State-owned Bases Conversion and Development Authority plans to subject the proposal of Megaworld Corp. to develop the 8.38-hectare North Bonifacio Lots for at least P15.6 billion to a “Swiss challenge.”

“We are highly optimistic that the proposed joint venture will materialize because it is market-driven, having gone through detailed evaluation and to be further subjected to a Swiss challenge,” said BCDA president and chief executive Narciso Abaya.

The guidelines of the National Economic and Development Authority on joint ventures between the government and the private sector require unsolicited proposals to undergo a competitive challenge.

The minimum bid for the Fort Bonifacio property is P2.789 billion, or P33,283.88 per square meter, which is the bid price of Metro Pacific Corp. when it won the rights to develop the Bonifacio Global City in the 90s.

“Sometimes biddings fail because of the difficult economic environment. But this time, we know the value and the terms are market-driven, there is at least one proponent who will accept the terms,” said Aileen Zosa, vice president for business development.

She said Megaworld’s proposal required an investment commitment of P15.6 billion. The company has proposed a mixed-use development of more than 500,000 sq. m. of gross floor area comprising mostly of residential areas as well as office and limited retail components.

She said other proponents could propose different land use for the property. But the limitations on the retail component, which must not exceed 35,000 sq. m. of gross floor area, still stands to prevent competition with Market! Market!, which is a joint venture retail development between BCDA and Ayala Land Inc.

Zosa said interested proponents such as the Metrobank-Federal Land group, which owns the property across North Bonifacio, Shimao Group and Ayala Land, had until May 8 to challenge Megaworld’s proposal.

BCDA will issue the terms of reference starting April 29.

Zosa said Megaworld could choose to match a superior offer from other proponents.

“We are hopeful that we can dispose this property. There is still confidence in the economy even if there is a global crisis. Our property sector is resilient,” said Zosa.