Ayala Land urges greater transparency in failed bid vs SM Land

MANILA, Philippines – Ayala Land Inc said it was disappointed over a recent Pasay City decision to award a 300-hectare reclamation project to the Sy-led SM Land Inc.

Ayala Land chief operating officer Bobby O. Dy said in a statement it was “unfortunate that Pasay City proceeded with the award despite numerous concerns expressed by various groups, particularly on the environmental impact of reclamation, and the questions we raised on the process that it followed.”

Dy noted that a reclamation project of this scale “should be subjected to an open, public and competitive bidding which encourages transparency,” adding that Pasay City may have been better served by studying the issues and concerns regarding the reclamation and its awarding.

SM land released a separate statement confirming its receipt of a Notice of Award, as well as the signing of a joint venture agreement with Pasay City. The company added it was “committed to abide by all government laws, regulations and processes.”

Transparent process

Ayala Land maintains that reclamation projects have to be approved by the National Economic and Development Authority (NEDA), in addition to having a public bidding for transparency and increased competitiveness.

“Since all reclamation projects will have to be approved by the NEDA, we expect it to follow the said guidelines and consider the questions we earlier raised on the process. If various issues, including environmental concerns, are satisfactorily addressed, and an open and competitive bid is conducted for the project, ALI will participate,” Dy said.

The Pasay City government also released its own statement, saying that its procedures for selecting a partner for the reclamation were legal and above board.

Atty Severo Madrona, city legal officer and vice chairman of the PPP selection committee, said they followed the appropriate laws and regulations for the reclamation in connection with SM Land’s unsolicitied proposal.

“In the first place, there’s nothing illegal when it comes to the processes or procedures followed by the PPP selection committee, Madrona said.

“For one, the City Council approved the procedures followed by the PPP-SC, approved a resolution authorizing Mayor Antonino G. Calixto to sign the contractual joint venture (JV) agreement between the City government of Pasay and the SM Land Inc and subsequently ratified the JVA through another resolution,” he said.

Manila Bay reclamation

The project is for the reclamation and development of around 300 hectares of foreshore and offshore areas of Manila Bay, in the western portion of the city’s jurisdiction.

SM Land will fund and facilitate the reclamation, shouldering the costs of necessary permits and clearances from government agencies in addition to any charges that need to be paid to fulfill government and legal requirements. The Pasay City government will not need to shoulder any costs.

Pasay City will get at least 153 hectares (51%) of the area to be reclaimed, including roads and open spaces.

The project is meant to be finished in 7 years from the date a Notice to Proceed is issued, with the project cost pegged at around P54.5 billion. – Rappler.com