The P6 billion development of the 7.7-hectare provincial government property in Bacolod City is no longer part of the business plan of AyalaLand Inc., Emilio Tumbocon, its senior vice president, said yesterday.
“We have been waiting for over a year, our business cannot operate in an environment of uncertainty,” he told the DAILY STAR.
He cited the delay of about 14 months in the Commission on Audit ruling on the contracts for the sale and lease of the Capitol property to ALI, and the pending lawsuit filed by SM Prime Holdings Inc. against provincial government officials for its not being awarded the project.
Whether we like it or not, even if the long delayed COA ruling is released, there is still the pending lawsuit to contend with, he said.
“We cannot stay in suspended animation, we have to move on and secure opportunities in other areas,” Tumbocon said.
“We owe it to our shareholders as a public listed company to operate in an environment of certainty, and not in an environment of uncertainty. It’s not good business,” Tumbocon added.
He, however, stressed that ALI is still investing in Negros Occidental. ALI is refocusing its resources to accelerate the development of a mixed use community at Ayala North Point in Talisay City, he said.
The P7 billion 200-hectare Ayala North Point development includes a subdivision, mall with a supermarket, and Business Process Outsourcing facilities, he said.
They are also studying the feasibility of building a hotel in the area, Tumbocon added.
They do not think a convention center, which they had proposed for the Capitol property, will be a viable proposition at the North Point site because it is just a township suburb of Bacolod, Tumbocon said, at the groundbreaking yesterday of the Metro hypermarket at the Ayala Mall that is being constructed in the North Point Talisay.
Negros Occidental Gov. Alfredo Marañon Jr. who was at the groundbreaking rites, said the provincial government will lose the money it had expected from the rental and sale of its 7.7-hectare property to ALI, but at least the firm is still investing its money in Negros Occidental.
The governor also said he would support a private sector-led signature campaign to try to convince ALI to change its mind about withdrawing its investment from the Capitol property.
However, if ALI stands firm on its decision to withdraw from the Capitol project, that is not the end, there will be other investors, he said. “But let’s hope there will be other investors of the same caliber as Ayala,” he said.
The governor said he is forming a committee, which will include private sector representation, to study what to do with the 7.7-hectare Capitol property with the pull out of ALI.
Any rebidding of the property may be after the elections next year, he said.*CPG back
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