No PRA approval for 300-ha Pasay City reclamation project

MANILA, Philippines - The state-run Philippine Reclamation Authority (PRA) clarified yesterday that it has not yet approved the proposed 300-hectare reclamation project along Manila Bay which has become subject to a tug-of-war between SM Land Inc. of retail magnate Henry Sy and property giant Ayala Land Inc. (ALI).

In a paid print advertisement, the management of PRA and its board of directors said the proposed Pasay City reclamation project has yet to seek approval from the agency.

“This is to inform the public that the much publicized 300-hectare reclamation project in Manila Bay within the jurisdiction of Pasay City has not been submitted to the PRA for approval. Pursuant to laws and regulations, the reclamation activity cannot legally commence without said approval,” the agency said.

PRA, formerly Public Estates Authority (PEA), is chaired by Roberto Muldong while Peter Anthony Abaya serves as general manager and chief executive officer.

PRA said it was surprised about the unsolicited proposal of SM Land to invest P54.5 billion over a seven-year period to reclaim 300 hectares along Manila Bay as well as the decision of the Pasay City government to accept counter-proposals for the project.

ALI had asked Pasay City Mayor Antonino Calixto to relax the terms of the bidding including lowering the required minimum net worth of P50 billion as well as the provision requiring a previous experience on at least a 120-hectare reclamation project preferably within Manila Bay.

The property giant also asked the city government to extend the Nov. 4 deadline by at least 60 days.

PRA said it has forwarded a letter to the Pasay City government in August about the proposed government center project in the same area.

“All these developments came as a surprise to PRA considering that as early as August this year, the PRA submitted a letter to Pasay City informing them of a proposed Government Center Project which pertains to the same area in their jurisdiction,” the agency added.

PRA added that all reclamation project proposals undergo a five-stage approval process: securing an environmental compliance certificate (ECC), submission of flooding and drainage studies, public consultations by the proponents, detailed engineering designs, and as geo-hazard assessment and financial feasibility studies.

The agency pointed out that no reclamation works could commence without the notice to proceed issued by the PRA.

“The 300-hectare Pasay City reclamation project has not yet even reached the first stage as no letter of intent nor request for approval has been received by PRA to date,” the agency clarified.

PRA added that reclamation projects would need to be endorsed to the National Economic and Development Authority (NEDA) for approval under the current approval protocols.

Earlier, the Pasay City government thumbed down the request of Ayala Land as conveyed by Pasay’s Public-Private Partnership (PPP) Selection Committee vice chairman Severino Madrona Jr.

“Much to our regret, we cannot grant your request for extension of time to submit counter-proposal without exposing ourselves to charges of violating or bending the rules to favor your company,” Madrona said in a letter to ALI.

SM Land offered to fully finance the project including the costs of all necessary permits and clearances from government agencies as well as other expenses to comply with all government and legal requirements.

Of the total land to be reclaimed, SM Land said 51 percent or 153 hectares including roads and open spaces would be allocated to the Pasay City government and the PRA.

In 1994, SM Land entered into a joint venture with PEA for the reclamation and development of a 141-hectare property known as Central Business Part 1 Island A, which is now the site of the Mall of Asia complex.