SM bay project gets Pasay council’s nod

MANILA, Philippines - SM Land Inc. of retail and banking magnate Henry Sy finally got the green light from the Pasay City council to push through with the proposed P54.5-billion Manila Bay reclamation project.

The council voted 8-5 yesterday morning in favor of a resolution for the continuation of the reclamation project awarded to SM Land through a joint venture agreement with the Pasay City government.

The new resolution was issued barely two weeks after the council unanimously approved Resolution 3059 recalling its previous rulings in connection with the project due to irregularities in the bidding process, as claimed by property giant Ayala Land Inc. and S&P Construction Technology.

SM Land offered to reclaim and develop approximately 300 hectares of the Manila Bay’s Pasay coastline.

The Sy firm offered to fully finance the project, including the costs of all necessary permits and clearances from government agencies as well as other expenses to comply with all the government and legal requirements.

Of the total land to be reclaimed, SM Land said 51 percent or 153 hectares – including roads and open spaces – would be allocated to the Pasay City government or the Philippine Reclamation Authority (PRA).

The property development arm of the Sy empire committed to finish the project within seven years from the issuance of the notice to proceed by the Pasay City government.

Pasay Mayor Antonino Calixto signed a joint venture agreement with SM Land last Nov. 15 and the agreement was submitted to the PRA last Nov. 19.

However, the Pasay City council issued Resolution 3059 withdrawing support for the project due to complaints filed by Ayala Land and S&P Construction.

Arvin Tolentino, city council minority floor leader, said the earlier resolution recalling the awarding of the project to SM Land was one way to protect the council and the city government from legal implications that other stakeholders may resort because of the alleged irregularities.

Tolentino, one of the city council members who objected to the resolution, expressed fears that the city has opened its doors to legal battles because of the new resolution.

He reminded his colleagues of the content of the letter sent to Calixto by the PRA asking the local government seek a legal opinion from the Department of Justice or the Department of the Interior and Local Government (DILG) in awarding reclamation projects.

For his part, Councilor Richard Advincula reminded the rest of the council that the PRA may issue a cease and desist order once it is proven that there are irregularities in the bidding process of the project undertaken by the Public-Private Partnership Selection Committee.

“The selection committee that was created has no legal existence because the supposed member of the committee was not informed of the meetings,” he added.

He also stressed that the resolution is a direct violation of Executive Order 146, which delegates the power of the President to approve reclamation projects in the country to the National Economic and Development Authority.