Tomas gives guidelines to buyers of SRP, expects proposals in 30 days

TWO days after the approval of the guidelines on joint venture agreements involving the South Road Properties (SRP), Mayor Tomas Osmeña turned them over to interested buyers. He expects to accept proposals within 30 days.

Osmeña was in Manila yesterday to submit a copy of the guidelines to the prospective buyers, City Administrator Francisco Fernandez said.

The mayor also disclosed that the City Government will be open to a build-operate-transfer (BOT) scheme for the power and water supply at the 290-hectare facility.

New step

In his news conference last Thursday, he said the City will receive unsolicited proposals within 30 days, now that the City’s guidelines on joint ventures have been approved.

“The next step is for proponents to make a proposal that is consistent with the guidelines. As long as it is not in violation with the guidelines, then we will entertain it for bidding,” he said.

City officials had expected to start bidding procedures last August yet, but failed to meet their target.

With the guidelines, Osmeña said the steps to making a sale, lease or development under a joint venture agreement will be “fairly quick,” and that he expects to receive unsolicited proposals within a month.

Osmeña added that the City will not bid out the properties at once and will just wait for buyers to make proposals for the lots they will buy, lease or develop under a joint venture agreement.

The proposals will then be put up for bidding in the form of a Swiss challenge, where other developers and buyers can compete with the original proposal.

And if the proponent loses the bidding, it will be allowed to match the winning bid.

“It’s not in our best interest to do a bidding and then no one will respond. It can be in the form of an unsolicited proposal then the others will just compete, and the proponent can match the winning bid,” Osmeña explained.

But there will be no BOT scheme for real estate, he said.

What will be open for the BOT schemes are the power and water supply, waste management and treatment and the production of steam to produce energy for locators at the SRP.

Once the City accepts a joint venture agreement with any of the interested buyers, it will only be allowed to have less than 50 percent in asset contribution to the venture, as specified in the guidelines the City Council approved last Wednesday.

The assets may be in the form of money, equipment, land, intellectual property or anything of value. (LCR)


source: sunstarnews