Lower bid price for first Clark Green City parcel attracts firms

Sixteen companies are eyeing development for the first parcel of Clark Green City of the state-owned Bases Conversion and Development Authority (BCDA) after the agency improved the bidding terms for the project.

The interested firms that attended the recent prebid conference in Taguig City include Ayala Land Inc., Century Properties Inc., Federal Land Inc., Filinvest Land Inc., First Philippines Industrial Park, Megaworld Corp. Daichi Properties Inc., ESCA Inc., Hitachi Asia, MGS Construction Inc., MTD Phils. Inc., Nuevo Centro Inc.; ProdigyAE Inc., Sudeco and Jones Lang LaSalle Inc.

“We welcome the firms and are confident that they will proceed in submitting their respective bids,” BCDA President and Chief Executive Officer Arnel Paciano D. Casanova said.

He also said on the sidelines of the prebid conference that BCDA has relaxed the terms of reference (TOR) for the first parcel of Clark Green City as a first-mover advantage.

In order for a firm to develop the 288-hectare parcel, it must bid for a joint venture with the BCDA for a minimum of P160 million.

Casanova noted that the minimum bid was slashed from P500 million to attract more bidders.

The joint venture will be 55-45 sharing, in favor of the winning bid. The joint-venture deal will have 50 years, which is renewable for another 50.

“That’s quite aggressive and highly optimistic,” Casanova said. He also said the BCDA also removed the P2.5-billion initial cash investment and capitalization for the winning company.

“Now, we have simplified everything. It’s just like we did in Bonifacio Global City. We form a company that will have development rights, then we sell the 55 percent [share]. From there, make the decision on the timing and amount of investment over the years, since we’re already partners,” the BCDA chief said. “We need flexibility for real estate.”

The deadline for submission of bids is on July 3. PNA