Failure by the Bases Conversion Development Authority (BCDA) to deliver the JUSMAG property on time has undaunted Megaworld Corp. on its timetable on converting the 34.5-hectare property into a mixed-use center.
A report of the Commission on Audit (COA) shows BCDA has been delayed in evicting the informal settlers from the JUSMAG property that at the end of 2011, the BCDA failed to deliver the property to Megaworld.
As a result, the Andrew Tan company did not remit the P873.41 million due as of April 12, 2011. That amount represents the annual payment for the next 23 years of the minimum annual secured revenue share (MASRS).
BCDA president and chief executive officer Arnel Casanova said the agency has so far cleared the informal settlers since last year.
Casanova said BCDA has Megaworld’s payment last year. Megaworld is expected to pay again this month.
“Megaworld is on track with its development,” said Casanova, when asked how the delay to deliver the property affected the company’s timetable.
BCDA entered into a joint venture agreement with Megaworld effective April 13, 2010 for the privatization of JUSMAG, which makes up a portion of the Bonifacio South Properties located south of Bonifacio Global City .
The land is the sole contribution of the BCDA in the joint venture. Megaworld has committed to invest a minimum of P22 billion over a period of 20 years for developing the land into a residential and mixed-use property,
The COA report said Megaworld had stood firm that it was withholding the remittance of the MASRS for BCDA’s failure to clear the JUSMAG property of informal settlers.
The non-remittance of Megaworld’s payment has caused the understatement of the income of BCDA for 2011.
JUSMAG was privatized in 2009 – now McKinley West.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
source: Malaya
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