In Negros Occidental Ayala Land withdraws P6B project

BACOLOD CITY , Philippines  — Ayala Land, Inc. has withdrawn its P6-billion proposed development project in the 7.7-hectare property of the Negros Occidental provincial government in this city.

The deed of conditional sale and contract of lease have been awarded by the provincial government to Ayala Land on July 20, 2011 but are still pending until now for approval at the Commission on Audit.

In his letter to Governor Alfredo Marañon Jr. dated last Sept. 13, Emilio Tumbocon, Ayala Land senior vice president and group head for the Visayas-Mindanao and Superblock Projects, wrote: “After more than a year since the property was awarded to Ayala Land for development, we regret that we are unable to pursue the project on account of the delays and legal disputes that continue to threaten its implementation, though no fault of Ayala Land.”

He further told the governor that “considering that the provincial government was unable to fulfill its obligation to deliver the property to us under the terms of the agreement, we are open to discussing with you a mutual disengagement from the project.”

Marañon yesterday said: “It’s a very sad day for Negros Occidental and Bacolod … It’s a big, big loss to our people. Negros Occidental has lost billions of projects and thousands of job opportunities.” He added that Ayala’s withdrawal was a major economic setback to the province, and “a bad signal for future investors.”

The governor blames “politicking” as the cause of delay in the COA. “Definitely, somebody is trying to block the COA approval of the project,”

The project, dubbed the Capitol Civic Center, is designed to be an integrated mixed-used civic and commercial district and envisioned to be the growth center of Negros Occidental.

Based on the contracts, Ayala Land will purchase from the provincial government 3.6587 hectares of land worth P750,033,500 subject to an initial payment of 50 percent, with the balance to be paid on a quarterly basis over a one-year period. Also to be leased is 4.0481 hectares at P2,955,133 a month, increasing at 10 percent every five years, with Ayala to deposit P35,461,356 covering one year rent. The provincial government will thus earn P2.7 billion over the 50-year lease period, and P750 million from the sale package, or a total of P3.5 billion.

Marañon earlier said that as a partner in government service, COA should heed the call of the people of Bacolod and Negros Occidental, represented by their government officials and private sectors, who have supported the project, and believe that it could be an instrument for development and progress.

The governor proved this in the manifesto of support of the 32 towns and cities of Negros Occidental, the Vice Mayors League of the Philippines-Negros Occidental Chapter, the Philippine Chamber of Commerce and Industry, Metro Bacolod Chamber of Commerce and Industry, Southern Negros Filipino Chinese Chamber of Commerce and Industry, Northern Negros Filipino Chinese Chamber of Commerce and Industry, the Labor Sector Representatives, and the Integrated Bar of the Philippines-Negros Occidental Chapter.

Marañon further said he will immediately create a committee to restudy the 7.7-hectare property, including the possibility of rebidding it.  (FREEMAN)