Ayala Land eyes P6B investment in Bacolod

BACOLOD CITY, Philippines — Ayala Land, Inc. is planning to invest P6 billion for a convention center, BPO (business process outsourcing) centers, hotels, and shopping mall on the 7.7-hectare property of the Negros Occidental provincial government that is currently up for bidding, Governor Alfredo Maranon Jr. said Monday.

SM Prime Holdings, on the other hand, is planning to invest P2.5 billion for a convention center, two hotels, and shopping centers on the same property, the governor said.

Maranon said the results of the bidding would be to the best interest of the provincial government and the people of Negros Occidental. "This will be the biggest investment in the province so far. It will definitely change the landscape (of the province). It must conform to the culture and aesthetic beauty of the Negrosanon," he said.

The governor said that the winning bidder will be determined on which company can make the better offer for both the technical and financial criteria.

Ayala and SM are the only bidders so far. The first bidding on June 24 and the second bidding on July 1 were both declared "failed" by the Committee on Awards and Disposal of Property chaired by Maranon.

Other members of the committee were provincial administrator Enrique Pinongan, assistant provincial legal officer Mary Ann Lamis, provincial engineer Ernie Mapa, provincial assessor Merlita Caelian, provincial accountant Lucille Pines, and Provincial Board Member Patrick Leonard Lacson.

On the first bidding, only Ayala Land submitted its bid, and its papers were returned unopened for the second bidding schedule.

But 3rd District Rep. Albee Benitez, a friend of the Sy family that owns SM Prime, argued that since SM Prime was the first to submit last month an "unsolicited" intent to purchase or lease some of the portions of the 7-hectare property, its proposal should be recognized as a formal bid by the provincial government.

On the second bidding, SM Prime and Ayala Land both submitted their respective bid. But Maranon said there were many technical reasons why the second bidding failed, one of them was that there must be a minimum of three bidders otherwise the bidding is invalid.

Maranon said that since the second bid failed, both Ayala Land and SM Prime Holdings have both agreed for a negotiated bid scheduled on July 15.

The governor did not disclose the amount being offered by both Ayala Land and SM Prime Holdings, however, he told the media of the investments being proposed by two companies.

Ayala Land Negros branch head Therese Borromeo and SM City Bacolod mall manager George Jardiolin visited Maranon at the Provincial Capitol yesterday but they refused media interviews.

Maranon also added that of the total 7.7068 hectares that are up for bidding, 3.6 hectares will be for sale, and the 4.1 hectares will be for lease. Those for sale are on the back portion of the Capitol building, while those for lease are from the Philippine National Bank down to North Capitol Road, to Aguinaldo St, and to Gatuslao St. until the National Food Authority building. — THE FREEMAN