ALI recalls P6-B offer to develop Negros lot

Bacolod City – Ayala Land Inc. (ALI) has withdrawn its P6-billion proposed development project in the 7.7-hectare property of the Negros Occidental provincial government in this city.

The Deed of Conditional Sale and Contract of Lease was awarded by the provincial government to Ayala Land last July 20, 2011, but was still pending with the Commission on Audit (COA).

In his letter to Governor Alfredo Marañon Jr. dated Sept. 13, 2012, Emilio Tumbocon, Ayala Land senior vice president and group head for the Visayas-Mindanao and Superblock Projects, said, “After more than a year since the property was awarded to Ayala Land for development, we regret that we are unable to pursue the project on account of the delays and legal disputes that continue to threaten its implementation, through no fault of Ayala Land.”

“In light of this, and considering that the provincial government was unable to fulfill its obligation to deliver the property to us under the terms of the agreement, we are open to discussing with you a mutual disengagement from the project,” Tumbocon wrote further.

“It’s a very sad day for Negros Occidental and Bacolod… It’s a big, big loss to our people. Negros Occidental has lost billions of projects and thousands of job opportunities,” Marañon said yesterday.

He said ALI’s withdrawal is a major economic setback to the province, and “a bad signal for future investors.”

Dubbed the Capitol Civic Center, the project is designed to be an integrated mixed-used civic and commercial district and envisioned to be the growth center of Negros Occidental.

The governor blames “politicking” as the cause of delay in the COA. “Definitely, somebody is trying to block the COA approval of the project,” he stressed.

Previous media reports said the husband of Ma. Gracia Pulido-Tan, chairperson of COA, is giving legal services to Henry Sy and his family, who owns SM Prime Holdings, the rival bidder to the said property and is questioning in courts the contracts granted to Ayala.

Tan, however, had inhibited herself from hearing the case.

Based on the contract, Ayala Land will purchase from the provincial government 3.6587 hectares of land worth P750,033,500 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. Ayala will deposit P35,461,356 covering one year rent, the contracts stated.

The provincial government will earn from Ayala Land P2.7 billion over the 50-year lease period, and P750 million from the sale package, or a total of P3.5 billion.

Maranon earlier 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.

Meanwhile, the governor said he is creating a committee to re-study the 7.7-hectare property, including the possibility of re-bidding it.