August 27, 2014

Local PPP unit endorses SM Land’s bid for land reclamation

News portal interaksyon.com today reported that the Paranaque Public Private Partnership Selection Committee has endorsed for the city mayor’s acceptance the proposal of SM Land to reclaim and develop 300-hectares of land in the city’s coastal line. SM Land was deemed the only qualified proponent after another firm failed to submit a complete feasibility study on time.

If accepted by the mayor’s office, SM Land will be deemed as the original proponent of the P34b project and will pave the way for the company and the local government to finalize terms and condition of the project. The project will then be subjected to a Swiss challenge.

Our take: The project is different from the 300-hectare reclamation proposal by the SM group for Pasay City which was put on hold pending resolution of the issues raised by both Ayala Land Inc (ALI) and the Finance secretary on the bidding and awarding process.

Barring any opposition or procedural flaws, SM Land’s original proponent status for the Paranaque City project can give the company an edge towards clinching the project. This can provide the SM Group a quick way of land banking in the area that should benefit from ongoing infrastructure improvements and the emergence of various central business districts within the vicinity of the project. – WealthSec