By Bernie Cahiles-Magkilat
The Bases Conversion and Development Authority (BCDA) yesterday defended its joint venture deal with MTD Capital saying its Malaysian partner used its own resources to fund the construction of sports facilities to be used for the SEA Games in Clark.
In a statement, BCDA said that its project partner, development firm AlloyMTD, “undertook the construction and the development of New Clark City Phase 1A, which includes the sports facilities, through its own sources of financing.”
It explained that one of the payment options in the joint venture terms is to pay AlloyMTD ₱2.2 billion per year; but to avoid paying more interest charges, the government opted to pay in full upon completion and acceptance of the sports facilities as approved and reflected in the 2019 General Appropriations Act (GAA).
The developer has undertaken the project of building New Clark City Phase 1A through its own sources of financing.
To this date, the government has not paid a single centavo to AlloyMTD, the statement added.
BCDA is headed by Vivencio Dizon, who was recently appointed as Presidential Adviser for flagship projects.
Earlier, Senator Franklin Drilon questioned the ₱50-million cauldron project to be used for the SEA Games. Another report by Rappler also that the Office of Government Corporate Council has reviewed the terms of the joint venture contract. Rappler said in its report that MTD will get s 50 percent share in income of the facilities for 25 years.
Reacting to the Rappler report, BCDA said that the national government opted to pay in full upon completion and acceptance of the sports facilities as approved and reflected in the 2019 General Appropriations Act (GAA) passed by Congress.
This means that upon full payment and complete turnover to BCDA, BCDA will receive 100% share of the revenues. To date, BCDA has not made any payment to MTD.