs covered by R.A. No. 10149:

(a) Satisfaction of all statutory liabilities, including the paymentof all taxes due to the Government, and declaration andpayment of all dividends to the State as of the end of theapplicable calendar year, whenever applicable. Liabilitiesthat are still under dispute and there has been no final andexecutory judgmenUdecision as of the date of the release ofthe PBB by the GOCC shall be excluded for the purpose ofthis provision.

(b) Submission and execution of concrete and time-boundaction plans for addressing Notices of Disallowances andAudit Observation Memoranda from the Commission onAudit (COA), if any.

(c) Adoption ol a"Manual of Corporate Govemance" pursuant toSection 42 of the CoDE oF CoRPoMTE GovERNANcE FoR

cOCCs (GCG MG No. 2012-07) that is approved by GCGand uploaded on the GOCC's website.

(d) Compliance with posting on the GOCC's website theinformation enumerated under Section 43 of GCG MC No.2012-07.

(e) Adoption of a No GtFr PoLtcY approved by the GCG anduploaded on the GOCC's website pursuant to Section 29 ofGCG MC No. 2012-07.

7. PFDA hereby undertakes to have its Performance Scorecard rated byits customers and solicit feedback on how the same may be improved.PFDA shall determine the most effective method for accomplishing thesaid purpose. Such information shall be reported to GCG together withthe quarterly monitoring report. The rating shall not affect theperformance indicators/measures in PFDA's Performance Scorecard,and shall be used solely as a reference by GCG and PFDA duringPerformance Agreement Negotiations/Renegotiations.

llt^ il

I See CvrL Senvrce CoMMrssroN MEMoRANDUM CTRcuLAR No. 3, s. 2013.

p E R F o R M A N c E Ac R E.J"r":;J#;;

8. Nothing herein shall be construed as limiting the authority of GCG toinitiate renegotiations and/or revoke Performance Agreements inaccordance with existing laws, rules and regulations.

DONE, this 25 October 2073 in the City of Makati, Philippines.

GOVERNANCE COMMISSIONFOR GOCCS

BY AUTHoRITY OF THE COMMISSION:

PHILIPPINE FISHERIESDEVELOPMENT AUTHORIry

(Nnan

:= ! ? -

:= :0i s

E= ;t :s= a6 ;E- =.9 tr

l^, *,-/Md. ANGELA E.IGNACIO

fiommissioner

RATNIER B. BUTALIDCommissioner

(KR"UGeneral Manager

Member fr'

L. DOMINGOand Ex-offtcio Board Member

^,//ry'4,.(oaenro N. DEL RosARlo

DTI

CESAR L. VILLANUEVAChairman

MON JESU

RAFAEL"g-YABUTAg e rn a9,6r o ewn S e creta ry

Board Member

. PAJE-officio Board

Philippine Fisheries Development Authority (PFDA) lnterim Pefiormance Scorecard 201 3-201 1

Quantity Numb€. of clb.ndpq.t-u3ers served f Clients 100/,PFDA Opc.a0ng

Un|ts4.5O2 5,O21 5,963 6,5m 7,000

Oualiiy Utilization of pori facilitiG/ass€ts

Landing quaydpi€rsMarket HallCold Storagolce Making EantProc€6sing A.easCommsciaylndrstrial Area6

Ac'tual RatedCapadly

35%

6%6%6%8%4%5%

PFDA Oporatingllnlls

58%80%77./.62%50%420h

500/.a20/o

45v.66%s60/o450/0

7Ao/o

8',ty.6a%740to

60%490to

7g/o81./"

5?h'88%@%49%

780/"83%

590n'89%60%49%

FinanciaNet incrrne

Gross lncome -Total Expenses

150/.PFDA OpdatingUnits & Central

Ofiic€4.23 3.65 4.79 5.23 6.65

Subtdal of Webhts: 600/o

Quantrty 1 Number of construclion proiecls

1. Started2. Comdeted

E Pmiecb 3iartedicomploted

15%5%

10%

PFDA Conlr.lOfrco I

1334

44

46

55

Quantity 2 Number of proiet dwdopment sludi€s conduded1. lnfra-asseggment surveys2. Feasibility Study

f PrdEtsdov€lopmonl

studies corducled

15'/o5%

,to%

PFDA ContrelOflic€ 2A

386

4m12

5018

702',1

SuD,'oaal ot wolghts: 3010

nmdin€ss 1 Responso timo to projet requBuproposdsa) Lettors, cornmsrts, €tc.b) Prdiminarv aooraisal

