Ayala drops 6-billion Negros project

[timrev]

BACOLOD CITY -- Property giant Ayala Land, Inc. (ALI) has dropped plans for a P6-billion development project over the failure of the Negros Occidental provincial government to deliver on the proposed site.

Gov. Alfredo G. Marañon, Jr. announced in a press conference on Friday ALI’s decision to withdraw from the planned Capitol Civic Project, which is the subject of a legal dispute with SM Prime Holdings, Inc.

ALI’s withdrawal was a big loss for the province and “sends a very bad signal to other investors,” he said.

“This is a very sad day for Negros and Bacolod City. The Ayala Land wrote me a letter yesterday [Thursday] withdrawing their project at the Capitol.

Negros lost a golden opportunity of a 6-billion investment and thousands of job opportunities,” the governor said.

Mr. Marañon furnished reporters a copy of the September 13 letter sent to him by Emilio J. Tumbocon, ALI senior vice-president and group head for Visayas-Mindanao and Superblock Projects.

In his letter, Mr. Tumbocon said the company is unable to pursue the project due to delays and legal disputes that continue to threaten its implementation.

“In light of this, and considering that the provincial government was unable to fulfill its obligation to deliver the property to us under the terms of the agreement, we are open to discussing with you mutual disengagement from the project,” he told the governor.

The provincial government awarded the 7.7-hectare property for more than 3.5 billion to ALI in July last year. The deed of conditional sale for the 3.6-hectare property and contract of lease for the 4.05-hectare property were submitted by the provincial government to the Commission on Audit (CoA) also in July last year.

Both contracts were signed by the province and ALI and subsequently ratified by the provincial board in April this year as required by the CoA. The commission, however, has not approved the deal.

SM Prime, which has insisted that it won the bidding, has filed cases before the Court of Appeals and the Regional Trial Court in Bacolod against the governor and members of the provincial bid and awards committee. These are still pending in court.

ALI’s decision to drop the project came even after the firm informed the governor early this year that it has started drafting plans and engineering studies.

Mr. Tumbocon, however, said ALI remains committed to investing in Negros Occidental. The group has an ongoing mixed-used development in the 200-hectare North Point in neighboring Talisay City.
Mr. Marañon said that since ALI will no longer pursue its project, he will create a special committee to study and plan the use of the 7.7-hectare property.
Mary Ann Manayon-Lamis, assistant provincial legal officer, earlier said the provincial government can proceed to lease the 4.05-hectare property for 2.75 billion in the next 50 years as the transaction does not require an approval from the CoA.
CoA Circular 92-386 and the Local Government Code of 1991 cover only the review of a contract that pertains to sale or disposal of properties, she noted.

Ayala drops Negros project | BusinessWorld Online Edition

About 500 businessmen, government officials, workers, students and ordinary folks lit candles in front of the Provincial Capitol Monday night to dramatize their mourning of the loss of multi-billion peso investments as a result of Ayala Land’s pullout of its proposed P6-billion development project.
The gathering was spearheaded by the Hotel Restaurant Association of Negros Occidental (HRANO) and Philippine Constructors Association of Negros (PCAN).
HRANO vice president Nestor Evaristo said they would come up with a manifesto to be sent to President Aquino asking for his help on the matter.
The “mourners” carried placards that read “Ayala Land Please Don’t Leave.” They said that it seems Negros Occidental had to celebrate “All Souls’ Day” early.
“The gathering shows that Negrenses are angry at COA. It blocks the progress for Negros,” Marañon said

[vinj]

Hmmm... I guess Ayala has to commit its funding to meet its FTI obligations also. :D

So will SM step back into the picture with this?

[CVT]

Hmmm... I guess Ayala has to commit its funding to meet its FTI obligations also. :D

So will SM step back into the picture with this?

Mas malaki kasi ang chance nilang maging successful sa FTI Project....

16.9K:spam:

[vinj]

Mas malaki kasi ang chance nilang maging successful sa FTI Project....

16.9K:spam:

Dapat lang... since their bid was a few billions more than the next. :D

Mukhang hindi lang UAAP board ang nagalaw ng SM ah... pati Provincial Board. :D

[uls]

kahit mountain magagalaw ng SM hehe

[uls]

meron ayaw sa ayala... wala yata mapapala

baka mas ok kung mapunta sa SM

hehe

[pop3corn]

Pag SM yan eh di Parang wala Lang, masa mall ang SM so Ganun pa din status nila bec they are a province. Pag ayala kasi it attracts expats,syempre pag expats, yun mga girls na kayamanan ng negros, may pagasa makatikim ng states side

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[uls]

meron mag bebenefit pag napunta sa SM ang project hehe

[jon777]

Pag ayala kasi it attracts expats,syempre pag expats, yun mga girls na kayamanan ng negros, may pagasa makatikim ng states side

Sent from my iPad using Tapatalk

ano ba yan pop3corn.... binastos mo dito mga negrenses at mga kababaihan

[tagalnasaabroad]

ano ba yan pop3corn.... binastos mo dito mga negrenses at mga kababaihan

oo nga..just one of those posts in this forum deserving deletion imho..very irrelevant and insulting ang banat sa mga taga negros..
baka lasing nong nagpost..