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.