Ayala, Capitol contract still binding - Guv

NEGROS Occidental Governor Alfredo Marañon Jr. clarified on Thursday that the contract between the Provincial Government and Ayala Land Inc. (ALI) is still binding, despite ALI’s withdrawal from the Capitol projects.

Marañon said the Provincial Government is still appealing to ALI to reconsider its decision.

The only barrier to the contract between the Capitol and ALI is the pending case filed by SM Prime Holdings Inc. (SMPHI) against the Provincial Government and the members of the Provincial Bids and Disposal Committee on SMPHI’s assertion that it won in the July 2011 bidding over ALI.

"Once the decision of the local court comes out, we are hoping ALI to reconsider its decision," Marañon said, adding that the contract between the Provincial Government and ALI is not yet legally terminated, thus it is sill binding.

"I believe we can negotiate again with ALI," Marañon said.

The Commission on Audit has already approved the contract for the sale and lease of the 7.7-hectare property between ALI and Capitol.

In a letter to Marañon, Emilio Tumbocon, ALI senior vice president and group head, stated: “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 Leaseafter. 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. 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 said the negotiation with ALI on the project is not yet over.