Cebu City JV body to choose challengers of FLI proposal (South Road Properties)

CEBU City’s Joint Venture Selection Committee (JVSC) will convene today to decide who will be qualified to challenge the offer to develop a 50.6-hectare portion of the South Road Properties (SRP), if any party submits their eligibility requirements.

So far, only the Provincial Government expressed an interest to challenge Filinvest Land Inc.’s (FLI) unsolicited proposal and secured forms for pre-qualification and eligibility requirements.


But they have not submitted their eligibility documents yet as of last Friday afternoon, City Administrator Francisco Fernandez said.

Interested parties have until 11 a.m. today to submit their documents for eligibility, according to the invitation to apply for eligibility and to submit a proposal published in local dailies last Dec. 8 and 15.

But according to City Ordinance 2154, which prescribes the guidelines and procedures for entering into joint venture agreements with private entities, “private sector participants shall be given at least 30 calendar days from the last date of publication of the invitation to apply for eligibility and to submit a proposal.”

Fernandez said the JVSC will convene this afternoon to open the eligibility requirements, if Capitol or other private parties submit any.

“Today is the deadline for submission, that is why the JVSC will convene. If Capitol and other parties submit and they are found ineligible, then
common sense will tell us that we can decide to award it to Filinvest,” Fernandez told Sun.Star Cebu.

“But the ordinance says they should be given 30 days to apply for eligibility and to submit a proposal so we will most likely wait until then, to give them a chance,” he continued.

If the Province or any other party submits the documents and are declared eligible, they have until Jan. 23 to submit their comparative proposal.

Transparency

Fernandez said that any decision made by the committee regarding eligibility or ineligibility of any party or the awarding of the contract will have to be referred to the City Council for approval.

The ordinance, however, gives the City Government authority to adjust the period prescribed for compliance of the requirements for joint venture activities.

Whether or not the committee will allow interested parties more time, or whether the contract will be awarded immediately to FLI, will be tackled in today’s meeting.

“Notwithstanding, the City Government may adjust said period as may be appropriate for the nature, scope, size and complexity of the proposed joint venture activity. Provided, that the principles of transparency, competition and accountability are observed,” the ordinance read.

FLI has submitted an unsolicited proposal for an unincorporated joint venture with the City Government over a 20-year period. This will provide infrastructure facilities, buildings and other amenities in a central business district type of development involving the construction of 875,000 square meters of building space over a 50.6-hectare area of the SRP.

The firm intends to invest at least P25 billion in the project, which will include “mid-level to ultra high-end” residential buildings, a medium-rise complex, a cluster of high-rise hotels, retirement and medical facility and commercial areas.

FLI’s offer will be subject to an open competitive bidding, and for other private developers of the same stature as FLI to challenge. (LCR)

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Gwen finds South Road Properties better to invest in, says Tomas

The Freeman
December 20, 2008

Cebu City Mayor-on-leave Tomas Osmeña expected Governor Gwendolyn Garcia to decide on investing in the SRP since the province is not “desirable.”

Osmeña, when sought for comment on the recent move of the Province of Cebu in showing their intention over the areas being eyed by the Filinvest Land Incorporation (FLI), said he will just have to wait and see.

“Of course, it is so bati to invest in the province she doesn’t like to live in the province, let’s see,” Osmeña said. Last December, Wednesday, Garcia had a representative to buy a set of eligibility documents from the Secretariat of the Joint Venture Selection Committee prior to the opening of bids on December 23.



Cebu City invited all interested private sector entities and participants to submit a competitive challenge over FLI’s unsolicited proposal over a 50.6-hectare lot at the SRP. FLI committed to compensate the City over a period of 20 years first with a minimum of a P1.5 billion cash payable in the next three years.

Meanwhile the Japan International Cooperation Agency (JICA), funding agency of the SRP wrote a letter to acting mayor Michael Rama, clarifying that their representative did not mention the SRP plan as “unacceptable” during the recently-held workshop of the Asian Development Bank.

Norio Matsuda, chief representative of JICA Philippines, told Rama their representative in the said workshop, Jun Watanabe, did not make such a statement.

“Related to the workshop we were informed that one of the local newspapers in Cebu published the relevant article with a headline ‘Japanese government frowns on projects, planned SRP use not acceptable’. We would like to make it clear on this occasion that our representative on the workshop did not make such kind of statement during and after the workshop,” Matsuda said.

In the workshop, consultants from ADB were already asking for a masterplan which the city government was not able to produce since Osmeña wanted the SRP to be planned according to the demand. — Ferliza C. Contratista/BRP (THE FREEMAN)

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South Road Properties framework plan

Linette C. Ramos
Sun.Star Staff Reporter

PLANS for the South Road Properties (SRP) drafted 15 years ago were amended to suit a mixed land use project and will be submitted to the Japan International Cooperation Agency (Jica) headquarters in Tokyo for approval.

The framework plan, if acceptable to Jica officials in Japan, will be the basis for the planning of utilities for the 302-hectare SRP.



Cebu City Administrator Francisco Fernandez said yesterday that based on their discussions with officials of the Jica-Manila office last July, the latter accepted and approved in principle the changes on the use of the SRP, from an export zone for light manufacturing firms to a mixed land use project.

The City Government’s plan for the SRP, which JICA Manila drafted into a document, will still have to be presented to the JICA board in Tokyo for approval.

Shift

Another change that will be presented to the Jica headquarters is the shift from leasing of SRP lots to selling the properties, which could enable the City to pre-pay Land Bank of the Philippines (LBP) the balance of its 12.315-million yen loan with Jica for the SRP. The LBP is the conduit bank for the loan.

Fernandez said the possibility of a pre-payment to LBP “worried” Jica, because LBP might also pre-pay the loan. Fernandez said, though, that LBP will not make pre-
payments to Jica and will use the money as a revolving fund instead, if the City Government agrees to pay the loan balance in advance.

“There will be a new agreement that will consider the changes of the time. The framework plan we made 20 years ago has to be amended. Jica already agreed that there have been changes, and so the agreement we had with Jica 20 years ago will have to be amended,” Fernandez told reporters yesterday.

Based on the presentation of Mayor Tomas Osmeña and Cebu Investment Promotions Center (CIPC) managing director Joel Mari Yu before Jica Manila officials, the latter drafted a new framework plan that will be submitted to their headquarters in the third week of January.

Assumptions

During a meeting with Asian Development Bank (ADB) representatives yesterday, Fernandez said they agreed that the revised plan will also be used as basis for the assumptions needed for them to proceed with planning activities on the utilities, including power and water supply, solid waste management, wastewater treatment facilities and public transport.

The City and the ADB-Cities Development Initiative for Asia agreed on the need to have certain assumptions on power and water supply requirements, estimated number of workers at the SRP, public transport needs, among others. The assumptions will be based on the JICA plan.

But even the assumptions will have to be flexible enough to allow the City to adapt to changes in the demands of the market and investors who would operate in the SRP, Fernandez said.

“If the new plan is acceptable to Jica, this will also be the basis of the second round of planning workshops with ADB for the utilities. It will be the basis of the assumptions and we have reached an agreement that even the assumptions should be made flexible,” he said.

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CH officials insist South Road Properties should be demand-driven, to meet with consultants

Thursday, December 18, 2008

CEBU City officials will meet with Asian Development Bank (ADB) consultants today to clarify its requirement of a development framework or master plan for the South Road Properties (SRP).

City Administrator Francisco Fernandez said that Mayor-on-leave Tomas Osmeña reiterated yesterday his stance that the 302-hectare SRP will be demand-driven and will respond to the needs of the market, and would not be tied down by a master plan.



He said he was also surprised by the Japan International Cooperation Agency’s (Jica) request for a master plan because it has already agreed that the City Government will only provide “a master plan that is more of a vision, and not a detailed and rigid master plan.”

The official said that the shift from an industrial and light manufacturing export zone to a mixed land use project is acceptable to Jica.

Clarification

Fernandez, who has just reported back to work after a one-week leave, was asked by the mayor yesterday for feedback and recommendations based on the result of today’s meeting.

“We will clarify several things with them tomorrow. Are they going to be firm in their request for a master plan? And what do they exactly mean when they asked for a master plan?” he said yesterday.

Consultants of the ADB-Cities Development Initiative for Asia (CDIA) asked city officials for a master plan or development framework plan on the SRP, which they said they will need so they can proceed with pre-feasibility studies on the utilities and infrastructure needed at the SRP.

“I think it has to be clearly pointed out to them that they are our consultants. They don’t make decisions. As consultants, they’re supposed to give us their good and bad thoughts and we will decide accordingly. Their recommendations have to be mutually accepted,” Fernandez said.

Acting Mayor Michael Rama, City Planning and Development Coordinator Nigel Paul Villarete, Fernandez and other city officials will meet with the ADB consultants this morning.

Technical aid

During the workshop on CDIA’s Priority Infrastructure Investment Plan (PIIP) for the SRP last week, a Jica representative also asked for a master plan of the mixed land use project, which they will submit to the JICA board, along with a proposal for technical assistance for the utilities.

“I’m a little bit surprised about Jica’s request for a master plan because last July, we thought we came to terms that the Manila office had to present to the Jica headquarters the changes happening in the Philippines, a new master plan in quotation marks. We agreed that it cannot be a rigid plan,” said Fernandez.

The Jica representative said the City already presented a plan before the loan agreement was approved, but the plan was for an export zone for light manufacturing firms. “The original purpose of the SRP was for industries and manufacturing firms but that is no longer what the market needs. And the shift to a mixed land use was acceptable to the JICA head in Manila. They fully understand that the realities have changed,” Fernandez added. (LCR)

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Filinvest still to pursue P80 B South Road Properties investment

The Freeman
December 16, 2008 12:00 AM

Cebu City mayor on-leave Tomas Osmeña said the Filinvest Land Inc. will still pursue its P80 billion investment at the South Road Properties despite the opinion of Asian Development Bank (ADB) consultants that the SRP lacks a land use master plan.

“Don’t listen to them. They don’t know what they are talking about. Filinvest will start project without them,” Osmeña said yesterday.

The mayor, who is still in the United States, said he knows what is acceptable and what is not.

