Administrative Order No. 20 Series of 2022 Guidelines in the Valuation of Agricultural and Fisheries Mechanization and Infrastructure Projects

Republic of the Philippines OFFICE OF THE SECRETARY Elliptical Road, Diliman 1100 Quezon City ADMINISTRATIVE ORDER NO. 20Series of 2022 SUBJECT: GUIDELINES IN THE VALUATION OF AGRICULTURAL AND FISHERIES MECHANIZATION AND INFRASTRUCTURE PROJECTS WHEREAS, the Department of Agriculture (DA) is implementing agricultural and fisheries (agri-fisheries) mechanization and infrastructure projects such as, but not limited to, Farm-to-Market Roads (FMRs), Small-Scale Irrigation Projects (SSIPs), Production, Postharvest and Processing Facilities, Machineries and Equipment, Agricultural Trading Centers, Fish Ports, among others. These interventions are vital in accomplishing the mandate of the agency to promote agricultural and fisheries development through the provision of public investments and support services; WHEREAS, in the process of planning and implementation of these projects, land, improvements and other structures and machineries or livelihood of landowners could be affected. Acquiring and securing the Right-of-Way (ROW) could result in potential loss of land ownership, crops, improvements or other structures and machineries, if there are any, of the farmers and fisherfolk that will be affected by the project. On the other hand, implemented projects are subjected to deterioration or breakdown due to several factors such as, but not limited to, operation, weather, and natural or human-induced hazards in the area. Thus, proper valuation/appraisal of properties (land, crops/trees, machinery, equipment, or facilities) is necessary in order to identify the cost of acquisition, damage, replacement or rehabilitation; WHEREAS, the Department of Finance (DOF) through Department Order No. 037-2018 has issued Philippine Valuation Standards (PVS), to guide valuation stakeholders in the country in the assessment and appraisal practices, and determination of appropriate value of public investments. WHEREAS, Section 24 of Republic Act No. 10601 (RA No. 10601), or the "Agricultural and Fisheries Mechanization (AFMech) Law", states that, pursuant to Section 46 of the Republic Act No. 8435 or the "Agriculture and Fisheries Modernization Act of 1997", the Bureau of Agricultural and Fisheries Engineering (BAFE) is hereby created as a regular bureau of the DA with the following functions and responsibilities:• Coordinate, oversee and monitor the national planning and implementation of agri-fisheries engineering, farm-to-market road and other agri-fisheries infrastructure projects; ■witfi empowerecC ancCprosperous farmers ancCfisf\erfo(k J4 food-secure and resilient 'Philippines • Prepare, evaluate, validate and recommend engineering plans, designs and technical specifications on agri-fisheries mechanization and infrastructure projects;• Oversee and provide technical assistance to the operations of the agricultural engineering divisions of the DA regional field units; and• Coordinate and integrate all agricultural and fisheries engineering activities of the DA bureaus, attached agencies and corporations; WHEREAS, Section 5 (c) of Republic Act No. 10915 (RA No. 10915), otherwise known as the Philippine Agricultural and Biosystems Engineering Act of 2016 prescribes that valuation or appraisal of agricultural and biosystems machineries and equipment, structures and facilities; and agricultural and biosystems engineering projects constitute the scope of practice of agricultural and biosystems engineering; WHEREAS, pursuant to the Joint Resolution No. 1, Series of 2022 of the Professional Regulatory Board of Agricultural and Biosystems Engineering and Professional Regulatory Board of Real Estate Service on the Relation and Complementation on the Practice of Professions between the Agricultural and Biosystems Engineers and Real Estate Appraisers and Real Estate Assessors on Valuation and Appraisal pursuant to RA No. 10915, and RA No. 9646 (The Real Estate Service Act of the Philippines), the Real Estate Appraiser estimates and provides expert opinion on real estate values which services shall be finally rendered by the preparation of the narrative appraisal report while the Agricultural and Biosystems Engineers for agricultural and biosystems machineries and equipment, structures and facilities and agricultural and biosystems engineering projects which are located or part of farm/agricultural land as real estate. WHEREAS, the valuation/appraisal report prepared by Agricultural and Biosystems Engineer shall serve as reference in the preparation of report by the Real Estate Appraiser if such real estate being valued have agricultural and biosystems machineries and equipment, structures and facilities and agricultural and biosystems engineering projects attached to it; NOW THEREFORE, in view of the foregoing, this AO is hereby issued to provide the general guidelines on the valuation of agri-fisheries mechanization and infrastructure projects, as follows: SECTION I. OBJECTIVESThis Administrative Order generally aims to provide guidelines to the IOs on the valuation of agri-fisheries machinery, equipment, facilities, and