Gov’t undecided over ‘Payanig’

Amonth after the failed auction of the “Payanig sa Pasig” lot, the government is still undecided on how to dispose of the controversial asset. The government-owned andcontrolled Independent Realty Corp. (IRC) is yet to make a recommendation to the Presidential Commission on Good Government (PCGG) on how to proceed following the failed public bidding of the 18.4-hectare land within the Ortigas Business District.

"Right now, we are still discussing options at the IRC level. Hopefully, by mid-September, we will come up with a recommendation," IRC general manager Luis Quiogue said.

To recall, the July 14 auction failed after only Robinsons Land Corp. submitted a bid for the Payanig sa Pasig property, which has a 16.5-billion floor price.

Of the eight firms that bought bid documents, only three companies were prequalified: Robinsons Land Corp., Next Urban Alliance, and Megaworld Corp.

Following the failed auction, the government can either rebid the property or enter into a negotiated sale. But either way, the IRC and PCGG still have to get the nod of the Privatization Council under the Department of Finance.

"We are still waiting for a meeting schedule with the PCGG Legal and the Office of the Solicitor General," Quiogue added.

Although getting the nod of the Privatization Council will take time, PCGG officials earlier said they target to come up with a decision within the third quarter.

A mixed-use property within the Ortigas Business District, the Payanig sa Pasig lot is bounded by three major thoroughfares, Ortigas Avenue, Meralco Avenue and Doña Julia Vargas Avenue. The “Payanig sa Pasig” property is considered as the crown jewel of the properties surrendered by Jose Y. Campos to the PCGG in 1986.

The Privatization Council of the Department of Finance has approved the sale of Payanig sa Pasig lot last February 26 at a minimum bid price of P16,450,553,000, which translates to P89,461.10 price per square meter. The asset is being privatized on “an as-is, where-is” basis, considering the complications on its ownership and possession.

Other claimants of the property include BLEMP Commercial of the Philippines as well as Ortigas and Company.