THE CITY OF Parañaque is inviting parties to match an offer by SM Prime Holdings, Inc. to reclaim and develop a 300-hectare (ha) area in Manila Bay for P50.19 billion, according to a bid bulletin published in two newspapers yesterday.
The bulletin, published by the city’s Public-Private Partnership Selection Committee (PPP-SC), said the local government had “completed successful negotiations” with SM Prime last Nov. 13.
The bulletin said eligible parties should submit their expressions of interest by Dec. 1, and their comparative proposals by Jan. 5.
Expression of interest must contain, among others, a commitment that the private sector proponent concerned “will not seek and obtain a writ of injunction or prohibition or restraining order… to prevent or restrain the competitive challenge process, the award of the project and carrying out of the project and that it will not institute any criminal, civil and/or administrative cases against officials of the PPP-SC and the City.”
It added that if no notarized expression of interest is received by 5 p.m. on Dec. 1, the project will be awarded to SM Prime as the “original proponent.”
Sought for comment, Ayala Land, Inc. -- SM Prime’s main rival -- said it remains interested in the project after having submitted an earlier offer, while noting the deadline for submission of a comparative proposal was “very tight.”
“I think we are interested in the reclamation of the Manila Bay…” Ayala Land Corporate Secretary Solomon M. Hermosura said in a telephone interview yesterday, even as he admitted that company officials “have not seen and studied” the city government’s notice.
Mr. Hermosura noted, however: “For the expression of interest, maybe that’s enough period. But for the comparative proposal, that might be a very tight deadline given the magnitude of the project.”
The same bid bulletin said interested parties must have completed a similar reclamation project with an area not less than 130 hectares, preferably within the Manila Bay area.
“We have not had a reclamation project,” Mr. Hermosura admitted.
“Our plan -- if ever we participate -- is to get a technical partner.”
The City of Parañaque also requires any interested company to have a minimum capitalization of P50 billion, a credit line of at least P10 billion, and be able to raise the total funding needed to complete the project within seven years from issuance of notice to proceed.
Besides Ayala Land, S&P Construction Technology Development Corp. had also submitted an unsolicited proposal for the project last year.
SM Prime officials had said in September that the company plans to merge the reclamation projects -- estimated to be worth a combined P100 billion -- in a contiguous 600-ha area under the jurisdiction of Pasay and Parañaque cities.
SM Prime had said it had contracted international engineering firm Aecom Technology Corp. to draft the master plan, which is expected in the first quarter of next year.
SM Prime reported a 12% increase in profit to P13.5 billion in the nine months to September, as revenues grew 9% to P47.8 billion. Shares of the company shed 18 centavos or 1.03% to end P17.32 on Friday last week, from P17.50 the day before.
Ayala Land, meanwhile, reported a 25% jump in its nine-month net income to P10.8 billion, as consolidated revenue similarly rose 20% to P68.3 billion. Its shares lost 30 centavos or 0.85% to close at P35.20 on Friday, from last Thursday’s P35.50.
source: Businessworld
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