SSS mulls BOT deal for 4-ha property along EDSA

The Social Security System (SSS) is conducting exploratory talks with a foreign group that wants to enter into a build-operate-transfer (BOT) deal to develop a four-hectare property at the corner of East Ave. and the Epifanio de los Santos Ave. (EDSA) in Quezon City.

The proposal is with the SSS management which is seeking an audience with the National Economic and Development Authority (NEDA). A presentation of the BOT, proposal to NEDSA is necessary to get approval to continue discussions with the group seeking to develop the property.

SSS president and chief executive officer Corazon de la Paz has signed a memo proposing to the SSS commission discussions and submission of the BOT proposal with NEDA. However, details of the plan are still sketchy including the direct or indirect participation of the SSS.

"We still have to study all options. It may likely be a 25-year BOT," De la Paz told reporters. "There are unconfirmed reports that it could be a twin tower structure for mixed purposes including residential, commercial, shopping, and parking."

She added: "It is just an offer but we can dream can’t we! But the sooner its development, the sooner we can increase our earnings to increase our soon-to-be depleted reserves."

While refusing to reveal the identities of the BOT proponents, she admitted that it was a European firm with local ties.

She said that if the project pushes through, they would abandon the 38-year old, 12-storey structure they are occupying along East Ave. The pension fund would then transfer to the new site while the old site would be transformed into a hospital for SSS members.

Also placed on the auction block are properties in the Fort Bonifacio area, the North Bay Boulevard area minutes away from the premier Manila North Harbor and what was formerly the Smokey Mountain, several properties in the reclaimed area in Pasay City, and another in Urdaneta area in Makati.

"We are looking at different ways of making use of all our properties," De la Paz said. "We have been selling what we could sell, we are renting out what seems more profitable that way."

The SSS chief executive explained in an informal press briefing that the SSS was speeding up the disposal or development of all its properties to transform the government pension fund into a more responsive organization.

The SSS had earlier reported that it was already dipping its fingers into its reserves to continue operating efficiently. Actuarial studies indicate a depletion of its reserves by 2015 unless measures are taken to replenish the same.

However, the study was completed in by the first quarter of 2002. SSS officials fear that the depletion of the reserves has now accelerated, and that it could even occur by 2004.