Clark Mimosa to be Bided Out Again in 2015

 
 
For what interested observers feel to be very low price of p800 Million, investors can throw their hats into the ring for a chance to take over the once-famous Mimosa Leisure Estate in Clark Freeport, Pampanga. p500,000 buys you a set of bidding terms of reference but that window has lapsed, ended on 14th September, 2015. A bidding conference takes place in Clark Development Corporation on 16th September, 2015.

Some of those who have witnessed some of the many failed attempts of the government to offload this gem of a property in Clark Freeport are understandably pessimistic. Memories are still fresh on the failed bidding of 2008 when Clark Development Corp, or CDC, under the leadership of then President and CEO Benigno N. Ricafort, rejected Waterfront’s request for extension for settling a tranche of some p870 million after the group had won the bidding. Leading up to the final demise of this deal were arguments and negotiations between the parties, which include Pagcor, on the issue of arrears incurred by the creator of Mimosa Leisure Estate. This seemed to reveal that there were much more about this deal than met the eye.

Two years before that, in 2006, CDC had voided the bid of Korea’s NTM company which failed to sign the lease agreement and pay the p920 Million to seal the deal.

Then in 2011, under the direction of the Aquino administration, BCDA declared its plan to try their luck in offloading this property not via a public bidding but through negotiated sale. The public was generally happy to see a renewed sense of urgency for BCDA/CDC to let go of Mimosa, returning it to the private sectors, hoping to see Mimosa being managed properly to regain some of its illustrious glory of old. With better management, the public expected to see new jobs, increased tourists traffic not only for Mimosa but for Clark Freeport as a whole.

Now in 2015, another attempt is made to bid out Mimosa.

After so many failed attempts, some observers wonder if the government is indeed keen to offload this property or have they been just going through the motion to show the public that they were doing something, while in reality they really wanted Mimosa to remain as their “private” enterprise. Perhaps there will be a lifestyle change in the ranks of CDC when their own leisure resort is finally turned over to a real operator. There are those who see Mimosa as a money pit, that investors would discover numerous landmines lurking in the deal during due diligence and would cut their losses then and there instead of sinking further into the quick sands of this investment.

The answer should be revealed before the end of 2015. Closing of bidding is set for 13th October, 2015. If history teaches us anything about the bidding out of Mimosa, the real story begins not during but after the bidding process has been completed. If the government is indeed keen to foster development in Clark by recruiting more investment and competent management, there really is not a great deal of impossible problems in the acquisition of Mimosa.