State-owned Bases Conversion and Development Authority (BCDA) awarded to Megaworld Corporation the contract to develop the prime 34.5-hectare JUSMAG property located along Lawton Avenue in Fort Bonifacio, Taguig City at the back of posh Forbes Park.

BCDA Executive Vice President Aileen An. R. Zosa said Megaworld was named winning private sector participant for the competitive selection for BCDA’s joint venture development partner.

Zosa said Megaworld’s proposal was the best/most advantageous among the offers after the completion of the post-qualification as provided for in the terms of reference.

Megaworld’s bid price of P31,111.00 per sq.m for the 345,042 sq.m JUSMAG property outbidded the proposals of the consortium of Filinvest Land Inc. and Filinvest Alabang Inc., P26,187.51 per sq.m; Ayala Land Inc., P25,100.00 per sq.m; and Robinsons Land Corporation, P23,888.00 per sq.m.

In the Megaworld proposal, the nominal value of secured net cash inflows to BCDA amounts to P22.29 billion over 23 years compared to the consortium of Filinvest Land Inc. and Filinvest Alabang Inc., P17.03 billion; Ayala Land Inc., P13.766 billion; and Robinsons Land Corporation, P12.59 billion.

Zosa said that the planned development of the JUSMAG property is “primarily residential, with retail use only allowed as support to the residential area.”

She noted that the maximum allowable gross floor area for the said property is 1.383 million sq.m. The minimum investment commitment of the winning private sector partner Megaworld Corporation is P18.8-billion over a period of 20 years.

Zosa said that the development of the JUSMAG property would generate funds for the AFP modernization program and BCDA’s conversion program.

She also added that the development of the said property would be a significant contribution to the government’s economic program, considering the job creation and multiplier effects arising from the development.

Zosa stressed that the competitive selection process was started in December 2009, went through eligibility phase in January 2010, and on to the submission of final and technical proposals last March 3, 2010.

“This bidding which spans almost five months will culminate in the signing of the joint venture agreement before end-April 2010,” Zosa added.