ABS-CBN News Online Beta

Waterfront seeks 60-day extension for Mimosa payment

abs-cbnNEWS.com | 10/14/2008 6:16 PM

Printer-friendly version | Send to friend

The Gatchalian-led Waterfront Philippines, Inc. (WPI) has asked Clark Development Corp. (CDC) a 60-day extension to give its payment in relation to the contract to develop, operate and manage the 215-hectare Mimosa Leisure Estate in Clark, Pampanga, which it won in July.

WPI said it needs the extension to resolve the issuance of the casino license by the Philippine Amusement and Gaming Corporation (PAGCOR) and the joint efforts and cooperation of both WPI and CDC in obtaining the license and in pursuing the successful privatization of the former Mimosa Leisure Estate.

WPI was originally given by CDC 90 days to pay some P870 million but the former failed to finish the payment by October 11.

WPI, which operates a chain of Waterfront Hotels in Cebu and Davao, as well as the Manila Pavilion Hotel on UN Avenue in Manila, bested other local and foreign bidders for the Mimosa Estate.

CDC has to rebid the privatization of the estate for the third time after it nullified the winning bid of Korean firm NTM Jin Hung for alleged failure to fully pay the required amount stipulated in its bid contract.

The CDC has set the minimum bid price of P1.4 billion for the Mimosa Leisure Estate.

In 1998, CDC took control of the management and operations of Mimosa, after its former owner Jose Antonio Gonzales of the Mondragon Leisure and Resorts Corp. failed to settle its obligations with the government.

The amount represents government claims in arrears of the estate that has been managed by CDC's Special Project on Resort Operations after the state-owned firm took over the estate in 1999.

Mimosa Estate is composed of the 38-hole world-class golf course, clubhouse, more than 200 Montevista villas Holiday Inn, a casino operated by the Philippine Amusement and Gaming Corp. and industrial laundry and Veranda Restaurant.

as of 10/14/2008 6:16 PM