Mimosa Leisure Estate Bidding: CDC withdraws award to Fil-Korean venture

CLARK FIELD, Pampanga — The Clark Development Corp. (CDC) withdrew yesterday the award it gave to a Korean-Filipino venture for the operation and management of the sprawling Mimosa leisure estate here after the company allegedly failed to comply with some requirements that were agreed upon.

"The CDC board has decided to revoke the award to NTM Jin Hung joint venture of South Korea and consider the Mimosa bidding a failure," CDC president and chief executive officer Antonio Ng said.

He said the NTM failed to sign a lease agreement with a minimum upfront payment within the prescribed period specified in the terms of reference.

The NTM was supposed to pay the CDC P1 billion within 10 days after it got the Mimosa award last June 30, or 80 percent of its P1.65-billion bid for the 210-hectare tourism estate, excluding its commitment to also pay in advance land rentals for the next six months amounting to $1.05 million.

The cancellation of the award would also forfeit the NTM’s P26-million advance payment to the CDC.

Ng said the CDC’s decision to withdraw the award had the backing of the Office of Government Corporate Counsel (OGCC).

"Philippine bidding laws require strict compliance with the terms of reference prepared by the CDC.

Ng said the CDC’s bid and awards committee initially conducted a pre-bid conference attended by NTM and other bidders.

Fourteen bid bulletins were issued to the bidders, that were given a chance to make changes or clarify any provision in the terms of reference before the actual bidding.

"NTM did not raise any issue," Ng said.

The CDC has yet to announce a new bidding for the Mimosa leisure estate.

Ten companies initially expressed plans to bid for Mimosa, but only NTM Jin Hung was able to make it to the 2 p.m. deadline last May 22.

The other bidders earlier backed out or were disqualified, including the American firm Avenue Asia, which submitted its bid documents 15 minutes past the deadline.

However, Avenue Asia petitioned the CDC bids and awards committee to declare a failure of bidding.

Earlier, Angeles City Mayor Carmelo Lazatin told CDC officials that Sen. Lito Lapid had asked the Senate blue ribbon committee to look into alleged anomalies, including lack of transparency, in the bidding.

There were also allegations that a provision in the terms of reference, specifically on the Mimosa casino, was significantly changed only two weeks before the final bidding.

The CDC offered the minimum bid of P1.65 billion after consultations with four bank creditors of the Mondragon Leisure and Resorts Corp. (MLRC), which used to manage and operate Mimosa.

The CDC ousted MLRC from Mimosa in 1999 after it allegedly failed to pay the state-run corporation some P469 million in land rental arrears. The MLRC reportedly also owes the four banks some $2 billion.

The P1.65-billion minimum bid was to cover some P1 billion which the MLRC owes the banks, while the rest would cover its debts to the CDC, the Bureau of Internal Revenue, and the Philippine Games and Amusement Corp. — Ding Cervantes