P25-B reclamation in Davao proposed

Malaysia-based Mercury Group SDN Bhd. has submitted an unsolicited proposal for a P25-billion, 200-hectare land reclamation project in Davao City, which is seen to house a number of mixed-used developments including a theme park.

Ivan C. Cortez, officer-in-charge of the Davao City Investment Promotion Center (DCIPC), said on the sidelines of a business forum on Thursday the company was eyeing to build a theme park, hotels, commercial spaces and even tenement housing there. The company, which reportedly has a consultant who is behind the Marina Bay Sands in Singapore, is now looking for local partners for the project.

Cortez said some 3,000 informal settlers affected by the project would be relocated. Apart from the huge investments involved, the project would have a humanitarian component providing shelter to informal settlers, he added.

Since the proposal was an unsolicited bid, Cortez said “after we agree on the terms and conditions, then that would be the time that we conduct the Swiss challenge. Usually, if the project is too big, not too many companies are keen on joining the bidding for it. With this process, a company has to match the best offer on the table.”

Under the Swiss challenge, a government agency that has received an unsolicited bid for a public project or services must publish the bid process and invite third parties to match or exceed the unsolicited proposal.

Cortez also noted an existing executive fiat could affect the project’s coverage.

“The presidential proclamation states that this [area] will be for parks and residential purposes only. So there is a limitation on the uses of the land. You need to somehow amend the proclamation. The city government should request the Office of the President to amend the said proclamation,” Cortez said.