TIEZA offers assets for joint ventures with private sector
MANILA, Philippines — The Department of Tourism (DOT) has opened its infrastructure and investment agency’s assets to public-private partnerships (PPP) in a bid to attract private investments and fasttrack tourism growth.
“The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) board approved the inclusion of all TIEZA assets and tourism enterprise zone (TEZ) development projects in the Public Private Cooperation Program (PPCP), adopting joint venture and management contract as additional modalities for privatization, in support of the agency’s goal to generate more private sector partners,”the DOT said in a statement.
The TIEZA board earlier announced that it approved the joint venture guidelines (JVG) that will be used to allow private sector participation in the development, operation, management and/or disposition of TIEZA properties and facilities, whether owned, administered or controlled.
Under the guidelines, the joint venture partners will be selected either through a competitive selection or through a negotiated competitive challenge.
The prospective investors may respond to a solicited proposal initiated by TIEZA or submit their own unsolicited proposal which offers the “best and most innovative” solution or plan to develop and manage a property/facility currently managed/owned or controlled by TIEZA
TIEZA assured the public that they will ensure transparency and accountability throughout the entire process.
In addition, a joint venture selection committee (JVSC) shall be created to handle the selection and evaluation of proposal under the guidelines.
TIEZA said the opening up of its assets is seen to increase the chances of asset-based investments and promote more inclusive growth across the country, as well as expedite expected developments in TEZs through public-private cooperation.
Tourism Secretary Bernadette Romulo-Puyat said the opening of TIEZA assets will help accelerate tourism investments and development of tourism infrastructure in the country, enhancing revenue streams for the agency with less financial exposure of government.
“We want to broaden the scope of privatization as well as provide additional options of modes of contractual arrangements which the local or foreign investors can avail,” TIEZA chief operating officer Pocholo Paragas said.
Through the proposed JV, TIEZA will retain control and supervision of the assets but will be able to tap on private sector expertise on the day-to-day operations of the assets as well as private sector funding of necessary improvements of the assets.
During the meeting, the board also approved the initiation of public bidding for two operating properties, namely Club Intramuros Golf Course (CIGC) and Balicasag Island Dive Resort (BIDR) for the last quarter of 2019, as well as the minimum financial bid parameters that will be offered to prospective private sector investors.
“With the expertise and capital of the private sector, TIEZA hopes to improve these facilities and enhance the operations of the two properties, which have been incurring losses in the past years,” DOT said.
CIGC is one of the oldest golf courses in the Philippines. It is located at the heart of Manila and near government offices, universities, hotels, museums, commercial establishments and identified as the site for a cruise port. It also offers the only night golf in Manila.
BIDR, on the other hand, is the only resort situated in the entire Balicasag island, within the municipality of Panglao, Bohol.The entire island has a total land area of 25 hectares.
The resort occupies 1.5 hectares of the island.
Moreover, other notable TIEZA assets that will also be offered for privatization include Banaue Hotel in Ifugao, Argao Beach Club in Cebu, Zamboanga Golf Course, and properties in Matabungkay, Batangas, Moalboal, Cebu, and Talisay, Batangas.
Paragas said TIEZA has a total of 49 assets across the country.
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