Vol. XXI, No. 175 [ Business World Online ]
Tuesday, April 08, 2008 | MANILA, PHILIPPINES
STATE-RUN Bases Conversion Development Authority (BCDA) will not bid out a multibillion-dollar real estate project in Fort Bonifacio, Taguig and is instead trying to convince local property developers to partner with China’s Shimao Property Holdings Ltd.
Road at the Bonifacio Global City in Taguig.
The Shanghai-based property developer had promised to invest $2-$4 billion in a high-end hotel and mixed-use buildings in the area as early as last year, but the government rejected its proposal in the absence of guidelines on joint ventures.
An industry source said the BCDA will wait for the guidelines to be issued by the National Economic and Development Authority (NEDA) instead of inviting bidders for the projects to make sure the country could win Shimao’s promised investments.
The BCDA, which oversees the disposition and development of former military lands, had spoken with top property firm Ayala Land, Inc. for a joint venture with Shimao, the source said. The BCDA is planning to talk to Andrew Tan’s Megaworld Corp. as well, said the source, who wished to remain unnamed.
BCDA Vice-President Aileen Zosa declined to talk about Shimao, but said the agency would issue a statement within the week. Ayala Land and Megaworld officials could not be reached for comments.
"BCDA is taking a second look at this. If one of our local players enters a joint venture with Shimao, it will have an entirely new tact. BCDA is talking with the Ayala group if it’s willing to start exploratory talks with Shimao," the source said.
Last week, President Gloria Macapagal-Arroyo announced that Shimao was proceeding with its investments. The announcement came after she met with Shimao officials during a trip to Hong Kong for an investment conference.
Malacañang said Shimao had lined up two projects in the Philippines — a hotel complex in Fort Bonifacio in Taguig and a resort in Calicoan Island in Eastern Samar.
In March, Ms. Zosa said the BCDA was encouraging Shimao to take part in the public bidding because of its financial expertise and muscle to enhance the Bonifacio Global City. She said the government was not shutting its doors on the firm and wants it to come here.
"NEDA has yet to issue the guidelines, but this could be a fresh beginning for Shimao," the source said.
Last month, the BCDA rejected Shimao’s unsolicited proposal to develop an eight-hectare property in North Bonifacio after the NEDA failed to issue guidelines on joint ventures.
The rules would have included a Swiss-challenge process for unsolicited proposals. A Swiss challenge is a form of public procurement that requires an agency that has received an unsolicited bid for a public project to publish the bid and invite third parties to match or exceed it. — Bernardette S. Sto. Domingo
_____________________________________________________________________
