1. What are the full details of the GGLC project?

Answer: Global Gateway Logistics City is a 177-hectare Master Planned Aviation Oriented Logistics and Business Center of Excellence located at Clark Field, Pampanga, an hour north of Metro Manila. It will host business enterprises and operations with priority given to aviation and logistics related businesses, including but not limited to warehousing, distribution, transportation and related multi-nodal logistics; light industrial and manufacturing; administrative, management and business offices and complimentary commercial and retail operations that are present in and around major International Airports, Aviation Complexes and Aerotropolis. Over 4,500,000 square meters of turn-key facilities, ranging from warehouses and light industrial facilities to modern office buildings and commercial and retail outlets are being design-built for direct lease to locators.

The Ground Breaking ceremony was held on August 25, 2008 with Her Excellency, Gloria Macapagal Arroyo, President of the Philippines officiating and delivering a national address. Sheikh Ahmad Dawood Salman Al Sabah, a member of Kuwait’ royal and ruling family also attended representing the government of Kuwait. The ceremony was well attended by numerous dignitaries from both government and industry and over 1,000 attendees.

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2. How much will be invested in the project?

Answer: There will be two stages of the development project. The first stage of the project will cost $25 million for the development of the infrastructure including roads, street lights, fencing, landscaping, sidewalks, utilities and access points. The second stage will see the development over $1.5 billion in facilities and buildings.

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3. How long will it take to complete the project?

Answer: The build-out of the infrastructure will take about 24 months while the construction of the facilities and buildings to be subleased completing over a seven year timeframe. The Master Plan was approved by the Philippine Government on May 11, 2009 after nine months of detailed planning, design and engineering by the Project Developer, Peregrine Development International and the Project Architect, Palafox Associates. Construction commenced on May 13, 2009.

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4. How many jobs will be created from the project?

Answer: We expect that there will be a minimum of 35,000 new jobs created; however this number may increase to as many as 70,000 depending on the mix of locators attracted to Clark and the final mix of facilities built over the seven year planned build-out period.

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5. Who is KGL Investment?

Answer: KGL Investment Company is the principal investor and owner of GGLC. KGL Investment Company is a business unit of KGL Group. KGL is a Kuwaiti company that is a global leader with over 50 years of experience in transportation, logistics, stevedoring, passenger transport, warehousing, supply chain management and port operations. KGL Group currently has operations in Kuwait, UAE, Jordan, Tunisia, Oman, Namibia, Morocco, Pakistan, Germany, Ireland, Cayman, Mauritius, Egypt and the Philippines.

KGLI is an international alternative investment firm engaged in private equity, venture capital and investment banking. KGLI was established in 2006 to leverage KGL Group’s expertise, brand and international platform to take advantage of the growing private equity opportunities in the industry.

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6. Why did KGL Investment decide to invest in the Philippines?

Answer: There were a number of compelling reasons to invest in the Philippines. Foremost among these is the country’s high quality human resource base. Filipinos are one of the most sought after workforces in the world. They are sought after because they are English speaking, multi-skilled, highly trained and familiar with high quality processes, procedures and programs.

Another consideration is the strategic location of the Philippines at the heart of Asia’s eastern gateway placing it within the immediate reach of the Chinese, Koreans, Japanese and other ASEAN markets and it is easily accessible to America, Europe and the Middle East. We also believe that progressive economic reforms and policies, generous tax incentives and simplified investment procedures have created a climate highly favorable to foreign investments.

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7. What was the driving factors that lead to Clark and Northern Luzon?

Answer: First and foremost was the proactive leadership of the staff and executive management team of Clark International Airport

Corporation (CIAC) led by Mr. Victor Luciano. CIAC, along with their counterparts at the Clark Development Corporation (CDC), the local Mayors of Mabalacat and Angeles, and their Congressional representative were most enthusiastic in demonstrating their commitment to attract international investors to the region. Rarely do you see such an integrated business and political team working together to create such a business friendly environment. We believe the relationship between the Diosdado Macapagal International Airport and its surrounding environs and the Manila International Airport is destined to become the same as evidenced between Washington Dulles International Airport and the Ronald Reagan International Airport in Washington DC.

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8. Does KGL Investment Company have any plans to invest in any other projects in the Philippines?

Answer: Yes, KGLI has already invested in other attractive investments in the Philippines, including Negros Navigation, a leading Philippine shipping company. KGL Investment strongly supports the continued developments in the economy and we believe that the funds that we attract from outside of the Philippines will further add to the improved investment climate.