infrastructure projects of the DA. Specifically, it aims to; A food-secure and resident 'Philippines witli einpirwerecCandprosperous farmers ancCfisfierfoCfr 1. Provide list of valuation approaches that corresponds to the types of agri-fisheries machinery, equipment, facilities, and infrastructure projects being implemented by the DA;2. Serve as reference of ABEs in the determination of appropriate value of agri­fisheries machinery, equipment, facilities, and infrastructure projects for various activities of the DA requiring detailed estimates;3. Identify procedures, documentary requirements, and the corresponding implementing offices/units for the valuation activities of the DA;4. Serve as basis in the continuing enhancement of capabilities of ABEs relative to valuation; This guidelines shall cover the valuation activities of the DA, including all the Regional Field Offices, Bureaus, Attached Agencies and Corporations. Among the activities requiring appraisal activities include, but not limited to the following:1. Estimate of structures, crops, trees, and other improvements in the land, as part of the Right-of-Way (ROW) to be acquired for to the implementation of mechanization and infrastructure projects;2. Assessment of damage and probable insurance coverage for various machinery, facilities, and infrastructure installed/constructed;3. Establish basis for the appropriation of budget for the maintenance, repair, replacement or rehabilitation of agri-fisheries facility, machinery and equipment due to deterioration and unserviceability through time or brought by disaster;4. Determine the appropriate and just compensation for the property owners affected by the acquisition of ROW for infrastructure projects.5. Preparation of Feasibility Study for mechanization projects; and6. Financial reporting, leasing, disposal of DA projects.While the Philippine Valuation Standards (PVS) encompasses various types of real properties, ABEs were only authorized to conduct valuation of agricultural and biosystems machineries and equipment, structures and facilities and agricultural and biosystems engineering projects which are located or part of farm/agricultural land. Hence, there is a need to enhance the applicability of the standards relative to the specific programs and projects of the DA. The following terms shall apply to this Administration Order: Acquisition Cost refers to the cost of purchasing an item or property, appraised within the year of its purchase, acquisition cost refers to the actual cost of the machinery, plus the cost of transportation, handling, freight and insurance charges, brokerage, custom duties and taxes a J ! " " ̂ ' '• SECTION II. COVERAGE SECTION III. DEFINITION OF TERMS /A food-secure and resilient TdiCippines witli empowered and prosperous farmers andfisfierfoO* Appraisal/Valuation is the act of estimating the value of a property on a specific date for specific purpose. Agricultural and Biosystems Buildings and Structures refer to buildings and structures for the production, harvesting, processing, storage, manufacture, preserving, transporting and distribution of agricultural and biological products/materials and includes, but is not limited to, silos and its components, agricultural and biosystems machinery and equipment sheds, farm houses, green/screen houses, poultry houses, piggery houses, slaughterhouses, farm-to-market roads, farm bridges, agricultural and biological products storage/warehouse, buildings and structures for poultry, livestock, fishery, and forestry production and processing, kiln drying and lumber treatment structure, farm equipment, farm supplies, and other structures such as self-feeders, and soil and water conservation structures Agri-fisheries Infrastructure Projects refers to the construction, improvement, rehabilitation and maintenance of agri-fisheries production and postharvest facilities, farm-to-market road, irrigation structures and other similar related infrastructure works and services Agricultural and fisheries machinery refers to machinery and equipment for the production, harvesting, processing, storage, manufacture, preserving, transporting and distribution of agricultural and fisheries products. It includes, but is not limited to, tractors and their attachments, power tillers, seeders, transplanters, windmills, harvesting machines, crop protection and maintenance equipment, irrigation equipment and accessories, greenhouses and other thermal conditioning equipment, livestock equipment, fishery equipment, slaughtering equipment, meat/fishery and crop processing equipment, postharvest machines such as milling machines, dryers, threshers, grain and other strippers, agricultural transport machinery and storage facilities including cold storage, reefer vans, slaughter houses and fishing boats of three (3) gross tons or less. New agricultural and fishery machinery includes newly imported as well as one that has not been used since its date of manufacture; Agricultural and fisheries mechanization refers to the development, adoption, assembly, manufacture and application of appropriate, location specific and cost- effective agricultural and fisheries