AveragerGponse time

PFOA Ccnk lOflica

7 days20 days

7 days20 davs

7 days20 daYs

5 days15 davs

5 days15 davs

Timelin€ss 2 Detail€d Engin€oring studles complet€d onschedulo (moasued in no. ot days aftet tundtranslet to PFDA)a) L€ss than P20 M p.qect costb) More than P20 M oroiecl msl

Averageresponse time

60/6

3y.30/o

PFOA CcntrelOfiice 105 days

145 days'105 days145 days

'105 days145 days

90 days'120 days

90 da!€120 days

SuMonal of Wetghls: 107

For PFDA:

RAINIER B. BUTALIDCornmissioner, GCG

,,,,%z-y''6veaoo*cnuGen€ral Manager, PFDA

Performance Measures Baseline oala Targets

Descriptaan Formula Weight Data Provider 20'10 2011 2012 2013 20'14

MFO 1 | Fish Port and Othct Post-Harvest Facililies OFration Services

MFO 2 : Flshery Post-hatvest Faciliaies Construction Services

Gencral Administration and Support Servicos (GASS)

TOTAL OF WEIGHTST 100%

Annex BPES Form 2

PHILIPPINE FISHERIES DEVELOPMENT AUTHORITY

STRATEGIC INITIATIVES PROFILE

Srureorc lNrrATtvE 1

1. Name of Project

Contact Person/Project Team Head

3. Project Description

Rehabilitation/Upgrading of the Navotas Fish PortComplex

Mr. Eduardo M. Chu, General Manager

The project will rehabilitate and upgrade the agingfacilities and equipment existing inside the NavotasFish Port Complex (NFPC) in order to provide betterservice to its port users. At the same time, it willprovide the needed/additional GMP-SSOPcompliant fishery post-harvest infrastructure andfacilities for the etficient handling, distribution andmarketing, and preservation of fish and otheragricultural products in support of the food securityprogram of the National Government. Specifically,the project is aimed to establish an efficient fish portthat provides technologically advanced post-harvestfacilities infrastructures that will sustain businessoperation and become catalyst of growth for thefishing industry.

The PFDA will undertake the following activities:

A. Establishment of Cold Storage;B. Rehabilitation of West Breakwater;C. Upgrading of Pier 4 & 5 and Provisron of an

area for other Fishery and Agri-basedlndustries:

D. Upgrading of Port Facilities and Utilities:> Construction of New South Market Hall> Construction of New North Market Halls> Upgrading of Major Road Network

E. Upgrading and Strengthening of LandingQuay from South Market to Pier 1

F. lnstallation of Waste Water Treatment Facility

It is anticipated that the project will benefit the majorfish producers, fish dealers/brokers, fishbuyer/sellers and other port users/clients, fuel depotoperator, ice vendors operating inside and in thevicinity of NFPC including the general public.

The proposed project has a total estimated cost ofaboul P 2.70 Billion or US$ 61.30 Million and isproposed to be financed either by OverseasDevelopment Assistance (ODA) or local funds.

PFDA P ES Form 2 lzof 4Strategic lnitiatives

4. Milestones

ActivitiesTimeline(Target

Duration)Budget Funding

Source Status

1. Re-Endorsement of theProject in the agenda to theNEDA Board for confirmationof ICC-TB and ICC-CBApproval

3 weeks N/A

Re-evaluation ofthe action taken byPFDA to the NEDABoard directives bythe ICC CoreSecretariat is on-ooino.

