PRA seeks legal opinion on Pasay City, SM Land jv

MANILA, Philippines - State-run Philippine Reclamation Authority (PRA) has asked the Pasay City government to secure validating legal opinion from government agencies overseeing local government units on the proposed joint venture with SM Land Inc. for the Manila Bay reclamation project.

PRA general manager and chief executive officer Peter Anthony Abaya has asked Pasay City Mayor Antonino Calixto to secure opinions from the Department of Justice (DOJ) and the Department of Interior and local Government (DILG) on the planned 300-hectare reclamation project in Manila Bay.

In a letter dated Dec. 10, Abaya gave the directive as the 14-member Pasay City Council issued a resolution withdrawing support for the project after property giant Ayala Land Inc. and S&P Construction Technology questioned the selection process conducted by the city government’s Public Private Partnership – Selection Committee (PPP-SC).

“May we state for the record that PRA is not in a position to conduct a legal review of the Pasay City Council Resolution as this falls under the jurisdiction of either the DILG or DOJ,” Abaya stated in the two-page letter.

SM Land of retail and banking magnate Henry Sy has offered to spend P54.5 billion to undertake the reclamation project over a seven-year period. Calixto and SM Land signed a joint venture agreement to undertake the project last Nov. 15.

“This is precisely why this Authority is requesting the City to secure a validating legal opinion from the said agencies which have oversight functions over LGUs,” he said.

According to him, the agreement between the city government and SM Land could not be reviewed by the Office of the Government Corporate Counsel (OGCC) that has jurisdiction over government-owned and controlled corporations (GOCCs) and not LGUs.

“The OGCC likewise does not have jurisdiction over LGUs as its mandate is to serve as legal counsel for GOCCs,” he added.

 Abaya also cautioned the city government in dragging them in what it called a “intra-LGU” issue following the PPP-SC’s statement that the joint venture agreement was already reviewed by the PRA.

“We are taking exceptions to the above statements coming from your PPP-SC and requests that such statements be clarified to all concerned to avoid confusion and the unnecessary involvement of this Authority to what is presently an “intra-LGU” issue,” he said.

The PRA also reminded the City Mayor that the PRA has already been following an approval protocol which requires their recommendation of all reclamation projects to the National Economic and Development Authority (NEDA) Board for approval as instructed by the NEDA Infrastructure Committee.