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.