machinery using human, animal, mechanical electrical, renewable and other unconventional sources of energy for agricultural production and postharvest/postproduction and economic farm and fishery management towards modernization of agriculture and fisheries Assets is a resource with economic value that an individual, corporation, or country owns or controls with expectation that it will provide a future benefit. Benchmark is the reference point from which the value of the similar properties is measured or tested. ,.... JA food-secure and resilient THilippines with empowered andprosperous farmers andfisherfoOt pP0 aqananq AMiKITa Buildings are permanent structures adhered to the land for domestic, commercial and industrial purposes, and for other various uses and not mere superimpositions on the land Cost is the price paid for the property or the amount required to create or produce the item or property. Client is the entity for which valuation is performed. This includes external and internal clients. Crops and trees - plant or plant products that can be grown and harvested for profit Depreciation refers to the adjustments made to the cost of reproducing or replacing an property to reflect physical deterioration and functional (technical) and economic (external) obsolescence. Economic Life is the estimated period over which a building or machinery is anticipated to be utilized for financial or non-financial benefits. Fair Market Value is the price a willing buyer would pay a willing seller in a transaction on the open market. Fair Value is the amount for which an property could be exchanged between knowledgeable willing parties in an arm's-length transaction Project Life - the period of time over which an incentive program project achieves reductions that are surplus, quantifiable, enforceable, and permanent. Project life must not exceed the useful life of mobile agricultural equipment funded through incentive programs and may vary across incentive programs and project types In Arm’s Length Transaction is a type of transaction between unrelated parties that act individually (e.g., parent and subsidiary companies) that may make the price level uncharacteristic of the market or inflated. Infrastructure Projects Include the construction, improvement, rehabilitation, demolition, repair, restoration or maintenance of roads and bridges, railways, airports, seaports, communication facilities, civil works components of information technology projects, irrigation, flood control and drainage, water supply, sanitation, sewerage and solid waste management systems, shore protection, energy/power and electrification facilities, national buildings, school buildings, hospital buildings, and other related construction projects of the government. Implementing Agency (IA) refers to any department, bureau, office, commission, authority or agency of the national government, including any government-owned or - controlled corporation or state college or university, authorized by the law or its respective charter to undertake national government projects. The DA as a whole is anIA. JA food-secure and resilient Thilippines witli empowered andprosperous farmers andfisfierfoOi Implementing Office (10) refers to any of the units of the DA authorized to implement mechanization and infrastructure projects. Insurance Valuation it is where the cost approach is adopted for valuation for insurance purposes, and the valuation conclusion will not be equivalent to the Market Value Land is the portion of the earth's solid surface distinguishable by boundaries or ownership Agricultural lands refer to land devoted to or suitable for cultivation of soil, planting or crops, growing trees, raising livestock, poultry, fish or aquaculture production, including harvesting of such farm products, and other farm activities and practices performed in conjunction with such farming operations by persons whether natural or juridical and not classified by the law as mineral land, forest land, residential land, commercial land or industrial land. (DA A01, S 2017) Real Estate includes the land and all things that are natural part of the land (e.g. trees, minerals), including the things attached to it, and all permanent building attachments. This includes all attachments, both below and underground. Machinery are machines, equipment, mechanical contrivances, instruments which may or may not be permanently or temporarily attached to a real property. It includes physical facilities for production, those that are mobile, self-powered/self-propelled which are directly and exclusively used to meet the needs of a particular activity. Market value is the estimated amount for which a property should exchange on the date of valuation between knowledgeable willing parties in an arm's-length transaction after proper marketing Obsolescence is the loss in value due to decrease in the usefulness of property caused by decay, changes in technology, preferences, or environmental changes. Physical life is the period on how long the property could be used until it is worn out or beyond economic repair. Plant, Machinery and Equipment are tangible property that are held by an entity for use in