2. NEDA Board Approval 10 wd N/A N/A

lf ODA Funding:

3. Pre-Procurement, Biddingand Pre-Bid Conference

90 cd N/A N/A

4. Evaluation of Bids 18 wd N/A N/A

5. Approval of Award of Contractby PFDA Board and lssuanceof Notice of Award

5wd N/A N/A

6. Submission of the followingdocs.:> Credit Line or Cash

Deposit> Performance Security

5wd N/A N/A

7. Preparation of commercialcontract

5wd N/A N/A

8. Approval/Signing of theCommercial Contract

5wd N/A N/A

9. Secure Full Powers from theOffice of the President in theloan negotiation/sig ning ofIndividual Loan Agreement(lLA) and Monetary BoardAooroval

10 wd N/A N/A

10. Endorsement of signedCommercial Contract to DOFto facilitate Drocessino of ILA

2wd N/A N/A

1 'l. Loan negotiation andapproval/signing of ILA

'10 wd N/A N/A

12. Secure DOJ Legal Opinion onthe ILA

5wd N/A N/A

'13. Request for FOA & MYOA,SARO/NCA from DBM

20 wd N/A N/A

14. Request processing of the 5%Down payment from DBM

15 wd N/A N/A

15. lssuance of Notice to Proceed 5wd N/A N/A

16. Project lmplementation:) Detailed Engineering

Design

> Construction

8 months

36 months

P3276M

P2.48

LocalFundODAFund

I

I

lf Local Funding :

STRATEGTc lNrrATrvE 2

1. Name of Project

2. Contact Person/Project Team Head

PFDA P ES Fotm 2l3of 4Strategic lnitiatives

Conversion of the Camaligan Fish Port (CFP) into aSatellite Port of a New Regional Fish Port Complexin Bicol Region

Mr. Eduardo M. Chu, General Manager

The Project was conceived as a result of the Post-Evaluation Study conducted for the CFP in 2008that was revalidated after 5 years. The studyrevealed that after 22 yeals of existence, theoriginal CFP had partially achieved its envisionedobjectives and its targeted effects and had

il.

ActivitiesTimeline(Target

Duration)Budget Funding

Source Status

3. Request from DBM forrealignment of Fund fromForeiqn Fund to Local Fund

20 wd N/A N/A

4. Request for release ofBudget (SARO/NCA) fromDBM

20 wd N/A N/A

5. Pre-Procurement, Eiddingand Pre-Bid Conference ofConsultancy Services for theProiect Eno'q Desion

90 cd N/A N/A

6. Evaluation of Bids 18 wd N/A N/A

7. Approval of Award ofContract by PFDA Boardand lssuance of Notice ofAward

5wd N/A N/A

8. lmplementation of theDetailed Engineering Design

8 mos. P83OM LocalFund

9. Pre-Procurement,Biddingand Pre-Bid Conference ofConsultancy Services for theProject lmplementation

90 cd N/A N/A

'10. Evaluation of Bids 18 wd N/A N/A

1 1 . Approval of Award ofContract by PFDA Boardand lssuance of Notice ofAward

5wd N/A N/A

12. lssuance of Notice toProceed

5cd N/A N/A

13. lmplementation of ProjectConstruction

36 mos. P2,1 BLocalFund

3. Project Description

PFDA P ES Fotm 2l4of 4Strategic lnitiatives

manifested little impact on the fishing industry of thelandlocked municipality of Camaligan and to thelocal economy as a whole. Also, port operationswere met by setbacks attributed to the peculiarlocation of the fish port (built about 23 kilometersupstream from the mouth of the Bicol river), highand unstable fuel and oil prices, depleting resourcesin the area and the like. The study further revealedthat the financial position of the port was projectedto be gloomy and would not improve given theabovementioned limitations and magnitude of portoperation. This, therefore, calls for the downsizingof the CFP from a regional fish port into a satelliteport of a new and viable regional fish port complexwhich is still to be identified in Region V.

