LANDING Philippines’s $1.5-billion integrated resort project in Parañaque City broke ground on Tuesday and is penciled to operate by the first quarter of 2022.
The groundbreaking took place on the same day Malacañang announced the termination of all board members of Nayong Pilipino Foundation for a lease contract that President Duterte found “grossly disadvantageous.” The agency was responsible for securing the deal with Landing International Development Ltd., the parent company of Landing Resorts Philippines Development Corp.
Landing Chairman and Executive Director Yang Zhihui said the resort, named NayonLanding, will generate more than 10,000 direct and indirect jobs, of which 95 percent the developer looks to employ from Filipinos. He added NayonLanding is estimated to add 2 million to 3 million tourist arrivals to the country.
“NayonLanding is expected to employ approximately 10,000 job opportunities, of which at least 95 percent shall be local. It will attract an additional 2 million to 3 million international visitors to the Philippines when the resort is opened in 2022,” Zhihui said.
According to Landing Philippines, the hotel, resort and casino will be in full swing by February 2022. The infrastructure will tower on a 95,700- square-meter (sq-m) land in Parañaque City, and has a planned floor area of about 610,000 sq m.
“We will continue to work closely with local enterprises when the resort is opened to drive employment opportunities and development of the country,” Zhihui added.
The integrated resort will house an indoor cultural park and water park, as well as Asia’s first and largest themed movie theater. It will also offer at least 1,500 luxury rooms, a convention center with a 4,000-seater grand ballroom for large-scale events and conferences, a retail mall and a casino to be managed by an international gaming firm.
NayonLanding is expected to boost Landing’s presence in Asia, after Jeju Shinhwa World, its integrated resort in South Korea, opened in March. The firm will leverage on the growing brand equity in Jeju Shinhwa World to entice more tourists in the region to swing by the Philippines.
Mass firing
As the groundbreaking was taking place, Presidential Spokesman Harry L. Roque Jr. said the President has fired all the board members and officials of Nayong Pilipino. In a news briefing, he claimed Duterte was angered over a lease contract Nayong Pilipino granted to a foreign firm that was “grossly disadvantageous” to the government.
Removed Nayong Pilipino Chairman Patricia M. Ocampo was present at the groundbreaking, and still delivered a speech praising Landing for carrying out the project. “I have never met, in my whole life, an investor to our country that, in the entirety of this whole project and investment, decided to promote our country,” Ocampo said, referring to the Hong Kong-based firm.
In a statement, Landing declared it will still push through with the construction of the integrated resort project, and said its lease contract with Nayong Pilipino is “valid and effective.”
“From the group’s viewpoint, the recent decision of the Philippine government to replace members of the Nayong Pilipino board of trustees did not affect the validity of the subject contract of lease.
“Landing clarifies that the term of lease executed between Nayong Pilipino and Landing Philippines provided for in its executed contract of lease with Nayong Pilipino is for a period of 25 years only commencing from the date of execution of the contract of lease.
“Unless the lease contract is cancelled or nullified on legal grounds by the courts, Landing has [a] reason to believe it is a valid leaseholder and can legally proceed with its project.
“Subject to and upon approval of Landing Philippines’s application with the Tourism Infrastructure and Enterprise Zone Authority, the term of lease shall be for a period of 50 years as provided for and specifically allowed by Republic Act 9593, otherwise known as the Tourism Act of 2009, as an incentive to encourage foreign investments in the Philippines,” the firm said.
‘No graft’
In a separate statement, Ocampo said she will adhere to the President’s decision to replace her, as well as her subordinates, but denied the board is engaged in illegal activities, especially in securing the $1.5-billion NayonLanding project.
“In behalf of the board of trustees of Nayong Pilipino, I would like to thank the President for having been given the opportunity to serve the Filipino people. It is regrettable that it has come to this, but we understand that we serve at the pleasure of the President,” Ocampo said.
“I strongly deny accusations that there was graft and corruption. On the contrary, the lease contract with Landing is above-board, and is highly advantageous to the government and to the Filipino people,” she added.
Ocampo also claimed the lease contract with Landing Philippines is for 25 years from the date of its execution, and not 70 years as first alleged by Roque. Monthly rentals were pegged at P360 per sq m, and the advance rental amount was at P827.05 million, she added.
Apart from this, the sacked official said Nayong Pilipino will receive an additional monthly rental equivalent to 10 percent of net profits from NayonLanding after taxes exclusive of the value- added tax. “We negotiated what we believed then, and believe now, are most advantageous terms and conditions for the government and the people,” she argued.
‘Ridiculous’
President Duterte fired the members of the board and management of Nayong Pilipino over a lease contract which he said was “flawed” and “grossly disadvantageous” to the government.
Roque said the President voiced out this sentiment during the Cabinet on Monday. Roque also said Duterte started the meeting by saying that corruption continues even in his administration.
“He cited the case of Nayong Pilipino, which leased government property for a ridiculous long period of time of 70 years, beyond the lifetime of anyone; and he considered this as a contract which was grossly disadvantageous to the government,” Roque said.
“The papers that will formally terminate the entire management and the entire Board of Directors of Nayong Pilipino will be issued in due course by the executive secretary,” he added.
Roque also said in a statement that the President has instructed a review of the lease contract entered into by Nayong Pilipino Foundation Inc. with Landing Resorts Philippines Development Corp. Roque said the lease contract was flawed since it was entered into “without public bidding and was disadvantageous to the government.”
Image credits: Nonie Reyes