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SM wins Parañaque reclamation

By Jenniffer B. Austria | Aug. 27, 2014 at 12:01am [ ]

Parañaque City has accepted the proposal of the SM Group of tycoon Henry Sy to develop and reclaim 300 hectares of land in Manila Bay within the city’s jurisdiction.

The public-private partnership selection committee of Parañaque City, in a notice published in one newspaper, said only SM Land Inc. had satisfactorily submitted a feasibility study containing all the required components on the proposed reclamation project.

The Parañaque reclamation is the second of such project awarded by a local government unit to the SM Group. The Pasay City government in December last year agreed to team up with the SM group over a proposed P54.5-billion reclamation project in Manila Bay covering 300 hectares.

SM Land has merged with SM Prime Holdings Inc. to form the biggest property company in the Philippines.

The recommendation to accept SM proposal gave SM Land the “original proponent” status, Parañaque said in a legal notice. The other proponent, S&P Construction Technology Development Corp., failed to submit a complete feasibility study despite due notice, it added.

The Pasay committee said Parañaque City and SM Land could now begin detailed negotiations on the terms and conditions of the reclamation project as well as the technical and financial aspect of the jobs.

The project will be subject to a competitive challenge to determine the best beneficial joint venture agreement to Parañaque, the committee said.

Other interested parties can obtain tender documents for the competitive challenge proceedings within 30 days from the publication of the notice.

Parañaque created the  public-private partnership selection committee in October 2013 to study the proposals and expressions of interest made by several companies  on Manila Bay reclamation projects.

In September, SM Land submitted an unsolicited proposal to Parañaque Mayor Edwin Olivarez on the reclamation project, which he promptly referred to the City Council.

Two other companies, Ayala Land Inc. and S&P Construction, wrote Olivarez to express their interest in any reclamation project to be undertaken in the city.

The Philippine Reclamation Authority earlier said no reclamation activity could legally proceed without the approval of the National Economic and Development Authority board.

The acceptance by the local government units of Parañaque and Pasay of SM group’s offer to develop and reclaim a combined 600 hectares of land will consolidate the company’s planned developments in the Manila Bay area.

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