4. Milestones

Activities TimelineBudget Funding

Source StatusTarqet Duration1. Conduct of Post-Evaluation

StudyJul 2013

Mid-Dec2013

Local Funds(DA/BFAR) Ongoing

2. Presentation of Study Resultsto Too Manaqement

Mid-Dec20't 3

End ofDec 2013

3. Presentation of Study Resultsto the PFDA Board for Approval

Jan 2014 End ofJan 2014

4. Preparation of Action Plan forDownsizlng of CFP into aSatellite Fish Port

Feb 2014 End ofFeb 2014

5. lmplementataon of Action Planfor the Conversion of CFP lntoa Satellite Fish Port

Mar 2014 End ofMat 2014

6. ldentification of New RegionalFish Port in the Bicol Regionbased on Assessment Studiesconducted for Reqion 5

Mat 2014 End ofMat 2014

7. Conduct of Feasibilty Study forthe New Reqional Fish Port

4months Local Funds(DA/BFAR)

8. Preparation ofMasterplan/DetailedEnqineerinq Desiqn

90-'120 days

9. Conduct of PublicBiddino/Awardino of contract

6 months

10. Construction of theRegional Fish Port

1-2 yea.s

To beincluded inthepreparationof budgetfot 2015

11. Pre-Operationalization of theNew Reqional Fish Port

1-2 months

12. Operatlon of the RegionalFish Port

Annex CPES Form 3

PHILIPPINE FISHERIES DEVELOPMENT AUTHORITY

MONITORING REPORT OF PERFORMANCE TARGETS

users servedQuality: Utilization of portfacilities/assets

Landing quays/piers

lvlarket Hall

Cold Storage

lce Making Plant

Processing Areas

Commercial/lnduslrial Areas

Financial: Net income

construction projectsa) Started

b) Completed

2: Numberdevelopment studies conducted

a) lnfra-assessmenl surveys

b) Feasibility Study

clients/port-

Subtotal of weights and raaings:

I Projectsdevelopment studies

conducted

150/o

5%

10%

AclualTargelAclual

x 100 x 0.05

x 100 x 0.'10

50

'18

28

3

x '100 x 0.10

Capacitv usedActual Rated

Capacity

6vo

6%

6vo

80k

4Yo

slo

4d@l x1ooxo.o6r arger

AdEl x1oox0.06I argel

4dE! xlooxo06I arger

-&tl xlooxoosr aQet

-,Ad!tl ,roorootr arcerAdual -"^^,,^^.x 100 x 0.05

7Ao/o

8',t%

68%

740/o

60%

49o/o

79o/o

83%

31vo

85vo

59%

460k

'tMo/o

77o/o

39%

7slo

52%

44o/o

756/o

AzYo

44o/o

89vo

60vo

470/o

91o/o

79o/o

420k

86%

5'l%

45yo

7gyo

81yo

520k

88vo

60%

49vo

7gvo

7gyo

68Vo

90%

60%

48vo

t Projects started/completed 4sEl x 1ooxo.o5

r arceIAclual ._ "^"._ ^ .^x 100 x 0.10

T

Description

MFO l: Fish Port and Other Post-h

Formura woisht iX'jl:'taruest Facititios Opention Seruices

2013RevisedFull YearTarget

3rd Quarter 4th Quarter

Target Actual Target Actual

: Clients 10% 5,963 2,442 3,169 1,687 2,684 6,500 1,376

35%

Gross lncome -Tolal FYnenses 150/o P4.79tV '1 .45M 44 64M 0.61 29.6tvt 5.23tvl 4.77M

60%

MFO 2 : Fishery Post-haruest Facilities Construction SeNices

150k

slo

10%

o

13 0

6

0

7

1

I,1

4

6

6

1

2 4 5 6

25

6

PFDA P ES Fotm. 3l2ot2Monitoring Repoft

project requesuproposals

a) Letters, comments, etc.

b) Preliminaryappraisal

Timeliness 2: DelailedEngineering sludies compleled onschedule (measured in no. of daysafter fund transfer to PFDA)

a) Less than P20 lV projecl cost

b) More than P20 M project cost

Subtotal of weights and ratings:

Subtotal of weights and ratings:

Average responsetime

AclualTargetAclual

x '100 x 0.02

x 100 x 0.02

Average responsetime

x 100 x 0.03

x 100 x 0.03

'105 days

145 days

Genefal Administration and Suppott Services (GASS)

5517 lru '18

5

15

l5

15

90

'120

90

120

73

0

0

120