Manila reclamation developers get PCC approval

MANILA, Philippines — The Philippine Competition Commission (PCC) has cleared the joint venture between the city government of Manila and JBros Construction Corp. for the Horizon Manila reclamation project in Manila Bay.

In a decision signed last March 11, the PCC said the unincorporated joint venture between JBros Construction and the city government of Manila is not seen to lead to reduced competition in the market for commercial and residential real estate development in Manila.

“There are neither affected customers nor any commercial activity in the relevant geographic market,” the PCC said.

“The transaction is a new area of investment formed for the creation of a residential and commercial real estate development project. This will expand the existing market and likely create an opportunity for the emergence of new markets for commercial and residential real estate within the City of Manila,” it said.

Located south of the Manila-Pasay border and east of Roxas Boulevard, Horizon Manila is a 419-hectare raw land reclamation of foreshore and offshore areas in Manila Bay.

The project is envisioned to be a mixed-use community with commercial, institutional and residential areas as well as port, marina and tourism-related facilities.

Once completed, the project is expected to generate employment and business opportunities in Manila.

JBros Construction is engaged in construction, with notable projects such as the Government Service Insurance System building and the National Museum of History.

The parties have entered into a contractual joint venture which would be governed by a sharing arrangement with 51 percent for the Manila city government and 49 percent for JBros Construction.

JBros Construction will provide capital and expertise for the project, while the city government of Manila will contribute rights over municipal waters where the project will be developed.

PCC’s clearance for joint venture agreements for reclamation projects that meet the threshold under the Philippine Competition Act, covers implications in the commercial and residential real estate development markets in the affected areas.

The joint venture between the city government of Manila and JBros Construction is the 212th transaction approved by the PCC.

It is also the third to be cleared by the PCC among joint ventures created for reclamation projects.

PCC conducts a review of mergers, acquisitions and joint ventures to ensure these would not restrict competition in the market and harm consumer interest.