Charter Provision Delays SRP Bidding (June 2006)
Friday, June 16, 2006
The prohibition on foreigners fully owning land and businesses stalled the bidding of a 20-hectare portion of the South Reclamation Project (SRP) last month.
Cebu City Administrator Francisco Fernandez said the Cebu Investment and Promotions Center (CIPC) asked the committee on real properties disposal to put on hold the publication of the notice inviting interested bidders to purchase 20 hectares of industrial land near Pond A of the SRP.
A Singaporean manufacturing firm wants to buy a parcel situated near Barangay Pasil, which is pegged at P10,000 per square meter.
But Filrich Holdings is still in the process of incorporating the company with local investors because the Philippine Constitution does not allow foreigners to fully own land and businesses in the country.
“They are still incorporating and processing it with SEC (Securities and Exchange Commission). We can’t sell land to a foreign individual so they have to incorporate the company with investors, majority of which are Filipinos. If they will only lease, there is no problem but we wanted to sell the lot to improve our cash flow,” Fernandez told Sun.Star Cebu yesterday.
“Until they are done with the incorporation, we will defer the publication,” he added.
P2 billion
The Singaporean firm, which wants to put up the “world’s first fully automated container manufacturing plant” in Cebu, would have wanted to release P2 billion for the property last April but there are procedures to follow.
Also, City Hall still lacks the approval from the Commission on Audit (COA) for the sale of the 20-hectare portion.
COA, however, already told CIPC to go ahead with the leasing of the 70-hectare portion of the SRP near Talisay City.
CIPC Managing Director Joel Mari Yu, who met with Mayor Osmeña yesterday morning, said the mayor will instruct the Department of Engineering and Public Works (DEPW) to already begin the construction of the interior roads in the area.
Three investors, one from the Mactan Economic Zone II, will lease about 14 hectares and build standard factory buildings and warehouses.
In the next two to three months, the investors will be signing a lease contract with the City Government at 45 US cents per square meter or P26 per square meter for 25 years.
Fluctuation
Yu said they will peg the lease in dollars to protect the City from currency fluctuation.
“So, even if through the years matumba ang peso dili ta maunsa because they pay us in dollars,” he told Sun.Star.
COA, he said, approved the draft contract to lease because the lease rates are higher than what other export processing zones charge their tenants. Lease rates in MEZ 1 and 2 are lower than 45 US cents.
COA also reportedly advised CIPC that there will be no need to bid out the lots for lease, unlike those that will be sold. (GAC) www.sunstar.com.ph
The prohibition on foreigners fully owning land and businesses stalled the bidding of a 20-hectare portion of the South Reclamation Project (SRP) last month.
Cebu City Administrator Francisco Fernandez said the Cebu Investment and Promotions Center (CIPC) asked the committee on real properties disposal to put on hold the publication of the notice inviting interested bidders to purchase 20 hectares of industrial land near Pond A of the SRP.
A Singaporean manufacturing firm wants to buy a parcel situated near Barangay Pasil, which is pegged at P10,000 per square meter.
But Filrich Holdings is still in the process of incorporating the company with local investors because the Philippine Constitution does not allow foreigners to fully own land and businesses in the country.
“They are still incorporating and processing it with SEC (Securities and Exchange Commission). We can’t sell land to a foreign individual so they have to incorporate the company with investors, majority of which are Filipinos. If they will only lease, there is no problem but we wanted to sell the lot to improve our cash flow,” Fernandez told Sun.Star Cebu yesterday.
“Until they are done with the incorporation, we will defer the publication,” he added.
P2 billion
The Singaporean firm, which wants to put up the “world’s first fully automated container manufacturing plant” in Cebu, would have wanted to release P2 billion for the property last April but there are procedures to follow.
Also, City Hall still lacks the approval from the Commission on Audit (COA) for the sale of the 20-hectare portion.
COA, however, already told CIPC to go ahead with the leasing of the 70-hectare portion of the SRP near Talisay City.
CIPC Managing Director Joel Mari Yu, who met with Mayor Osmeña yesterday morning, said the mayor will instruct the Department of Engineering and Public Works (DEPW) to already begin the construction of the interior roads in the area.
Three investors, one from the Mactan Economic Zone II, will lease about 14 hectares and build standard factory buildings and warehouses.
In the next two to three months, the investors will be signing a lease contract with the City Government at 45 US cents per square meter or P26 per square meter for 25 years.
Fluctuation
Yu said they will peg the lease in dollars to protect the City from currency fluctuation.
“So, even if through the years matumba ang peso dili ta maunsa because they pay us in dollars,” he told Sun.Star.
COA, he said, approved the draft contract to lease because the lease rates are higher than what other export processing zones charge their tenants. Lease rates in MEZ 1 and 2 are lower than 45 US cents.
COA also reportedly advised CIPC that there will be no need to bid out the lots for lease, unlike those that will be sold. (GAC) www.sunstar.com.ph