THE Pasay City government expects to generate P2.54 trillion in taxes from Manila Bay reclamation projects over the next 35 years, city officials said at a House of Representatives hearing on Wednesday.
The hearing was seeking to gauge the potential economic impact of Manila Bay reclamation, following a Presidential order to halt such projects due to environmental concerns.
Pasay City Administrator Peter Manzano told the Ways and Means committee that the estimated share of the National Government from such taxes is about P1.39 trillion in income and value-added taxes over the long term. The city is expected to earn P1.15 trillion from real property and business taxes.
“The projects are projected to create economic multipliers and generate millions of jobs and billions of revenues,” he said.
The city government is proposing to establish Pasay Eco City Coastal Development Projects, to be known as Pasay 360 and Pasay 265, which will “feature eco-friendly and modern commercial institutional and residential spaces highlighted by blue and green infrastructure, such as green parks, mini forests and mangrove corridors,” according to Mr. Manzano.
Pasay 360 is a 360-hectare (ha) reclamation project conducted via a joint venture (JV) with SM Smart City Infrastructure and Development Corp., a subsidiary of SM Prime Holdings, Inc.
The 265-ha Pasay 265 is a JV with the Pasay Harbor City Consortium.
Mr. Manzano noted that the Pasay eco city projects “do not pose a threat to the environment,” having gone through the environmental compliance certificate (ECCs) process.
The projects are also monitored by various agencies like Pasay City, the Philippine Reclamation Authority, the Philippine Coast Guard, the Department of Environment and Natural Resources, and the Bureau of Fisheries and Aquatic Resources (BFAR).
“The Pasay eco city reclaimed lands will have a minimum elevation of four meters, (which) will serve as… coastal defense against flooding, sea level rise, storm surges and tsunamis,” Mr. Manzano added.
The city will also allocate 25% of revenues to environmental projects like urban forests.
“It is a stark reality that while human population increases, land area does not,” Veronica N. Lladoc, legal officer for the City of Manila, told the panel. “We need more space to accommodate more businesses and more people.”
The Horizon Manila reclamation project will create 33.5 ha of public parks and “green space,” and a developable share of commercial land valued at P352 billion, according to Ms. Lladoc.
Ms. Lladoc said the Manila Solar City will generate P3.2 billion worth of income taxes for the National Government, as well as local taxes like P7 billion in real property tax and P246 million in business tax.
Ricky L. Ricardo, vice-president for finance at the Waterfront Manila Premier Development, Inc. (Waterfront Manila), said the Manila Waterfront City Reclamation Project is expected to generate P74.40 billion worth of VAT and P16 billion in real property taxes.
The 318-ha reclamation project seeks to establish a “central business district” for the City of Manila. It will be built as a joint venture between the city government and Waterfront Manila.
Ma. Julieta C. Santos, Waterfront Manila legal counsel, said the project was also issued an ECC and cleared by the BFAR, Philippine Ports Authority, Department of Health, and the Philippine Competition Commission.
“The Philippines faces the potential loss of billions in revenue if these projects remain in suspension,” the committee’s chairman, Albay Rep. Jose Ma. Clemente S. Salceda said.
“We emphasize the importance of land reclamation in the development of large metropolitan cities situated along coastlines, as demonstrated by the notable success stories of Tokyo Bay, Singapore, and Hong Kong,” he added.
University of Illinois professor Kelvin Rodolfo said in a 2014 study on the geological hazards of the Manila Bay reclamation concluded that the capital region’s coastal areas are sinking by nine centimeters every year. — Beatriz Marie D. Cruz
