The "win-win solution" proposed by Pasay City would reportedly cause PEA to cede as much as 18-hectare of prime reclaimed lot along Roxas Boulevard to the city government. The cost would reportedly be taken, from the P60 million land tax PEA owes to Pasay.
Pasay reportedly aims to convert the land into a site of "new and modern public facilities," that would include a "modern City Hall, a big public library, and other public service oriented facilities."
The prime lot Pasay is asking for is also being eyed as "the site of Metro Manila’s newest and most modern socio-eco-financial showpiece, the SM Mall of Asia, the biggest commercial complex in Asia," according to published data provided by the city government.
City Administrator Ernestina Carbajal said this compromise is still being negotiated.
The property sought from PEA would reportedly form the centerpiece of Pasay City Mayor Peewee Trinidad’s "long-term development program."
PEA was earlier saved from a potentially financially ruining tax obligation after then President Joseph Estrada decided to condone its tax liability in 1999 covering the period from the early 1990’s up to half of the year 2000. The condonation was made on the condition that PEA would pay the other half of its assessed total land tax for 2000 and the full amount in 2001 onwards.
Carbajal said PEA failed to meet these conditions.
Aside from PEA, Pasay identified its other national government-owned and controlled corporate tax delinquents as NAIA with P750 million and the Light Rail Transit compound with P395 million.
Pasay City is currently experiencing financial difficulties due to lower tax collection and a ballooning debt. The City government has already imposed cost-cutting measures and abstained from further monetary borrowings this year.
The belt-tightening measures are expected to extend up to next year with a lower City budget. The 2002 City budget is down P113 million or P1.183 billion compared to this year’s P1.296.