Lease of Fujimi property set back anew

Negotiations for the lease of a government property in Japan have failed, with interested parties unable to meet financial requirements, a Finance official said. "There were six parties before, but they did not satisfy the requirement on net worth," Finance Undersecretary Estela V. Sales told reporters on Friday. The government sought a negotiated development for its 4,361-square meter property located in the district of Fujimi-Chiyoda-Ku in Tokyo, after an auction failed in December. The lease was supposed to generate P3 billion for the government, which needs the money to plug a deficit expected to total P293 billion this year. Sales said the government might not comply with its first-quarter deadline to lease out the property, which was part of Japan’s World War II reparations to the Philippines. The property now serves as the residence of the Philippine ambassador to Japan. Sales said the government had written the association of contractors in Japan to drum up interest in the property. "We might also ask the local contractors if they are interested in developing the property. The local contractors could tie up with Japanese contractors," she added. In a separate telephone interview on Sunday, a member of the technical working group of the bid and awards committee for the Fujimi property said the committee had decided to seek the help of the Philippine embassy in Japan, as well as the Philippine Overseas Construction Board (PCOB) in finding parties interested in leasing the property. "The [committee] decided to request the [Department of Foreign Affairs] to ask the Philippine embassy in Japan and the POCB to provide a list of 10 reputable real estate developers in Japan and those operating overseas. The letter was given on Thursday last week," said the official who requested anonymity. The board, which is under the Consumer Welfare Trade and Regulation Group of the Trade department, regulates and controls the participation of construction contractors and consultants in overseas construction projects. The official said once they receive the list, they would write each firm on the list to ask them to participate in the negotiated development of the property. Should the firms meet the requirements under the terms of reference, which include a net worth of ¥30 billion and technical requirements, they would then be asked to submit their bids. "We will try to complete the negotiated development of Fujimi within [this month]. If that is not done, then the [committee] will have to meet again to set new dates," he said. Apart from the lease of the Fujimi property, the government is also eyeing to sell the Food Terminal Inc. and its stake in the Philippine National Oil Co.-Exploration Corp. and the Malampaya natural gas project. — Louella D. Desiderio, BusinessWorld