THE STATE-controlled Bases Conversion Development Authority has sweetened up the joint venture development framework for Clark Green City – envisioned to be the country’s first “smart, green and disaster-resilient” metropolis – to attract more investors as the rebidding process starts next week.
For this renewed attempt to find a development partner for the first parcel of land in Clark Green City, BCDA is making available a larger tract of 288 hectares and removing the “restrictive” P2.5 billion upfront capital infusion requirement, BCDA president Arnel Casanova told reporters at the sidelines of the Asia CEO Forum on Thursday.
Casanova said the new terms of reference (TOR) would be published this Monday (May 25), thus jump-starting the rebidding process. If successful, he said the contract signing with the first development partner could happen by September this year.
The BCDA chief is confident that this time around, the auction will be successful. He also expects the two local developers which earlier purchased the TOR – the Megaworld and Filinvest groups – to participate. Some foreign players are also seen to join the bidding.
The government corporation’s earlier attempt in April to bid out the development right for the first 254-hectare parcel in Clark Green City failed. Part of the reason, Casanova said, was the prohibitive seed capital required by the BCDA.
BCDA has also agreed to bid out a bigger tract of land compared to the earlier offered 254-hectare parcel to allow the potential partner to offer leasehold rights for additional industrial space. Out of the 288 hectares to be bid out, 100 hectares will consist of the industrial hub. The residential and mixed-use areas will corner at least another 100 hectares while the remainder will consist of open space.
The prospective partner will get a 55 percent stake in the joint venture company which will be formed to develop the estate while BCDA will retain a 45 percent economic interest. The partner will have the right over the land for 50 years which will be renewable for another 50 years.
After the release of the revised TOR by Monday, BCDA will hold a pre-bid conference on June 9. Bid opening is targeted by July this year.