ILOILO CITY - Former Senate President Franklin Drilon yesterday deplored the delay in the bidding of the site of the old Iloilo airport, accusing government agencies of "bungling" the privatization of the 54-hectare property.

Drilon said the bidding for the property in Madurriao District failed twice because the Privatization Council set a floor price higher than the appraised value.

The council is tasked to privatized government assets and is composed of the Departments of Finance, Justice, Budget and Management, Trade and the National Economic Development Authority.

Drilon said in a telephone interview that the floor price of P1.2 billion was higher compared to the appraised value of P800 million to P1 billion as recommended by a private appraisal firm. He blamed the high price as the cause of the failed bidding after prospective buyers submitted bids lower than the floor price.

Of the five companies that were pre-qualified to bid, only three went to the actual bidding on May 9.

Robinsons Lands submitted the highest bid of P1.09 billion followed by Empire East (P701 million) and SM Prime (P435.79 million). Rockwell Land Corp. and Ayala Land Inc. backed out.

Representatives of the bidders reportedly gave a common comment that the government's minimum price was too high.

Drilon said the Privatization Council held another conference with bidders on June 13 but the highest bid for the property was reduced to P908 million.

"From reports that I gathered, it is obvious that the Privatization Council has bungled the process..." Drilon said in a statement issued.

He also said "People in the know could not understand why certain members of the Privatization Council were insistent" on the P1.2 billion floor price rather than the appraised value.

He said he suspected that a negotiated deal could be in the offing.

"I wonder if the setting of the much higher floor price was deliberate done to cause a failed bidding in order to justify a negotiated sale," he said in his statement.

In a negotiated sale, the government is allowed to sell a property at 10 percent below the floor price.

Finance Undersecretary John Phillip Sevilla, chairman of the bids and awards committee of the old Iloilo airport, refused to comment on Drilon's statement when reached by telephone.

He confirmed that there are appraisals between P800 million to P1 billion. But he said there is no law that limits the minimum bidding price to the appraised value.

"It's a judgment call of the Privatization Council," said Sevilla. He said they are studying the minimum selling price because of the failed bidding "We had planned to sell it at P1.2 billion and we failed. So we are discussing what is the appropriate price," he said.

Iloilo City Mayor Jerry Trenas said the government is rushing to sell the prized property, located 10 minutes from the city proper.

The property which hosted the airport until its transfer to Cabatuan town Iloilo is being eyed as an Information and Communications Technology (ICT) park, convention center and a hospital site.*NB

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