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)