The Tourism Infrastructure and Enterprise Zone Authority (TIEZA) board has recently approved the agency’s own joint venture (JV) guidelines that will be used to allow private sector participation in the development, operation, management and/or disposition of TIEZA properties and facilities, whether owned, administered or controlled.
The Office of the Government Corporate Counsel (OGCC), in its Opinion No. 021 Series of 2018, affirmed that TIEZA has the power and authority to adopt its own rules and procedures for entering into JVs and management contracts and for the disposition/privatization of its assets.
We are confident that with the TIEZA JV guidelines, local and foreign private companies would be more interested to invest in tourism through our existing assets and our other tourism related facilities,” Chief Operating Officer Pocholo Paragas said.
Paragas asserted that the newly issued joint venture guidelines will help accelerate tourism infrastructure projects in the country, which are vital in providing better tourism experience for tourists and increase tourism receipts and revenues.
“We believe that the tourism sector will be reinvigorated with the contribution of industry expertise and financial capability of the private sector in managing tourism-related facilities,” he added.
“With the booming tourism potentials in the country, it will definitely be a win-win solution for the government and the private sector to partner,” TIEZA COO explained.
Paragas urged the private corporations or consortiums to invest in tourism now.
These JV Guidelines, however, do not preclude TIEZA from disposing or privatizing its assets, properties and facilities through other means.
Under the guidelines, the joint venture partners will be selected either through a competitive selection or through a negotiated competitive challenge. The prospective investors may respond to a solicited proposal initiated by TIEZA or submit their own unsolicited proposal which offers the “best and most innovative” solution or plan to develop and manage a property/facility currently managed/owned or controlled by TIEZA.
TIEZA assured the public that they will ensure transparency and accountability throughout the entire process.
A Joint Venture Selection Committee (JVSC) shall be created to handle the selection and evaluation of proposal under the guidelines.