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THREE
weeks ago this newspaper bannered an exclusive story by
reporter Max de Leon, quoting officials of the Bases
Conversion and Development Authority (BCDA) as saying
the BCDA board had decided to reject the unsolicited
offer of Shimao Property Holdings Ltd. to develop the
prime lots in North Bonifacio, but would instead invite
the Chinese conglomerate to join a full-blown
international competitive bidding.
The
BCDA’s reason: while it was pleased with the interest
shown by the reputable Chinese company to invest
billions of dollars here, it had no legal basis—at that
time—to simply entertain such an unsolicited offer, in
the absence of formal guidelines from the National
Economic and Development Authority (Neda) covering joint
ventures between the government and entities like Shimao,
especially on big-ticket projects for privatized State
assets.
However,
less than two weeks after that news broke, Malacañang
announced, from Hong Kong, that the President no less
had met with Shimao officials in the former British
colony, on the sidelines of her attendance at the Asian
Investors’ Conference. Through Trade Secretary Peter
Favila, the government trumpeted Shimao’s plan to build
two five-star hotels and a commercial complex in the
rapidly developing Fort Bonifacio area.
Shimao
is owned by the second- richest man in China, Hui Wing
Mau (or Xu Rongmao based on the Forbes listing), and,
according to information available on its web site,
presides over 37 big projects in China alone; has one in
India, another in Malaysia and, with the Philippine
project, is apparently bent on projecting itself as a
major regional player. It was, thus, understandable for
the Executive to wax ecstatic over Shimao’s planned
entry into the local property scene.
Yet, no
matter Shimao’s credentials, both the company and the
Philippine officials it has been talking to should tread
carefully. For one thing, the President’s and Favila’s
jubilant remarks after the Hong Kong trip have put in a
bind the BCDA, which is mandated to oversee the
privatization of former military lands. The BCDA has
done a rather satisfactory job at this so far, so it
needs to work its way around the North Bonifacio case or
risk getting burned.
Here you
have another big Chinese company (ZTE was no
fly-by-night player, in fairness), and another potential
flip-flop by the Executive, i.e., a decision to abandon
the unsolicited offer and open it to full international
bidding.
It would
be so unfortunate if a company with Shimao’s enviable
record would be caught in yet another “NBN-ZTE”-style
fiasco just because some people did not handle their
offer properly. As it is, the haste with which officials
like Mr. Favila trumpeted the apparently consummated
deal with Shimao had put the BCDA on the spot. That
change in tack may haunt this project for months to
come, wasting the goodwill and good name of a big
investor owing to questions that may be raised by the
flip-flopping decisions on whether or not to go for full
bidding.
Still,
the situation may yet be saved if the Neda Board
approves the joint-venture guidelines, which the BCDA
said would give it a legal leg to entertain Shimao’s
offer. The guidelines were approved at the level of the
Neda’s interagency Infrastructure Committee weeks ago;
somehow the guidelines were not quickly put on the
agenda of the Neda Board, hence the delay in approval.
Whatever
happens here, investors and Filipino taxpayers alike
would presumably be closely watching. The Executive
should show it has learned some tough lessons from the
NBN-ZTE fallout. |
