General Outline of Joint Venture and Government Projects involving Quantum International, and its associated companies in the Philippine Republic.

At the present time we have numerous projects set for initial construction and operations in the Philippines. These projects include the following construction and development projects:

1. Commercial Buildings. Hotels, Offices, Apartments, Military and Government Housing. All construction using Quantum ICS systems.
2. A Quantum ICS Production Plant for a Government approved energy efficient building system.
3. Biofuel and Energy Projects.
4. Plasma and Recycling Plants.
5. Homeland Security Operations with the Philippine Department of Justice & National Security Council.

Philippine Government Support: In all Quantum projects in the Philippines, months have been spent securing government support and approval of our projects. Much of this was developed initially by our counter terrorism and military training programs, and advanced with our law enforcement computer systems for the Department of Justice. This in turn led to the approval and support of our military & government housing projects, and the proposal for the first Quantum ICS Plant the Pacific Rim.

Philippine Government Financial Support & Guarantees: In many ways, the Quantum Philippine Projects are the most financially secured internationally.  By limiting our projects to those projects desperately required by the government, Quantum can secure full bank SBLCs covering 25-40% percent of all of our proposed projects. These are not only Government guarantees, but are also in the form of straight SBLCs issued directly to Quantum in order to secure favorable funding. 

This is in addition to funding guarantees and programs offered by the US EXIM Bank, USAID and other US Government agencies such as OPIC, and the World Bank.  Key factors for Quantum Projects and/or JV Funding Commitments:

1. Any projects in which a government entity is a partner, or a direct beneficiary.
2. Any projects involving the military or national police.
3. Joint Venture Projects in which one party is a known, established, managing
business entity and putting up at least 25% of the required funding.
4. Projects requesting the use of Quantum Products (Plasma, Wind Turbines, Quantum ICS Systems).

Key Areas for Quantum and our new Philippine companies:

1. Quantum, and our associate companies, has made commitments in which we and our investors have an interest in investing in Low Income Housing, Energy Projects, and Prime Commercial Ventures. In each area, we have set the requirements which must be met.
2. In Low Income & Military Housing for Example, a unit “buy back” guarantee is required for each unit funded and built.
3. In energy projects, we will have long term contracts stating that the “Host” Government is in support of the project, and we will have a long term buyer of all energy produced.

Additional factors for JV Equipment Funding Commitments:

1. We will normally use U.S. or Canadian equipment and technology, so we can take advantage of U.S. EXIM Bank Guarantees, if needed.  This is not a requirement.  

The Effect of Quantum ICS:

The fact that Quantum International is using the advanced ICS Building Systems is an enormous advantage. We can produce residential and commercial structures, which are stronger and 30% to 60% more energy efficient, at half the time required of other building systems.

Legal Format of Proposed Philippine Companies:

To conform to the legal requirements of doing business in the Philippines, separate Philippine corporations are required to be formed. At the present time, Quantum is in the process of setting up various Philippine corporations to promote building systems and products produced by Quantum International for each of the areas in which we are involved. The use of established Filipino business associates and ex-government officials will be used for these corporations, although Quantum will maintain operational control of each Filipino company.

Quantum Projects: In the Philippines, these projects include the following construction and development projects:

1. Construction: Quantum is activily promoting its own Insulated Concrete Building Systems, a revolutionary construction method involving insulated concrete building forms. Once the steel reinforcements are installed, the structure is completed with a continuous concrete “pour”. All walls and floors are formed as a single unit, which makes the structure nearly indestructible, as well as 30% to 60% more energy efficient than conventional building systems.

Using this system, Quantum is involved in the final negotiations with the Philippine Government in the design and construction of various commercial, industrial and government building projects. These include Correctional Facilities, Hospitals, Commercial Complexes, Police and Military Facilities, Low-Income Housing and Airports.

Quantum is a distributor for various construction methods for low income housing, including Tri-Steel Production, Shelter Plus* technologies, and Quantum ICS. At the present time we are involved in installing Quantum ICS plants in the Philippines, China, and Mexico.

2. Plasma Hazardous Waste Disposal Plants: We are currently negotiating with various branches of the Philippine government for the construction of three (3) “model” Plasma Waste Disposal Units in Manila and Mandaue, using the Westinghouse Plasma Torch Systems. Quantum provides all equipment, components, and engineering to construct and maintain the latest in these hazardous and municipal waste disposal systems. These units are presently being constructed in the United States, and are presently being offered by Quantum Distributors throughout the world. We operate these facilities, after their construction, under long-term contracts concerning both the disposal of waste, and the sale and production of electricity.

These units can dispose of up to 3,000 MT of Municipal Waste per day, producing electricity and other commercial products.

3. Airports and supporting Commercial Structures. Using the superior Quantum ICS Building System, Quantum has been asked to be a majority Joint Venture partner, and builder of two (2) major airports and adjacent commercial projects in the Philippines. One near Clark Field and one in the Calamianes Islands. The one in the Calamianes Islands will include construction of five (5) hotels and one casino over the next 5 years using the Quantum Insulated Concrete Building Systems.

4. Wind Turbine Operations. Quantum International is currently involved in the construction of several low cost wind generated turbine facilities, for the production of electricity. At the present time, we are negotiating on 4 projects in the Philippines. Our “model” plant involves 125 wind turbines and towers which will produce a combined power output of 82.5 MW.

