October, 16, 2020Author:kralvarez

Consistent with its commitment to transparency, the Bases Conversion and Development Authority (BCDA) has clearly and thoroughly always responded to all opinions and observations—including those made by the Commission on Audit (COA)—in relation to its joint venture agreement with MTD Capital Berhad for the construction of sports facilities in New Clark City. 


The project is supported by the Asian Development Bank (ADB), which provided transaction advisory services to BCDA “to ensure transparency and swiftness of the project.” [see link: https://www.adb.org/news/videos/how-public-private-partnership-building-new-smart-city-philippines


It is also backed by the October 2, 2018 legal opinion of the Office of the Government Corporate Counsel (OGCC), which states that the BCDA is well within its legal and corporate charter to undertake the project through a joint venture, which was based on BCDA’s guidelines and was subjected to a competitive Swiss challenge. 


To quote OGCC Opinion No. 182, s. 2018:


“Development of the Sports Facilities


Public-Private Partnership (PPP) broadly refers to long-term, contractual partnerships between the public and private sector agencies, specifically targeted towards financing, designing, implementing, and operating infrastructure facilities and services that were traditionally provided by the public sector. It embodies optimal risk allocation between the parties – minimizing cost while realizing project development objectives.  Thus, the project is to be structured in such a way that the private sector gets a reasonable rate of return on its investment.  Under the Philippine setting, there are six (6) available PPP frameworks, viz:


1. Build-Operate-Transfer;

2. Procurement;

3. Joint Venture;

4. Lease;

5. Concession; and

6. Disposition or Divestment


Thus, BCDA can undertake the Project including the development of the Sports Facilities using any of the above enumerated PPP frameworks. 


x x x


Considering that the legal, financial and technical aspects of the Project should be taken as a whole, it is our opinion that the choice of modality or legal framework of the Project is part of the business prerogative of the BCDA in pursuance of its statutory mandate to develop and accelerate the sound and balanced conversion of Clark military reservations and its extensions.


x x x


In view of the discussion above and the representations of BCDA, we confirm that the provisions of the executed JVA and the legal framework of the Project are in compliance with the existing laws, rules and regulations.”


The first phase of the New Clark City project, which includes the internationally-certified sports facilities, was completed on time for the country’s hosting of the 2019 SEA Games. 


New Clark City is home to the first world-class sports complex in the country since the 1930s—a proud milestone not only for our national athletes, but for the entire country. It brought tremendous pride and honor to the national sports community and all those who witnessed the historic SEA Games in 2019.


BCDA Corporate Center

The BCDA Group is a prime mover of national development. We transform former military bases and properties into premier centers of economic growth in partnership with the private sector with integrity, excellence and efficiency in the stewardship of government resources. We create sustainable urban communities to uplift the lives of Filipinos.

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