The government will subsidize three local films starting this September in an effort to stimulate the moribund state of film production in the country. The subsidy and investment will amount to 40 percent of the total production cost or P5 million (whichever is lower).
The film fund project, which will be supervised by the Film Development Council of the Philippines, was virtually given its go-ahead signal after President Gloria Macapagal-Arroyo approved the release of P25 million for the initial phase of the project.
As envisioned, the film fund aims to grow to P100 million within the next two to three years, according to FDCP Chairman Rolando ‘Jackie’ Atienza.
The fund, Atienza explained, will be disbursed only after the pre-approved film project is already two-thirds finished, in effect making the FDCP a partner in the co-production venture.
A three-phase disbursement of the film fund will entail three tranches which are broken down as follows:
–Forty percent when two-thirds of the principal photography has been completed and
the edited rushes corresponding to this output have been seen and approved by
the members of the film fund’s monitoring committee assigned to the project.
–Forty percent upon final interlock.
–Twenty percent upon delivery and viewing of the first print.
A selection committee, headed by National Artist for Film Eddie Romero, has been formed to screen and evaluate the projects which can avail of the fund. Digna Santiago of Premiere Productions has been appointed as head of the monitoring committee.
Chairman Atienza said they will give priority or preference to movie production outfits that have not produced 35 mm films for the last year. He added that active producers who can submit better scripts and projects will also be considered.
The screening committee will first approve the script, the director and casting of
a film project before the FDCP can enter into a co-venture agreement with the producers.
FDCP will get 25 percent of the total theatrical proceeds of the film, net of amusement taxes, Atienza added. He clarified: “If the proceeds are than more than our investments, the excess will be given back to the producer. All the FDCP wants is recovery of its investment. The producer can buy us out of the co-production venture anytime.”
Criteria for the film projects to avail of the fund are as follows: script, 40 percent; director, 25 percent; cast and staff, 20 percent; and budget/financial capability/track record of production outfit, 15 percent.
The project proponents must submit the following requirements:
–Synopsis, sequence treatment and script.
–Proposed cast and staff.
–Budget of total project vis-à-vis requested financial assistance.
–If the availer is a corporation, the latest ITR of the company and a board resolution
authorizing designated officer to borrow. If borrower is an individual, the individual’s
latest ITR is needed.
–Company profile or profile of individual project proponent and profile of
–Project schedule/timetable/shooting and sequence breakdown from pre-production to
–Project cash flow indicating source of funds (equity vs. Film Fund vs. other sources).