the production or supply of goods and services, and are expected to be used over a period of time. The categories include: I. Plant - Property combined with others that may include specialized buildings, machinery and equipment. II. Machinery - individual machines or collection of machines which is used for a specific process in connection with the operation of the entity. III. Equipment - other property that are used to assist the operation of the entity. Price is the amount asked, offered, or paid for goods or an item. /A food-secure and resilient 'Philippines with empowered aneCprosperous farmers andfisfierfoOt Property is a legal concept encompassing all the interest, rights, benefits related to ownership Remaining Economic Life is the estimated time period for which the improvement, other structures and machinery or equipment continue to contribute to the value of the property. Right-of-Way (ROW) - means a part or the entirety of a property, site, location, with defined physical boundaries, used or required by the government infrastructure project. Salvage Value - the value of an asses that has reached the end of its economic life for the purpose it was made. The property may still have value for an alternative use or for recycling. Scrap Value - the amount estimated to be recovered from the asset's individual components when it is deemed no longer usable. (Source: Revised SOP on Depreciation Accounting) Useful Life is the period of time that the property/property may reasonably be expected to perform the function it is intended to and generate benefits, with typical maintenance. Utility describes the degree of usefulness of a property. Valuation Report is a document that records the instructions for the assignment, the basis and purpose of valuation, and the results of the analysis that led to the opinion of value Value is the probable price to be concluded by the buyers and sellers of a good/services that is available for purchase. Valuer is an individual, group of individuals or a firm who possesses necessary qualifications, ability and experience to execute a valuation in an objective, unbiased and competent manner. SECTION IV. VALUATION APPROACHES AND ITS APPLICATIONSTo determine the value of property including agri-fisheries machinery, equipment, facilities, there are several approaches that can be used. In selecting these approaches, the applicability based on the characteristic and type of property involved, nature of the market, and the availability of required data should be considered. A. MARKET APPROACHIn Market Approach, property value will be determined by comparing it with the cost of acquiring an existing property of similar nature through conduct of a market study of comparable properties. .A food-secure and resilient Philippines ■with emp&we redC and'prosperous fa rmers antCfisfurfoCk The Market Approach can be characterized through the following methods: A .l Comparable Transactions Method - utilizes the information on transactions of the same or similar property and can be performed through identification of unit of comparison, comparable transactions, and necessary adjustments identified from the conducted comparative analysis. A. 2 Guideline Publicly-Traded Comparable Method - utilizes information on publicly-traded comparables that are sufficiently similar or same to the subject property. B. COST APPROACHThe Cost Approach is based on the proposition that an informed buyer would pay for an property no more than the cost to obtain an property with the same utility, whether by purchase or by construction. This approach establishes the value by estimating the cost of acquiring the property with equal utility or adapting an old property to the same use with no undue expense resulting from delay.To further characterize this approach, the following methods may be considered: B. l Replacement Cost Method - indicates a cost that envisions constructing a structure of comparable utility with the subject property but which is of a current design or constructed using current cost-effective materials and techniques available in the market.On the other hand, physical deterioration and all relevant forms of obsolescence will be considered for adjustment of the Replacement Cost, which can be referred to as Depreciated Replacement Cost. B.2 Reproduction Cost Method - indicates the cost to recreate a replica of the existing structure, employing the same design and similar building materials offering the equivalent utility is calculated. This method is applied given the following conditions:• The cost of a modern equivalent is greater than the cost of creating the replica of the subject property; and• The utility offered by the property could only be provided by a replica rather than a modern equivalent.Cost approach should capture all the costs that will be incurred by the property should be considered. These costs differ depending on the type of property and should include the direct and indirect costs that would be required to replace/recreate the Propertys as of the valuation date. JA food secure and resilient Tfiilippines witfi empowered and prosperous fanners andfisfierfoQi • Direct Costs are the