• Each tower unit will consist of a wind turbine with a rotor blade 77 feet long (154 ft. diameter) mounted on a tower 213 feet tall at the hub.
• The wind turbines begin to generate electricity at winds of 8 miles per hour and generate maximum power at 36 miles per hour.
• The wind turbines can operate with winds up to 56 miles per hour. At higher wind speeds, they turn out of the wind, to prevent damage to turbine parts.
• The cost of this installation, if done in the United States, is approximately $90 million, including property and set-up. Smaller plant sizes are of course available, at much lower costs.
• The plants are designed to connect to existing power grids of a local substation.
• The operational life of generating electricity, under normal maintenance, is estimated to be 20 – 40 years.

5. Projects Directly Related to Philippine National Security & The Department of Justice:

A. Criminal Justice Computer & Communication Systems: We are presently doing a complete evaluation of the Philippine Criminal Justice systems, involving information computers, police records and computer systems involving the Criminal Justice systems, the police, and related Philippine law enforcement agencies.

B. National Security Upgrades: Other projects in which we are involved are the upgrades in the security and surveillance systems for existing Airports, Seaports and other areas, which may be targeted for terrorist acts. This includes training material for police, fire and medical units, who would be the initial responders to any terrorist act. In this, we have been involved in meetings with the Philippine Department of Justice for the past year.

C. Criminal Justice Computer & Record Systems: This is the most important of all matters. At the present time, there is no coordinated Criminal Justice records system which encompasses all Philippine agencies and related U.S. and international law enforcement agencies. Quantum is conducting a full analysis of the current criminal justice record systems and proposing alternative systems and upgrades, which will include a complete revamping of the Philippine Criminal Justice systems, involving information computers, police records, and those computer systems which involve the Criminal Justice systems, the police, and related Philippine agencies. All systems are totally compatible with U.S. and Interpol AFIS and FR systems,

We are involved in the following areas:

(CAD) Computer Aided Dispatching for Law Enforcement
Quantum Records Management System for Law Enforcement
Mobile for Law Enforcement: Quantum Mobile.COM & Quantum Mobile.REPORTS
Integrated Justice Systems
Investigation Analysis Systems
Computer Aided Dispatch for Fire & Rescue
Fire & Rescue Management
Mobile for Fire & Rescue
Corrections Management:
Electronic Medical Records Management
Integrated Justice Systems
Probation & Parole Systems
Judicial Court Systems
Court Management Systems
Prosecutor Information Systems
Civil Process Systems
Integrated Justice Systems
Link Analysis
Computer Forensics

Summary:

Quantum personnel have met with NBI officials, their records personnel and the computer branch of the Philippine Government. They advised of the following:

1. Philippine computer systems are not directly connected with the US Justice System or Interpol.
2. In the regions outside of Luzon, police and government agencies have no central criminal justice computer system for information to their officers.
3. The NBI has no central computerized records system compatible with international systems.
4. In the area of AFIS and FR systems, it is reported that the PNP has an AFIS System. If so, it is not shared with the other Philippine Criminal Justice organizations. At the present time, the NBI has some 30 Million Criminal Fingerprint Entries and 1 Million Civil (Non-Criminal) Fingerprint Entries, all of which need to be entered into a central computerized records system.
Many Philippine and U.S. parties are under the impression that the Philippines has an operational AFIS system. Per the Director of Computer Operations for the President, this is not the case. Several years ago, an AFIS system was approved as it was funded by the Australian Government. The system was purchased by a Japanese company, using a Russian system. The Director of Computer Operations advised that the system has never been augmented, and that various computers are sitting untouched after 6 years.

National Security Upgrades: One of the many areas in which Quantum is involved, is the upgrade in the security and surveillance systems for existing Airports, Seaports and other areas which may be targeted for terrorist acts.

Advanced Counter Terrorism & Emergency Response Training Programs: This includes advanced training material for police, fire, and medical units who would be the initial responders to any terrorist act. This material has already been submitted, reviewed and approved by the Philippine Department of Justice & the Philippine National Security Council.
Police Communications: We are involved in doing a full analysis of the current criminal justice communication systems and proposing alternative systems and upgrades. Some of this is being done in conjunction with Motorola. This will include a complete evaluation and upgrade of the current Philippine Criminal Justice communications systems, and will implement advancements involving technology which will make the system more secure. The “heart” of these improvements is: 

A. The implementation of Criminal Justice Computer & Record Systems.
B. The implementation of AFIS and FR systems.
C. The implementation of Quantum Counter Terrorism Training Courses.

These matters are the most important. Following these, Quantum will move on the:

1. Police Communications Systems.
2. National Security Upgrades, including surveillance and security systems, for air & sea ports.

Quantum is working closely with funding through US Government Grants, the U.S. State Department, and other agencies for these projects. No Funding other than that is required.

General Outline of Proposed Projects:

Plasma Plants:

1. Mandaue City.  Cost $800 Million (US).  
2. Castle City Cost $800 Million (US). 
3. Manila Cost $800 Million (US).  

Airports & Commercial Buildings:

Project Type & Location Construction Amount Required Completed Value PhilExim Guarantees
1 Commercial Airport (Clark) $150 Million (US).
2 Commercial Airport (Calamianes Islands) $100 Million (US).

In conjunction with both projects, but especially Calamianes Islands, both airport projects involve massive secondary commercial construction which is not included in the figures listed above.

Industrial & Manufacturing Plants:

1. Quantum ICS Production Plant (Manila) $20 Million.

Mining & Equipment Funding

Project Mining Group Funding Amount Additional Collateral PhilEXIM Guarantees
1 Quantum’s Philippine Mining Company is currently advancing $100 Million for equipment, and the acquisition of additional mines. 

Other Quantum Construction & Government Projects

In the construction of Military and Government housing units, no funding is required. This is also true of Government office buildings, schools, and other select projects.

Summary: Full business plans are available on all Quantum Philippine Projects. For additional information, please contact Quantum personnel at our Philippine offices or in Houston.