F.F. CRUZ & CO., INC.

Philippine Land Registration & Information System

800 EDSA, QUEZON CITY

Trunkline 927-33-24

Directline 426-29-16

Fax No. 921-12-23

February 27, 2002

Mr. Prudeno Natividad

Overall Project Manager

Land Registration Systems, Inc.

Subject: Nationwide TD Mapping

Dear Mr. Natividad,

Hereunder are our recommendations with regards to Nationwide TD Mapping:

1.  To minimize upfront cost, LARES should propose to LRA that we continue TD Mapping of RDs outside NCR after Phase 2 or starting Phase 3.

2.  We will use the same resources allotted for TD Mapping of NCR RDs and just extend the schedule until we cover the whole Philippines. Our current projection of the duration to finish Nationwide TD Mapping is less than six (6) years from the start of Phase 3.

3.  RDs with high volume of transactions and RDs of high growth potential (regional centers of development) should be mapped first so that maps can be immediately utilized by LRA for their transactions. At the same time, LARES will be able recoup their investment in mapping as early as possible

4.  LARES should propose to LRA that transaction fees be raised by the middle of Phase 3 to cover its additional investment in Nationwide TD Mapping.

5.  We should not do any mapping by digitizing anymore (including Cebu) since our study indicated that the resulting maps would be almost useless (existing LRA maps contain few outdated parcels).

6.  LARES should propose to LRA that TD Mapping of Cebu be delivered during Phase 2, probably the first to be delivered even ahead of NCR RDs for Phase 2.

7.  For purposes of negotiations with LRA, the additional cost of Nationwide TD Mapping can be computed by applying a per parcel cost of P 148.00 multiplied by number of parcels outside of NCR estimated to be 60% of the total number of titles.

Very truly yours,

Jose Marie P. Bernabe

Deputy Project Manager/

Geospatial Information Department Manager

FFCCI-PHILARIS Project

Noted by:

JESUS S. ESPINA, JR.

Project Manager

FFCCI-PHILARIS Project

cc: Mr. E. A. Cruz

Mr. A. L. Umali

Mr. C. C. Legaspi, Jr.