elements of cost that are directly related to acquisition and installation of the unit (e.g. materials, labor cost, etc..) • Indirect Costs are those elements of costs not directly related to the acquisition of a specific item of the property but relates to the installation and acquisition of the entire property (e.g. transport cost, installation cost, professional fees, permits, taxes, profits, etc.).In terms of depreciation/obsolescence, which is an essential consideration in the Cost Approach, adjustments are normally considered within the following contexts: 1. Physical obsolescence (PO) - loss of utility due to physical deterioration of the property or its component due to age and usage. This can be determined in two different ways:a. Curable PO where the cost to fix the obsolescence is considered, andb. Incurable PO where the proportion of the expected total life consumedis considered. 2. Functional Obsolescence - loss of utility due to inefficiencies in the subject Property compared to its replacement due to change in preference, technical innovations, or market standards. This may be in form of an:a. Excess capital cost caused by change in design, material for construction,technology that results to modern equivalent property with lower capital cost than the subject property, orb. Excess operating cost caused by improvements in the design or excesscapacity resulting in availability of modern equivalent property with lower operating cost. 3. External/Economic Obsolescence - loss in utility due to factors outside the subject property brought by the adverse change in the demand of the products/services produced by the property, oversupply of the property in the market, or loss of supply of labor or raw material. C. INCOME APPROACHThe cost is determined by estimating the value of an income stream or potential cash flow and converting it to a single current value. The economic benefit of ownership is being considered.The income Approach is applicable in case of investment or commercial properties preferably under the following conditions:• The income-producing ability of the property is a critical element affecting its value• Access to information relative to the income of the property is available• Reasonable projectionsk)f cash flows are available JA food-secure and resilient 'Philippines until empowered andprosperous farmers andfisfierfoOt tfasagananq A n * t f t i lu a s t u i l i i T ^ • Actual or historical generation of incomeTo further characterize this approach, the Discounted Cash Flow (DCF) Method can be used:This is a method of determining the value of a property by considering the future income and expenses on a periodic basis, then the cash flow is recalculated for its present value. With this method, the income is discounted by considering the time value of money, the risks and uncertainties that the future may hold. Considerations for valuation. The types of Depreciations which affect the life of the machinery, equipment, and infrastructure project shall be considered as physical, functional, economic, and environment parameters of depreciation . Considerations in assessing depreciation of the project:o Age; o Condition; o Utilization/Use;o deterioration due to environment condition; o price indexo cost of repairs/reconditioning o impairment of functional capacity o efficiency of the equipment o operation and maintenance Pursuant to the Section 3 of the PRBABE and PRBRES Joint Resolution No. 1, Series of 2022, the valuation report prepared by the ABE shall serve as reference un the preparation of report by the Real Estate Appraiser if the real estate being valued have agricultural and biosystems machineries and equipment, structures and facilities and agricultural and biosystems engineering projects attached to it. Moreover, the Agricultural and Biosystems Engineer(s) shall make it mandatory that the services of Real Estate Appraiser(s) shall be required if the subject of his/her/their appraisal assignment involve real estate located in agricultural areas or projects where the agricultural and biosystems machineries and equipment, structures and facilities and agricultural and biosystems engineering projects is located or situated.The valuation report for agricultural and biosystems projects shall be prepared by a licensed and trained ABE, and shall contain the estimated cost of the property that entails the tangible and intangible aspect of the property, and presents the scope and processes undertaken for the valuation, the basis and the purpose of valuation, and the result of the analysis and the opinion of value. SECTION V. VALUATION REPORT 1A food-secure and resilient Tliifippines with empowered Mid prosperous fM-mers MidfisfierfoCk For the written report (see attached Annex A], the minimum contents are as follows:1. Identity of the valuer and the date of the report;2. Identity of the client;3. Status of ownership4. Instructions, date of valuation, intended purpose of the valuation;5. Basis of valuation and approach used6. Location of the subject to be valued;7. Scope, and extent of the valuation;8. Assumptions and limiting conditions;9. Compliance statement and disclosures;10. Professional