BCDA- New Clark City deal ‘most transparent, aboveboard’

BCDA: New Clark City deal ‘most transparent, aboveboard’

The Bases Conversion and Development Authority (BCDA) on Monday, December 2, said that
its joint venture agreement (JVA) with MTD Capital Berhad for the development of New Clark
City Phase 1A, which includes the sports facilities being used in the SEA Games, was
implemented in the “most transparent” and “aboveboard” way possible.

In a press conference held with Government Corporate Counsel Atty. Elpidio J. Vega, BCDA
President and CEO Vince Dizon laid down the facts, emphasizing that the JVA with the
developer underwent all the legal requisites and processes, and that it is very advantageous to
the government.

According to Dizon, “the OGCC never gave an unfavorable opinion” in the January 30, 2018
contract review by OGCC.

“The OGCC gave its comments and suggestions to which BCDA addressed and clarified. The
OGCC, in response to clarifications made by BCDA, unequivocally said that the ‘provisions of
the executed JVA and the legal framework of the Project are in compliance with the existing
laws, rules and regulations’,” Dizon said, citing the latest October 2, 2018 opinion of OGCC.

Vega further validated this during the press conference, saying, “the contract review which was
issued way back in January was indeed not a negative opinion or contract review but, in fact, it
approved and gave the go signal to BCDA.”

“I hereby confirm that the same is really aboveboard and we found no legal impediment to its
execution,” Vega said.

BCDA was advised by the Asian Development Bank (ADB) on all financial, technical, and legal
aspects of the project from beginning to end.

“This included the mode of building the sports facilities that went through public procurement
through a competitive Swiss challenge,” Dizon said, refuting reports that the deal did not go
through public bidding.

On the unfounded allegation that the deal was designed to “defraud the government,” Dizon
said “the sports facilities were not part of the original proposal for MTD for Phase 1. It was
BCDA who required that they be part of Phase 1 to fulfill requirements for the South East Asian
Games 2019.”

“The contract is very advantageous to the government because the government will not pay a
single centavo to the developer, until the sports facilities are completed and accepted,” he

The New Clark City sports facilities, which include the Athletics Stadium, Aquatics Center and
the Athletes’ Village, are already being used by athletes and spectators in the ongoing 30th
South East Asian Games.

Dizon further pointed out that “MTD borrowed from DBP under commercial terms without any
guarantees from the PH government, including BCDA.”

“The only guarantee submitted to DBP is a guarantee by MTD’s mother company in Malaysia,”
he said.


Leilani Barlongay-Macasaet
Assistant Vice President for Corporate Communications

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