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THE
much-awaited joint-venture (JV) guidelines to cover the
government’s negotiated projects with private investors
like Chinese real-estate giant Shimao Property Holdings
Ltd., which is keen on developing former baselands for
$2 billion, may yet get timely approval, after all.
The
National Economic and Development Authority (Neda) Board
is set to decide the fate of the guidelines at today’s
joint Neda Board-Cabinet meeting, a week after President
Arroyo gave the Shimao Group the virtual go-ahead to
develop a 7-hectare prime parcel in North Bonifacio for
an integrated commercial complex.
Following Tuesday’s Neda Board meeting, the Bases
Conversion and Development Authority (BCDA) will come
out with an announcement by Wednesday or Thursday on
whether it has decided to reconsider its earlier
decision to reject Shimao’s unsolicited proposal and
just bid out the property to the public instead.
Neda
Assistant Director-General for Infrastructure Ruben
Reinoso told the BusinessMirror that the JV guidelines
approved earlier by the Infrastructure Committee (InfraCom),
and to be taken up by the Neda Board Tuesday, will also
include a provision allowing the government to undertake
a Swiss challenge for “all negotiated proposals.”
The
InfraCom is the interagency committee that advises the
President and the Neda Board on policies and programs
related to infrastructure development.
Reinoso
said “all negotiated proposals” will be taken to mean
that all unsolicited proposals, including failed
biddings, may be subjected to a Swiss challenge.
The
provision on Swiss Challenge will give the BCDA a legal
basis to undertake such a Swiss Challenge on Shimao
Holding’s unsolicited proposal.
In an
earlier interview, Neda director general Augusto Santos
said the JV guidelines will enhance the government’s
ability to undertake private-public-partnerships (PPPs).
Possible
projects under PPPs include the unsolicited proposal of
Shimao, submitted to the BCDA, to put up two five-star
hotels and a commercial complex in Bonifacio Global
City.
The BCDA,
which is authorized to privatize the former military
base, rejected the proposal because of the lack of
guidelines for joint-venture projects with the
government.
BCDA
officials declined to say what the Wednesday or Thursday
pronouncement would say; this will be the first time the
BCDA will give a definite comment on the issue since
President Arroyo welcomed Shimao in Hong Kong last
week—right after it joined the list of
multibillion-dollar investors in the Philippines with
its proposed $2-billion high-end mixed-development
project.
Aileen
Zosa, BCDA vice president, refused to give any hint on
what the agency’s official statement will contain, aside
from saying “isn’t it good that Shimao is investing in
the
Philippines?”
“I don’t
want to preempt it,” she told the The BCDA had keenly
awaited the Neda Guidelines on Joint Ventures, which
would have included a prescribed Swiss challenge process
for unsolicited proposals.
“BCDA
did not have solid legal basis to undertake a Swiss
Challenge on Shimao’s unsolicited proposal. Thus, BCDA
is now opting to simply bid out the North Bonifacio
property this year,” Zosa told BusinessMirror three
weeks ago.
The
Chinese developer, Zosa said then, can still get hold of
the property by winning the bidding for it.
Meanwhile, Zosa said the BCDA will open on Wednesday the
eligibility documents to be submitted by prospective
bidders for the 1.2-hectare Delta Lots in the Bonifacio
Global City, considered the “primest” in the area.
Although
the BCDA has yet to receive a single eligibility
document at this time, it is confident that at least two
companies will submit their papers in time for
Wednesday’s deadline, said Zosa.
This
will be the third time that the BCDA is bidding out the
property and it has decided to relax the terms of
reference (TOR) to avoid another failure.
Zosa
said they will determine which bidders will make it to
the next stage by evaluating their track record,
development plans, tax clearance and other documents
“Their
final proposals will then be evaluated solely on the bid
price,” she said.
Meanwhile, Neda’s
Santos said that with the joint-venture guidelines, the government
may enter into a 50-50 venture where the private sector
and the government will put in the same amount of
equity.
However,
he said this equity mix will be decided on by both
parties and will not necessarily be fixed on a 50-50
basis.
Neda’s
Reinoso added that if the present version of the JV is
approved by the Neda Board, it will mandate all
government-owned and -controlled-corporations (GOCCs) to
submit their JV proposals to the finance department
instead of the Neda InfraCom.
The Neda
official also said the guidelines approved by InfraCom
will allow all GOCCs to enter into JVs. Prior to the
meeting of the InfraCom, the Neda Secretariat’s version
of the guidelines will only allow GOCCs in good standing
to enter into JVs.
Reinoso
said this may be a better provision, considering that
GOCCs, which are not financially viable, may have a
chance to be viable by undertaking a JV.
The
government had recently bared its plans to offer up to
10 infrastructure projects for funding from the private
sector, in an effort to control government spending on
infrastructure projects and encourage the private sector
to participate in national development.
Santos
said the 10 projects will amount to at least P63.35
billion. On the list are the P3.01-billion North Luzon
East Expressway (NLEE) Project, the P38.87- billion
Metro Manila Tollway (Nlex-Slex Connection via C6),
P11.52-billion MRT Line 2 East Extension to Masinag,
Antipolo, and the P2.80-billion Panguil Bay Bridge.
The list
also included the Operation & Maintenance (O&M) of the
Subic-Clark-Tarlac Expressway (SCTEx); P5.20 billion
worth 300 million liters water per day (MLD)
Metropolitan Waterworks and Sewerage System (MWSS) Bulk
Water Supply Project; P1.95 billion worth 50 MLD Wawa
River Project; and the Department of Energy’s Power
Capacity Requirements for the Luzon Grid of 1,950
megawatts (MW) from 2010-2014, Visayas Grid of 820 MW
from 2011-2014, and Mindanao Grid, 850 MW from
2009-2014.
The 10
projects are now included in the updated P2.06 trillion
worth Comprehensive Infrastructure Investment Program
which identifies the government’s major infrastructure
projects to be implemented from 2007 until beyond 2010.
The projects will be financed through various sources.
Santos
said in a statement that 28 percent, or P575 billion,
will come from the private sector, 59 percent or around
P1.2 trillion from the national government, and 6
percent or P114 billion from GOCCs.
Government financial institutions (GFIs) will shoulder
1.3 percent or P27 billion; local government units, 0.38
percent or P8 billion; other sources such as grants,
Universal Charge for Missionary Electrification and
Energy Regulation 1-94 will be tapped for 6 percent, or
P131 billion, of the total investments. |