The ADB consultants have suggested that the SRP’s land use master plan should be completed first before the lots will be sold.

They explained that infrastructure utilities such as roads, drainage systems, electricity and water lines should be identified first because it would be difficult to put them up once the lots are already sold.

But Osmeña argued that “If we followed a so-called master land use plan, the SM City mall would never be there. Why? Because it was never in the master plan as a matter of fact, to accommodate SM, we had to destroy six hectares of city roads, side walks, streetlights, drainage and electrical lines.”

He said the hiring of those ADB consultants are just a waste of time, saying “let them show their past accomplishments if any.”

The FLI had proposed for a joint venture with the city to develop a 50-hectare lot at the SRP.The firm will pay the city P1.5 billion for 10 hectares of the lot while the city will receive 10 percent of the gross income from the rest of the lot.

In his argument, Osmeña asked that “was the Cebu International Convention Center originally part of the master plan of the Mandaue reclamation project? No way.”

He even suggested that ADB should hire experts from Osaka Power or Tokyo Power regarding the district cooling, or Singapore Power for electrical distributor.

Osmeña said the city will not put on hold projects at the SRP just to wait for the completion of the study conducted by the ADB consultants.

He said the ADB has not extended a single development loan to the Philippines for the past several years even though it is based in the country. “That’s a reflection of their competence.” — Rene U. Borromeo/LPM(THE FREEMAN)

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BRT advocate offers to help in South Road Properties design, bus system

Monday, December 15, 2008
Linette C. Ramos
Sun.Star Staff Reporter

ASIDE from two foreign funding agencies, Cebu City Hall might also get some help and input for the South Road Properties (SRP) from one of the world's leading mass transport system advocates.

Former Bogota City, Colombia Mayor Enrique Peñalosa has expressed interest in making a design proposal for the SRP.


In a recent visit, he has said that the 302-hectare SRP, which could transform Cebu, "could become what Manhattan is to New York or what Makati is to Manila."

The former mayor, who introduced the Bus Rapid Transit (BRT) in Bogota, has written City Planning and Development Coordinator Nigel Paul Villarete, Peñalosa offering what he could do.

In his letter, Peñalosa said the SRP "is probably the most exciting project" he has seen in the many cities he has worked in, and that it could transform Cebu and the Philippines.

"I work with a great team of some world-class urban designers from the London School of Economics, and I would love it if we could make a proposal for SRP's design. SRP could transform Cebu, the Philippines and have a profound effect in Asia's urban development," he said.

Peñalosa, though, said the City Government should incorporate new urban design elements that will make the SRP unique and better than Makati or Manhattan in several aspects.

Maximum gain

"A rapid but careful and comprehensive scheme can also be devised in order to ensure the maximum financial gain to Cebu City from the sale of the land. It should be a project that makes Cebu more attractive for international investors and tourists. It should also be accessible to all citizens of Cebu for their enjoyment," he said.

Villarete said that although Peñalosa's ideas and proposal were given unofficially through an e-mail, the City is willing to consider them.

Among other things, Peñalosa said he imagined the SRP to have a pedestrian waterfront around the reclaimed land, bicycle lanes, parks, marina, waterfront promenades, plazas, and the BRT system.

"Cebu's BRT should go across SRP and small feeder buses could bring passengers from different points to the BRT stations. Mayor Tommy Osmeña's vision of having no cars in the island may be too radical, but certainly cars could be restricted," he suggested.

Despite some differences in their ideas on how to go about the planning of SRP's utilities, Villarete believes the City can still work with the foreign consultants conducting studies on the infrastructure needed at the SRP.

He said he would rather wait for the succeeding workshops early next year to find out what direction the technical assistance will take.

Assistance

The Asian Development Bank-Cities Development Initiative for Asia (ADB-CDIA) has provided the City with a $499,000 grant in technical assistance in studying the utilities and infrastructure requirements of the SRP.

ADB and the Japan International Cooperation Agency (Jica) may also be tapped for the funds needed to implement the recommendations of the consultants, if the City Government decides to accept them.

During a workshop last week, though, ADB and Jica representatives said that unless the City can provide a development framework or a master plan for the SRP, their agencies might not be able to provide funding.

Their comments upset Mayor-on-leave Tomas Osmeña, who said that he has long planned some of the utilities without any new input from both ADB and JICA.

"I really think that it will work out all right, it's just that there were some insistence from both sides; but we are going to work it out…. It's really up to what will happen in January, when the consultants will meet to thresh out their concerns for the studies to proceed," Villarete said.

He said he is happy that ADB has funded the project development and pre-feasibility studies in identifying the utilities.

"But we don't have to comply with anything. Yes, there is a technical assistance but it (results) is not something that should be forced on the City if it's against its will," he added.

Acting Mayor Michael Rama yesterday said he would meet Villarete and SRP Chief Operating Officer Nagiel Bañacia to discuss the outcome of the workshop.

"I will check with them on what were the feedbacks during the workshop and let's see what needs to be done. I don't want to add anything to what Mayor Tom said; he
also has a point, but I will leave it at that," he said.

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Don’t Tie Down South Road Properties to Master Plan: Tomas

Saturday, December 13, 2008

CEBU City officials and the marketing arm of the South Road Properties (SRP) assured they will comply with the terms and conditions of the loan agreement with the Japan International Cooperation Agency (JICA).

Acting Cebu City Mayor Michael Rama also assured JICA that the City is “not skirting substantially the original plan for the SRP.”


It’s just that the times have changed and the City is doing the most practical thing, which is to make the SRP profitable for the City to pay its loan obligation.

Cebu Investment Promotions Center (CIPC) Managing Director Joel Mari Yu said they are prepared to allot a portion of the 302-hectare property for light manufacturing firms, which was the original purpose of the SRP before the loan agreement was approved.

Mayor-on-leave Tomas Osmeña also said that even if the SRP has shifted from being purely an export zone for manufacturing companies to a mixed land use project, the developments will create jobs, which is the main objective of the SRP.

“It is demand-driven. We listen to what the locator has in mind and if it’s good for Cebu, we will find a way as soon as possible,” he said in a text message, when asked if the SRP will still have room for manufacturing firms.

External

“Global conditions will dictate the ultimate direction of the SRP. Our first joint venture requires the construction of 875,000 square meters of finished buildings and condominiums. How you can build this without creating jobs means that we will use robots? That’s the first step. The usage of these buildings will not require jobs? Why? Will these buildings be serviced and occupied by robots?” said Osmeña.

Osmeña was reacting to an earlier statement of a JICA official who said that compared to manufacturing firms, hotels and condominiums might employ fewer people after the construction period.

(City Planning and Development Coordinator Nigel Paul Villarete corrected Sun.Star Cebu’s headline yesterday on the JICA official’s statement.

Meanwhile, former Cebu City mayor Alvin Garcia said he expects the offer of Filinvest Land Inc. (FLI) to develop a 50.6-hectare portion of the SRP will not materialize, given the lack of a master plan for the project’s use.

In yesterday’s “Tapok-tapok sa Kia” forum, Garcia said he has kept on reminding that the SRP requires a master plan and that such a development framework should not be solely up to the buyer or developer of the reclamation project to decide.

“Now, it’s clear that what they (city officials) did was wrong,” said Garcia.

Still valid

“I think that some people at the City Hall know that a master plan is important. Karon kay wa na man ilang amo, ila na i-implementar…maghimo na gyud og (Now that their boss is away, they are implanting it. They are working on a) master plan.”

In a phone interview yesterday, Yu said the SRP can accommodate manufacturing firms anytime.

Although the SRP was originally intended as an export zone, the demand for factory spaces here has dropped when manufacturing firms decided to transfer to Vietnam and China.

“The original intention is still valid. But in the last three years, not a single foreign direct investment came to Cebu. In the last five years, there was only one. A sizable amount of land at the SRP is still not negotiated, we can allot space for manufacturing firms that might want to locate there. If it has to happen, we are ready for that,” he told Sun.Star Cebu.

Yu and Villarete said the City will also comply with the loan agreement that requires the City to retain ownership of 49 percent of the SRP until it can fully pay for the 12.3-million yen loan made in 1995.

Aside from Filinvest Land Inc.’s (FLI) proposed condominiums and office buildings, Osmeña said that Bigfoot Entertainment’s project is also a high priority because it’s a prestigious industry with “livelihood impact and technology transfer.”

Priorities

Retirement and medical tourism facilities, a 15,000-seater coliseum, corporate headquarters, postgraduate schools and an international yacht club will also be a priority.

“Whatever Jica’s comments are, I challenge JICA and the Philippine Government to show a better Official Development Assistance project than the SRP among hundreds that they funded. I will show the Japanese taxpayers that they did not waste their funds on this. Just their best project in the last 30 years and compare it with the SRP. I promise to defend and win the argument. Hindi tayo mapapahiya,” Osmeña said.

Rama, for his part, said the City is leaning toward having a master plan on how it hopes to develop the property.

The acting mayor also said he could not believe that a JICA official would say that the planned use for the SRP is “not acceptable.” (Editor’s note: He was referring to the headline, not the story’s text.)

“I’m a little bit surprised that there is such a statement attributed to JICA. I wish and I hope that Jica was taken out of context. Dili man ta unmindful unsa’y original plan,” he said.

He said the offer of Filinvest Land Inc. “may not be for massive employment generation, but it has a domino effect on the economy.” (LCR/With GMD & RHM)

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Planned South Road Properties use ‘not acceptable’

NOT having a development framework or a master plan and a governance structure for the South Road Properties (SRP) would cost the Cebu City Government a lot, including foreign funding for utilities and other infrastructure within the 302-hectare facility.

The Japan International Cooperation Agency (JICA) reiterated yesterday the Asian Development Bank’s (ADB) request for a development framework or plan, so it can justify to the Japanese Government the shift in the use of the reclaimed properties.

JICA granted the City Government a 12.315-million yen loan in 1995 to develop the SRP into an export zone for light manufacturing firms.

While residential condominiums and commercial centers in some portions of the SRP may still be acceptable to them, JICA representative Jun Watanabe said a larger
part of the SRP should be used for developments that have a high potential for creating jobs, like manufacturing firms.

