Joint venture for for Manila Bay reclamation project gets PCC nod

The plan to reclaim about 318 hectares of the Manila Bay and turn it into a mixed-used development property got closer to fruition after the joint venture that will undertake the project secured the thumbs up from the Philippine Competition Commission (PCC).

In a decision dated March 9, released on Friday, the PCC said it has approved the proposed unincorporated joint venture between the Manila City government and Waterfront Manila Premier Development (WMPD).

In 2017, the Manila city government, under then Mayor Joseph Estrada, signed an accord with WMPD, together with the Philippine Reclamation Authority, to jointly undertake the reclamation project —Manila Waterfront City

The Manila Waterfront City reclamation project costs about P34.377 billion, according to the project’s fact sheet.

The project is a raw-land reclamation and development project covering 318-hectares of foreshore and offshore areas in Manila Bay.

Located south of the Manila South Harbor, the planned development will include a central business district, a gateway, a marina, a waterfront, as well as entertainment, health and education hubs.

It aims to help decongest the National Capital Region’s capital and spur business opportunities for Manila.

In its decision, the PCC found that the transaction does not result in substantial lessening of competition in the market for commercial and residential real estate development in the City of Manila.

“There are neither affected customers nor any commercial activity in the relevant geographic market,” the decision read.

“The transaction is a new area of investment formed for the creation of a residential and commercial real estate development project. This will expand the existing market and likely create an opportunity for the emergence of new markets for commercial and residential real estate within the City of Manila,” according to the PCC decision.

Under the proposal, WMPD, a real estate developer under the Crisanta Realty Development Corporation and Pacific Rehouse Corporation, will contribute capital and expertise, while the local government of Manila will contribute rights over municipal waters where the project will be developed.

The resulting unincorporated joint venture shall be governed by a sharing arrangement with 51% for Manila city government and 49% for WMPD.

Reclamation projects, such as the Manila Waterfront City, are assessed by the PRA for their technical, environmental, and socio-economic merits.

The PCC said its clearance is “specific to competition implications in the commercial and residential real estate development markets in the affected areas.”

To date, the joint venture between WMPD and the Manila city government is the 211th transaction cleared by the PCC.

The PCC is mandated under the Philippine Competition Act to review mergers, acquisitions and joint ventures of firms across all sectors, including government-owned companies, that meet the threshold to ensure that these deals will not harm the interest of consumers. -MDM, GMA News