Pasay undecided on Manila Bay project proposals

MANILA, Philippines - The Pasay City government remains undecided on extending the deadline for the submission of counter-proposals on the proposed 300-hectare reclamation project along Manila Bay worth P54.5 billion by SM Land Inc.

Pasay City spokesman Jonathan Malaya told The STAR that the city government’s bids and awards committee is still studying the letters sent by property giant Ayala Land Inc. (ALI). The BAC convened at around 6 p.m. yesterday.

Malaya said three other companies – including State Properties Corp., chaired by Washington Sycip; GT Land Development of businessman George Ty; and S&P Technology – also bought documents for the submission of counter-proposals.

The project is the subject of a tug-of-war between SM Land Inc. of retail magnate Henry Sy and ALI, which asked Mayor Antonino Calixto in a letter yesterday to relax the terms of the bidding, including lowering the required minimum net worth of P50 billion as well as the provision requiring at least a 120-hectare reclamation project preferably within Manila Bay.

The property giant also asked the city government to extend the Nov. 4 deadline by at least 60 days.

The Philippine Reclamation Authority (PRA) said it has forwarded a letter to the Pasay City government in August about a proposed government center project in the same area.

The Sy-led firm offered to fully finance the project, including the costs of all necessary permits and clearances from government agencies as well as other expenses to comply with all government and legal requirements.

Of the total land to be reclaimed, SM Land said 51 percent or 153 hectares – including roads and open spaces – would be allocated to the Pasay City government and the PRA.

New rules

ALI chief operating officer Bernard Dy said that Pasay City adopted the National Economic Development Authority’s 2008 guidelines on joint ventures in the processing of the P54-billion project. These guidelines have been replaced by a 2013 version, he said.

Dy pointed out that the 2013 guidelines give competing companies at least 120 calendar days to submit a counter-proposal.

Under the new regulations, bidders will also undergo a modified competitive challenge that does not give the original proponent the right to match, Dy said.

The Pasay City last week rejected a request from ALI to be given 60 more days to challenge the SM Group’s offer to develop the controversial 300-hectare bayside property into the capital’s new entertainment and business district, citing a Department of the Interior and Local Government legal opinion that gives local governments the right to set their own rules.

Dy also cited a paid advertisement from the PRA last week, saying that no approval has been given for the Pasay reclamation project. The paid ad also disclosed that as early as August the PRA had advised Pasay City about a proposed government center project that would cover the same area.

“As the Pasay project would now be in possible conflict with national priority plans, the matter will need to be clarified prior to any bid,” Dy said.