Watanabe reminded city officials yesterday of the terms and conditions of the SRP loan, after hearing about unsolicited proposals to put up residential condominiums,
malls and office buildings in the SRP.

He said it might not be acceptable to the Japanese Government if the City and investors develop 70 to 80 percent of the total land area for projects that have low potential for creating jobs.

“It’s basic that we cannot allow private usage (of land) in the SRP, for example gambling and hotels, that kind of private activity. We understand and we know these kind of private activities have to be done... but to what extent this kind of private activity will come is another matter,” he said during the Priority Infrastructure Investment Plan
(PIIP) workshop yesterday.

Balance

“For example, 80 percent of land will be used for private and 20 percent is for public, maybe this is questionable because as explained, the SRP has been developed through the money of the Japanese taxpayers. They will ask why Japanese people’s taxes here are used for the private companies. But for example, 80 percent is used for public and 20 percent is used for private, we can accept that kind of private usage,” Watanabe said.

In an interview after his presentation, he explained that by public use, he referred to development projects that will create a large number of jobs even after construction.

He added that a zoning and framework plan is needed also so he can justify to the JICA board the utilities needed for the SRP, and how to develop areas for information technology buildings, commercial and residential.

It is indispensable to their operations, he said, because the board cannot accept their proposal without a plan.

JICA is one of the funding agencies being considered for the setting up of the utilities.

On paper

“There was no master plan presented to us. We know the ideas of Mayor (Tomas) Osmeña for the SRP but it has to be a written document. The master plan was already prepared before the loan agreement but at that moment, it was mainly for manufacturing.”

“But the situation has changed and with this change, they should have a master plan because it is necessary for us to justify why the City is now going into IT, tourism and not manufacturing,” Watanabe said.

“Commercial activity can be acceptable but it should be explained that it will create jobs,” he continued.

Watanabe admitted, though, that limitations on land use would discourage investors from the SRP, which is why he will consult the board on what will be acceptable to them.

For his part, ADB-Cities Development Initiative for Asia (CDIA) Program Manager Michael Lindfield said that without a development framework, the ADB will not be able to proceed with the feasibility studies for the infrastructure needed, like solid waste management, district cooling, public transport, waste management and disposal.

Long-term

“Unless we have a coherent plan that is agreed on by the local government, potential developers and infrastructure suppliers, and unless we have a government structure, meaning some way of managing the SRP on a sustainable basis, then it will be very difficult for us to plan the next phase in terms of infrastructure and to finance it because we need to know that there is a viable and sustainable way of managing the infrastructure in the long term,” Lindfield said.

In a separate interview, City Planning and Development Coordinator Nigel Paul Villarete said what is important in drafting the development framework is for the City to still have flexibility in implementing projects, and not be tied down by a detailed master plan.

“What we need is a general development framework that will allow you to have a certain idea on what kind of development you will have in your domain, and at the same time some flexibility to adjust to global changes in the future. We just need a guide,” he said.

Lindfield also cited the need for an organization or management structure that will make sure that those services will be at the SRP on a long-term basis.

While they will help lay down before February the framework plan, which will be used for planning the infrastructure needed at the SRP, he said they can only recommend some inputs. It will still be the City Government that will approve ordinances on the framework.

Lindfield also pointed out the need for a government structure to balance the interests of the City Government and the private investors, and to make sure both parties comply with their obligations in development projects.

“We can’t proceed unless we have a viable framework plan and a government structure. The pressure is on because the City already has some unsolicited bids in process. We need something concrete by February, otherwise it delays the proponent and proposals,” he added.

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City urged: Firm up plan for South Road Properties’ infra, utilities

Thursday, December 11, 2008
Linette C. Ramos
Sun.Star Staff Reporter

FOREIGN consultants recommended yesterday the creation of concrete plans for utilities and infrastructure at the South Road Properties (SRP), before the Cebu City Government sells or develops other areas of the 302-hectare facility.

Consultants of the Asian Development Bank (ADB) are concerned about the development of SRP lots into commercial, recreational, medical and condominium complexes even before a defined plan on roads, transportation and other utilities are laid down.

John Olof Vinterhav said, though, that he does not see a need for a moratorium on the sale and negotiations involving SRP lots, since their study will be completed in a year’s time.

A team of around 15 foreign and local ADB consultants led by Vinterhav started yesterday the project development for the Cities Development Initiative for Asia’s (CDIA) Priority Infrastructure Investment Plan (PIIP) for the SRP.

They will study the appropriate public transportation and road network, water supply and wastewater treatment, solid waste management and disposal, district cooling and power distribution.

Vinterhav said that as a consultant providing technical assistance, he would have preferred that they made the study on the utilities and infrastructure needed at the SRP before any development started.

Bigfoot Entertainment has already constructed and started operations in their three-hectare leased property. Filinvest Land Inc. (FLI) is also planning to develop a 50.6-hectare area, which will be bid out later this month.

“There is no need for a moratorium because we were told that there will be no sale in the next six months. We would have preferred that the FLI proposal didn’t come but it’s there already. Anyway it’s possible to do a planning even if the FLI offer is finalized,” he told reporters yesterday.

The consultants raised their concerns during the PIIP visioning and scoping workshop at the Waterfront Cebu City Hotel, which city officials and Cebu Investment Promotions Center (CIPC) Managing Director Joel Mari Yu also attended.

“If I were the one to decide, I would say don’t close any deal unless you can safeguard that there is flexibility, that the City can get back a piece of land that might be needed for utilities. But Cebu City is the owner of the property, they can do whatever they want to do. But as the provider of technical assistance, my advice is for the City to consider our
recommendations before they do anything, that they don’t close any deal before the plans are finalized,” said Vinterhav.

They were specifically concerned about a situation in the future when the City might have to set up bus terminals or a road networks on a property that has already been purchased or developed.

But Yu said the absence of detailed planning on the exact location of utilities and infrastructure does not bother them.

The City will also continue negotiating with SM Prime Holdings, Ayala Land and Pueblo de Oro, and will continue the bidding for the FLI offer.

Yu said that in all of CIPC’s negotiations with interested buyers, he has informed them of the provision in the sale, lease or joint venture contract that will allow the City to buy back any property that will have to be used for utilities and infrastructure.

“If the consultants can define now what area they want to keep for the utilities and infrastructure, it’s very easy to modify the contract. The build-up time is two to three years, we can still change the layout, dili pa madaot ang locator ana,” Yu said.

He also said that the recommendations of the consultants can always be incorporated into the individual master plan of each locator or developer.

“We don’t need to wait for the results of the ADB study. We can just amend the contracts according to the input of ADB that we want to accept from the consultants,” Yu continued.

Also during the workshop yesterday, Yu said the SRP was funded by the Japan International Cooperation Agency (JICA) in 1995 to be developed into an export zone for light manufacturing companies.

But because of the manufacturing firms’ preference for Vietnam and China over Cebu, they shifted into a mixed land use development.

He said, though, that the City and the CIPC, the marketing arm of the SRP, will still set aside some 50 hectares for light manufacturing companies.

Other developments in the SRP are the high-end retirement facility, medical tourism facility, University of the Philippines’ graduate school program, a stadium or exhibition center, mall, recreation facilities, a promenade, a marina and high-end condominiums.

In a teleconference during the workshop, Mayor-on-leave Tomas Osmeña said he envisioned the SRP not just as a revenue-generating project, but one that will create jobs, and bring in tourists, expatriates and corporate headquarters to Cebu.

“There are many possibilities for the SRP but one thing I don’t like it to be is a real estate business. Cebuanos want something more, something better. Hopefully, the time will come when we will be able to bring in corporate headquarters to the SRP,” he told the participants.

Osmeña had just arrived at his rented apartment in Houston, Texas from the M.D. Anderson Cancer Center, where he completed the second cycle of his chemotherapy, when he addressed the consultants and city officials.

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Kawit Island now officially part of South Road Properties

The Freeman
Updated December 10, 2008 12:00 AM

CEBU - The Kawit Island at the South Road Properties has been reclassified as an alienable and disposable land and has been removed from the administration of the Department of Health, said Malacañang in a letter sent to Mayor Tomas Osmeña.

The letter, sent by Malacañang Records Office Director Marianito Dimaandal, attached with it a certified true copy of Proclamation 1505, which amended an Executive Order 43, the executive order issued in 1904 that declared the island solely for quarantine use and maritime hospital services by the Chief Quarantine Officer of the DOH.

President Gloria Macapagal Arroyo issued PP 1505 in May this year upon recommendation of the Department of Environment and Natural Resources.

PP 1505 has also formally declared the island as part of the SRP and under the direct administration of the city government.

With this development, the city government and the Asian Development Bank – Cities Development Initiatives for Asia will hold today a conference to kick off the Priority Infrastructure and Investment Plan of the SRP.

At least 30 stakeholders are expected to attend the two-day conference, which will serve as a “visioning and scoping activity of the various project stakeholders,” said SRP Chief Operations Officer Nagiel Banacia.

Prospective investors and project counterparts from various offices of the Cebu City government are also expected to participate in the event.

Mayor Tomas Osmeña who is in the United States for chemotherapy treatment for his cancer will share his vision of the SRP through a teleconference.

Meanwhile, Joel Mari Yu, General Manager of the Cebu Investment and Promotions Center will tackle updates on marketing activities for the SRP such as projects investments and pending Negotiations.

City Planning and Development Officer Nigel Paul Villarete will talk on the “Role and Function of the SRP in Cebu City and Metro Cebu Development” while John Olof Vinterhav will talk in the “Rationale of the PIIP”.

Afternoon today, delegates of the conference will participate in a tour to the North Reclamation Area, the Sugbo Building, the Desalination Plant, Bigfoot Studios, Inayawan Landfill, Talisay South Road and Banilad- Mandaue areas.

Tomorrow, Jun Watanabe of the Japan Bank for International Cooperation will talk on the strategic framework master plan of the SRP while a representative of the Metro Cebu Water District will discuss the project’s water resources management action plan.

Delegates would also get to participate in workshops, which would climax with the presentation of outputs during the plenary.

Osmeña earlier said he plans to lease part of Kawit Island to selected agencies.

