City Hall Eyeing New Strategy for SRP (Sept 2006)

The Freeman 09/05/2006

The city government will embark on a new strategy to make sure that the multi-billion South Road Properties will not remain idle in the near future...

This developed as Mayor Tomas Osmeña yesterday contended that the newspaper story, which portrayed the SRP as being difficult to sell, has affected the marketability of the project, thus, a new marketing strategy will have to be in place. 

"We have to offset the propaganda that the SRP is lousy... it's hard for me because the SRP is belittled by a smear in the headlines," an irked Osmeña told reporters. 

What the mayor has in mind is to make sure that the SRP, in a controlled basis, can be opened to the public for scrutiny before December, which means that the city will do its best to finish the 1.4 kilometer white sand beach walk near the Kawit Island. The city also intends to convert the 90-hectare Pond A into a sports park. 

After the basic amenities such as electricity and water are installed, the marketability of the SRP would allow employment of 150 people per shift for every hectare in the site, Osmeña said. 

Sustainability of income is also important, as the city government has until 2025 to pay the over P6 billion loan from the Japan Bank of International Cooperation for the construction of the project. To address this, Osmeña said he is willing to "dive on the price" to sell the land within the property. 

The city government may sell the SRP lot for as low as P5,000 per square meter, but the purchase will be limited to only five hectares per buyer. The earning, Osmeña said, may be enough to sustain the city's payment for the loan. 

Along with the strategy, he said, is to see to it that the city and the project will not go into bankruptcy, and ensure that the SRP will help the city's economy just as how it was envisioned many years ago. 

Osmeña admitted that it may be difficult to sell the inner portions of the SRP due to lack of roads, but what the city wanted is to sell the properties that are located along the main road. 

Two months ago, Osmeña announced that a group of prospective Japanese investors, whom he described as "creative entrepreneurs," expressed intention to visit Cebu to take a look at the SRP and observe the city's economic condition. 

The group is reportedly interested in putting up a hospital or a retirement or handicap home at the SRP. Osmeña said these investors owned 3,000 beds or equivalent to 20 medical facilities in Japan. 

A member of the group has reportedly visited Cebu a month ago and had expressed interest in brining his business in the city. 

In March, the city paid its P250 million amortization of the SRP and subsequently secured the official title for the project. - Joeberth M. Ocao/LPM