ALI to break ground on Negros project

BACOLOD CITY, Philippines  – Negros Occidental Governor Alfredo Maranon Jr. said Ayala Land Inc. (ALI) will break ground this week on the 40,481-square meter property it is leasing from the provincial government, despite a contract still being reviewed by the Commission on Audit (COA).

“I think by this week signboards will be put up, they (ALI) will start the project on the leased section of the property, he said.

The property, located at the back of the Provincial Capitol and portions near the Philippine National Bank in Bacolod, is part of the 7.7-hectares property awarded to ALI, 36,587 square meters of which are under the contract for the deed of conditional sale still pending before COA.

In his manifestation with appeal for resolution submitted to COA, Maranon stressed the provincial government will be implementing the contract of lease anyway, since only the sale or disposal is subject to COA review and approval under the provisions of Sec. 380 of Republic Act 7160 (Local Government Code of 1991) and Sec. 181 and 197 of COA Circular 92-386.

Mary Ann Manayon-Lamis, assistant provincial legal officer, said the Local Government Code of 1991 mandates a COA review only for disposal of real properties, not of lease.

On July 22, 2011, the provincial government submitted to COA the deed of conditional sale and contract of lease for the sale and lease of its more than 7.7-hectare prime property in Bacolod to ALI.

Even as the provincial capitol is not compelled to submit the contract for lease to COA, the governor explained that they submitted it in “good faith, not to seek approval for the said transaction, but to afford COA (the) opportunity to assess the impact of the proposed project in its entirety on the economic growth and development of the province of Negros Occidental and the city of Bacolod, in the spirit of full transparency.”

In his manifestation, Maranon he is appealing to COA to resolve “at the soonest possible time” its review on the contract of the sale of its 3.6-hectare property to ALI.

Maranon wrote that the provincial government “most respectfully prays” of COA for the “consideration and resolution of the deed of conditional sale and Supplement to the Deed of Conditional Sale” for the “interest of justice, equity and public service.”

Based on the contracts, ALI will purchase from the provincial government 3.6587 hectares of land worth P750 million subject to an initial payment of 50 percent, with the balance to be paid on a quarterly basis over a one-year period.

To be leased is 4.0481 hectares at P2,955,133 a month, with rent increasing at 10 percent every five years. ALI will deposit P35 million covering one year rent, the contracts stated.

Manayon-Lamis said that the provincial government will earn from ALI P2.7 billion over the 50-year lease period, and P750 million from the sale package, or a total of P3.5 billion.

Earlier, Maranon expressed optimism COA will eventually approve the contract, since they have already complied with all the requirements set by the commission.

He earlier said he sees no hindrance to the approval of the contract since it was already signed by him and by ALI officials.

The governor even set the date of its target approval, first on May 22, then on June 7, only to learn that COA did not deliberate on it because it was not included in the agenda.

Maranon said that as a partner in government service, COA should heed the call of the people of Bacolod and Negros Occidental, represented by their government officials and private sectors, who have supported the project, and believe that it could be an instrument for development and progress.

Maranon said this is shown in the manifesto of support of the 32 towns and cities of Negros Occidental, the Vice Mayors League of the Philippines – Negros Occidental Chapter, the Philippine Chamber of Commerce and Industry, Metro Bacolod Chamber of Commerce and Industry, Southern Negros Filipino Chinese Chamber of Commerce and Industry, Northern Negros Filipino Chinese Chamber of Commerce and Industry, the Labor Sector Representatives, and the Integrated Bar of the Philippines—Negros Occidental Chapter.