MANILA, Philippines – The Philippine Competition Commission (PCC) approved a joint venture proposition that would pave the way for the proposed National Government Administrative Center (NGAC) to rise at New Clark City in Capas, Tarlac.
The PCC announced on Tuesday, March 20, that its Mergers and Acquisitions Office approved the joint venture between the Bases Conversion and Development Authority (BCDA) and Malaysian developer MTD Capital Berhad to build the NGAC.
“The creation of the joint venture will not have any substantial structural effect on the market,” the PCC said.
The BCDA is a government owned and controlled corporation that seeks to “transform former military bases and properties into premier centers of economic growth.”
MTD Capital Berhad, meanwhile, is a Malaysian investment holding company with interests in infrastructure, real estate, energy, ports, and manufacturing of construction-related materials.
In October 2017, MTD Capital Berhad submitted a P121.8-billion proposal to build a 207-hectare government administrative center at New Clark City, similar to Putrajaya in Malaysia, which the BCDA subsequently accepted.
The proposed joint venture is set to handle the financing, design, engineering, establishment, construction, and eventually the operations of the NGAC.
The PCC noted that under the proposal, the BCDA “shall allow the use of its idle land for 25 years as site of the NGAC, but shall retain full ownership thereof, while MTD shall finance, design, build, and develop the infrastructure, facilities, and improvements comprising the NGAC.”
MTD Capital Berhad will own 90% of the joint venture, while the BCDA will own 10%. Both partners will then share in the profits from lease and purchase payments as well as from the operations and management of the NGAC, in proportion to their interests in the project.
“Upon full payment, facilities shall vest in the BCDA (or the yet unnamed JV entity) and the development and usufructuary rights held by the JV for the facilities shall be transferred to the BCDA (or the entity it shall name by the JV),” the PCC concluded.
The NGAC is seen to house major administrative offices and satellite offices of various departments and agencies. It will also include an extension office for the Philippine president and executive buildings, as well as sites for embassies and international schools.
The location of the NGAC, New Clark City, is an approximately 9,450-hectare flagship project by the BCDA. It is envisioned to be the Philippines’ first smart and green city with a mix of residential, commercial, agro-industrial, institutional, and information technology developments. – Rappler.com