If negotiations work according to plan, the ground breaking for the construction of the Philippine Basketball Association's Arena could take place sometime in July of 2007.

PBA commissioner Noli Eala echoed his optimism after he and league chairman Ricky Vargas made significant progress Friday in their effort to get the project started sooner than later.

The breakthrough deal transpired following informal talks between the two PBA bigwigs and representatives of the Quezon City government led by Mayor Sonny Belmonte.

Eala said three sites in the heart of Quezon City have been identified. One is located near the boundary of Agham Road and Quezon Avenue, the other is a prime lot near the North Triangle Development Area beside SM City North EDSA, and the last one is currently housing the Manila Seedling Bank at the corner of EDSA and Quezon Avenue.

"We'll be talking to the individual owners of the potential sites for lease arrangements next week," said PBA commissioner Noli Eala after his meeting with Belmonte that was arranged by City Councilor Franz Pumaren.

The PBA commissioner said two of the sites are National Housing Authority properties while the third is controlled by the Ayala Group.

Also with Eala and Vargas, whose company Philippine Long Distance Telephone could be one of the major investors in the multi-million venture, in the meeting that has the go-signal of the Board, was league legal counsel Melvin Mendoza.

"The Mayor was very enthusiastic with our desire to build a permanent venue in his city," the commissioner said.

With the PBA Board throwing its full support to the project, Eala hopes to furnish the league's Governors a comprehensive report on three crucial aspects of the undertaking by December, namely: site selection, financing proposal, and the business model and management terms.

"It's looking more realistic every moment," said Eala of the long-time vision which took vague form as early as the tenure of Commissioner Rudy Salud in the late '80s.

With a reported P4B surplus in its coffers, Quezon City appeared in strong position to enter into a joint venture with the PBA, primarily through PLDT, San Miguel Corporation and, possibly, real estate developer Sta. Lucia Realty, in the ambitious project.

"The Mayor envisions a civic center with the PBA coliseum there," Eala bared.

During the meeting, Belmonte presented the visiting PBA officials with a blueprint for the Quezon City Central Business District detailing the development plan for the QC North Triangle District.

If plans proceed smoothly, Eala said site selection could be finalized by January next year. Negotiations with banks and financers could follow by March and April, with a groundbreaking ceremony set by July.

"The PBA is debt-free," said Eala. "I don't know of any commercial bank that would not be happy to get into any business arrangements with us, like a debt-and-equity setup. We could put up, say, 20 percent of the cost, and the banks would shoulder the rest as loans." (DBC)