Ayala withdraws from Capitol deal-A A +A
Saturday, September 15, 2012
THE Ayala Land Inc. (ALI) withdraws from its land deal for the purchase and lease of the 7.7 hectare property of the province of Negros Occidental.
“This is a big loss to the people of the province and of the city of Bacolod,” said Governor Alfredo Marañon Jr., in a press conference at his office Friday where he read ALI’s letter which he received last September 13, 2012.
The withdrawal of ALI from the project came amid reports that the Commission on Audit has made a decision on the contract pertaining to the said land deal.
It was not yet known, however, if the contract was approved or disapproved by COA national office.
The letter was signed by Emilio Tumbocon, Senior Vice President and Group Head, Visayas-Mindanao and Superblock Projects of Ayala Land.
“We write to you in relation to the Capitol project which was awarded to Ayala Land Inc. last July 20, 2011 and is the subject of our Deed of Conditional Sale and Contract of Lease,” the letter stated.
Tumbocon cited in the letter that “after more than a year since the property was awarded to Ayala Land for development, we regret that we are unable to pursue the project on account of the delays and legal disputes that continue to threaten its implementation, through no fault of Ayala Land.”
Tumbocon added, “In light of this, and considering that the Provincial Government was unable to fulfill its obligation to deliver the property to us under the terms of the agreement, we are open to discussing with you a mutual disengagement from the project.”
Marañon stressed that the project could have helped a lot in addressing the unemployment problem in the province.
Marañon said that because of ALI’s withdrawal from the project, the Provincial Government will create a committee to assess the situation and come up with proposals, which is to rebid the project which is open to all, including SM Prime Holdings Corporation.
Marañon stressed he will continue with the development plan he has for the Provincial Government, as far as the said property is concerned.
The committee will be composed of some department heads in Capitol, Assessor's Office, the provincial engineer's office, some members of the Provincial Board and the from the private sector.
Marañon furthered that it's already one year that COA failed to act on the contract which was submitted in more than a year already. (Teresa D. Ellera)
Published in the Sun.Star Bacolod newspaper on September 15, 2012.