Reclamation row far from over

THE CONTEST for a multibillion-peso reclamation project in Pasay is far from over given an apparent division within the city government.

The city council on Wednesday passed a resolution recalling its approval of SM Land, Inc.’s P54.5-billion unsolicited proposal to reclaim 300 hectares of land. The city’s Public-Private Partnership Selection Committee (PPP-SC), however, declared the deal would push through.

"We are proceeding with the project," city legal officer Severo C. Madrona, Jr., who sits as PPP-SC vice-chairman, in a interview yesterday. "We have to ignore it (the resolution), but we will write them (the city council) to clarify each point."

SM Land said it could go to the courts given the city council’s move, which rival developer Ayala Land, Inc. welcomed.

"SM Land opines that there are legal remedies available and SM Land will not hesitate in pursuing such recourse if the council insists on this course of action," the company said in a statement.

Dave L. Rafael, the property developer’s senior vice-president, added: "We don’t want to delve on the motives behind why the city council is now belatedly withdrawing its support, but frankly, they were ill-advised."

City council members were not immediately available for comment.

Ayala Land corporate secretary Solomon M. Hermosura, for his part, said city council’s move was "in the right direction."

Mr. Madrona, however, said the "agreement is a perfected contract. We complied with all applicable laws, rules and regulations and it was ratified by the city council."

In Resolution 3059, Series of 2013, issued earlier this week however, the council recalled three prior decisions allowing the reclamation project to move forward. These were Resolution 3040, which allowed the PPP-SC to proceed with the opening of competing proposals; Resolution 3046, which allowed Mayor Antonio G. Calixto to sign the agreement with SM Land; and Resolution 3049, which ratified the award.

With no counterproposals having been submitted by a Nov. 4 deadline, the PPP-SC granted the contract to SM Land last Nov. 15.

This week’s Resolution 3059 was passed after hearings -- for the purpose of crafting new PPP rules -- where Ayala Land and S&P Construction Technology and Development Co. questioned the bidding process.

Ayala Land argued that a 2013 version of National Economic and Development Authority (NEDA) joint venture guidelines, which give challengers more time to prepare, should have been used instead of the 2008 set. S&P Construction, meanwhile, claimed the Build-Operate-Transfer law should have been applied and that bid documents lacked details.

In the Resolution 3059, the city council said "the issue raised by both Ayala Land and S&P Construction cast serious doubt on the legality of the proceedings made with respect to the ... reclamation and development project."

Mr. Madrona denied this, saying: "The 2013 version of the NEDA JV Guidelines is still being reviewed by the PPP Center."

"We don’t want to be the ‘guinea pig’ for these guidelines."

Asked to comment on the lack of project details, Mr. Madrona replied: "Those claims are not true. It was clearly stated there what the competitive challenger needs to do."
 
source:  Businessworld