CDC bidding out 50-year Mimosa concession
THE GOVERNMENT is taking another crack at the privatization of the sprawling Mimosa leisure estate in Clark Freeport, setting for October the bidding for the right to lease, manage, operate and develop the estate for 50 years.
The 201.64-hectare leisure estate—currently being run by state-controlled Clark Development Corp (CDC)—will be auctioned off as part of the government’s strategy to attract private investment and boost tourism in the area.
Based on an invitation to bid published by CDC last week, the 50-year concession was being offered to private investors for a minimum bid of P800 million.
The bidder that will submit the “highest ranked” and “complying” offer will win the concession, CDC said.
“Prospective bidders should have been in the business of mixed use, tourism-related activities equivalent to at least 50 percent of the P5 billion committed investment,” it added.
This suggests that the winning bidder will be made to commit to invest at least P5 billion in Mimosa.
The terms of reference for the bidding will be made available to prospective bidders for a nonrefundable fee of P500,000 starting today up to Sept. 14 this year.
A prebidding conference will be held on Sept. 16 at the CDC boardroom while the submission of bids was set for Oct. 13 this year, according to the CDC advisory.
In 1998, CDC regained control of the property from Mondragon Leisure & Resorts Corp., which failed to pay its rental obligations to the government. Several attempts to bid out the property in the past failed.
By attracting private investors to continue the development of the Mimosa estate, the government hopes to generate business opportunities, jobs and economic activities.
The Mimosa property is seen becoming more attractive to investors with the upgrade of the North Luzon Expressway (NLEx) and the upcoming Skyway extension project that will link NLEx to the South Luzon Expressway.
The leisure estate has a recreational, hotel and residential complex, a 36-hole all-weather golf course designed by the Honolulu-based team of Nelson, Wright and Haworth, and a casino.
The estate is part of the 4,400-hectare former US Airforce base in Clark. The Clark Freeport today offers modern infrastructure facilities, generous fiscal and nonfiscal incentives, professional support services, amenities and other perks for industrial and other business locators.
CDC is a subsidiary of the Bases Conversion Development (BCDA) which has the mandate to convert former US and Philippine military bases into productive civilian economic centers.
For its part, BCDA is developing the Clark Green City, envisioned to be the country’s first “smart, green and disaster-resilient” metropolis.
Clark Green City is a 9,450-hectare master-planned property within the Clark Special Economic Zone.
BCDA is seeking one development partner for each large parcel to be bid out. As the project is within the Clark Special Economic Zone, prospective investors, developers and locators can avail themselves of incentives such as a 5-percent levy on gross income earned in lieu of all national and local taxes and duties, and tax- and duty-free importation of raw materials and capital equipment.
