2 firms offer to buy old airport site
After two failed attempts to bid the site of the old Iloilo airport, two prospective buyers have submitted proposals to acquire the 54-hectare prime lot, according to the head of the bids and awards committee of the Department of Finance yesterday.
Finance Undersecretary John Phillip Sevilla said that two parties had beaten the deadline yesterday to submit negotiated proposals for the old airport site in Mandurriao District.
Sevilla refused to disclose the identities of the interested buyers but said one of them also submitted its bid in the two previous bidding of the property. He also refused to disclose the proposed price submitted by the two parties.
"The Privatization Council will decide in two or three days on the proposals," Sevilla said in a telephone interview.
The council is tasked to privatize government assets and is composed of the Departments of Finance, Justice, Budget and Management, Trade and the National Economic Development Authority.
Two more interested buyers are expected to formally submit their proposal for the property, according to Sevilla.
The Privatization Council has pegged the minimum price of the property at P1.2 billion. Sevilla said minimum price remains the same even after the failure of two previous attempts to bid off the property.
Of the five companies that were pre-qualified to bid, only three went to the actual bidding on May 9.
Robinsons Lands submitted the highest bid of P1.09 billion followed by Empire East (P701 million) and SM Prime (P435.79 million). Rockwell Land Corp. and Ayala Land Inc. backed out.
Representatives of the bidders reportedly gave a common comment that the government's minimum price was too high.
The Privatization Council held another conference with bidders on June 13 but the highest bid for the property was reduced to P908 million.
Former Senate President Franklin Drilon earlier blamed the council for the failure of the biddings saying that the floor price of P1.2 billion was higher compared to the appraised value of P800 million to P1 billion as recommended by a private appraisal firm.
He blamed the high price as the cause of the failed biddings after prospective buyers submitted bids lower than the floor price.
Sevilla said they asked interested buyers to submit their proposed price for the property, including those who had submitted bids, after the DOF was approached by interested buyers of the property two weeks ago.
He said they sent letters to all those who have expressed interest in buying the lot asking them to submit their proposals not later than yesterday.
Iloilo City Mayor Jerry Treñas welcomed the report but said he remained confident that the old airport site will be sold soon at the appropriate time.
"I'm sure there will be a lot of parties interested to invest in that site because of the potentials of the area and the economic development in the city," Treñas said in a telephone interview.