Thursday, October 23, 2008 CDC denies request for MOU extension
CLARK FREEPORT -- The Clark Development Corporation (CDC) Board of Directors did not grant the request of Waterfront Philippines Inc. (WPI) to extend the period of the memorandum of understanding (MOU) it signed with the state-owned CDC.
According to CDC President Benigno Ricafort, the Board -- during its October 17 meeting -- declared the bidding process a failure and decided not to extend the MOU period because the Philippine Amusement and Gaming Corporation (Pagcor) imposed an additional condition on the issuance of a casino license to the winning bidder which was not imposed by the bidding Terms of Reference (TOR).
On July 14, 2008, CDC and WPI signed an MOU, which is valid for 90 calendar days. WPI committed to pay the initial sum of P930 million within the 90-day period of the MOU on or before October 11, 2008.
However, WPI requested for a 60-day extension of the deadline, "or until such time that a legal and binding solution can be worked out with all affected parties," particularly on the matter of a gaming license from the Philippine Amusement and Gaming Corporation (Pagcor).
Ricafort stressed that the conditions that Pagcor had imposed on WPI "has materially affected the original terms and conditions imposed by CDC upon any prospective bidder."
He added that WPI, in its September 30 letter to the CDC, emphasized: "the heart of the estate's operations lies in the gaming industry, and without clear right to obtain a license that has equal footing on a level playing field with other licenses, the financial viability of the whole project is greatly imperiled."
Ricafort furthered that "It is unfortunate that the position now of Pagcor in issuing a casino license to the winning bidder, is contingent upon the latter's settlement of the arrears of the previous operator, which is claimed by Pagcor to be due them."
He said: "This is inconsistent with our issuances in this bidding and previous representations by Pagcor to CDC, and constitutes a supervening event that materially affected the terms of this project." (RGN/IOF)
