Posted on September 14, 2012 06:24:32
PM [ BusinessWorld Online ]
By Nanette L. Guadalquiver,
Correspondent
BACOLOD CITY -- Property giant Ayala
Land, Inc. (ALI) has dropped plans for a P6-billion development project over
the failure of the Negros Occidental provincial government to deliver on the
proposed site.
Gov. Alfredo G. Marañon, Jr. announced
in a press conference on Friday ALI’s decision to withdraw from the planned
Capitol Civic Project, which is the subject of a legal dispute with SM Prime
Holdings, Inc.
ALI’s withdrawal was a big loss for
the province and “sends a very bad signal to other investors,” he said.
“This is a very sad day for Negros and
Bacolod City. The Ayala Land wrote me a letter yesterday [Thursday] withdrawing
their project at the Capitol.
Negros lost a golden opportunity of a
6-billion investment and thousands of job opportunities,” the governor said.
Mr. Marañon furnished reporters a copy
of the September 13 letter sent to him by Emilio J. Tumbocon, ALI senior
vice-president and group head for Visayas-Mindanao and Superblock Projects.
In his letter, Mr. Tumbocon said the
company is unable to pursue the project due to delays and legal disputes that
continue to threaten its implementation.
“In light of this, and 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 mutual disengagement from the project,” he told the governor.
The provincial government awarded the
7.7-hectare property for more than 3.5 billion to ALI in July last year. The
deed of conditional sale for the 3.6-hectare property and contract of lease for
the 4.05-hectare property were submitted by the provincial government to the
Commission on Audit (CoA) also in July last year.
Both contracts were signed by the
province and ALI and subsequently ratified by the provincial board in April
this year as required by the CoA. The commission, however, has not approved the
deal.
SM Prime, which has insisted that it
won the bidding, has filed cases before the Court of Appeals and the Regional
Trial Court in Bacolod against the governor and members of the provincial bid
and awards committee. These are still pending in court.
ALI’s decision to drop the project
came even after the firm informed the governor early this year that it has
started drafting plans and engineering studies.
Mr. Tumbocon, however, said ALI
remains committed to investing in Negros Occidental. The group has an ongoing
mixed-used development in the 200-hectare North Point in neighboring Talisay
City.
Mr. Marañon said that since ALI will
no longer pursue its project, he will create a special committee to study and
plan the use of the 7.7-hectare property.
Mary Ann Manayon-Lamis, assistant
provincial legal officer, earlier said the provincial government can proceed to
lease the 4.05-hectare property for 2.75 billion in the next 50 years as the
transaction does not require an approval from the CoA.
CoA Circular 92-386 and the Local
Government Code of 1991 cover only the review of a contract that pertains to
sale or disposal of properties, she noted.
_____________________________________________________
