Bids to challenge SM in Manila Bay reclamation sought

MANILA, Philippines – The city government of Parañaque is seeking comparative proposals for the P50.2-billion ($1.12 billion)* Manila Bay reclamation and development project, which was proposed by SM Prime Holdings Incorporated.

Interested companies have until Monday, December 1, to submit their expressions of interest to submit comparative proposals, the public-private partnership selection committee (PPP-SC) of Parañaque said.

PPP-SC chairman Fernando Soriano said the committee and SM Prime have already completed negotiations under Stage 2 of the competitive challenge process for the 300-hectare project.

Interested companies should have a minimum capitalization of P50 billion ($1.11 billion), a credit line of at least P10 billion ($222.54 million), and should have undertaken and completed reclamation project of not less than 130 hectares, preferably within the Manila Bay area.

Interested proponents should also be able to prove that they could raise the total funding needed to complete the project within 8 years.

The Parañaque PPP-SC also wants interested bidders to adhere to the rules and not seek and obtain writ of injunction or prohibition or restraining order against the committee regarding the competitive challenge process and the award of the project.

After submission of expressions of interest, the companies would have until January 5, 2015, to submit compliant comparative proposals.

“This 30-day period is a continuation of the period, which commenced on September 25 per notice to the public given to prospective private sector proponents to secure the tender documents for the project,” Soriano said in the invitation.

No interested party has purchased tender documents yet, the Parañaque PPP-SC said.

The PPP-SC said the project would be awarded to SM Prime and if no interested party submits expression of interest, and the Stage 3 of the competitive challenge would be terminated.

SM Prime president Hans Sy previously said the company would unveil the master plan being prepared by New York-listed Aecom Technology Corporation for a P100-billion ($2.22 billion) “future city” by combining the reclamation projects in the cities of Parañaque and Pasay.

In August, the PPP-SC of the Pasay City government endorsed to the mayor the proposal of SM Land Incorporated to reclaim and develop 300-hectares of land in Manila Bay for P54.5 billion ($1.21 billion).

SM Land said that 51% or 153 hectares of the total land to be reclaimed, including roads and open spaces, would be allocated to the Pasay City government or the Philippine Reclamation Authority (PRA). It committed to finish the project within 7 years from the issuance of the notice to proceed by the Pasay City government.

Pasay City Mayor Antonino Calixto signed a joint venture agreement with SM Land in November 2013, which was submitted to PRA.

Earlier in November, comparative proposals have been sought for the P4.2-billion ($93.61 million)* condominium project of SM Development Corporation. Interested bidders have until Monday, December, 1 to submit their eligibility documents. – Rappler.com

*US$1 = P45.03