ALI, Campos group to invest P500 million in two infra projects

MANILA, Philippines - Ayala Land Inc. and the Campos Group will invest P500 million for the construction of two major infrastructure projects to improve access to the Bonifacio Global City, the Bases Conversion Development Authority (BCDA) said.

In a statement, BCDA president and chief executive Narcisso Abaya said that there is a plan by BCDA to facilitate the construction of two major infrastructure projects in partnership with the Ayala Land, Inc. and the Campos Group, the cost of which will be shouldered by the private sector.

The twin projects, which are expected to improve access from Bonifacio Global City to the eastern, northern and southern areas of Metro Manila and vice versa, have a combined project cost of P500 million, BCDA said.

As such, Abaya said that the administration of President Aquino could benefit from pursuing public-private partnerships (PPP) through the BCDA to boost the coffers of the cash-strapped government.

Abaya said PPP through government entities like the BCDA “provides a ray of hope to help augment the revenues generated by the government” amid the shortfall in the collection targets of the Bureaus of Internal Revenue and Customs for the month of July.

According to Abaya, BCDA is equipped with the experience and expertise to properly and profitably dispose of government assets within its jurisdiction. BCDA has raised P46.495 billion in disposition proceeds as of December 2009, he added.

Under the law, the bulk of the proceeds from the disposition of former military camps and base lands will go to the AFP Modernization Fund to cover the military’s replication and relocation expenses.

Recently, SM Land Inc. (SMLI) submitted an unsolicited proposal to develop a 33.1-hectare property in Fort Bonifacio. Under the offer, SMLI will give an upfront cash of P2 billion and P25.9-billion secured revenues over 20 years. On top of these, SMLI has committed to advance the replication expenses of military facilities of the Philippine Navy, the Philippine Marines and the Philippine Army, which are presently occupying the property.

Six other firms have already expressed interest in challenging the proposal of SM.