AFTER two failed public biddings, the Iloilo City Government is ready to negotiate the sale of the more than 6.9 hectares government-owned lot in the village of Ungka I, Pavia to any interested person or entity.

City administrator Norlito Bautista said no bidders appeared during the second auction conducted last October 30.

Rules of the Commission on Audit (COA) provide that after two failed biddings, the local government owner has the right to sell the property through a negotiated sale.

Bautista said a disposal team was created to draft the terms of agreement with the prospective buyer of the lot at the cost of no less than P2,500 per square meter as prescribed and recommended by the COA.

He said the lot price would reach to P174,250,000 and interested buyers will have to negotiate directly with the disposal team composed of the city administrator, chiefs of the general services office, assessor and treasurer.

The city mayor will approve the sale, while the buyer will have to forego paying the bond as required in the auction bidding.

The government-owned lot was the former site of the low cost housing project for city hall employees but was abandoned by contractor Ace Builders and Enterprises (ABE) in 2007.

The company and the City Council had a disagreement when the latter found out that substandard construction materials were used in the housing units.