BACOLOD City — The developers behind a major housing project here are seeking to amend its existing joint venture agreement (JVA) with the city government, citing the ongoing national energy crisis as a key factor in the project’s significant downsizing.
Mayor Greg Gasataya said the city received a letter dated April 8 from Scheirman Construction Consolidated Inc., WRS Holdings Inc., and RS Realty Concepts Developers Inc., proposing to reduce the project scope from three sites to a single location—the Bacolod Asenso Yuhum–Arao Site—with eight buildings instead of the originally planned 25.
The company said the move is a response to the country’s current energy situation, which has created a challenging environment for large-scale developments.
“By recalibrating our targets now, we can ensure the project remains sustainable and focused despite these significant external pressures,” the developer stated in its letter.
The project, a public-private partnership (PPP), was formalized through a JVA signed on March 7, 2023, between the Bacolod City Government, WRS Holdings Inc., and Scheirman Construction. An amended agreement was later executed on January 22, 2024, to include RS Realty Concepts Developers Inc. as an additional private partner.
Under Section 24.9 of the amended JVA, any modification must be agreed upon in writing and signed by all parties.
Gasataya said he will formally transmit the proposed amendment to the Sangguniang Panlungsod (SP) on April 15 for review and assessment.
“This involves changes to the joint venture agreement, so it is necessary for the SP to evaluate and deliberate on it before it can move forward,” the mayor said.
Despite the proposed scaling down, construction has already progressed. Four buildings have been completed, two of which have been turned over, while the remaining two are still under construction.
Earlier, on April 13, Gasataya confirmed he held discussions with the Department of Human Settlements and Urban Development (DHSUD) and Lone District Representative Alfredo Abelardo Benitez to address project-related concerns.
City Councilor Thaddy Sayson noted that the agreement falls under a PPP framework, which may require revisiting procedural requirements if the private proponent is unable to fully comply with the original terms.
He emphasized, however, that the city government stands to incur no financial loss from the adjustment.
“The city did not spend funds on this project. Its contribution is the land, which is part of the tripartite agreement,” Sayson said.
The housing project is part of the Pambansang Pabahay Para sa Pilipino (4PH) program of the Department of Human Settlements and Urban Development (DHSUD), which aims to address the country’s housing backlog through the construction of decent and affordable homes for Filipinos.
Under the 4PH program, the city initially aimed to construct several residential buildings designed to provide safe and secure housing, particularly for informal settler families (ISFs). Priority beneficiaries include those living in high-risk “red zones,” which are prone to fire hazards due to overcrowding, substandard housing materials, and limited access to basic utilities.
The proposed amendment now awaits deliberation by the city council, which will determine whether the revised, scaled-down project aligns with Bacolod’s development goals and public interest./PN
