THE TRUTH MUST BE TOLD: THE NAYONG PILIPINO PROJECT

The NayonLanding integrated resort project of Landing International Development Ltd. (LIDL), the Hong Kong-based resort developer, has been mired in controversy over erroneous and misleading allegations. At the center of it all is the Nayong Pilipino Foundation (NPF) whose trustees and officials have been unfairly accused of graft and corruption in connection with this project. The NPF, which owns the 9.57-hectare property in the Entertainment City in Parañaque City, approved the project and entered into a lease contract with LIDL, through its local subsidiary Landing Resorts Philippines Development Corp. (LRPDC).

Despite the fact that ALL procedural and legal requirements were strictly followed by the NPF Board in getting the project off the ground, opponents and critics of the project had shamelessly foisted lies about the project, and falsely and maliciously accused the NPF, its trustees, and its officials of graft and corruption in approving the deal with LRPDC.

Wewere not given our day in court. Webecame targets of a vicious smear campaign solely aimed at derailing the NayonLanding project, ostensibly over charges of corruption. This is a blatant lie. The truth must be told, and this is the truth:

Lease period

The lease contract between NPF and LRPDC is for 25 years, renewable for another 25 years. There is a provision in the contract that states that if the application of the lessee (LRPDC) for the designation of the leased property as a Tourism Enterprise Zone (TEZ) is approved by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), then the initial lease period shall be 50 years instead of 25. This is perfectly legal, and specifically allowed and granted by Republic Act No. 9593, otherwise known as the “Tourism Act of 2009,” and Republic Act No. 7652, otherwise known as the “Investor’s Lease Act.”

Nowhere in the lease contract is it stipulated or even hinted that the lease period would be 70 years!

Lease rates

The approved lease rate for the NPF property to be paid by LRPDC is P360 per square meter per month or a monthly rent of P34,460,640. In addition, NPF will receive 10% of net profits from the operations of the three theme parks and attractions which translates to P210 per square meter per month. As such, the effective lease of the property to be paid by LRPDC is P570 per square meter per month.

Also, LRPDC is obligated to pay advance rental for the succeeding 24 months equivalent to P827,055,360. Other pertinent income provisions include an annual escalation of the monthly rent equivalent to the annual rate of inflation of the immediate preceding year, and a guarantee deposit equivalent to two months’ rent.

Finally, LRPDC will fully finance the construction of the three theme parks at a cost of $400 million or P21.4 billion. The parks shall be turned over to the government at the end of the lease term. These facilities will be state-of-the-art and they superbly depict the history, culture and traditions of the Philippines. We expect these facilities to be grander than Universal Studios and Disneyland. Ultimately, we expect them to catapult the Philippines into being the number one tourist destination in Southeast Asia.

It is important to note that the P360 per square meter per month basic lease rate is much higher than what other integrated resorts leasing government property in the area are paying. Basic lease rates of integrated resort operators range from P156 per square meter per month to P300 per square meter per month. It is important to point this out because our guiding principle when we were negotiating this contract with LRPDC has always been this: to give the government and the Filipino people the best deal possible because the nation deserves no less.

And yet we don’t hear these critics questioning these other lease contracts. Why?

Public bidding: Not required

Another issue raised by the project’s opponents is that of the need for public bidding. In this case, public bidding is not required, precisely because it is a lease. Under Republic Act No. 9184, otherwise known as the Government Procurement Reform Act, and Executive Order No. 301 (Decentralizing Actions on Government Negotiated Contracts, Lease Contracts and Records Disposal), the lease of the NPF property to LRPDC need not go through public bidding and is, in fact, specifically excluded from coverage of provisions on public bidding.

NEDA approval: Not required

Much has been said about the alleged need for the NayonLanding project to be endorsed and approved by the National Economic Development Authority (NEDA). Again, the law—specifically Republic Act No. 6957 as amended by Republic Act No. 7718 (Build Operate Transfer Law)—says a Contract of Lease is not subject to prior approval by NEDA.

The lease of the Nayong Pilipino property is, therefore, absolutely legal!

Our critics, and opponents of the NayonLanding project, have deliberately and maliciously peddled lies for so long at the expense of innocent people. Greed and vested interest were apparent in their actions, but their greatest crime was to manipulate and twist the facts and, in the process, fool and mislead the authorities. Ultimately, they intend to deprive the people of millions of pesos in government revenues that will be generated by the project and the more than 10,000 jobs that will be created when the facility becomes operational, not to mention the enjoyment and pride that every Filipino is bound to experience in the NayonLanding facility.

Tama na ang kasinungalingan at panlilinlang. We are innocent of the utterly baseless charge of corruption. We shall not allow our names and reputations to be recklessly smeared by entities who have selfish and monopolistic business interests to protect.

As God is our witness, we firmly believe that we shall be exonerated of all the accusations raised against us simply because truth is on our side.