Ayala welcomes Pasay move to defer decision on reclamation project

MANILA, Philippines - Property giant Ayala Land Inc. has welcomed the Pasay City’s move to defer a decision on the controversial 300-hectare reclamation project along Manila Bay.

“ALI sees as a welcome development the news that Pasay City deferred its decision on the Pasay reclamation project to resolve pending issues,” the property firm said in a statement.

The Pasay City deferred to Nov. 14 its reply to questions raised by ALI , GT Capital and S&P Tehcnology with respect to the bidding of the 300-hectare property.

ALI president Antonino T. Aquino said the company is seeking a transparent bidding process on the reclamation project, noting that the guidelines used by the Pasay government have already been superseded by new regulations.

According to ALI, Pasay City adopted the National Economic and Development Authority’s  2008 guidelines on joint ventures  in the processing of the reclamation project.  These guidelines, ALI said, have already been replaced by a 2013 version.

“We are completely supportive. We want to make sure the right studies are done and that the project serves the best intention of the national government in terms of maiming the amount of revenues it can raise out of it,” Aquino said.

The 2013 guidelines give competing companies at least 120 calendar days to submit a counter proposal.  Bidders will also undergo a modified competitive challenge which does not give the original proponent the right to match.

“This is no ordinary project. It is a considerable 300-hectare reclamation project that should be carried out with prudence to avoid potential issues that might result from using the inoperative 2008 NEDA joint venture guidelines. If Pasay City adopts the 2013 NEDA joint venture Guidelines, ALI will participate,” the company 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 bayside property into the capital’s new entertainment and business district. 

In junking ALI’s request, the Pasay City cited a Department of Interior and Local Government legal opinion that gives local governments the right to set their own rules.

ALI likewise cited a paid advertisement from the Philippine Reclamation Authority saying no approval has been given for the Pasay reclamation project. 

The paid ad disclosed that in August, the PRA had already advised Pasay City about a proposed government center project which pertains to the same area in its jurisdiction.

ALI’s interest in the project triggered a bidding war with perennial rival SM Group, which offered to reclaim and develop the property for P54.5 billion over a seven-year period.