PCC clears P62-billion Pasay reclamation project

Udenna, China firm form joint venture with Pasay LGU

MANILA, Philippines — The Philippine Competition Commission (PCC) has given its approval to the joint venture between the group composed of Udenna Development Corp., Ulticon Builders Inc. and China Harbour Engineering Co. and the Pasay City government for a P62-billion land reclamation project covering 265 hectares within the city.

In a commission decision dated Sept. 26, PCC said its review showed the proposed transaction between Pasay Harbor City Corp. and the city government is unlikely to lead to less competition in the market.

“This is because the transition will create a new market for commercial and residential real estate within the city of Pasay,” the PCC said.

It is unclear if the project will need clearance from the Department of Environment and Natural Resources. Environment groups are opposing further land reclamation in Manila Bay.

Under the proposed joint venture, the parties will engage in the P62-billion land reclamation project to develop a part of Manila Bay within Pasay City.

Pasay Harbor City Corp. submitted an unsolicited proposal for the project.

An agreement for the joint venture was signed in November 2017 after no offers were made by other firms to challenge Pasay Harbor City Corp.’s proposal.

Under the joint venture, the city government of Pasay will contribute the rights to reclaim in its municipal waters.

Pasay Harbor City Corp., meanwhile, will be responsible for financing all raw land reclamation works and expenses.

The project is expected to be completed within four years from issuance of notice to proceed.

Udenna Development Corp. is led by Davao-based businessman Dennis Uy, whose other companies include Phoenix Petroleum Holdings Inc., Chelsea Logistics Holding Corp. and Udenna Management and Resources Corp.

Ulticon Builders, meanwhile, is primarily engaged in general construction.

Established in 2005 and based in Beijing,  China Harbour Engineering Co. is involved in heavy construction projects.

This joint venture is the first transaction  involving a local government unit to be reviewed by the PCC.

PCC, the country’s anti-trust body, reviews mergers and acquisitions to ensure such would not go against the promotion of consumer interest.

So far, PCC has approved 184 of the 196 merger transactions received from local and international companies, and blocked one anti-competitive deal.

These transactions have a combined transaction value of P3.21 trillion.