ZETA WORLD REALTY INC. has been selected by the City Government of San Juan as the Winning Private Proponent for the implementation of the Makabagong San Juan Community Economic Housing Project. The award was made following the recommendation of the Public-Private Partnership (PPP) Selection Committee and the Prequalification, Bids, and Awards Committee (PBAC). The approved total project cost amounts to PHP 983,235,705.00 (US$16.1 million).

The award is conditional upon the winning proponent's compliance with several post-award requirements that must be submitted within 20 calendar days from receipt of the notice. These requirements are intended to ensure that the private partner possesses the financial capability, legal authority, and organizational readiness to undertake the project. Among the required submissions are a signed copy of the Notice of Award (NOA), proof of equity contribution, financing commitments from reputable financial institutions, and various corporate documents authorizing participation in the project and execution of the Joint Venture Agreement (JVA).

A significant requirement under the NOA is the submission of a Performance Security in favour of the City Government of San Juan. The amount of the security depends on the form chosen by the winning proponent. If provided through cash, an irrevocable letter of credit, or a bank draft, the amount must be at least 2% of the total project cost. If secured through a bank guarantee, the minimum amount is 5%, while a surety bond requires a minimum of 10% of the project cost. This requirement serves as a guarantee that the winning proponent will faithfully perform its obligations under the project.

The notice further requires proof of financial capability and project funding. ZETA WORLD REALTY INC. must demonstrate its commitment to providing the required equity contribution through documents such as a Treasurer’s Affidavit, subscription agreements, or shareholder agreements. In addition, the company must secure firm commitments from reputable financial institutions indicating that sufficient credit facilities will be available to finance the portions of the project cost that it will shoulder. These requirements ensure that the project has adequate financial backing before implementation begins.

Where a Special Purpose Company (SPC) has been established to implement the project, the NOA imposes additional documentary requirements. These include proof of registration with the Securities and Exchange Commission (SEC), certified copies of the company’s incorporation documents, evidence of shareholder ownership, and agreements establishing the joint and several liability of SPC members. The SPC must also provide board resolutions confirming its organization, the election of directors and officers, and authorization for the execution and performance of the Joint Venture Agreement and related transaction documents.

The NOA clearly states the consequences of non-compliance. Failure to submit the required documents within the prescribed period will result in the automatic cancellation of the NOA and the forfeiture of the bid security. This provision protects the City Government from delays or risks associated with a winning bidder that is unable or unwilling to satisfy the conditions necessary to proceed with the project. Once all requirements have been submitted, the City Government of San Juan is given 5 calendar days to determine whether the winning proponent has fully complied with the conditions of the award. If compliance is confirmed, the City Government will formally notify the winning proponent. Thereafter, the winning proponent must execute the Joint Venture Agreement within 5 calendar days from receipt of such notice, unless another date is mutually agreed upon by the parties. This process ensures a timely transition from award to project implementation.