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9.Who will develop the Project?

Answer: KGLI has selected Peregrine Development International as the exclusive Program and Project Manager, Prime Contractor and Developer. Peregrine conceived the project three years ago, and developed the original conceptual studies and master plan. Peregrine is intimately familiar with the site and project, and more importantly, has an executive team that has experience and knowledge of operations in the Philippines since 1972. Peregrine has selected Palafox Associates, the leading Philippine Architecture and Engineering Company to do the design for the project.

Peregrine has developed a comprehensive Master Plan that will allow fast tracking the development to align with market demands. Peregrine will rely heavily on Philippine companies for construction and construction related support services.

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10. Who is Peregrine?

Answer: Peregrine Development International is an American owned company with extensive experience in Project Development, Program Management, Engineering, Construction, Operations, Maintenance and Logistics. Peregrine has offices in Kuwait the Philippines and United States.

Peregrine has a proven track record of developing large projects, incorporating the best in conceptual design, marketing, program management, project execution and logistics support to a broad range of clients for both the public and private sectors.

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11. Who will be the new locators and where do you expect the new locators to come from?

Answer: The Philippines is the ideal location for any international company from the west, as well as Japan, Korea, Taiwan, Singapore and Australia, all of whom are looking for offshore operations, distribution centers or manufacturing sites because of higher labor and land costs in their own respective countries, and perhaps more importantly today, because it positions them on the door step to China, rapidly becoming the world’s largest economy.

The Philippines has assumed its leadership position over Thailand, Malaysia, Viet Nam and Indonesia because of its reputation for providing a reliable English speaking workforce that is highly educated and internationally recognized with 9 million Filipinos working overseas. Hence the Philippines has emerged as the best location for more industrialized nations to locate their off-shore manufacturing, logistics, distribution centers and warehousing in addition to other back-room management and business activities such as accounting, record keeping, engineering, animation, IT, programming and other administrative functions.

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12. How do you expect your Global Gateway Logistics City to compete against other similar complexes?

Answer: Global Gateway will be the first new fully integrated, master planned, large-scale aviation oriented Logistics Hub and Business Park in the Pacific that is focused on Airport and Aviation oriented business enterprises. It will be the first major new park of this size in the Philippines since the Laguna Techno Park opened south of Manila in 1989. It will offer many state-of-the-art amenities, including controlled access with a comprehensive physical security system, a sound infrastructure capable of supporting the most sophisticate communication networks with inexpensive and stable power, along with good water and sewage treatment by virtue of the former U.S. Air Force base infrastructure. Developed to world-class standards, GGLC would also feature extensive landscaping, signage and green space with wide main thoroughfares and roads. Global Gateway will be managed and maintained to the highest western and international standards of service and maintenance and open to multi-national companies who desire proximity to, or dependence on, Aviation and Airport related activities

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13. How will the GGLC project impact the economy?

Answer: First, in addition to $25 million in new infrastructure which will prime the development, GGLC will result in over $1.5 billion in new facility construction employing over 4,000 construction and trade crafts during the zenith of the project development and construction. Subsequently, as locators come on line and the park approaches full capacity over a seven year period, over 35,000 employees will be working in the park, which represents well over $100 million in annual payroll.

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14. How will GGLC fit in with the local business community?

Answer: KGL Investment Company and Peregrine recognize their corporate responsibilities to be part of the local business community and fulfill their civic responsibilities. In this regard, the Team has met with both Mayors of Mabalacat and Angeles and has selected two Hospitals to renovate in each community. Additionally, the Team has met with the local chapter of the Veterans of Foreign Wars (VFW) and has committed to assisting with refurbishment of the Veterans Cemetery adjacent to the GGLC site along the main artery entering Clark. This project will entail the construction of a new perimeter fence and central covered plaza at the main entrance of the Cemetery to serve as an area where memorial services can be held. All three projects have been coordinated and approved by the two Mayors and the VFW. These local civic and community projects are estimated to cost $250,000 and will be accomplished during the build out of the Infrastructure of Global Gateway.

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15. Who can I contact for additional information?

A.Mark E. Williams
Vice President, Private Equity

KGL Investment Company

Cell:
+965-9-406-3133
+63-917-552-6275

Email:
mark.williams@kglinvest.com

Dennis L. Wright
President

Peregrine Development International

Cell:
+965-9-747-6965
+63-905-300-9700

Email:
dwright@peregrinedc.com

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