BACOLOD CITY, Philippines — The Commission on Audit has approved the contract, but Ayala Land Inc. (ALI) is still “disengaging” from its P6-billion project development on the 7.7-hectare prime property of the Negros Occidental provincial government in this city.
ALI Corporate Communications head Jorge Miguel Marcó, in a statement released to the media on Friday, said: “We welcome the news that the COA Central Office has approved the deed of conditional sale (DCS) and contract of lease (COL) between the Negros (Occidental) provincial government and ALI in relation to the Capitol property. We note, however, a pending case at the (Bacolod) Regional Trial Court Branch 50 against the award of the property which could be elevated to higher courts.”
The COA approval came after 14 months, and ALI maintained its intention to “discuss a mutual disengagement with the Negros (Occidental) provincial government,” Marcó wrote, adding that the company “thanked the people and the provincial government, the governor and all other stakeholders for their continued support.”
ALI instead is now focusing and accelerating the development of its 200-hectare North Point project” in Talisay City, the neighboring city of Bacolod. “We believe that the North Point project, because of its size and scale, will promote more employment and business activity in the province,” Marco said.
SM Prime Holdings Inc (SMPHI), the rival bidder to the property, has filed a case against the members of the Capitol’s committee on awards and disposal of real properties and key provincial officials, for awarding the contract to ALI. SMPHI insisted that it is the rightful winner of the bid to lease and purchase the 7.7-hectare property.
At the hearing of SMPHI case in court, assistant Provincial Legal Officer Mary Ann Manayon–Lamis submitted a copy of the COA decision approving the provincial government’s land deal with ALI as part of its evidence. She said that the issues ruled by the COA were similar to those raised by SMPHI in court.
The sale contract states that ALI will purchase from the provincial government 3.6587 hectares of land worth P750 million subject to an initial payment of 50 percent, with the balance to be paid on a quarterly basis over a one-year period.
The lease contract, subjected to a contract review, involved 4.0481 hectares at P2,955,133 a month, with rent increasing at 10 percent every five years. ALI will deposit P35,461,356 covering one year rent. (FREEMAN)