Development of Broadcast City set

MANILA, Philippines - The International Broadcasting Corp. (IBC TV-13) signed last March 24, 2010 a joint venture agreement (JVA) with RII Builders, Inc./Primestate Ventures, Inc. for the development of a commercial and residential complex on IBC’s sprawling 4.1-hectare Broadcast City property in Diliman, Quezon City.

Signing on behalf of IBC were supervising secretary Conrado A. Limcaoco Jr., board chairman Joselito Yabut, and president & CEO B. Javier. On the side of RII, Primestate president & CEO Architect Romero signed.

The JVA was initiated after a final review and clearance by the Presidential Commission on Good Government (PCGG), which has administrative control over the assets of IBC, and the Office of the Government Corporate Counsel (OGCC), IBC’s standing counsel.

“This is the culmination of a long series of rigorous and careful negotiations begun in May last year, formalized with RII’s submission of a Letter of Intent on June 1, 2009, and finally concluded in March 2010,” says Yabut.

In accord with the government’s rules on joint ventures embodied in Executive Order 423 and its guidelines, a Joint Venture Selection Committee (JVSC) composed of representatives from the NEDA, the OOGCC, the PCGG, the Commission on Audit, the Philippine Contractors Association, the Philippine Institute of Certified Public Accountants, and IBC was convened to evaluate RII’s unsolicited proposal, and subject it to a comparative challenge process, more commonly called a “Swiss Challenge.”

Notice of bidding for the challenge was published in a leading broadsheet on Feb. 9, 2010. A lone prospective challenger withdrew his bid after a close study of the Terms of Reference.

Under the JVA, RII will construct a new Broadcast Center that will house IBC and its sister network RPN-9 on 5,000 square meters, and build commercial and housing units on the remaining 3.6 hectares.

IBC board director Bob Del Rosario expressed optimism about the deal, stating, “The Joint Venture will increase the value of the corporation and its real property, and in the event of privatization, government itself will benefit.”

Overall positive impact on the network is also foreseen, as HRD manager Corazon Reboroso says, “The JV will improve the image of the network and raise the self-esteem of the employees.”

A substantial cash component will be advanced by RII from the share of IBC in the project’s earnings. These monies will be allocated to the settlement of unpaid wage and non-wage benefits due to IBC employees.

Employees of IBC, represented by their unions, signed the KVA as witnesses, as well as Memoranda of Agreement (MOAs) with IBC Management that spell out the payment schedules for their unpaid wages and benefits. Initially, P100,000 has already been released to each IBC employee. A second tranche is due in June and a third in December.

‘We consulted the employees every step of the way and made it clear to them this was for their benefit and we would not enter into the joint venture without their consent and support,’” IBC president Joe Javier emphasized.

“This project is good for government, good for IBC and, more importantly, good for its employees,” IBC supervising secretary Dodi Limcaoco stressed. “The employees will be paiddd what has been long due them, IBC will have new offices and studios within a developed complex that will attract investors and even future buyers, and government will get a better price for IBC when it is privatized.”