Gov't suffering losses to Ayala led-Ayala Techno hub deal?

Gov't suffering losses to Ayala led-Ayala Techno hub deal?

President Rodrigo Roa Duterte’s directive to review all government contracts with private entities may have opened a can of worms.
The news after the Chief Executive has declared the water agreements with Manila Water and Maynilad as being “onerous” which results to the Filipinos at the disadvantage- another big contract seems to be of the same boat – the govt is at a loss.

It was alleged that the national government is suffering big losses due to the lease of property developer Ayala Land Inc.’s measly payment to the University of the Philippines (UP) for the rental of Technohub property in Diliman, Quezon City.

Aerial view of the 37 hectare Ayala Techno Hub in Quzon city
(photo credit to owner)

Apparently, Ayala land has been paying only PHP20 per square meter in monthly rentals to the UP, a state university.
“Definitely lugi. Lugi ang gobyerno dito (The government is definitely incurring losses here),”  Presidential Spokesperson Salvador Panelo said in a statement.
“Can you imagine, PHP20 less per square meter, I’ve been told by many businessmen, eh sila nga daw (they are paying) PHP500 per square meter, ang iba, PHP200 per square meter,” he added.

In 2006, Ayala Land entered into a 25-year lease agreement with UP to develop and convert the 37-hectare land along Commonwealth Avenue in Diliman, Quezon City into a commercial lot.

Another one from Ayala!!!

Panelo said Malacanang  would review the lease pact because there was apparently “something wrong” with the government’s existing deal with Ayala Land.
He also considered the lease deal as “another rip-off.”

“Titingnan natin kung totoo ‘yun (Let’s see if it’s true). You have to look at the contract,” the Palace official said. “If this is true there must be something wrong with it. So we’ll study it if this is true or not.”
Ayala land, denied Panelo’s claim saying the lease rate paid to UP is  actually PHP171 per square meter.
It also noted that UP, in return, will earn a total of PHP10.23 billion under the 25-year lease contract -- PHP4.23 billion in lease payments and PHP6 billion in investments for the development of 16 commercial buildings.
Panelo stressed despite the figures given by Ayala, he  might ask the President to also look into the lease agreement, which might also put the national government at a disadvantage.

“I will recommend to the President, if this is true on the basis of a study and on the basis of their admission that only PHP10.4 billion will be taken by the government, UP at the end of 25 years, then I will recommend to the President, pag-aralan natin ito, mukhang kawawa na naman ang gobyerno dito (to review the deal as the government might once again suffer),” Panelo said.

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Report from PNA

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