MANILA, Philippines — The Bases Conversion Development Authority (BCDA) expects to receive an improved offer from SM Land Inc. (SMLI) for the unsolicited offer for a joint venture development of the prime 33.1-hectare Fort Bonifacio property.

BCDA president and CEO Arnel Casanova told reporters they are meeting this week with the SMLI, which unilaterally promised to improve its offer.

Once the unsolicited offer is approved, the BCDA can already call for a Swiss challenge on the SMLI offer.

“The President asked us to look into the deal again and see if there is room for improvement,” he said. If the offer is not improved, the BCDA has also the option to terminate it although he said such event is unlikely to happen.

BCDA has already called for a Swiss Challenge on the SMLI offer last year but there was no challenger. It even extended the deadline for the submission of eligibility documents to developers who want to challenge the unsolicited proposal.

The extension of the Swiss Challenge then was meant to allow more time for the BCDA, Department of National Defense and the Armed Forces of the Philippines to resolve certain issues on relocation and replication of facilities located in the subject properties, among others.

The original deadline was set on September 20, 2010 but there was a request by a firm during the pre-eligibility conference to extend the deadline to give more time to gather requirements from government offices. The deadline was then extended to October 20, 2010.

BCDA then said that the relocation and replication of the structures occupying the properties are crucial to the development timetable of the winning proponent, thus, resolving the issues thereon will lower the risk for the proponents.

Based on its proposal, SMLI offers an upfront cash of P2 billion upon signing of the JV contract and secured yearly revenues, totaling P25.9 billion for 20 years, for a present value of P36,900 per square meter.

Investment commitment of SMLI for the project stands at a minimum of P20 billion. SMLI shall advance the funds for and undertake the replication of military facilities affected by the development of the property.

Casanova said that they have not conducted a new property appraisal for the property in South Bonifacio but the latest privatization for a nearby JUSMAG property carried a price of P33,000 per square meter.