New Clark City JV ‘aboveboard’


    The joint venture agreement (JVA) with MTD Capital Berhad for the development of New Clark City Phase 1A, which includes the sports facilities being used in the SEA Games, that was implemented is aboveboard, according to Government Corporate Counsel Elpidio Vega.

    The Bases Conversion and Development Authority (BCDA) in a statement said the JVA underwent all the legal requisites and processes.

    BCDA was advised by the Asian Development Bank on all financial, technical and legal aspects of the project from beginning to end.

    “This included the mode of building the sports facilities that went through public procurement through a competitive Swiss challenge,” said Vivencio Dizon, BCDA president and chief executive officer.

    Dizon said the sports facilities were not part of the original proposal for MTD for Phase 1 but BCDA required that these be included to fulfill requirements for the SEA Games.

    He said government will not pay a single centavo to the developer until the sports facilities are completed and accepted.

    Dizon said MTD borrowed from Development Bank of the Philippines under commercial terms without any guarantees from government.

    MTD’s mother company in Malaysia gave a guarantee on the loan.