Manila Bay. INQUIRER PHOTO/BOY ABING
The state-owned Government Service Insurance System is opposing a vast land reclamation project planned by the Pasay City government along Manila Bay—now the subject of a tug-of-war between two of the country’s largest property firms.
As early as 2012 when Pasay City asked stakeholders to comment on what was initially planned as a 60-hectare development, the GSIS voiced its stiff opposition on environmental grounds. A spokesperson said last week that the GSIS continued to oppose the reclamation project.
The Pasay City reclamation project— which is hotly contested by property giants Ayala Land Inc. and SM Land Inc.—has become a 300-hectare project worth about P54.5 billion.
SM has submitted an unsolicited proposal to undertake the reclamation, while ALI wants to submit a counteroffer if Pasay City will reconsider the tough terms which, it said, could discourage potential challengers like itself.
Industry sources told the Inquirer that, even when Pasay City was talking about just a 60-hectare project, the GSIS had already warned the city government against it.
The GSIS owns a big property along the Manila Bay area, including that which is occupied by bayside luxury hotel managed by Sofitel and the Coconut Palace area, which is now used as the official office and residence of Vice President Jejomar Binay.
“The GSIS is of the firm position that the long-term ill effects, which the project will tow in its wake, greatly outweigh the projected benefits of the proposed project,” based on the position paper of the pension fund, a copy of which was obtained by the Inquirer.
In its position paper, the GSIS said it was “by and large an instrumentality for the promotion of social justice, being tasked to administer pieces of social legislation.”
According to the pension fund, “social justice unavoidably entails the move toward social responsibility. As such, the GSIS is directly interested and invested in the protection of the environment.”
The Pasay City reclamation project is separate from, but adjacent to, similar reclamation projects being considered by the local governments of Las Piñas, Parañaque and Manila.
For its part, the GSIS had warned that the Pasay reclamation project, even at a much smaller size of 60 hectares, may cause far-reaching environmental implications.
The pension fund is worried that the project would “cause staggering and unforeseeable changes in the ecosystem of the nearby coastal environs, affect the water quality, and deplete the already weak marine life of Manila Bay.”
Based on earlier reports, the city councils of Pasay and Parañaque both backed a proposal from SM Land to reclaim 300 hectares of Manila Bay in each city.
According to Pasay City’s published notice, SM Land offered to fully finance the project at an estimated cost of P54.5 billion, complete the project in seven years, and give the city government a share of 51 percent of the reclaimed land, or about 153 hectares. From the point of view of the city government, this additional landbank can improve wealth and employment opportunities in its jurisdiction.