qualification and signature of the valuer;11. Specific certification from the valuer.Other additional component may also be included, as prescribed in the PVS:1. Clause prohibiting its publication, in whole or in part, without the written approval of the valuer;2. For valuation reports transmitted electronically, there should be security of transmission (i.e. "read-only" transmission, protection of digital signature) A valuation review should be done to assess the valuer's work which should be undertaken by another valuer to have impartial judgement. The valuation review aims to: 1. Check the adequacy and relevance of the data used;2. Assess the appropriateness of the methods and techniques used;3. Determine whether the analysis, opinions, and conclusions are appropriate and reasonable; and4. Determine if the report complies with regulatory standards and requirementsThe following types of review can be conducted: 1. Administrative (compliance) reviewThis review is performed by a client or user of valuation service as part of the due diligence for acquiring, or selling the property. This can also be done to ensure if the valuation meets or exceeds the compliance requirements or guidelines 2. Desk ReviewThis is limited to the review of data presented in the report, which may or may not be independently confirmed. This can be performed using a checklist of items. This is done to check the accuracy of calculation, appropriateness of data and SECTION VI. REVIEWING VALUATIONS with empowered and'prosperous farmers andfisherfoQi 'A food-secure a n d resilient ThiCippines methodology used, and compliance with client guidelines and other applicable standards. 3. Field ReviewThis review includes inspection of the character of the property and comparable properties to confirm the data provided in the report 4. Technical ReviewThis review is performed by a valuer to form an opinion whether the analyses, opinions, and conclusions in the report under review are appropriate, reasonable and supportable 5. Valuation ReviewThis review may support the same value conclusion in the valuation under review or it may result to disagreement with that value conclusion. This includes the checking of credibility, and strength of the work of the valuer who developed it, in terms of the Valuer’s knowledge, experience, and independence. Type of Review Responsible OfficeAdministrative Review DA Central Office, BAFE, RAEDs, National Banner ProgramDesk Review RAEDs (Section Chief], Banner ProgramField Review RAEDs, BAFETechnical review RAEDs, BAFEValuation Review RED, RTD for Operations, National Banner Program, BAFE, RAEDs, DA Central A Review Committee composed of representatives from the above-mentioned offices may be created to facilitate the review of appraisal report/estimated cost. Upon review, a summary report must be prepared containing the findings, observations, and recommendations, among others, on the submitted appraisal report. .A food-secure an d resilient Tfnlippines witli empirwerecf antCprosperous farmers aruCfisderfod At the national level, the BAFE shall oversee the implementation of this AdministrativeOrder and shall have the following functions:1. Prepare procedural manual for the conduct of valuation of agricultural and fisheries mechanization and infrastructure projects;2. Monitor the status of valuation in the IOs;3. Provide capacity building activities to IOs, on valuation, and damage assessment, ROW acquisition, among others;4. Provide technical assistance to the IOs in the conduct of valuation activities;5. Provide technical assistance in the conduct of review of valuation; and6. Maintain the ABEMIS which shall serve as basis for the data of machinery and equipment and facilities provided by the DepartmentThe DA-Regional Field Offices, attached agencies, and bureaus, and other DA IOsrelevant to the conduct of the valuation activity shall:1. Conduct site assessment and evaluation of the projects for valuation (See Annex B for the site assessment form, and Annex C for the Process Flow for damage assessment);2. Prepare valuation report for the agricultural and fisheries mechanization and infrastructure projects for damage assessment, ROW Acquisition among others;3. Create a Review Committee for the valuation review;4. Coordinate with DA banner program and prepare proposal for budget allocation; and5. Provide inputs in the updating of ABEMIS of the machinery and equipment and facilities provided by the Department.6. Maintain a database of all agri-fisheries machinery, equipment, facilities, and infrastructure projects appraised since the implementation of this guidelines. SECTION VII. IMPLEMENTATION ARRANGEMENT SECTION VIII. CAPACITY BUILDING ACTIVITIESThe expertise on the conduct of valuation activities and preparation of valuation report and cost estimates shall be developed by capacitating the concerned ABEs from the DA RFOs and other DA implementing units. As part of the initiative of the DA for strengthening the network of ABEs, the DA-RFOs may likewise capacitate ABEs in LGUs, and other concerned offices, relative to valuation. SECTION IX. SEPARABILITY CLAUSEIf any provisions of this order is declared invalid, the other