MANILA, Philippines — The Philippine Competition Commission (PCC) has cleared the joint venture between state-run Bases Conversion Development Authority (BCDA) and Malaysian developer MTD Capital Bhd to build the National Government Administrative Center (NGAC) in New Clark City, Pampanga.
In a decision signed on March 13, the PCC said its mergers and acquisitions office found that the transaction does not result in substantial lessening of competition.
“The creation of the joint venture will not have any substantial structural effect on the market,” the PCC said.
MTD earlier submitted to BCDA an unsolicited proposal to build the NGAC in a joint venture with the state-run firm.
BCDA subjected the project to a competitive challenge to private sector participants in accordance with its guidelines, where MTD as original proponent won.
The proposed joint venture is set to handle the financing, design, engineering, establishment, construction and eventually the operation of the NGAC.
Under the partnership, BCDA shall allow the use of its idle land for 25 years as site of the NGAC, but shall retain full ownership thereof, while MTD shall finance, design, build and develop the infrastructure, facilities and improvements comprising the NGAC.
The BCDA is a government owned and controlled corporation (GOCC) established to accelerate the development and conversion into alternative productive uses of the Clark and Subic military reservations, while MTD is a Malaysian investment holding company with interests in civil engineering and construction, infrastructure development, real estate and property development, energy, ports and manufacturing of construction related materials.
The PCC said it is mandated under the Philippine Competition Act to review mergers, acquisitions and joint ventures of firms across all sectors, including GOCCs, that meet the threshold to ensure the deals would not harm the interest of consumers.
BCDA last January broke ground for the first phase of the NGAC in New Clark City.
According to BCDA, Phase 1 of the 200-hectare NGAC would involve the development of back-up offices of various agencies to ensure continuous business operations and services for the people in case of disaster or national calamities.
A one-stop-shop for all the businesses located in Region 3 will also be built as part of the development.
Phase1A of the development, which will cost P13.16 billion, is seen to be of great significance to the 2019 Southeast Asian Games which the Philippines is scheduled to host.
BCDA said a world-class sports complex with an aquatics and athletics center would be completed in less than two years.