Before it became part of the SRP, Kawit Island was once less than 10 kilometers from mainland Cebu and had a total land area of 39,854 square meters.

Among the structures in the island are the building of the Association of Barangay Councils, SRP Administration Building, and the Office of Senior Citizens. – Ferliza C. Contratista/JMO (THE FREEMAN)

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Nalzaro: Capitol’s revenge (South Road Properties)

Bobby Nalzaro's column in Sunstar
Bobby Nalzaro

I AGREE with Mayor-on-leave Tomas Osmeña that nobody, not even the Provincial Government, can dictate Cebu City Hall on what to do with the South Road Properties (SRP). The mayor issued this statement in reaction to Rep. Pablo John Garcia’s view that Filinvest’s offer to the City is illegal and disadvantageous to the government.

Gov. Gwen Garcia’s younger brother said the purchase of 10 hectares of SRP lots should be done through competitive bidding and not a Swiss challenge. And to be fair, the City should separate the purchase from the joint venture to develop 40 hectares of SRP lots.

Garcia, being a bar topnotcher, may have some basis to his claim. But as far as Tomas is concerned, he doesn't care whether the Filinvest offer is disadvantageous to the City or not so long as he can raise revenues from the sale. I am sure that when the offer was reviewed, City Hall lawyers studied its possible legal complications


Filinvest is not also foolish to enter into a transaction with the City Government if it is illegal. The firm, a leader in land developing, is protecting the image and prestige of the company. It will not engage in illegal and questionable transactions.

I already wrote in a previous column that Capitol’s announcement that it would challenge the unsolicited proposal of Filinvest is questionable. I now think Capitol is not really serious in its offer. What will it do with the lot? And of all the SRP lots, why is it interested in those coveted by Filinvest?

Capitol’s motive is revenge. It has something to do with the city's decision to prohibit Capitol from developing its Ciudad project in Banilad.

By challenging Filinvest’s proposal, Capitol can already legally intervene even if it loses in the bidding. It acquires legal personality to go to the court and raise legal questions. If it won’t participate in the bidding, it has no basis to go to court questioning the deal.

I am sure the legal issues now raised by Rep. Garcia will be the same issues that will be raised by Capitol in court. And if there is a pending case, the implementation of the project will be delayed. Worse, Filinvest might withdraw because of some legal hassle.

And if the project is delayed or Filinvest withdraws, the City Government cannot raise revenues. Mapurnada ang income ug commission ni Tomas, kun duna man. Panglawgaw ra gyod nang ila. Ila lang palaguton si Tomas.

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CH gives go-signal to FLI’s P25-B proposal; officials still mum on Capitol’s bid (South Road Properties)

Linette C. Ramos
Sun.Star Staff Reporter

FILINVEST Land Inc. (FLI) will infuse a total equity of P25 billion, not P80 billion, in the joint venture with the Cebu City Government to develop a 50.6-hectare portion of the South Road Properties (SRP).

Even with limited details on the results of the negotiations between FLI and the City’s Joint Venture Selection Committee (JVSC), the City Council authorized the committee yesterday to proceed with the publication of FLI’s proposal, and to invite private entities to challenge it.

The special council session did not answer questions on whether local government units like the Provincial Government will be allowed to participate in the competitive challenge.

The council’s authorization to publish will allow the JVSC to collect P250 million from FLI later this week, before the invitation to pre-qualify and to submit a comparative proposal is published on Dec. 4 or 5.

City Administrator Francisco Fernandez said last night that FLI committed to invest an equity of only P25 billion for the project, as specified in the pre-qualification requirements.

FLI committed to construct 875,000 square meters of building space through an unincorporated joint venture with the City over a 20-year period, covering 50.6 hectares of land.

High-end medium and high-rise condominiums, office buildings, a retirement facility, commercial and recreational areas will be put up at the prime waterfront lots and properties along the South Coastal Road.

“The equity that they are committing is P25 billion. They only need to raise P25 billion to start the project and mao ra na ang ilang patuyok-tuyokon and at a certain point, it will reach P80 billion. So P25 billion ra sad ang kinahanglan sa mga challengers ana,” Fernandez told Sun.Star Cebu.

During the session, Councilor Nestor Archival asked the JVSC whether or not local government units will be allowed to participate in the joint venture, considering that the ordinance prescribing the joint venture guidelines covers only private entities.

“We would rather not comment on that. We will wait if there are proposals from local governments and if there are, I think that is when they would tackle it and consult legal luminaries and the city council. Until the deadline for the submission of proposals, it would be better if the JVSC refrains from commenting on that controversial matter,” Fernandez said.

A prospective challenger, the Cebu Provincial Government, did not attend the session.

‘Director’

“I am sure it (Filinvest presentation) will be covered by the media. We will make our reactions to the proposal after the meeting,” said lawyer and Capitol information and revenue generation consultant Rory Jon Sepulveda.

The Province also hit back at Mayor Tomas Osmeña, for saying that the Capitol cannot direct the affairs of the City Government, particularly in negotiations for the sale of SRP lots.

“At any rate, para sa Kapitolyo, we know that we cannot direct the city. There is only one director for the city and he’s doing his direction now through the use of his cellular phone. We don’t wish to become a director,” Sepulveda told a press conference.

Osmeña was reacting to the statement of Rep. Pablo John Garcia (Cebu Province, 3rd district) that the sale should be done through a competitive public bidding, and not a Swiss Challenge that violates the Local Government Code. He has also said the purchase of 10 hectares should be handled separately from the proposed joint venture to develop 40 hectares.

Sepulveda criticized a statement from the “director from Texas” that the City is simply following the National Economic Development Authority’s (Neda) guidelines on the
sale of SRP lots.

“Unfortunately, the director from Texas is not a lawyer. I’m telling him now he’s wrong. These Neda guidelines are not applicable to a local government unit,” he said.

Review

Businessman Crisologo Saavedra, who attended the presentation at the council session, said he will scrutinize both Filinvest’s proposal and the Provincial Government’s challenge.

“This is for the good of the Cebuanos and as part of my advocacy against corruption,” said Saavedra, who has filed cases at the Office of the Ombudsman to question allegedly anomalous government transactions.

At the session, Fernandez also told the council that FLI committed to compensate the City over a period of 20 years, including a minimum payment of P1.5 billion in cash, payable within the first three years.

In the joint venture component covering 40 hectares, FLI will also give the City 10 percent of the gross revenues from built condominium units, or a predetermined minimum guaranteed return, whichever is higher.

Fernandez did not disclose to the council the minimum guaranteed return, as the information would be made available only after the eligible bidders have been selected.

“If they are not able to sell any unit, then we get a minimum guaranteed return, which shall be over and above the price of the lot. But if they are able to sell, then we get 10 percent of their sales. This is what we are now offering to the public, for other private entities to challenge,” he told the council.

Ownership

Fernandez also assured the council that the City will remain the owner of the lot covered by the joint venture and that Filinvest will not be allowed to mortgage the property until it has fully paid for the lots through the annual share of the gross sales.

The JVSC will publish the invitation to bid in major local dailies twice, either on Dec. 4 or 5 and once more seven days after that.

The deadline for submission of eligibility documents is on Dec. 18, while the deadline for the submission of comparative proposals is 30 days after.

As stated in the pre-qualification requirements, any individual, partnership, corporation, firm or consortium, whether local or foreign, may participate in the competitive challenge.

Among other eligibility requirements, the prospective bidder or its affiliates should have at least 25 years of experience in real estate development in the country, and completed and developed a contiguous project of at least 35 hectares for a commercial business district costing at least P10 billion.

Since the minimum amount of the equity needed for the joint venture is P25 billion, the prospective bidder should be able to prove that it has access to an equivalent amount of capital.

If the bidder is a corporation, it must be a publicly listed company in the Philippine Stock Exchange and should have a stockholders’ equity of at least P20 billion. (With GMD & RHM)

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Capitol willing to work with city on South Road Properties

CEBU - Taking advantage of Cebu City Mayor Tomas Osmeña’s absence, Cebu Governor Gwendolyn Garcia yesterday visited the South Road Properties and expressed interest in working together with the city on the project that she intends to put up at the much-talked about facility.

For the first time since the province expressed interest in investing at the SRP, the governor stepped on the 295-hectare property where she was warmly welcomed and briefed by SRP management office head Nagiel Bañacia.

Before the governor left the Sugbu building, where Bañacia brought her to have an aerial view of the entire facility, the governor told him that the province is willing to work with the city.

“We should be working together, instead of fighting against each other,” Garcia said.

The governor conducted a preliminary inspection of the SRP because the Capitol is interested and wanted to challenge the proposal of Filinvest Land Inc., which intends to make a P2 billion outright purchase of the lots at the SRP.

The province is preparing to challenge the proposal of FLI to buy a 10-hectare portion of the property and to develop another 40 hectares under a joint venture with the city government.

The lot that the company wanted to develop is situated in SRP’s prime lot portion which is valued at P15,000 per square meter.

“We are serious in our bid and we did not do this to amuse anybody,” Garcia said after her short visit at the SRP.

She also instructed her appraisal team to coordinate with the city government in order to get the technical and assessment date of the lots.

The appraisal team of the province composed of provincial treasurer Roy Salubre, provincial engineer Eulogio Pelayre and provincial assessor Anthony Sususco.

Garcia said that the possibilities in doing development in the site are tremendous because of the complete utilities and facilities such as water and electricity.

The province doubts the proposal of Filinvest because under the National Economic Development Authority guidelines, a joint venture does not include outright purchase.

Capitol consultant on information and revenue generation Rory Jon Sepulveda cited the NEDA guidelines that said “a joint venture is a contractual arrangement whereby a private sector entity or a group of private sector entity or one man and government entity or group of government entity contribute money, capital permitive asset.” — Garry B. Lao and Mitchelle L. Palaubsanon/WAB (THE FREEMAN)

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Cebu to wrap up talks with Filinvest Land over its P80-B devt proposal (South Road Properties)

Written by Wilfredo Rodolfo III / Reporter
Thursday, 20 November 2008 00:07

THE Cebu City government said it expects to wrap up next week its contract negotiations for an estimated P80-billion unsolicited development proposal of Filinvest Land Inc. (FLI) for a large portion of the reclaimed South Road Properties (SRP).

