MTD Capital submits proposal for Clark gov’t center

MALAYSIA-BASED MTD Capital Berhad has submitted a proposal for the development of the planned New Clark City National Government Administrative Center (NGAC).

In a statement, the Bases Conversion and Development Authority (BCDA) said it received a P121.8- billion proposal from MTD Capital for a joint venture agreement to finance as well as provide technical and engineering expertise for the construction and operations and maintenance of the 207-hectare NGAC.

The company was previously reported to have been interested in developing the NGAC. BCDA VicePresident Joshua M. Bingcang told BusinessWorld that BCDA received the proposal this month.

The NGAC is a major component of New Clark City, a planned new metropolis in the Clark Special Economic Zone in Capas and Bamban in Tarlac, and the flagship project of BCDA. Aside from the NGAC, New Clark City will include mixed-use real estate developments, an agro-industrial park, and a food-processing terminal, with the aim of spurring development outside Metro Manila and easing congestion in the capital region.

MTD Capital proposed that the NGAC house satellite and major administrative offices of certain government agencies, similar to the structure of government centers in Putrajaya in Malaysia and Sejong City in South Korea.

Also included in the proposal are the construction of areas for embassies and international schools, housing facilities for government employees, sports facilities, a central communications and security command center, public schools, a government hospital, a public library and buildings for community centers.

“We have to evaluate the proposal, its features, to see if it aligns with the master plan,” Mr. Bingcang said in a phone interview. BCDA’s proposed site plan for the first phase of the project costs P17 billion and covers 50 hectares of the 207-hectare total area of the NGAC.

Mr. Bingcang said the BCDA will have to determine whether to consider the offer as an unsolicited proposal.

The proposal will then have to follow the process for unsolicited proposals, which includes a Swiss challenge.