(MENAFN- Gulf Times) A P1.5bn plan to develop and modernise the 60-year-old Manila Zoo remains in limbo with the Manila City Council said to be sitting on a joint venture approved by re-electionist Mayor Joseph 'Erap Estrada.
Documents obtained by Manila Times showed that a joint venture agreement, signed in 2014 between the city — represented by Estrada — and the Metropolitan Zoo and Botanical Park Inc (referred to in the agreement as JV Partner), headed by Edwin Lim, had yet to be acted upon by the council.
The zoo's modernisation was supposed to be completed by the end of Estrada's first three-year term in 2016, but this did not materialise because of allegedly questionable provisions, a city council source claimed.
Metropolitan Zoo and Botanical Park Inc was also said to be lacking in experience in building or operating a zoo.
A company representative was not immediately available for comment, while City Hall officials declined to issue a statement, saying Estrada would address the issue after the May 13 elections.
Under the joint venture deal, the firm and the city were to pool their interests, resources and expertise for the project, which would cover the more than six-hectare zoo proper and the over one-hectare Dakota Park across the street.
Metropolitan Zoo and Botanical Park Inc was to redesign, redevelop, rehabilitate, operate and manage the Manila Zoo into a facility consistent with world-class standards.
It would bear the entire cost of the redesign and rehabilitation, contribute its financial, technical capacity and managerial expertise, and be the 'exclusive development and operations manager of the project.
Manila, for its part, would surrender its usufructuary rights over the site, including structures, facilities and premises, the wildlife and the flora and fauna within and any goodwill over the Manila Zoo over time, plus any and all proprietary rights and resources involved in the upkeep and operations of the zoo, including its franchise.
The city was also expected to turn over a project site free and clear of any liens, encumbrances, third party rights, squatters, tenants, sublessees and similar obstacles.
City council sources said among the provisions questioned were those involving the city's share of revenues.
Metropolitan Zoo and Botanical, which would be given a
25-year concession extendable by another 25 years, committed to give Manila 1.5% of gross revenues or 7% of net income — whichever is higher — equivalent to an initial
P200,000 per month or P2.4mn per year.
By the third year, the share would still be 1.5% of gross revenue or 7% of net income, but in value terms higher at P500,000 per month. The gross revenue share would stay at 1.5% up the tenth year, while the net profit share would be adjusted by one percentage point annually up to the eighth year, by which it would hit 12%. In value terms, the city would continue to receive P500,000 per month up to the seventh year, rising to P600,000 for the eighth to tenth year.
For the 11th to 15th years, the gross revenue share would increase to 2%, while the net income share would remain at 12%, but at a higher P800,000 per month.
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