The city’s administrator and chief negotiator Francisco Fernandez told reporters the draft joint-venture agreement is nearing completion and should be out for publication by December.

“Pending any problems, we expect to sign the formal joint-venture agreement by Januart 17. This would mean construction could start,” Fernandez said.

“We are currently talking about the area FLI will develop, what their plans are for the property and what income guarantee they can give the city,” he said. He added that since the agreement will be opened to a Swiss Challenge following government rules on unsolicited proposal, the city is also starting to set up parameters on how the challenge will be measured.

Fernandez said the challenges to the FLI proposal will be measured according to the net present value and the income it will give the city in the succeeding years.

The city also wants to make sure there are “guaranteed investments” in the property—that developers will actually build on the property immediately. “The city is not after land-sales proceeds but to spur development and provide jobs,” Fernandez said.

The Cebu provincial government earlier announced it is contemplating on challenging the proposal of FLI.

FLI, in its original proposal presented to Mayor Tomas Osmeña, said it would build on the long-term P80 billion worth of development over 60 hectares of the 290-hectare SRP.

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Capitol to invest in South Road Properties

CEBU CITY -- The Cebu Provincial Government announced Monday plans to go into commercial development in the South Road Properties (SRP), the pet project of Mayor-on-leave Tomas Osmeña, Capitol's top critic. Capitol is also preparing to challenge the proposal of Filinvest Land Inc. (FLI) to develop a 50-hectare portion of the SRP.
"The Province is interested nga maka-invest mi sa among gamay'ng kwarta (in investing our little funds), so we decided to do commercial development in the south district, especially in the South Road Properties," Capitol information and revenue generation consultant Rory Jon Sepulveda said in a press conference Monday.

The announcement was met with surprise by at least one City Hall official. Acting Cebu City Mayor Hilario Davide III wondered why the Provincial Government is suddenly interested to challenge Filinvest's offer when Capitol officials have consistently criticized the SRP.

"Are they serious?... Frankly speaking, I can't help but entertain doubts and surprise. I don't know their motive but if they are serious, let them submit their proposal then we will study it," Davide told Sun.Star Cebu.
Sepulveda said Cebu Governor Gwendolyn Garcia instructed him to draft a request relative to the guidelines of a joint venture with a local government unit (LGU).

Davide, however, said the ordinance that covers the City's negotiations with FLI does not include offers from LGUs.

Davide also said he has not come across any joint venture between two LGUs, or one LGU investing in another LGU.

"The ordinance is silent on LGUs investing in the SRP, there is no provision there that says that an LGU can join the bidding so we have to check first how the City will go about it. This is something novel but we will study their proposal," he said.

Davide, the author of the ordinance, pointed out that as stated in the measure and as announced by Osmeña earlier, any challenger of the joint venture offer of FLI must have the financial and technical capability to undertake the project.

In her State of the Province Address in July, Garcia said Cebu is the richest province in the country, posting P17 billion in assets in 2007 while remaining debt-free.

"We realized that we cannot just sit down idly and do nothing especially ilang gibalik-balik og announce nga wala'y development sa provincial properties," said Sepulveda.

Sepulveda said the proposal was hatched in a meeting with Governor Garcia, Representative Pablo John Garcia (Cebu Province, 3rd district) and Pablo Garcia (Cebu Province, 2nd district) over the weekend.
He said the scheme will be submitted to the Provincial Economic Enterprise Council (ECC) for evaluation and approval.

Sepulveda said Capitol is organizing a team to study the offer. He said the province is prepared to do the Swiss challenge or make another offer.
The Capitol consultant said the Provincial Government is thinking of innovative ways to generate resources rather than relying on traditional taxation.

FLI is proposing to buy a 10-hectare portion of the SRP amounting to some P2 billion and developing 40 more hectares under a joint venture agreement with the City Government.

Its officials said they plan to invest some P80 billion to build several high-rise and medium-rise condominium units, office buildings and a retirement and hospital facility at the SRP.

In a phone interview Monday, City Administrator Francisco Fernandez, also the Joint Venture Selection Committee (JVSC) chairman, said he will check with the committee members Tuesday and the city councilors if the bidding is open to government entities.

Whether or not Capitol is serious with its plan, he said the committee will consider the Province's offer for review once they receive a copy.

"There might be much ado about nothing if they are not serious. They will have to make a substantial deposit of some P250 million once they challenge FLI's offer, and meet other requirements," said Fernandez.

"We also have to check if they are capable of implementing the project. Money is not the only consideration here. The challengers need to have enough experience and have done similar projects in the past. We will have to review the ordinance to check if LGUs are entitled to join the bidding," he added. (GMD/LCR)

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Tom asks people’s help to fight ‘landgrabber’ (South Road Properties)

THREATS of a lawsuit by Talisay City officials and their claim over a 50-hectare portion of the South Road Properties (SRP) will not affect Cebu City Hall’s ongoing negotiations with Filinvest Land Inc. (FLI), city officials said yesterday.

While Acting City Mayor Hilario Davide III and City Hall’s Joint Venture Selection Committee (JVSC) are confident of the City’s ownership of the SRP, Mayor-on-leave Tomas Osmeña sought his constituents’ help in protecting SRP from a “landgrabber,” apparently referring to Rep. Eduardo Gullas (Cebu, 1st district).

Gullas said last Wednesday that the Talisay City Government is expected to take legal action if Cebu City tries to sell the 53.44 hectares it is claiming.

In a text message sent from Houston, Texas where he is undergoing treatment for his bladder cancer, Osmeña asked Cebu City’s constituents to stand up for the 302-hectare facility.

“Please tell the people of Cebu City that I am sick and cannot defend the SRP as much as I would like to. I need the help of my constituents against this landgrabber. I
did this project for you and not for myself. Please stand up and help me defend what is rightfully yours,” his text message read.

Davide said yesterday that he was surprised why Talisay’s officials are saying they did not know about the titling of the SRP lots that Talisay claimed.

City Administrator Francisco Fernandez, also chairman of the JVSC, said if Talisay will question the titles issued to Cebu City, it should sue the President for signing the presidential proclamation on the SRP’s ownership.

“As far as the ownership issue is concerned, Filinvest Land has no doubt that Cebu City owns the SRP. It took us three years to get those titles, even DENR denied their claim... I’m surprised that they were surprised that the lots were titled under the City’s name, because they knew all along,” Davide told reporters.

Davide further said that if Talisay City officials are questioning the titles of the SRP, they will also have to question the presidential proclamation stating that the SRP is within and is owned by Cebu City.

Talisay will also have to question the opinion of the Department of Justice (DOJ), which decided in favor of the Cebu City Government, he said.

“The title is no longer an issue. I don’t think it will affect our negotiations,” he continued.

Except for the unfilled 60-hectare Pond A and a two-hectare lot claimed by the Ting family, all other lots at the SRP, spanning some 210.074 hectares, were titled in the Cebu City Government’s name in September 2005.

For his part, Fernandez said yesterday that ownership of the SRP was not discussed in any of their meetings on the ongoing negotiations with FLI “because the titling is a non-issue.”

“That is no longer an issue. Ang among contention ana is that they know the titles have already been issued, they know that there is a Presidential Proclamation on that.

They should sue the President for issuing that document,” he added. (LCR)

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Lack of consultants hounds ADB project (South Road Properties)

By Marian Z. Codilla
Cebu Daily News
First Posted 15:09:00 11/12/2008

Cebu City, Philippines - The search for four more consultants has pushed back the start of an Asian Development Bank (ADB) technical assistance study on the South Road Properties (SRP) from last Monday to the end of the month.

John-Olof Vinterfav, land management specialist of the ADB-Cities Development Initiative for Asia (CDIA), said the group still needs to find four more consultants to complete the set of eight consultants for the pre-feasibility study of the utilities that would be used in the SRP.

The technical assistance project is covered by a $499,000 grant from the ADB and will cover the study for the water supply, district cooling, urban planning, social concerns, legal issues, financing, environment and transportation in the SRP.

Vinterfav said the results of the study will be implemented by the Cebu City government to help improve the SRP.

However, the target date to start the study will have to be moved to the end of November or as soon as the group can hire the consultants.

The study will be done in two phases -- the first phase will involve the investment priority plan while the second phase will involve the pre-feasibility study of the SRP.

The second phase of the project will also determine the costs of the projects to be undertaken at the SRP and the activities and the kind of projects that would be undertaken in the area.

The first phase is expected to start from end of November to January next year while the second phase will follow on February until November next year.

“We are assisting the city in defining what needs to be done in the SRP and not to assist the investors although we also need to listen to them as we know there are a lot of investors interested in the properties,” Vinterfav said.

He said the Bus Rapid Transit system and the plan to connect the SRP to barangays (villages) Pardo and Toong through a 5.6 kilometer highway will be included in the study as it is related to how the SRP will be integrated to different parts of the city.

“SRP is a major part of the city and so we are assisting the city in defining what will be done,” Vinterfav said.

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South Road Properties investors remain upbeat

By: Linette C. Ramos
Sun.Star Staff Reporter
Monday, November 10, 2008

INVESTORS are optimistic about their plans at the South Road Properties (SRP) despite the tedious process of acquiring lots there and the economic meltdown in the US.

Filinvest Land Inc. (FLI) Vice Chairman Andrew Gotianun Jr. said they expect to finish negotiating with the City Government and close a deal on the SRP lot purchase by the middle of January, if negotiations succeed.

They submitted yesterday their proposed joint venture (JV) agreement to the City Government’s JV Selection Committee (JVSC) for review.

Bigfoot Global Solutions chief executive officer Michael Gleissner also disclosed the additional P50 million in investment that he will put into their entertainment complex on a leased property at the SRP, which was inaugurated last Saturday.

Timetable

Although Mayor-on-leave Tomas Osmeña is “tough” to negotiate with and won’t reduce the price of SRP lots, he said he is still optimistic he can eventually buy lots in the 302-hectare facility.

Gotianun and Gleissner discussed their proposals and plans with Osmeña at the airport yesterday while the mayor waited for his flight to Manila.

