Pasay 360: A closer look at PBBM’s legacy for PH’s sustainable economic development

For President Ferdinand R. Marcos Jr., progress must not come at the expense of the environment.

This principle guided his decision in 2023 to suspend the large-scale reclamation projects in Manila Bay, which were approved by the previous administration.

Recognizing the potential negative impact of these projects on the environment, President Marcos halted these projects to allow further studies and ensure their compliance with environmental regulations.

While prioritizing a thorough review of the projects’compliance, President Marcos also assessed their potential benefits to the economy, demonstrating a balanced approach to progress.

Such action of the President was a clear testament to his commitment to a sustainable economic development under Bagong Pilipinas.

BALANCED APPROACH

Following the government’s meticulous evaluation, President Marcos authorized the resumption of certain projects, highlighting their economic potential and sustainable capacities.

One significant project the President authorized to resume was the 360 hectare development project in Pasay City,estimated to be worth USD2.6 million (PHP150 billion) and dubbed as “Pasay 360”.

The greenlight from the President came after a rigorous evaluation of the Department of Environment and Natural Resources (DENR) and the Philippine Reclamation Authority (PRA)\.

Both agencies ensured the project is fully aligned with the stringent Environmental Compliance Certificate (ECC) and Area Clearance (AC) conditions.

The City of Pasay has been previously granted an ECC dated October 24, 2017 for the proposed 360 hectarereclamation project under a joint venture with the SM Smart City Infrastructure and Development Corp., which will be connected to the SM Mall of Asia complex.

Aside from passing strict review by the DENR and PRA, the decisive move of President Marcos also took into serious consideration the collective economic impact of the Pasay Eco-City Coastal Development Projects, including Pasay 360.

Pasay 360 is expected to generate over one million jobs and billions of pesos in taxes for the national and local governments.

The ambitious project is expected to be completed before the end of the term of President Marcos in 2028. It is set to essentially redefine Pasay City’s skyline and infrastructureand significantly upgrade its social and economic landscape.

President Marcos’ unwavering commitment to infrastructure development, as articulated in his “Build Better More” program, serves as the bedrock for this transformative endeavor.

BEACON OF HOPE FOR FILIPINOS

The success of Pasay 360 will not only contribute significantly to achieving the administration’s economic targets but also serve as a beacon of hope for Filipinos, demonstrating the tangible benefits of public-private sector collaboration in achieving national progress.

The PRA has already resumed the reclamation works for the project along the coastal area near the SM Mall of Asia.

The Pasay 360 is slated to turn the reclaimed area into a business district, envisioning a mixed-use development that will recreate the success of the Mall of Asia reclamation project.

The company’s plans include a mall, offices, residences, an entertainment area, a five-star hotel, and a convention center.

The megaproject is being projected to “easily generate over a million jobs, including those related to construction, business process outsourcing, retail, banking, hotels and restaurants, and the like,” Pasay Administrator Peter Manzano told the House Committee on Ways and Means.

WELCOMING DEVELOPMENT

Amelita Sucayan, a resident of Pasay for two decades, expressed excitement over the project and looking forward to its completion.

“Let’s welcome development. This is good for the people of Pasay, the local government and for the country as well,” Sucayan said in Filipino.

In fact, she added, her husband Luis, who has no permanent job may find one during the construction of the project.

“Syempre naman, maraming kailangang trabahador dyan. Sa construction pa lang, malaking tulong na sa mganangangailangan,” Luis said.

SM Prime, for its part, is committed to the success of Pasay 360. SM Engineering Design & Development Corp.

“The vision for that project for us is to leverage everything that we’ve learned with the 60 hectares that we have in the MOA complex… into a bigger and better project… We’d love for you to see what we can try to deliver for something that is twice the size of BGC,” SM Prime President Hans Sy Jr. said.

Many will know, of course, that when SM Mall of Asia opened in 2006, it was the largest mall in Asia, and sixth in the world.

Although it lost the title to a newly redeveloped SM North EDSA in 2008, and then again to an expanded SM Megamall in 2011, it regained its status as the largest mall in the Philippines with the opening of IKEA Pasay City in 2021, the largest IKEA in the world.

SM Mall of Asia serves an estimated daily average of over 200,000 people. It has created hundreds, if not thousands, of jobs, and generated billions more in revenue for Pasay City.

Apart from SM’s success with the SM Mall of Asia complex, Pasay is also a prime candidate for reclamation and development projects because of the potential for expansion in its coastal areas.

As one of the smallest cities in Metro Manila in terms of land area, Pasay’s future lies in its extensive coastlines and municipal waters. The demand for commercial and residential real estate in Metro Manila is high and still growing.

Pasay City government officials have shown themselves as willing and able to meet that demand.

City Administrator Manzano said part of Pasay’s troubles is “acute land scarcity and urban congestion”. But SM Prime Holdings’ planned development will change all of that and create considerable revenue for the local and national government in the process, he added.

Pasay may stand to gain over P1.1 trillion in tax revenue.

SM Prime is set to hand over the land to the city government of Pasay in 2028, and development is well underway, with the company in charge of developing the actual raw land and completing horizontal development work.

“We will do the whole reclamation, after which when we start dividing the land, that’s when the joint venture comes in,” Sy said.

COLLABORATION IS THE NAME OF THE GAME

SM plans to invite other developers to come in and expand on the new land once reclamation activities are completed.

Collaboration is the name of the game. “It’s not something that we will just do it by ourselves. As I’ve been pushing, the future of businesses is collaborations. We cannot do it by ourselves anymore, it has to be in collaboration with a lot of other developers,” Sy said.

Dredging activities began in September 2021, and by December 2022 it was estimated that a total of 86.13 hectares had already been reclaimed.

Once finished, Pasay City will receive 30.24 hectares, while the national government will receive a land share of 138.6 hectares. An additional 93 hectares are set to be allocated for roads and open spaces, as approved by the Philippine Reclamation Authority Governing Board.

SM Prime Holdings further intends for Pasay 360 to be an eco-friendly development, highlighting its use of blue and green infrastructures.

Glenn Ang, President of SM Smart City Infrastructure and Development Corporation, assured lawmakers the project is backed by all the necessary studies. “DENR is working now [on] the cumulative impact of all of the other reclamations it built all together,” he said.

“And we’re very much open to all of these,” he added.

The project was already certified as fully compliant with pre-reclamation requirements in July of 2021, just before dredging activities began.

In November 2023, the PRA approved a new landform configuration for the project involving a 300-meter-wide water channel extending from the Pasay City mainland as part of a commitment to the DENR, with further plans to widen the channel to 478 meters.