provisions not affected thereby shall remain valid and subsisting. SECTION X. REPEALING CLAUSEAll existing Administrative Orders, issuances, rules and regulations, or parts thereof, in conflict with or inconsistent with any provision of this Order are hereby repealed, modified, or amended, accordingly. All IOs under the DA shall provide training for the concerned ABEs prior to the conduct of the valuation activities and for other concerned personnel of assistance in the whole valuation process. Similarly, the BAFE shall issue the "Procedural Manual for the Valuation of Agricultural Fisheries Mechanization and Infrastructure Projects” within a year after the effectivity of this Administrative Order. SECTION XI. TRANSITORY PROVISION SECTION XII. EFFECTIVITYThis order shall take effect immediately upon approval of the DA Secretary. APPROVED this30Hldav of June 2022. APPROVED BY: WILLIAM D. DAR, Ph.D. Secretary DA-CO-OSEC- AO2Q220629 00012 wit ft empowered* aiuCprosperous farmers andfi$(ierfo(k JA. fo o d secure and'resilient Tfiilippines ANNEX A Valuation Report TemplateA. Introduction• Title Page• Purpose of Valuation• Owner of the project• Summary of salient facts and conclusionso Location of the property o Date of inspection o Date of valuation o Type of property o Size/capacity of the property o Age of the property o Present/Actual Use o Site Valueo Estimated Value of the propertyB. Description, Analyses, and Conclusion• Identification of the property• Date of value of estimates• Intended use of the valuation report• Description of neighborhood and community• Description of land, zoning, community services and taxes• Description of improvements;• Highest and best use analysis• Application of valuation approaches• Conclusion of market value• Qualifying and Limiting conditions• Certification of value opinion, with signature of the valuer• Qualification of the valuerC. Addenda and Supporting Materials• Maps and photographs• Lot plan of subject property• Diagram of improvements• Statistical data• Detailed Engineering Plans• Program of WorksPrepared by:Insert names of valuation team ANNEX B Valuation Form Agricultural Infrastructure/ Right-of-Way Date: Time: Ctrl. No: EPDSD-SVF-MA- (EPDSD -SVF-M A-'R egion’ Site No.) 1. General Project Profile Type of Project: Project Location: (P u rok , B a ra n g a y , M u n ic ip a lity , P ro v in c e ) Geotaagged Location (Coordinates): Longitude: Latitude: Benaficiaries (FA , C o o p e ra tiv e , O rg a n iza tio n ) II.Land Profile Classification of Land: Total Land Area (sq.m.): Land Value LGU Unit Value (Php/sq.m): LGU Market Value (Php/sq.m): ■ Terrain □ Flat □ Sloping □ At Street level □ Below Street Level, m !□ Above Street Level, m Land Shape □ Rectangular □ Triangular □ L-shape □ Others: III. Infrastructure Facility Profile Year of Construction/Completion: Building Calssification: Distance to the Nearest Market or Trading Post (km): Road Connection: □ Barangay □ Municipal □ Provincial □ National Type: □ E & G Road □ PCCP Road □ Asphalt Road Type of Available Transportation System: Water Supply: □ Groundwater □ Surface water □ Others: Power Supply □ Electricity □ Generator (fuel Driven) □ Solar IV. Infrastructure Condition (based on Appendices ) Buildinq Component Condition (Points) Remarks Roof Walls Doors Windows Ceilinq Floor Construction Floor Sufrace TOTAL POINTS Result: D Good (75-100% ) □ Fair (50-76% ) D Poor (<50% ) *Condition G ood = 3 p o in ts f - a i r = z p o in ts p o o r = 7 p o in t n i i =u p o in t Remarks: V.Assessment Team Validated by: (Signature over printed name) Designation and Office Respondent: (Signature over printed name) Designation and Office Valuation Form Agricultural Machinery and Equipment Date: Time: Ctrl. No: EPDSD-SVF-MA- (EPD SD -SVF-M A-'R egion*-‘S ite No") 1. General Project Profile Type of Project: Project Location: (Purok, Barangay, Municipality, Province) Geotaagged Location (Coordinates): Longitude: Latitude: Benaficiaries (FA, Cooperative, Organization) II.Machinery Profile Machinery Classification: Brand/Model: Capacity (hp): Prime Mover: Date Acquired: Date Installed: Initial Date of Operation: No.of years operated: Estimated Economic Life: Remaining Economic Life: | Power Supply □ Electricity □ Generator (fuel Driven) □ Solar ll.Condition of Components (use additional Sheet if necessary) Machinery and Equipment Components Operational Status* Remarks *Status O - Operational NO - Non-operational FR - For repair/rehabilitation VII. Assessment Team Validated by: (Signature over printed name) Designation and Office Respondent: (Signature over printed name) Designation and Office ANNEX C ANNEX C INPUT PROCESS START Conduct of Site Assessment and Environmental Scanning/ Coordination with LGUs Preparation of Valuation Report for Agricultural and Fisheries Mechanization/lnfrastructure Draft Projects Valuation Review of Draft Valuation Report Preparation of budget proposal and other pertinent documents END OUTPUT Validation Report Summary Report Final Valuation Approved Valuation Report Budget Proposal and other pertinent documents Figure 1. Process Flow for Damage Assessment of Agri-fisheries Mechanization and Infrastructure Projects