The city government of Makati on Thursday signed an agreement with a Shanghai-based private firm for a major mass housing project that would benefit more than 5,000 informal settler families in the city.
Mayor Abigail Binay and the Shanghai Nanjiang (Group) Co., Ltd., represented by Savio K. Chu, signed the agreement for a feasibility study, at no cost to the city, on land development and construction of low-cost mass housing units.
The project, according to Binay, is intended to address the situation of the city’s ISFs under the Public-Private Partnership program of the city government.
“This agreement is the initial step toward a public-private partnership venture that can provide a viable and sustainable solution to our housing issues, primarily the shelter needs of informal settlers in the city,” she said.
Binay said the city welcomes the opportunity to undertake a PPP or any of its variants, including a joint venture or build-operate-transfer contract, in line with the PPP Code of Makati enacted in 2014 through City Ordinance No. 2014-051.
“The City of Makati is a strong advocate of the PPP approach towards development. With our country’s renewed ties with China under the administration of President Duterte, we can look forward to more fruitful collaboration with reputable private companies based in China,” she said.
The mayor noted the city’s partner-corporation has extensive experience in real estate and township development, construction, urban planning and settlement.
Under the agreement, the city grants Shanghai Nanjiang exclusive access to relevant documents while it conducts its commercial, financial, legal and technical evaluation of Makati’s existing land inventory and operations.
The city also agrees not to allow any other entity to conduct a similar or related study, and shall not utilize the study if it chooses to pursue the project with another party.
In the event Makati decides to implement the approach and recommendations stated in the feasibility study, and the firm, by itself or in a joint venture or consortium with others, meets the qualification requirements pursuant to relevant laws, rules and regulations, Shanghai Nanjiang has the option to submit an unsolicited proposal to the city.
The city government would then evaluate the proposal to the procedure outlined in the PPP Ordinance, relevant law or regulation. Should Makati decide to implement the study and its recommendations under a competitive selection or open bidding mode, the winning proponent shall shoulder the cost of the feasibility study and related activities.
However, if Shanghai Nanjiang wins the bid, the cost shall automatically form part of the project cost.
The agreement becomes effective once signed by both parties, and shall terminate 190 days from the date of the agreement, unless extended by mutual agreement between the parties.
The agreement is not intended to create a binding and legally enforceable contract between the parties, they said. Failure of either party to fully comply with its provisions “will result only in the termination of the agreement.”
As stated in the PPP Code of Makati, PPP is an essential part of the overall infrastructure reform policy of the city government of Makati.
Founded in 1993, Shanghai Nanjiang (Group) Company Ltd. operates in real estate, mining and energy, biomedicine, new materials, and venture capital investment sectors. It is based in Shanghai, China with operations in China, Mongolia, Tibet, Mexico, Africa, and Australia.
The company develops residential communities, private resort-luxury villas, and hotel-serviced community complexes.