“We’ll try to finish it by mid-January,” Gotianun told reporters, saying he is optimistic that FLI can work on the timetable set by the JVSC on the FLI negotiations.

FLI made a formal offer to buy 10 to 13 hectares of land at the SRP and to develop 40 more hectares under a joint venture with the City Government.

When asked if they will match any counter-proposal from other interested parties, Gotianun said: “We will study it. It’s always like that if you go through this kind of bidding... It’s like what happened to the NAIA Terminal 3.”

FLI’s offer will be subject to a competitive bidding similar to a Swiss Challenge, where other developers will be allowed to compete and buy the property at a higher price and give the City a bigger share in the JV agreement than what FLI offered.

Match

Gotianun said FLI previously turned down a chance to match the winning bidder’s offer, as in the case of the Ninoy Aquino International Airport (NAIA) Terminal 3, “because the proposal of the competitor was way off-course.”

Despite the economic meltdown in the US, which forced Bigfoot Global Solutions to lay off 40 of its 500 employees in Cebu, Gleissner said he intends to pursue the expansion project at the Bigfoot Entertainment complex.

He has so far invested P150 million for the four soundstages for the international movie studio, and will invest P50 million more to put up retail shops, residential buildings and a boardwalk beside a pond.

The facility stands on a two-hectare lot they are leasing from the City for 25 years.

“We actually preferred to purchase, but as the first investor there, the lease was the option available to start things. The mayor here is a very tough negotiator and he’s not going to give the lot for a cheap price,” he said.

Gleissner said that the US’ financial crisis affected his call center business but he is optimistic that his filmmaking business will survive the crisis and he will be able to expand this.

Bigfoot Entertainment has so far produced eight feature films and has done post-production work for US-made films.

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The city according to Tommy: South Road Properties holds promise of Cebu’s future

By Mitchelle L. Palaubsanon
The Freeman
Sunday, November 9, 2008

The future of Cebu City is rooted in the success of the South Road Properties. This was the main message conveyed by Cebu City Mayor Tomas Osmeña yesterday in his State of the City Address at the Cebu Coliseum, the first time it was held outside City Hall.

Osmeña, who is serving out his last term and is expected to return to the United States today to continue his cancer treatment at the M.D. Anderson Cancer Center in Houston, was so upbeat about the future that he promised to provide qualified senior citizens in the city a yearly allowance of P2,000 to be sourced from proceeds of SRP sales.

Osmeña, who talked about the SRP much longer than other subjects in his more-than-an-hour speech, said two major sales are expected to be finalized within the year, one to Filinvest Land Inc., and another to a company he did not identify.

“I want to see Cebu prosper. We have to do something extra to improve the image of Cebu. We are much better off than we were before and I will not allow anyone to stop us,” the mayor said, in an apparent jab at critics who have belittled the status of the SRP, to the thunderous applause of 10,000 supporters.

The mayor told the crowd it is true Cebu City has come into debt because of the SRP. In fact, he admitted, the city is “number one in the country in terms of debts,” but he said there is nothing wrong with that if you have assets.

In 1995, the city secured a P3 billion loan to build the 300-hectare SRP, placing the value of the land at the time at only P1,000 per square meter. And because of the continued fall of the peso against the US dollar, the city’s debt grew to P6 billion, consequently doubling the value of the land at SRP to P2,000 per square meter.

“That is our utang (debt), two thousand pesos per square meter. But our first sale at SRP to Filinvest is for fifteen thousand pesos per square meter. So naa ta ginansiya ana. Dili ta alkansi. Galing lang naay mga bugo nga wala sila nakakita ani (so we have profits there. We did not lose. But there are those who are dumb enough not to have seen this),” the mayor said, again to thunderous applause.

Filinvest is one of the largest real estate companies in the Philippines and it is offering an outright purchase of ten hectares of the SRP worth P2 billion. Aside from this, Filinvest has also offers the city a joint venture to develop 50 hectares of the SRP property.

Osmeña said that in 1988 when he first became a mayor, he envied his cousin, then Cebu governor Emilio Osmeña, who sold province-owned properties to various investors while the city has no land to sell.

“We had nothing and now we have something. Cebu City is moving forward,” the mayor said.

The mayor also announced the launch of a facility of Bigfoot Entertainment at the SRP, the first investor to set up in the area. The Bigfoot property will be the first international movie studio in the country. Bigfoot has so far invested P2 billion in the city.

Osmeña said Bigfoot is bringing a new industry to Cebu and is training Filipinos how to make movies, not the Manila way, but movies that would rival those made in Hollywood.

So far, the only income from SRP had been P25 million representing the lease payment of Bigfoot for 25 years.

The mayor did not talk lengthily about his health, saying only that he is going to undergo chemotherapy twice a week. He said he would rather talk of the “health of the city” than his own.

He also challenged the City Council to continue to move the city forward even without him, saying he is the only mayor in the entire country who delegates so much of his executive powers to people he believes can perform better.

“Now is the time to test these people while I will be away for two to three months. I don’t know the future but no one can take away the great privilege of serving you. I’m very proud of that,” said the 60-year-old mayor, who has been diagnosed with cancer in the urinary bladder.

In reaction, city councilor Edgardo Labella said the mayor “has set the direction for all of us in his absence. We have to respond accordingly and consider it as a challenge to do better.”

The mayor cited the accomplishment of the city in reducing the number of dengue cases to just 41 this month compared to the 370 cases for the same period last year.

His wife Margot later thanked supporters for their continued support and prayers, reassuring them that the mayor is being treated in the best hospital in the world for his kind of disease by the best doctors.

“We are blessed to have each one of you. Tommy is a good man. He is a good patient now. Unlike in 2002 nga badlungon gyud (when he was mischievous). Maybe tingali kay senior citizen na man siya (maybe because he is now a senior citizen),” Margot said in jest. (/JST)

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Bigfoot inaugurates P2B facility at South Road Properties

The Freeman
Sunday, November 9, 2008


Bigfoot Entertainment has made a mark in Cebu and the entire Philippines by becoming the first investor to pour billions to build a two-hectare complex at the South Road Properties that was inaugurated yesterday.

Cebu City Mayor Tomas Osmeña said the recently inaugurated Bigfoot complex is the first international movie studio in the country. As of yesterday, Bigfoot has invested a total of P2 billion in the city, he revealed.

“Bigfoot is bringing new industry to Cebu. It is training Filipinos how to make movies, not the Manila way but movies that would rival Hollywood,” the mayor said.

During the groundbreaking ceremony of the project last year, Osmeña said that Bigfoot’s property at the SRP will house state-of-the-art filmmaking facilities that will be at par with the famous international film outfits such as Universal Studios and Warner Brothers Studios.

The city government has allowed Bigfoot to rent a two-hectare lot, or 20,000 square meters, for close to P30 per square-meter. The company is planning to lease 12 more hectares for its expansion.

The city has already received at least P25 million from Bigfoot as advanced rental for five years.

Phase 1 of the project is the development of a quad shooting stage on a hectare of land. This studio will house the complete support facilities such as director and producer offices, star dressing rooms and suites, wardrobe rooms, hair and make-up, the art department and camera and equipment rooms. The shooting stage will also be equipped with a helicopter pad.

The second phase is the development of the fabrication and mill buildings. These will have construction services encompassing everything from individually-fabricated elements to a complete set construction.

Bigfoot Entertainment is comprised of Bigfoot Productions, Bigfoot Studios, the International Academy of Film and Television, New Cebu Films and Fashion TV Singapore and Philippines. — Mitchelle L. Palaubsanon/WAB

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More jobs seen as CH, firm open 1st movie studio in RP (South Road Properties)

By Linette C. Ramos
Sun.Star Staff Reporter
Saturday, November 08, 2008

WITH promise of livelihood and job opportunities for ordinary Cebuanos, Cebu City Mayor Tomas Osmeña announced yesterday the opening of the first international movie studio in the country at the South Road Properties (SRP).

Bigfoot Entertainment’s two-hectare complex, dubbed as the Hollywood of Asia, will be inaugurated today, and is seen to create a lot of job opportunities and livelihood even for the urban poor.

Osmeña will join Bigfoot Global Solutions’ owner and president Michael Gleissner for the opening at 10:30 a.m., before proceeding to the Cebu City Sports Center for his 2 p.m. State of the City Address (Soca).

Considered a preview of this afternoon’s Soca, the mayor gave a speech at City Hall yesterday, discussing his health condition, his indefinite leave, his vision for the SRP and Cebu City, and the prospect of losing his hair when he undergoes chemotherapy in the US.

Although a prepared draft of his Soca mentions his sentiments for the Cebuanos as he prepares to leave, and a revisiting of his 22 years in Cebu, the mayor said he will not dwell on his illness when he faces thousands of Cebuanos today.

“I will talk about my health but I will not dwell on it. I will say that I won’t be able to come back after until Christmas, or maybe longer,” Osmeña said, adding that he will focus on the vision, directions and strategies of the City.

At the social hall yesterday, the mayor broke the rather somber mood when he told the crowd that urinary bladder cancer will make him lose his hair and sex appeal, drawing laughter from the visitors.

“Dili ko kasulti unsay epekto sa chemotherapy because sometimes mahulog kuno ang imong hair, mawala akong sex appeal. Ambot lang kaha kung ganahan ba mo na mubalik ko na wala na’y sex appeal (I can’t say what the effects of the chemotherapy will be. I could lose my hair and my sex appeal. I don’t know if you’d still want me back without my sex appeal),” he said in jest.

“In the meantime, many people are concerned but wala na tay mahimo. Whatever is there, is there we just have to deal with it. Now whatever happens to the City, it’s a good opportunity for the vice mayor to prove himself,” he continued.

While he is not prepared to lose his hair, Osmeña said this is the least of his concerns when he gave his doctors instructions to pursue aggressive chemotherapy when he returns to M.D. Anderson Cancer Center in Houston, Texas next week.

In a speech delivered before some 200 city officials and employees, businessmen, government officials and friends at the City Hall yesterday, the mayor announced the opening of the complex, which he said will boost the country’s movie industry.

