CDC set to privatize Mimosa leisure estate

CLARK FIELD, Pampanga — Seven years after the government’s take over of the 256-hectare Mimosa Leisure Estate here, the Clark Development Corp. (CDC) is preparing for its privatization by next year.

The CDC said it is ready to bid out the estate for no less than P1.6 billion, including the arrears of Mimosa Leisure and Resort Corp. (MLRC) with creditor banks, the CDC, the Bureau of Internal Revenue (BIR) and the Philippine Amusement and Gaming Corp. (Pagcor).

The CDC said that six foreign and four Filipino firms have already signified intent to participate in the bidding, but more are expected to list up until January next year. The names of the firms were not immediately revealed.

The winner in the bidding is expected to be revealed by the CDC bids and awards committee headed by CDC executive vice president Jose Victor Luciano late next year.

CDC officials said it would take about six months before the Mimosa estate could be awarded to the winner.

CDC chief executive officer and president Antonio Ng assured Mimosa employees that their tenure would be assured under the new management.

In 1998, the CDC terminated its contract with MLRC, headed by former tourism secretary Jose Antonio Gonzalez after the latter failed to comply with the CDC’s demand for payment of alleged back rental and other dues worth about P426 million.

MLRC then insisted that it was entitled to a tax holiday which was granted when the estate was established in 1994 when most of Clark were still covered with ashfall from Mt. Pinatubo.

A settlement was reached in 1999, mandating the MLRC to pay the CDC only P325 million, but the firm also failed to comply with this.

The CDC has been managing Mimosa since its take over of the estate. It has a golf course, a five-star hotel, villas, and restaurants.