CDC starts privatization of Mimosa Leisure Estate

• Source: http://www.sunstar.com.ph/pampanga/local-news/2015/10/01/cdc-starts-privatization-mimosa-leisure-estate-433427
• Saturday, October 3, 2015

By Reynaldo G. Navales

CLARK FREEPORT -- The Clark Development Corporation (CDC) has initiated the privatization of the Mimosa Leisure Estate.

This was learned from CDC president and chief executive officer Arturo Tugade who said that there were several attempts [by previous CDC management] to privatize MLE and majority of the interested bidders are foreign companies.

“Matagal ng pina-privatize ang Mimosa. Yung mga nakaraan, karamihan mga foreign companies,” he said.

At least nine foreign and local companies have signified their intention on the project and participated in the pre-qualification of bidders, the CDC top official added.

Tugade refused to name the firms but said that half of them are reputable and ‘locally-situated’ or based in the Philippines,” according to Tugade.

“Doon sa siyam na nag-participate, halos kalahati locally-situated. At sa background nila, hindi naman maliliit, yung bang tinatawag nilang reputable at may character sa negosyo,” he said.

After securing the bidding Terms of Reference (TOR), the pre-bid process, which was held two days ago, went smoothly and this will allow the nine companies to submit to the CDC Bids and Awards Committee their respective bids based on the TOR.

With this development, Tugade expressed optimism that the privatization of MLE will materialize.

“Sa aming obserbasyon po kanina at sana tama yung obserbasyon namin baka matuloy na ho ang privatization pero mahirap naman magsalita ng tapos kasi may proseso pa rin yan,” Tugade said.

If the process will be completed within the CDC timeline, the project will be awarded to the winning bidder before the end of 2015, according to the official.

Based on the TOR, the winning firm shall pay the CDC a minimum upfront payment of P800-million. “Ibig sabihin, walang magbi-bid ng lower sa P800- million.”

There should also be a commitment investment of P5-billion for the development of the leisure estate. “Kanilang programa na yon. Para lang magagarantiya kung ano man ang merong improvement ngayon ay hindi mawawala at hindi kukupas.”

The entire Mimosa estate including the 36-hole golf course and Holiday Inn will be run by the winning private firm, Tugade said. “Ide-develop na at ima-manage ng isang pribadong kumpanya.”

The TOR also provides that the winning firm will be free from any labor issues. Tugade made an assurance that the CDC will handle all of the disputes.

“Ibig sabihin aasikasuhin namin ang mga issues ng mga empleyado. Magtutugma ang mga kasunduan ng CDC at mga empleyado. Sana walang maging isyung ganyan,” Tugade said.

In 1998, the CDC regained control over the property from Mondragon Leisure and Resorts Corporation which failed to pay its rental fees to the government.