Section 7Sec./Art. 7

Conditions of Financial Assistance.- The following criteria and guidelines shall be applied by the LCIB and others in determining eligibility of proposed enterprise:

a. Labor generation - It must generate new employment opportunities within the proposing city and/or municipality, with preference to labor intensive projects.

b. Market-oriented - The products must have identified reliable markets, within and/or outside the province, which have growth potential to ensure viability of the project in the long term.

c. Foreign exchange contribution - The enterprise must desirably contribute towards the generation of, or savings in, foreign exchange through exportation and/or import substitution.

d. Use of local resources - The enterprise shall give priority to the utilization of raw material inputs indigenous to the municipality, city or province and its environs, with emphasis on agricultural projects and those with high forward and backward linkages.

e. Import of material inputs - Where indigenous raw materials are not readily available, the importation of inputs from other provinces or regions and/or other countries shall be allowed, without prejudice to availment of the Board of Investments and other government incentives. The enterprise shall be entitled to tax free importation of raw materials and machineries: Provided, That in the case of tax free raw material importations, the end products must be totally re-exported.

f. Agreements - The enterprise may enter into joint venture and/or management and marketing agreements with any company capable and willing to provide management, technical and marketing expertise as well as capital.

g. Municipal development plan - The economic activity in which the enterprise is engaged or will engage shall be among those included in the priority projects list adopted by the local development council.