“This will have a multiplier effect in terms of job opportunities, everyone will benefit from this industry. They spend $40 million to make a movie and a lot of people are given jobs, from the accountant to the costume maker, the cameramen. And the actors come here and spend their money here, eat in the restaurants, go to the spa, mudaghan ang mga masahista, daghan ang makatrabaho” said Osmeña.

Aside from the opening of the Bigfoot Entertainment complex, the first locator at the SRP, Osmeña will also report today other developments on the 302-hectare facility, including the proposed transport system and security measures there.

He announced yesterday the ongoing negotiations with the Armed Forces of the Philippines (AFP) to have some 110 personnel of the Citizens’ Armed Forces Geographical Units (Cafgu) guard the SRP.

The AFP will provide a six-month training and firearms to the Cafgu personnel, while the City will take care of their uniforms.

For its part, the City will give the personnel honorarium and financial assistance.

Also yesterday, the Cebu City Police Office (CCPO) assured that security will be tight at the sports center area to ensure the safety of the people.

CCPO Director Patrocinio Comendador said they anticipate the thick crowd that will gather for the Soca, that is why they will field a sufficient number of policemen to secure the area and to prevent crimes.

Meanwhile, City Hall does not expect to finalize the sale of a portion of the SRP to Filinvest Land Inc. (FLI) until mid-January yet after some legal matters delayed the negotiations.

When before the city officials were optimistic that it will make a sale before the end of the year, City Administrator Francisco Fernandez said yesterday that the projected date of the signing of the joint venture (JV) agreement will be on Jan. 17 yet.

The JV Selection Committee (JVSC) prepared a new timetable for the expected progress on the negotiations with FLI.

Fernandez said that the delay was due to FLI’s failure to submit on time the proposed JV agreement, which they had to refer to their lawyers for review. FLI is expected to submit the proposal today.

“We made a new timetable and the final signing is set on Jan. 17 because there were legal requirements that had to be complied with, more on the part of Filinvest, mostly internal. But the timetable is subject to change if things go wrong in the negotiations,” he told Sun.Star Cebu.

And because Osmeña and other City officials have been discussing the JV terms and conditions with FLI for over two years already, Fernandez said he expects the negotiations to proceed smoothly.

“What we’re doing now is only for formality because the substance of the deal has been discussed for two years already. The signing of the sale would have been earlier but nadelay ta gamay because last week, Filinvest did not submit the proposed JV agreement because of some legal concerns,” he continued.

FLI is offering to buy 13 hectares of land at the SRP and develop 40 hectares under a JV agreement with the City Government for a high-rise and medium-rise condominium complex, retirement facility and office buildings.

Even if there are some delays, the City is expected to receive a portion of the initial down payment for the sale by Nov. 22, when the JVSC holds the first publication of the FLI offer as part of the bidding process.

Under the City’s guidelines in entering into a JV agreement with private entities, which was patterned after the National Government’s guidelines, FLI will be required to make a deposit of one percent of the total project cost upon the first publication.

If the first phase of FLI’s project will cost P25 billion, the City will get some P250 million by Nov. 22, Fernandez said.

“Once they pay us the one percent, that can be interpreted as a sale. But if your interpretation of a sale is the signing of the agreement, then that will be on Jan. 17,” Fernandez added.

According to the timetable prepared by the JVSC, they expect to declare the negotiations successful on Nov. 11, and hold the first and second publication on Nov. 22 and Nov. 29, respectively.

Other qualified developers who will match the FLI offer will be given until Dec. 29 to submit their complete counter proposals.

By Jan. 8, the JVSC already expects to award the contract to the winning bidder and endorse it to the City Council for approval. (With MEA

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South Road Properties joint deal being drafted--mayor

By Marian Z. Codilla
Cebu Daily News
First Posted 11:42:00 11/07/2008

THE Cebu City government and Filinvest Land Inc. are still drafting their joint venture agreement to develop a portion of the South Road Properties (SRP).

SRP negotiation updates and the city's commitment to help the poor constituents will be taken up by Cebu City Mayor Tomas Osmeña during his City Address (Soca) on Saturday.

The venue was moved to the Cebu Coliseum from the Cebu City Sports Center since it might rain tomorrow.

Osmeña reported for work at City Hall yesterday, a day after he quietly arrived from a four-week trip to the United States.

He was greeted first by reporters at the lobby and was welcomed by Cebu City administrator Francisco Fernandez and some barangay officials, and city officials.

Osmeña yesterday defended the SRP negotiations from criticisms by Gov. Gwendolyn Garcia's allies.

“We are very strict in following a protocol. We are adopting national guidelines for government owned and controlled corporation on how to do a joint venture. We are following the exact protocol. The issue brought up by the province is the issue on transparency. We have been transparent when we say we are drafting an agreement with FLI,” he said.

Osmeña said lawyers of FLI are drafting the agreement and the city government officials expect to have it in a few days.

FLI is proposing to develop a 50-hectare property in the SRP where 40 hectares will be on a JV while the other 10-hectare will be an outright sale worth P2 billion.

“We are not following the rules of Tommy Osmeña but we are strictly following that National Economic Development Authority (Neda) guidelines,” Osmeña said.

On the initial proposal of FLI, the city will be collecting 10 percent of the sale or lease of whatever the FLI will be developing such as condominiums, and hotels.

The mayor just brushed off the reports of the Commission on Audit that the city tops the list of all the cities with the largest liabilities.

The liability was mainly due to the multi-billion loan acquired by the city for the SRP.

“Sure the province tops the list of provinces with most assets but it is because there assets are located within Cebu City,” he said.

“We are number one in the cities with debts....no problem with debts as long as we have assets. Naa tay utang...so are we poor?”

Osmeña said he is confident the city can pay the loan, which has reached $3 million due to interest rates, in the next three to four years.

Osmeña said he would answer the issues raised by the province during his Soca.

He said he would have wanted to hold his Soca at the sports complex to remind Cebuanos of his first accomplishment with then councilor Joy Augustus Young.

He reiterated that he would not resign even if he was battling cancer.

“Why will I resign? There is no reason at this point that I will be resigning,” he said.

He said Cebu City should not focus on his illness but see his cancer as an opportunity to be independent and not rely entirely on the mayor.

“The number one responsibility or duty of the father is to make their children not depend on you. You teach your children everything that you know so that one day they will not need you anymore or maybe they can even be better than you. The responsibility of the father is how to be useless in the future so that your children will not depend on you,” he said. /With Correspondent Jully Venus Cuizon

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SM eyes 20-hectare property in Cebu for mall, IT buildings (South Road Properties)

CEBU — Mall developer SM Prime Holdings, Inc. is looking at a 20-hectare lot within the South Road Properties for a planned shopping mall, hotel and two information technology (IT) buildings.

SM Prime President Hans T. Sy said they were in talks with the Cebu City government, which owns the properties, through the latter’s marketing arm, the Cebu Investment Promotions Center (CIPC).

"Negotiations are still going on... We’re still keeping our lines open," Mr. Sy said in an interview during the launch of the north wing of SM City Cebu.

SM Prime originally expressed interest to develop the entire 300-hectare reclaimed property.

But the local government wanted to sell the lots to several entities who will develop large chunks of the property into industrial, commercial, tourism-oriented and mixed-use blocks.

So far, Cebu City has received an unsolicited proposal from Filinvest Land, Inc. to develop about 50 hectares of the South Road Properties.

"What we wanted before was not okay. But it’s fine because we have this crisis now, although we’re not affected by the crisis," Mr. Sy said.

"We are very much on track and we are still continuing with our expansion program," he added.

He said SM would build a mall on the 20-hectare lot. The company plans to introduce a mixed-use development in the area.

"Definitely, [we will build] a mall and we’re looking at other developments. We’re always open for possibilities," he added.

CIPC Managing Director Joel Mari S. Yu said SM Prime officials had told him that the company would immediately build a mall, a hotel and two IT towers as soon it buys the lot.

"That mall will be the second biggest in the Philippines, next to the Mall of Asia. I asked them where this confidence is coming from and they assured me that they know what they’re doing," he said.

If things go as planned, SM Prime might submit its unsolicited proposal to the city government in the first quarter of 2009, he said.

The city government’s joint venture selection committee, created to evaluate unsolicited proposals to develop the South Road Properties, is now evaluating the Filinvest proposal.

Filinvest wants to buy a 13-hectare lot for about P2 billion and jointly develop it with the local government into a mixed-use commercial center that will include recreational facilities, residential condominium and IT buildings.

Mr. Yu said they hoped a bidding would be held before the end of the year to accommodate other developers who might offer a better deal.

The sale and development of the South Road Properties will allow the Cebu City to pay amortization and interest for a P5-billion loan from the Japan Bank for International Cooperation.

It obtained the loan to reclaim the property, which has since been registered as a special economic zone with the Philippine Economic Zone Authority.

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Filinvest to submit complete proposal (South Road Properties)

Sunday, October 26, 2008


The Cebu City’s joint venture committee that studies the multi-billion proposal of Filinvest Land Inc. to purchase and develop a portion of the South Road Properties is scheduled to convene on Tuesday, a day after the proponent submits its complete business proposal on Monday.

Cebu City administrator Francisco Fernandez, who heads the committee, said the formal negotiation on the proposal will begin on Tuesday and they expect it done within 10 days.

The committee is tasked to evaluate the proposal of Filinvest and make a recommendation for approval of the mayor and the City Council.

Filinvest, one of the largest real estate companies in the Philippines, is offering an outright purchase of the 10-hectare hectare portion of the SRP worth P2 billion.

Aside from this, Filinvest also offers a joint venture with the city government to develop 50 hectares out of the 300-hectare property.

So far, Fernandez said that there has been no “feelers” or other developers expressing their intent to compete with Filinvest’s offer.

Once the committee’s recommendation is approved by the City Council and the mayor, it will be published in a newspaper of general circulation to give other developers a “competitive challenge.”

The publication of their approved recommendation is to give other developers the chance to challenge the offer of Filinvest and see if they could give a better deal than what is offered by the Filinvest, should there be any.

After publication, any developer has 30 days to challenge Filinvest’s proposal.

If the challenger offers a better deal, the committee will evaluate as to whether it has the capacity to compete or the capability to invest money and develop the proposed project.

