PBMC and its foreign partners, China Team, Ipay Ltd., and WLPG Pte. LTd., collectively known as Fifth Avenue Property Development Corporation, submitted its Securities and Exchange Commission registration as a consortium and a foreign bank's letter of commitment to the Capitol's Economic Enterprise Council.
Capitol's consultant on information, organization and management, Atty. Pablo John Garcia, yesterday said the consortium presented a letter of commitment from DPS Hong Kong amounting to $US36 million. DPS, a duly licensed foreign bank, is one of the largest financial services groups in Asia.
Being a very well respected financial institution, Garcia said the concern to be addressed now is if the bank commitment really came from DPS.
As such, the EEC secretariat has been instructed to verify the matter.
"This is not the same as a local developer developing from his own money or using local bank facilities. This is fresh money coming in to the country so this is a very positive development and we hope this will push through," he told reporters yesterday.
In its letter of commitment, DPS Hong Kong certified that the said credit facility is ready to finance for the development of a 2.8564-hectare Capitol property in barangay Banilad and the said facility is fully backed by assets which are free from any liens and encumbrances and which come from legitimate sources.
"And so this puts to rest all doubts as to the financial capacity of the consortium," Garcia said.
The technical working committee of the said Capitol project composed of the members of the EEC as well as representatives from the consortium yesterday met "to hammer out the details of this deal."
Garcia said it is expected that within a three-week period they would be able to come up with the first draft of the deal, as Governor Gwen Garcia wants to proceed with the project immediately.
Shortly after PBMC quoted the highest bid to Capitol-owned Banilad property for commercial use under a Build-Transfer-Operate scheme last May 10, questions were raised on its financial capability after reportedly having failed to pay its financial obligations with the Metropolitan Bank and Trust Company.
However, PBMC, the local partner of the consortium and which actually participated in the said public bidding, insisted they were able to comply with the revised rehabilitation plan in paying its financial obligations to the Metrobank. - Cristina C. Birondo