The committee will also see to it that the bid of the challenger is more favorable for the city as compared to the offer of Filinvest.

Fernandez is optimistic that they will be able to close the deal with Filinvest before the end of the year.

Just recently, the National Power Corporation expressed its intention to purchase a 3,000 square meter lot at the SRP to use it for its new regional office. —Mitchelle L. Palaubsanon/WAB

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Mall owner to buy South Road Properties lot

Sun.Star Cebu
Tuesday, October 21, 2008

UNSUCCESSFUL with its planned takeover of the South Road Properties (SRP) last year, SM Prime Holdings Inc. now wants to buy a 20-hectare lot for a mix-use development project.

Aside from a hotel and a mall, SM also wants to build two information technology (IT) towers immediately, said Joel Mari Yu, managing director of the Cebu Investment and Promotion Center (CIPC).

Yu said that SM is negotiating for a combination of a lease and an outright purchase of interior lots and some portions along the South Coastal Road.

While they are inclined to enter into a sale and lease agreement, CIPC is not discounting the possibility of a joint venture, he said. CIPC is the marketing arm of the SRP.

“There is a formal offer already from SM and we are making a counter offer. I’m listening to their proposals and, so far, it’s going to be advantageous to the City.

Everything is still under negotiation but Mayor Tommy Osmeña told me to process it already,” he said in a phone interview last night.

Second biggest mall

If their plans push through, SM will build in the SRP the second biggest mall of the company in the country or next to the Mall of Asia in Manila.

At City Hall yesterday, the Joint Venture Selection Committee (JVSC) turned over to Acting Mayor Michael Rama its recommendation to accept, in principle, Filinvest Land Inc.’s (FLI) proposal for further negotiations.

Rama said he will decide on the matter after reading all the details of the unsolicited proposal and the committee’s recommendations.

“Offhand, it was something very attractive but I will have to look at other documents first before I will decide whether I will accept or reject it,” he told reporters.

FLI is proposing to buy 10 hectares of land and to develop 40 hectares under a joint venture agreement with the City. It plans to put up several condominiums, office buildings, a medical and retirement facility in the SRP.

As for SM’s proposal, Yu said that the mall developer had originally planned to buy a 50-hectare portion but found the price too high.

Its officials asked the City to reduce the price but Yu said they cannot do so because the minimum floor price for the three classifications of lots are fixed and was already approved by the Commission on Audit (COA).

In March last year, top executives of SM Prime Holdings Inc. submitted a financial proposal to CIPC on their plan to take full control over the entire 295-hectare facility.

SM’s multi-billion-peso offer included “taking over the full obligation of paying” for the balance of Cebu City Hall’s P6.3-billion loan with the Japan Bank for International Cooperation that was used for the reclamation project. (LCR)

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South Road Properties team’s ‘smell test’

Monday, October 20, 2008
By Linette C. Ramos
Sun.Star Staff Reporter

AT the corner of one of the access roads in Cebu City’s South Road Properties (SRP) is a sign that welcomes visitors to the Hollywood of Asia.

But with the garbage dumpsite visible from the Bigfoot Entertainment complex and the overwhelming stench reaching its premises, it’s in stark contrast to the Hollywood in Los Angeles, California.

City officials are aware of the problem and have started to act on it, SRP Management Office head Nagiel Bañacia said.

This week, City Hall will make an emergency purchase of filling materials and aggregates that will be used to cover the garbage dumped in the Inayawan sanitary landfill, to eliminate the odor.

Tree-planting activities have also been initiated around the dump site to cover the mountains of garbage that accumulated there.

Worse when it rains

Bañacia admits the garbage facility is one of the negative factors affecting the marketability of the 302-hectare SRP.

Rodel Mancao, a security guard at the Bigfoot Entertainment complex, said they have gotten used to the stench, which worsens during heavy rains.

“Basta muuwan na gani, unya dad-on sa habagat diri ang baho, hastang baho-a gyud lagi. Sa kadugayan naanad na man lang mi, ambot lang kaha sa mga tag-iya diri na mga foreigner pero siguro ko nakabantay na sad na sila (When it rains and the winds carry the smell here, it really stinks. We are getting used to it, but I don’t know about the owners),” he told Sun.Star Cebu.

The Bigfoot complex is separated from the landfill by the General Services Office (GSO) maintenance compound. A wire fence separates the landfill from the GSO.

Bigfoot president and chief executive officer Michael Gleissner has so far paid P25 million for a 25-year lease agreement on a two-hectare lot there.

A barangay intelligence network (BIN) guard on duty at the GSO said they are lucky if the garbage is topped with aggregates, which does not happen every day these days because of a shortage in filling materials.

“Usahay matabunan, so mawala ra ang baho pero sunod adlaw mubaho na sad. Anad na mi anang bahoa diri, mura na lang ug wala, dili lang mi muangal pero ang mga mamalitay diri, mureklamo gyud sa kabaho (Sometimes they cover the garbage and on those days, it’s not so bad, but the next day, the stench returns. We no longer complain, but I’m sure the prospective buyers will),” Gaudencio Manresa said.

His colleague at the Sugbu Building in Kawit Island said the stench reaches the SRP administrative building, several kilometers away from the Bigfoot property beside Pond A.

Bañacia said that Bigfoot officials earlier raised the problem, and the City has since acted on it.

Once completed, the Bigfoot Entertainment property will have four 1,200-square meter soundstages like those in Hollywood in Los Angeles, production offices, Hollywood suites, a crafts and sets shop and a fabrication building.

It is also planning to purchase 16 hectares of land for their expansion projects, which will include an executive hotel, administration offices, specialty restaurants and cafe, a spa, swimming pool, nature park and a mini-zoo.

City Administrator Francisco Fernandez admitted that interested buyers of SRP lots have raised concern on the proximity of the landfill to the properties they want to buy.

“We’re getting complaints about it, we already got a complaint from Bigfoot and we don’t intend to hide it. The landfill is there and they’ve seen it but we assured them that we intend to eliminate the smell,” he said.

The problem on the stench had Mayor-on-leave Tomas Osmeña worrying over it even while he was in the hospital just hours before his surgery.

“That was his concern before and after his operation, so definitely we will address the issue. The heavy rains damaged the internal roads, that is why we couldn’t transport the soil cover to the area. But we will solve that this week,” Fernandez said yesterday.

He admitted, though, that these are only short-term solutions.

The City intends to get a private firm to manage the landfill, which will include measures to eliminate the stench.

Fernandez said they are now talking to three private firms, including those that are managing the dump sites in Payatas and Montalban in Metro Manila.

The long-term solution would be the proposed transfer of the landfill to Barangay Kalunasan, which is still being evaluated by City Hall and barangay officials, he added.

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FLI asks City to keep talks confidential (South Road Properties)

Friday, October 17, 2008
By Linette C. Ramos
Sun.Star Staff Reporter

ON the request of Filinvest Land Inc. (FLI), members of the Cebu City Government’s Joint Venture Selection Committee (JV-SC) will sign a confidentiality agreement to keep negotiations under wraps.

The nine-member JVSC formally received yesterday the detailed unsolicited proposal of FLI to develop a 50-hectare portion of the South Road Properties (SRP).

In a closed-door meeting with the committee members, City Administrator Francisco Fernandez said FLI officials asked them to sign a confidentiality agreement while they negotiate on the terms of the sale and the joint venture (JV).

Agreement

The members of the committee will sign the agreement during their first formal meeting on Saturday.

While they pledged to be transparent on all transactions involving the SRP, Fernandez said they find FLI’s request to be reasonable, since they also need to protect their proposal.

The confidentiality agreement covers all negotiations that will be made until the unsolicited proposal is approved for publication for bidding.

Fernandez, the chairman of the JVSC, said details of the agreement will be divulged to the public once it is approved for publication, which is also the time when FLI will pay the City P300 million in surety bond.

“During the negotiations, everything will have to remain confidential, including the terms and conditions of the agreement, the design and cost of their project, the share of the City in the joint venture, and their market. That’s what the confidentiality agreement covers. If we reject their offer, the details remain confidential,” Fernandez told Sun. Star Cebu.

If there are no challengers to the FLI proposal, the JVSC expects to award the contract to FLI by Dec. 15, 2008.

FLI and Mayor-on-leave Tomas Osmeña already divulged some general information on their plans during the ceremonial turnover of the executive summary of the firm’s
unsolicited proposal during a press conference at the Casino Español de Cebu last month.

But in the meeting and negotiations with the JVSC, FLI will be submitting documents containing the details and specifications of their project, which they intend to keep confidential.

Open

“But once it is published, I assure you that everything will be open to the public. I think their request is reasonable because their only concern is that if this is divulged while the negotiations are ongoing, other challengers might copy their proposal and designs, and it’s very bad business ethics if we reveal it,” Fernandez explained.

Earlier, FLI announced that their unsolicited proposal includes an outright purchase of a 10-hectare lot amounting to P2 billion and the development of 40 hectares under a JV agreement with the City.

Some P80 billion will be invested by FLI to put up several high-rise and medium-rise condominiums, a commercial center, a medical and retirement facility and office buildings in the SRP.

From the JVSC, the unsolicited proposal will be presented to the mayor for preliminary acceptance or rejection.

Documents

If the proposal is accepted in principle, formal negotiations between the JVSC and FLI will start once the latter submits all the documents, including their engineering designs.

“After Saturday, we can already make a recommendation to the mayor to accept the proposal in principle or to reject it. If he accepts, we are given 10 days to finish the negotiations and after that, we go back to him to present our agreement. If he finds it acceptable, then we will publish it for the Swiss challenge,” Fernandez said.

The proposal will be published twice. After the second publication, challengers will be given 30 days to submit their proposals.

Fernandez said that if there are no challengers in the bidding, a contract with FLI will be submitted to the City Council for approval and if approved, the mayor will sign the contract with FLI.

Other voting members of the JVSC are the city attorney, former city administrator Juan Saul Montecillo and the city treasurer.

A representative of the Commission on Audit, the Department of Interior and Local Government, the Philippine Institute of Certified Public Accountants and the Chamber of Real Estate and Builders Associations Inc. also sit in the committee as non-voting members and observers.

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